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Retail Versus Institutional Investment Marketing

Excess Returns

Monthly insights for investment marketing and sales professionals

August 2013

Effective marketing strategies used in targeting retail investors often are dismissed by institutional marketers as being too obvious or unsophisticated. This issue of Excess Returns considers how institutional marketers would do well to emulate certain retail marketing best practices.

With best wishes,

Liz Hecht
Founder, Principal and Director of Research

Print a PDF of this newsletter

Volume 3 | Number 6

In This Issue

Oh, That Is So … Retail!

No More Dumbing Down

A Simple Comparison

Alpha Partners is an investment marketing firm specializing in research and presentation strategy. Our goal is to create alpha (excess returns) by helping investment firms win, keep and diversify assets under management.

Alpha Partners LLC
435.615.6862

www.alphainvestmentmarketing.com

Oh, That Is So … Retail!

This often happens when I am working with an institutional marketing team. I suggest adding more visual information. I suggest that institutional marketing can capture audience interest in the same way that a great magazine article sparks the imagination. I suggest that whatever marketing initiative we are working on needs less data and more stories, less uniform predictability and more differentiating substance. I get excited about the possibilities. Then I hear the pause … It’s a long pause fraught with disapproval. Finally, someone says, “But that’s so retail.” Or, “We can’t do that. It’s too retail.”

This mindset is virtually ubiquitous. The reality is, most institutional marketing, almost by definition, is boring — all philosophy-process-people-performance with no stories to make the investments come alive. By contrast, retail marketing has become more and more interesting — something to emulate, not something to avoid.

Here are a few suggestions regarding how institutional marketers can capture some of the excitement created by the best retail marketing initiatives:

Best Practices in Retail Investment Marketing

Use relevant visual content. And no, I’m not thinking about photos of elderly people enjoying retirement. I am thinking of maps, illustrations, photos and videos — any visual information that brings to life what your firm is investing in and why. Visual content relevant to the investments is rare in institutional investment marketing. For those who have the imagination and are willing to do the work, therein lies the opportunity.

Educate. This does not mean yet another white paper entitled “The Case for XYZ Asset Class.” Institutional investors want and need more information about how asset managers view the world of investment possibilities and how they hunt for the best investments. A story about information that your investment team recently uncovered during a research trip. Or a story about the transformation of an old industry or the birth of a new one. (Often when I suggest adding such information to institutional investment marketing, people will say, “You mean more anecdotes.” But I mean something far more robust than anecdotes; I am talking about information that opens whole new worlds, the kind of information that got people excited about being investors in the first place and that ignites interest in your firm’s strategy.)

Eliminate jargon and acronyms. Even the most sophisticated institutional investor may have decision-makers who are laypeople with little investment knowledge. It doesn’t take a lot of extra ink or breath to spell out or say “leveraged buyout” instead of “LBO” and no one will feel that you are condescending to them if you do so.

It cuts both ways. Retail marketers also would do well to emulate institutional marketing best practices. The four-P formula (philosophy-process-people-performance) is required by consultants and (when not presented with the predictability of a death march) adds intellectual substance to retail marketing programs. Similarly, retail marketing would benefit from more proof in the form of performance attribution and research validating the investment approach.

Over a decade ago, during an interview about Alpha Partners, someone asked me, “What is the biggest trend that will reshape the way investments are sold?” I said “Retail investors are becoming more institutional.” What this response did not encompass is the fact that institutional investors are at heart retail investors with a bigger, more complex job. But that doesn’t mean they’re not human beings and human beings, the last time I checked, gravitate toward visual information, well-told stories and the excitement of learning something new.

No More Dumbing Down

In the early 1990s, I mainly worked on retail campaigns for mutual fund companies. Way back then it was virtually impossible to work on a retail marketing campaign without someone saying, at some point, “We need to dumb this down.” The suggestion always made me deeply uncomfortable because it is condescending toward the audience and also because the dumbing down process invariably weakened the end product. Investors across markets want to learn and understand; they don’t want pablum and, even if they’re relatively unsophisticated, they know pablum when they see it.

