http://exemplarlaw.ehclients.com/index.php/category/28/ en emelia@exemplarcompanies.com Copyright 2012 2012-02-22T15:22:07+00:00 http://www.exemplarcompanies.com/site/false_ad_suit_can_proceed_versus_groupon/ http://www.exemplarcompanies.com/site/false_ad_suit_can_proceed_versus_groupon/#When:01:27:39Z Word came today that a lawsuit by some California tour companies against Groupon alleging false advertising will be allowed to proceed in federal court after Groupon tried to have the case dismissed. By Gerrit Betz  Word came today that a lawsuit by some California tour companies against Groupon alleging false advertising will be allowed to proceed in federal court after Groupon tried to have the case dismissed. For those of you looking for more detail, here’s the full complaint.  I’ll cherry-pick one example: Groupon bought up Google AdWords for things like "Alcatraz Tours" and then embellished them with text like "do Alcatraz at 50-90% off!" But according to the tour groups, if you clicked hoping to fulfill your dream of doing Alcatraz at 90% off, you would be met instead with an offer for acting lessons.  Well. Sooner or later, a court will decide whether this was a Bait & Switch tactic from a legal perspective.  But can we all agree upfront that this shotgun approach is a bad business strategy? By inviting customers where there’s nothing for them, Groupon is likely to turn more people off than it turns into budding actors. Business 2011-08-26T01:27:39+00:00 http://www.exemplarcompanies.com/site/small_business_administrations_new_women-owned_small_business_federal_contr/ http://www.exemplarcompanies.com/site/small_business_administrations_new_women-owned_small_business_federal_contr/#When:21:19:59Z Female business owners have the opportunity to significantly expand their businesses by taking advantage of the Small Business Administration’s new Women-Owned Small Business Federal Contract Program. Female business owners have the opportunity to significantly expand their businesses by taking advantage of the Small Business Administration’s new Women-Owned Small Business Federal Contract Program. By John Bateman Program Overview The Program, which became effective April 1, 2011, is aimed at expanding federal contracting opportunities for women-owned small businesses (WOSBs) and economically disadvantaged women-owned small businesses (EDWOSBs).  Specifically, the program mandates that federal government contracting officers set aside certain federal contracts for eligible WOSBs and EDWOSBs in industry sectors in which women-owned businesses are traditionally underrepresented.  The SBA has identified 83 four-digit North American Industry Classification Systems (NAICS) codes (and 300 NAICS six-digit sub-codes) that are eligible under the program. How the Program Works The process of setting aside federal contracts for WSOBs and EDWOSBs is substantially the same.  In both cases, the federal contracting officer is authorized to set aside a contract for WOSBs or EDWOSBs if certain criteria are met.  First, the contracting officer will determine if the contract is for a line of business that falls under one of the eligible NAICS codes as discussed above.  If so, the contracting officer will then determine if the anticipated value of the federal contract is less than $6.5 million if the contract is for manufacturing or less than $4 million for any other contract.  If these requirements are met, and the contracting officer has a reasonable expectation that the contract can be awarded at a fair and reasonable price and that at least two WOSBs or EDWOSBs will submit bids for the contract, then he may set aside the contract for WOSBs or EDWOSBs. Eligibility Generally, in order to be eligible for participation in the program as a WOSB, a business must be at least 51% unconditionally and directly owned and controlled by one or more women who hold American citizenship.  In addition, a woman must also manage the day-to-day operations of the business, make long-term plans and decisions for the business, work at the business full-time during normal working hours, and be the highest ranking officer in the business. To be eligible to participate in the program as an EDWOSB, an interested company must generally be at least 51% owned and controlled by an “economically disadvantaged” woman (or women).  A woman is considered to be “economically disadvantaged” if she has a personal net worth of less than $750,000, her annual adjusted gross income averaged less than $350,000 for the three years prior to pursuing certification, and the fair market value of her assets is less than $6 million.  In addition to the ownership and control requirements, an economically disadvantaged woman must also manage the company’s day-to-day operations, make long-term decisions for the business, work at the business full-time during normal working hours, and be the highest ranking officer in the company. Certification In addition to meeting the eligibility requirements discussed above, an interested business must also be certified as either a WOSB or EDWOSB.  