Welcome to Business Management


Monday, May 28, 2007

 

Thomas Edison And Invention Process

Introduction
Very often people are curious as to whether there is a certain methodology that successful inventors are following that can be adopted by others. In my opinion, one should look no further then Thomas Edison, one of the greatest minds of the Nineteenth and Twentieth centuries; inventor who gave the world a long-lasting light bulb and phonograph – just a few inventions that revolutionized and modernized our world. In fact, Edison patented 1,093 Inventions in US alone, not counting numerous patents obtained in European countries like Germany, France and England.
Edison And His Methodology
So, what methodology did Thomas Edison follow when he worked on his numerous ideas? Many researchers and bibliographers who studied Edison’s life claim that the famed inventor didn’t use systematic approach while working on his ideas; in fact, many claim that Edison favored the so-called random approach. In my opinion, above mentioned claims are misleading and should be taken with big grain of salt.
Thomas Edison never rushed into conclusions and methodically studied any available literature on the topic he was working. Edison once wrote the following –
“When I want to discover something, I begin by reading up everything that has been done along that line in the past - that's what all these books in the library are for. I see what has been accomplished at great labor and expense in the past. I gather data of many thousands of experiments as a starting point, and then I make thousands more.”
Respect the Work of Others
One can clearly see that Thomas Edison had the uttermost respect for the researchers who worked before him, either successfully or unsuccessfully. Famed inventor realized early on that his success heavily relied upon work done by others - Edison carefully analyzed facts produced by others, noted their mistakes and learned to avoid these mistakes in the future.
Regarding Trial And Error Approach
Edison did use trial and error (or random) method, but in a different context. Once Edison formulated and documented his ideas, inventor used trial and error approach in determining the best materials that should be used in his inventions. In those days, only rudimental research was done on physical and chemical properties of most materials, including gases and metals. Edison had to rely on his own tests and observations in order to produce a list of materials that were strong enough to be used in his inventions.
Summary
Edison left us with the idea to not just accept what we have, but with desire and hunger to reach newer heights. Famed inventor lived extraordinary life and managed to make our life better by improving on things that no one thought can be improved. The traits and abilities mentioned below are associated with Edison that helped him to achieve his dream of making our world a better place to live:
- Quickly grasp idea or concept - Sketch original design and easily draw a diagram of his idea- See the big picture and not allowing anything to stand on his way to success- Appreciate work done by others and learn from their mistakes
- Pause and quickly re-analyze his ideas, once critical facts came into light
- Test Inventions under most extreme conditions in order to be sure that they will continue to operate properly- To Conceiving an idea and work towards achieving it

 

The 3 Biggest Pricing Mistakes and How To Avoid Them

I was recently on a forum where several "time for money" service professionals and business owners were discussing their "rates". I immediately noticed that these smart, savvy business owners were falling into some pricing myth traps.
Here are the three biggest pricing mistakes that I see being made by "time for money" small business owners:
1. Matching/Undercutting.
Many small business owners look around at what everyone else is doing and they do the same thing -- or worse, they lower their rate thinking it makes them more appealing to prospective clients. It doesn't, it makes you look like a bargain and sets you up to be treated as one would treat a bargain.
I challenge you to separate yourself from others in your industry. You want to be exclusive. You want to be known as the Mercedes or the BMW -- not as the Daewoo. Offer clients an exceptional experience and they will pay your price.
2. Focusing on Pricing.
When speaking with prospective clients, you don't want to focus on your rate or your "price"; you want to focus on the results that the prospective client will see as a result of partnering with you.
Discuss the type of results that clients typically see, let them *feel* that happy place AND want to stay there, then give the price.
For example, a virtual assistant can share that her clients have more time to do those things they do best rather than handle all the administrative details of running a successful business and, as a result, they'll generate more revenue.
A massage therapist can discuss the ongoing positive physical, mental and emotional results which occur with recurring weekly massages rather than those booked only "when you *need* one".
3. Discounting.
When someone next asks you for a discounted rate, I want you to pause for a second and then say "I understand, which of my services would you like to eliminate?"
Seriously. You are a small business owner, not Wal-Mart. If a prospective client begins by asking you for a discount, do you think he will appreciate and value all you bring to the relationship OR will he question and haggle from Day 1?
In order to approach your pricing as the natural conclusion to a conversation rather than allowing it to become THE conversation, you need to come from a place of abundance. Not every prospective client will be a match for you and THAT IS OKAY. You want to attract only those clients who recognize the results that you provide and are willing, and able, to pay for those results.

 

Developing a Home Based Internet Marketing Business

Developing a Home Based Internet Marketing Business
If you have developed a sense of Internet savy, you may want to consider cashing in on your experiences and develop a home based internet marketing business. There are many advantages that you can realize through the establishment of a home based internet marketing business.
First of all, when it comes to starting a new business enterprise generally, start up costs themselves can be high. This particularly is true if you elect to start a new business enterprise in the brick and mortar world. However, you can lower the costs associated with starting a new business enterprise if you select a home based business venture and if you select a venture that is based on the Internet and World Wide Web. Thus, by electing to establish a home based internet marketing business, you will be able to really reduce the costs associated with starting your business enterprise.
Second, you can attract clients for your home based internet marketing business fairly easily. Assuming you already understand a bit about internet marketing -- which really should be the case if you intend to establish a home based internet marketing business -- you will be able to market your own presence and availability to assist with clients.
A home based internet marketing business can be a very profitable venture. Many people have been able to make a great deal of money through home based internet marketing business enterprises over the course of the past decade. Certainly, if you establish yourself as a qualified provider, you will be well on your way to establishing a profitable home based internet marketing business.
Keep in mind that while there are many home based internet marketing business enterprises in operation today, the Internet and commercial activity on the Net continues to grow at an extremely fast pace. While there are many home based internet marketing business providers and enterprises in operation today, there remains room for more qualified home based internet marketing business enterprises and providers today.
By considering the advantages of a home based internet marketing business that have been presented within the confines of this short article you are in a better position to determine whether or not a home based internet marketing business is right for you.