At that time, alternative investment funds for the retail market were just a gleam in someone’s eye, if that. Now, one of the biggest ways that retail investors will continue to become more institutional is via increased use of alternative investments (variously defined depending on the source but typically including hedge funds, private equity, real estate, infrastructure and commodities). The Mainstreaming of Alternative Investments, a 2012 McKinsey & Company study, documents the huge potential of the retail alternatives market and a 2013 SEI research paper, The Retail Alternatives Phenomenon, reports that firms such as Morgan Stanley’s Alternative Investment Partners, Blackstone Group and Carlyle Group, among others, have already launched or filed for retail alternative products.


According to research by McKinsey & Company, in 2015 retail alternatives
will likely account for 13% of US retail fund assets and 24% of revenues.

How will the spread of retail alternatives affect investment marketing? Retail alternatives will mean expanded and improved investor education, which in turn will mean smarter, more sophisticated investors. This is another giant step in a decades-long process of blurring the lines between retail and institutional.

A Simple Comparison

To witness firsthand the current difference between retail and institutional marketing, here’s an online research initiative you can pursue right now. Go to the websites for several large, well-regarded, global asset managers. Most have different sites for retail investors, financial advisors and institutional investors. Visit the retail investor site and take a tour. Then visit the institutional investor site and compare what you find there. Consider how your own company’s institutional site could be improved by adding some of the same elements you found to be effective on the retail sites and vice versa. Ten years ago, the retail site would have been all photos of happy retired people and the institutional site would have been all white papers, and this dichotomy still exists to some extent today. But increasingly you will find great ideas for strengthening intellectual content on the retail site and for adding greater human interest to the institutional site.

Questions? Comments? Dissent? Click here.

Click here for other issues of Excess Returns.

© 2013 Alpha Partners LLC Alpha Partners LLC
Marketing for Excess Returns®
1062 Oakridge Road South | Park City, UT | 84098

You are receiving this newsletter as a member of the investment community. If you no longer wish to receive it, please respond to this email with “No More Penguins” in the subject line. To subscribe to this newsletter, send an email with your request to info@alphainvestmentmarketing.com. Your privacy is important to us. We will never rent, sell or share any information that you provide.

The Greater Whole

Excess Returns

Monthly insights for investment marketing and sales professionals

June-July 2013

Most investment managers either fail even to mention the larger capabilities of their organization — or cover their organization in so much detail that they lose focus on the strategy slated for discussion. This issue of Excess Returns considers how to strike the right balance.

With best wishes,

Liz Hecht
Founder, Principal and Director of Research

Print a PDF of this newsletter

Volume 3 | Number 5

In This Issue

The Greater Whole

Lessons from TED

Communicating About Culture

Alpha Partners is an investment marketing firm specializing in research and presentation strategy. Our goal is to create alpha (excess returns) by helping investment firms win, keep and diversify assets under management.

Alpha Partners LLC
435.615.6862

www.alphainvestmentmarketing.com/

The Greater Whole

This spring I broke my hand in a freak accident. When the cast was removed, I asked about physical therapy, which is one of the many services offered by the hospital where my doctor practices. “You can go to therapy, if you would like,” he said. “But it’s not required. Go a couple of times and see how you feel about it.”

Given this less-than-emphatic recommendation, I considered not going. But I am a diligent soul, so I went regularly. The therapy — massage, advice on pain management and exercises designed to improve flexibility — helped immensely. The entire experience shed light on an investment marketing problem that Alpha Partners has grappled with for many years. To what extent should the hand doctor (portfolio manager or product specialist) sell patients on the larger capabilities of the hospital (the services and skills of the investment organization)? How much airtime does the firm merit in a presentation focused on a single product?

All or Nothing? Getting It Right

Communication about the firm, in my experience, is doomed to failure through one excess or another: there is none or there is far too much. A team from a large, global, multi-product organization presents as if it were a single-product firm managed by five professionals out of one office, with no mention of organizational strengths. Or a team from a large, global investment company spends so much time telling the firm story that one leaves the presentation no closer to understanding the putative focus of the meeting: a single investment strategy. The watch, in other words, is barely covered because so much time is spent on the history and strengths of the watchmaker.