Certification can be obtained either through self-certification or through third party certification.  Currently, however, the only method of certification available to interested businesses is self-certification, as the SBA remains in the process of approving third party certification agencies. How to Get Started This program represents a tremendous opportunity for WOSBs and EDWOSBs to significantly grow their businesses through federal contracting.  With the SBA planning to award the bulk of federal contracts during the fourth quarter of FY 2011, there is still time for interested businesses to get certified and compete for these contracts.  Interested business owners should consult the program’s website or contact an Exemplar Team Member for more information. General, Business, News 2011-06-16T21:19:59+00:00 http://www.exemplarcompanies.com/site/alternatives_to_the_billable_hour_work_say_aba_panelists/ http://www.exemplarcompanies.com/site/alternatives_to_the_billable_hour_work_say_aba_panelists/#When:22:47:14Z Clients have a general mistrust of hourly billing, said panelist Christopher Marston, whose firm, Exemplar Companies Inc., has successfully implemented a value-pricing model.  Fees there are based on the value of the service provided to the client, rather than the time expended to complete the service. By Ramon Jimenez, Esq I have been saying this for two years now.  Clients have a general mistrust of hourly billing, said panelist Christopher Marston, whose firm, Exemplar Companies Inc., has successfully implemented a value-pricing model.  Fees there are based on the value of the service provided to the client, rather than the time expended to complete the service. According to Marston, this value-based approach to pricing is more inline with what clients want. While lawyers think in terms of increments of time, clients think in terms of value. “People are buying outcomes and solutions. They are not buying your time,” he said. Moreover, Marston believes the traditional time-based model of billing is flawed. The billable hour method is based on a perceived direct relationship between labor and the value, he explains. In other words, the more time a task takes, the more valuable it must be to the client. But—“If that were the case, the piece of coal you found next to a diamond would have the exact same value.” Marston also points out that the billable-hour method limits profits. “On every six minute increment of time, you’re making the same margin. The worst part of it is that you’ll never make [a] higher margin. You’ll always make a lower margin because clients can always cut your fees. They’ll never give you more. Billable hours cap that margin.” Exemplar’s value-based model starts with understanding the resources involved with each task at hand and determining a reserve price for those tasks. The reserve serves as the pricing floor. The firm then considers the value it adds to the transaction to determine its price. Understanding how much value it adds to the transaction is key to Exemplar’s price determinations. “You don’t want to give away value without reaping a reward,” said Marsten. For instance, clients who demand especially prompt service pay a premium for that attention. Similarly, fee arrangements that shift risk from the client to the lawyer also raise prices. For example, time-shifted billing methods—such as contingency arrangements where payment is only triggered by an event that is usually out of the firm’s hands—should always require a premium. “Where there is a ‘give,’ there should be a ‘take,’” said Marsten. “If you’re going to give the customer a contingency, then you need to price accordingly and command a premium because there will be a percentage of time you can’t collect.” Fee arrangements that are not based on time require lawyers to pay close attention to the scope of the projects they are considering. While lawyers may have control over creating the boundaries of their representation, the problem to watch for is “scope creep.”  “Put the scope on a tack board above your desk and make sure you are asking yourself the question, ‘Did the customer pay for this?’” advised Marsten, who said that scope creep happens most often when associates are doing the work of the engaging attorney. Beyond determining prices, lawyers considering non-traditional fee arrangements must observe ethical guidelines—not just the Model Rules, but also local rules and restrictions on fees that vary from one jurisdiction to another, cautioned panelist Margaret Raymond, a professor from the University of Iowa College of Law. Law Expertise, General, Capital, Business 2010-12-01T22:47:14+00:00 http://www.exemplarcompanies.com/site/ma_outlook/ http://www.exemplarcompanies.com/site/ma_outlook/#When:21:16:12Z With fragile M&A markets still recovering, smaller deals will be more prevalent than the mega-deals of recent years, given recent market turmoil. By James Myers With fragile M&A markets still recovering, smaller deals will be more prevalent than the mega-deals of recent years, given recent market turmoil. Consider the premier boutique investment bank Allen & Co.’s annual conference in Sun Valley, Idaho. In the past, the conference has been the breeding ground for such notable deals as the $19.5 billion purchase of Capital Cities/ABC by Disney. This year, partnerships and smaller buyouts are the types of deals that attendees will be focusing on. The economic woes facing the European Union are inspiring caution in the field of M&A as firms await signs of market stability and continue to hunt for bargains. The first half of 2010 saw global M&A activity at it’s lowest since 2004, largely due to the EU sovereign debt crisis. Comparatively, M&A activity was healthier in the United States, where six of the top ten deals of the year have been executed.  Expect Private Equity firms to be looking to exit some of the investments they made during the M&A boom years circa 2007. It will take time, and most importantly, liquidity, to build back up to the mega-deals. Firms that have built up cash reserves will be in a strong position to make strategic acquisitions and lead the revival in M&A activity. Capital, Business 2010-07-26T21:16:12+00:00 http://www.exemplarcompanies.com/site/social_media_mini_blog_series/ http://www.exemplarcompanies.com/site/social_media_mini_blog_series/#When:21:48:11Z Who to hire for social media As the world of Social Media continues to grow, many businesses are starting to utilize this platform in a daily basis. Many use social media to build brand awareness, promote marketing campaigns and more importantly connect with current and future customers. A firm that needs presence online should be especially careful about who they hire to do their social media campaigns. This is not only because of social media’s mass effect, but because it also takes a lot from a marketing professional to do the job properly.  Who to hire for social media As the world of Social Media continues to grow, many businesses are starting to utilize this platform in a daily basis. Many use social media to build brand awareness, promote marketing campaigns and more importantly connect with current and future customers. A firm that needs presence online should be especially careful about who they hire to do their social media campaigns. This is not only because of social media’s mass effect, but because it also takes a lot from a marketing professional to do the job properly.   When it comes to hiring a new social media talent, here are few tips for you to keep in mind.   1.     Look for a marketing expert who masters social media; not a social media intern who practices Twitter and Facebook. Social Media is a new kind of communication channel just like television, newspaper and radio during the old times. A common misconception is that social media is easy, and therefore anyone can do it. Many companies end up hiring interns to manage their social media presence. The fact is that many platforms including Twitter and Facebook only build up social media.   Since social media has grown rapidly to include various communication streams, it takes every aspect of marketing to support social media’s systemic growth for a particular company.   2.  A Social Media professional needs to understand the industry and where your brand stands.  It takes many years of education and practice to be able to perform an in-depth marketing research plan. However, it does not take much to understand the importance of knowing your unique proposition. Often times, such background marketing knowledge is the key to being able to successfully perform marketing promotion activities. Promotion strategies must adopt with target audience groups in each case.   3.  Ask if they’ve had any Public Relations and Risk Management experience.  Social media networks require constant motoring activities to maintain and protect company images. It is indeed bad to see a “hate page” appear, however it is worse to just leave it alone and not respond. That is why hiring the right social media professional is so important. Your social media lead needs to be there when negative commenting about the business appear, and should be the person to properly deal with it in a professional manner. Many times inappropriate responses can cause even more negative feedback. It is in this case where it is imperative to respond quickly so the harmful messages do not spread and affect both current and potential customers.  At the same time, it is also important to make positive PR efforts to call for support. If ever there is truly a mistake made, then the company’s best response is always to admit to it, and promise to make it better.    