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The Emotional Cost of the SR&ED Audit

February 17, 2015 By Alex Grgorinic

Have you ever watched a witness that takes the stand to recount a terrible event in which they were personally involved? An event that may have caused some irreparable harm. The witness is just filled with overwhelming emotions of pain and sorrow of having to relive the incident. Someone please hand that witness a tissue. Having to watch as someone relives a difficult event just evokes very strong empathy in us all. And getting a positive verdict seems to ease all that pain that has been caused.

The SR&ED audit is not much different. It is one of the most emotionally draining processes that your team is ever to be put through. It is just a killer.

Any project which you select for an SR&ED claim, will likely have had its fair share of angst and turmoil. It often starts with things not working in the way that they were expected to work. This, despite all of your best efforts to identify the unknowns ahead of time. But the reality of most development projects is that, you don’t know what you don’t know, until you are smack in the middle of it.

And that is when all the fun starts. Deadlines are missed. Development staff may have to be added or removed. More development tools may need to be added or changed. More contact is occurring with the support staff for the underlying tools, components, or interfaces that you are struggling to use. All of a sudden, there is no shortage of uncertainty. And then you begin to really know what you don’t know.

Once you finally resolve that cornucopia of uncertainties and get to a happy project completion, it is best that you don’t relive it. Except for the fact that there is this SR&ED program. If you recount all your trials and tribulations and share those development hardships, there will be an SR&ED refund for you to ease all that pain that you had to endure. And that may be the case. Unless there is an audit.

An SR&ED audit effectively puts you on the witness stand. Presenting your claim to a technical reviewer will require you to relive the chronology of your development efforts through all of its most miserable parts. The only thing that makes it all bearable is the comfort in the fact that you have persevered. You have overcome everything thrown at you, and you have completed the project.

Unfortunately, the role of the technical reviewer is to stir the pain in your toughest development efforts, and then to question whether there was really any pain at all. This is emotionally tough for everyone. It is natural to have a strong emotional connection with the development feats that you have made. Having them cast in doubt can cause quite an emotional unraveling. And when things get emotional, it just throws you off.

If you are going to have an SR&ED audit, you must prepare yourself as best you can, for the arduous process that is to take place. Going into the process with an unwavering conviction of your technological accomplishments is not enough. You need to be prepared for how to cope with the process when all of that subtle, and not so subtle berating begins. Unfortunately, the technical reviewer is not there to show support for your technological achievements.

Filed Under: SR&ED

It’s All About Finding The Positive Thinkers

February 9, 2015 By Alex Grgorinic

It is known that the power of positive thinking leads to better outcomes.

This dates back to at least 1952 when Norman Vincent Peale published his controversial book “The Power of Positive Thinking”. Controversial at the time because of an unwillingness to disclose sources. More recently, Bloomberg magazine provides current research to highlight the economic impacts of positive thinking in an article by Charles Kenny “How Optimism Strengthens Economies”.

“Over the long period…it appears that happiness and optimism are a driving force behind even stronger economic performance, encouraging risk, experimentation, and hard work, according to a cross-country analysis”

So now there is a ton of proof to back up the theory. It is all good. Let’s all think positive. What’s the problem?

The problem is the fear of the great unknown. This is the debilitating emotion that strangles all that strength in positive thinking. In the business world, much attention has been giving to historically high cash levels sitting on corporate balance sheet along with an increase in share buy-backs, and acquisitions to boost share value. Financial engineering seems to be a safer way to boost share value when you fear the uncertainty of the future.

And so how are you to market your wares in such an environment?

To start with, it is normal to focus broadly on all those who can benefit from your offering. Those who should have the need. Those who should be interested. But then you must be methodical on how you narrow in and focus your best efforts.

It is really about finding ways to latch on to those who are positive thinkers; who want to do something to improve their current situation. And this can only come through your messaging and content. Through a reveal in how you think about things; and a match with how they think about things.

And this is why it is important to have a demand generation mindset when it comes to your marketing strategy. The entire spectrum of your efforts needs to be directed at bringing those prospects forward who are positive thinkers about the situation that they are moving towards. That they aspire to achieve.

Being a positive thinker translates to having a bias for action. It is about having that inherent belief that “there must be a way”. Positive thinkers are more likely to try several solutions in pursuit of achieving the progress towards their desired state.

This is the mindset that brings both an acknowledgement of uncertainty and a tolerance for it. The acceptance that “We will never know for sure, unless we try it.”

