A firm handshake, a welcoming smile, steady eye contact- all of these are the signs of a confident, competent leader, right? Well, maybe. Turns out, a strong handshake matters less than how you shake hands, smile wattage should depend on personal proximity, and steady eye contact can be read as confrontational in some settings. We’ve all heard that somewhere around 90% of communication is passed along by nonverbal cues- gestures, inflections, and body postures that are usually subconscious. What does your body language say about your management style?

Phrasing and “Energy” Projection

Phrasing is a term used by movement experts to describe when gestures and body movements align with the intentions of spoken words. Think of someone nodding his head up and down, but repeating a verbal “no”- that’s bad phrasing. In movement studies, the more calm, confident, worried, tense, etc. a person feels, the likelier it is these feelings will be projected in his or her body language.

This is good news and bad news for managers- the energy you feel is what’s projected. If you’re frantic, your movements will be tense, quick and agitated, if you’re calm, your gestures serene and soothing. Here are a few examples:

Posture

We all know that confident people stand up straight with shoulders back and head held high, but what about in a business setting, where you’re often sitting down, referencing materials, and conversing with multiple parties at once (sometimes via email and phone)? Typically, a head tilted down indicates negativity or disinterest- picking up a report to read it at eye level or just shifting your eye gaze is better.

Likewise, slumped shoulders connote defeat and unhappiness- taking a deep breath to lift your shoulders before a meeting can stave off these negative body movements. Your hands can also have a big impact on how your posture is perceived- displaying the thumbs (watch out for hands in pockets, balled-up fists, etc.), the physically strongest finger, is typically a sign of confident optimism and honesty- traits everyone hopes their manager possesses.

Handshakes

A firm handshake projects “outward” confidence only. Coupled with a palm-down grip (a “dominating” handshake), the person on the receiving end of the handshake may feel like you- quite literally- are trying to get the “upper hand” in the situation. Your grip should be natural, not forced. Don’t lean in too close- anywhere closer than 18 inches is considered the “intimate” zone of personal space.

A one-handed shake is good, but the “shake” should match your overall energy level. If you’re excited and talkative, a vigorous handshake is fine. Make sure it’s one handed when meeting someone for the first time- the two-handed “politician” handshake is often read as disingenuous or arrogant.

Facial Movements

Eye movements are one of the easiest body language cues to notice in business meetings. Traditionally, the eyes look to the right when someone is imagining or creating, and to the left when a person is remembering or recalling events. Looking to the right- even unintentionally- when explaining something can give a false impression of dishonesty. Try to look directly at the person you’re speaking with instead.

Finally, smile often. Yes, it’s cliché, but it’s true, real smiles (the kind using the whole face rather than just the mouth) release endorphins, causing a change in mood- and posture, too. Smiling naturally, and often, is the best thing you can do project the calm, confident management style your employees will respond to.

My route to work each morning takes me past what is left of the New York Flower District. Passing the palm trees, orchids, rhododendrons and azaleas that line 28th Street, I think about the day ahead- what needs to be done, what I’m looking forward to. The plants and flowers themselves remind me of the passing of the seasons: Halloween pumpkins are replaced by Thanksgiving wreaths and later Christmas trees, which make way for red Valentine’s day roses and then Easter lilies as winter thaws into spring. These transitions help keep me in the present, aware of the “now.” While it might not be the traditional silent, chanting meditation, my daily walk focuses my mind for the tasks ahead.

Thinking about what you see on your way to work can be a powerful starting place for focusing your vision for your business. Chances are, you became a business owner because you wanted to be in charge- setting the pace, the goals, and the mission for your company. Focus and clarity is so important, especially if you hope to be an effective leader.

Prepare yourself for your day by observing what’s around you. Whether you walk to a towering office building or just down the hall to your home workstation, be present- set the tone for your day, and clear your mind before getting to work. Ask yourself what you want to accomplish, and maintain this focus- don’t get bogged down by the little details or daily tasks that can chip away at your larger mission. Sometimes a little morning meditation is all it takes to put everything in perspective, allowing yourself the freedom to grow your business the way you want to.

Believe in you.