All of the aforementioned tips are essential elements to consider when hiring a social media person. Do not take the risk of hiring an inexpensive intern in exchange for a possible PR disaster. A true marketing professional can point your company in the right direction and avoid unnecessary trouble later on. Capital, Business 2010-06-22T21:48:11+00:00 http://www.exemplarcompanies.com/site/suffering_through_the_pain_of_ma_due_diligence/ http://www.exemplarcompanies.com/site/suffering_through_the_pain_of_ma_due_diligence/#When:22:51:22Z Your inviting an expensive headache if your don’t take the Due Diligence process seriously when a Buyer for your business comes calling. The Buyer’s demands for information may seem onerous and distracting, but the consequence of a halfhearted response can be significantly more painful. You’re ecstatic! You’ve just signed a Letter of Intent to sell your business at a price that far exceeded your expectations. Soon you’ll be able to kick back and enjoy life. But wait, what’s this? A “Due Diligence List” from your Buyer that goes on for ten pages. Do you really need to dredge up all of this information, all of these documents? As painful and distracting as it might be, yes you do, and here’s why. Terms set out in a Letter of Intent reflect the Buyer’s current understanding of value and risk. Once the LOI is signed, the parties move on to contract preparation, negotiation and closing. A proper LOI will provide that the deal cannot go forward unless and until the Buyer completes a Due Diligence examination of your business. This exercise affords the Buyer a closer look at your business, refines risk, and influences contract drafting and final negotiations. Due Diligence can be a painfully detailed process and Sellers are sometimes tempted to look for shortcuts, providing partial or incomplete responses to the Buyer’s inquiries. After all, until it’s sold, you have a business to run. However, a halfhearted attempt by the Seller during Due Diligence can have severe consequences. First, a savvy Buyer can tell when you are short-arming your responses. The Buyer may attempt to insulate itself against unknown, undisclosed risks by taking harder positions in contract negotiations or seeking a purchase price reduction. Worst case, the Buyer might be spooked by your intransigence and walk away from the deal. Second, contemporary buy/sell agreements contain representations and warranties of the Seller, affording the Seller an opportunity to call out exceptions (e.g. “The Seller represents that is not subject to any claims or litigation except as described in the attached Schedule.”) Should a representation or warranty prove to be untrue, the Buyer is likely to have a post-Closing claim against the Seller. Without the proper effort required to complete Due Diligence, the Seller may miss a risk that should be disclosed in the buy/sell agreement, leaving the Seller exposed to recourse by the Buyer. Third, assuming your deal does close, the Buyer is likely to have reserved the right to press indemnity claims against the Seller for violations of representation and warranties. A weak Due Diligence effort and correspondingly porous representations and warranties make you particularly vulnerable to indemnity claims.  Depending upon how the buy/sell agreement is drafted, your exposure may be a significant percentage of the consideration paid by the Buyer. Moreover, a nervous Buyer may have required that a portion of the purchase consideration be placed in escrow in anticipation of future indemnity claims. Finally, closing of the deal turns out not to be a closing at all. You’re left with an adversarial process with an unhappy Buyer who wants a chunk of its purchase price back by pursuing indemnity claims. You won’t be kicking back any time soon. Next time, take the Due Diligence process seriously. Capital, Business 2010-06-03T22:51:22+00:00 http://www.exemplarcompanies.com/site/to_3d_or_not_to_3d_that_is_the_question/ http://www.exemplarcompanies.com/site/to_3d_or_not_to_3d_that_is_the_question/#When:12:11:19Z Today I am writing a small piece on the latest technological craze in film and asking your opinions on whether 3D is a good thing or not. Today I am writing a small piece on the latest technological craze in film and asking your opinions on whether 3D is a good thing or not.  This particular blog was inspired by a recent Newsweek article titled ‘Why I Hate 3-D (and You Should Too), I’m not opposed to 3-D as an option. I’m opposed to it as a way of life’. I remember sitting in a bar in New York about 2 years ago and having a debate with some fellow professionals about 3D and why I didn’t think it was going to catch on or would be fraught with potential issues further down the road – versus—their opinion which was “embrace it, it’s here to stay” and “it’s the next generation for film, like DVD’s was to VHS” … Well, here we are 2 years later, and 3D films are going “bang for glory” with every studio, as it seems the industry itself, and many more independent film makers talking about making their films 3D.  