Welcome to Business Management


Thursday, April 26, 2007

 

Motivating People: Analysing Motivation & Recognizing Needs

Since the 1940s research into human behaviour has suggested that people are motivated by a number of different needs, at work and in their personal life. Recognising and satisfying these needs will help you to get the best from people.
Several motivation theories work on the assumption that given the chance and the right stimuli, people work well and positively. As a manager, be aware of what these stimuli or “motivational forces” are. Theorist Abraham Maslow grouped them into five areas. The first is physiological needs, and these are followed by further needs, classed as “safety”, “social””, “esteem” and “self-actualisation”. According to Maslow, the needs are tackled in order: as you draw near to satisfying one, the priority of the next one becomes higher. Also, once a need has been satisfied, it is no longer a stimulus.
The Maslow Hierarchy:
Abraham Maslow believed that satisfying just physiological and safety needs is not enough to motivate a person fully. Once these needs have been appeased, there are others waiting to take their place. The Maslow hierarchy can be applied to every aspect of life and the more ambitious and satisfied the personality, the greater the potential contribution to the organisation. Below is an outline of Maslow’s hierarchy of needs – we all start at the bottom of this list and attempt to work our way up.
• Self-Actualisation – realising individual potential; winning; achieving
• Esteem Needs – Being well regarded by other people; appreciation
• Social Needs – Interaction with other people; having friends
• Safety Needs – A sense of security; absence of fear
• Physiological Needs – Warmth; shelter; food; sex – a human being’s “animal” needs
Meeting the Needs at Work:
The Maslow hierarchy is particularly relevant in the workplace because individuals do not need just money and rewards, but also respect and interaction. When designing jobs, working conditions, and organisational structures, bear in mind the full range of needs in the Maslow hierarchy. Doing this will cost no more, but it will undoubtedly generate higher psychological and economic rewards all round. Individuals acting as part of a group have needs that differ from those of the group. However, it is important for individuals to feel they belong. Find a way to balance the needs of the group with those of individuals. For example, tell staff that if the group meets its major objectives, you may be able to satisfy individual requirements. Do not, of course, promise what you cannot deliver.
Motivation Outside the Workforce:
One of the areas in which individuals tend to satisfy their motivational needs outside work is sports activities. It is interesting to note the effort that people put into such endeavours, for which they are unlikely to gain material reward. Try to motivate your staff to apply as much effort in the workplace as they would in a team sports event by making work as much fun as possible. A shrewd motivational strategy is to encourage your staff to take up team activities outside the workplace in order to improve their teamwork skills.
Satisfying Basic Needs:
Psychologist Frederick Herzberg developed a “two-factor” theory of motivation based on “motivators” and “hygiene factors”. Hygiene factors – basic human needs at work – do not motivate but failure to meet them causes dissatisfaction. These factors can be as seemingly trivial as parking space or as vital as sufficient holiday time, but the most important hygiene factor is finance. A manager should try to fulfil staff members’ financial needs. People require certain pay levels to meet their needs, and slow income progression and ineffective incentives quickly demotivated. Fear about lack of security in a job also greatly demotivates staff.
Points to Remember:
• The effects of getting hygiene factors right are only temporary
• The results of getting hygiene factors wrong can cause long-lasting problems
• The more choice people can exercise over both hygiene factors and motivators, the better motivated they will be
• Job insecurity undermines motivation at all levels
• Recognising good work is as important as rewarding it
Ensuring Motivation:
The second of Herzberg’s two factors is a set of “motivators” that actually drive people to achieve. These are what a manager should aim to provide in order to maintain a satisfied workforce. How much a person enjoys achievement depends purely on its recognition. The ability to achieve, in turn, rests on having an enjoyable job and responsibility. The greater that responsibility, the more the individual can feel the satisfaction of advancement. Motivators are built around obtaining growth and “self-actualisation” from tasks. You can raise motivation in your staff by increasing their responsibility, thereby “enriching” their jobs.
Heightening Workplace Motivation:
Achievement: Reaching or exceeding task objectives is particularly important because the “onwards-and-upwards” urge to achieve is a basic human drive. It is one of the most powerful motivators and a great source of satisfaction.
Recognition: The acknowledgment of achievements by senior staff members is motivational because it helps to enhance self-esteem. For many staff members, recognition may be viewed as a reward in itself.
Job Interest: A job that provides positive, satisfying pleasure to individuals and groups will be a greater motivational force than a job that does not sustain interest. As far as possible, responsibilities should be matched to individuals’ interests.
Responsibility: The opportunity to exercise authority and power may demand leadership skills, risk-taking, decision-making and self-direction, all of which raise self-esteem and are strong motivators.
Advancement: Promotion, progress and rising rewards for achievement are important here. Possibly the main motivator, however, is the feeling that advancement is possible. Be honest about promotion prospects and the likely timescale involved.

 

Seven Dandy Uses for Video Surveillance Cameras

Who says video surveillance cameras are only for crime prevention? Used the right way and stationed properly, they can be a very fearsome tool for marketing and advertising. Experts the whole world over are now utilizing video surveillance cameras to make better informed decisions about safety, check compliance to standards, rake in more sales, and improve customer service.
The following are some of the uses for video surveillance cameras in the business world.
1. Compliance monitoring Compliance monitoring is useful in industries where standard operating procedures have to be strictly followed. Through video surveillance cameras, managers of restaurants or hotels can determine whether or not their staffs are following proper sanitation measures. They can also check if their chefs are observing proper food handling and preparation procedures. Video surveillance cameras are also very useful in cosmetics and pharmaceutical industries. They can monitor vital parts of the production process, such as processing and packing.
2. Construction progress monitoring Video surveillance cameras mounted in construction areas allow project managers to show construction progress to clients, investors, and stakeholders. Because a construction site is hardly an environment conducive for surveillance, the cameras being used should be weatherproof. Additionally, it is recommended that you use video surveillance cameras that have infrared and lowlight capabilities, so that nighttime images can be captured clearly.
3. Performance monitoring This is the most popular use for video surveillance cameras in the workplace. With the use of video surveillance cameras, companies can keep an eye on employee's on-the-job performance and their use of company time. In addition, video surveillance helps management identify customer patterns. This is particularly useful in restaurants, where managers have to identify peak hours during the day so as to maximize scheduling arrangements.
4. Traffic regulation and systems monitoring Video surveillance technology in the form of photo enforcement, for example, helps officials recognize traffic flow and congestion areas. In some cities, camera images of streets and important routes are displayed on websites, to help drivers anticipate traffic problems.
5. Remote telepresence This use of video surveillance cameras requires that the cameras be positioned in locations not accessible to humans. Examples of these locations include the ocean, the bottom of the sea, desert landscapes, or the insides of a human body. Data from this highly specialized use of video surveillance cameras are used in various practical applications, such as solving medical problems, investigating disputes over natural resources, saving endangered species, and studying the behavior of life forms thriving in their natural environments.
6. Improved customer relations Video surveillance cameras clue management in on the type of attitude staff members are projecting towards customers. In department stores, for example. video surveillance cameras show how customers are greeted and how their questions are answered.
7. Marketing Nothing beats the performance and dependability of video surveillance cameras at compiling demographic data of malls, resorts, amusement parks, and tourist attractions. Another usage for these cameras is identification of traffic pattern. For example, a department store could use video surveillance cameras to track foot traffic so that they can position their merchandise in key zones. These key zones are places at a clothing store, for instance, that receive the most human traffic.

 

Measure and Control Human Resources Performance

The business success is about taking right people to the right place on right time. So what is the problem? Actually, if you need to manage not one, but five employees or better five groups of employees, then you face the problem of measuring and control. It's hard to tell whether one group is performing better or not, it becoming hard to compare one employees success against other one, it's hard to see the unique features of people. So what the solution is? The key metrics and key indicators, which will tell you how to manage your stuff right.
There are two approaches I suggest to take into account when thinking about human resources (HR) at your company. First, you can think in terms of process, second you can think it terms of how do employees affect the whole business.
The processes of working with employees include: hire, education, management, retire. All the stages must be processes carefully, as they could fully change your business. For instance, if you will have the best system to hire stuff, but it will be working slowly, then you will fail. If your education system will allow to train everyone, but will not allow to check the actual performance generated by training processed, then you will fail. If your best people will retire, then you will lose.
So, that's why it's really important to measure and control all processes involved into employees relationship. People who you work with, should understand what your goals are and how they will help to achieve these goals. This is the key idea of manage and control in employees management processes.
Another approach is focusing on how someone's job affect the company. It's obvious that even if someone works in a Sales then he or she will affect not only the financial part of the business by generating sales, but also all other parts.
For instance, sales person will be involved in entire company processes, such as education and knowledge sharing. This person will also work directly with customers, so he or she might not just sale, but get a valuable feedback from end users of your product. These people will also help your company to grow not just in terms of sales, but in terms of better business processes and business efficiency.
So how to measure and control HR department at your company. The answer is very simple - you should develop some key indicators that will represent company business and then pay attention to what is working good and what should be changed. There are many names for this system, for instance KPI (Key Performance Indicators) or Balanced Scorecard. The result is having the clear view of what is going to happen in company and how it will steam-line your business.
What should be the first step? Actually, I think you have already had some important information for scorecard. For instance, you have document called "mission", this is a general definition of your principles, you can some business goals, you have business processes described and formalized. What you need now is to gather all this important information into a easy to manage system, which will take in account the importance of each metrics. This system (Balanced Scorecard or KPI) will help to manage and control the performance of your HR department.