This all-or-nothing approach is prevalent in new business presentations as well as client meetings. How can investment firms get it right? Here are a few suggestions:

Be brief. Cover the firm in one or two pages with just a few key topic points. Every effective meeting has a specific purpose — e.g., ensuring that the audience understands the investment strategy you are trying to sell. And yet I often see situations where presenters never get a chance to present the product, so overloaded is their story with information about the firm (so many org charts, so little time). When time is up, they are still on the map showing all their offices and the size of their team. Or they might still be presenting the page defining their competitive advantages … you know, the one with eight bullets and eighteen sub-bullets.

Focus first on what matters most. Many traditional presentations fail not only because of excessive information about the firm but also because such information is front-end loaded. When I try to change this, I’m often told that it has to be this way because the salesperson or client relationship manager typically opens with information about the firm. This defies logic. The audience most wants to hear about the product from an experienced investment professional and the opening is critical; the opening is when you capture audience attention or lose them altogether. Why make your audience wait for the information of greatest interest? There are many ways that a salesperson can still play a meaningful role in the meeting without following this predictable, self-referential approach.

Connect the dots. Give brief examples describing how a single strategy benefits from organizational strengths. Perhaps the firm’s quantitative team adds rigor to an investment process that is primarily qualitative. Or maybe currency team insights assist in the execution of international equity and fixed income strategies. In covering information about the firm, such examples are rare and precious. Few investment companies take the time to develop, refresh and share examples of how the firm’s resources strengthen specific products.

Create a presentation focused on the firm for situations when its use is appropriate. Everything has its place and more than one or two pages on the firm’s history, culture and people have no place in a product presentation. Create a separate book and use these pages only in relevant situations — consultant meetings, for example, explicitly focused on education about the firm. If the firm book exists separately, its pages are less likely to creep into meetings where they don’t belong.

Teach investment company professionals how to communicate consistently and enthusiastically about the firm as a whole. As investment companies grow, more professionals seem to know less about the organization as a whole. The bigger the company, it seems, the narrower the focus of its salespeople and product specialists. While it makes no sense for these professionals to become experts in dozens of products, they still should be able to tell one consistent, powerful story about the firm. Perceiving the strengths of the organization might just help your team make the sale and expand cross-sell opportunities.

So what should my doctor have said when I asked about hand therapy? Maybe something like this: “We have an excellent physical therapy department in this hospital. The therapists do a great job and they can help you with the overall healing process. I recommend that you make an appointment with one of our therapists and go as often as you can until your hand feels better.” No org charts, no pages dense with bullets and sub-bullets and no over- or under-selling. Just a simple, heartfelt, knowledgeable suggestion that I consider another service within the larger organization.

Lessons from TED

“Speak at great length about the history of your organization and its achievements.”

— From “10 Ways to Ruin a Presentation” by Chris Anderson, the curator of TED*

Consultants often require it. Most investment professionals lead new business and client meetings with it. Too many presentations die a premature death because of it. I am describing the part about the firm in the typical investment company presentation: the number of employees and all the global offices and how everyone is organized. Of course this is important. Why then is it always so boring? Part of the answer can be found in a June 2013 Harvard Business Review article by Chris Anderson of TED: “As a general rule, people are not very interested in talks about organizations or institutions (unless they are members of them). Ideas and stories fascinate us; organizations bore us …”


Looking for guidance in developing a presentation or speech? In How to Deliver a TED Talk, Jeremey Donovan provides a concise, inspired framework for success based on TED presentations that you can view online.

* “10 Ways to Ruin a Presentation” appears as part of the article by Mr. Anderson noted above.

Communicating About Culture

Starting early in 2000, I can recall investment firms talking about the concept of culture for the first time — in other words, providing answers to the following questions: What is it like to work at this company? Why might you recommend this organization to others? How do clients experience a relationship with this firm and how is the firm organized to perpetuate positive attributes?

Answering such questions succinctly and well goes a lot farther than a discussion of your firm’s recently expanded “global footprint.” In a 2013 research paper, for example, Focus Consulting Group concluded that, “in the increasingly competitive landscape of active investing, strong culture is a legitimate way for firms to differentiate themselves.”

Emphasis on culture as a marketing strategy, however, may fall flat unless certain important criteria are met: brevity, relevance to the audience and current research to support claims of superiority (e.g., a study of how clients and employees view the firm). A strong firm culture is a powerful yet subtle attribute that should be less talked about than directly experienced and, ideally, explicitly validated through research.

