Lessons from a Small Business on Intellectual Property Protection

 

Early in the process of designing my first product for manufacturability, I asked for guidance from people who knew more than me. In my first such conversation I was asked if our IP was solid. I remember saying something like “yes, we have that!” And then frantically googling “IP” while on the call. Note… in this context it did not mean my Internet Protocol address, as google suggested.  I eventually figured it out to mean Intellectual Property… and then eventually figured out what that meant. I liked the fact that it suggested I was an Intellectual. And that my inventions were Property that I could Own. All things that massaged my ego.

I am a fashion designer and a dentist. As a basic principle, IP does not typically exist in those worlds. One does not tend to[ patent a shirt design. But one CAN patent the technology behind the fabrication of the shirt, which is a textile engineering process, not fashion. One can not patent a dental procedure, but one CAN patent the tools used in said procedure, which is a mechanical engineering process, not dental. So it has never really been on my radar.

…Until I came up with what I believed to be the best invention in baby proofing ever (echo echo). When anyone invents anything, the amount of thought behind the most minute details, and how they combine to make something that functions as one sets out for it to, leaves one feeling like theirs is an invention that thousands will try to replicate, if they heard even a whisper about the invention (aka paranoia). But that feeling is balanced (sometimes out-balanced) by one’s excitement and impatience in sharing said idea with the world.

At least that’s how it felt for me, with the added eagerness of knowing this invention would benefit the safety of children. And it is this paranoia/impatience that laid the foundation for my IP protection projectory. Though I will say, it took me a while to develop full-scale paranoia.

I recently spoke on a podcast with an IP maven about my experience in brand protection. In this conversation I realized the layers of Intellectual Property Protection I had sought and received. In retrospect, it added up to an onion of knowledge despite being less of an organized and intentional journey than I would have hoped. So I thought I might share my onion of IP protection in the hopes that it might provide some direction on your IPP journey.

Layer 1: NDA (Non-Disclosure Agreement)

I was educated on the importance of an NDA when I meet with my first to-be mentor. While recognizing this was not something he had interest in, he advised me that every conversation on this product going forward should be protected behind an NDA “for your IP protection”, he said. This is when I googled ‘IP’.“People talk”, he said “and the opportunity for them to speak freely leaves your hard work vulnerable to those who have more access to resources than you do right now”. He was right. This was my first taste of feeling IP paranoia.

So I found an NDA online that was applicable to the state in which our company was located. And that NDA would be used about 25 times that year, replacing the name and address of the “disclosing party” as we went.

But there was a moment when I got cocky. We received our first prototype and officially filed our patent application (which is the next layer). I was just given the contact of the owner of a well known brand in the baby product industry, and he had accepted a mentor-type call with me. I was eager to gain insight in to the industry. The conversation was going really well until he asked about my product. It didn’t occur to me he would have interest. I became fairly guarded in detail realizing I did not have him sign an NDA. When he showed excitement for what I was doing and mentioned that baby safety products were not their interest, I opened up a little thinking our newly filed patent application would blanket this call and his excitement would result in further guidance.  Before the call ended he mentioned this might be a product they could be interested in. With restraint, I told him I’d love to share more, and I would send an NDA by email so we could continue the conversation. He mentioned he felt like he had a good grasp of it as we hung up the phone. Which is when my stomach jumped in to my throat.

I sent him the NDA by email minutes later. My stomach would remain in my throat for 3 weeks of silence from this individual, even after e-mails voicing my concern and vulnerability. I eventually heard back. They refused to sign the NDA. It took months for me to stop beating myself up over that encounter. That conversation was my defining moment of weakness since launching this company. I let my guard down as my ego was being stroked. A mistake of an amateur which, to my credit, I actually was.

Years later I still monitor their new listings. They lost my respect and sparked my paranoia. And both of those results made me stronger and smarter.

Layer 1 summary: In any conversation that might discuss your pre-market product, preface it with a signed NDA - it is your right and no one will be offended.

Layer 2: Patents

There are 2 views on patents . View 1: It’s an expensive facade that, when push comes to shove, you don’t have the jurisdiction or finances to apply the patent when your IP is imposed upon.  View 2: It’s an expensive cloak that either intimidates others against violating your IP, or gives you the power to defend your IP when stepped upon - keeping in mind there’s a significant cost to the process of defense. After a lot of pondering, I decided that I owed it to myself to have a leg to stand on if and when someone decides they wanted to copy and benefit from my invention.