 

Asset Management - Key Part of Business Management

Most manufacturing companies have recently discovered that fixed asset management should be a key part of the success of the business enterprise. It is now realised that fixed asset management leads to economy of production and operation. This in turn can to increase in profits of 10 to 15 per cent, which cannot be ignored as it makes a significant contribution to the bottom line of the business.
There is no doubt that inventory and production management deserves the main focus of the management for effective functioning in a manufacturing enterprise. If asset management was neglected, then fixed assets were not being effectively and efficiently managed. But in recent years it has been realised efficient management of fixed assets like plant and machinery and other movable and immovable fixed assets can lead to economies of scale. Thus proper monitoring and regular maintenance of productive fixed assets will give a longer productive life. The net effect of this is more profits for the business.
Naturally in fixed asset management, the assets responsible for production, research and development etc., which have direct bearing on the productivity of the business, need to be managed more closely. There must be constant monitoring on the maintenance aspect to prolong the useful life of the asset. Even a movable asset like a vehicle needs proper maintenance. Otherwise without regular running and maintenance the vehicle can soon become corroded and useless.
Every category of assets needs a different focus of management. Fixed assets need regular maintenance to ensure normal life of the assets depending on the wear and tear on the asset. Adequate planning is also necessary for building up financial reserves over the life of the asset for replacing the fixed asset at the end of its useful life. Thus the new plant and machinery can be ordered well in time to replace the old one.
Management also has to weigh the advantage of replacing the plant and machinery and other production assets or continuing to maintain the present production assets. They also must consider from time to time whether the asset has become obsolete owing to new technological advances. In recent times, technology has advanced at a rapid pace and management has to be vigilant on this issue to avoid being left behind by competitors. Asset management also includes adequate insurance to cover any extraordinary losses due to fire and natural disasters.
A type of awakening has taken place in major industries during the past decade on the role of asset management. It has become attractive due to decreasing margins and competition growing day by day. To avoid major capital spending, companies are now developing strategies to get optimum performance from available fixed assets thereby getting increased returns. This involves proper schedule of maintenance to minimise breakdowns and consequent loss of production.
In order to have reliability in scheduling, regular planning in conjunction with various departments, at least on a monthly basis is absolutely necessary. Standards must be set as well comparative analysis within industry standards must be evaluated to determine whether the company is achieving optimum production in line with the industry. If not, then suitable targets and best practices must be set up within a reasonable time frame to reach those targets.
Logistical performance must also be evaluated to consider whether transportation costs are economical and advantages of location are met. The management tools for evaluation can be in form of comparison studies, which can set up in form of graphs and bar charts for easy visual comparison. If fixed asset performance is seen to be below par, then priorities can be fixed for the focus on improvement.
Asset management tracking is vital in large manufacturing plant and utilities. Integration of asset management with raw material and maintenance procurement systems as well as financial systems and their cost versus savings benefits must be monitored on a day-by-day basis. Senior financial officers must therefore be involved in asset management.
Depending on nature of assets in different businesses. For example, utility companies, mineral companies, oil and natural gas are having large properties as part of their assets. These have to be effectively managed and timely decisions have to be taken whether to buy or sell properties for the health of the business. Depending on their values and necessity to the running of the company, the assets can be categorized for better management.
To assist company management, there are a number of established consultant companies having qualified manpower whose help will be beneficial for asset management. They can be very effective to audit present practices and suggest best practices, problem solving and action plans. It may be well worth the expense to hire established consultants to improve performance.
Asset management data can be computerised to enable management to chalk out strategies on an overall basis. Integration of asset management systems with other financial systems would give better picture of whole operation of the enterprise. This will enable various key officials to give their timely input to top management in order to devise suitable plans. For example, government may come out with special tax incentives for certain industries to invest in fixed assets. In a scenario where management is monitoring and managing fixed assets, the Finance Manager may quickly recommend purchase of new fixed assets to take advantage of the government's tax incentive for that business.
Lastly, it is the assets of a business which enable the production and delivery of its goods and services. So when fixed assets are being purchased or replaced a few important questions arise. What is the cost and cost benefit for the business. What funds are available? Should the asset be purchased new or secondhand or should it be leased and how will it benefit the business? Questions relating to the use of the asset could be. What are the operating costs? How much skilled and unskilled manpower would be required for operation? What are the training costs involved? What are the installation costs? What is the useful life of the asset? Is it the latest technology? These and many more questions need to be asked and answered. This will ultimately factor into the long-term strategy of the business.

 

Are You Stunting Your Business Growth? (First Article Of 2)

If a company is bumping along with the same profits year after year it often lacks one or more of:
strategic growth plan
marketing plan
appropriate sales approach
project scheduling
monitored customer service
Unplanned operational processesMissing just one of these leads to wasted effort for the whole company. Sometimes with costs that are hidden by "just doing business."
For example, think of Mr. Smith ringing to report a problem with the tap on his bathroom suite...
XYZ Customer Service Agent (XYZ CSA): "Hello The Sunny Bathroom Company.How may I help you?"
Mr Smith: "Ah, good morning. I bought one of your Kon-Tiki bathroom suites and you installed it for me last week. Unfortunately one of the taps doesn't work and we didn't realise until your plumber left and we couldn't get hold of him to ask him to come back."
XYZ CSA: "Oh that's a shame. Unfortunately I don't do the scheduling for the plumber so I've no idea when he can get back to sort it out for you. I'll ring his department and find out a time and ring you back?"
Mr Smith: "Great thanks"
XYZ CSA then puts the phone down and starts to note the request. Another call comes through XYZ takes the call and then forgets to finish the note.
The next morning ....
ABC CSA: "Hello The Sunny Bathroom Company.How may I help you?"
Mr Smith: "I rang yesterday about getting a plumber to sort my tap out."
ABC CSA: "Oh. There's nothing here about that. Just give me your details..."
And of course this ties up another employee on the same problem. And is a hidden cost. Plus the customer is annoyed that he's been forgotten and is likely to tell others of his misfortune. These are all hidden effects of poor customer service.
How You Can Find Out How To Grow Your Business
Use a fresh pair of eyes. Get an outside consultant to come in and go through it.
Often the directors and owners are too close to the business and day to day work so can't step back as easily as they might like to.
That means problems get left to one side. There they fester and eat away at growth and profits.
Whenever I go into a business I always find areas that a business can grow profitably. Equally I can see where the business has unreasonable costs or poorly performing people.
Like almost anyone who goes into companies as a consultant you can find a sales approach, operational process, marketing strategy, product, service or customer type that can either be improved or needs removing.
The reason any consultant who goes into businesses can identify problem areas or those with potential is not because we're better than the owners or directors. It's because we come with objective judgment and our analysis is based on knowledge of other companies we've been in.
The other thing is that a consultant can report hard truths that must be faced without having to dress them up. In the next article I'll look at which fresh pair of eyes you should get into your business and why.

 

Are You Stunting Your Business Growth? (Second Article of 2)

Getting people into your business does presuppose that you'll take their advice!
I've only ever found two companies who didn't want to grow their business! And a recommendation I made to one of the companies would have doubled their turnover, with practically no work on their part!
You don't need to let hidden opportunities or threats stunt your company growth. It's simply a matter of having the courage to employ someone who can stand outside your business, whilst understanding its principles and give you an unbiased report.
Who Should You Employ To Act As The External Observer? To get the best from your consultant you need someone who:
Is willing to investigate the company and do the necessary analysis
Has been into at least 5-10 different companies
Has worked for at least one blue chip company as a permanent employee at some stage
Is not a specialist, such as an accountant, lawyer or banker
Not a "friend" The reasons you need these criteria to help you choose a consultant are:
Consultants can come with the "one size fits all" approach and their strategy is a very rapid visit followed by a boiler plate report. In which little that will help the company is detailed. leaving the company exactly where it was before. The positive side to this is that it doesn't cost much. The downside? It's a waste of time.
Another consultant's approach is to flood the company with bodies (so called "leveraging").
The resulting report is more likely to be tailored to the client. However, the downside is the enormous cost and as the consultancy is likely to want further work in the company the worst areas may not be highlighted as they should. Or the consultant may push their own solution, involving their resources, when there's an easier, cheaper approach.
If the consultant hasn't worked in at least 5 other companies they're unlikely to have seen how other operations run and to understand that whilst every company is different there are some common lessons that can be drawn.
Working at a blue chip means the consultant has had great training. Their approach should reflect this training. From the initial meetings right through to the final report.
Avoid specialists as often they're blinkered by what they see at a company. Yes they're likely to see at least some of the problem areas for the company. However, their relationship may hold them back from being candid. In addition they are unlikely to see the opportunities that a company is missing.
Lastly don't use a friend. Because friends may be too hard on you and your staff, demotivating you. Or they may be too soft and ignoring problems that need to be resolved.