 

Role Of Metrics In Decision Making And Management

Information is power. In most cases, information is made up of building blocks of numbers. These numbers, when arranged in a meaningful way, tell a story and that is the information that is useful to businesses as well as individuals. The numbers and the ratios that are used to construct meaningful information is commonly referred to as Metrics. This note is a brief introduction to the role numbers and metrics have come to play in every day life.
Metrics for a web-based business
Being involved with a web-based business myself, I can vouch for the importance of web-statistics for a web based business. However, the whole process of collecting and processing information regarding the traffic to a web-site has been made fairly simple by tools like those offered by Google Analytics. Having used it, I am now a big fan and would recommend web-based businesses to seriously consider using this tool.
A few basic information that I find greatly useful in Google Analytics and check everyday is the overall views that the site attracts on a daily basis, the source of this traffic and the key words that drive this traffic to the site. There are of course other great reports as well that I check once in a while, like where the exits are happening from, the kind of browsers that are used to access the site etc. Each business is unique and they will have to determine those statistics that are most important for them and track them everyday. Google Analytics is a good place to start this tracking process for free.
Metrics for a traditional business
A traditional business usually relies on its Accountants for its information. The metrics that are usually considered important are of course the sales numbers and the money that is collected. But things have moved far beyond these basic numbers and there are many companies that now offer specialized services to build a story from all the numbers that a business throws up. One such interesting company is Metrixline, with the promise of converting all the numbers into useful real time information.
Metrics for an individual
Do individuals really need metrics? If one has the inclination, then why not? Most individuals that have some kind of equity holding usually have a real-time portfolio. That is a great example of a useful metric that determines many decisions that an individual takes. Some others maintain a simple excel sheet of their monthly expenditure and that is again a great example of using simple metrics to be better informed about the state of one's personal affairs. But not everyone is inclined to maintaining records and using metrics to make decisions in personal life and there is no strong evidence to suggest that this is a bad way to live, so whatever one is comfortable with, that’s the way to be!

 

All about Auto Shipping

Auto shipping is a process of shipping your auto from a dealer's lot or from any other location that connects consumer, shipping dealers and auto shipping companies in the most efficient possible way. Consumers and dealers are using vehicle shipping services to move autos both for customers and themselves. Auto shipping companies are highly available on the online and so it becomes easy for you to locate and request that each of the shipping companies, which you find to their best to offer you a quote.
Many cars and other vehicles can be shipped at one time as one can afford as well. All you need to do is to advices in your request for online quote the number of autos, which you require to ship. You would be able to add as many autos as you desire, as long as they all are appearing from and destined for the same region or area.
Car shape and size is extremely significant for auto shipping companies, particularly those in commission enclosed trailers. For example, many of the enclosed trailers cannot ship heavy SUVs like Ford Expeditions. Perhaps the car has been lowered considerably or might be hard to get up a trailer ramp. Maybe you are shipping a widen limo, or an Indy race car etc. In any case, you should make sure to counsel the shipping company so that they appreciate and could quote you correctly.
Many auto shipping companies provide services for those autos, which are not in a running condition. They might add a small supplement for this ability. Just make certain you tell them if your vehicle is not in a run position.
When you start your process for getting auto shipping quotes, confirm that you advise them of your required needs. Be sure to incorporate any unusual dates, such as the particular date the auto has to be picked up and as well when it has to be shipped. However, for all time be prepared that one of your chosen auto shipping companies would not be able to guarantee, which the auto would get there on your requested date.

 

Opening a Dollar Store - Creating a Job Description

Are you opening a dollar store? If so take the time early on to develop specific job descriptions for all positions within your business. Investing that upfront time will mean that every employee knows exactly what the job that they are performing consists of.
Your job description should include all of the primary tasks and duties that are performed by every employee in that specific position. While not every single one must be listed be sure that all major categories are covered. Also be sure that there are representative tasks and duties for all major categories. It is also important when opening a dollar store to add wording such as ‘other tasks as required’ or ‘other duties as assigned’ to make sure that there is an expectation of even more being required.
Training or experience requirements that are considered prerequisites for the position should also be noted. For example if you add a lead cashier position after opening a dollar store, there may be the requirement that to be considered for the position a prospective employee must have at least three years of retail cashiering experience.
When opening a dollar store it is important to document and communicate all of the special requirements associated with a job. Special requirements might include working weekends, working evenings, being able to do heavy lifting of objects that weigh up to 25-pounds, continually bending and stooping, and others. It is also helpful to review these requirements and how they are applied to the job with your employees. If there is any risk of injury include training on proper lifting techniques, add two-person lifting requirements for heavy lifting and be sure that proper safety equipment and tools are readily available.
Finally the compensation range for the position might also be included.
When opening a dollar store it is important to remember that when hiring for the position every employee should be treated fairly and equally. Be sure that you are aware of the laws and always abide by those laws. Being fair and consistent is the right thing to do.

Thursday, May 24, 2007

 

Do Your People Skills Match Your Contracting Skills?

How many times have you as a contractor had to bite your tongue? This 'biting of your tongue' and not saying exactly what you're feeling has probably saved your business.
How so?
Well, put yourself in your customer's boots. If you weren't happy with some job that a contractor had done for you, do you seriously think if they went 'head to toe' with you in an argument trying to convince you that you should be happy with what you ended up with, do you seriously think they would convince you?
No, I didn't think so either. So now you know why it's a good thing to bite your tongue occasionally. It earns you money and the customer's respect. And they are the customers who talk. They talk to neighbours, friends and relatives.
WOM (word of mouth) advertising is the best advertising you can ever get and its advertising you don't have to pay for. Biting your tongue is cheap by comparison.
But if you feel your testosterone rising and feel it is essential to fight back, be very sure of the potential outcome. Sometimes you may win the battle but lose the war.
Sure, we all know of the cheats and schemers out there who get work done with the idea and intention of never paying for it. Now if they badmouth you to whatever friends they have left, then that will save you money. They're the customers you don't want or need. But be careful, some of them could still be good payers and honest people wanting work done.
This is the problem. Not knowing who talks to whom, it always makes more cents and sense, to pick your battles with care or to bite your tongue and get on with business.