As a founder of a bootstrapped company (aka one without external capital - a term I’ ve come to know thanks to Shark Tank), I often have to decide if it’s more fruitful for me to put my money or my time in to something. In this case, it was for my sanity that I decided to hire a patent attorney to carry out this task. And as it turns out, even with a patent attorney this process requires an ample amount of a company’s time.

Now that I decided to apply for a patent, I had to educate myself on which patent to apply for . Provisional vs Non-Provisional. Design vs Utility. Are there other countries I wanted this patent to apply to? Those were the big 3 questions.

Patents can be distilled down to getting a priority date. Who thought of it first, if you will. A provisional is easiest, cheapest and quickest to complete - and allows you to be “patent-pending” earlier. This route gives you time to see whether this product is even successful enough to be worth a non-provisional patent. But it only lasts 12 months and it just gives you a priority date to reserve your spot in the front of the line should you choose to move forward with a non-provisional. A provisional patent does not actually protect you from anything, unless you eventually get that non-provisional patent approved.

In the case of our first product, Watch Your Mouth USB charger safety covers , I decided to start small with a provisional patent. With the success of the product we quickly realized applying for a non-provisional was necessary and worthwhile. In the case of our second product Shut Your Face outlet covers , we knew that this was another exciting innovation in definite need of protection. So we skipped the engagement and went straight to the marriage with a non-provisional patent application. If you know you’re going to need a non-provisional, you’ll save time and money jumping in head first.

In between the provisional phase came the decision to as to whether to extend the application internationally, called a PCT (Patent Cooperation Treaty).

A PCT can be applied for within 12 months of first filing a patent application. It allows you 30 months from the date of your original application, called “priority date”, for your application to be held in a priority position for foreign filing. Meaning according to 157 countries, you thought of it first. Nana nana boo boo. So in those 30 months, if anyone in these countries copies your product, you can go forward with your patent application there, and if granted, wave those cheaters goodbye.

And yes, cheaters are just what they are. Those who skip the whole “intellectual” part, the part that requires knowledge, creativity, time and money, and just sit in their mother’s basement in another country and reap the rewards of someone else’s work. Like that jerk who copied your answers on the final exam. Sorry Ben, not this time!

Where was I? Ah yes, PCT. It was a minimal investment to give me 18 more months to decide from what other countries I wanted intellectual property protection.

Here’s a spicy bit of information: Did you know that once you file your patent application, all of your product’s art (design drawings), and even design variations that you add to the art, are posted for all the public to see? Not long in to this process I received a message from a friend who noticed a similar concept of a product on Amazon . It had launched a good 6-8 months after ours had. I found it fascinating that their design was identical to one of our design variations in our patent application. This alarmed me. I then scrolled to find that they actually duplicated one of the listing slides that our art director had custom made for us. This infuriated me. With my vested paranoia, I assumed someone from the patent attorney office leaked it. When I spoke with our patent attorney, I learned about the publication (to the whole world) of our patent drawings and description, which included its variations.  I also learned I had no leg to stand on until I am granted a non-provisional patent. This was brand new information to me. And I suddenly felt incredibly vulnerable again.

There was one toe I had to rest upon, and that was the fact that they plagiarized our art work, which was copyrighted. Amazon was quick to move them in to violation (note: Amazon, unlike some other large online marketplaces, does a great job of defending registered brands.) This copycat “company” also did a crappy job of copying our product. Their material was cheap and un-researched for the properties required, and the details that made our product child-proof and adult-friendly were not controlled on their product. Oh yes, they also made it too small, so it was a choking hazard. A child safety product was a choking hazard! I was livid. It was a China-based company, so these things were not surprising. We are proudly designed and made in the USA. Not long after being in violation, the entire listing was removed as a result of poor ratings.

Now, as I write, this, I’m feeling the satisfaction of finally being granted a patent. It’s so shiny. And satisfying. And I feel hugged by the strong arm of the law.

Layer 2 summary: If it’s financially feasible, at the very least set yourself up with a priority date (aka provisional patent) that places you first in line for ownership of your intellectual property. Use that time to assess whether further protection is warranted.

Layer 3: Trademarks

In the process of designing the second version of our package, my packaging designer asked if I had trademarked the name of our company ‘Geddy’s Mom’ and the name of the product we were designing the package for, ‘Watch Your Mouth’.  I said “Crap! Give me a week.” And I got back to googling: “how to trademark a brand name” .

Again, as a small bootstrapped company, wherever I had the capacity to self-educate and complete a task, I did. And do. And not hiring someone to do my trademarks was an easy and cost-saving decision. It truly is a simple process. Patents, on the other hand… no.

