Worcester Business Journal

wbjournal.com | April 29, 2019 | Worcester Business Journal 19 1 0 T H I NG S I know about . . . ... Employee fraud By Kenneth C. Pickering Kenneth C. Pickering, an attorney and certified fraud examiner, is chair of Worcester law firm Mirick O'Connell's government and internal investigations group. 10) Fraud is more prevalent than you think. Employee fraud and embezzlement is a hidden problem, one not frequently advertised or reported. Losses report- ed to the Association of Certified Fraud Examiners for the 2018 Report to the Nations totaled more than $7 billion. 9) Smaller employers are at higher risk. The average loss in companies with more than 100 employees was approximately $100,000. The median loss in compa- nies with less than 100 employees was approximately $200,000. 8) The most prevalent frauds are cor- ruption, billing fraud, check and payment tampering, false expense reimburse- ments, skimming, and theft of cash on hand. 7) Embezzlement is usually a slow process. As the duration of the fraud continues, losses can grow exponential- ly. Fraud schemes lasting more than six years average more than $700,000. 6) Age characteristics. Most frauds are committed by employees who are between the ages of 35 and 45, but the largest losses are generated by employ- ees who are more than 55 years old. 5) You can't spot fraudsters with a background check. Only 4% of fraud- sters had a prior conviction. But that does not mean they haven't previously engaged in fraud. Only about 60% of frauds are reported to law enforcement authorities. 4) There are warning signs. 85% of fraudsters displayed at least one red flag; approximately 50% displayed multiple. 3) The red flags... include living beyond one's means, apparent financial difficul- ties, an unusually close association with a vendor or customer, control issues, an unwillingness to share duties, and family problems. 2) Tips. Organizations with hotlines detect fraud more often and suffer fewer losses. The best method to prevent and detect fraud is to develop an ethical culture, institute a code of conduct, and establish a tip-line. 1) Suspect fraud? Conduct an inves- tigation and preserve evidence. Who is involved? How was the fraud perpetrat- ed? What is the extent of the loss? Then, determine whether to make a referral to law enforcement for prosecution. K N O W H O W Four times marketing can save your business 10 1: C H O O S I N G A C O A C H E very business needs advice, especially for matters out- side its expertise. We've been helping clients for 20 years, and we've seen businesses thrive and die in New England due to how they handled marketing. Ignoring critical parts of marketing and brand management will hurt your business. Here are four times you should invest the time and money to consult with a marketing agency to avoid disaster. 1. Rebranding an established company We've all seen a beloved national or local business in a botched rebranding, permanently scarring its reputation and causing customers to leave: Don't let it happen to you. It's essential to get an outside perspective and to ask the hard questions. It's important to un- derstand how much strategy, work, and time a rebrand takes, from overhauling your image to cleaning up your digital footprint. Also, using a marketing agency's guidance on press releases and social media campaigns can be invalu- able in promoting your rebrand with the community and the world. 2. Dealing with the fallout from a reputation blow Scandal? Angry employees? Food poisoning? An online presence can cut both ways here. It's important to work with a professional to figure out the best course aer a reputation hit to minimize damage to your brand and customer base. It's more than just public statements: It's about working on internal communications, policy and procedures, and troubleshooting the problem. Craing an ongoing relation- ship with a marketing agency can help you be proactive in the future, monitor and get ahead of issues before they build into a bad reputation. 3. Breaking into social media marketing Whether you're an established brand or looking to launch social media alongside your new company, you only have one chance to make a first impression. To avoid common social media gaffs, getting outside and experienced advice on the right voice, tone, platforms, and oversight needed for social media can be priceless. Same goes for managing reviews and negative comments – it's important to know how to handle it. Free advice: interns should not run your business' social media accounts. It takes experience to properly handle social media, and with- out it, you can see poor growth and/or potential clients drawn away by better executed social media presences. 4. Starting a business with heavy competition From professional services to restau- rants, your dream business might be sharing a busy playing field, both online and off. Getting a competitive analysis (standalone or as part of a full market- ing plan) to scope out the competition can help you brand yourself apart from them. Knowing the strengths and weaknesses of those around you can help you find and exploit their missed opportunities instead of closing your doors early. ere are of course many, many more times a business can benefit from marketing consultation. Having an outside perspective from experts in the field won't only divert disaster, but they can help find missed opportunities and grow your digital presence. Before you start any major marketing programs, talk to a marketing firm. From con- sulting to full custom marketing plans, you'll be glad you did. BY JULIA BECKER COLLINS Special to the Worcester Business Journal BY SUSAN SHALHOUB Special to the Worcester Business Journal E xecutive coaches were something corporate America hadn't heard of some 20 years ago. But in terms of improved leadership, better self-awareness, increased motiva- tion and heightened self-regulation, executive coaching can be a boon to members of the C-suite. Here are some things to keep in mind when choosing an executive coach. Take time to fully vet. Companies and executives can find a coach best serving their needs by performing due diligence in terms of references – asking for them and calling them. It's important to find out how long the coaching firm has been in operation and who their executive-level clients are. "ere are coaching firms that bro- ker their talent … in other such cases, coaches may simply sign up to be a coach with very little screening and little to no advanced training," accord- ing to ExecutiveCoachingConnections. com's Susan Madonia. They should be willing to disagree with you. If your executive coach is a yes man, you may want to examine the value he is providing to you in terms of helping you make effective change. ere is no room for lecturers in the world of effective executive improvement, writes Dan Portes at CPIWorld.com. "While a coach needs to be a good communica- tor, the individual probably needs to be a better listener, capable of challenging your assumptions." They should tell you to solicit employees' feedback. Forbes.com's Erika Andersen says a qualified executive coach is one who advises you to gather feedback on your work performance from those who report to you. "It's important for you and the coach to get a sense of how others see you and interact with you," she said, to truly do his or her job. "We all have blind spots," she writes; proactively soliciting comments on your management performance from members of your team will expose unexamined areas of improvement. Julia Becker Collins is the chief operating officer at the Westborough digital marketing agency Vision Advertising. She can be reached at julia@vision-advertising.com. W W W

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