Questions? Comments? Dissent? Click here.

Click here for other issues of Excess Returns.

© 2013 Alpha Partners LLC Alpha Partners LLC
Marketing for Excess Returns®
1062 Oakridge Road South | Park City, UT | 84098

You are receiving this newsletter as a member of the investment community. If you no longer wish to receive it, please respond to this email with “No More Penguins” in the subject line. To subscribe to this newsletter, send an email with your request to info@alphainvestmentmarketing.com. Your privacy is important to us. We will never rent, sell or share any information that you provide.

The Perfect Score

Excess Returns

Monthly insights for investment marketing and sales professionals

April-May 2013

Practice makes perfect. And even if you don’t believe in perfection (sadly, some people don’t), practice can mean the difference between new business won or lost, between kudos or public embarrassment. Yet some investment management professionals spend more time practicing their tennis swing than their new business presentations. This issue of Excess Returns investigates why some people avoid practice while others excel at it.

With best wishes,

Liz Hecht
Founder, Principal and Director of Research

Print a PDF of this newsletter

Volume 3 | Number 4

In This Issue

The Perfect Score

Practice Perfect

Grit

Alpha Partners is an investment marketing firm specializing in research and presentation strategy. Our goal is to create alpha (excess returns) by helping investment firms win, keep and diversify assets under management.

Alpha Partners LLC
435.615.6862

www.alphainvestmentmarketing.com

The Perfect Score

“Winners are simply willing to do what losers won’t”

— Sign on the wall of the Hit Pit Gym in Million Dollar Baby

I frequently attend client conferences either because I helped coach the presenters or as part of a research initiative. A few years ago, I had the good fortune to watch one of my clients give what was, in effect, her state of the investment markets presentation to approximately 100 institutional clients. Her half-hour presentation was superb. Her spoken comments were concise and on point; her content linked to the slides without repeating them. She clearly had rehearsed, but her delivery did not seem at all scripted. She was relaxed and used humor in an appropriate way that suited her personality. All I could think was, “Wow!”

Later that day, I ran into her during a coffee break. “Oh, hi Liz,” she said. “I am so glad you are here. What did you think of my presentation? Any suggestions?” I was astonished that she asked this question. Didn’t she know that she had killed it?

More recently, when I completed an interview with a former professional athlete and star fund manager, he asked, “How did I do? Is there anything I could have done to make this interview more useful for you?” I was pleasantly surprised by his question (after all, I was working for him), particularly as his interview had been thoughtful and focused and, best of all, I learned something new.

Strategies Practiced by Winning Professionals

There’s a pattern here. These people got to the top of their profession for many reasons, not the least of which is that they are constantly seeking to improve.

During my career, I have worked with some of the best investment firms in the world — not only “best” in terms of investment performance but also in all aspects of their business. What makes these firms stand out is their ability to compete effectively. In other words, they know what is required to win and they are willing to act accordingly. I have learned a few things from these companies about the art of successful practice:

Seek expert outside perspective. Working with an outside firm can help everyone establish a framework for successful practice. Even more important, outside experts are likely to be more demanding than insiders simply because they have a better sense of competitive reality. (I am not, for example, going to allow someone to get away with describing a “long-term, research-driven perspective” as a competitive advantage.) An Alpha Partners client who started working with us in 2004 recently told me that I had given him a “template for success,” and of course nothing could have made me happier. But outside perspective, no matter how helpful as a starter or a refresher, does not take the place of internal practice.

Practice on your own. The firms who work with Alpha Partners regularly see our involvement as one part of a much bigger process. They find efficient ways to practice alone. They also practice as a team, conducting at the very least two dry runs before every major presentation. They learn the art of giving and getting feedback effectively. (An important way to improve performance, according to the book Practice Perfect, is to improve feedback.)

Establish context. Our clients often ask me, “How would you rate us on a scale of 1 to 10?” And, in a competitive world, this certainly is a reasonable question. But what is more important are the components of the score. If you score a 7, for example, for your new business presentation (good but not great), what matters is what you are doing right to get the 7 and what is missing that would get you to a 10. Yes, a 10, the perfect score. Because, to believe in practice, some part of you also needs to believe in the possibility of a perfect score, of doing something so well that it can’t be done better.