My only failure in this layer was thanks to Ellen Degeneres . Apparently Watch Your Mouth is too similar of a product name to the strange salivary board game she made famous called Watch Ya Mouth.

We have had our company trademarked for just over 2 years now… and, embarrassingly, I didn’t realize that there’s a difference between ™ and ®. We were able to add the ™ to our brand name once the application for a trademark was in. ™, as it turns out, is simply proof of intent to trademark something. And applying for the trademark is proof. ®, meaning Registered Trademark, is the symbol to use once you have been granted said trademark. Not common knowledge, but simple knowledge. And as of recently, has been updated in our marketing.

Layer 3 summary: Trademark everything you can and do it early on. It’s cheap and easy.

The Sprinkles:

URL ownership, copyright website statements, logo marks, online content. Intellectual property protection can be a full time job. I like to think I scooped up what we needed to stay efficiently protected. I learned things the hard way, but sometimes I learned things the easy way, through the google and the one-on-one conversations with people who know more than me that were nice enough not to charge for their time.

I recently learned about the dark web, which is terrifying information for business owners (if you’d like to be frightened, talk to my friend Jason Daniels , protecting companies from the villains of the dark web on the daily).

I’m still thoroughly confused by the acronyms of business ownership and am ignorant to some of the details behind a lot of what I mentioned above.  IP protection is a never-ending process for companies like mine. So I’m sure there will be more layers, and I’m also sure there will be nightmares of the dark web from time to time.

I hope this piece helps make your IP protection process more organized and intentional than mine was.

Stay Safe (intellectually),

Sarah

 

Some advice from a new brand to a newer brand - and how established brands can serve the industry by talking to them.

 

I by no means belong here as a brand owner in the juvenile product industry. I am a retired fashion designer turned dentist. I have no background in engineering, no degree in business or marketing, and my family has no hands in this industry. The juvenile product industry and its associated safety organizations intimidated me. The rich history of research that built the platform of standards and regulations that guide product design and keep our children safe was, to me, a walled garden of knowledge to which few had access, and those few held the responsibility of protecting children from substandard products.

 

And there I was. A dentist with an idea. Unsure how to acquire the knowledge in that walled garden. Manufacturers refused my calls. Designers took my money but provided no guidance. Engineers had me deferring to them because of their extensive experience… as they often reminded me. But I had an idea. And I didn’t like being ignored. And I really didn’t like being underestimated. I had an idea, but I also had the confidence of someone outside her lane.

 

And if you’re a small company, chances are you feel similarly unwelcome. This article is here to welcome you, provide some perspective and some advice, and to remind the big companies why it is important that we, large and small, open our arms and the door to new people and new ideas.

 

What Led Me Here

Every small company has an interesting story as to what led them here. Most are parents who, through experience, have developed a much-needed or much-wanted product. What led me here is fear.

 

Early in my dental career, there was a traumatic case I studied - the first thing I knew about the case was that a child had been injured, and that injury resulted in a disfiguring scar that would extend from the corner of the child’s mouth. It was a difficult image to look at. I learned that the child had suffered an electrical injury by sucking on the end of a plugged-in USB charger.

 

Years later, this image jolted back into my mind as I ran to release a USB charger from the grip of my 10-month-old as he was attempting to put it in his mouth. I knew at that moment the trauma that it could have caused. And I soon had an idea as to how to prevent it.

 

 

Tearing Down the Wall (A How-To)

As any mom knows, if our goal is to protect our child, nothing and no one can stand in our way. Even with all these larger-than-life backs turned to me, even feeling as though the walled garden of knowledge was inaccessible.

 

The idea was simple. But as you likely know, nothing is simple about translating an idea into a product and bringing that product to market. Especially without supporting facts and supportive people.

 

So I went to work gaining the support, of both facts and people.

 

First came the research. Accessing Standards is expensive. I capitalize Standards because it became a sacred text to me. They should not be expensive, but they are. The requirements that define a product as safe should be readily available to anyone interested. Even if I had the budget to spend on this, I didn’t even know which Standards to purchase. The wall of the garden felt like it was made of gold.

 

My first call was to JPMA . They represented to me the parent of brands in the juvenile industry. I believed them to be the source of guidance, care and education. A recognizable symbol of respect and trust. We didn’t have a budget to become a JPMA member at this point, but I reached out to them anyway.