 

Motivating People - Understanding Behaviour

When trying to read behaviour, recognise that while body language can give clues to motivation levels, it can also be misread. More concrete signals will be provided by the ways in which individuals perform their tasks: this is likely to give you the clearest indication of their motivation. Someone who works cheerfully and efficiently is unlikely to be hiding anything if they greet you with a smile. Likewise, a dour facial expression should only be interpreted adversely if combined with a grumpy "That's-not-my-job" attitude to work.
Positive motivation is often signalled by positive gestures: a smile, an eager pose, and a relaxed manner. When people carry out a task in which they are interested or enthusiastic, they may have a "sparkle" in the eyes, since their pupils actually enlarge. Confident eye contact is also important as a measure of motivation: demotivated people are less likely to look you straight in the eye. Blushing can indicate pleasure, while an increased rate of breathing can indicate enthusiasm - both of these are good signs of motivation.
Motivation can be recognised in a number of ways - look particularly for signs that your staff feel useful, optimistic, or able to take opportunities. A team in which each member looks after the others' interests is likely to be a good source of motivation. Look for evidence that your staff are satisfied in their jobs rather than anxious or frustrated. If you find no such signs, ask them whether they are satisfied. You can also establish a good idea of an individual's level of motivation by their attitude towards work. The statements below are all indicative of motivated staff members:
They freely volunteer effort and ideas, as well as other contributions;
They always react well to requests and new assignments;
They work to achieve, not "to rule";
They seem to be happy at work;
They always respond frankly to questions.
Reducing Demotivation:
Workplace demotivation for many people tends to be caused by poor systems or work overload. Very clear signs of demotivation include high levels of absenteeism and quick turnover of staff. Recognising demotivation is pointless unless you intend to eradicate its causes. Remember, too, that poor behaviour and underperformance are not necessarily signs of workplace demotivation. If demotivation remains even when the situation is improved, it may be due to personal problems.
Demotivation may not always be signposted, but look out for defensive, protective actions, such as folding the arms when seated or clenching fists involuntarily. Inattention, the first sign of demotivation, may be seen in facial expressions, though tapping fingers and restlessness are also negative indicators. A sloppy, "couldn't-care-less" attitude and a lack of enthusiasm for work may be observed. A monotonous tone of voice may tell of boredom, but be aware also of signs of aggression, such as chopping motions of the hand or pointing a finger in an accusatory manner.
Measuring Morale
It is important to measure workplace morale on a regular basis to discover of any why staff are experiencing problems. However, if you experience a rise in departures, suspect that motivation is low, or find that absenteeism is increasing, do not wait to take the workplace "temperature": do it now. You may wish to try using employee attitude surveys; these give a broad indication of morale but can be lengthy and costly. Read the signs from your own talks with people, such as annual appraisals, or set up focus groups or one-to-one interviews. Another way to measure morale is to take a random opinion poll. Remember, however, that if you investigate staff attitudes you must act on the findings, or risk causing further demotivation.
Points to Remember
Measuring the workplace morale of your staff should be a continuous process
Lack of motivation may have many causes - do not jump to conclusions about these
Enquiring into attitudes carries with it an implicit promise of reform, which must be kept
You may not always get honest responses when questioning demotivated staff about their motivation levels
Exit interviews with departing staff can give valuable clues as to what is right or wrong with your motivational management.

 

How to Love Your Employees

Late to work, time wasters, lazy, or simply not showing up at all. As a manager or an employer, these are the issues facing us. Why? In many areas of the United States, the education system is so poorly funded that one teacher can have up to 40 children in the classroom. How many times have you seen someone walking with traffic instead of against it, as is proper. Even college graduates often lack the common sense skills to accomplish what is needed of them in the workplace. With all these challenges, how can we learn to deal with and, better yet, love our employees?
We must do what the social system has not done, equip them with the necessary skills to succeed. This means education. If your employee is willing to spend the time on higher education, why not pay for it. You argue that you can’t afford it. Can you afford stupid employees?
Still, if you are truly strapped for cash, why not teach your own supplementary education programs.
Many logistics companies have in house training programs employees can take advantage of. In my late twenties I learned to drive tractor-trailers, pull double and triple trailers, haul hazardous materials, and become a manager all through these in house programs. Employees need stimulation, and you must provide it for them.
A great way to do this is also through motivational speakers. Many times there are speakers just starting out that are willing to do short hour seminars for very inexpensive in return for the hope of a good reference. Call your local speakers bureau or the chamber of commerce. At least one motivational session per month can do wonders for your employees.
Even better is using good speakers inside your own company to provide presentations. All managers should have the ability to speak before an audience and doing so regularly is great training in itself. You may start them out with 10 to 15 minute presentations highlighting how well the company is doing, how valued the employees are, or how great it is to work at your company.
No one likes a complainer. However, open communication is vital in managing employees successfully. Do you want to find out what everyone is saying behind your back? Don’t be afraid to take a survey with no names attached on your management skills. You may be shocked at the opinions, but instead of being upset, use them to improve your skills and address the pertinent issues on your employee’s minds, whether relevant to you or not.
Of course, we have all had that employee that just won’t show up on time, is always in everyone’s business, or is just downright slow. You can dock their pay, write them up, warn them, or fire them. But there is a secret that is so much easier. Reward them. Yes, that’s right, reward them. Hire your employees at one dollar per hour cheaper than you are willing to pay. At the end of each week, line up all your employees. To those who were on time, didn’t complain, and accomplished their assigned tasks, hand $40. To those who did not, simply say you are sorry, state the reason why they are missing their reward and tell them they can try again the next week.
Once I had an employee who was a hard worker but consistently late. The first week I started this program, I handed everyone a forty dollar check – except him. On the following Monday morning, he was five minutes early. After telling his wife what had happened, she woke him up early, dressed him and personally drove him to work so that he would be on time. Needless to say he was never late again.

 

Change Management - 4 Steps to Effectively Manage Change

The most important ingredients to successfully manage change in an organization are: executive sponsorship, effective communication, and accountability. All of these are direct responsibilities of management. Thus, unsuccessful change initiatives are most frequently caused by poor management performance.
It’s relatively easy to blame the stubborn grunt workers on the front lines for digging in their heels and resisting change. Much attention is placed on effectively dealing with their emotional response to change. While that is certainly important, it’s really the managers that require much more of the focus. If they are not on board, there is no chance that the individual performers will be.
Managers have their reasons for resisting change. After all, they are people too. They are uncomfortable with change. Most are strong willed as well and are very confident that proposed changes will be either ineffective or simply won’t work at all. Furthermore, there is frequently not a high degree of trust among management. Change initiatives have been unsuccessful so many times in the past, and no one has been held accountable. As a result, managers just play along, wait until the winds of change blow over, and see where the dust settles.
It’s not so much the overt expression of dissatisfaction, rather, a subtle remark or reaction, an inability to articulate the reasons for the change, or simply ignoring a proposed change that can have a huge negative impact on team members and quickly torpedo an initiative. If managers throughout the organization are not engaged, they will not do what is necessary to get their direct reports engaged.
So, what is the solution?
1) Upper management needs to solicit input on the proposed change from managers and they in turn must do so from the other employees. Those that disagree with aspects of the approach should not be beaten down for expressing valid concerns. Rather, input should be considered and adjustments should be made as appropriate. Managers and individual performers must be part of the solution.
2) Upper management must make the change a priority and reflect it with their actions. We’ve all heard about the importance of executive sponsorship. Executives need to consistently put their money, words, and actions where their mouths are. When change is on the horizon there must be adequate resources (dollars and people) to effect the change. Too often attempts to cut corners sabotage the change from the start. For instance, tapping a manager with a full time job to project manage a large initiative in his/her spare time is a recipe for disaster. Buying everyone a copy of Who Moved My Cheese and then slinking away into the executive suite won’t do the trick either.
3) Communicate, Communicate, Communicate. It is so critical. Open and honest two-way communication must occur early and often. Expectations must be clearly set. Everyone involved must be aware of the change, why it’s being done, who is impacted and how, what the roles and responsibilities are, etc. The message must continually be reinforced throughout the organization by the multiple levels of management. Feedback must consistently be sought and acted upon. Measurable desired results must be spelled out at each level of the organization to include repercussions for not achieving the results.
4) Plans must be put in place (with contribution from team members) to achieve the desired results. Progress must be reported, and those involved must be held accountable for the results.
With the above in place, the majority of managers will be won over, and they in turn will do their part to gain the support of the rest of the employees. The result will be the successful implementation of change initiative number one. With each subsequent win, trust will grow, change will come easier, and the many benefits of innovation will follow.