It depends how you do it.

Going to cocktail events and social hours, grabbing business cards and tossing yours around, brief handshakes while looking over that person’s shoulder for the door or the next person in the room.

Nope, that doesn’t work.

Connecting, helping others first, taking a sincere interest in them and their business, helping them see opportunities they may not see themselves.

That’s what I’m talking about.

And yes, it is work. Just like building any relationship, it requires commitment, follow up, and heart.

And it’s worth every minute.

Do you make networking a regular part of your business and marketing strategies?

Are you connecting in person (or over the phone if geography is a challenge) with people you meet online?

How are you contributing to your networking relationships? Just this morning, on a call with a colleague, I thumbed through my mental Rolodex for a connection that will help her grow her network and her business.

Easy, peasy, Japaneasy. It took about 5 minutes to make the connection and a warm introduction. She’s off and running, with gratitude, and I feel very good about it.

How’s that for honoring a “Givers Gain” philosophy?

How do you use networking in your business? How has it helped you? Tips to share?

n a recent case, California’s Appellate Court used the Responsible Corporate Officer Doctrine (“RCOD”) to hold officers personally liable for $2.5 million in environmental penalties. In People v. Roscoe (Cal. Ct. App. 2008, WL 5378254) the court held the corporate officers personally liable, without piercing the corporate veil, for civil violations.

This is a significant departure. The RCOD has been used before in California to hold responsible corporate officers personally liable for their company’s violations of strict liability public welfare statutes. In the past the doctrine was only used for criminal violations of state statutes. But now, as this new case indicates, California will use the RCOD for civil violations.

In the Roscoe case, Ned and John Roscoe owned and operated an underground storage tank in Galt, California through a corporation called the Customer Company. When their tank leaked 3,000 gallons of gasoline into the ground the Roscoe’s notified the Sacramento County authorities and hired an environmental consultant to take care of the remediation. When the cleanup did not happen quickly enough the county sued the Customer Company and the Roscoes. While the court did not find enough evidence to pierce the corporate veil, (the Roscoes had followed corporate formalities) it did use RCOD to hold the Roscoes personally liable for $2.5 million in civil penalties.

The Roscoe case illustrates the hazards of doing any sort of environmental related business in California. Regulators in California are free to seek huge cumulative penalties using their per-day and per-violation fine system. (Note that the Roscoes identified the problem to the county and hired someone to clean it up but it wasn’t fast enough for the regulators, thus the run up in fines.) And now the California courts are backing up the regulators by assessing personal liability against officers – even when the corporate formalities have been followed.

If you must do business in California involving any sort of environmental regulations be certain to have the systems in place to deal with such risks. More broadly, if you do any sort of business in California whereby administrative penalties may be assessed, be aware that California regulators and courts may someday seek to hold you personally liable as a responsible corporate officer. As if there weren’t already enough reasons to leave California…

Contact me to make sure you are protected.

Each week at Resource Nation, PR agencies and companies submit hundreds of articles to us for a chance to get published on our site. From advice to entrepreneurs on how to buy a phone system to updated news regarding text messaging laws, we see it all.

Recently, Bob O’Hara from O’Hara and Company sent us a letter. In this letter, he advises entrepreneurs how to form an exit strategy before actually calling it quits. In this economy, it’s a good read and one worth looking at:

AN OPEN LETTER TO BUSINESS OWNERS

Dear Business Owner:

We are in difficult economic times and many business owners are being faced with numerous challenges in this economy. So I am sure many of you are thinking, “This is not the time for me to be concerned about Exit Planning.” However, I believe this is exactly the time for you to create or address your Exit Strategy. I believe that planning is more vital than ever. You should not only plan for how to make it through the difficult times, but also evaluate how your strategies will help you grow and build sustainable value for the long term.