So you must craft your messaging and content in your demand generation system to elicit the response that a positive thinker would take. You need to provide insight and information in what it is that you can achieve. And as they move closer to you, their desire to believe grows stronger. Taken with their propensity for action, the demand generation process will produce the qualified prospects that you seek.

Now here is the tough part. Once you have forged some kind of connection, then you must continually put out fresh content to maintain that connection, until that prospect is ready to take action. The reality in the B2B world is that new prospects put up with their existing scenarios for longer periods than is ideal. But you must continue to nurture them, because it will continue to fuel that positive thinking.

Filed Under: Demand Generation

What Snowboarder Survival Teaches Us

January 30, 2015 By Alex Grgorinic

The survival of Julie Abrahamsen, a Norwegian snowboarder, in the Canadian Rockies is just an incredible story. It’s not just about survival, it is the mindset of survival that really shines through. The 21-year Norwegian survived three nights on the mountain before being rescued.

Julie Abrahamsen arrived in BC and got her snowboarding pass on Jan 1st. And she used it every single day up to Jan 21st, the day that she went missing. Somehow she had veered off the main snowboarding areas and couldn’t find her way back. As it turns out, she was 8 km out of bounds. When she realized she was lost, she found a mountain-side cave-like structure which provided shelter during the first night. She tried to get her bearings and walked through waist-high snow. Feeling that progress was way too slow, she made her way down to a creek the next day and figured she would wade. But the water depth suddenly increased and she was carried away by the current. She managed to get hold of a tree and pull herself out. She slept soaked that night, and the next, and continued to walk in the deep snow. On the fourth day, after 3 nights, she was spotted by the Search and Rescue team and rescued; still 5 km away, which equates to a 2-day trek on foot through the mountainous terrain.

When she was asked what kept her going, she said: “I didn’t worry too much. I stayed positive. My mom is the most positive person that I know and she served as my inspiration to do what I had to do.” Truly a heroic story.

On the flip side, the skills and technology of the Search-and-Rescue team, which helped narrow the search region is just as important to her survival. Her cell phone had died mid-day on the 21st and the cell phone company provided the last ping to narrow down the region. The resort had a snow-pass tracking technology that identified the last lift that she took up the mountain. And then there is the human element. A pilot on a training exercise spotted foot prints where there should be none on Thursday. That is one full day before she was even reported missing by her roommate. That is incredibly astute. Putting it all together, they were able to find her and save her.

The story can serve as great inspiration in many regards. But I would like to relate it to your demand generation strategy. It is quite possible that your program will likely have to endure its own survival at some point. Julie Abrahamsen had been on that mountain for 21 days in a row. And then she got lost. And she didn’t even realize how lost she was.

Your demand generation strategy may be working fine. Day in and day out. And then one day, you notice that things are off. There may have been some underlying shift in market behavior. Or perhaps your approach has veered off course. Or perhaps a shock to the market. In any case, you are not getting where you need to.

The key is to recognize your situation and stay positive. You can get back to where that demand is being generated. But you are going to have to go through some struggles. Walk through the thick snow. Get swept down river. But you must have the mindset of perseverance, if you are going to survive.

And the reality is that you may not be able to do it alone. You may benefit by outside help that can act as your search and rescue. Someone who is not in the thick of it. Who can take a step back and see the footprints that took you in the wrong direction.

Both the survival and sustainability of your demand generation program are a key part of your business. And you must be prepared to get lost occasionally, and execute in a survival mindset. And that survival will only make you stronger.

Filed Under: Demand Generation

Why Engineers Fail At SR&ED

January 23, 2015 By Alex Grgorinic

There is a fundamental mismatch between the mindset of the engineer and the framework of SR&ED. Perhaps it is something that is best illustrated with some humor from a popular engineer-scientist joke.

An engineer and a scientist both agreed to take part in an experiment, and were sat down at one end of a room. At the other end the room was a beautiful a beautiful woman, leaving nothing to the imagination. Think Lady Godiva. The person conducting the experiment advised them that every 30 seconds they would be allowed to travel half the distance between themselves and the woman. The objective was to see how long it would take each of them to reach the woman. The scientist immediately withdrew from the experiment and claimed it to be futile. The engineer on the other hand, anxiously said “Start the clock”. To which the scientist responded, “You don’t get it. The series in infinite. You can never actually reach her.” And the engineer happily says: “That’s ok. I will get close enough for all practical purposes.”