 

Not only did they respond but they also showed care and interest, as a parent would. And they guided me to resources like ASTM . So I called ASTM and gained insight into my search for Regulations and Standards. They further directed me to the CPSC . The CPSC was a wealth of information, instructing me how to access their data , and that of SaferProducts.gov and the NEISS database , all resources where I could develop my research. The CPSC went on to provide a very valuable statement about the dangers of USB chargers. With the confidence gained in my mission to make parents aware of this hazard, I approached similar outlets in the UK (Royal Society for the Prevention of Accidents) and Canada (Electrical Safety Authority) and received impactful responses from all of them. I now had statements from authorities in safety. I had my data compiled from government resources. All of this I did at no cost. 

 

I breached the wall and in doing so realized there was a door right in front of me… and it was unlocked… and it was free… I just had to knock.

 

The Barrier Between Conceptualization and Actualization 

 

Armed with facts and stats (and a mother’s conviction), I was now ready to raise awareness and get a safe product out there to mitigate the danger. But as it turns out, facts and stats (and conviction) were just the tip of the iceberg. I didn’t know how to launch a brand in this new retail environment where e-commerce is queen. I had so many questions, from the bigger ones like whether to approach brick-and-mortar retailers (and how!) to the smaller ones, like how to get UPC codes . These might seem like small details to those in the industry, but the lack of familiarity to someone looking in from the outside was daunting.

 

I needed advice. So I made a list of all my contacts - I reached out to anyone who was affiliated with retail or anyone who may have contacts in retail. And what I learned was that the vast majority wanted to share what they knew or connect me with someone who would. From a friend who knew a patent attorney, to a fashion designer who built a 500 million dollar brand. From the son of the manufacturer whose dad would not return my calls (but knew someone who would), to the CMO of a brand management powerhouse last valued at almost $13 billion. From a TikTok influencer mom hell-bent on advocating for better child safety regulations, to a man helping to make reforms and change the scope of government-regulated policies and acts in electrical safety. The list goes on.  Each conversation gave me valuable insight, another brick in the wall if you will, that allowed me to keep building on this vision. They became my potpourri of mentors who continue to support me.

 

Was asking for a conversation uncomfortable? Often, yes. But in health and in work, there’s rarely progression without discomfort. And conversation after conversation I realized a few things: I could do this. I was needed here. I belonged here.

 

Before I knew it I had a solid foundation of knowledge and structurally sound walls of support. Which led me to the resources that brought my concept to creation, and the creation to market. And what I learned was that building a company on such solid infrastructure would lead to good results. And eventually, I was in a position to become a member of JPMA and ASTM, which would provide me with even more resources to grow and participate.

 

How to Grow a Garden

I’m still new here. And those conversations continue. But now I often find myself on the other end of these chats. New small brand owners reaching out in their first steps to nourish their vision. And I always say “yes” to a conversation. I believe it’s passing forward what others have given me. And aside from sharing what has worked for me and my suggestions for budgeting wisely, the most important piece of advice I find myself giving them is to continue having these conversations. With anyone and everyone. Whether it’s another brick in the wall or another stone for your path or another member of your village. However you analogize it, it’s the support you need to effectively bring your idea to fruition.

 

To the established brands reading this: I urge you to take the call, respond to the email, and set aside even 15 minutes to give someone insight that allows them to move forward, feel included and contribute to this industry. To innovate and stay relevant, fresh perspective is necessary. The garden can not grow if it remains walled off.

 

What Unites Us. And Why I Do Belong Here.

At the end of the day, I think everyone in this juvenile industry pond, minnow or whale, can agree that what motivates us the most is hearing we've made a positive contribution to the life of a parent doing the best they can to keep their child healthy, happy, and safe. For me and my company Geddy’s Mom that means hearing from a mother that our product made it a little easier for her to parent while working from home. Or a dad who found his child sucking on his charger and now has one less concern by having Watch Your Mouth locked around it.

 

We found our place within the garden, our bearings in this community, and the support it has to offer. Which is helping to propel the launch of our second innovative product that we anticipate will have a large impact on child safety in homes and schools. We are looking forward to growing with you and nurturing the seeds of ideas of others.

 

Sarah Shell, DDS

Co-Founder & CEO

Geddy’s Mom

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Family businesses are quite common in the US and especially in the juvenile products industry. They can ultimately become extremely successful and very beneficial for both the founders and the extended family. But as a battle-worn veteran of the family business experience, I can tell you there are some unique challenges that need to be anticipated and managed carefully.

   

What is a family business?