 

Mandatory Meetings No More - How to Motivate Without Ultimatums

Using ultimatums like mandatory, must, and have to will create resistance in the workplace. People resist being made to do anything they feel isn’t worthwhile. Instead of forcing, try these five motivating tactics.
Trust
Involve
Measure
Recognize and encourage
GrowTrust
The number one objection I hear to hosting ‘non-mandatory’ meetings is, “How will the employees know they have to come?”If you can’t trust your employees to know how to do their jobs, then you may have bigger problems than low meeting attendance. Most meetings are so poorly run that employees don’t want to attend because they don’t want to waste their time. Would you trust someone who wants to waste your time? According to Merriam Webster, a trustworthy person is ”a person on whom one relies.”Here are a few simple ways to make sure your employees know you can be relied on.
Give people your undivided attention, or schedule a time when you can.
Keep your promises.
Lead by example, and be aware of double standards.
Be honest with priorities.
Assume your employees have the best intentions.Involve
The best ideas about performance improvement usually come from the one doing the job. Ask your employees to submit ideas; you’ll be amazed at their initiative. Think that you can do it better than them, and they’ll let you try. Involving your employees is easy if you follow these guidelines.
Distinguish different methods of decision-making, and be clear, at the start, which method will be used.
Connect each individual’s tasks to the organization’s success.
Build a values culture; not a flavor of the month culture.
Seek to understand; acknowledge all ideas.
Admit when you “don’t know.”Measure
Have you ever played cards for fun? Have you ever played cards for money? They’re two different games. It’s more fun to play when someone keeps score. Avoid immeasurable instructions. Here are a few of the most common.
Make it happen.
Do whatever it takes.
Be more: efficient, productive, organized, friendly, agreeable, positive.
Do better.
Watch your tone.
Get along.Instead, use measurable instructions that include dates, times, countable numbers or percentages, money earned or lost, along with specific observable behavior.Some ideas for keeping score are:
Eliminate the immeasurable from job descriptions and performance reviews.
Calculate average times to complete most job tasks.
Identify scripts and vocabulary to use and to avoid.
Track timeliness of deadlines.
Quiz or assess employees on product, company, and industry knowledge.Recognize and encourage
“There are two things people care about more than sex and money: recognition and praise.”—Mary Kay The way to motivate is to validate.
“Treat a man as he is, and he will remain as he is. Treat a man as he could be, and he will become what he should be.” –Ralph Waldo Emerson
When you encourage your employees, it brings out their potential. There is an infinite number of ways to say, “good job, or thanks.” Here are a few:
Write “way to go” messages on several post-it notes and scatter them around your employee’s desk.
Have fun, inexpensive trophies that rotate monthly to best team-player, most timely, best attitude turnaround, etc.
Have a wall of fame with client letters or other samples of employee success.
Use a changeable neon sign to spread the word about an employee’s good deeds.
Equipment or office furniture upgrade award.
Management does 1-3 hours of employee’s job for a day.
Create a “why you’re so great” plaque that lists your top employee’s 5 strengths.
Management acts as butler for the day and serves employees coffee, lunch, etc.
Call your employee’s mother to tell them how great the employee is.
Have chocolate bars custom made with employee’s name on them.Encouragement starts with seeing what your employees are capable of.Here are a few hints to help you spot potential.
Employees who are normally shy will be more outgoing when performing a task they like.
Employees who normally complain will stop when they’re doing something they enjoy.
Employees who are normally indecisive seem more confident when performing a job they are good at.
Employees who normally boast or try to control situations will seem more subdued when working on something that makes them feel good.
Employees who normally do the minimum work will give more time and creativity when they like what they’re doing.Grow
“The illiterate of the future are not those that cannot read or write. They are those that cannot learn, unlearn, relearn.”—Alvin Toffler
Growing your employees will grow their commitment to your organization. As a trainer, one of the objections to training that I hear most often is, “I don’t want to train them for the competition.” That may happen. What if you train employees and they leave? On the other hand, what if you don’t train employees and they stay? Companies with the highest retention are also the companies who encourage growth. Giving your employees knowledge helps them see different perspectives. This will foster creativity, innovation, and flexibility to change, as well as prevent stagnation. Try these inexpensive ways to grow your biggest asset—your employees.
Ask employees to pursue whatever interests them, and relate that knowledge to improving job performance.
Encourage membership in local clubs or associations like Toastmasters.
Volunteer with your team for a local cause. (This will foster rapport and trust too.)
Have employees give five-minute presentations on topics that are job-related, e.g., communication, change, customer service, and leadership.
Subscribe to relevant newsletters or trade publications.Once you trust, involve, measure, recognize, encourage, and grow your employees, you’ll be amazed at motivated they are. You’ll never have to have another mandatory meeting again.

 

Key Responsibility Areas for Assistant Manager – Generalist HR

Key Responsibility Areas for Assistant Manager – Generalist HR
Assistant HR Manger is one of most important key who plays an very important role between manager and the internal customers, along with the basic decision making, recruiting, grievances handling, attrition control, maintaining databases etc. Following are the major key responsibility areas for Assistant Manager :-
1. To be responsible for implementing the assigned areas of responsibility within the HR function.
2. To maintain the database and updates regularly.
3. To generate reports based on database and updates.
4. To clarify employees (internal customers) policies, procedures and processes.
5. To assist in quality improvement initiatives of the areas of their work.
6. To handle employee grievances (must) properly.
7. To run the Performance Management Cycle is the key Responsibility Areas for Assistant Manager – Recruitment.
8. To have/create liaison with the business to develop the manpower plan for the company.
9. To coordinate and manage recruitment at various levels and finding ways to meet the ramp up plans for the organization.
10. To give huge attention on campus hiring if doing mass recruitments.
11. To take care of the on-boarding and induction for the new hires.
12. To handle training (as and when required) Common Points for both Assistant Manager – Recruitment and Assistant Manager – Generalist HR Accountability & Authority Levels.
13. To be accountable for delivery of expected assignments/results.
14. To keep the department's machinery well oiled and efficient.
15. To take initiative for improving systems and processes.
16. To take ownership for meeting the information needs of internal customers Decision Making.
17. To take routine decisions that will further the cause of the department or function.
18. To assume responsibility for problems brought to their notice until assigned to the appropriate problem owner. Internal & External Interface.
19. Should have appropriate knowledge about benefits administrators (PF, Gratuity, Superannuation, Insurance, etc) or training consultants, recruitment consultants, etc.
20. Should have extensive depth of Knowledge in contemporary HR practices and processes including performance and reward management.
21. Should have excellent knowledge of the market conditions impacting HRM.
22. Should have excellent people management skills.
23. Should have skills in designing HR Systems and processes.
24. Should have skills to control attrition and maintain retention.
25. Should have excellent working knowledge of MS Office.

Thursday, April 19, 2007

 

Recruitment and Selection

One of the most important decisions facing any organisation is recruiting the right people. Some organisations appear to be highly effective while others struggle. So how can you improve in this area?
Train Those Recruiting
Strange as it may seem, many organisations don't make the investment to ensure that those faced with one of the most important decisions have the right skills.
Be Clear On What You Are Looking For
If you are going to get the right person for the job, you need to be clear on the skills, qualifications, experience, personal attributes and qualities that the right candidate will have.
Select The Most Appropriate Source For Securing Applicants
The key point here is to be sure you are choosing the right place to advertise. Sometimes a local newspaper will work. At other times, you may need to go to specialist publication or a recruitment consultant.
Establish A Clear Framework For Shortlisting
You might for example use a scoring system to shortlist applicants.
Consider The Best Option For Selecting Candidates
In some cases you might just go for a traditional interview and possibly add in a presentation. Other times you might want to use assessment days.
Remain Open Minded
Often people jump to conclusions about candidates within minutes. Remember some of the best candidates might take a few minutes to get warmed up so don't discount people too quickly.
Remember It Is A Two Way Choice
Recruiters often forget that the candidate is also making a choice about whether they want to work in the organisation.
Be Professional
When interviewing you are representing your organisation, its values, beliefs. Today's candidate if they don't get the job could be a customer or supplier in the future so give the best impression you can.
Give Feedback
Good candidates spend a lot of time preparing. Good employers will take the time to provide good feedback to successful and unsuccessful candidates.
Review
Every time you are involved in recruiting take time to reflect on your performance and process. What worked well? What would make it more effective?
Remember at the end of the day you are making a major investment decision. Take the time to make it as effective as possible.

 

Accountant To Leader

Let’s face it, Accountants are amongst the most talented people either working for or providing services to businesses. They have successfully got through a set of demanding and competitive exams and got a whole lot of knowledge. They have huge potential yet so often never fully exploit it. Why is that? From my own experience, there are a number of reasons:
1. They focus their development on technical accounting
2. They don't get clear on what they want to achieve professionally
3. They spend most of their time producing numbers rather than contributing to business success. An article in the December 2006 edition of Financial Management suggests as much as 80% of their time is spent producing numbers
4. They don't promote themselves and the contributions they can make. It is all very well having lots of people who can come up with creative ideas. Good Accountants can help non financial managers translate it into something tangible
5. They don't ask the business what they want and build a service plan to deliver it
So how can Accountants start making the transition to leader:
1. Get clear on what their professional goals are. This includes the level they want to get to, the type of organisation they want to work in, salary
2. Start to use CPD as an opportunity to build a long term personal development plan
3. Look for ways to change practices so that the time spent producing numbers is reduced and time is released to spend with managers and in the organisation
4. Start letting non financial managers know the type of contributions they can make and do two or three things to demonstrate credentials to the cynics
5. Conduct a customer survey so that the service you offer fits with the needs of the organisation not what you think they need
Return on investment is a key measure for business decisions. How are you doing at getting a return on your investment in becoming an accountant?

