Compass Technologies

Steve Jobs

2011-10-07T22:40:00.008-04:00

It's been a long time since someone I was close to passed away. I would not have thought that the passing of Steve Jobs would have impacted me. I didn't know him personally but somehow I feel like we were close. There are a lot of people who talk about what they stand for or what they are going to do. Steve just did it.

One of may favorite quotes was from Larry Ellison (CEO of Oracle) who was a close friend and neighbor of Steve. He said that Steve did not care about the money. He just wanted to change the world.

I have watched over the past few days as competitors have spoke in admiration of him and his accomplishments. Samsung postponed the release of a new phone next week in deference to his death.

He may be the most influential person in the world in the last 100 years. He has single-handedly changed how we live and interact with each other.

I think there are three things that stand out about Steve: Passion, Creativity and Tenacity. He came from humble beginnings (adopted, college dropout, drug user). He was blessed with a set of gifts and he utilized them to their fullest.

He made some mistakes along the way. But he was persistent in fighting back. He denied the paternity of his daughter but rectified that later. He got kicked out of the company he created, failed at his next venture but went on to create the greatest technology company and the most profitable movie studio (Pixar).

I didn't know Steve but I miss him. We need more people like him. We need it in our businesses, our home and in our spiritual endeavors.

We miss you Steve. Rest in peace.

States raise limits on creditors as debtors squirm

2009-10-15T17:52:00.002-04:00

States raise limits on creditors as debtors squirm

Strategy Meeting

2009-09-29T09:34:00.001-04:00

Consumer Financial Protection Agency

2009-09-22T12:04:00.002-04:00

Entrepreneurship

2009-03-06T06:15:00.000-05:00

What can we do to get out of this economic crisis? In a recent Business Week article, the author argues that now is the time to look for opportunities. Perhaps it's a new market, a new product or reinventing the way you do business.

Whatever it is, hunkering down and waiting it out doesn't seem to be the best strategy. We all have a choice: Be ruled by our circumstances or use the circumstances to our advantage.

What do you think?

McKaylee is Patient of the Month

2009-03-04T06:15:00.003-05:00

I wanted to let you know that my granddaughter (McKaylee Borklund) is patient of the month at St. Jude for March, 2009. She is 20 months old and has an inoperable brain tumor.

You can find out more information about her at these sites:

St. Jude

Miracle for McKaylee

Caring Bridge

Federal Usury Cap

2009-03-02T06:54:00.004-05:00

Last week, U.S. Senator Dick Durbin introduced S.500 to the Senate. This bill would place a 36% A.P.R. cap on consumer loans.

This could dramatically affect consumer lending in this country as many deferred presentment, title and consumer finance lenders offer loan products that exceed this cap.

Stay tuned for more information on this legislation.

What is Twitter

2009-02-27T06:15:00.001-05:00

Why You Can't Get a Loan

2009-02-25T06:15:00.000-05:00

Banks say they are lending. But many consumers and small business owners disagree. So where's the disconnect?

See this article on why....

Credit Crisis Explained

2009-02-23T06:15:00.001-05:00

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Dave McCoy

2009-02-20T06:15:00.000-05:00

Check out this article by Dave McCoy entitled: "How I Did it"

A couple of things I noticed:

1. I did it because it was fun.

2. There is no way to understand my life unless you see where I've spent it.

The Stimulus

2009-02-18T06:15:00.000-05:00

Thought you would be interested in where your money is being spent in the new stimulus bill.

Entrepreneur Quotes

2009-02-16T06:15:00.000-05:00

“Some of the ways I’ve learned to estimate whether a team will be successful is how high-impact their project is, but also 1) how quickly they can iterate and 2) how they react to feedback.” – Matt Cutts, Google

“Firms should not pay high executive salaries merely to find leaders who can copy what others are doing.” – Jeffrey Pfeffer, Stanford Graduate School of Business

“Lean startups are built from the ground up for learning about customers.” – Eric Ries, Kleiner Perkins

“Consider spending less time talking, and more time prototyping, especially if you’re not very good at talking.” – Paul Buchheit, FriendFeed

[Could you build a portfolio of consistently successful startups? Allen C. Ward could just as well be talking about startups and their investors in this quote.] “Toyota and its suppliers have consistently successful projects. They analyze the few defective projects to improve the system. Morale is high and chaos low because projects consistently go right. In contrast, most conventional projects have serious problems and an occasional home run keeps the company afloat. Fire fighting is standard. It is hard to tell who is doing a good job and hard even to tell what the causes of the problems are. Waves of disruption run through the company, as projects are canceled, run over budget or schedule, or must be expedited to make up for failures elsewhere. Everyone is worried all the time.” – Allen C. Ward

“Contentment is wanting what you have. Ambition is wanting what another has. Progress comes from wanting what nobody has.” – Bob Lewis

“That’s another flaw with performance-based rewards: They are easy for one of your competitors to top.” – Joel Spolsky

“The idea of a company that’s earning money, not losing money, that’s not, let’s say ‘industrially endangered,’ to have just cutbacks so they can earn another $12 million or $20 million or $40 million in a year where no one’s counting is really a horrible act when you think about it on every level. First of all, it’s certainly not necessary. It’s doing it at the worst time. It’s throwing people out to a larger, what is inevitably a larger unemployment heap for frankly no good reason.” – Barry Diller, IAC [See these creative ways to avoid layoffs.]

“Forget about shortcuts. Run a business as if it’s forever.” – Norm Brodsky

“A business plan that doesn’t require a wonderful economic environment in order to succeed… is a good idea all the time.” – Marc Andreessen

“Entrepreneurs get blinded by firm reputations… they don’t do their due diligence on partners.” – via Jeff Bussgang, Flybridge Capital Partners

“Asking customers to adopt new priorities… is an uphill death march through knee-deep mud.” – Clayton Christensen, Harvard Business School

“I’ve learned… that there is a lot more hidden talent and potential in your employees than you think.” – Tony Hsieh, Zappos

“Most business practices repress our natural tendency to have fun and socialize.” – George Zimmer, Men’s Wearhouse

Buzz

2009-02-11T18:59:00.001-05:00

See this post on The Art of Generating Buzz

It's all about the Story

2009-02-09T09:08:00.002-05:00

See this latest blog entry from Jon Dale about "The Story"

Good Old Days

2009-02-06T06:36:00.001-05:00

Heard this phrase before? When I was first exposed to computers, things were much different. There was no internet, no CD's or even floppy disks. You loaded information into a computer on a punch card and you saved it on a tape. Programmers were mostly men with glasses and pocket protectors. Computers were large machines stored in huge air-conditioned rooms with raised floors.

I'm guessing that my iPhone has more computing power than those early machines. We live in amazing times. I imagine the world has changed more in the last 50 years than it did in the 100 years or so prior.
I love the change but I miss the good old days. There was a magic back then that somehow I've lost.

If you want a glimpse, check this out.

Crisis

2009-02-04T06:12:00.000-05:00

One of my favorite authors and most likely one of the most astute men of our time is Jim Collins. He was recently interviewed in Fortune magazine about the current economic crisis and what great companies do to endure these times. Jim has spent years analyzing what makes companies great and made several observations:

1. The time period from 1952-2000 is an aberration against the backdrop of thousands of years of human history. What we are experiencing now is "normal".

2. Companies that thrive during these times have core values that they stick to when challenged.

3. People with great talent do not have to be managed.

4. You have to believe that you will prevail.

There are always challenges in life. Those who persevere and view these as opportunities have the greatest chance of thriving during these trying times.

Airport Security

2009-02-02T06:29:00.000-05:00

If you get bored and need something to do, here's a fun online game: Airport Security.

MicroFinance or Subprime?

2009-01-30T06:23:00.000-05:00

A recent phenomenon in our world is the rise of microfinance. It's built around an idea that small entrepreneurs can affect the economy in 3rd world countries with small loans. This has been effective in most cases and the repayment rate is very high compared to similar loans in the U.S. What is not discussed very often is the relationship of this type of lending to what has been termed "subprime".

The rates on microfinance loans can be very high. The reason for this is simple. The cost of making a small loan is high. In order to cover the cost of the personnel, computer systems and compliance with regulations, an institution must charge a higher interest rate. It costs the same amount of money to make a $100 loan as it does a $1,000 loan.

I think the difference is in the use of funds. Microfinance is viewed as a positive force in society while subprime lending has negative connotations. Most people percieve that we're helping someone when a microfinance loan is made. But we view subprime lending differently. What we need to do is to change our tactics. If lending can be viewed as positive in nature, then whether it's prime or subprime will be irrelevant.

Blur

2009-01-28T06:12:00.001-05:00

Life moves faster and faster. I remember a song from the Eagles called "Life in the Fast Lane". It's a song about a lifestyle that is out of control. The speed and availability of technology gives us opportunities to live a life that blurs the lines between personal and professional pursuits. Blackberry, iPhone, Facebook, Twitter, etc. allows us to get information at an ever-increasing pace.

What you end up with is an integration of our business and private lives. The mobile web, home offices and social networking tools are encouraging this. Many businesses are encouraging it as well as the middle class in America is in an increasingly tougher competition for fewer jobs and opportunities.