Inc. Magazine defines it as “any business in which two or more family members are involved and the majority of ownership or control lies within a family.” 

 

Surprisingly, according to the U.S. Bureau of the Census, about 90 percent of American businesses are either family-owned or controlled, ranging in size from two-person partnerships to Fortune 500 corporations. Many have multiple family members working for the company. But, for reasons that may become obvious as you read this post, some actually prohibit or minimize family member employees even though members of a single family own the controlling shares.

 

What potential advantages do they enjoy?

Once properly established, a family business can enjoy several advantages over non-family companies. This can benefit not only family members inside and outside the company, but also non-family employees and overall company performance:

 

Clarity of mission and culture

There is more likely to be a sustained mission and well thought out culture that facilitates long-term financial success. It’s often based on the original founder’s vision (Walmart and Disney are notable examples).

Commitment to success

Family members are typically highly committed and loyal to the company providing an extra level of continuity and stability (i.e., they are unlikely to leave and go to work for the competition). This is especially important when economic times are tough.

Long-term perspective

Family leaders see their enterprise and wealth as gifts to later generations which fosters careful long-term planning as opposed to a short-term quarter-to-quarter focus.

Family wealth creation

A family business provides a mechanism for an entire extended family to prosper over an extended period of time.

 

 

What unique challenges do they need to deal with?

Only about 13% of family-owned businesses are passed down successfully to a third generation. Sometimes, as was the case for my company, the family just decides it’s the right time to sell. But often it’s because of one or more of the following issues:

 

Conflicts between family employees

Friction between employees is common in every company. But when family members inside a company are at odds, it can be much more disruptive and ill feelings can spread to other family members.

Differences of perspective between generations

Understandably, next generation successors are likely to have a different viewpoint from their older predecessors. Since family company leaders tend to stay around even if their role changes, this can be a source of ongoing tension and internal confusion.

 

Nepotism

If family connections take precedence over business considerations with respect to hiring decisions, compensation, roles, and other personnel matters, it can be demoralizing for both family and non-family employees and destructive to business performance.

 

Poor or no succession planning

Family business leaders can be particularly negligent when it comes to planning for leadership transitions. This could be from an inability to confront life’s realities, a reluctance to offend family members not chosen for leadership positions, or simply procrastination. The result can be chaos if a sudden death or disability catches the company unprepared.

 

Risk Aversion

A downside to the natural desire family companies have for financial stability and wealth preservation can be a reluctance to take reasonable, desirable strategic risks. Companies that aren’t changing as the world around them changes aren’t likely to survive long-term.

 

Loss of Objectivity

Continuity of leadership and culture is a positive. But there’s a risk that family leaders may become victims of “drinking their own Kool-Aid.” If insulated from outside viewpoints they can lose touch with reality and make serious strategic errors.

 

 

What are the best practices of successful family businesses?

Enlightened family companies put in place policies and processes to overcome or minimize these challenges as much as possible:

 

Prioritizing business success and profitability

To be successful, a business must be run as a business. Everyone needs to understand that it’s a meritocracy. That means that family and non-family employees should be absolutely treated alike. Compensation and promotions should be based on performance. The best person for the job should get the job and poor performers, even if family, should be encouraged to go elsewhere.

 

Maintaining an ongoing strategic planning process

It’s particularly important in a family business to have a well-designed process for periodically reassessing the internal and external environments, monitoring progress, and updating goals and strategies. Making this as transparent an exercise as possible also provides clarity about future plans to family and non-family employees and non-employee family shareholders.

Having a documented succession plan

Not having a well thought out succession plan in place has been the cause of demise for many a family company (just watch the HBO TV series to get a sense why). A plan needs to be in place long before it is needed, and reviewed and updated periodically as necessary. It should address how emergency fill-in situations will be handled as well as how future leaders will be selected and trained.

Establishing and enforcing core values

The attitudes and behaviors expected from employees and what’s not acceptable ought to be carefully spelled out. And adherence should be enforced evenly for both family and non-family employees. The company values should ideally be compatible with the family’s own personal values and could address things like teamwork, customer service, quality, continuous improvement, integrity, self-development, transparency, accountability, and community relations.

Leveraging outside expertise

Whether it is company lawyers, accountants, or a board of advisors, the involvement of respected, independent, non-family members can serve at least two purposes. First, by providing an outsider’s perspective, they can counter the tendency for company leadership to lose objectivity. This is particularly true regarding strategic or governance issues. Second, they can act as mediators to help resolve disputes between family employees without creating in-family resentment.  