 

Effective Time Management: 10 Tips

Many of us remember the days when it was claimed that computers and other technological advances would give us so much more time. The reality is that all these gadgets have in many ways made it more difficult to manage our time. In the past we had letters and phone calls to respond to. Now we also have e-mails and text messages where people seem to expect instant responses. So given all of these challenges, how can you effectively manage your time?
1. Be clear on what your overall aim or deliverables are in your role and don’t lose sight of this big picture view
2. Each day and week, take the time to determine what is important, what is not important, what is urgent and what is not urgent. In doing this remember to keep asking yourself whether a particular task is moving you toward or away from your overall aim
3. Recognise that many things that are urgent are highly visible and get your attention like a new e-mail may not be that important
4. Remember that activities that fall into the important but not urgent category are of key importance. These are the activities where you build foundations for the future through things like working on business plans, relationship building, making time for staff reviews, etc
5. Keep a diary of where you spend your time during the working day. When I worked in professional services, it sometimes felt like a bind accounting for every 15 minutes of the day but it certainly made it very visible to you where time was going
6. Use the information on where you are spending your time to set goals around changes you want to make
7. Track your success in making changes to how you are using your time
8. Set up appointments in your calendar for things like checking e-mails and returning calls
9. Review what meetings you go to and determine if there are some that could be delegated to someone else
10. Build some time into your schedule for the unexpected as it will arise from time to time

 

Effective Decision Making

We all need to make decisions. While we all know that this is part of life, we can often find it difficult. It might be that:
• We are afraid of getting it wrong
• We procrastinate
• We get lost in the detail and lose sight of the bigger picture
• We worry about how others will react
• We don’t know what outcome we want to achieve
Given these potential hazards, what are my 10 key tips for more effective decision making?
1. Recognise that very few decisions are a matter of life or death. Most decisions, even if they don’t work out quite as you expected are irrecoverable. Give your self permission to make mistakes and learn from them.
2. Avoid putting things off. If you know a decision needs to be made, find a way of forcing yourself to move toward it. One way might be to set a deadline.
3. Keep your focus on the bigger picture and make sure you do not get lost in the detail. Keep asking what is important about this decision?
4. Whenever you have to take a decision, remember that not everyone is going to agree with it. As a leader or manager you are paid to take decisions and sometimes they will be unpopular.
5. Get clear about the outcome (result) you want before taking a decision so that all discussion, debate, etc is linked back to the result.
6. Make sure that you have the right information available to take the decision and if not go and find it.
7. Trust your intuition. Sometimes you will just have a hunch about something. Our natural reaction is to dismiss it. Instead try using it. For example, imagine you are part of a Senior Management Team discussing a new investment. You have a hunch that it is good long term even though the numbers might indicate otherwise. Throw it out you might just spark others to look at different perspectives.
8. Look at the options and weigh up the pro’s and cons.
9. Consider talking through the decision with a more experienced and trusted colleague to broaden your perspective.
10. Remind yourself that we are all human and mistakes will be made. The key thing is to keep learning.

 

Effective Staff Appraisal

As a manager or leader you will no doubt have responsibility for undertaking staff appraisals. If you have been appraised in the past by your manager it can appear easy and it should be. So how can you make appraisals effective and powerful sources of staff motivation?
Planning
Planning is the key to effective appraisal. Make sure that:
1. You schedule appraisal meetings at least two weeks before the appraisal date
2. You book a room for the appraisal
3. All of the pre-appraisal documentation goes out to the employee at least two weeks before the appraisal with clear instructions on how to complete it. Within this documentation include a draft agenda
4. You set time in your diary to carry out the pre-meeting work
5. You block out sufficient time for the appraisal in your diary. Ideally, I suggest that you block out a minimum of 2 hours for the meeting and have a gap of at least 30 minutes before the start time and your previous meeting
6. Re-familiarise with any company guidelines and training materials that might exist
Appraisal Meeting
The key to an effective appraisal meeting is to put the appraisee at ease. One of the easiest ways of doing this is to spend a few minutes at the start chatting more generally about how things are going in life. As the appraiser is important that:
1. You set the scene including being clear what the meeting is about and what it is not about
2. At least 70% of the talking should be done by the appraisee not you
3. You give the appraisee the opportunity to give their own self assessment of their performance before you
4. You don’t interrupt them even if you don’t agree with something they are saying
5. When you are giving your feedback, you are as specific as possible and ideally include examples to illustrate. For example, I notice that you are always really well prepared with all the key information for your meetings with the divisional managers
6. You ensure that the appraisee is fully committed to and in agreement with objectives for the next period
7. You spend time looking at the development needs and career plans
8. Make sure the appraissee is clear on the next steps and timescales
After The Appraisal Meeting
1. Produce a meeting note or completed summary
2. Provide two copies of the meeting note or completed summary and ask the appraisee to sign and return one copy to you if they are in agreement that it accurately reflects what was discussed and agreed
3. Make yourself available to discuss concerns that the appraisee might have about the meeting note. It could be that you have misinterpreted something or incorrectly recorded it
4. Set up a time to review progress on objectives
At the end of the day, a well planned and run appraisal meeting can have a powerful motivational impact on your staff, so don’t miss out on this opportunity.

 

Dealing With Poor Performance

If you are a manager or aspiring manager, sooner or later you will be faced with a member of staff who is not performing. The common response is to try and ignore it in the hope that it will go away. The trouble is that you are merely delaying what needs attention. It may well be that you end up being under scrutiny with your superiors wondering if you are really up to the job.
At the end of the day good managers and leaders want to deal professionally and compassionately with performance issues. So what are my 10 tips?
1. Review the individuals objectives and make sure they are clear. It is difficult to deal with an employee who is unclear about expectations.
2. Identify where performance is falling short of the required standard
3. Get specific examples to illustrate where performance is falling short rather than relying totally on gossip and observation
4. Arrange to meet 1 to 1 with the member of staff to discuss the issue privately. This is particularly important given the rapid increase in open plan offices
5. Prepare for the meeting thoroughly. remember this could be the start of a process that leads to dismissal.
6. Present your case and supporting examples clearly and professionally.
7. Give the member of staff the opportunity to respond without interrupting. Take the role of the listener.
8. Identify clearly the improvements required, timescales, monitoring and consequences if performance does not improve.
9. Ask the member of staff what support you or the organisation can provide to help them. This might be on the job coaching, a training course or workshop.
10. Confirm everything in writing.

