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Archive for the ‘change’ Category

From Brand Building to Brand Rescue: What to do when things go very wrong.

Back in late 2008, Valeria Maltoni posed a great question on Conversation Agent: What happens when brands die? It was a fascinating question, and one that frankly doesn’t get enough coverage. Even now, in the middle of a global recession that may have already cost us several: Saturn, Circuit City, and perhaps even Saab, for starters.

As companies continue to bleed jobs, sales, profits, liquidity and funding, perhaps this is as good a time as any to start discussing the  topic of… well, the specter of brand death: It’s causes, dynamics, mechanism, and outcomes. How do you plan for the death of a brand? How do you manage all of its painful final stages? How do you and your customers cope with something like that? And… to give you guys a ray of hope, can a dying brand be saved? And if so, how?

I know this series will be a bit of a departure for many of you: Conversations on the BrandBuilder blog usually focus on helping businesses improve their position and reach the next level in their evolution. What we are talking about here is a bit different. We’re looking at discussing difficult moments for any company: Continuity planning. Contingency planning. Emergency care. And potentially, if nothing can be done, last rites. (Sure, I want to say that every brand CAN be saved. And I believe that. But not every brand WILL be saved.

So the question, for once, and for the duration of this series won’t be “how do I make sure my company doesn’t end up in this situation,” but “now that we’re in trouble, how do we keep our sick company or brand from actually dying?”

As with humans, companies finding themselves headed for the emergency room require two basic things in order to turn themselves around and survive: Proper diagnosis, and proper care. And as with humans, most of the time, self-diagnosis and self medicating aren’t necessarily the wisest choices – especially when you’re dealing with a life-threatening problem rather than annual sniffles. In other words, when things start to get really bad, guess what: You’re going to need to seek professional care.

You’re going to need to call for help. But let’s not jump too far ahead of ourselves here. Before a company can ask for help, it has to accept reality:

Step 1: Preliminary Diagnosis.

Typically, symptoms of a dying brand may come in the form of customer attrition, declines in sales frequency or (volume per customer), eroding market share, a negative brand image (as reported through consumer reports, customer feedback and market studies), or even decreasing investor confidence.

But before this type of rescue/turnaround partnership can take place, managers of distressed brands need to come to terms with reality: Accepting that their brand or company is in trouble. Most companies ultimately fail NOT because they couldn’t be saved, but because their leadership fails to admit that they are in trouble and need help. This is the first step in the process.

How do you know when your company or brand is in trouble? Simple: When a preponderance of symptoms from the following list start popping up in your monthly or quarterly executive meetings. The short list:

  • Pricing pressures are eroding your market share (and you can’t seem to reverse the trend without lowering your prices).
  • Consumer preference data indicates that you are no longer either a contender for the top 1 or 2 choices in your product category.
  • Your quarterly net new customer count is either decreasing or stalled.
  • You are seriously contemplating eliminating 5-20% of your workforce to reduce costs.
  • Customer complaints about your brand are increasing. (Quality, service, delivery, etc.)
  • You have lost several of your best (historical) customers in the last 12 months.
  • Your competitors’ products are getting a lot of great press and attention. Yours are not.
  • Your best talent is starting to walk away.
  • You are having a very tough time recruiting talent.
  • You have cut costs by moving your call centers overseas, but now your customer service department is broken.
  • Despite spending an obscene amount of money on marketing, advertising or PR campaigns, your business barely matches your industry’s growth rate. (If you’re lucky.)
  • At least two out of the three cardinal measurements of your sales health (Frequency of sales, Reach of sales and average sales yield) show a flat or decreasing trend YoY.*

* Corporate lingo for those of you who haven’t had the pleasure of working on the client side: QoQ = Quarter over Quarter. YoY = Year over Year.

Assuming anyone in your company is actually keeping an eye on any of this. You would be surprised how many companies’ sales managers don’t measure F.R.Y. or monitor historical new customer trending, how many marketing managers have absolutely no idea what is being said about their brands or where, and how many HR managers have their hands tied even when they it becomes clear that they are not winning the talent war.

Some of this can be attributed to managerial denial, sure, but a lot of the blame can also be attributed to two other factors: a) a lack of training or sophistication when it comes to establishing adequate, actionable metrics, and/or b) a lack of resources when it comes to managing these metrics with an eye towards regular course correction.