I’ve given much thought to the challenges that business owners are facing. I have several ideas about helping you and your company to stay on track to achieve your Exit Goals. Here are some ideas to consider:

• Increase business value by designing incentive plans for your management team that reward long-term employment and provide short-term incentives to increase your bottom line. Get your key employees on the same page as you and have them help you build business value.
• This may be the perfect time to acquire smaller, less adaptable, less capitalized or less well-managed competitors. Certainly, this is a buyer’s market and there are ways to help minimize your financial exposure.
• The time to preserve the value of your most important asset – your company – is now.  Look at how you can minimize tax exposure and how to protect your company from unexpected risks, for example, the departure of a key employee. Look at ways to protect your trade secrets, customer lists, vendor relationships and referral sources.
• If you are planning on selling your business to a third party, there may not be many more peaks in the mergers and acquisition market place before you reach your desired retirement age. So it is beneficial to plan for how you will have your business positioned and ready for sale when the economy rebounds. Just like any stock, you want to sell your business when it is growing and on the upside of the growth curve.
• If you have planned an ownership transfer to your children, look at the timetable. Assuming your children are nearing the appropriate age and experience, now may be the perfect time to begin that transfer. With a reduced business value due to current economic conditions, it may be financially easier for you to transfer the Company to your children and achieve your objectives.
• If transferring your Company to your employees is your preferred exit route, this may be the optimal time to begin that transfer. With a potentially lower business value, if you decide to bonus your key employees stock of the Company, you can do so with minimal effect on cash flow and a lower tax impact on your key employees. You can bonus stock, still retain control and simultaneously motivate key employees to stay with the Company.
• Make sure your contingency plan is up-to-date. This is the perfect time to review what plans you have in place to insure the business can succeed without you if the unexpected was to happen.
• Prepare a comprehensive personal financial plan, evaluate the current state of your personal affairs and determine what you need to do to secure your personal financial future.

Don’t stand impassively on the sidelines during a time of economic volatility. Unlike the “average” investor, you are not limited to the single strategy of pulling dwindling assets out of themarket. Even if the general economy suffers, your business profitability need not. Look at your alternatives and get to work.

Best wishes for continued success!

Bob O’Hara

Quick question: When you hear the phrase “Board of Directors” do you think of Fortune 500, Mega-Sized, enormous conference table companies?

Show of hands?

It sounds impressive to have a Board supporting you. To provide direction, guidance and support to you and your business. But that’s just for the big guys, right?

What if you - small business entrepreneur - could have your own Board of Directors, AND stay the size you are?  Receive all the support and benefits the big guys do without the “bigness” of the big guys?

Enter the “Virtual” Board of Directors.

Any business can have a Board of Directors - a set of respected professionals who serve in an advisory capacity for your business. Yep, even you.

Why should you have a Board of Directors?

1. Reality Checks - Board members can bring your feet back to the ground wen you are flailing, unfocused or scattered (it happens to the best of us). They’ll keep you on track so you don’t lose traction.
2. New Insights - When Board members from different backgrounds, have different experiences.  They’ve seen different successes and failures, and have different ideas you can use in your business.
3. Provides Stability - Financial folks like when small businesses have support from seasoned professionals. It gives them confidence knowing you’re not out there on your own.

You may be wondering “why would somebody do that for me? Who am I to ask that of another professional?”

First things first….who are you not to ask that of another professional? You’re no less important than any other entrepreneur.

So, why would they agree to be on your Board?

1. Networking - being on a Board allows fellow members networking opportunities with other professionals. Make your Board appealing to other members so they’ll want to join you, and they will also benefit from the experience.
2. Leadership Experience - Professionals are continutally seeking leadership opportunities. Boards are great ways to do that.
3. Honor - What an honor to be asked to be on a Board, particularly by a business owner who is taking the initiative to take their business to the next level!

What types of industries should the professionals on your board represent? The usual suspects are industries like finance, law and human resources. Don’t forget about asking other successful entrepreneurs who have navigated the waters and make it (in non competing industries, of course). They have great insights on how to make it through the tough times, how to grow, and how to make the most of the high times.

How can a Board serve your business?

President-Elect Obama:
As you take power for what is the most remarkable statement our country has made in ages and having run the best campaign ever, we know you are taking over what will be the worst job in the world.