 

IS CRM THE BEST TOOL EVER CAME INTO EXISTENCE -- NOT REALLY

CRM--It is Not a Easy Task
CRM integrates people, process and technology to maximize relationship with all Customers. CRM is comprehensive approach that provides seamless coordination between all customer facings functions. CRM increasingly influence internet.
But as I am going to mention below CRM exactly doesn't solve the customer queries or does it build relationship between customers and company in the long term relationship.
CRM hasn't actually brought the sales teams, marketing departments, R&D, or customer service departments any closer to the customer at all! Technology is a poor substitute for the human voice and social interaction.
Let me first tell you that there is a serious problem with the oxymoron Client Relationship Management. If Intimate loving families and friends find it difficult to manage their relationships how is a company that sees its clients only a few hours each year going to manage the relationship?
Building layers of separation between the company and the client, software programs, auto responders, marketers, voice mail systems, web sites, and self serve check outs are the death of communication between a business and its clients. Most people won't try to navigate the tangle to tell you that they are dissatisfied, they will just leave...and you'll never know why because they won't leave a message on your voice mail a note.
Marketing managers spend a lot of time gathering information on their customers, information that, unfortunately, is rarely analyzed and even more rarely put to any practical use to improve the service to the customer. This field of activity is called Customer Relations Management (CRM) and is implemented with the aid of a great deal of money and even more time in many companies. But what is the use of gathering all these data and storing them if they are not used to provide an even better service for the customer?
But at the same time if you see frustration on a clients face, you can act immediately to turn a problem into a success. Some of the most loyal customers come from a bad situation turned surprisingly good.
Let me give you an example which happened with me. Last month I ordered for pizza at the famous pizza delivery house located in heart of the Chennai city. Because of mishandling of the package, when the delivery boy was handing it to me the pizza got damaged. When I called up the manager and asked him what should be done with the spoiled pizza, he immediately remade the order and delivered it to me at no extra cost. After that I never looked out for another pizza house and I was so much impressed with that gesture from the manager that I started ordering every weekend. The pizza house certainly got its money worth on that INR 300.00 investment. And if I had to replace that pizza myself it would have had a totally different outcome. CRM cannot be credited with the success of the managers handling of this problem.
Customers are really hungry for those pleasing little experiences when they spend their money, and although everyone complains about unfriendly service and moans that businesses should be more customer-oriented, the situation doesn’t really seem to be improving. And this has negative consequences, both for the customer and for the provider

 

How to Get Consistent Results From Your Employees

If your team can’t get meet the established objectives, your days as a leader are numbered. It would be great if your employees came to work each day, happy, ready to work, and performing at their highest level, but this usually isn’t the case. Your job, as a leader, is to get a group of diverse professionals to work together to achieve a common goal – regardless of the obstacles you face.
The following steps can be implemented immediately. They should not require approval from higher up, any additional resources, or training on your part. This is not one hundred ways to motivate your employees. While those suggestions are certainly helpful, your employees aren’t going to produce great results because you bought them a cake on their employment anniversary. They need a strong leader who will provide support and guidance. What you can expect to see in return is a team of employees who produce consistent, positive results. And that, is good for your career.
1. Acknowledge the value that your employee’s provide to the organization. Every job in the company adds value. For any job you think holds little value, consider what would happen if no one performed those duties.
2. Treat your employees with respect. This should be obvious, but unfortunately, it needs to be said. Criticism is expected at work, but it should always be given constructively and at an appropriate time – never in front of others. Also, remember to recognize your employee’s accomplishments and not just their mistakes.
3. Communicate clear expectations. Every employee needs to understand exactly what is expected of them from the start. If you don’t have a formal performance appraisal process in place, establish and communicate your expectations and the affect their performance will have on their salary, as well as opportunities for advancement.
4. Create a plan for improvement. Once your expectations have been communicated, give your employee’s the support that they need to achieve their goals. Give regular feedback do that your employees know where they are performing well and where they need improvement. For those areas needing improvement, create a development plan, together with your employee, outlining specific steps they can take to improve their performance. A great time to do this is immediately following a performance appraisal or as soon as you notice that they aren’t meeting expectations.
5. Remove roadblocks. Occasionally, your employees will encounter roadblocks that hinder their ability to get the job done well. Do what you can to remove these barriers or help them find an alternative solution to the problem so they can focus on meeting their goals.
6. Model the behaviors you want to see in your employees. Your attitude and behavior set an example for those you lead. Is your work ethic lacking? Do you view deadlines as flexible? Your employees will look to you when there is a question as to what is most important. Hold yourself to high standards and your employees will follow.
7. Take a genuine interest in your employee’s professional goals. High-potential employees often have ambitious goals. Encourage them to develop their skills and gain new experiences that will help them advance their careers.
8. Encourage teamwork. I don’t know much about basketball, but I do know this – if one or two players are trying to make all the shots on their own, they won’t score as many points as a team who works together. As a leader, you will be judged on the performance of your team, not just one or two players. Remind everyone that you are first and foremost, a team. Each person will get an opportunity to stand out if they leverage their talents and work together.
9. Remember that your employees have a personal life. While there are times that it may be necessary for work to encroach on your personal life, try not to make it a habit. Everyone needs time away to recharge their batteries, spend time with people they care about and attend to personal matters. This time off will allow your employees to give their full attention to getting results when they are at work.
10. Weed out the non-performers. We all deserve to be successful at work. If you have implemented the suggestions above and you still have employees who are not performing up to par – it’s time to have a candid conversation with them about their future. Is this really where they want to be? If they are committed to this career path, put them on a performance improvement plan and coach them through their development. If not, help them determine where their strengths can be of value, within or outside of the organization.

Wednesday, April 18, 2007

 

Are You a Turtle?

One of the most ancient creatures on our planet is the turtle. They have survived changing environmental conditions for millions of years while many other species have gone extinct. Turtles can be very safe and secure when threatened by retracting their head, tail, and legs into their shell to ride out many dangers of life in the wild. But, if they stayed safe in their shell, they would eventually starve to death and would not be able to create subsequent generations. For turtles to flourish, they have to accept the risk of living and give up the safety of their shell, stick out their necks, and move forward… or perish. It’s the same for businesses.
Businesses are just like turtles. They only move forward when they accept the risk of existing in a competitive marketplace and then change to meet the needs and desires of the future. It may be uncomfortable, it may be terrifying, but it is necessary.
Successful businesses manage change, for the most part, very carefully. They are continually taking the pulse of their customers and their targeted prospects. They continually ask the question, “What are my customers and prospects wanting and needing? What will they want and need in the future? How can we change in order to have the right products and services for them and still continually strengthen our brand, our reputation, and the qualities we are known for? They are balancing the safety of the shell against the risk of moving forward.
In large companies there are workgroups or teams of turtles that are sticking out their necks by working continually on answering those questions, developing new products and services to offer in the future. Few small companies have the luxury of being able to devote these resources to the process of change so when the subject of “the future” comes up, they retreat into their shells and deal with the issues of “today” where they feel safe and comfortable, not realizing that they are facing the very real possibility of becoming extinct as the world passes them by. So stick out your neck but do it carefully.

 

How 'Hiring Now' Is A Hint You Have Problems

Advertising to those already sold on the McDonalds ethic is not a bad way to get free publicity for their recruitment needs. Indeed if you ever have the need to recruit, pitching adverts at where your customers can see them is a great way to get employees that fit your values and business niche.
Why were they advertising at all? How is it that somewhere needs to ensure that they have a steady flow of employees inbound, with all the cost- penalties that entails, rather than people who stay?
In the case of McDonalds, they probably have a higher turnover of employees because of the nature of their business. Many part-timers; lots of young people; students coming and going as they pursue their education (not to mention financial needs!).
In other organizations, where they find the need to recruit regularly, this in itself should be a sign that careful consideration needs to made about the symptom - regularly needing to recruit - as well as any other factors that might indicate an environment where employees leave, regularly.
Where there is a high absence level; high turnover; a higher than expected level of customer complaints, for example, these all add up to indicating that there is potentially a far greater malaise. And that is much more likely to need closer scrutiny than just fighting the high turnover fire.
Time to get real clear on just what bugs your people - what is irritating them sufficiently that they will leave you for something else. And remember, those who leave give you real evidence - what about those who stay - and deliver way below what you would want them to.
From these people you get no hint that they are just not working as effectively as they might. And that's worse!
One challenge is, well, just what is high turnover? In many larger organizations, there have benchmarks or peer businesses that can be easily measured against. If not, a great way to check how you are doing is by a rolling average. add 12 months together and divide by 12, updating each month as you go.
Then the challenge is to beat the rolling average, by taking small steps to hang onto your people. In larger organizations, get a few of your team involved in heading off issues that are likely to irritate your people.
Better still, get individuals for all levels within the organization, team or department to form a working party, with explicit conditions that all are to be treated equally and listened to equally, creating collaborative solutions to the issues uncovered.
Bottom line is, the more you know about what is annoying your people - even little things - the better you can respond and retain your people longer.
Of course, only you can decide whether you listen hard enough - and respond constructively enough - to what you hear from them.