Believe in perfection. While writing this article I participated in a dressage clinic riding my horse, Vintage Trial (Vinnie), with the Olympic trainer Eric Smiley. Mr. Smiley told me why our preliminary work was a 6 or a 7 and explained what we needed to do to improve. As we kept working, Vinnie and I got better as a team. Mr. Smiley kept pushing us: “All right, so now that’s an 8. What are you going to do differently to show me a 9?” “More impulsion?” I ventured. “Yes, that’s right, more impulsion. The trot needs a bit more swing.” I asked, Vinnie gave and Mr. Smiley said, “That’s right. That’s lovely!” On that happy note, I thought we would end the session, but the next thing he said was, “Now what are you going to do to score a 10?”

I honestly didn’t know; I was riding as well as I’ve ever ridden and Vinnie, who can be a cantankerous little fellow, seemed to agree. I do know this, though: I am likely to perform far better from here forward based on (1) my belief that a 10 is possible and (2) a much better understanding of the elements that define a 7 versus a 9 or even a 10.

The enemies of practice are pride, fear and self-satisfaction — and perhaps another, larger enemy: the belief that a perfect score is impossible. I have found over the years that the investment professionals who are most resistant to improvement are people who tend to be a bit cynical, people who are unlikely to give, and therefore unlikely to get, a perfect 10.

My clients who wanted to know how they could improve both scored perfect 10s. Not because they have worked with my firm effectively and not because they practice in a thoughtful way, but because they are engaged in a constant pattern of improvement. Investment management professionals today operate in an environment where face time with clients and consultants is harder to come by and where standing out from a crowd of competitors is increasingly difficult, especially for firms selling traditional investment strategies. To compete effectively in this world, you need to believe in, and strive for, a perfect score.

Practice Perfect


Giving and getting feedback is key to effective practice. This book provides invaluable advice on the art of successful feedback.

If you’ve spent time in a gym watching people work out incorrectly, you already understand the need for this book. Time spent on practice is not time well spent unless it’s high-quality practice. Practice Perfect: 42 Rules for Getting Better at Getting Better provides invaluable advice on how to practice well, whether you want to improve your presentation skills, your sport or your interactions with employees. I found the chapters on how to give and get feedback more effectively (Rules 23-30) to be particularly helpful. The authors, for instance, consider “the use of reflection and earnest conversation as a way to avoid practice.” As in, “don’t sit around talking about the advice I gave you … just try it!” The authors also spend quality time on something we have long focused on at Alpha Partners (Rule 26: Use the Power of Positive): building on performance strengths in addition to addressing weaknesses.

Grit

“The only thing that I see that is distinctly different about me is I’m not afraid to die on a treadmill. I will not be outworked, period. You might have more talent than me, you might be smarter than me, you might be sexier than me, you might be all of those things — you got it on me in nine categories. But if we get on the treadmill together, there’s two things: You’re getting off first, or I’m going to die. It’s really that simple…”

— Oscar-nominated actor and Grammy award-winning musician Will Smith

Grit, according to Angela Lee Duckworth, PhD, is the best predictor of success in a person’s life. Salespeople with grit, she explains in a 2013 TED talk, are likely to keep their jobs and earn more money. Duckworth describes grit as “passion and perseverance for very long-term goals. Grit is having stamina. Grit is sticking with your future, day in, day out, not just for the week, not just for the month, but for years, and working really hard to make that future a reality. Grit is living life like it’s a marathon, not a sprint.”

Duckworth’s research shows that grit, more than any other factor — innate talent or intelligence, for example — determines how successful you will be. A key ingredient of grit, Duckworth found, was the drive to improve.

Questions? Comments? Dissent? Click here.

Click here for other issues of Excess Returns.

© 2013 Alpha Partners LLC Alpha Partners LLC
Marketing for Excess Returns®
1062 Oakridge Road South | Park City, UT | 84098

You are receiving this newsletter as a member of the investment community. If you no longer wish to receive it, please respond to this email with “No More Penguins” in the subject line. To subscribe to this newsletter, send an email with your request to info@alphainvestmentmarketing.com. Your privacy is important to us. We will never rent, sell or share any information that you provide.