A new book analyzes this phenomen and observes that more and more companies are actually encouraging the blurring of the lines between personal and professional. I think some of this is inevitable but it's really a management problem. Efficiency and wise use of our time is what's important. I think you simply have to learn how to use these tools to your advantage to enjoy your life and not be consumed by technology.

Are Banks making loans?

2009-01-26T06:15:00.000-05:00

If the bailout is working, why are banks not making more loans? There are a lot of opinions about why this remains a problem. A recent Business Week article argues that it's a capital problem. I wonder if it's simply that the banking system is getting mixed messages.

One the one hand, the government and Federal Reserve seem to be encouraging banks to lend money to get the economy going. But, part of the reason the economy is in such tough shape is due to bad loans. And bank regulators tend to be conservative. Most people don't realize that the regulators force banks to write off loans.

My guess is that they are scrutinizing loans more closely than ever which causes larger write-offs, creates a larger capital problem and encourages more conservative lending practices.

No one knows what the future holds but it seems like we're going to see tight credit for the forseeable future.

Org Charts

2009-01-23T06:23:00.001-05:00

Organizational charts. Do you use them? What purpose do they serve? Can you really define someone's value based on where they show up on a diagram? Or in a job description?

In my experience, two things are vital in an organization: Communication and Collaboration.

You have to communicate the goals and direction of the team. This brings clarity to your mission. If everyone knows where your going and what role they need to play, that's half the battle.

You also need teamwork. The environment must promote it and you need collaboration tools to make it work. Of course you need a good team and a vision that everyone believes in to really make it work well.

I think that org charts suck. Read this article for more reasons why....

Top 10 CEO Quotes

2009-01-21T06:15:00.000-05:00

Here's a link to Steve Tobak's top 10 CEO quotes of 2008.

A couple of my personal favorites:

“I’m going to f—ing bury that guy, I have done it before, and I will do it again. I’m going to f—ing kill Google.”
Steve Balmer (CEO of Microsoft)

“We have to build cars and trucks that people want to buy.”
Rick Wagoner (CEO of GM)

Hopefully, none of my quotes will make the news....

All Human Beings are Entrepreneurs

2009-01-19T06:23:00.003-05:00

One of my heros is Nobel Peace Prize winner Muhammed Yunus. He took a very simple idea (microfinance) and developed an entire new way of making loans. I read an interesting article recently where he makes the case that all of us are essentially entrepreneurs. I don't know how valid this is but I think we all have an opportunity to make a difference. We may not win the Noble Peace Prize but each of us has influence.

In these uncertain times all of us can effect change in our neighborhoods, companies, families, churchs and other social circles. Use your influence and make a difference. You can change the world.

A Pirate Wedding

2009-01-16T06:15:00.000-05:00

Photo and video editing at www.OneTrueMedia.com

A good friend of mine had a pirate wedding on the beach last summer. I thought this was worth posting today. Enjoy.

Credit Tales from Main Street

2009-01-14T06:15:00.000-05:00

We are hearing a lot about the economic impact on banks and large corporations but not so much about the effect on small businesses. The U.S. Chamber of Commerce has posted a few emails from small companies around the country who have been impacted by the credit crunch.

Here's a few that stand out:

"I have had my line of credit reduced to the point that I have no way of cash influx in my business."

"The lack of vehicle financing available to consumers has dramatically reduced new car sales."

"We had a very good customer in California last Christmas (5% of our total business) who had their entire bank line called on 3 days notice because the bank wanted out of all exposure to housing. "

Tips That Bring You a Beautiful Life

2009-01-11T16:50:00.001-05:00

Check out this SlideShare Presentation:

Tips That Bring You a Beautiful Life

View SlideShare presentation or Upload your own.

Self Service Kiosks

2009-01-09T06:23:00.000-05:00

ATMs, Credit Card swipe slots at Gas Stations, Self Service checkout lines in Grocery Stores, vending machines...What do they all have in common? They do not require someone to stand there and do a particular function...along with convenience. This same technology is available for a lending organization. Is this the norm for this industry? No. Why not? It is different, strange, not useful...you name the reason. Can it be done? Absolutely.

Let's think through this...

A customer comes in for a loan. Some companies give the customer an application to fill out, then they give this to your employee to turn around and put in your data base for processing. If your company goes straight for the "on-line" application your employee is gathering information and putting in your data base. Both of these functions take time to do anywhere from 10 to 20 minutes. Is that productive time? Maybe. But what if you had an alternative where that time could be spent on items that could either collect your money or lend it faster.

The answer...

An inexpensive computer and monitor, a space it to be used (you already have), and the connection (again, you all ready have) to your software (do you have software that can do this?) for the information to go and be processed. The computer can easily be set to do that one function. What if the software could take that information, process it, pull a credit bureau, score it to your specification, and approve or deny it? Then all your employee (which does this part anyway) has to do is print the papers, have them signed, and complete the transaction within your policies and procedures.

Should this be done in every situation? In my opinion, yes...at least where the customer fills out the application. For small loans, more automation. For larger loans, more interaction. With the right software, all scenarios are possible and you can be successful. This can be especially helpful if you do both small and large loans (come states have different laws for both). The small loans are more easily controlled and have a much lower cost so you maximimize your profits. The larger loans you have the interaction with your customer for your upsell opportunities. But using the above procedure, you are in a better position to spend the real time needed with the right clients. Think of it as "pre-screening".

Of course you determine the number of kiosks you have in a location and this in turn determines how much initial interaction you have with a customer. If you think larger, you place this same set up at your larger areas. If you think really large, your website has the ability to collect that application for your office at virtually no cost in staff.

What is your reason for not doing? If you can't think of one that is makes sense given the technology, cost, and need for savings, call us for help in getting started.

Be brave. Think different. Be a market leader. Use your technology to your advantage...you are already paying for it.

The cost of making a loan

2009-01-07T06:15:00.002-05:00

Do you know what it "costs" to make a loan? Are you missing the boat on a great opportunity?

Why is this important? An article I read is suggesting that the middle class needs the Payday Lending services. Is this missed opportunities for your finance company? You can only know that if you understand the cost involved to make a "quick" loan, the staff that understands the product, and the rates and fees available to you by your state regulations.

Just as banks say make their money on large commercial loans and do smaller loans to satisfy their customer base and CRA requirements, finance companies make their money on a larger average loan that a payday lender and may do smaller loans to satisfy a special segment of their community as a corporate responsibility measure.

I say that you can make a profit if those small short term loans can be made efficiently, smart, and with limited losses. Most of the articles I read on payday lending says that 80 - 90% of their business is repeat business. So if you can build a good base, they will be loyal.

Want a couple of suggestion on how to do efficiently, smart, and with little loss? 1) Consider a revolving lending program. Once set up, advances can be with little to no new paperwork. Collections fall into your current collection methods. 2) Shorten your application process for these type of loans . Remember these are very short terms and less information is needed to make. Make your paperwork on the small loans short and simple (obviously complying with your state laws). Train your personnel in how to do quickly and efficiently. Collections fall into your current collection methods.

What do you need to do to realistically consider? Know what you state requires and allows. Charge the most you are allowed on these including fees and interest. Don't be afraid of the APRs. These clients don't look at APRs, they look at the actual cost. Re-think the requirements for a small dollar, short-term loan. Train your staff in making these loans as quickly as possible, train these customers in paying on time and quickly, and remember to separate your thinking so the clients you make these small dollar, short term loans will always need these loans and may not need to be "up-sold".

These type loans may not provide "large amounts" of profit over a long term, but small amount add up. You already have locations. You already have staff. How efficient you run your business is up to you. If you know your costs, you could have a way to supplement income and bring in new clients or offer a new service to your existing base.

Does this make sense? Want to discuss more in depth? Feel free to leave a comment or contact us directly.

Roseto

2009-01-05T06:00:00.001-05:00

I'm reading a fascinating book by Malcolm Gladwell (author of The Tipping Point and Blink) titled "Outliers". It's a book that attempts to explain the path of success. One of the stories in the book is about the town of Roseto, Pennsylvania.

Researchers discovered back in the 1950's that virtually no one under the age of 65 had suffered a heart problem. They looked at numerous factors including diet, lifestyle and genealogy. None of these proved to be a factor. What they discovered was that the source of health and longevity was their relationship to family and the community.

The study found that there was an egalitarian ethos in the community that: "discouraged the wealthy from flaunting their success and helped the unsuccessful obscure their failures".

I think this is an extraordinary story and one that should cause us to reflect on our approach to community in our business, family and spiritual endeavors. If community is the key to personal success, then it makes sense for us to do all that we can do to facilitate this.

So, here's the question for all of us: Am I invested in the success of the community/family that I am a member of over my personal success?

My bet is that if we can push this concept forward in our society, we can change the world.....

Change is Coming for Payday Lenders and (maybe) All Lenders

2009-01-01T23:56:00.007-05:00

I don't know how many of you have seen the new Bill that we have posted on the right side on the blog. Please review that before moving on. If that is not enough to signal change, start Googling on Payday lending to see what States are passing. You can also find those States that will be doing something this year. I have also read a recent article that Shelby County, TN commissioners are working on passing a law on where a location can be placed (not to close to a school, etc)

You might think that this will not effect the finance companies and banks. Don't ignore this "tide of activity" by the elected officials at every level. Any caps passed can be pushed over to everyone on the State levels, but if the Federal Bill passes, it is all inclusive for all lenders. If your clients have even minimal late charges and NSF fees during the term, you will be limited in collecting those with the cap of 36%.

