Since we discussed Board Governance last week I read this article on Not for Profit Boards and reimbursements. It is from a listserve: The NonProfit Times, January 30, 2006 edition.

Tips of the Week

Boards...Procedures for expense reimbursement

As with all members of organizations, the directors of boards have the right to reimbursement for expenses that have been incurred on behalf of the organization. Reimbursed expenses can include travel, lodging, telephone and postage.

Recouping out-of-pocket expenses can be a smooth transaction if handled in the proper manner, according to Calvin K. Clemons, author of the book The Perfect Board.

· The board should have a published statement explaining its reimbursement policy. The policy should be specific and detail exactly what expenses are covered. For example, airfare may be restricted to coach fare with advance purchase or there may be a set rate for mileage reimbursement. Some organizations replicate the rate set by the Internal Revenue Service while others set their own rate.

· Directors should sign a statement acknowledging that they have reviewed and understand the policy.

· The policy should provide instructions on how and when reimbursements are distributed. Receipts should be required for all expenses. Copies of vouchers, bills and statements should be avoided.

· Depending on the size of the organization, it is good to obtain an approval from some other person that is not on the board. It can include an assistant treasurer, staff accountant or controller.

· Have a standard organizational form that is easy to complete. Forms are available at most office supply stores and numerous Internet sources.

Here is a article from FORBES titled "Tapping Into The Blogosphere." The article talks about the importance of blogs as a marketing tool. The next step is determining how to make money on blogs. Right now blogs are an excellent tool to reach customers and receive feedback on products or services. Advertising on blogs will most likely be next. http://www.forbes.com/home/entrepreneurs/2006/01/24/google-apple-microsoft-cx_tt_0125straightup.html

Since we've been covering mergers and acquisitions through the text in Chapter 7, I thought I'd mention Disney's acquisition of Pixar. I was rather suprised to see that this acquisition occurred, based on the documented falling out between Disney and Pixar. With Pixar flourishing and Disney floundering in the production of animated movies over the past couple years, this move appears to be one to make up for Disney's recent decline of innovation.

Another angle to take when looking at this merger is that Steve Jobs, who is also the CEO of Apple, will be appointed to Disney's board of directors. Several weeks back, I recall reading an article that Apple made a deal with Disney that would allow Apple to distribute television shows of ABC through its IPod service. This acquisition further strengthens this partnership between the two organizations and possibly opens the doors for even more content release through this medium. However, it makes me wonder whether this move was self-serving of Steve Jobs moreso than for the benefit of Pixar. With the contract between Pixar and Disney nearly up, which would have been completed with the release of Cars early this year, would Pixar been better off to go off on its own or to even work with other studios such as Warner Brothers or Twentieth Century Fox? I think its something to think about.

It's the little things in a competitive environment that can provide the competitive advantage. Here's a short blog illustrating that notion. Posted January 24, 2006

By Jay Conrad Levinson
Author, "Guerrilla Marketing" series of books
Over 14 million sold; now in 41 languages
The best-selling marketing series in history

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ON-HOLD MARKETING WORKS

A typical business receives as many as 100 calls a day and puts callers on hold for over 17 hours each month. A whopping 70 percent of those calls are placed on hold for an average of 90 seconds. A depressingly large 90% of callers hang up within 40 second if "on hold" means dead silence. And 34 percent of those never call back.

On-hold marketing reduces hang-ups by 77 percent because instead of silence, callers hear marketing messages. It increases telephone on-hold time as much as 230 percent. A full 88 percent of callers say they prefer an on-hold message to music or silence. Best of all, 19 percent of callers buy something when they hear a powerful marketing message while on hold.

Jay Levinson and Amy Levinson

http://search.epnet.com/login.aspx?direct=true&db=bsh&an=19117740

The article "Stop Making Plans Start making Decisions" is similar to the LLR #2 article. The emphasis on this article is how strategic planning fails because it is usually an annual process that ties in with budget planning. http://search.epnet.com/login.aspx?direct=true&db=bsh&an=19117740In many companies strategic planning isn't about making decisions but is more of an annual process. Current processes are a barrier to truly strategic innovations. 66% of companies researched identifies planning as a periodic event. Not enough time is allocated to strategic decision making. Companies have incorporated continuous issues-focused decision making to improve the strategic process. Executives are receiving more input from stakeholders. Companies are using a strategy development process to drive decision making. The article also states that once a year planning averages 9 weeks which is not sufficient for strategic innovation.

A recent article on a listserve I belong to regarding direct mail.

20 STEPS TO BOOST DIRECT MAIL PROFITS

1. Decide exactly to whom you will be mailing. This is the first step and the most important step. Do this one wrong and nothing else will go right.

2. Decide which specific action you want your reader to take.

3. Create an outer envelope or other packaging for your mailing. Its primary goal is to get people to open it and study the contents.

4. Come up with an offer that your prospects can't possibly ignore.

5. Write a headline and P.S. that compel your prospect to read your letter.

6. Describe your offer in the most enticing terms possible.

7. Explain the results your offer will deliver, the main benefit it provides.

8. Explain why your offer makes so much sense to your prospect.

9. Give your prospect other key benefits of your offer.

10. Show that you know who your prospect is.

11. Describe the key features of what you are offering.

12. Make it irresistible to take action right now.

13. Tell your prospect the exact steps to take.

14. Set measurable goals.

15. Make a plan for your follow-up -- either mailing or phoning.

16. Track your results.

17. Improve results by increasing what's working, eliminating what's not.

18. Consider bolstering your direct mail with e-mail, fax, or Fedex.

19. Identify new markets you can tap.

20. Increase your sales and profits with better copywriting throughout.

Jay Levinson and Amy Levinson
Guerilla Marketing Weekly Intelligence listserve.

The article "Hoteliers search for ways to stand out from rivals" by Paritosh Bansal discusses how several big hotel chains plan to differentiate themselves from their competitors, as the title indicates. Instead of focusing on the amenities, Marriot, Hilton, and Sheraton all are launching new initiatives.

This article was thought to be interesting in that it shows the competitive rivalry occurring between these chains within the same market segment, which caters toward the upper quality/price hotel for the business traveler. In fear of being left behind, each hotel chain mentioned is taking action. It was also noted that they are all taking a different approach to accomplish the same objective - gain more market share and create brand loyalty amongst business travelers.

This article, in InformationWeek, talks about the shifting of advertising dollars being spent on search engine marketing, a 44% increase in 2005, making it a 5.75 Billion dollar segment.

It would seem that the ever-increasing mediums to get to customers are something that must be continually explored. How long until there is a software available to limit the display of this type of advertising? Could the government step in and allow people to register IP's to a do not-advertise list, to limit this type of "spam" advertising? These are all market forces that must be identified and addressed for the advertising industry.