Brother, Can You Spare Some Time?

Excess Returns

Monthly insights for investment marketing and sales professionals

March 2013

Time is money. Time also provides peace of mind, room for inspiration and the ability to be proactive rather than reactive. So how do investment company professionals get more of it? This issue of Excess Returns seeks to answer that question.

With best wishes,

Liz Hecht
Founder, Principal and Director of Research

Print a PDF of this newsletter

Volume 3 | Number 3

In This Issue

Brother, Can You Spare Some Time?

Being on Time

The Pomodoro Technique

Alpha Partners is an investment marketing firm specializing in research and presentation strategy. Our goal is to create alpha (excess returns) by helping investment firms win, keep and diversify assets under management.

Alpha Partners LLC
435.615.6862

www.alphainvestmentmarketing.com

Brother, Can You Spare Some Time?

“I’m too busy to hold grudges.”

— Cary Agos in The Good Wife

I am a time management fanatic. I worry about being late and if I am late I suffer personal torment. I want my tombstone to read, “She was on time.” I have read virtually every popular time management book ever written and continue to look for new ones. My husband has observed that if I spent less time reading time management books I might have more time (he is such a wit).

Through reading these books and through years of personal experience, I have sought and am still seeking to ingrain in my daily life certain practices for being more productive. These include being concise and judicious in responding to email, never picking up the phone unless I know who is calling, relentless prioritization, working with a timer (inspired by Francesco Cirillo’s Pomodoro Technique), breaking a project into its component parts before getting started and using a one-page checklist. (It has to be one page. For more on the joys of checklists, see the February 2013 issue of Excess Returns.)

How to Avoid Time Thieves

But all the time management wisdom in the world could not have protected Alpha Partners from the fix we found ourselves in during late 2001. We were kidnapped and held hostage by three clients that can only be described as time thieves. These companies could not make a decision, it seemed, about anything at all. (And we are not talking big strategic decisions here, but decisions such as what color their company logo should be.) All three projects started before the tech bubble burst in March of 2000 and were still lumbering on in late 2001. Time that we could have spent doing real work or developing new business was spent instead endlessly revising schedules, participating in project update calls and writing memos summarizing the latest list of next steps — memos that, we sadly learned, these clients would almost certainly ignore.

Working with these three clients very nearly killed Alpha Partners. But we survived and, thanks to heightened radar alerting me to time thieves, we have mainly avoided similar experiences. The clients we have now make decisions and get things done. There may be delays for various good reasons, but never does a project suffer death by procrastination.

What does our experience teach investment company professionals about how to avoid time thieves? Whether you are a sales professional with a grueling travel schedule, a marketer with a daunting list of responsibilities, or a portfolio manager who wants to stay focused on investing, you may find the following advice to be helpful:

Be selective. You know the famous 80/20 rule. There are clients who provide 20% of your revenues and take up 80% of your time. With some experience, you can spot these early in the search process. They don’t respect your time. They are late for meetings and not well prepared. Their attitude is all take with no give. By contrast, some of the most successful people, I have noticed, treat others with immense respect, in particular by respecting their time. These are the people you want to do business with. Particularly when you are managing an investment strategy with limited capacity, learn to stay away from clients on the wrong side of the 80/20 rule. Your firm’s success, maybe even your survival, depends on getting and keeping not just any clients but the right clients.

Keep educating your clients. No investment manager wants to be overwhelmed with client inquiries when the markets appear near a bottom or a top. By sedulously educating your clients in good times and bad, you will create space for your investment team to manage their portfolios in peace, focusing without interruption on new ideas when the market is rich with opportunities. High-caliber written communications can make all the difference between clients who constantly call and fret and clients who give your investment professionals the mental capacity they need to do their jobs.

Remain free of emotion. If you become angry — or, worse, allow your ego to rear its ugly, pointless head — you will waste precious time. The more effectively you manage your time, the more likely you are to be effective in managing money and educating clients, all of which translates into being too blissfully busy to indulge in anger or ego.