So what should you be doing? Preparing for change, even if it is not imminent. Develop a game plan for continuing to be profitable. Follow the progress of the legislation. Talk to your state associations and give feedback and suggestions.

"Why?", you ask. Change is inevitable. A growing misunderstanding of our industry by those "in charge" and their constituents is also occurring. A tide of legislative changes have happened over the last few years and no elected officials wants to be viewed as "uncaring". It is popular now.

Why am I advocating embracing change and preparing for it? In 2008, both Arizona and Ohio passed bills to cap interest on Payday loans even with that industry spending many MILLIONS in each state to defeat while those that were for the change spent only small amounts (under $300,000 from some articles I saw). Payday lenders lost by wide margins in voting by the people. Change will happen for the payday industry. What follows for our market is not known, but why ignore it?

You can email me for links to different articles that I have been reading on this subject.

For those of you not using the EnCompass or Kwik-Loan software and would like to see what it can do for you, please let me know.

Technology for 2009

2009-01-01T06:00:00.006-05:00

The mentality these days towards technology is to hunker down until the economy stabilizes. In some cases this might be the wise choice. However, for many this could be the time to make some adjustments in your technology strategy.

A recent article suggests that companies should look at the following strategies:

1. Virtualization: This allows you to run several operating systems on the same hardware. It maximizes your hardware investment and can simplify your IT strategy.

2. Cloud Computing: Also known as SAAS (Software as a Service), this is the future of software. The idea is to outsource the hassle of maintaining software and servers to a company that will manage your data securely and provide you with good service.

3. Go Green: Limit your travel, watch your paper usage and look for ways to cut down your power needs.

4. Be Social: Make use of the social networking tools that are available such as Facebook, LinkedIn, Twitter and Ning.

Resolutions

2008-12-31T06:23:00.001-05:00

Resolutions. Do you make them? Where did this come from? Evidently some mythical Roman king back in 153 BC named Janus became the symbol of New Years resolutions. He had two faces so he could look back at the old year and look forward at the new year. It was symbolic for reflecting on the mistakes of the previous year and endeavoring to do better in the coming year.

I like new. New years are a good time for me to take stock of where I'm at and do some planning and goal setting for the upcoming year. For many companies, it's a good time to do some budgeting and sales forecasting.

I think goals are better than resolutions. Goals seem positive to me. It's something to aim at or shoot for. Resolutions seem more negative. They are usually geared towards changing a habit or behaviour.

Here's an idea I came up with a few years ago: Take a few goals and put them on the back of a business card. Go to Kinkos, get it laminated and then put it in your wallet or purse. Take it out periodically and see how you are doing. Even if you don't hit any of them, you will most likely make some progress towards them next year.

Hope you have a great 2009!

Peanuts

2008-12-29T06:00:00.001-05:00

The following is the philosophy of Charles Schulz, the creator of the 'Peanuts'
(Don't actually answer the questions, just read...)

1. Name the five wealthiest people in the world.
2. Name the last five Heisman trophy winners.
3. Name ten people who have won the Nobel or Pulitzer Prize.
4. Name the last half dozen Academy Award winners for best actor and actress.
5. Name the last decade's worth of World Series winners.

How did you do?

The point is none of us remember the headliners of yesterday.
These are no second-rate achievers.
They are the best in their fields.
But the applause dies ...
Awards tarnish.
Achievements are forgotten.
Accolades and certificates are buried with their owners.

Here's another quiz. See how you do on this one:
1. List a few teachers who aided your journey through school.
2. Name three friends who have helped you through a difficult time.
3. Name five people who have taught you something worthwhile.
4. Think of a few people who have made you feel appreciated and special!!
5. Think of five people you enjoy spending time with.

Easier?

The lesson:
The people who make a difference in your life are not the ones with the most credentials...
the most money...or the most awards.
They simply are the ones who care the most.

''Be Yourself. Everyone Else Is Taken!'

Merry Christmas

2008-12-25T07:00:00.005-05:00

Christmas is really a story. The real story has been somewhat lost. We give gifts to each other every year but most of us are either not sure why or we have forgotten. In the above clip, Linus explains to Charlie Brown his perspective from the biblical story in Luke.

But this is just a piece of the story. Most people understand that Jesus was born some 2000 years ago (not necessarily on December 25th) but that's just part of the story. You have to dig further to understand the whole story. And if you have watched many movies it will sound familiar. It goes like this:

1. There was something really beautiful (Adam and Eve in the Garden)

2. Something was lost (They were tempted by Satan)

3. A hero appears on the scene (Christmas)

4. There is a dramatic rescue (Easter)

5. We live happily ever after (The hope of the biblical message)

As you celebrate Christmas in this difficult year, consider the whole story and latch on to the hope that it promises.

A Christmas Devotion

2008-12-24T06:00:00.000-05:00

On this Christmas Eve, I wanted to pass on a perspective from the song: "Silent Night" that I thought was particularly unique.

Check this out: A Christmas Devotion

Peer to Peer Lending Hits wall

2008-12-22T20:23:00.003-05:00

Companies like Prosper.com and Zopa have run into a regulatory wall with their peer to peer lending model. The SEC has decided that this falls into the area of an investment and therefore should be regulated accordingly. While this has put the brakes on these two companies, The Lending Club got regulatory approval earlier this year for their model and is going strong.

There is growing evidence that this will be at least one way to connect borrowers and lenders in the future. Stay tuned for more....

Social Media

2008-12-19T07:00:00.000-05:00

Social media is a growing phenomena. More of us use FaceBook, MySpace and Linkedin to connect with others. Watch this video to understand the value of social networking.

Wordle

2008-12-17T07:00:00.000-05:00

I thought I would take a break from the serious stuff and point you to something fun. Check out Wordle. It allows you to take some random words and creates a picture for you.

Social Software?

2008-12-15T07:00:00.003-05:00

Should software be social? One of the things I see converging is SAAS (Software as a Service) and Social Networking. What it boils down to is a relationship. When you make a decision to use a software application there needs to be a feeling of connectedness.

Are there other people who are using it? Is there a community I can connect with? Do they people associated with the organization care about me? Are they real people? Do they live in my country?

I think there is an opportunity here. As SAAS/Cloud Computing and Social Networking grow there are opportunities to make connections. The software application should facilitate that. The blogs, forums and social networks are really in their infancy. What we are going to see in the future is applications that are built around relationships. Social networking will drive that.

CRM has long been touted as the application that is necessary for companies to successfully manage customer relationships. One article suggests that these are beginning to converge. While I agree that CRM is a key component, social networking allows more collaboration and gives everyone an opportunity to contribute content and ideas. That is the key to successful relationships.

My guess is that you will see new technology organizations that will build solutions with this as the foundation. It really requires a rethink of your approach. Instead of adding on, we need to rebuild.

Projects

2008-12-12T07:00:00.000-05:00

I read a recent blog post on projects and it made me rethink what it entails. Traditionally a project is defined as follows:

1. It must have a start date

2. It must have an end date

3. There must be a bunch of resources to make it happen

What I see happening repeatedly on traditional projects is people end up working in silos. Even on good teams, there is very little collaboration. The folks running the project are always trying to control the resources and push for a completion by the target date. It's a top-down control model that is inefficient and rarely works well unless the project is extremely well defined down to the micro level.

The new model in today's world is more horizontal than vertical. It involves getting the team involved in the planning, amping up the enthusiasm and encouraging more collaboration. It's about freedom of expression and encouraging and empowering people to use their strengths.

Here's a quote that illustrates the point:

"Collaborative development is all about layering rather than silos, about horizontal consistency rather than vertical control. It is about open standards and interfaces rather than closed locks. It is about pragmatic community rather than prima donna behaviour."

Control is an illusion. Influence is the real power in projects and teams.

Senate Bill 3287

2008-12-10T07:00:00.006-05:00

There is a pending bill in the Senate that would limit consumer interest rates to 36% as follows:

SEC. 140. MAXIMUM RATES OF INTEREST.

‘(a) In General- Notwithstanding any other provision of law, no creditor may make an extension of credit to a consumer with respect to which the annual percentage credit rate, as defined in subsection (b), exceeds 36 percent.

‘(b) Annual Percentage Credit Rate Defined- For purposes of this section, the annual percentage credit rate includes all charges payable directly or indirectly incident to, ancillary to, or as a condition of the extension of credit, including--

‘(1) any payment compensating a creditor or prospective creditor for an extension of credit or making available a line of credit, or any default or breach by a borrower of a condition upon which credit was extended, including fees connected with credit extension or availability, such as numerical periodic rates, late fees, excessive creditor-imposed not sufficient funds fees charged when a borrower tenders payment on a debt with a check drawn on insufficient funds, over limit fees, annual fees, cash advance fees, and membership fees;

‘(2) all fees which constitute a finance charge, as defined by rules of the Board in accordance with this title;

‘(3) credit insurance premiums, whether optional or required; and

‘(4) all charges and costs for ancillary products sold in connection with or incidental to the credit transaction.