Developing next generation talent

To accomplish the difficult task of sustaining a multi-generational family business, care must be taken to acquaint the next generation with the business early and assess the interest level and likely fit of potential future leaders. It’s also a good practice, if possible, for potential family employees to first work for another company for a year or two to gain perspective on what things are like in the “real world.”

 

 

Next Steps

Building a family business can be a very rewarding undertaking that can benefit an extended family for generations to come. But there are differences between family-owned and non-family businesses that require special management skills and practices beyond what is typically taught in business schools. 

 

As always, if you’d like more information or assistance regarding achieving your business and life goals or you just want someone to brainstorm, vent, or commiserate with, consider taking advantage of JPMA’s Executive Mentor Program by scheduling a free videoconference session with me. I’d enjoy meeting you and helping you any way I can. Check the JPMA web site for more information or contact Kim Libucki at klibucki@jpma.org.

 

Ron Sidman was the founder and CEO of The First Years, Inc., and former Vice Chairman of the JPMA Board of Directors. He is currently a business consulting resource for JPMA members and serves on the Advisory Board of the School of Entrepreneurship at Florida Gulf Coast University where he also mentors students. Ron is also the founder and CEO of Evolutionary Success, LLC, a life, and business coaching company.    

In follow up to Ron Sidman’s blog This is Us: The Role of Core Values in Your Company, it is particularly important this time of year to expand your philanthropic support. Not only does it benefit your community, but it also identifies your company as being a responsible public citizen and can improve company morale.

With more than 30% of annual giving happening in December, and 10% happening in the last three days of the year, we asked JPMA Cares Chair, Jennifer Mitchell, about how companies can boost their corporate giving strategy as we approach the largest giving time of year.


Q: Tell us more about yourself and your background.
Jennifer: I have 25 years in the consumer products business growing companies and brands. I believe we make a living by what we get. We make a life by what we give. Everyone has the power to give. Money is not the only commodity. We can give time, our expertise, our love, and our compassion.

Q: Why is philanthropy good for business?
Jennifer: Today’s consumers are always looking to link purchases with a purpose. They expect that the brands they support are doing good in the world and like it even better when their specific purchase can be linked to bettering the world and helping others (examples are Warby Parker with glasses, Tom’s Shoes, and Walgreens Get a Shot Give a Shot).

Q: What are some “must haves” for a corporate giving program?
Jennifer: The quick answer is: Transparency, urgency, and a clear explanation of the need and impact. Consider aligning your philanthropy with your brand and engage your employees in deciding where community dollars go. Not sure where to start? Ask yourself and your employees a few questions:

• Which neighborhoods, which populations, which issue areas, and which partners would be well-aligned targets for support? Which assets might be most impactful to use?
• What’s the approach?
• What are the desired outcomes?
• How does your company convert its philanthropic strategies into strategic philanthropy?

Q: How do you inspire or motivate others to give back?
Jennifer: Simply explain the need and give them a simple and easy way to join. It works even better when you can link your product with the impact, for example by buying certain baby products you help protect babies around the world. Find meaningful opportunities for employee volunteerism. Many people like to give their time to their communities and appreciate when their employers organize impactful service events and encourage participation by letting them serve during business hours.

Q: What is JPMA Cares doing for #GivingTuesday and how can JPMA member companies get involved?
Jennifer: JPMA Cares is committed to advancing the health and safety of babies and young children. Together with the United Nations Foundation, we hope to raise $500,000 to support UNICEF’s efforts to supply 5,000 children in the Horn of Africa with “ready-to-use therapeutic food”, or RUTF. At least 6 million children in the area face or are already suffering from acute malnutrition. In the coming months, it’s estimated that 1 person will die of hunger every 36 seconds, many of them vulnerable babies and children. The JPMA Cares Board of Directors has already approved a $10,000 donation from the foundation towards this goal.

JPMA members can help provide life-saving nutrition to children affected by this devastating food crisis in various ways:

1. Donate essential funds to provide relief to families in need (Thanks to a kind sponsor, 100% of your donation will go towards hunger relief)
2. Use our toolkit to encourage consumers and influencer partners to donate and spread the message
3. Encourage employees and colleagues to give with a matching donation or other incentive

To get involved with JPMA Cares through financial support, product donations, volunteering or more, please contact Meredith Birkhead at mbirkhead@jpmacares.org.

Whatever path your business takes to serve the community, the example it sets for civic engagement is an important one that will communicate brand value to customers and increase employee engagement while making the world a better place.