 

Getting Security Systems Installed

If you want to protect your home or business and are thinking of installing a security system, consider the many options and variations in security systems – from intruder (burglar) alarms to CCTV cameras, there are so many different security measures to choose from. It is recommended that individuals and businesses get professional, expert advice from security systems providers. These companies can offer knowledgeable advice on what type of security you may require for your home or business.
A professional security system provider can supply and design a security system to suit your requirements. Many good security systems provider companies will offer modern technical security systems to suit you needs, along with security experience and technical knowledge to install and provide a suitable security system. It is important to choose a company which has experience in the security field, and can provide you with the latest digital technology which can include biometrics, network integration and remote monitoring.
Some top of the range security systems need to be maintained and updated regularly to ensure top performance at all times. If you get a complex security system installed in your home or business, your security systems provider will be able to maintain and ensure optimum working function of your system. Many professional security system providers will be able to provide these long term services to maintain your security system. Security system providers can offer different services, finding a security facility which offers a one-stop-shop service is recommended.
Your chosen security systems provider is recommended to have industry accreditations, this is an easy way to ensure that the security provider has the experience and industry knowledge to install an effective security system and provide professional follow-up services. Professional security systems providers will provide an account manager to your account; this can be beneficial to have a contact person who is familiar with your security system and individual requirements.
Choose an expert security systems provider which can design and consult clients on best types of security systems, a good security provider should also be able to supply an installation service along with maintenance and repair services. Customer services and customer care is also paramount along with the latest technologies in the security systems sector.
Get top services and professionally installed security systems from expert security systems providers and protect your home, family, business assets and staff.

Wednesday, May 23, 2007

 

It is Important to Measure a Performance

Is it really important to measure a business performance? I think if you will even need to purchase someone's business, then you will never ask this question and the answer will be "Yes! Sure!", because if you do not measure the performance of the business that you are going to purchase you will be going blind. Then why people don't like to measure the performance of their own businesses?
When you are inside, you see a lot, I would say you can see to much business and business mechanism, you are flowed with unimportant data, you having too many things to care about and sometime you even don't understand where this business is going. If you are a manager, then it is not a problem, but if you are CEO, then you have to think about things like this.
You will need some information diet, e.g. very limited information, which will tell you a lot about your business. There are different names for this diet, some call it balanced scorecard, another key performance indicators (KPI), also people are using "metrics" and "measures" to understand business better.
That's great, but do we really know what we do? Once someone found a new type "diet" his is trying to use it for his business, but it is a wrong approach. Your business is different, there are departments, such as Sales, HR, Security, Financial. These departments function in a different ways and if you will apply the same information diet to all of them you will fail.
For instance, if you deal with Financial department and have to measure bank loans efficiency. What will you do? Will you be measuring customer satisfaction, growth opportunities and your ability to work with "internal process"? All these indicators means NOTHING! What is "customer satisfaction" for bank loan (if you are customer yourself) or if you are bank? You use this words, but you don't want to detail them into some real-life metrics and indicators. That is the most important thing. I'd better have 6 bad indicators, that 60 great mission statements without any mean.
If you will ask me about performance and how to measure it, I will not answer you that you should measure customer satisfaction or bank's loan financial aspect, I will answer you: "Give me metrics!", "Give me indicators!"
What is bad, good and great performance indicator or metric? It is up to you and up to your business, but there are some common issues one must remember.
First, metric or indicator must measure. It should me math formula, equation, function. It must look like X = F(A1, A2, ... An). Where A1-n is the number of indicators you must look at and the F is the function which tells what to do with indicators. X is the performance value.
What is bad indicator? It is when you tell, let's measure customers' satisfaction in bank loan niche. You don't tell about what are you going to measure, how you are going to measure this, it's not a metric, but it's a good mission statement that tells about nothing.
What is great indicator or metric? It is the good metric (which we where talking above), but it is taken from some real-world business. So, it's not just your idea or ideas of some reported from business magazine, it's idea that works and it was checked by you. What you will need to do? You will need to pass it through you own business and optimize it to your business tasks. Work hard with business performance, and soon you will have a great business control tool.

 

Employee Retention: When Is Your Next Key Employee Going To Leave And What Are you Doing About It?

If you and your managers are doing your job right, you will be having regular 'one-on-one's with your key performers, part of which will cover their general job satisfaction and overall 'engagement' with the organization.
Sometimes however, general busy-ness, or simply a lack of understanding of how to have such a conversation, means that managers fail to have such discussions, leading to the type of unpleasant surprise that no-one likes to get.
Sidebar: It's often the very lack of such conversations between a manager and employee that builds (or at least stokes) the very frustration that ultimately causes the key performer to leave -- a real case of a 'double whammy'.
Here's How To Stop The Surprises
Use this simple Employee Retention Risk Analysis ("ERRA") process to help prompt your managers to regularly assess the 'retention risk' of key performers, and report back to you regularly - I suggest you get them to complete this at least quarterly.
An important secondary benefit of completing this exercise is that it gives a structured environment for your managers to actually have this conversation with you -- you'd be surprised the number of senior executives who believe their 'open-door' policy means that managers will come in and talk about matters such as retention risk of key employees.
The reality is that often they do not -- again, either through busy-ness, or just not knowing how to breach the topic in the first instance.
Adopt this form and process -- make it your own -- and proactively prevent the loss of key performers in your organization, department, division or team.
Step 1: Rank Your Key Employees
The first step in the Retention Risk Analysis is pretty simple -- the manager ranks the individual according to two criteria -- their ability to get results, and their overall integration -- sense of 'fit' -- in the organization as a whole.
(Note that we're not asking for granular data here -- just an overall sense of where the employee fits overall.)
The easiest way to do this is to draw a simple '2 x 2' diagram, with the vertical axis representing the employee's results (low at the bottom, high at the top), and the horizontal axis representing their overall integration into the organization - low integration at the left, high integration to the right.
Quadrant 1
Employees in Quadrant 1 (low results / low integration) are clearly in need of some form of intervention if they are to become productive team members.
By completing the assessment above, you and their manager may come to the conclusion that little can be done to help a person in this quadrant, and you may start making alternative plans.
Quadrants 2 and 3
Employees in Quadrants 2 and 3 are those where we have a decision to make -- they either perform well but don't align with the rest of the organization (Quadrant 2), or they fit in very well, but aren't producing the results (Quadrant 3).
Quadrant 4
'Quadrant 4' employees are our stars -- high performers who also align very well with our culture and goals. This is the area where we need to be most sensitive to retention risk.
It's important that you and the employee's manager take a realistic view of the retention risk of star performers and assess the steps necessary to ensure their retention.
You might even want to involve the employee themselves in the completion of this part of the ERRA form -- nothing says you care more than consultation about their future with the organization.
Step 2: Estimate The Retention Risk
Finally, have the managers complete a quarterly risk assessment, estimating the risk of losing key employees on a 1-10 scale (or any other scale you're comfortable with).
Next, map the 'high-retention-risk' employees to the quadrants on your '2 X 2'. Are any of the high-retention-risk employees also in Quadrant 4 ('Stars')? If so, it's time to develop a specific retention rescue plan, customized to exactly that employee.
What about Quadrants 2 and 3? Any high-retention-risk employees there? If so, can we use tools such as mentoring or coaching to improve their performance, or their integration, as appropriate?