The Art of the Layoff

2008-12-08T07:00:00.003-05:00

If you are a manager or a business owner, you will face the day when you have to terminate or lay off an employee. In today's economy it is becoming more commonplace. Guy Kawasaki offers the following advice:

Take responsibility

Cut deep and cut once

Move fast

Clean house

Whack Teddy

Share the pain

Show consistency

Don’t ask for pity

Provide support

Don’t let people self-select

Show people the door

Move forward

A future without programming

2008-12-05T07:00:00.001-05:00

I love this movie. If you have ever worked with technology you can appreciate it.

A recent article titled "A future without programming" reminded me of Office Space. Technology continues to move at a rapid pace. It is becoming easier to develop solutions with little or no programming. It's an interesting concept but it has it's limitations. There are lots of things that can be done today with minimal expertise.

For instance, you can cobble together a solution with Zoho or QuickBase. You can build your own social networking site with Ning. You can create your own Wiki with Pbwiki. There are hundreds of solutions. I think that developers will still be needed as technology continues to grow. We'll just have the ability to do more things without technical help. Works for me.....

Collections and the Economy

2008-12-03T07:00:00.002-05:00

Collection agencies are being forced to alter the way they go after consumer payments in the current economy, even as placements are dramatically increasing, according to the results of an ARM industry confidence survey.

The trend seems to indicate that more loans are going bad (placements with collection agencies by banks are higher) and that collectors are modifying their approach. I would assume that this means they will be more lenient in working with consumers because of the downturn in the economy.

It must be frustrating for the consumers who have been laid off or downsized. How should they handle the never-ending phone calls when they can't meet their obligations?

In an effort to assist consumers with credit problems, the government has launched a new website called Control Your Credit. It's nickname is the Bad Credit Hotel. It's pretty interesting. There is a Room 850 which tells you how to improve your credit score (850 is the max). Check it out. You'll be surprised that the government put this together.

Tribes

2008-12-01T07:00:00.000-05:00

There is a great new book out by one of my favorite authors: Seth Godin. It's called Tribes. As you might suspect, it's all about the power of groups. It's a groundbreaking idea that suggests that anyone with passion can inspire a tribe of people who can influence others to change the world.

Leadership is the new buzz word. Many of us have been led to believe that leadership implies position. In other words, the only people who can lead are those at the top with the power and control. That is untrue. Influence can happen at all levels of a company, government or culture.

What are you passionate about? Are you pursuing it? If not, you should. When you do others will take notice and a tribe will form.

Social Business

2008-11-28T06:29:00.002-05:00

Listen to Muhamned Yunus talk about a "Social Business". He is the pioneer of Microfinance which has helped transform some third world economies. The thinking is that a business can exist to make a profit while also helping society. This is a growing trend. We're seeing more business people engaged in changing society. Bill Gates left Microsoft to focus on using his fortune to help others. But some businesses have decided that part of their mission is to help society while also making a profit. A trend that I think will continue to grow in the years to come....

Thanksgiving

2008-11-27T06:36:00.000-05:00

Tomorrow is our day in the U.S to focus on what we're thankful for. Some of us are probably thankful we have a job and a home. It's a time to get together with family, eat a lot and watch football. It's also the weekend where retailers will find out what kind of year they will have as shoppers fill the malls to shop for Christmas.

I'm thankful for a lot of things. I have a great family, good friends, a great team of people to work with and a good friend in God. Not to say that there aren't things I wish were different or better. I'm always looking for improvement in myself and the world I operate in. But I am optimistic about the direction that me and my allies are headed. Despite the current state of the economy, I think there is much not only to be thankful for but also to be hopeful about.

Hope you have a great holiday weekend!

2008-11-26T07:00:00.000-05:00

My granddaughter (McKaylee) is shown walking down the hall with an IV in this video. She is at St. Jude for treatment of an inoperable brain tumor. Her initial inpatient treatment is coming to an end and we're very thankful that she is coming home in a couple of weeks.

Find out more at the Miracle for McKaylee site.

Loans in the time of Facebook

2008-11-24T06:15:00.002-05:00

Social networking is changing how many people connect and in some instances how business works. One growing phenomena
is the concept of "Social Lending".

There is a growing list of companies that are connecting borrowers to lenders via a social network. It is building on the concept of "peer to peer lending. So instead of an institution lending to the consumer, individuals are lending to other individuals. Look for this to grow and change in the next few years.

Bank gives cash to customers before payday

2008-11-21T07:00:00.000-05:00

Fifth Third Bank has started a new program to give customers cash before payday for a 10% fee. I think we can expect to see more of these types of programs in the future. President-elect Obama has promised to cap interest rates on consumer loans and encourage responsible lenders to make small dollar loans.

I'm not sure that this program is a replacement for the industry but it is a sign. Based on the changes that have occurred at the state level in recent years and the mandate that the election brings, we can expect some regulation of the small loan industry.

Expect more on this in the coming months.

Inspiration

2008-11-19T07:00:00.002-05:00

How can we be an inspiration to others? Sometimes it just takes one person who is committed to making a difference. Check out this video

In a previous post I mentioned the power of influence. Notice how this one person made a decision and how it impacted so many people. We need more of this in our business, family and culture.

Scary Times

2008-11-17T07:00:00.002-05:00

Dan Sullivan of the Strategic Coach has the following advice about the times we are in:

1. Forget about yourself, focus on others.

2. Forget about your commodity, focus on your relationships.

3. Forget about the sale, focus on creating value.

4. Forget about your losses, focus on your opportunities.

5. Forget about your difficulties, focus on your progress.

6. Forget about the “future,” focus on today.

7. Forget about who you were, focus on who you can be.

8. Forget about events, focus on your responses.

9. Forget about what’s missing, focus on what’s available.

10. Forget about your complaints, focus on your gratitude.

My favorite is #4. Regardless of whether your candidate won or if your portfolio is up or down, there are always opportunities. It's simply a matter of perspective.

Decency

2008-11-14T07:00:00.000-05:00

Decency or grace is a missing element in the world of business. I would admit that I have missed the mark here numerous times. Ever heard the phrase: "It's just business"? Does that mean that it's not ok to screw somebody personally but if it's a business deal, then that's different?

In many cases what happens (and I have been guilty of this), expediency or profit gets in the way of basic decency. Somehow we have bought into the lie that "nice guys finish last". But don't just take my word for it, listen to these guys:

Seth Godin and Tom Peters on the Importance of Decency

Mac or PC?

2008-11-12T07:00:00.003-05:00

The students were given a choice: Mac or PC?

Guess who won?

The Bailout Part II

2008-11-10T07:00:00.004-05:00

Here is the latest list of bailout recipeints:

(1) PNC Financial Services - $7.7 billion;
(2) Capital One Financial- $3.55 billion;
(3) Regions Financial- $3.5 billion;
(4) SunTrust Banks- $3.5 billion;
(5) BB&T- $3.1 billion;
(6) KeyCorp- $2.5 billion;
(7) Comerica- $2.25 billion;
(8) Northern Trust- $1.5 billion;
(9) Huntington Bancshares- $1.4 billion;
(10) Zions Bancorp- $1.4 billion;
(11) First Horizon National- $866 million;
(12) City National- $395 million;
(13) Valley National Bancorp- $330 million;
(14) UCBH- $298 million;
(15) Umpqua Holdings- $214 million;
(16) Washington Federal- $200 million; and
(17) First Niagara Financial- $186 million;
(18) HF Financial- $25 million; and
(19) Bank of Commerce- $17 million.

(20) Compass Technologies-$0

The Election Part II

2008-11-07T07:00:00.004-05:00

The dust has settled and we have selected a new President to lead us for the next four years. This is a historic moment for us as a country. Perhaps there will be some healing for as a result. We definitely need it.

I think the vote was about "Change". I personally like change. Most people do and that's probably what made the difference in this election. We are less issue-driven and more idea-driven as a society. So, people tend to vote their hearts instead of their intellect. Sometimes that can be a good thing and sometimes not. Time will tell if this change was for the best.

My belief is that once a decision has been made, it's our job to get behind it and try to make it work. If you disagree, let your voice be heard. We can all make a difference.

I'm not a real political animal and if you read my pre-election post, you know I am personally doubtful that top-down change is effective. There are numerous things that need to be addressed from our economy to our energy policy. I hope that by working together we will get the needed changes that our society needs to move us forward as a nation.

One focus of the new administration is the economy. Embedded in the "Plan to Strengthen the Economy" is a proposal that could have far reaching effects on the payday, check advance and consumer finance industry. If this is put into law, the APR (Annual Percentage Rate) on consumer loans would be capped at 36%. Additionally there is language that seems to indicate that responsible lenders would be encouraged to step in and make loans to credit-challenged consumers.

While many in the finance industry are probably viewing this negatively, there are some entrepreneurs who I bet are looking at this as an opportunity. We service the consumer finance industry today with a robust lending solution for all types of organizations. We firmly believe that we have the software that will solve the problem for many who are faced with making a change.

If you are a lender and are searching for a comprehensive installment lending solution to meet your needs, contact us. If we can help you, we'll do our best. If not, we will encourage you to find an alternative.

Credit Sqeeze

2008-11-05T07:08:00.002-05:00

It's official. We're finally admitting we're in a recession. I'm guessing that we will look back in a few years and see that the world changed directions in 2008. Along with that there is a tightening of credit everywhere. Businesses are feeling it. Consumers are cutting back. Banks, mortgage companies and lending institutions are adjusting their credit standards.