For 60 years, JPMA has admirably fulfilled its mission to represent and support the industry. As a member company CEO for 26 years, I benefited greatly from that support. And so for the past 15 years I've tried to pay that back by volunteering to write the JPMA blog and mentor member CEOs. Here's a summary of some of the major themes I've addressed. 

 

The Job of the CEO

 

 

Everyone who has ever been the person ultimately and solely responsible for the success of an organization knows how uniquely challenging the job is. The realization that you have no one else to blame except yourself when things go sideways can be an almost unbearable burden. And, as every CEO knows, things are going to go sideways, upside down, and even backwards at times. Your resilience and your ability to evolve will be frequently tested. However, for the right person, it's the only job you would ever want. Are you someone who wants to control your own destiny and has the self-confidence to succeed? Would you rather die falling on your own sword than someone else's? If so, this job is for you. And it's the comfort of having control as well as the potential recognition and rewards that make it all worthwhile. 

 

As I look back on what I've written, I can organize the guidance I've tried to deliver into what are known as the 4Ps that CEOs need to master:

• People
• Process
• Product
• Performance
  

 

So, hold onto your seats. Here's 15 years of "wisdom" condensed into one post. 

 

NOTE: For more information on any topic, clicking on the text links will take you to the relevant blog post. 

 

People: "Fostering mutual understanding"

In everything you do as a CEO you are dealing with people - employees, customers, suppliers, lawyers, investors, and so on. So it's unfortunate that understanding other people does not come naturally to us. We too often misinterpret or are oblivious to the needs and motivations of others and they in turn often misunderstand us! No wonder then that human behavior can be so mystifying. Your effectiveness as a CEO, to a great extent, hinges on the degree to which you learn how to understand what's going on in the minds of your stakeholders and partners and how best to communicate what's going on it yours. 

 

Hiring and retaining employees. You obviously want to hire the best possible employees and keep them on board. And your "mutual understanding" skills will be tested throughout the process of selecting the right ones in the first place, enabling them to be successful, and compensating them fairly. This is not unlike how an NFL football coach recruits players, prepares the team for the games, and makes sure rewards are commensurate with performance. Creating the right culture is also a powerful communication tool both for companies and sports teams since it establishes clear norms of behavior. And mutual understanding means not forgetting that your employees have lives outside the business too and may at times need accommodations to enable them to be successful on the job. 

 

Teamwork top to bottom and inside out. There's no substitute for the synergistic effect that teamwork can provide at every level of a company. Teams in which there is a mutual understanding and respect can balance the optimistic and pessimistic views, provide insights from different perspectives, and blend the expertise of multiple disciplines. In addition to internal teams, we all need to team up with partners and mentors outside the company that can provide expertise we don't have, open doors for us, open our eyes, or lend a sympathetic ear. Networking capability can be a huge asset for any CEO. 

 

Creating and keeping customers. This is done by improving the lives of your customers in some way. Immersing yourself in their lives enables you to uncover their unsatisfied needs, create products that meet those needs, make them aware of your products, make it easy for them to buy them, provide outstanding customer service, and convert them into brand advocates. Techniques like observation of behaviors and open-ended questions in 1:1 interviews can uncover otherwise hidden life-improving product opportunities. And the best CEOs don't just delegate this immersion responsibility. They get out of the office and at least periodically meet customers face to face themselves. 

 

An all-purpose people relations tool. Mastering the "forgotten" but super-powerful skill of negotiation will give you the ability to handle people issues of all types. Everything starts with taking the time and effort to thoroughly understand the other person's or group's needs and by understanding your own needs as well. You then work together to fine a win-win outcome. By the way, this can also be a very useful tool in your personal life. 

 

Trust. If there's one common critical component for successful relationships with people it's trust. Whether it's your employees, your customers, your investors, your suppliers, anyone you need to work with, the moment you stop being open and honest, you've undermined the relationship. 

 

Process: "The key to performance management"

 

Process thinking is a skill that enables you to achieve ever-increasing quality in repeating activities with relative ease. It's the antithesis of the fire-fighting approach found in disorganized companies. As W. Edwards Deming once said, "If you can't describe what you are doing as a process, you don't know what you are doing."

 

Business model design. A business is really one big process with inputs, internal operations, and outputs. Process thinking applies process design and continuous improvement principles to the entire business holistically (business model design) and to key functions within the business such as product development, marketing and sales, order fulfillment, and billing. A well-designed business model or process can optimize efficiency, minimize potential problems, and easily evolve as the environment changes. 