 

Effective Problem Solving with Creativity

The preference to stay as we are right now is the norm rather than exception. The uncertainty and risk associated with new things and new ideas are the main reason for the avoidance attitude. We need to adapt and change to survive. Remaining status quo is not going to bring you anywhere. Organizations need to accept the truth – either they innovate or die.
Managers who wish to survive and grow need to adopt innovation as one of their basic strategies. Innovation demands that the people in the organization learn to THINK CREATIVELY, so that they are able to bring about new ideas. We are trained to filter and sort information. This makes the decision making easy. Solutions are brought to the surface from the past experience. This limits creative and innovative solutions to our work related problems.
Managers inclination to view creativity and innovation as the concerns of artistic and R&D department is one major reason for not seizing the full power of creativity. If we are serious about enhancing the overall quality of our problem solving then we need to incorporate creative thinking when managing decision making.
Problem solving process is normally seen as a logical and rational process. Most managers failed to recognize the need to incorporate creativity. The problem solving model is generally described as involving the following steps:
Identify the problem
Gather data/information
Clarify/diagnose the problem
Develop possible solution
Analyze each possible solution
Implement and EvaluateThe creativity component becomes a dominant element during developing possible solutions (step 4). At this stage of problem solving, we need encourage divergent thinking and insist on developing a whole range of diverse ideas and solutions to the well defined problem (step 3).
Problem solving through creativity in managing step 4, simply means we are able to look at new ways of solving problems. This is particularly critical when you are not satisfied with the standard solutions – the byproducts of traditional linear thinking.
To take full advantage of creative development of ideas during step 4, we must train our employees on creative problem solving techniques. Only then they will be equipped with competencies and skills to develop new ideas, when dealing with problems in the workplace. You can start with simple tools you can access using the Internet as your source. Blogs such as http://lifeskills4success.blogspot.com/ list a number of tools you can use as part of creative problem solving.
Experienced managers who are involved in creative problem solving recommends training the employees in asking the following 2 questions, when developing new ideas:
What else can we .......?
What if, ......................?To supplement the questions, they also recommend that we fill in the words from the SCAMPER model. The SCAMPER model, originally developed by Bob Eberle provides easy to follow prompters when you are keen to develop new responses to your problems. SCAMPER stands for:
Substitute
Combine
Adapt
Modify
Put to other use
Eliminate
ReverseThis would mean asking questions such as “What else can we combine or eliminate in managing the work process?”. Another option is to ask question such as, “What if we reverse the process?”. These questions invariably will bring the most new and innovative ideas and solutions to the problem.
Just remember this – Creativity and innovation can be learned. After all the uncreative thinking is a learned behavior. We just have to unlearn and relearn to become more creative when managing problems at our workplace.

 

PayPal Solutions - 5 Steps to Manage Your PayPal Account

If you’re wondering how to keep your paypal account safe and still useful, I have a few suggestions. These five steps have proven themselves over time, and I’ve had no problems with PayPal because I manage my accounts for privacy.
1. Password Protection
Use a viable password, no dictionary words, add alternate letters, numbers, caps, lower case, and mix up the letters. A good mix of letters, numbers, lower and upper case will make your password more effective, less easy to translate, and should be at least 8 letters long.
2. Change Password Frequently
Change your password frequently and do not reuse a password alternately, it becomes too easy to trace and obtain. I always recommend a monthly change of password, on various days of the month. A good time to change your password is every fifth time you check your account.
3. NEVER go to PayPal from your Email account
Always pull paypal up from the address bar, sign in on a new browser page and sign out, then immediately close your browser. If you’re on a public computer, change your password more frequently and be sure you sign out and reboot the computer when you get out of the account.
4. Keep a checkbook type ledger of your PayPal Account
Keep a record of PayPal Account actions, offline. You’ll want to be able to verify ALL actions you take on PayPal, with logically written actions, so you can prove your account behaviors. Guard your offline Account Transaction Information. Keep it private and secure at all times.
5. Print out ALL receipts from PayPal
Print out ALL receipts from PayPal, and keep copies in a file, with your other PayPal records. Keeping PayPal Receipts with your other financial records, reminds you that it is a financial institution, and very much protected, so you should protect it too.