Is this a necessary adjustment? Are we too addicted to credit? It seems the whole world is connected to how much we spend. Technology companies are feeling the pinch. China and India are dependent on consumer spending in the U.S. What does the future hold?

Credit seems to be a way of life for us. Our company is built mostly around the need for credit. My guess is that this is an adjustment. Changes will be made in how credit is extended. Companies and consumers will become more conservative in their spending. And some smart people will learn how to use this to their advantage.

The only certainty is that there will be change. Change can either be viewed as a negative or postitive event. Many people don't like change. They want everything to stay the same. Personally, I thrive on it. Change creates opportunities to grow and influence others. My vote is to look at this as a challenge and adjust your business or personal life to take advantage of it.

The Election

2008-11-03T07:00:00.002-05:00

As the election nears, the volume of email I get increases. I get jokes about the candidates, Youtube links, accusations, calls to pray, etc. I am glad that I live in a country where we have the freedom to vote and express our ideas. It's a privilege that none of us should overlook. I am also thankful for the people who have fought for the freedom we have. Every time I am in an airport and I see soldiers I am reminded to pray for these men and women. We owe a huge debt of gratitude for their service and sacrifice.

Tomorrow we will decide who will lead this country for the next 4 years. It's an important decision and one that I take seriously. But, who really has the power to change the world? We have a tendency to expect someone else to take care of us and solve our problems. Do you really believe that Mr. Obama or Mr. McCain have the power to do this? I don't think so.

Each of us have some sort of influence. Influence is the real power. It is increasingly so today. The internet has helped to level the playing field. Anybody can post their ideas now. You don't have to buy an ad in a magazine or newspaper. You can start a blog, post to Twitter, create a Youtube video, upload pictures, etc. You also are part of some group or tribe. It could be a family, a company, a church, a non-profit organization, club, etc. The point is that there are people that you have the ability to influence with your thoughts and ideas but most of all with your passion.

When enough people get passionate about an idea, things change. There are thousands of examples of this. Apple is on the map again because people are passionate about their product. Hunger and poverty in Africa is on our radar because of the One campaign and people like Bono who used their influence to get our attention. Christianity was started because of the passion of one man and a few dedicated followers. The United States was formed to a large degree by the passion and dedication of a few people. You get the idea.

So, here's the challenge for all of us: Find what you are passionate about. Pursue it and use your influence to effect change where you are. In my opinion, this is where the change occurs. And by all means, cast your vote. It's important. But regardless of the outcome tomorrow, fight for what you believe in. We need your passion and your influence.

Halloween

2008-10-31T07:45:00.001-04:00

Today is Halloween. It's the time when kids are knocking at your door for candy and such. The history of Halloween is interesting. While most of us have been taught to consider it as something dark and sinister, it at least partially has it's roots as a religious holiday.

All Saint's Day was a celebration by the early Christian church to honor those whose lives had been martyred for their belief in Jesus Christ.

There were also a lot of other traditions and beliefs about October 31. So about 500 years ago somebody thought it would be a good idea to merge these into what we now know as Halloween.

My opinion is it's a day like any other day. Enjoy it.

Credit Scores

2008-10-29T07:00:00.000-04:00

Most people realize that their credit score is a significant factor in their ability to get credit. It used to be sort of a secret among lenders but most consumers not only recognize the value of it but now have access to their score.

As more data is available about us, new ideas are emerging about how to gauge a person's creditworthiness. Enter the responsibility index. Have you paid your traffic fine? Been in an accident lately? Do you go to the gym? These may be factors in tomorrow's credit decisions.

A recent article suggests that "responsiblity" and "reputation" may play a role in future credit decisions. Much depends on the privacy laws and how they are applied but we can expect that more data about us will come into play as credit analysis evolves.

A couple of things come to mind. First, how concerned should we be about our personal information? And how different is this from the days when lenders made a decision based on what they knew about a person?

Red Flag Delay

2008-10-27T07:45:00.000-04:00

The enforcement of the Red Flag rule that was scheduled to take effect November 1, 2008 has been delayed six months to allow lenders more time to develop and implement theft prevention programs.

There has been quite a bit of confusion among lenders as to exactly what is required to comply with the regulation. The goal is to protect consumers from identity theft. I think the delay is a good thing. There is a need for this but based on what I have heard I think more time to determine how to comply is needed.

For those lenders still looking for a solution, contact us for more information.

Called

2008-10-24T07:00:00.001-04:00

Just wrapped up attending a weekend event centered on your "Calling" or purpose in life.
This event was geared towards men but the concept is applicable to anyone.

The idea is that we all were designed a certain way. You can look at your life and see clues about what this is. Then you simply be "who you are where you are" and endeavor to follow your God given passions and desires. If more people would follow their heart, the world would be changed.

It's all about the power of influence. I read a book earlier this year called "The Janitor". It was a story about a janitor who influenced a CEO to change his way of thinking. The janitor was simply being who he was. The impact of this changed the trajectory of the life of this CEO.

Everywhere I go I encounter people who are doing this. I was in a store buying shoes for my son. The lady helping us went out of her way to solve a problem. I commented to her: "You love your job, don't you?". She replied: "I love kids and I wouldn't do anything else". I have seen teachers and principals who exuded excellence and are having a profound influence on children.

There was a movie produced in 1995 called "Mr. Hollands Opus". It was a story about a teacher who wanted to create a symphony. It never happened and he felt like his life was of no consequence. But, what he failed to see was the impact he had on the children he taught. It turns out that they were his symphony.

So here's the challenge for all of us: Are you walking in who you are and doing what makes you come alive in such a way that it inspires and motivates others?

Humor

2008-10-22T07:00:00.000-04:00

I can't survive without humor. I find that in all situations, whether personal or business humor can change things. It's a great tool for facilitating conversations, starting a meeting or communicating ideas. I watched a presentation on Wikis a few weeks ago. They employed humor to communicate an idea. It was funny, educational and memorable.

There is a growing trend to weave humor in our communication. When Google announced their new browser, they chose to launch it with a cartoon. I recently stumbled onto a site that builds business cards with cartoons on the back. Great idea.

Persistence

2008-10-20T07:00:00.000-04:00

A recent blog post on the subject of effort got my attention. In the world of lottery winners, celebrities, high paid executives and sports players, the subject of effort is overlooked. It is easy to look at the result of some one's life and think that they were somehow luckier or smarter than us. It is true that those of us born in the US are fortunate. If you have made a trip to a 3rd world country, you see that. But, in looking at other people's success I think sometimes we devalue the effort and persistence that it took to get there.

I have always liked a quote by Calvin Coolidge on persistence. Basically, his take on life is that persistence and determination are the characteristics of success. If you want something bad enough and are willing to commit yourself to it, you have a high probability of achieving your goal. And even if you don't quite make it, there are benefits to sticking with it.

The lessons learned along the way are huge. The discipline it takes to stay with it build character. And you will stand a much better chance of success when you give it your all. If you aim at nothing you will hit it every time.

The biggest regrets I have revolve around the failures in my life (There are huge lessons here, but that's a topic for another day). In most cases I can trace this back to a lack of persistence and determination on my part.

Here's the bottom line for me. If you want something, be willing to persevere through the difficulties to get it. Don't sit back and be critical or whine about what's not right. Do something about it.

Stories

2008-10-17T07:00:00.000-04:00

Do you want to make a good presentation? Communicate an idea effectively? Consider using a story. Think about it and you'll understand.

All children love stories. Even though we're adults we go to movies to hear stories. Many great communicators have understood the power of this.

If you have a message you want to deliver, use a story. It could be a personal experience, a funny sidebar, etc. If you do this, people will remember it. And you will have an easier time making your point.

A recent article stated: " Neurologists say that our brains are programmed much more for stories than for abstract ideas". The next time you are called on to make a presentation, deliver a speech or simply meet with a group of people, tell your story. It will have a lasting impact.

Delinquencies

2008-10-15T07:00:00.002-04:00

They are on the rise. A recent article indicates that auto delinquencies total $25 billion dollars. Foreclosures are nearly epidemic. Several people I have spoken with have told me that in certain neighborhoods in Florida, there are 2-3 houses on every block that are vacant due to foreclosure. Recently, Bank of America announced that they would reduce mortgage payments for distressed borrowers.

What should we do? Many I talk to want accountability. Yet, with the economy in a free fall it seems the practical thing to do is to craft programs that prevent a total collapse.

Everyone shares the blame of how we got here. Lenders who knowingly extended too much credit, consumers who willingly took on too much debt and a culture that encouraged both. I doubt anyone has the answer. What I think is needed is teamwork, strong leadership and creative thinking.

We have a resilient group of people. We survived The Civil War, The Great Depression, World War I & II, 9/11 and numerous other life altering events in our history. We can figure this out. This has always been the land of opportunity. Let's take this as a challenge, roll up our sleeves and work together to solve the problem.

Columbus Day

2008-10-13T07:00:00.003-04:00

Today is Columbus Day. It's the day we celebrate the discovery of America. I think what is compelling about the story of Christopher Columbus is his sense of adventure. He believed in something enough to stake his life and reputation on it. There was no basis of fact for the mission he envisioned. He had an idea, stuck his neck out for it and we remember him because of it.

Can you imagine getting on a wooden boat 500 years ago and sailing off into the ocean with no idea where you were going or if you would get there?