Now we can debate why we are here, but I think it is clear that the success of one ‘Avatar’ as the biggest grossing film of all time, is one of the main reasons why, in typical hollywood fashion, everyone has jumped on that band wagon, hiked their theatre prices, and set in motion a less than comprehensible argument for films to be made with this medium in mind. There are some questions which remain, and include, (1) Are these studio executives and indy film makers correct in their decision? (2) Have they bought into their own hype because a few films have made a few billion dollars (in part because of the over inflated ticket prices)—and so become a self fulfilling prophecy, and (3) Can this medium, (including 3D TV) survive all the hype? I recently posted the same article on my facebook page and got a few replies, all of which seemed to mirror my own sentiments and that of the Newsweek articles author.  See Below “I can’t think of one "serious" movie that would ever benefit from 3D and it would be a shame if we all had to pay extra for a movie with a great story and great acting simply because the director decided that, to keep up with new projectors, or to sell the movie, it had to be made in 3D.” “while I agree that the whole 3D craze is utterly ridiculous and that (in my opinion) in most cases, no serious director would use it unless the story, script, or some other part of the "movie" itself was weak and warranted it, I certainly think its useful and extraordinary as an option, albeit a rather limited option I hope and one that doesn’t become the norm or a necessary part of any future movie.”   “A good film works as a thoroughly immersive experience anyway without having to rely on headache-inducing sticks being poked in your eyes. When I saw ‘There Will Be Blood’ for example I felt the overall technology had taken such a leap without resorting to gimmickry that I felt completely ‘in the moment’ and privileged to be viewing it. No 3D film has achieved anything near that experience as yet.” What are your thoughts, feel free to email me. Capital, Business 2010-05-29T12:11:19+00:00 http://www.exemplarcompanies.com/site/the_power_of_the_network/ http://www.exemplarcompanies.com/site/the_power_of_the_network/#When:00:08:05Z In his ground-breaking book, “The Tipping Point,” Malcolm Gladwell identifies three types of people that make ideas, epidemics, or trends “tip” – that is, make the transition from a backwoods curiosity to the mainstream. “Mavens” are enthusiasts who know certain things very, very well, whether it’s supermarket deals or techno-gadgetry. “Salesmen” are translators who can take complex ideas and make them understandable to the average joe. And finally, “Connectors” are the people who have such a broad network of people across different spheres of life that they can introduce people to each other who never would have crossed paths otherwise. In his ground-breaking book, “The Tipping Point,” Malcolm Gladwell identifies three types of people that make ideas, epidemics, or trends “tip” – that is, make the transition from a backwoods curiosity to the mainstream. “Mavens” are enthusiasts who know certain things very, very well, whether it’s supermarket deals or techno-gadgetry. “Salesmen” are translators who can take complex ideas and make them understandable to the average joe. And finally, “Connectors” are the people who have such a broad network of people across different spheres of life that they can introduce people to each other who never would have crossed paths otherwise. This last category – the Connectors – perfectly describes what we do here at Exemplar. Sure, we have Mavens in certain areas (patents, securities, etc.) and we have Salesmen who can explain things and do it well, but our main strength as a company is in making the Connection. First and foremost we’re entrepreneurs. And that means we’re always out in the community meeting people, looking for needs to be filled, trying to build our business by building yours. That is, we’re always making connections. Some recent examples: -A woman I met at a conference makes a one-of-a-kind product. She needs a distribution channel. A colleague at Exemplar knows the management team of the perfect distributor. We’ll be connecting the two. -Some students I met at a technology expo who have come up with innovative designs relating to aircraft and would like to build and market their product. A woman I met at a technology expo works with a software company, so she knows the management team of a technology company who in turn know the team at an aircraft company who may be interested in the design the students