 

Managing From The Side - 7 Great Ways To Lead People Who Don't Report To You

Kim is the Assistant Hospital Administrator at General Hospital, where she's worked for the past 5 years. Based on negative publicity the hospital has received recently, Craig, the Hospital Administrator, has asked her to head up an inter-departmental task force devoted to improving quality of care to Emergency Room patients. Seven staff members have been assigned to help her: the Director of Nursing, an Accounting Department clerk, the VP, Human Resources, an ER nurse, an ER doctor, a Public Relations assistant and an Admitting Supervisor. Kim has been asked to provide a report outlining changes to the ER that will improve the patient experience as well as the buzz in the community. Her dilemma: Not one member of the team reports directly to Kim and yet her ability to lead this project team successfully will greatly impact her career advancement. Her question: How does one get results when managing a group of people over whom she has no authority?
The short answer is this: manage from the side. While heading up a project group--by definition--involves directing individuals who do not report to you, in an increasingly competitive, rapidly changing business world, even in day-to-day management, the conventional approach of issuing orders and delegating down is giving way to a lateral style. where one leads by facilitating--rather than directing--the contributions of others.
Need to get a project group of non-reports to perform? Here are our best tips:
1. Share the vision-In your most inspirational and easy-to-understand way, let your team know where you're headed and how you will get there. Give them context--in other words, why has this group been chosen to address this issue at this time and what are your desired outcomes. Further, set up expectations of how the group will move forward, for example,"I'm looking for innovative ideas, radically different, patient-centered ways of thinking about the ER and a new paradigm for addressing patient needs."
2. Clarify individual and group expectations -Tell your team members why they--specifically--are there, right out of the gate. At the first meeting, address not only the group's goals, but verbalize the specific talents of and contributions expected from each individual. Keep in mind that their role on the team will not necessarily be consistent with what they do in their day-to-day positions. You might say to the accounting department clerk, "Sally, I know that you have a wonderful ability to get people to really open up to you and read between the lines of what they say. I want you to be in charge of gathering input from our previous emergency room patients." Publicly acknowledging what each person is there for sets a goal-oriented tone, clarifies roles and is the first step toward building accountability.
3. Use time efficiently-Because whatever they are doing on your team is likely an addition to their regular job, show respect for your team members' time. Make a habit of communicating in the least demanding way possible. Don't require a meeting or a phone call when an email will suffice. Use meetings for actual work, not just reporting. Run meetings efficiently by providing an agenda in advance so that people can come prepared, start and end on time and conclude each meeting with specific written next steps that are circulated within 24 hours.
4. Hold them accountable-Peer pressure's not just for pimply-faced adolescents. Having team members verbalize their commitments out loud--particularly in the presence of their colleagues--has an amazing ability to boost one's internal sense of responsibility. Use software or hard copy status reports to ensure that responsibilities and deadlines are crystal clear. Additionally, as the project manager, you must recognize the work of others that is done in a timely fashion, call it out when work is late, and make a point of role modeling accountability yourself.
5. Give recognition-This is a biggie. When you can't incentivize with cold, hard cash, promise promotions or give away corner offices, look for opportunities to provide recognition and show appreciation. Give your team members plenty of room to shine, then make sure to publicly and privately recognize their contributions. And make sure you acknowledge their ideas, not merely their labor.
6. Make certain they have what they need to succeed-Managing from the side is about making it possible for others to do what they do best. Create an atmosphere that empowers entrepreneurial energy, is open to new ideas and supports managed risk-taking. Intervene, if necessary, to help them juggle competing priorities. Minimize team member limitations and ensure they have the resources they need to get the job done.
7. Create a team- It's up to you to take a disparate group of individuals and make them feel bonded together and invested in a common purpose. There are a myriad of methods to team-build, and you should employ them early and often in order to create the esprit d'corps that is the glue of harmonious groups. In addition to the small feel good thing--a group picture in the hospital newsletter or team pizza lunches--don't forget to invest team members in the group's efforts by stressing the importance of its mission and the good that will be accomplished by its work.

 

Five Elements of Effective Implementation of Organizational Change

An aggressive manager, striving to maximize return on investment and organizational profitability, could easily develop a litany of various programs and policies impacting personnel and operations from the Mailroom to the Board of Directors. However, within the operational environment of a given organization, human beings, with tradition, familiarity, and comfort zones behind them, will wreak havoc on the best of plans. The fluidity of today’s marketplace, rapid technological developments, and governmental policy changes regarding virtually every aspect of business functioning, demands change. The manager’s challenge then, is to implement good ideas with minimal resistance and maximum acceptance.
The purpose of this article is to discuss the five elements believed critical to the successful implementation of change within an organization. The five points were designed to test an idea before it is put into place. These points do not guarantee that the idea will reduce operational costs, improve productivity, or enhance the organization’s profit line. That is up to the validity of the planned change itself. Rather, an idea that meets the following five points will receive wider and quicker acceptance within the organization, and will therefore improve operations, or just as quickly, destroy them.
The first test of an idea is to determine if the planned change will define or change acceptable employee behavior in any way. The role of impacted people, namely employees, is the root of success or failure of change. For example, a new dress code policy changes what is and is not acceptable attire in the workplace. Is the dress code policy spelled out in clear and non-biased terms? From an employee’s perspective, does the new policy clearly delineate acceptable behavior? And, does the policy meet the expectations of impacted employees based on the existing corporate culture, or does it represent a significant departure from the norm? Answering “no” to any of these questions is an immediate indicator of potential resistance, or possible failure of effective implementation of the new dress code policy.
Similar to an employee’s need to understand the implications of change, the various department and section leaders, such as Transportation or Marketing, must also understand how a change in policy or procedures impacts how they operate. Therefore, the second test of planned change is to verify that the change clarifies the role of each effected function within an organization, and specifically defines the steps necessary to successfully adhere to the new policy or procedure. A Marketing Manager, for example, needs to be aware of how an effort to enhance the “family values” image of the company may impact positioning of the product. Does the plan clearly identify the various facets of the organization that will be impacted by the change? Have department heads from the impacted areas been consulted or invited to be a part of the change process? Have new roles and areas of responsibility been established and communicated to those effected? Again, any “no” answers are indicators of potential problem areas.
Once the employee and departmental roles have been clearly defined, the third test of an effective implementation of change is to evaluate its aesthetic appeal. A plan should be concise, with clearly defined goals and rationale. People despise change for the sake of change. Change shakes people out of comfort zones and away from tradition, so it should be relevant. A manager’s job is to communicate the mission of an organization, provide the training and equipment to make it possible, and set policy and procedure to ensure it is done within the framework of the company’s value system. Implementing change for the sake of change makes a manager intrusive and guarantees that the planned change will be resisted. Test the plan with these questions: Does the plan have a clearly defined goal, or reason, worthy of an employee’s effort to make it work? Has the rationale behind the change been clearly stated to those impacted by the change? And, can the impacted personnel see where the change is going, and how they, as individuals, will benefit or be hurt by the new plan?
A well developed and thought out plan of change is worthless without the consent of the powers that be, and without at least tacit approval of those impacted by the change. The fourth test of an effective implementation of change is to ensure the decision makers within the organization are onboard. Any policy or procedure change that effects how an organization operates needs approval at some level. Organizations differ on this, however, a change that requires a change in behavior of employees or operations between departments requires approval above the departmental level. Amazingly, managers have been known to implement change in their departments, neglecting to realize or care that this change impacts other operations.
For example, a Shipping Manager decides he wants shipping documentation completed in triplicate. Two weeks later, when he audits the shipping documents he finds the change in policy has not been put into place. An analysis of the problem reveals that Publications did not have authorization to create a new “triplicate” shipping document, and the Warehouse Manager refused to cooperate until told to do otherwise by her manager. Before rushing into implementing change, consider these questions: Does this change need the authorization from Departmental, Regional, CEO, or Board of Director levels? Has this change been properly authorized?
The final test of an effective implementation of change is to measure whether or not change has actually taken place. Better known as “follow-up” this final stage in the change process is frequently neglected, making all the previous effort fruitless. Human nature is like a river, left to its own whims and desires, it tends to drift where it wills, heedless of time and distance to its ultimate goal. Change that focuses effort and redirects behavior will incur resistance, because it asks people to make an extra effort, or step outside their comfort zone. Additionally, new policies and procedures will invariably incur obstacles along the way that must be surmounted.
For example, the dress code policy mentioned earlier may include a line that the Legal Department finds potentially offensive to females. This does not mean the dress code is worthless, it merely reflects the need to adjust the code to the realities and demands of the environment. Managers should also evaluate the impact of a change. Has the plan achieved the goals originally set for it? Is the plan workable as is, or does it need to be adapted? What obstacles or barriers to success have been presented relevant to the change, and have these problems been addressed or resolved? Without follow-up, a new policy or procedure is dead in the water.
Implementation of change is a challenge to a manager’s ability to communicate. The effective change in policy or procedures that achieves its goals of reducing costs or improving revenues, is the result of communicating the change and its rationale to impacted employees and departments, gaining approval from relevant leaders, and following up to ensure compliance, or to fine tune the change to meet actual demands or obstacles.