• We want your optimism to be contagious and your can-do-attitude to inspire us
• We are terrified you will tax us and hold us up as scapegoats, while we are survivors
• We are hopeful you will see us as family leaders not large corporate thieves
• We are one-third democrats, one-third republicans and one-third independents*
• We love your dreaming but worry we are not included in those dreams
• We care little about NAFTA but worry more about being virtual
• We want to give people jobs but aren’t sure we can carry them
• We believe we give service to society by virtue of the value we provide to customers, the people we hire and the young that we train
• Lastly, it’s always been lonesome as a small business owner and we have no expectations that government will help us. We love our country and want to see it, and you, succeed.

While the entire world is holding their breath as to what an Obama victory really means to them, fear, uncertainty and doubt have already gripped most small business owners. From losing or maxing out their credit lines, to fearing that consumer demand will simply dry up, entrepreneurship is in upheaval. On one hand, it is still the American dream for so many; on the other, it is a grim reality for so many who depend on it.

Regardless of their industry, tenure, or age, never before have most business owners been so apprehensive about their futures. Why? Because, all the institutions and resources they count on—particularly banks, big customers, skilled and available workers, and economic stability—are all in disarray. Whether they voted for Obama, believing that a recovering middle class will lift all small business ships, or against him, fearful that the new burden of regulation, health care costs and increased taxes will torpedo their plans, business owners are downright scared. And when entrepreneurs are scared they become inactive or at the very least stop expanding. Why? Because owning a small business is all about:

• Being confident that you know your threats
• Knowing how to avoid and exploit your threats
• Confidently spending the resources to do so

Why are business owners so nervous? Because for the first time in decades, they don’t know what to do. Nothing has prepared them to cope and face what is upon them. Wondering if they will have a working business at all has replace traditional “E Myth” goals of “working on one’s business” as opposed to working “in one’s business.” The new threats are not the same as the old threats and knowing how to even respond, let alone find the courage to invest the needed time, money and energy in the correct responses, is beyond the “pay grade” of most owners.

But before we can address these concerns, how did entrepreneurship get to this point? Since 1980, business ownership has grown from a wry dream for most to a total investment for so many. From under ten million in the 1980s to some 25 million† today, nearly ten percent of Americans depend directly on their own businesses for financial security and another ten to thirty percent are customers, vendors, employees or investors of small business. From being seen as outsiders or rebels, the small business owner has become in many ways the focal point of the American Dream. Large corporations spend billions marketing to them. This last election created “Joe the Plumber” and the small business owner’s laments of paying too much in taxes, having bad health care options and struggling for visibility and respect are daily themes our news media covers ad nauseam.

As importantly, the entrepreneurial movement has produced a new lifestyle and set of values. Magazines, such as Fast Company and INC. along with owners-only support groups such as EO and VISTAGE have sprung up to enhance the entrepreneurial way of business and personal life. Entrepreneurship is so ingrained in our society that it has outgrown the stereotypes of being part of one political party. A 2007 Fortune Zogby Poll of business owners reported that 37% are registered Republicans, 35% are registered Democrats and the remaining are Independents.

While the novelty of entrepreneurship has worn off, today’s business owner remains as much a lone wolf as ever. All of the 20% who survive their first five years† do so by quickly learning to sell, manage cash, find and keep good people and create satisfied customers. But over the last few years, multiple forces in the economy and society in general are converging into a perfect storm and threatening both established business owners as well as the dreams of emerging ones.

So in closing, President-Elect Obama, we as business owners are fearful of what you may do to us and the harm you can bring to our small businesses yet we wait with bated breath to see if you can deliver your promises and help us continue our American dream of successful entrepreneurship because “Yes, we can.”

About Andy Birol: Based on interviewing over 5,000 businesses Andy Birol authored The Five Catalysts of Seven Figure Growth (CareerPress, 2006), has advised over 400 business owners.  By focusing on the role of the owner as the “fuel” that drives a firm, Andy speaks to hundreds of groups of entrepreneurs on six continents, helping thousands to clarify or discover their Best and Highest Use^® (BHU) and achieve sustained and profitable growth.  Andy holds an MBA from Northwestern’s Kellogg School and a BSBA summa cum laude from Boston University’s School of Management.  His website is www.andybirol.com and his blog is www.birolsblog.com.