In order to connect the dots, you have to know how to identify the dots to begin with.

Getting help isn’t about admitting defeat, it is about getting results.

In order to climb out of a hole, you have to realize that you are indeed in a hole to begin with… and that you probably need help getting out. If you can’t think of a solution on your own, it’s time to get someone who knows how to help you dig your way out.

This topic reminds me of the scene in the 1998 movie “The Edge” (“The Wild” for my European readers) in which Anthony Hopkins’ character gets stranded in the middle of the Alaskan wilderness with two companions after a terrible plane crash. Alone in the wild, the three pampered city guys find themselves in an against-all-odds survival situation. The question the three characters keep asking each other – and themselves – is simple: How in the world are we going to survive out here? With no rations, no weapons or tools, no winter gear and chased by a relentless man-eating Grizzly, the three men have to rely on each other to make it back to civilization. About mid-way through the story, as their situation seems hopeless, Anthony Hopkins’ character explains to his lone surviving companion something that is absolutely relevant to today’s discussion of brand survival:

– You know, I once read an interesting book which said that, uh, most people lost in the wilds, they, they die of shame.

– What?

– Yeah, see, they die of shame. “What did I do wrong? How could I have gotten myself into this?” And so they sit there and they… die. Because they didn’t do the one thing that would save their lives.

– And what is that, Charles?

The answer in the movie is “Thinking.” The answer in the case of of rescuing a brand is the same: Thinking. The one difference being that brands don’t die because they get lost in the wilderness. They die because their stewards create an imaginary wilderness around themselves. If you’re a CEO or CMO who hasn’t figured out how to rescue yourself or your brand by now, it’s time to break out the emergency radio or start sending smoke signals. If someone doesn’t come help you get back on track soon, your brand will die, along with your career, and the only reason will have been that you were too ashamed to admit that you needed help.

Yes, brands can and do die of shame as well.

Reaching out for help is a tough sale for a lot of managers and business leaders. It requires them to admit two things they would rather not: 1. This brand is in serious trouble, and 2. I can’t fix this on my own.

The trick is to realize that asking for help is not the same thing as admitting failure. Quite the contrary. Hiring someone to help you fix something for you – or with you – is no different from hiring the best copywriter, salesperson or office manager you can find.

Here’s the thing: We are all too happy to turn to specialists when we need help in every other area of our lives: If we are sick, we go to a doctor. If we have a tooth ache, we go to a dentist. If we are out of shape, we hire a personal trainer. If we have emotional problems, we hire a therapist. If our dog misbehaves, we hire a dog trainer. We all hire people who can help us improve our lives or who can somehow help us do things we can’t do on our own. Landscapers. Attorneys. Consultants. Mechanics. Dry-cleaners. Interior decorators. Plumbers. Electricians. Life coaches. Nutritionists. Masons. Carpenters. Party planners. Accountants. Financial planners. Repairmen. Whatever. Specialists are there to fill our knowledge and skill gaps. Helping you fix a brand in crisis is no different. It’s just that there isn’t a section in the yellow pages for “brand interventionists”.

Hint: Looking for a brand specialist or marketing firm in the yellow pages is a lot like looking for a job in the wanted ads. Unless you happen to live in 1986, you are looking in the wrong place.

Likewise, looking for traditional marketing firms and ad agencies to fill your needs when it comes to the relatively new problem of brand erosion in today’s complex business world can be a risky endeavor. Old tactics don’t necessarily address new problems – at least not on their own. The toolkit has evolved. If your new advisor’s “ideas” sound awfully familiar, it’s okay to get a second opinion. Even a third. We’ll go into what to look for tomorrow.

Okay, so my brand is failing. I have to do “something.” What are my options?