 

CEO's are Linked to Their Supply Chains

CEO’s are linking strategically into their supply chains. Their supply chain is the best place to make the most of CEO effectiveness in product needs, real savings opportunities, ultimate customer satisfaction and therefore shareholder value. New technologies, changes in asset provider capacities, transportation management options and difficulty in organizations overcoming paradigms are making the CEO’s involvement in their supply chain success critical.
The supply chain is the movement of raw materials and finished products, impacting purchasing practices, manufacturing efficiencies, inventory carrying costs, departmental optimization, product value differentiation, business growth and ultimately marketplace viability. Most businesses underestimate the true costs, much less opportunities of their supply chain.
CEO’s who rely on the silo functionality of their managers often do not see the sub optimization of internal departments. Competition for scarce resources, missed opportunities in controlling costs, dynamic process efficiencies available in the supply chain, new value add technologies, leveraging greater buying power, impact of old relationships with inefficient transportation providers, passing on higher costs with declining deliverable values, are just a few issues where the vision of the CEO is needed. Instead of managing the supply chain as a departmental function, real savings and value await those who incorporate leading edge processes across all departmental functions to optimize spend, value, growth and profitability.
New transportation management companies are emerging with business models that address supply chain efficiencies on contingency basis. Loaded with leading edge technology, dedicated account management teams to monitor deliverable values and unparalleled ability to leverage spend savings, these new transportation management companies are growing at triple digit percentages. Unfortunately, either past experiences with unfocused providers or relying on single departmental management has limited companies from increasing sales and improving their bottom lines with their supply chain.
Purchasing managers and logistics managers are unable to leverage savings beyond current company scale nor able to engineer or afford the technology for real time supply chain visibility on their own. The silos of functionality in business are often good at meeting their metrics but unable to create new approaches to incorporating supply chain opportunities across all departments. Only the leadership of the CEO can create the vision of engaging new resources and technologies that can improve the entire organization’s deliverable results.
The complexity of transportation provider choices, varying market reach and multiple customer needs, call for a new approach in using a focused transportation management company to optimize the value of their unique supply chain. To only require the best providers with the lowest prices set up purchasing and logistics departments to bid, renegotiate or partnership for the best of a mediocre bunch of commodity providers, leaving value and money on the table.
Without losing control of day to day provider selection, smart companies are outsourcing the negotiations to a new class of transportation management company that can guarantee spend savings, superior transit deliverables, real time visibility of supply chain across all department functions and provide dedicated account management teams accountable to unique departmental needs. Not engaging your potential leaves the company vulnerable to competitors who recognize the supply chain can be leveraged to add value, grow business and improve net profits.
The clear trend in supply chain management is this new breed of focused providers who can leverage greater spend savings, develop customized, scalable real time technologies across all functions and add dedicated account teams to manage the transportation providers. Portfolios loaded mid and large size corporations, with best practices and industry specific case studies, these transportation management companies can cut through the jargon of supply chain applications and deliver measurable results. The CEO must create the vision of new possibilities, facilitating his teams to achieve greater savings & value, with more control over their supply chain, real deliverable results for employee job security and shareholder value.
Old asset players in transportation are either one dimensional in capability or try to leverage the illusion of value with their own spin on limited capabilities and risk adverse thinking. The emerging transportation management companies are lean, bureaucracy free, accountable to you and at no cost as they contingency based. Despite what asset transportation providers present in poor yields, inflated fuel costs, labor and health care concerns (like manufacturers/distributors do not have the same challenges?), the right transportation management company can still create guaranteed savings of at least 10% of current spend, bring value add technology for supply chain visibility as well as dedicated 24/7 account service teams to inspired manufacturers/distributors.
The complexity of asset transportation provider systems, varying costs by product/lane, limited technology and no doubt unsatisfactory past experiences, have stymied manufacturers/distributors on how to proceed in maximizing supply chain efficiencies. Only this new class of transportation management companies is capable of delivering the right provider solution, for each link of your supply chain, for the best available value & cost, with total visibility and accountability.
While there are many opportunities and duties for today’s CEO, no other area of their business will bring the greatest value return for their time investment than their supply chain. Reaching out to these unique, no cost, and no risk, transportation management providers will certainly be worth their time as employees, customers and shareholders will no doubt agree.

 

Calculate Brofit Breakeven Using Goal Seek

Breakeven is a financial term to describe a business or project where the sales revenue is equal to total expenses. It is simple to calculate if the expenses incurred are fixed, i.e. it does not change as the revenue changes. But in most projects/businesses, this is not the case. The expenses usually make up of a fixed component and variable component.
The existence of variable expenses complicates the calculation of breakeven point. This is because the variable cost will increase as the number of units sold increases. The answer can be calculated by working out the total gross profit of the unit sold to be equal to the total fixed expenses.
If the unit cost of the variable expenses changes not by equal amount with every unit sold (could be due to step cost, i.e. the cost increases only when it reaches certain quantity, e.g. quantity discount given), then the breakeven calculation would become much more complicated.
In the example below, the net profit decreases by $72 because the step cost increases from $150 to $250 when it hits the 20 unit mark. Then the profit increases by $28 when the quantity sold increases from 20 to 21.
You can use Excel to create multiple columns to find out the breakeven quantity for the project. And Excel can replicate the model quickly if you know how to use absolute reference to make the formula reference to the unit value column as the model is coped across columns.
But there is an even easier way to find the answer. That is to use Goal Seek, a function provided by Excel. Here is how to use Goal Seek to find the breakeven point.
From the menu, select Tools -> Goal Seek.
Fill in the boxes as shown below:
Set Cell is reference to the net profit cell D15.
To Value is to instruct Goal Seek to set the net profit to zero by changing the value in certain cell, which in our example is the quantity. (You can use goal seek to find out other net profit targets too)
Click OK and Excel will return the status of test. In our example, a solution was found. The quantity is 52.
Note: If Goal Seek cannot find a solution the first time, you can try again. You may be surprised to find a solution when you run Goal Seek the 2nd or 3rd time

 

Accountant To Leader

Let’s face it, Accountants are amongst the most talented people either working for or providing services to businesses. They have successfully got through a set of demanding and competitive exams and got a whole lot of knowledge. They have huge potential yet so often never fully exploit it. Why is that? From my own experience, there are a number of reasons:
1. They focus their development on technical accounting
2. They don't get clear on what they want to achieve professionally
3. They spend most of their time producing numbers rather than contributing to business success. An article in the December 2006 edition of Financial Management suggests as much as 80% of their time is spent producing numbers
4. They don't promote themselves and the contributions they can make. It is all very well having lots of people who can come up with creative ideas. Good Accountants can help non financial managers translate it into something tangible
5. They don't ask the business what they want and build a service plan to deliver it
So how can Accountants start making the transition to leader:
1. Get clear on what their professional goals are. This includes the level they want to get to, the type of organisation they want to work in, salary
2. Start to use CPD as an opportunity to build a long term personal development plan
3. Look for ways to change practices so that the time spent producing numbers is reduced and time is released to spend with managers and in the organisation
4. Start letting non financial managers know the type of contributions they can make and do two or three things to demonstrate credentials to the cynics
5. Conduct a customer survey so that the service you offer fits with the needs of the organisation not what you think they need
Return on investment is a key measure for business decisions. How are you doing at getting a return on your investment in becoming an accountant?

Monday, April 16, 2007

 

World-Clock - What Time Is In Japan Now?

Computer clocks are they for fun or for profit? I guess both. If you are doing international business, then I'm sure you'd like to know what the time is now in Tokyo, I know it's easy to calculate the time difference, but I guess it's not what most people like to do. That is the reason why most market traders put the analogue clock on the wall to see what the time is.
People like to have visually appealing clocks and it is confirmed by what Microsoft company is doing now. Old days there were just clocks in system tray, telling the time in format "10:41", for now in Vista you will find nice looking analog clock with looks more like wrist-watch clock that digital clocks.
Also, it's expected clock to have an alarm, to warn you about some specific date or time. Alarm can be configures to produce sound, run some program or do whatever they can to let you know about some time.
Clocks should not be ugly, so there are many analog clocks with custom designed skins, which are very nice looking. People like to put clocks like these on the computer desktop and share them with their friends.
By the way, why not to put expensive real clock on your work desk? If you have a large work desk and have enough money to buy a branded clocks then sure, it's a good idea, but you will not take it with to some business trip and somewhere else. So, people prefer to install clock software on their laptop in order to have a quick look at the clock face before calling to the Tokyo in the mid-night.
Accuracy! I'm sure your heard about atomic clock, this kind of clock is as accurate as we cannot even imagine! Why not have atomic clock at your desktop? Actually, it's very easy, just pay attention to the time synchronization feature in the clock. If it works properly you will be able to synchronize your computer clock with atomic time servers available worldwide.
Finally, people tend to buy some cheap copies of know clock brands, it is actually a bad taste, why not purchase an inexpensive computer clock, which will look like wrist-watch or be a computer screensaver or will just tell you what is time now in Tokyo.
As for choosing clocks real or better computer clock, pay attention to the following - clocks must be accurate, i.e. have an atomic time synchronization, they must have some reminder or alarm to keep your organized and for sure, they must be very nice, so you will be happy to should them to your friends.
If you are looking for clocks that will solve some specific task for instance will show the time in different cities all over the world, then consider searching and using so called, world-clock. There are different versions of world clock, so show the time as digits and some show nice-looking analog clocks. It's up to you what to choose.