Sunday, May 20, 2007

 

Four Steps to Accelerate International Business Growth

U.S. exports continue to grow, but many American companies lack the international business know-how to capitalize on this potential source of increased sales and profits. Proliferating trade agreements and a weakened U.S. dollar have resulted in one of the most favorable export markets in decades. Foreign importers of U.S. goods report an increasing demand for U.S. products—from popcorn to pet food. The U.S. has enjoyed 11 straight quarters of increasing exports—yet with 95 percent of the world’s population residing outside of U.S. borders and an increasingly promising international sales outlook, experts are questioning why only 5 percent of U.S. companies are currently exporting. But how do we initiate and sustain growth in unfamiliar markets?
1. DEFINE STRATEGIC NEEDSTapping into new markets provides the opportunity for increased revenue and profits. However, this initiative needs to be consistent with the company’s overall strategy. Inconsistent, sporadic, or unfocused deployment of resources directed toward international growth can result in an underperforming initiative that soaks up limited resources with little return. Barriers to entry (duties, regulatory, and trademark restrictions) need to be identified and addressed. A SWOT analysis detailing the company’s strengths, weaknesses, opportunities, and threats will identify and help maximize the company’s strengths, minimize its weaknesses, and give focus to the international opportunity.
An international growth plan consistent with the corporate strategy will enhance the odds of success. Tactical aspects of international development such as sales, distribution, and marketing need to be addressed. International growth factors can be sufficiently different from the U.S. models that a lack of familiarity can dramatically reduce the chances of success. Above all, there must be clear direction, full management support, and dedicated resources.
2. SECURE APPROPRIATE ASSISTANCESmall or medium firms initiating or expanding into international business will find the U.S. Government’s Department of Commerce (DOC) an enthusiastic partner in helping American companies succeed globally. This organization coordinates resources from across 19 Federal agencies to help American businesses plan their international strategies in an increasingly globalized environment. In an unfamiliar foreign market with confusing regulations, uncertainty, and risk, the DOC can help U.S. businesses navigate the overseas sales process and avoid hazards such as payment defaults and misappropriation of trademark and intellectual property. The DOC’s commercial service provides a surprisingly actionable array of quality services including in-country market research, trade events and missions, trade leads, and introductions to prospective business partners. The Export-Import Bank and the Small Business Administration unite to help in the financing of U.S. goods and services exports to the international market, enabling companies to turn international leads into solid sales.
Firms specializing in international business development can help jump-start foreign expansion. These firms are groups of highly skilled, experienced professionals offering practical, cost-effective assistance to companies committed to maximizing revenue and profit potential through accelerated international growth. The range of services offered varies by firm, but overall they help companies conceptualize, implement, and manage large or small international business development projects. These services can range from determining the overseas market potential for a product to managing a firm’s export sales to identifying and qualifying foreign strategic alliances. A company wanting to penetrate the international market needs to assign a fully dedicated resource to this initiative. This individual should be the linchpin connecting the organization’s resources, know-how, and culture to the international initiative. As the business develops, additional resources should be assigned to maximize the opportunity. These should be considered investments rather than costs.
3. DETERMINE MARKET ENTRY STRATEGYA firm’s appropriate market entry strategy will largely depend on its level of international development. For a company just commencing its international development, market penetration via in-country distributor sales may be the fastest and most cost-effective way to enter a foreign market. Selling through in-country distributors is relatively low-risk and will provide valuable learning opportunities. Once the target country or region has been identified, a process that will naturally derive from the SWOT analysis, the selection process can begin. Various U.S. government agencies and trade associations can provide a wealth of data to begin narrowing the selection.
Trade publications and events are also an excellent source. Factors to consider when selecting a market may include such criteria as regulatory environment, market size and potential, cost of entry, and competitive environment. To further narrow the possibilities, an in-country visit is required. Once there, the use of trade leads, competitive evaluations, local government assistance, and potential candidate interviews will provide additional information and insights. Major considerations in selecting a distributor are: willingness to assign a dedicated resource, market leadership or track record, marketing savvy, complementary and not competitive products or services, site inspection, and financial stability.
Penetrating a new international market is often perceived as an extension of the existing domestic business. Consequently, many American companies bypass standard business guidelines requiring rigorous market analysis. Only after performing thorough due diligence can one elaborate a service or product offering and accompanying marketing programs.
A company’s preferred mode of entry—in-country distribution, joint venture, merger, or acquisition—will depend on that firm’s primary objectives from opportunistic sales to positioning for long-term market-driven growth.
Economic globalization will increasingly lead to the creation of strategic alliances. U.S. firms must make sure that potential partners share short- and long-term objectives in order to reduce the divergence of ideas and efforts. Common values and shared business/ethical standards will enhance communications, transparency, and effectiveness. The partners should have complementary strengths and weaknesses to build a stronger and more effective alliance. Principles and processes for conflict resolution and the relationship must be drafted and agreed to by all parties concerned for the partnership to run smoothly.
4. DESIGN EFFECTIVE MARKETINGAll markets have commonalities. However, effective international marketing begins with the awareness that markets are also different in ways that are not immediately apparent. The key is understanding consumers and identifying their needs through culturally specific market research. Focus groups can be especially effective in identifying the international consumer’s wants and needs. The advertising agency used in developing the offering should be local or have local representation. Employees with a thorough knowledge of market characteristics and idiosyncrasies will be particularly effective in communicating the desired message and creating and enhancing the brand image. Language skills and an affinity for different cultures are critical assets when marketing internationally.