So what’s the big insight? Engineers are pragmatic. They are focused on getting to the end result. Getting the project completed. Getting it to work. In embarking on their projects, they need to figure out what is working, and what is not. To focus any energy on developing deep understandings of why something does or doesn’t work, is just a sideline distraction. On the other hand, scientists and the SR&ED mindset, are consumed by the need to understand why.

Engineers just don’t believe in failed experiments. They have a “can do”, “will do” attitude. They take enormous pride in being in the field that truly advances technology. Given enough time and money, any problem can be solved. There is no uncertainty. And they gloat over projects that they have completed, where others said it just couldn’t be done. Just don’t ask them too much about why things turned out the way they did. They are never too concerned about the “why”, just that they did.

Unfortunately this winning mindset that is prevalent amongst our beloved corps of engineers is something that undermines the ability to fit their work into an SR&ED claim. It really is no different than trying to mix oil and water. It comes down to the fundamental fact that there is a force of attraction between the molecules of the same liquid, that is greater than the force of attraction between the two different liquids. Hence the engineer’s thinking has a tough time to mix with the SR&ED framework.

If you are an engineering type, the challenge in creating SR&ED claims is to be able to step out of your skin. Follow your regular way of doing things, yes – but still being able to look at your work like a scientist would. It’s not easy. It’s not natural. But you must recognize your innate way of doing things must also be parlayed in a way that can yield the rewards that are there; i.e. the SR&ED funding.

Filed Under: SR&ED

Do You Eat Your Own Cooking?

January 16, 2015 By Alex Grgorinic

Well if you don’t eat it, why should anyone else?

The most effective marketing is when you are able to connect with a group of like-minded individuals. It’s not just a connection, it’s a genuine connection that is rooted in a common experience. And that common experience serves as a testament that you see things the same way as those who you seek to help.

To make that authentic connection, it means that you see things the same way in an expanded sense. You have lived through the same struggles and types of problems that your target audience is experiencing. And you have found a better way to move forward. Your story is far more than “We do this”. It is much more akin to “This is what we live for” and “This is how we have overcome the obstacles.”

The key of course is that you exhibit signs that you are really into “it”. “It” is whatever activities you are putting out marketing messages about. For those messages to be effective, you have to show signs of living through the pain and grind of whatever problem you are solving. And you must bring forward real insights that you have garnered from your experiences.

People want to follow those that have similar pursuits. It just provides an extraordinary learning opportunity. Both from their achievements, and especially form their mistakes and failures. Look around to all the common interest groups or the industry associations, and the evidence is quite strong. People like to gather around a set of common interests and goals.

And to attract prospects, you really do have to demonstrate that you do eat your own cooking. It means that you really do know all the nuances of dealing with the problem that you are solving. You can relate to the trials and tribulations of having struggled with the problem. You bring forward good insights into alternative ways of dealing with the problem. And you have realized gains with the solutions that you espouse.

To win the attention of new prospects, you need to be able to pull back the curtain and say “I did that”. Effective solutions that solve a problem are often derived by working with a lead customer. And sometimes that lead customer is you. There are many examples but I will draw on one of my favorites: the Dyson vacuum cleaner.

As the story goes, James Dyson was doing his part of the housework on a Saturday morning by using the Hoover upright vacuum cleaner. The problem was that it was not sucking up the dirt. So of course he changed the bag and very quickly again discovered that the amount of dirt that was getting sucked up, declined very rapidly. Continually needing to change bags that were not even close to being full was a nonsensical solution. So he came up with the concept of the bag-less vacuum cleaner and brought the product to market. (This part did take him 3 years).

This is where the story gets interesting. Amongst the vacuum cleaner establishment, i.e. the industry players, no one believed in the solution. James Dyson was left to tell his story directly to those that paid attention to how much of the dirt was actually getting sucked up. And within 3 years, the Dyson model was the best-selling vacuum cleaner in the UK. It was selling at twice the price of the next most expensive model, and had no advertising.

James Dyson knew the problem very well. He communicated his understanding of things with those in the retail channel and was effective in having his message echoed by the average retail sales person. Soon enough, the demand for his solution grew by leaps and bounds. Prospects were able to relate exactly to the same set of circumstances that James Dyson had personally experienced. That shared experienced was inextricably connected with the solution that was provided.

Your goal is to have prospects listen to you, follow you, and believe in you. In order to catalyze that process, your prospects need to be able to share in your experiences. It means understanding the passion of why you do what you do. Knowing that you eat your own cooking and why, serves as powerful attractive force.

Filed Under: Demand Generation

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