Cloud Computing

2008-10-10T07:45:00.000-04:00

What is it? All these terms seem to change every few years. 25 years ago when a company provided you online access to a computer application it was called a Service Bureau. This wasn't flashy enough so it evolved into ASP (Application Service Provider).

Most recently the industry coined the term: "SAAS" or Software as a Service. This makes sense to me because it clearly defines what you're getting. You want to use software to handle some aspect of your business or personal life. Instead of purchasing the software and loading it on your Personal Computer or Server, you access it via a web browser. The company providing the software is allowing you to use it as a service and hosting the application for you.

The latest term is "Cloud Computing". In my opinion this is no different than SAAS. It sounds cool. But what does it really mean? Is my data in a Cloud? Who owns the cloud? Does it float around? Who backs up the cloud? And what happens when it rains? Does my data go away?

Entrepreneurism

2008-10-08T07:00:00.002-04:00

What exactly is behind this? Why the obsession with starting things? Ever heard of serial entrepreneurs? Are they akin to serial killers? A recent article on this subject got my attention. It seems to indicate that entrepreneurs may have a few screws loose. Could be...

There is this initial euphoria with starting a new venture. Then there is the "Holy crap, what have I done?" point. After that, you either persevere and succeed or you crash and burn.

I think whether you are an entrepreneur or not, you can relate to this. Whether it's a new job, a new relationship, new car, etc. Everyone has experienced this. You jump out and do something. Then, if you're breathing, you wake up and start to reconsider your decision.

The difference for entrepreneurs or thrill junkies is that they have an insatiable desire for risk and starting new things. Their obsession with the goal causes them to overlook the obvious pitfalls. From personal experience I think this is simply the way it is. In order to start something new, you have to take some calculated risks. If you are passionate about your mission and are willing to persevere through the tough spots, you will most likely reach your goal.

My .02....

Collaboration

2008-10-06T07:55:00.000-04:00

The way of Web 2.0 is definitely collaboration. One of the ways that people can work together these days is via a Wiki. It started years ago with the release of Wikipedia. This was introduced as a way of cataloging information to sort of be a online encyclopedia.

This has been fairly successful and now a number of products have sprung up that allows companies and groups to create their own Wiki site to manage information for their teams. It allows people to collaborate on documents and facilitates the information sharing process. We're currently evaluating a couple of solutions internally to determine which one is the best fit for us. Pbwiki and SocialText are a couple that we have looked at. There are a number of good solutions out there. Just Google the word: "Wiki" and check it out. More later....

Red Flag Update

2008-10-03T07:45:00.000-04:00

I thought I would get you an update on the latest Red Flag compliance information. We are offering a free 60 page compliance document for any new order between now and November 1. We also wanted to let you know that the FTC is gearing up to handle consumer complaints for this new regulation. There are some rumors that they are increasing staff to insure compliance.

AFSA recorded a webinar on compliance that can be ordered from their website. It provides detailed information about the rule and compliance.

Be sure you're ready!

The Bailout

2008-10-01T07:00:00.003-04:00

Our financial markets are in a tailspin this week. I'm no economist and I don't pretend to have the answers but this bailout proposal makes no sense to me. It seems that we're rewarding people for making bad decisions and not making them take ownership of the problem.

I do believe that to some extent, many of us can share the blame of where we are today. Consumers are partially responsible for the mortgage fiasco. Certainly the financial institutions should have never allowed financing to be as readily available. But I doubt there are many who were coerced into signing up for a loan that they could not afford.

But, here we are. And we need to work together to solve the problem or we will all suffer. I got an email yesterday from a financial expert with what I believe is a common sense approach to the problem. What most people do not understand is that the write-offs (that are creating much of this problem) are required because of regulations and accounting rules. The intent behind them is good. Assets should be carried on a balance sheet at their actual value. But, it seems to me that relaxing this a bit makes some sense in our current economic climate.

Here's the proposal (if you agree, forward it to your representative):

The Common Sense Fix

I. INSURANCE
a. Insure the subprime bonds/mortgages with an underlying FHA-type insurance.
Government-insured and backed loans would have an instant market all over the
world, creating immediate and needed liquidity.
b. In order for a company to accept the government-backed insurance, they must do two
things:
1. Rewrite any mortgage that is more than three months delinquent to a
6% fixed-rate mortgage.
a. Roll all back payments with no late fees or legal costs into the
balance. This brings homeowners current and allows them a
chance to keep their homes.
b. Cancel all prepayment penalties to encourage refinancing or
the sale of the property to pay off the bad loan. In the event of
foreclosure or short sale, the borrower will not be held liable
for any deficit balance. FHA does this now, and that
encourages mortgage companies to go the extra mile while
working with the borrower—again limiting foreclosures and
ruined lives.
2. Cancel ALL golden parachutes of EXISTING and FUTURE CEOs and
executive team members as long as the company holds these
government-insured bonds/mortgages. This keeps underperforming
executives from being paid when they don’t do their jobs.
c. This backstop will cost less than $50 billion—a small fraction of the current proposal.

II. MARK TO MARKET
a. Remove mark to market accounting rules for two years on only subprime Tier III
bonds/mortgages. This keeps companies from being forced to artificially mark down
bonds/mortgages below the value of the underlying mortgages and real estate.
b. This move creates patience in the market and has an immediate stabilizing effect on
failing and ailing banks—and it costs the taxpayer nothing.

III. CAPITAL GAINS TAX
a. Remove the capital gains tax completely. Investors will flood the real estate and stock
market in search of tax-free profits, creating tremendous—and immediate—liquidity in
the markets. Again, this costs the taxpayer nothing.
b. This move will be seen as a lightning rod politically because many will say it is helping
the rich. The truth is the rich will benefit, but it will be their money that stimulates the
economy. This will enable all Americans to have more stable jobs and retirement
investments that go up instead of down.

BaseCamp

2008-09-29T07:45:00.001-04:00

We recently started using a new solution to manage our internal and external projects called BaseCamp. It's a great tool that allows you to easily manage projects and to-do lists. It is in keeping with our philosophy to support SAAS (software as a service) applications. We firmly believe that this is the future of computing.

BaseCamp also is part of a wave of elegant but simple solutions that are beginning to take hold in the marketplace. It also facilitates collaboration. That's one of the biggest reasons we selected it. You can easily determine what's happening with a particular project and make comments. For more information go to the 37 Signals website.

Passion

2008-09-26T11:03:00.002-04:00

Here's a question that I think needs an an honest answer: "Should I do what I love?". Job usually translates into doing something I hate. Need money, have to pay the bills so I get a job. That's where most people live. Duty calls so I take on a particular career, vocation or business opportunity. The primary reason most people do this has little bearing on how they are wired and what they are passionate about.

A recent article indicates that start-ups that succeed usually are powered by passion. The person starting the business is passionate about what they do and this pushes them over the normal bumps that can derail a small business. I believe this is just as true for people in their chosen career. If you plod along doing a job you hate you will either not succeed or possibly get fired.

There are practical limits to this. Many times there are circumstances beyond your control that force a certain decision. But, if you are passionate about something and you continue to fuel that desire and look for opportunities to pursue it, I believe you will ultimately find it.

We need more people who are pursuing their calling and doing what makes them come alive. It changes everything.

Technology is Great..Right?

2008-09-24T22:06:00.002-04:00

I rode down to Florida (Disney World) on Friday. Other than driving through Atlanta and into Disney World, I just rode in the back seat. Well, technically I rode AND worked. I had my laptop, a Verizon wireless card (and while I am not getting paid to say this, I have used this card in some remote places and NEVER had a problem), and a power converter so I could plug my laptop in through the cigarette lighter to charge it if needed. I signed on the wireless card in Maryville, TN and it keep me online all the way to Orlando, FL. I had chat, email, and Compass.

Why write on this? From my perspective as being a former "finance" person..

I can chart out a collection route, give it to a collector, send that person out with a computer, wireless card, power converter, and even a printer for receipts. They can follow that route and report back in. Even better, if the customer says they "just made a payment", that person can check Compass right there. Your collector can also make notes right then...while it is fresh (and you can review right then). Can't get a phone signal (and my wireless card has worked when I could not get cell service), send an instant message. If you have a change in plans for the collector, send an instant message. Using Kwik-Pay through Compass or ACH...you can set that up on the spot. Cell phones don't always work or most efficient.

Conversely, I could have a loan officer sit at a Retailer and sign in to Compass and do apps and approvals. I could have them work a special event. All that is needed is a laptop, wireless card, and printer. Have a customer that can't come to you, go to them (if allowed).

The options are endless. Use the mobile technology available to you before your competitor does...or is.

Numerati

2008-09-24T06:28:00.003-04:00

OK, this is weird. Some dude at IBM wrote this book. It's based on a mathematical model that IBM is using to learn more about their employees and how best to deploy and utilize them. They look at tons of data including personal likes/dislikes, habits, emails, co-workers, etc. to determine what projects to assign and what teams work best together.

What is interesting about this to me is how they are applying this to a service based industry. I can understand how you utilize information to make a factory work more efficiently. Can you really look at this sort of information and determine how to use a technology worker?

In our company we have used personality profiles and strength tests. Our goal is to understand each other better and make adjustments so we're all playing off our strengths instead of our weaknesses. It also fosters teamwork as we learn each other better.