While many marketing firms and departments are great at building strong brands, many fall short of expectations. It happens. Sometimes, they get too close to the company or the product and lose their ability to look at the big picture. Sometimes, they have been doing the same things for so long that they have lost touch with their customers, with new marketing tools at their disposal, or with consumer trends and tastes. These things happen. It’s just part of doing business. If – not when – this happens to your company and you find yourself in trouble, you basically have four options at your disposal:

  1. Fire your CMO or Marketing department (pretty drastic and rarely the right solution, but common).
  2. Spend more money on the same tactics that have failed, but pretend that you are doing something different (the definition of insanity: Doing the same thing over and over again and expecting a different result each time). This may be the most common reaction of the four.
  3. Drastically cut your marketing budget. Marketing doesn’t work anyway, right? (You might as well update your resume while you’re at it. This is the worst possible thing you can do in times of crisis. Even worse than firing your CMO.)
  4. Seek professional help to assist your CMO. Not just from a firm or agency that will gladly take your money to take approach #2, but from a firm, agency or specialist who will actually focus on getting measurable and immediate results for you, AND educate you in the process. Rescuing a brand needs to be as much a learning experience for your organization as it is an intervention.

The correct answer, of course, is option #4.

I cannot stress this enough: Do not hire a specialist, firm or agency that will take option #2 to get you back on track. I have seen it happen too many times, and it is the easiest trap to fall into. This will solve nothing, and waste precious resources on your end. Don’t do it.

Tomorrow, we will go over the second step in your brand intervention: Hiring a practitioner or specialized firm, and letting them help you diagnose and clarify the problems facing your brand.

Part 3 of this series will focus on developing a treatment for your brand.

In Part 4, we will go over how to best administer the treatment, and we will wrap it all up in Part 5 with long term strategies to kill the possibility of a relapse.

Tune in tomorrow for Part 2: Methods for diagnosing and understanding what is killing your brand.

Cheers.

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You’re always in beta. Always. If you think you aren’t, you’re already falling behind and bleeding relevance.

What does being in Beta mean? It means being in perpetual test mode. It means constantly asking “how could I do this better,” even when this worked just fine. How can I listen better? How could I improve customer service? How can I make my billing process smoother? How could we improve the UI/UX of our websites? How can I engage my user community even better? How could this brochure have been better?

I know what you’re thinking: Poor kid. He’s terminally obsessive-compulsive. 😀 (Actually, I’m just compulsive, not obsessive, but that’s a topic for another day.)

The point is this: The moment you start thinking that you have found the perfect model, the second you start adopting a “let’s not change anything” mentality, you’re screwed. The “don’t fix it if it ain’t broke” saying I hear a lot in the South is may have been pretty good advice a hundred years ago, but it isn’t anymore. Not if you want your company to stay competitive. Not if you want to see your company grow. Not if you want to see chronic improvement in everything you do.

Check out today’s video if you haven’t already. And if it doesn’t launch for you, go watch it here. (Thanks, Viddler!)

Interestingly, the “you’re always in Beta” mindset that I am talking about today seriously reminds me of the mindset athletes and coaches get into when it comes to improving performance. Say you’re currently a 24:00 5K runner, and you want to relive your college glory days by running an 18:00 5K a year from now. How do you do it? Simple: By stressing your system one little bit at a time. By challenging your comfort zone with every run. Going from 24:00 to 23:55, then 23:50, then 23:45 for the same distance, and so on. Turning up the heat and the intensity for a few weeks, then giving your body a chance to adapt. To plateau. And then starting over with a new cycle of stress and adaptation followed by a rest period. During that time, you are constantly testing your boundaries, monitoring success and failure, learning what works and what doesn’t. (And yes, measuring your progress to know what works and what doesn’t.) Pretty basic stuff.

The alternative would be to keep running the same 5K route every day at the exact same speed, in the exact same way. What would happen? Well, you would become pretty good at running a 5K  in 24:00. Comfortable? Sure. But whatever happened to improvement? See where I am going with this?

Okay, now let’s complicate things a little bit:

As a triathlete, training and competing in what essentially amounts to three sports (swimming, cycling and running) adds some pretty substantial layers of complexity. Not only do I have to figure out how to train for three specific sports, but I have to figure out how to combine and integrate all three in a way that doesn’t lead to injury or burnout. I also have to fit all three in my already busy schedule. Then I have to consider how to time my training cycles to coincide with specific races. In addition, I have to incorporate changes in nutrition and hydration based on my workouts, my training mode, outside temperatures, etc. And if I get into my head that I am going to train for a marathon, half Ironman or full-on mac-daddy Ironman, all of these variables take on a level of complexity I can’t even begin to explain in one blog post. How much Gatorade should I drink per hour in 94 degree temperatures at 80% of my maximum heart rate? How many energy gels can I absorb per hour without getting sick to my stomach? What cadence should I adopt to sustain an average speed of 21mph for 112 miles? Only one way to find out: Test it.