Articles by Birol Growth Consulting are © copyrighted and all rights are reserved. However, articles may be reprinted with prior written consent if attribution is included as follows:

Submitted by Olivia Goodkin, a partner at Rutter Hobbs & Davidoff in Los Angeles. She is a specialist in labor and employment, business litigation and dispute resolution and intellectual property law.

On June 18, 2008, an important case regarding employees’ privacy in the workplace was decided by the Ninth Circuit Court of Appeals. The case, Quon v. Arch Wireless Operating Company, looked at whether the Ontario Police Department had violated an employee’s right to privacy when supervisors viewed the contents of his text messages that were transmitted using Department pagers.

According to the court, the Department’s policies regarding the monitoring of e-mail, computer and text messages were overridden once a supervisor told employees their text messages would be audited if they failed to pay for overages on the text-message plan. Because the employee in the case had paid all overages resulting from his use of pager text messages, the review of the employee’s text messages was deemed illegal.

Inside the Case: Looking at the Ontario Police Department’s Policies

The Ontario Police Department issued a pager with text-messaging capabilities to Sergeant Jeff Quon. He acknowledged the Department’s “Computer Usage, Internet and E-Mail” policy, which explained that the City of Ontario had the right to monitor and log all network activity, including e-mail and Internet use.  The policy also stated that users should have no expectation of privacy in their communications when using these forms of communication.

Later, the Department announced at a staff meeting that the policies also applied to using pagers. Under the City’s contract with Arch Wireless Operating Company (“Arch”), the company providing the paging service, each pager was allotted 25,000 characters. The City was required to pay any overage charges.

The Oral “Amendment” to the Written Computer, Internet and E-Mail Policy

Quon’s supervising officer, Lieutenant Duke, told him it was not his intent to audit employees’ text messages for the purpose of seeing whether or not the texts were personal messages. He said he would only conduct an audit if Quon did not pay for the overages. Quon paid the City for overages each time they occurred.

When several officers went over their 25,000 character limit, Lieutenant Duke was ordered to obtain the transcripts to see if the messages were personal or business-related. Arch provided the transcripts, which included personal messages, including several from Quon to his wife.

Quon and others sued Arch for divulging the transcripts of their text messages, and also sued the Ontario Police Department and some of its supervisors.

The Right to Privacy and Fourth Amendment Issues

The Fourth Amendment to the U.S. Constitution protects the right “of the people” to be secure in their “persons, houses, papers, and effects, against unreasonable searches and seizures.” Quon and others involved sued under this Amendment, alleging that a public entity (the Ontario Police Department) obtained the text messaging transcripts improperly.

The court said that Quon’s expectation of privacy “turns on the Department’s policies regarding privacy in his text messages.”  The court pointed out that if the policies of the Department were reflected only in the written Computer, Internet and E-mail policy, with the oral amendment applying to text messages, then the case would end there. Those polices clearly indicated that Quon should have no expectation of privacy in using those resources.

However, once Lieutenant Duke told Quon and the staff that he wouldn’t audit their text messages as long as they paid for any overages, the policies were in effect amended, and created an expectation of privacy.  Since Quon paid for overages as they occurred, it was reasonable for him to expect his messages to remain private.

Because the Quon case involved a Fourth Amendment claim, which applies when there is a “state” or government action, the court decided there was a violation of the Fourth Amendment because the search was unreasonable.

Why the Quon Case Applies to Your Private Company

An employee’s expectation of privacy can apply to any case involving a California employer – whether public or private. The key issue for California employers is that a verbal statement made by a supervisor can override the written policies of a company. In this case, Lieutenant Duke’s assurance that he would not review text messages, except in the limited situations that did not apply to the Quon case, superseded the written policies that specifically restricted employees’ rights of privacy.

What Should Employers Do Now?

Employers must train supervisors regarding policies and procedures. It is not enough to have written policies that define privacy rights. Review written Internet, computer, e-mail, cell phone and other electronic usage policies to see if they reflect company needs. Then, discuss the policies with all company supervisors to ensure that they understand the repercussions of making exceptions to those policies.