Epilogue: One of the companies that almost killed Alpha Partners in 2000-2001 is now out of business, one lost its star investment team when the team left to join another company and one still exists but with new ownership and new management. A few years ago, the latter contacted our firm with a request for a proposal. I considered declining based on our past negative experience. But there were new people at the helm and it was a large, complex, interesting project. So we went ahead and took a chance. The proposal took a lot of our time, but we got it done and sent it in, feeling excited and hopeful. And then … nothing. No one ever got back to us and our references have told me that no one ever contacted them. Maybe this company still could not make a decision. But do I hold a grudge against this firm? Nope, I most certainly do not. I’m too busy to hold grudges.

Being on Time

“If you’re early, you’re on time. If you’re on time, you’re late and if you’re late, you’re fired.”

— My husband’s first boss

There are two messages you send when you are late to a meeting with a prospective client: (1) my time is more important than yours and (2) I am too disorganized to show up when expected. Do potential clients take this into consideration in their hiring decisions? You bet they do. During research interviews, investors sometimes tell Alpha Partners that they decided not to work with an investment company because the firm’s representatives were late for an important meeting or because they did not adhere to the allotted time. Here are several strategies, psychological and practical, for being on time:

Build in fat. Always allow for extra time between meetings. It is your job to run the meeting on time, but if a client during meeting #1 wants to spend a bit more time than originally allocated, you obviously don’t want to curtail a productive dialogue. If you have the right amount of fat, you can spend more time during meeting #1 and still be on time for meeting #2.

Run reconnaissance. Whenever possible, check out the location prior to the meeting. Sometimes in big cities the physical location or entryway is not intuitive based on the address provided. You also may need to allocate extra time to clear security. It is important that small details such as these do not derail the outcome of an important meeting or presentation.

Be wary of people who are casual about time. I have attended meetings in the past with colleagues who had, shall we say, a more devil-may-care attitude toward time than I do. “Oh, don’t worry,” they would say, “I know how to get there.” Or, “We don’t need to leave an hour early. A half hour is plenty.” If you want to be on time consistently, do not let yourself be derailed by such people.

Get there early. Being early means you will be on time; it also will give you an opportunity to collect your thoughts, catch your breath and generally be ready to run a tight meeting sharply focused on the client.

The Pomodoro Technique

The Pomodoro Technique® is by far the most effective time management technique I have ever found. I have been using it since 2007. Here is how it works: Use a kitchen timer to work in uninterrupted intervals of 25 minutes each with a 5-minute break. Each such 30-minute interval is called a “pomodoro,” which means tomato in Italian and reflects the tomato-shaped kitchen timer that Francesco Cirillo started using when he created the technique. (You can experiment with longer intervals, but practitioners, myself included, have found that 30 minutes is best. Less than 30 minutes defeats the purpose, which is focused, uninterrupted work.)

If a distracting thought occurs during a pomodoro, you briefly note this on a tracking sheet for completion later (e.g., “schedule meeting with Greg to discuss new website”). After four pomodoros (two hours), take a 15- to 30-minute break. Each time segment is indivisible; there are no half or quarter pomodoros. If you start a pomodoro, you have to finish it when the timer rings. If a scheduled activity (e.g., “write Marketing Strategy Report”) takes more than seven pomodoros (three-and-a-half hours), break it down into different components for completion by stages (e.g., “finalize competitive analysis” and “write executive summary”). If a task takes less than one pomodoro, combine tasks and keep working until the timer rings, signaling the end of one complete pomodoro.

In this way, you divide your time into manageable increments. Endless stretches of time are categorized and defined, minimizing the procrastination that comes with feeling overwhelmed. The 5-minute breaks are critical to maintaining a healthy metabolism, giving you a chance to move around and mitigating fatigue throughout the day. When used systematically over time, the Pomodoro Technique also makes it easier to estimate how long certain tasks will take.


The Pomodoro Technique divides your time into discrete intervals, facilitating focused work without distractions.

Use of the Pomodoro Technique logo and trademark has been authorized by FC Garage by Francesco Cirillo.

For more on how time management affects the growth of your company’s business, see The Soul of Wit Revisited.

Questions? Comments? Dissent? Click here.

Click here for other issues of Excess Returns.

© 2013 Alpha Partners LLC Alpha Partners LLC
Marketing for Excess Returns®
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