And I haven’t even talked about gear. Will the improved aerodynamics gained from dropping my aerobars down 2 millimeters shave 20 seconds off my 40K time? Maybe… but as a result, will my upper body’s new angle offset my hip angle enough to reduce my power output or stress my hip flexors enough that I will start cramping up 5 miles into the run? How will I find out? There’s only one way: Getting out there and testing that theory. It’s clipboard and stopwatch time for the next six weeks.

Should I go with a disc wheel or a deep dish rim for my next race? How will I know which works better for me on a moderately hilly course in 15mph crosswinds? Only one way: I have to go test each wheel configuration on a variety of courses in completely different wind conditions. Then I’ll know what works best in specific course conditions.

Rear-mounted bottle-cages or frame-mounted? Aero helmet or regular helmet? Motion control shoes or racing flats? Test test test test test. You get the picture.

Call it an occupational benefit or a pre-existing condition, but being a triathlete kind of trains you to be in a perpetual Beta mindset. And it isn’t a stretch to jump from the world of competitive endurance sports to the world of business performance. Different application, but same principles and same basic methodology: Ask, test, observe, validate, learn, repeat.

But before you do all this – the testing, the experimentation, the analysis and learning and adaptation – you have to make a choice. You have to pick a camp. You have to decide whether you are satisfied with your business performance as it is today (“good enough” is good enough for you and your customers), or hungry for improvement.

There’s no right or wrong answer here. It doesn’t matter what camp you decide to align yourself with: The one happy with the way things are or the one looking to kick ass a little more each day. What matters is that your decision work for you. But let’s be clear about the impact that your choice will have on your business: Sticking with a “let’s not change anything” mindset will not earn you more customers, increase customer loyalty or generate more sales. Where you are today is exactly where you will be tomorrow. If you’re lucky. Eventually, perhaps not next week or next month or next year, but eventually, this mindset will seal your doom. A Beta mindset, however, will help you uncover ways to innovate, earn more customers, cut costs, increase customer and employee loyalty, improve product design and performance… You name it: Whatever the opportunity to improve, do do things better and smarter, may be, you will systematically uncover it in the same way that Apple, Nike, BMW, Cervelo, HBO, Michael Phelps, IDEO, Lance Armstrong, Comcast and Zappos have.

If you want your company to be best in class, to own a market or an industry, to be the trendsetter, the example to follow, the leader in a category, you must adopt a perpetual Beta mindset. You have to constantly stress your systems and processes. You have to turn every action into a test an look at every activity as an opportunity to experiment.You have to measure, analyze, learn, adapt and repeat the cycle over and over and over again.

Question everything.

Work harder than the next guy to build the best XYZ the world has ever seen, and then find ways to make it even better.

Perfection is a process, not a milestone.

Embrace a state of perpetual Beta.


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Rock, by Olivier Blanchard

“Individuals behave in a difficult manner because they have learned that doing so keeps others off balance and incapable of effective action. Worst of all, they appear immune to all the usual methods of
communication and persuasion designed to convince or help them change their ways.”
– Robert Bramson, Ph.D.

I will probably spend the rest of my life trying to figure out why some people are so vehemently opposed to change, progress or new ideas that they will exert more energy fighting them than embracing them. I am sorry to hear that so many of you are dealing with this. I don’t have a lot of advice to give you there, except this:

Far be it from me to suggest that every new idea and every bit of change is positive. Success, after all, is more often than not the result of countless failures – some calculated, others not. I completely understand how and why intelligent professionals would (and should) be suspicious of new ideas. Due diligence does play a significant role in effectively adopting new ideas and making them work. No question.

But some people resist change no matter what. These are not people who take the time to analyze a new idea or concept, run scenarios, try to figure out contingencies, look for lateral opportunities, and get around potential pitfalls along the way. These are just difficult people who enjoy being roadblocks.

Perhaps it makes them feel important: If they can’t actually be agents of change, at least they can be agents of un-change.

Maybe it’s all one big ego trip. A passive-aggressive power play.

Maybe it’s just that making sure that things don’t change defaults to predictability in their professional ecosystem, and predictability equals security. The less you change, the less you rock the boat, the safer you are.