 

Automate Your Quality Assurance

Quality assurance is a wide range of methods which provide businesses with expected results. It's know that working with quality is one of the possible way to improve the product and as a result number of products sold. It's a good idea to improve quality assurance with information technologies, getting tests results as an electronic document will enable improve the total efficiency of quality service.
The key idea about improving quality assurance with IT technologies is automation. You need to have attention of your employee only in some certain cases, where it's actually needed to do a human check. The task is to automate other processes, which can be performed by computer.
Your tactic and strategy depends on your goals, size of your company, tests scale, but the most common approach for building testing system will include three steps. Researching the object of the test, suggesting and automating test affords, actual test performing and reverse analysis of performed tests. Let's pay attention to every aspect of the test.
First, it's important to research carefully the object of the tests. It can be some computer-related product, for instance software. Then it's important to identify the functions which should be tested in order to evaluate the product performance. There are a different approaches to tests, some should just answer the question "If it works?", others should answer the questions "How good does it work?".
If you deal with some real-world object, then it's obvious that you will need someone help to check the object. But it doesn't mean that you will not be able to automate testing. First, it is easier to test if your tester will have a list of items that should be tested together with description, how to test information. Then some computer software installed on PocketPC can guide the man trough the testing process and suggest a way to put down his opinion of the certain item.
It is important that results of quality assurance tests should be represented as a report, as a single file which is easy to share with others. The most common format for this kind of files is the number of test case together with test description and the values which was obtained. If quality assurance manage have this file, then it would be easy for him to compare actual test results with some key report file.
Actually, here some easy to implement automation is possible. If you have two versions of the test document, one the key document and another the tests results document, then you will be able to pass these documents to some third-party compare utility to perform the comparison. The most popular compare tools suggest a way to automate this task with command line interface.
What to do after the actual tests were designed and performed? It is task to do a reverse analysis. Try to think about tests as a possible opportunity. Try to find some opportunity which will make your products more reliable. Quality tests should not just answer the question if it works or not, they should help you to create a better product.

 

Executive Skills - 7 Critical Upgrades for Personal and Professional Use

These are tricky times make no mistake. CEO’s have a 90 day or less window to show results which makes sense given the speed of time but not when placed in corporate culture and working environments distracted by superficial symptoms of a deeper dynamic.
Global change activates a subtle, typically undetected dynamic, putting pressure on the cultural context. It is imperative to see what is at work beneath the surface otherwise it is easy to do what has always been done while expecting different results. Upgrading existing skills assists in two ways:
1) widening of the perceptual lens to see how the global dynamic creates what is on the surface and
2) accessing insight to know what changes will create the desired result no matter how complex the situation is.
There are three groups of skills that can heighten the effectiveness of corporate leadership. Samples are provided in case you want to try this out:
Sensing skills to gather information:
We typically rely on the mind and ideas. Since the origins of performance are not visible it takes a strong sensing skill to avoid the temptation to do what has always been done, when the situation calls for a radically different approach.
Skill #1: Develop your Personal Self-Witness: You can’t change what you can’t see. Your witness is your trained observer, the one who can step outside your day to day actions and see things as a movie camera does—WITHOUT JUDGING what is going on. Your witness is your conscious ally, your friend who assists you in seeing yourself. Seeing what you are unknowingly doing creates the clarity required to see things differently.
Skill #2: Ask Questions the Logical Mind Cannot Answer: Questions enable you to reveal assumptions, follow your hunches, and assess situations before jumping to conclusions. Curiosity allows you to suspend judgment, the latter being totally completely useless when there is a need to improve performance or engage the disengaged. Inevitably organizational problems are addressed with the same solutions: cut expenses, increase revenues, train people. Digging deeper allows you to see the root problem enabling clearer insight into the actions that leverage results.
Skill #3: Whole Body Listening: Next time you are listening to someone, notice what your mind is doing. Since only 7% of communication is in the word then the rest is in your sensory capacity to detect what image is being conveyed.
Gaining clarity – Expanding perspective:
Organizational patterns and habits can drive even the most astute individual into a narrow lane giving the appearance of limited options. As organizational patterns come into clear view you have the chance to widen the range of alternatives and forge direction anew. These tools reveal the heart of the matter – a powerful ally to create lasting solutions rather than move the furniture around.
Skill #4: Actively Reflect on Experience: We do not learn from experience, we learn from reflecting on it. Reflection is the ground where experience becomes knowledge and wisdom, where understanding and alternatives surface. Once a week whether you need it or not. Otherwise, your habits are doing all the driving and misunderstandings accelerate into deeper divisions. You can’t connect the dots unless you stop, stand back to see what they are.
Skill #5: Increase your emotional awareness at the source of your expression: The force of emotion is clearly conveyed through word and is absorbed by the listener. The human emotional processor operates at about 80,000 times faster than the mental one. Whatever you are feeling emotionally, unless you have mastered the unhealthy habit of emotional repression, it is felt by the listener.
Selecting the best course of action given a series of complex and contradictory factors.
Making sense out of contradictory information operating within an even more complex dynamic demands use of all of the above skills plus consistently exercising pulse checks using the skills below.
Skill #6: Shifting Perspective: Perspective is defined as a visible scene, the state of ones ideas. Wouldn’t it be helpful to be able to shift the scenery and view before committing to costly and irreversible action? This is very useful portable skills but for executives it is helpful before making big moves to explore the range of possibilities before taking the step. This is not to be confused with exploring or exercising options. Step out of one perspective and viewing the situation from a totally different place can change the effectiveness and level of leadership engaged. The ability to shift perspective is the key to gaining enlightened insight.
Skill #7: Discernment: Judgment, guided by your mind, sorts information (or people) into right or wrong, weak or strong with convenient labels. The file drawer is sorted out and who knows what insights and hidden potential were also filed and dismissed in the process. Discernment is the delicate ability to distinguish what is not evident, what is true or appropriate.
Finally developing or upgrading yourself in any way requires self-discipline.
This is what horses have that keeps them from betting on people. Steve Pavlina on his blog defined “Self-discipline (as) is the ability to get yourself to take action regardless of your emotional state.”
Self-discipline helps us stay on the path when it would be easier to stray or submit to other temptations like distraction, procrastination or avoiding something appearing scary or unfamiliar.
Notice how you practice these skills in your own life and at work. You must be willing to see the current situation for what it really is rather than the way you want it to be and be open to making changes.

 

"Help Wanted" Help

If you’re doing a great job acquiring and retaining customers—congratulations. It’s not easy and doesn’t always come cheap. On average, it costs four times as much to find a new customer as it does to keep an existing one.
But what kind of job are you doing attracting and retaining top-notch, experienced talent?
If estimates are correct and two-thirds of employee hiring decisions may be hiring mistakes, how much is it worth to you to hire the right person the first time? How much does it cost when you hire the wrong person?
“The most valuable assets of most high tech firms (i.e., people) go home at night—or perhaps early in the morning in the case of software developers. As the company grows you have to fight the decreasing quality problem—i.e., the Founders (all “10s”) hire the second wave of employees (who are mostly “9s”), who hire others (“8s” or below) until the company is full of mediocre people who drag the whole place down.” This observation by Joseph Hadzima, Chairman of the Board of Directors of the Global MIT Enterprise Forum, and senior lecturer at its Entrepreneurship Center in an article in the Boston Business Journal.
So How Do You Find Great People?
A tight talent supply and strong demand is making it harder to find good people. And technology firms aren’t the only ones having trouble. If you’re a principal or an executive of a multichannel business, you probably know some quality people from other jobs and companies. Maybe you can get referrals—from your accountants, lawyers, or even by networking the industry. But this will only get you so far. Internet job and resume sites? According to recent surveys, they’re not delivering the goods either. Eventually you’ll need to make a classic “make or buy” decision—either you commit to an active internal recruiting program or you hire a pro.
Do It Yourself
The benefit: The benefit of the “do-it-yourself” option is that you may save short-term cash by not having to pay a professional.
The risk: The negatives are great: Will you devote the time to recruiting or will you put it off to deal with short-term problems and operating demands?
The unknown: Do you have the knowledge and contacts to do a really good job? Do you know how to effectively interview, evaluate and assess candidates? Thoroughly check references and background? Structure and properly present an offer? Handle a counter-offer? Deal with relocation issues and a reluctant spouse?
Hire A Pro
The “hire-the pro” option will cost you money in the short run, but it may pay off long term. By exposing you to a universe of candidates you may not likely see on your own and ultimately getting you the best talent, you’ll be able to focus on your core strengths. There are a number of types of professionals and the choice depends on your recruiting needs
Retained Search
Generally preferred—and sometimes more expensive—retained searches are used to hire CEOs, presidents, VPs, and other top-level senior executives where there are fewer qualified candidates. The critical nature of the position and confidentiality may also be key factors.
This kind of search firm is more consultative. They will probably spend a day at your facility, studying your operation, talking to your key people, and working closely with you to scope out what you really need by getting an understanding of your culture, business, plans, and strategy.
The retained firm will develop a search strategy in consultation with you, including a target list of organizations and people to review in advance, avoiding potential conflicts; and, they will create detailed job specifications and marketing materials.
The firm actively manages the process: talking to, meeting with, evaluating and assessing potential candidates—including psychometric testing—identifying candidate shortlist, arranging interviews, providing frequent status reports, in-depth reference and background checking, and assisting in negotiations, hiring, and ensuring follow through.
How to choose? As with any service provider, you need to ask people you trust who know the players. The knowledge and experience of the search firm in your business is important as well as the chemistry between you and the search consultant.
Contingency Search
Contingency recruiters are usually used for mid-level and multiple position searches and are more “transaction-oriented.” Unlike retained search firms, you pay only when the firm delivers someone you hire, but the fees are often no less than retained searches: 25% to 35% of the individual’s first year total cash compensation.
You generally won’t get as high a level of service from a contingency recruiter. Count on receiving a lot of resumes, often from individuals the firm has not met. Your competitors and other companies may also be getting the same resumes. And, you may have to do a lot of the work yourself, sorting through resumes to find the right person. Although some contingency firms will cold call to identify candidates, in many cases the resumes you receive will be for people who are looking to leave their jobs or who are out of work. This is not necessarily bad—you just have to factor it into your decision.
Assisted Do It Yourself
You may not have to make a total “make or buy” decision. Do some of it yourself and bring in expertise for particular areas. For example;
Contract Recruiters. For about $65 to $100 per hour (or depending where you are), contract recruiters will assist you in running an in-house recruiting operation. They may come in one day a week and work with your staff in defining position specs and organizing the process. A typical engagement might include an immediate need for a large number of people.
Researchers. For about $75 to $100 per hour (or depending where you are), a researcher will identify potential candidates at other companies and may do reference and background checks.
Advertising. The traditional “help wanted” ad works for the right jobs. There are numerous general and business media, industry trade publications and websites you can consider. Expect to pay a few thousand dollars or more for job listings. (Recent surveys suggest that help wanted ads on the Internet have not been effective).
You may also want to consider using a recruitment ad agency that knows the media and specializes in creating effective classified ads. They will be seen, but only by some people, and only on the given day your ad is run.