came up with. The aircraft company may also be interested in applications of their technology in a different segment of general aviation than they have been exploring, and we happen to know the CEO of a company that can provide such a market. We’ll be exploring whether the connections are valuable. -The advisor to the previously mentioned student team has an aircraft company with a design that can benefit third world communities. He is looking for other companies that might work in concert with his idea. As it happens, we have connections to two other companies that are focusing on building their very different but complementary business models in the third world. All three of these companies are eco-friendly and humanitarian-oriented. We are happy to make the introductions to see if they can work together. None of these connections would happen if we sat on our laurels thinking about how to drive up our billable hours with a few solid customers. That’s not what we do and it’s not who we are. We are entrepreneurs focused on finding and delivering value. We pro-actively engage in the marketplace, spanning a wide range of industries, in order to find those pockets of need where we can help. We have developed a powerful network of contacts that aids our customers in ways even we cannot predict. We are Connectors. Capital, Business 2010-05-29T00:08:05+00:00 http://www.exemplarcompanies.com/site/film_financing_-_tips_6_pre-sales/ http://www.exemplarcompanies.com/site/film_financing_-_tips_6_pre-sales/#When:22:11:08Z In the area of Film Financing, Pre-sales are the act of selling specific territorial rights prior to the completion of the film. FILM FINANCING - TIPS # 6 PRE-SALES In the area of Film Financing, Pre-sales are the act of selling specific territorial rights prior to the completion of the film.  Contracts with buyers around the world are typically based on a number of elements, such as the Script, the Cast, the Genre and Budget for the film, and certain rights to distribute the film in different territories before the film is produced.  Once a particular deal is made, it is the distributor’s responsibility to insist that the producers deliver on elements such as content and making sure the cast have been contracted; if a material change to those elements is made, then the financing may collapse altogether. Pre-sale contracts with big name actors or directors will often (at the insistence of the buyer) have an “essential element” clause that allows the buyer to get out of the contract if the star or director falls out of the picture and a marquee equivalent cannot be procured. This helps explain why the movie industry is so reliant on film stars, directors and certain genres and why these actors are capable of commanding such high fees, perks and gross profits.  However, this also bodes well for potential investors as it gives an indication of the commercial viability of the film being invested in. Buyers typically pay a 20% deposit to the film’s collection account (or bank), with the balance due upon the film’s delivery to the foreign sales agent. Producers usually pre-sell as many foreign territories as possible so that they can use the value of those contracts as collateral for the production loan that a bank (senior lender) is providing to finance the production.  These lenders also only lend 80%, 50%, or less of the value of the contract, depending on the bank’s history with the buyer. When factors such as the cost of capital, i.e. fees and interest on the loan, as well as the discounted price the buyer is paying to purchase the film in advance of completion, is factored in, then it becomes more evident how important the “creative package” is in providing a valuation of the film to the end consumer. In some cases, producers may be fortunate enough to be able to procure a negative pick up deal. A “negative pick-up deal” is a deal when a studio agrees to purchase the movie from the producer for a fixed sum at a given date.  Until that date, the financing is the responsibility of the producer, who must pay any additional costs such as up front opportunity costs, including those associated with when and if the film goes over-budget. A producer will usually have a bank lend against the value of this type of contract as a way to shore-up their financing for the film. This process is commonly referred to as “factoring paper”. Most major North American studios are collateralized by the banks at 100% of the contract value with the lender taking a basic origination/setup fee. Capital, Business 2010-05-27T22:11:08+00:00 http://www.exemplarcompanies.com/site/time_to_examine_your_corporate_online_privacy_policy/ http://www.exemplarcompanies.com/site/time_to_examine_your_corporate_online_privacy_policy/#When:22:01:28Z By Benjamin Doherty The backlash Facebook CEO Mark Zuckerberg faced in response to the social-networking behemoth’s