Sifting through emails and determining someone's ability or worth seems creepy to me. Does this define me? I'm not sure I want a computer algorithm determining my worth nor do I want someone digging into all my correspondence to place a value on me. Information and technology are great tools. But I don't think they can replace common sense and intuition. Plus, I don't like the idea of "Big Brother" watching me. Reminds me of 1984.

Windows and Seinfield

2008-09-22T07:45:00.001-04:00

It seems that the latest thing for Microsoft )since Vista has failed to capture our attention) is to launch an ad campaign. So they hired Jerry Seinfield. Good move. But it doesn't make Vista better nor does it make Microsoft cool.

One thing we should all be paying attention to is the buzz instead of the hype. These days it's more about who you are than what you do. With the advent of bloggers and twitters, the world of advertising is changing. What you need is people who are passionate about your product and service who are spreading the word. It becomes a grass roots movement. That is the story of Apple and Google.

What Microsoft needs to do is reinvent itself. If it can capture our hearts and minds with a compelling product and vision, the advertising will take care of itself.

Wild Hogs

2008-09-19T08:11:00.001-04:00

This year I decided to step into the world of motorcycling. I bought a bike a few months ago. As expected there was more to it than I thought. In Georgia you have to get a motorcycle license. There is a written test and a road test. A friend encouraged me to take a motorcycle safety course. The riding test is incorporated into the course so you can get your license upon successful completion of the course.

I thought it would be easy. I rode a bike when I was younger and I had been riding a few months with a permit prior to the class. The class was led by two women who had been riding for a number of years. They were tough but very good at what they do. I met some cool people and learned a lot. Mostly I learned how to be safe and have an appreciation for the dangers of the road.

KISS

2008-09-17T07:37:00.001-04:00

This is going to reveal my age a bit. Back in the 70's when I was a teenager I went to a KISS concert. I'm not sure why we thought they were worth listening to. I do remember that they put on quite a show. They were considered a bad influence by my parents. There is even a movie about this. But at the time no one really thought of them as a brand or a business.

Fast forward to 2008. Gene Simmons has a TV show and is giving interviews to Business Week about entrepreneurship. He reveals what he learned about business and making money as a member of the band.

There are a couple of things in the article that stand out. First he ignores failure. His comment about it is: "I fail all the time. It means nothing". I think this is extremely important. We make far too much of success but failure is the better teacher.

Secondly, he credits being a voracious reader as a key to success. I totally agree. If you look at successful business people such as Bill Gates they are lifetime learners.

When I was 18 I would never have imagined getting business advice from the lead singer of KISS. Go figure.....

Collection Calls

2008-09-15T07:45:00.000-04:00

We have a module in our software that facilitates the debt collection process. It manages loans by client-defined categories and presents information to the end user to help with what is normally a phone call to solicit a payment.

This is got to be one of the toughest desk jobs on the planet. Contacting people to encourage them to pay a bill is no fun. Especially when a lot of these people are facing some financial challenges and just can't pay everyone. How do you get them to pay you first? How do you be firm and avoid emotional confrontations? A recent article suggests that there is an element of salesmanship involved.

This makes sense to me. Certain people either instinctively or by virtue of training know how to disarm most people in difficult situations. I have seen customer service people who took an irate customer and found a way to calm them down.

Here's some thoughts on this and I think they are somewhat universal:

1. Be empathetic. If I have a problem and I detect the person working with me is concerned, that helps a lot.

2. Look for solutions instead of problems. This is huge. It's easy to point out the problems. Anyone can do that. Working with someone to find a solution implies partnership. Again, it shows you care.

3. Be kind. The world needs more of this. I know that I always get more done by asking politely instead of being demanding.

4. Be firm. Every situation has rules and limits. You should not be afraid to firmly but politely point these out.

This is my .02 worth. If you have some comments, feel free to post them.

Creativity

2008-09-12T06:52:00.006-04:00

What's the secret behind creativity? How do you maintain it as your organization grows? In my experience it's easy in a start-up situation. Everything is new. There is that initial euphoria and excitement that is kindled with a new opportunity. But as you move from the idea stage into delivery and production, it becomes more challenging to maintain the creative environment.

One of the companies that has an impeccable track record in maintaining creativity is Pixar. They continue to deliver new movies that are both ingenious and successful. How do they do it? In a recent article, John Lasseter (Creative Officer of Pixar) opens up about how Pixar does it.

Two things stand out in this story: Risk and People.

In order to maintain a creative environment you have to continue to take risks. Complacency and the status quo do not foster creativity. The other ingredient is the people on the team. If you have great people and you turn them loose, you will get "out of the box" results.

Where vs. How

2008-09-10T06:27:00.004-04:00

Whether it's business or personal it seems that we all want to know what direction we're headed in. Even our company name implies direction. If you are on a trip, you need to know where you are going. If you are starting a business, family, new career, etc. direction seems to be a key ingredient. In one of my favorite movies, one of the actors says: "The Russians don't take a ____ without a plan."

It is important to have a plan; to know where you're going in life whether it's business or personal. But I think that the how may be more important than the where.

For instance you can plan to deliver good customer service. You can put all the the processes and procedures in place. But if the people involved in the service area are not concerned about solving problems and delivering a good experience it won't happen.

How your brain works

2008-09-08T07:45:00.000-04:00

Ever had a tough time making decisions because you're faced with too many of them to make? The latest scientific research indicates that you are not alone. It seems that procrastinators are actually smarter than we thought.

Every decision you make reduces your ability to make future decisions in a day. So it's best to make the toughest decisions first and then put off the smaller ones until later.

In the world we live in today with so much information it makes sense to regulate your intake and take time for big decisions. I have to admit that this goes against the grain for me. Technology is the world I live in and there are tons of decisions that need to be made each week. The tendency is to make them as quickly as possible so we can move on to other tasks.

But if the brain really works like a muscle and every decision affects later decisions then it makes sense to budget your decisions each day. So if you're a procrastinator, you're doing your brain a favor.

The Dip

2008-09-05T06:47:00.001-04:00

A favorite author of mine wrote a book called: "The Dip". It's a very easy read and takes on a subject that I'm not sure anyone has addressed in quite this fashion. Most of us have heard Vince Lombardi's famous quote "Winners never quit and quitters never win". Seth has a different perspective on quitting. His take on it is that there are times when quitting is necessary.

We all know that there are things that we need to quit. Quit eating too much; quit smoking; quit spending so much time on the internet read blogs, etc. But I think there is a case to be made for quitting something that is not paying off in favor of a new direction. You have to use some discernment and wisdom with this approach. Sometimes the payoff can be just over the horizon. But there are times when you simply have to admit that the direction you are going is never going to pay off.

So, what do you need to quit?

Microsoft adopts SAAS

2008-09-03T07:00:00.007-04:00

Microsoft recently announced they were adopting a "Software as a Service" model. This is a trend that I think will continue to get groundspeed. Some of you may know that most of our business is built around the SAAS model. While we currently offer our product as both an "in-house" and hosted solution, most new customers prefer that we handle it all. There are pros and cons to both but I think the hosted model is the best.

The primary reason is that you don't have to manage the server. Here's why this is important:

A server is a responsibility. You have to insure that you are running all the latest updates for the OS and the software application. You have to perform periodic backups. You have to allow for growth and watch the CPU usage as well as the hard disk storage. You have to continually verify your security and virus protection. You need a disaster recovery plan. And you have to anticipate that eventually you will have to replace it due to support issues and inability to run the latest software as the hardware ages.

We also practice what we preach here. We use a hosted accounting system, a hosted CRM solution and a hosted project management product. In all of these cases we tried the "in-house" approach and the hassle and responsibility was not worth it for us.

I would encourage you to explore this further. SAAS and cloud computing is the direction of technology. If you haven't tried it, give it a test run. You can get your feet wet with Google calender, email and documents. Check it out. It's free.

Presentations

2008-09-01T07:45:00.000-04:00

Presentations are about capturing the attention of your audience. I have watched and been a part of many that put the audience to sleep. I have also seen a few that had them on the edge of their seats. What makes a good presentation?

One thing to keep in mind is how our brains work. You usually have a certain amount of time (about 10 minutes) to make your point before people tune out. The content has to be good and you need to use pictures instead of just text on visual presentations (think Powerpoint).

Steve Jobs does the best job of anyone I have seen. His presentations flow. The information is there. The visual effects and his enthusiasm keep your interest. Of course he has the product and the momentum behind Apple. That helps. But there are things we can glean from his style. Whether you are making a sale or simply trying to make a point about something that is important to you, pay attention to what gets and keeps the listener's attention.

Consumer Attitudes

2008-08-29T07:45:00.003-04:00

A recent Harris Poll shows a big change in consumer attitudes towards certain industries since last year. Many of these should be no surprise. Oil companies, banks and brokerage firms have lost the most ground. Computer companies seem to be doing ok (Yeah!). Much of this is due to the economy, the mortgage crisis and the rising cost of gasoline.

Since most of our customers are in the financial industry, I am assuming that the public perception has gotten worse. What can we do to improve this? I'm not sure. I think some things are just cyclical and will only improve with the passage of time. So most likely we just need to stay the course and ride out this dip in consumer confidence.