Which makes sense when you realize that people who tend to become human roadblocks have made a career out of doing essentially nothing. (Doing something is what their staff is for.) There can only be security in doing nothing when the alternative (doing something) can be sold to senior management as a high-risk, low reward proposition.

Maybe it’s a little bit of everything: Laziness, insecurity, ego. You name it.
One thing is certain: You can’t teach an old dog new tricks. Human roadblocks are wired to be the way they are. No amount of logic, enthusiasm or even authority will change them. Or move them, for that matter.
Just like speed bumps, they are there to stay. Just like speed bumps, you have to slow down when you get close to one of them. And just like speed bumps, they’re pretty easy to roll over or get around once you have a clear view of where you want to go.
The thing about human roadblocks is that they don’t go anywhere. Come back in ten years, they’ll still be exactly where they are, doing the same damn thing. Maybe some of you can take some solace in that.
So my advice to you today is this: Don’t go mistaking speed bumps for 500 foot cliffs. They’re just speed bumps. Just keep doing what you are doing, and don’t let anyone stop you from getting the job done.
If you are clearly outnumbered, however… run like hell. ;D

Regardless of whom at work is giving you a rough time, have a great Monday.

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tribes-cover

The value of communities to the well-being and growth of businesses and organizations which serve them became crystal clear to me again today. (Not that it wasn’t already clear, but it’s important to revisit this sort of thing with real life examples as often as possible.)

I was chatting with a group of very experienced entrepreneurs about business organizations and networks when it struck me: In the B2B world, doing your part to ensure that your business community is healthy, informed, well connected and engaged is probably the most important thing you can do to foster the type of environment most suitable to create net new clients.

This has traditionally been the role of Chambers of Commerce, but we are starting to see that Social Media are giving rise to new types of business communities (Or as Seth might call them, business tribes.) This isn’t to say that the Chamber of Commerce model is dead or dying – far from it – but it is important to note that the dynamics of how and why business communities come to be are changing.

Ten years ago, Chambers of Commerce, professional organizations and country clubs were pretty much the only real viable option for businesses when it came to joining and leveraging premier business networks. Today, through the advent of Social Media, individuals and businesses have the ability to a) create their own business networks and communities, b) do so on their own terms, and c) do it all for free.

How can Chambers of Commerce remain healthy and relevant in this new age? Simple: Reconnect with the communities they serve. Shed the “business club” image, let the networking become landscape rather than focus, and engage their communities in a way that will truly elevate them. This is clearly a ‘leadership through service’ type of mission as opposed to a “build it and they will come” vision. Some organizations are already there, but many still haven’t made that transition.

Remember that thing about leadership in action being an irresistible draw? This is what organizations need to tap into. Don’t worry so much about membership growth, “relevance” and networking. Just get out there and make something happen. Act as the catalyst and the connector. Leverage networks to recruit volunteers, not members, and help them connect through projects they can really sink their teeth into. The self-serving rewards will come, but only if you don’t make them your focus.

In order for a Chamber of Commerce membership to make sense, a member business should have to commit to actually paying something forward (and I don’t mean annual membership dues). Ask yourself this: As a business owner, what can you give back to the business community? How can you help? How can you establish yourself as a unique resource? Do you have a skill? A bucket of knowledge or insight? A gift for teaching or motivating? Then put it to good use: Start something. Get a few of your fellow business owners together and start a program to bring hope and ideas to troubled public schools (those with high dropout rates). Tell kids about your success story. Let them know that owning a business isn’t something that is limited to “rich people.” Inspire them. Plant seeds. Lift them up. Mentor them if they ask you to. As a business community organizer, ask yourself how you can create these types of opportunities and actually generate results you and your partners in crime can be proud of. There’s a start.

Community leadership begins with a) being a catalyst for growth opportunities and b) acting as a connector. Some business organizations do so better than others, but the mere fact that many Chambers of Commerce no longer play that role in their communities tells me that something is missing in their focus. Perhaps some Chambers are suffering from an identity crisis. Perhaps they have served larger businesses too long, or haven’t focused enough on involving younger entrepreneurs and business owners. Perhaps they have pigeon-holed themselves and don’t know how to return to their small business roots. Sometimes, when companies and organizations have been doing the same thing in the same way with the same people for a very long time, they can lose touch with the world outside their four walls. It might not seem that way from within, but when most of the community you serve can’t tell you with clarity or certainty what your company or organization does for them, trust me: You aren’t connecting.