recent personal privacy changes has been well-documented. The company, which has more than 450 million users worldwide, implemented changes that placed more personal information in the public realm. For many users decrying these changes, concern stemmed from, amongst other things, identity theft and infringement on personal privacy rights.By Benjamin Doherty The backlash Facebook CEO Mark Zuckerberg faced in response to the social-networking behemoth’s recent personal privacy changes has been well-documented. The company, which has more than 450 million users worldwide, implemented changes that placed more personal information in the public realm. For many users decrying these changes, concern stemmed from, amongst other things, identity theft and infringement on personal privacy rights. Always one to have a finger on the pulse, Zuckerberg detailed the responsive measures Facebook would take in light of these criticisms. He openly acknowledged the various missteps the company made, specifically failing to fully communicate the motivations and benefits behind such changes to their user base. The lesson to be learned from Facebook’s ongoing social experiment is a powerful one: when operating a user-driven entity, public perception rules the day. Regarding your own personal online entity, examine your privacy policy to ensure its reasonableness. Where are your failings? What are the legal consequences of such failings? Are your policies infringing on your users in violation of their privacy rights? The language of privacy agreements, although commonly overlooked as boilerplate, is of the utmost importance. Ensure that you protect yourself and your entity from exposure to potential legal liability. As good, ethical business practice, communicate and disclose your policies to guarantee a positive user experience without tarnishing reputation. Capital, Business 2010-05-27T22:01:28+00:00 http://www.exemplarcompanies.com/site/lean_six_sigma_its_not_just_for_manufacturing_businesses_anymore/ http://www.exemplarcompanies.com/site/lean_six_sigma_its_not_just_for_manufacturing_businesses_anymore/#When:16:23:45Z The lessons learned by the Manufacturing Community through the application of Lean Manufacturing and Six Sigma principles readily translate to the Service Industry. Businesses including banks, hospitals, municipalities, school systems, accounting and law firms are now employing these tools to identify and eliminate inefficiencies, increasing customer satisfaction and profitability. “Lean Six Sigma” represents the marriage of two complementary principles: Lean Manufacturing and Six Sigma problem solving analytics. The principal of Lean Manufacturing found its origin in the Toyota Production System first developed for the automotive industry in the 1970s. Toyota’s objective was to produce high quality products utilizing a manufacturing model that eliminates inefficiency. On its most fundamental level, Lean theory recognizes that inefficiencies are embedded in any manufacturing process. These inefficiencies typically include delays, unnecessary movements, incorrect processing, defects, over-production and excess inventory.  Once identified, elimination of inefficiencies results in an increase in production rates, a reduction in errors and defects and ultimately, enhanced profitability. Corrective action may be as simple as realigning work flow, creating manufacturing cells, eliminating steps or ordering raw materials on a just-in-time basis. The symbolic expression of this approach is “Work Better, Not Harder”. The identification of process inefficiencies is the first step in Lean theory. This is frequently approached by “mapping” every element of an existing process and characterizing the elements as value added or value subtracting ( described as “Value Stream Mapping” or “Process Mapping”). Time delays or nonproductive loops for example are inefficiencies that need to be designed out of a process, if possible. This may be easier said than done if the root cause of the inefficiency isn’t readily identifiable. This is where the diagnostic tools of Six Sigma come into play. “Six Sigma” is an expression of production excellence. It literally translates into 3.4 defective parts per million of parts produced. It is a standard that many businesses strive to achieve but few accomplish. Most businesses would be happy to achieve Five Sigma (233 defects/million) or even Four Sigma (6200 defects/million). The birthplace of Six Sigma was the U.S. semi-conductor industry where extraordinary efforts were made in the 1980s to dramatically reduce the frequency of product defects. An entire industry has been built around Six Sigma consulting, designed to guide corporations through a maze of analytical tools and methods all aimed at pinpointing the root causes of manufacturing defects. Six Sigma is all about the graphic demonstration of collected data (e.g. Linegraphs, Pareto Charts, Ishakawa (Fishbone) Diagrams) employed to ferret out those root causes. Applying these tools to inefficiencies revealed through Lean Manufacturing process analysis can quickly solve the riddle of the whys and wherefores of an unprofitable process. As every industry strives to increase profits in challenging times, a rebirth of Lean Six Sigma is occurring in of all places the Services Industry. Service businesses including banks, hospitals, schools, municipal governments and even law firms are embracing these techniques, challenging time honored methods of procuring and delivering services.  