The Unbanked

2008-08-27T07:45:00.002-04:00

As the U.S. economy and population demographics change, the segment of society that is "unbanked" or underbanked" is increasing. This makes it increasingly difficult for folks who are marketing financial services to reach these people with products. There is a large group of people who are either distrustful of banks, illegal residents or for some other reason have decided to be off the financial radar. They operate in cash, use check cashing services as a last resort and are a particularly difficult group of people to categorize and to lend money to.

In the past few years the payday lending market has grown in response to this growing group of people. With the state of the economy and regulatory pressure at the state and federal level, there is a concern about where these consumers will go for credit. A recent study by the Tower Group estimates that there are 100 million consumers in the U.S. that could be categorized as "unbanked".

The challenge for providers of financial services and the systems they depend on must be innovative to both identify these consumers and to offer products that are appealing to them.

Saving your data

2008-08-25T08:01:00.002-04:00

One thing we all need to pay more attention to is getting good backups. The value of a SAAS (Software as a Service) solution is you don't have to worry about that. Very cool reason to use a hosted system instead of running an in-house server. More on that later....

Anyway, a few weeks ago I'm on the airplane reading one of my favorite magazines and stumbled across a reference to my oldest son. It seems that a local PR firm here in Atlanta submitted an article to Inc magazine about a power outage and it got published. You can check out the article here, the blog here and the pictures of what happened that day here. There is also more about Dustin's company (Matchstic) here.

So, back to the subject. It's a good idea to have a backup and disaster recovery strategy for your in-house servers. One solution is to use a company that will back up the data offsite. A backup is only valuable if it is in a safe location so you can get to it. If you use a hosted solution, go home and let somebody else worry about the backup. If not, start thinking about a strategy to backup your data.

FDIC Small Loan Pilot Program

2008-08-22T07:45:00.004-04:00

Here's a new twist. The FDIC launched a 2 year pilot program in February of this year with a group of 31 banks to offer a small dollar consumer loans to customers that would typically use a payday, cash advance or consumer finance company. The loan amounts must be $1000 or less with no or low fees and an APR of less than 36%. The results of the program thus far are mixed with some banks breaking even, some losing money and others reporting a small profit.

While this seems reasonable to the average consumer, it seems unlikely to me that this will bear much fruit. The reality is that this segment of the market has never been profitable for banks. While there is a lot of noise around the payday/cash advance/consumer finance industry, these companies only exists because banks have stayed away from the market.

I'm no expert but my question is this: If this market wasn't a good place for banks to invest insured deposits in the past, why is it ok now? I am in favor of helping people who need a hand. If there is a business model that will help the consumer (thus helping society), allow the lender to make a reasonable profit (thus giving their shareholders a reasonable return on their investment) and keep our banking system safe then everyone wins.

It seems to me that you have to investigate how we got here. Small loan companies exist because there is a segment of society with sufficient credit challenges that require higher rates to cover the risk of loss. Payday/Cash Advance companies exist because insufficient funds charges are steep. I'm wondering where this is going.....

Red Flag Part II

2008-08-20T07:45:00.006-04:00

In a previous post I mentioned the pending regulation known as the Fact Act. I promised to update you on where we are with this regulation and how we plan on helping the finance community. Here's our plan:

1. We will offer a free "Policies and Guidelines" document for every customer who signs up for a new product or service with Compass. Contact sales@compass-technologies.com for more information.

2. We are working with our user community to create changes to facilitate compliance with Red Flag and the FACT Act. Contact support@compass-technologies.com for more information.

3. We are evaluating offerings from various vendors such as Equifax and LexisNexis to determine if these types of solutions will be helpful in compliance.

Feel free to comment on the blog here, at www.kwik-forum.com or send us an email. We would love to get your input on what you're doing and how we can help.

Student Loans

2008-08-18T08:01:00.000-04:00

It seems that student loans are getting easier and more exotic. A recent article found that it's getting easier and cheaper for students to obtain a college loan. The limits have been raised and the rates have been lowered.

What is most intriguing is the companies that are finding creative ways to make loans to students. Virgin Money, Greennote and Fynanz are allowing people to either find an investor via their site or allow friends and family to formally lend them the money.

This is similar to the Prosper model. You can post a loan request and get funded from a variety of investors. As credit restrictions get tighter and the internet grows I think we can expect to see more of this type of lending.

Finance Camps

2008-08-15T08:05:00.000-04:00

It seems that summer camp has taken a new turn this year. With the economy faltering, foreclosures on the rise and the stock market tanking parents are sending their kids to "Finance Camp". Here, kids learn how to spend money, invest in stocks and save money.

Sounds like a great idea to me. I wonder if there is an age limit?

Buford, GA

2008-08-13T08:10:00.000-04:00

Recently Fortune magazine published an article on the 100 best places to live and launch a business. Our own Buford, GA was No. 3 on the list. It lists safe neighborhoods, affordable real estate and a relaxed pace as the top three reasons for the selection.

Then there is the largest Mall in the Southeast.

And there is the new Gwinnett Braves minor league team that will be playing here in 2009.

Or maybe it's the small but powerful software company that powers this blog.....

Control Freak

2008-08-11T07:55:00.003-04:00

It seems that being a control freak is a good thing after all.

Cheryl Cran of the Brazen Careerist lists 5 reasons why it's a good thing:

1. It’s about being positive

2. It’s about execution.

3. It’s about choosing a path.

4. It’s about focus.

5. It’s about handling uncertainty.

I admit that I have a tendency to want to control everything. Ask my teammates. It is incredibly hard for me to watch someone typing without jumping in. So now Cheryl tells me it's ok. So where does teamwork come in? How about allowing people to fail?

Here's what I think. You have to marry the compulsion for control with a dose of leadership (something I admit I'm still working on). The goal is important and nothing really gets done without focus and direction. But occasionally you have to step back and allow others to be involved and possibly change the course. Even if you think it's wrong.

If the vision is clear and compelling and you have built a good team with strong relationships you can relinquish some control. Someone still needs to set the course and guide the ship. Otherwise there is anarchy. But if you have the right people on the boat there is less of a need to be a control freak. In my opinion....

8-8-8

2008-08-08T08:08:00.001-04:00

If you're into numerology today is your day. It seems that someone thought it was a great idea to stage the 2008 Olympics on August 8, 2008 at 8:08:08 p.m. CST.

Some people think that this will be the end of the world. Others are scheduling their weddings on this day. For me it's just another day.

Enjoy the Olympics, have a good weekend and we'll be back on Monday.

Outsourcing

2008-08-06T08:01:00.002-04:00

Tim Ferriss wrote an interesting book last year titled "The Four Hour Workweek". The original title was "Dealing Drugs for Fun and Profit". This didn't fly with the publisher so Tim changed the name. Basically, this is a how to manual on outsourcing for small companies. One of the things Tim did (not sure if this was intentional) was to help a website called Elance.

Elance is sort of a Ebay for buying and selling professional services. You can post a job that you need done and get a bid from several companies and/or consultants. This is another trend that I think will keep growing over time. While only a few will succeed in matching Tim's success, there are some valuable tips in the book.

A recent article in Business Week shows how even the smallest companies are using outsourcing to their advantage. I think that this is a trend that will continue to grow as we become more connected and as we transform into a global society.

Check it out when you get a chance. And keep an eye on outsourcing.....

Open Source

2008-08-04T08:01:00.001-04:00

This is one business model I can't figure out. How do software companies make a profit by giving away their product? Have you ever heard the phrase "There's no such thing as a free lunch"? It's really just another marketing approach to me. Eventually most of us will pay for something. Either support or service, but we will pay. Linux and Sun really started this.

SugarCRM has raised over $7M and given away 325,000 copies of its software according to a recent article. But they do offer to sell versions of the software and offer a service based solution also. The trick is that the free version does not come with all the bells and whistles that you need for a full commercial application.

Aside from the financial aspect of this movement, the teamwork of disassociated programmers working independently towards a common goal is the most interesting piece of this to me. Don't you find that it's really hard to get a group of employees to work together as a team? As a technical person I can tell you that we're the toughest group to corral.

I think it has something to do with passion. When people are passionate about what they do they will do whatever it takes. They will invest large amounts of time and money. They will fight the obstacles and endure the mundane to do what they truly enjoy.

I believe that this the key to motivating people. Find what they are passionate about, give them a goal and turn them loose.

Core Values

2008-08-01T08:01:00.005-04:00

One of my favorite blogs is Jon Dale. He tells a story about customer service and how a comment on Twitter about a local guitar store got him a response from the EVP of the company. He later comments about why he loves Zappos and loathes AT&T.

I am intrigued by his comment about companies that are part of the Axis of Misery. The thinking is that certain companies by their nature (airlines, phone companies, etc.) are just going to have customer issues and that's the way it is. The CEO's of these companies have to avoid customers in order to get their job done. Are software companies in this list?

Zappos has some fairly unique core values. My favorite is: Create Fun and a little Weirdness. Read the list. It's interesting and ambitious but it seems to be working for them.

Anyway, the point to all of this is how can we do a better job of creating positive customer experiences? It's a balancing act. Product, attitude, vision, leadership, passion are all components. Standards (policies and procedures) are vital. Frankly, our challenge is delivering a customized solution in a way that meets our customers needs while maintaining an acceptable level of quality. Maybe we need more of the weird factor....