 

How Best To Eliminate Back Pain At The Office

Sustained and long periods of sitting still at our desks are not good for our backs - this is obvious: but how best to reduce the risks of backache and related stress? Getting up to stretch and walk around at regular interval makes very good sense, but many of us simply do not do it. And according to the British Chiropractic Association amongst others, this is one of many reasons why office-related musculoskeletal problems are still on the increase.
A feature of modern working life is how easy it is to become trapped into a sedentary existence. We spend long periods using keyboards, even during lunch hour checking emails, and then in the car or on the bus or train home. It should be no surprise that the result of so much time spent in a fixed position is an increase in the incidence of neck, shoulder and back injuries. And it really is no surprise that experts agree that it is vital to incorporate more movement and flexibility into what otherwise are quite static and sedentary working roles. But how to achieve this?
A recent study reported in the industry press suggested that - as opposed to the age-old advice to sit up straight - a slumped position actually appears to be the healthier option. The study at Woodend Hospital, Aberdeen, Scotland asked 22 volunteers with no history of back trouble to adopt a slouch, a 90 degree and a 135 degree angled sitting position, whilst being scanned by an MRI scanner. The results showed the latter angled position to place least strain on the lower back.
In spite of these somewhat controversial findings, office furniture commentators have agreed that up to a point, a reclining position can be beneficial, as long as the spine is properly supported through good a quality office chair, suitably adjusted. In particular, setting up the office chair with a slight backward lean has always been thought of as an ideal posture - as long as the lower back is in complete contact with the back of the chair. However, such a position is hardly appropriate for those involved in a great deal of typing and keyboard-related work, where leaning forward becomes the natural tendency.
One solution here is posture-monitoring software such as the proprietary PostureMinder which offers a neat software-based solution to the problem of injuries due to poor posture at the desk. Such systems continually check your posture via a webcam, and deliver on-screen reminders to you when you have been consistently sitting badly for a minute or two, for example.
Coupled with good quality office furniture and advice from ergonomic experts in its proper use, such solutions point a way forward to the problem. Good office seating should follow the movement of the body and be flexible with it whilst supporting it. Chairs should always have a good, ergonomic, synchronised mechanism and come with solid practical advice.
However, in the end, with proper office furniture in place, plus footrests, flexible PC monitor adjusting arms, TCO approved VDUs and all other ergonomic hardware, it remains imperative to think less about the positioning of the equipment - important as it is - and think more about varying the position of the individuals using them, including constant reminders to take short breaks and varying the office routine as far as possible.

 

How Best To Eliminate Back Pain At The Office

Sustained and long periods of sitting still at our desks are not good for our backs - this is obvious: but how best to reduce the risks of backache and related stress? Getting up to stretch and walk around at regular interval makes very good sense, but many of us simply do not do it. And according to the British Chiropractic Association amongst others, this is one of many reasons why office-related musculoskeletal problems are still on the increase.
A feature of modern working life is how easy it is to become trapped into a sedentary existence. We spend long periods using keyboards, even during lunch hour checking emails, and then in the car or on the bus or train home. It should be no surprise that the result of so much time spent in a fixed position is an increase in the incidence of neck, shoulder and back injuries. And it really is no surprise that experts agree that it is vital to incorporate more movement and flexibility into what otherwise are quite static and sedentary working roles. But how to achieve this?
A recent study reported in the industry press suggested that - as opposed to the age-old advice to sit up straight - a slumped position actually appears to be the healthier option. The study at Woodend Hospital, Aberdeen, Scotland asked 22 volunteers with no history of back trouble to adopt a slouch, a 90 degree and a 135 degree angled sitting position, whilst being scanned by an MRI scanner. The results showed the latter angled position to place least strain on the lower back.
In spite of these somewhat controversial findings, office furniture commentators have agreed that up to a point, a reclining position can be beneficial, as long as the spine is properly supported through good a quality office chair, suitably adjusted. In particular, setting up the office chair with a slight backward lean has always been thought of as an ideal posture - as long as the lower back is in complete contact with the back of the chair. However, such a position is hardly appropriate for those involved in a great deal of typing and keyboard-related work, where leaning forward becomes the natural tendency.
One solution here is posture-monitoring software such as the proprietary PostureMinder which offers a neat software-based solution to the problem of injuries due to poor posture at the desk. Such systems continually check your posture via a webcam, and deliver on-screen reminders to you when you have been consistently sitting badly for a minute or two, for example.
Coupled with good quality office furniture and advice from ergonomic experts in its proper use, such solutions point a way forward to the problem. Good office seating should follow the movement of the body and be flexible with it whilst supporting it. Chairs should always have a good, ergonomic, synchronised mechanism and come with solid practical advice.
However, in the end, with proper office furniture in place, plus footrests, flexible PC monitor adjusting arms, TCO approved VDUs and all other ergonomic hardware, it remains imperative to think less about the positioning of the equipment - important as it is - and think more about varying the position of the individuals using them, including constant reminders to take short breaks and varying the office routine as far as possible.

 

Electronic Document Management (EDM) - Steps Towards Better Workflow

Electronic mail has revolutionised business communication, while computerisation in general has defined a new era in the management of information.
With the electronic mail revolution and with computerisation in general, business communications have undergone massive changes in recent years. Traditional corporate communication methods such as mail, couriers, faxes, and even telephones have been downgraded in terms of importance for day-to-day business communications.
But with the changes have come some fresh challenges. Two in particular are at the top of the list of headaches for most organisations. Firstly, the problem of email overload, and how to file and allocate all the attached documentation which accrues. And secondly, the continuing need to manage electronic documents thus generated, and the more tradition paper-based documents which are still part of the business workflow.
Workflow problems: an example
To solve the first problem, many software systems have been developed for email management. However, these do not necessarily solve the second problem, and at the same time, they miss the opportunity to attack both issues with one overall software solution. Consider this example situation. An invoice arrives in the regular mail and is filed by the bought ledger department. At the same time, a confirmation email arrives to the purchase initiator stating that the invoice has been sent. This gets copied to the accounts department via internal network. The accounts department can respond to this to acknowledge receipt, but crucially this is not electronically linked to the details of the invoice. Thus later, if a query arises, an email management system will be able to retrieve the email, but the invoice will take more hunting through other files. Thus time and money is unnecessarily wasted on searching for related information stored in different ways and formats.
Electronic Document Management solutions
For many businesses the solution is to be found in using electronic document management (EDM). EDM is a high-level storage system which collects, indexes and stores information in all forms - including email of course - and which consequently can be easily searched and audited by every staff member to whom it is relevant. An integrated, organised electronic document management system ensures a business is storing and protecting the important information and knowledge that make up the intellectual and intangible assets of the company. Additionally and crucially, it ensures a company meets its legal requirements for the storing and retrieving information which in some cases is a need that goes on for many years.
Things to look for in an EDM system
The best advice to begin with, is to ensure the EDM system can manage all types of document, not only email. This would include paper documents and well as electronic formats, for example faxes diary records and written reports. Also, of course, video and audio formats are often part of a company's knowledge base, and should be included.
The system should also be able to allow editing and modification (password protected) of documents from within the system. Originators of documents might be using their own particular front-end application, but where the document produced is shared, it should be editable via the EDM.
The system should allow access to records according to a managed set of rules and guidelines to be set up in the EDM system, with a corresponding audit trail to ensure security and accountability at all times.
How does EDM work?
They work by scanning documents into a system where they are automatically indexed and filed electronically, so documents can then be instantly recalled by searching on key words. The systems can work in tandem existing software such as accountancy packages and contact databases, so that output from several different systems may be electronically filed within the one overall meta-system.
How to choose an electronic document management system
One of the first things to look for is an electronic document management system that is very easy to use. It should be easy to install across a network, and be up and running within days. Pay attention to the user interface - the best systems have invested hugely in these, to ensure that staff will require minimal training to use the system. Remote access to documents should also be explored - finding documents while on the move should be straightforward.

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