 

Enabling delegation. Designing and documenting operating processes enables you to get outstanding consistent performance from employees without standing over their shoulders. It gives you a way to transfer the company's best expertise and experience to even the newest employees. There is a caveat however. A poorly-designed process that's too rigid or too complex can backfire. 

 

Continuous improvement. Having a documented process design not only enables you to create a consistent quality output, it provides a way to make the process measurably better and better over time including improvements that can come from technological advances like AI. Yes, there are processes for process improvement!

 

Product: "Creating superior value"

 

The product is what will attract customers and generate revenue. But to be successful, it not only has to improve lives in some way but it must have clearly superior value versus competition for an adequate size target market. 

 

Competitive advantage. As obvious as what I just said sounds, it's often forgotten. CEOs can fall in love with their products and lose their objectivity. They may not make sure that assumptions about customer needs and product appeal are validated before going into production. To go back to "Process", this is a mistake that can be prevented by developing a robust new product development process. And if you're really good and/or lucky, you'll be able to develop at least some "wow" products that have so strong a competitive advantage that they sell themselves. 

 

Product-brand identity. Your product development can benefit from having a unique product-brand identity that is consistently reflected in all your product designs. What I'm referring to is a set of feature or benefit "must-haves" that are universally implemented across the product line. It might be one or more things like a contemporary design scheme, or unusually high safety standards, or provably superior in-use performance. Having this in place makes it much easier to consistently introduce new products with competitive advantages while also creating a distinctive company identity that builds trust in the minds of customers. 

 

Performance: "The bottom line"

Everything else is meaningless if your business doesn't generate relatively consistent profit over an extended period of time. This is the true test of a business model. Yes, a new business or new product may take some time to become profitable. But you can't afford to be too patient.

 

Culture and planning. The "your plan versus reality" diagram at the beginning of this post underscores the fact that consistent profitability is not going to be easy. Accept the fact that the world around you is going to change continuously and rapidly. You can be sure there will always be serious totally unexpected obstacles that come along but also incredible new potential opportunities. So what's needed is an innovation-supporting quick response culture supported by a long-term oriented planning and implementation process that keeps an ear to the ground and evolves as situations change and opportunities arise. 

 

Staying in touch. Particularly as a company grows, there's a real risk of the CEO becoming out of touch with what's going on inside the company and in the marketplace. This has been the downfall of many companies. It helps to think of yourself as the Chief Reality Officer. You'll need a well-designed ongoing information and feedback system that gives you visibility to not just key performance indicators but also the critical intangibles that don't show up in the numbers and could be precursors to problems down the road. And you'll need to get out of your office to do it. 

 

Financial management. Entrepreneurs and CEOs are sometimes strong on vision and creativity but weak on financial acumen. It's important to have at least a basic understanding of financial management and forecasting. You can't just leave the numbers totally to the accountants. Only you as the CEO have a broad enough and deep enough understanding of the company to judge the validity and flexibility of the various revenue and expense components as well as practical pricing options. 

 

Resource Management. One of the toughest pitfalls for CEOs to avoid is trying to do too much. The pressure to produce results often causes CEOs to go off in multiple directions at once hoping something will work. They may try to expand internationally when they only have scratched the surface in the US market or plunge into a new product category before reaching full potential with existing categories. All this likely does is reduce the change of success by diluting resources including the scarcest and most precious of all - time.

 

Holistic life view. 

 

Finally, it's crucial to recognize that your performance as a CEO and by connection your company's performance depend on more than your leadership and managerial skills. Your career is only one component of your life. True life happiness can only come by achieving not just business goals but by succeeding in all components of your life like maintaining your health and important family relationships. Just like the components of your business model, all your life components are inter-dependent. 

 

Next Steps

As always, if you’d like more information or assistance regarding achieving your business and life goals or you just want someone to brainstorm, vent, or commiserate with, consider taking advantage of JPMA’s Executive Mentor Program by scheduling a free videoconference session with me. I’d enjoy meeting you and helping you any way I can. Check the JPMA web site for more information or contact Reta Adler at radler@jpma.org.

 

Ron Sidman was the founder and CEO of The First Years, Inc. and former Vice Chairman of the JPMA Board of Directors. He is currently a business consulting resource for JPMA members and serves on the Advisory Board of the School of Entrepreneurship at Florida Gulf Coast University where he also mentors students. Ron is also the founder and CEO of Evolutionary Success, LLC, a life and business coaching company.