We’ve all heard it - over and over. Recession, job loss, tough times.

Does this remind anybody else of the old story about Chicken Little (”the sky is falling”)?

I am a fierce believer that what we think about comes about. If we don’t want financial struggles, despair and “oh no” experiences, why do we spend so much of our time thinking about them?

How is it that some businesses see growth - even record growth - during these “slow” times?

They get back to basics. What are they?

1. They focus on what they do best, and they make the most of it. When did it become admirable to be “Jack of all Trades and master of none”?  Being a one-stop shop may seem like a convenient way to service your customer, and it certainly can be. It also can confuse potential customers into wondering what it exactly is that you do. The same pattern holds for job seekers during these times - employers hire specialists more often than generalists. Why? Because they know exactly what they are getting rather than investing in a candidate and not being certain of what they will get. Be specific. What do you really do? Are you sure?
2. They foster and nurture their strongest networks and referral sources. We all do business with people we know, like and trust. Connect with individuals who believe in the “Givers Gain” philosophy. Who in your circle are your best referral sources? Who has referred business to you in the past? How can you help them grow their business? Help them, and your “know, like and trust” factor will grow exponentially.
3. They dig in and get to it. It’s so easy to wait for things to come to us. Although I do subscribe to the idea of “astral advertising” (aka The Law of Attraction), the perfect client isn’t going to simply appear at our office door with a bucket of money to toss into your lap. Put the right ideas out there (remember, what we think about comes about…) and get to work. Put yourself in situations where you will meet the people you most want to connect with. Be strategic with your time and efforts. This is not about being desparate and begging for clients. You offer a great product or service to your clients, and you will help them (grow their business, save time, save money, insert other benefit here). Don’t be afraid to beat your own drum - that’s how people will hear you.

Hurricanes, floods, lawsuits, financial meltdowns, earthquakes…I’ve handled them all as a PR professional. And now, as the nation deals with the aftermath of Hurricane Ike and the Wall Street meltdown, we not only need to pray for those affected, but we should also take the time to ensure we’re prepared if something like this happens to us.

Handling a crisis as a public relations professional takes intelligence, grit, experience, and sometimes a general ability to be at the right place at the right time. You want your employees and customers to know that you’re in control of the situation. That means, wherever the conflict, that’s where you’re at…being a physical presence at the scene, ready to handle the media and customers.

When the island of Kauai was hit by a horrific hurricane some time ago, my company had a great number of customers and employees affected. Within 48 hours of the eye hitting landfall, I was on an emergency cargo plane packed with food rations and water — enough to last me for four to seven days. My mission was to ensure our customers knew that if they needed help, our company was ready and prepared.

When I arrived at the island airport, I was concerned because of the long lines of people waiting to get OFF the island. Rental cars were just parked and abandoned on the curb. Nothing looked normal and in fact, the scene looked like it was straight out of a war zone.

The first thing I did was nab a rental car that was sitting at the curb with its keys still in the ignition. From there, I ventured off to find a hotel for which I supposedly had a reservation. I found the hotel in the dark. I went to the lobby to check in. Even though there was no running water or electricity, the hotel actually had a room for me. No matter the conditions, I was there.

You see, to handle an extreme disaster, it’s important to be where the media is. The day after my arrival, I struck up a relationship with the local radio station that was running regular island updates to help keep its listeners updated on the island’s situation. They gave me regular access to airtime so that I could inform my customers about what they should do and what our company was doing to help them. In addition, I tracked down CNN, the Los Angeles Times and a San Francisco radio station, all within 48 hours of my arrival, to show them how our organization was responding to the incident. Despite the conditions and perilous situation, we managed to make our presence known.

The lesson here is not so much on how to deal with the elements…but how important it is to be at the disaster site as soon as it happens. That’s because all of your stakeholders – employees, customers, partners, and vendors — need to be assured that no matter the circumstances, your company is a partner with them…in good times and in bad.

There’s an old saying that if you want people to know that you care, tell them…and if necessary, use words. Being at “ground zero” speaks volumes about your company’s commitment. That kind of message is priceless.