By committing key members of their staffs to Value Process Mapping and dissecting all core service processes, they hope to wring out inefficiencies resulting in superior service delivery to their customers.  If you operate a service business, don’t dismiss the application of Lean Six Sigma to improve your processes and enhance your bottom line. Expertise abounds in the consulting community, but a word to the wise: Start small with a pilot project and build the visibility and credibility of Lean Six Sigma from within your organization. Capital, Business 2010-05-20T16:23:45+00:00 http://www.exemplarcompanies.com/site/film_financing_-_tip_1_development/ http://www.exemplarcompanies.com/site/film_financing_-_tip_1_development/#When:02:24:13Z There are a number of ways to get your film financed these days, but by far the most lucrative from a financial and career perspective is through a studio such as Sony, Paramount or Warner Bros who have the capital to fund independent films.  Unfortunately they rarely do unless you have a pre-existing and somewhat successful relationship with them or a cool and very high concept story. There are a number of ways to get your film financed these days, but by far the most lucrative from a financial and career perspective is through a studio such as Sony, Paramount or Warner Bros who have the capital to fund independent films.  Unfortunately they rarely do unless you have a pre-existing and somewhat successful relationship with them or a cool and very high concept story. Now if you believe you do have such a story then the next step is to pitch your idea or story to a development executive.  If you are fortunate enough to be offered a deal it will likely come in one of two forms, a buy out or a development deal.  For the purpose of this blog I’ll be focusing on the development deal. A development deal usually involves a 3rd party such as a studio paying you to develop your property with the end product or intellectual property being owned by them.  The deal usually involves them committing to producing the project subject to the final product meeting with all their approvals and the interest or commitment of acceptable talent to star in the film.  Assuming there is no commitment to produce the project the deal is typically a step deal, meaning that it will be evaluated in stages and may or may not proceed beyond each stage. Sometimes a development deal includes an office on the lot of the studio but this is usually reserved for those with something of a track record, especially these days.  Additionally, the office on the lot is usually a hand shake deal and involves them getting a first look at whatever else you are developing.  If the development deal is being seriously considered by the studio, then a formal deal memo is entered into, followed by a contractual agreement which includes a salary, schedules for the completion of the project being developed, a screen credit, and some sort of back end participation in the final film. The salary is usually the sum of money the producer receives upon completing the development of the project and the green-lighting of the movie. Usually, part of the salary is paid during the development stage. Now there are pros and cons to everything in life and despite the excitement of actually getting a development deal (should you be so lucky), then the following should be considered.  Unless it’s your own project, the Studio pays for everything except maybe the initial acquisition costs. The amount the Studio pays for is dependent on both your track record, and the odds of the project being green lit (which are slim at best). If however the film is green-lit, the likelihood is that it will be a major motion picture with big stars, which will elevate your status, is also slim. A major downside during this process is that you’re an employee of the Studio, and may be fired at any time prior to green-lighting, which means you might never profit from the potential success of your project. Additionally, sometimes projects get green-lit too early, meaning that they are “under developed” and green-lit just to fill release slots, which could in turn result in a very bad movie with your name on it! Film Industry by the Numbers Capital, Business 2010-01-15T02:24:13+00:00