And if you’re only touching 10% of the businesses or potential customers in your community, you aren’t connecting either. It’s time to make a change.

First: Tactics and tools:

Digital networking: Any organization that is in the community building business must know how to wield social media tools like a marketing ninja. Period. This isn’t up for debate. It isn’t enough to have a website and a newsletter. If you don’t have active FaceBook and Linked-In groups, you’re already falling behind. (Emphasis on “active.” Just having a group and doing nothing with it = zero impact.) If you don’t have a community space (check out Ning.com for a simple platform), you’re also missing the boat. If you also aren’t leveraging Twitter – or haven’t yet invited some of your leaders to contribute to a community/Chamber blog or online publication – I have to ask… how exactly are you engaging with your business community?

Physical networking (yeah, the old fashioned kind): Organize, sponsor, host and manage events, but gear them to benefit non-members as much as members. Radical idea? Not really: Connecting your members is a great idea, but sooner or later, your network becomes an echo chamber. What you need to do is reach out, not pull in. As with most organization with hefty membership fees, there seems to be a wall that goes up between members and non-members once money is exchanged. Whether real or perceived, that wall doesn’t do anyone any good. Tear it down. This isn’t to say that you shouldn’t continue to offer members-only events and perks, but in order to grow, you also have to increase your focus on true community involvement. That’s where the magic is. That’s where leadership happens. That’s where relevance is built.

Offer mentor programs and pair members with non-members. Partner with the best of the best in particular fields – accounting, law, HR, advertising, IT, professional services – and create mini conferences to help members and non-members alike come together and learn things they otherwise might not. Create a small business assistance program through which distressed small business owners can receive emergency advice from a group of experienced business leaders. Create groups for specific verticals and industries – retail, foodservice, law firms, freelancers, manufacturers, etc. The possibilities are endless. (And if you are already doing all of these things, go back to the digital networking section of this post and ask yourself how you can leverage social media to promote your events and activities. You probably aren’t doing enough there.

If you aren’t doing these things yet, or aren’t doing them well, you are being outpaced by much smaller, younger, savvier organizations, and your brain trust is being recruited away. Once the brain trust starts to go, so do relevance, value, and of course, membership.

Second: Mindset.

These lessons are relevant to individual businesses as well: Stop thinking about your market as a giant phone book, and stop thinking of sales as “sales.” Become a connector. Become a facilitator. Reach out to people and companies in need, and offer to help. Make things happen. (You know… like bridge the gap between idea and execution?) Surround yourself with the best people and businesses and help them get even better at what they do. Use every means at your disposal to strengthen your neighborhood, your community, your industry, and help them all move forward. There’s your value.

It may seem silly to some, but the idea of “paying it forward” has its place in the business world, especially during tough economic times. Not just as an exercise on in good karma or for the sake of doing good deeds, but in strengthening the foundations of the community without whose support your business will fail. Just by connecting the right people, you can plant the seeds of a relationship that will keep one, two, perhaps three businesses afloat for another year – which may be all they need to get cooking again. Most of my clients come from referrals. Many of my friends’ clients are referrals as well. Without our network, without the constant drive to connect good people to other good people, without a taste for helping each other out, none of us would be as successful as we have been. Fact: Business is about relationships. Just like Social Media. Just like Word of Mouth marketing. Just like building strong brands. All of these things are interconnected.

Once you understand the vital connection that exists between you and your community, this kind of stuff becomes crystal clear.

If you haven’t done so already, click on Seth’s presentation (above) and take a few minutes to take it all in. Understanding Tribes, absorbing it, even, may be the most important thing you’ll do all year. It may even be the one thing that will save your business in this challenging economy.

If you haven’t joined your local Chamber of Commerce lately, perhaps you should. Only this time around, instead of asking what your Chamber can do for you, ask… well, you know. 😉

Leadership starts with you. Bouncing back from the troubled economy starts with you. (If we’ve learned anything these last few weeks, it’s that it sure as hell won’t start with either Wall Street, Detroit or Washington.) It’s all in your hands now. Our hands. And you know what? That’s the best economic news I’ve heard all year!

Have a great Tuesday, everyone. 😉

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