 

Are Executives Worth the Effort?

Why is it companies will spend more time and effort on defining the decision criteria and the evaluation process associated with spending +$1 million of bottom line profit on a capital acquisition than they will in the acquisition of an executive responsible for driving +$1 million in bottom line profit (let alone the corresponding top line revenue)?
Sound paradoxical? So why does this happen?
Is it because companies believe executives aren't worth the effort? Hardly; you'd be hard pressed to find a CEO that doesn't think people are the key to their company's success.
Unfortunately, some hiring executives trivialize the importance of defining the decision criteria and the evaluation process associated with the acquisition/promotion of an executive. The response is simply, "I know what I want, and I'll recognize it when I see it" with respect to hiring criteria and the associated evaluation process.
Others don't want to admit they know it's important but don't have the time to invest in defining the decision criteria and the evaluation process associated with the acquisition of an executive. So they just pass the responsibility off to an underling or the HR department who attempts to define all this in a vacuum.
There are even hiring executives who simply don't want to admit they really don't know how to go about defining solid objective based decision criteria and evaluation process associated with the acquisition of an executive.
Actually, it typically isn't just one reason this paradox raises its ugly head; it's a combination of reasons ranging from trivializing the importance, to knowing it's important but not making the time, to not knowing how.
Regardless, every CEO knows a bad hiring decision can cripple a company or worse. As an example, propagate this down through the Sales organization's hierarchy all the way down to individual contributor quota carrying sales people, and you have a recipe for disaster.
You can have the best strategy, a bullet proof process, and know exactly what tactics you need to implement to achieve success. It all falls apart if you are deploying the wrong people; because a company's ability to execute is effectively limited by the people doing the executing – full stop.
As an example, companies spend millions of dollars on strategic sales process training every year, but never ask themselves if they are training the right people, let alone take the time to define what "right" looks like. They don't invest in defining hiring criteria and an objective evaluation process consistent with the objectives they are asking sales people to achieve. "Hire someone who excelled at one of our competitors" is the typical hiring criteria, combined with an "I'll know it when I see it" evaluation process. This unfortunately is what precipitates a "sink or swim" situation for sales people. Do this consistently, and your company's revenue stream is in a "sink or swim" situation.
So, are executives worth the effort? Absolutely! Simply put, this is about good risk management. In fact, investing time and effort into defining the decision criteria and the evaluation process associated with acquiring an executive responsible for driving +$1 million of bottom line profit (let alone the corresponding top line revenue) will result in acquiring an executive who will yield far greater ROI for your company than any +$1 million capital acquisition a company could ever hope to produce.

 

Reward Your Employees for Outstanding Performance: Top Five Ways To Reinforce Excellent Work

Nobody works for nothing. That is to say, people work because there’s something in it for them. Financial remuneration, prestige, recognition, pride, a sense of doing the right thing. The preferred rewards for a job well done vary from person to person. But the need to get something for one’s hard work is universal.
Great leaders know all about this. They realize that they cannot simply expect their employees to do their best work, day after day, year after year, without some sort of meaningful acknowledgement. They understand that to get the most from their people, they’ve got to recognize their accomplishments in ways that have an impact, that serve to reinforce hard work and encourage continued creativity and innovation.
Here are a few effective ways to reward employee excellence:
• Show them the money. That is, remunerate your high achievers in accordance to their worth. What value does an employee bring to the company? How do his efforts impact the performance of his team or department? What’s the impact on the bottom line? Think about output, not input. Compensation (such as bonuses) based upon results achieved, rather than tasks performed, is both a powerful motivator and an effective reinforcement.
• Offer sincere thanks. A well-deserved pat on the back, a written letter of commendation, some private (or public) words of appreciation and recognition can be extremely effective.
• Provide meaningful perks. Offer some extra flexibility to work from home where feasible. Give your high achievers the afternoon off from time to time. Send them on a golf outing or to a show. Take them out to lunch at the restaurant of their choosing. The possibilities here are nearly endless.
• Help them keep up the momentum. A motivated employee will relish the opportunity to work on a challenging, new project. Success breeds success. Give your outstanding employees a say in where their talents will be used next. Encourage them to keep on growing.
• Develop them. Mentoring, coaching, and advanced training need not be viewed merely as a means of remediating poor or deteriorating performance. Invest your developmental time and dollars in your top performers. That’s the way to raise the bar, accelerate the growth of your strongest performers, and drive your organization to greater heights of success.

 

TQM Implementation Project Part 7b – How to Overcome Trend Charting and Control Chart Problem

The CONTROL Phase in implementing an improvement project is most neglected step but critical step. It is done to ensure corrective actions or short or long term solution put in placed are effective and able to yield expected results. It cannot be over emphasized the importance of CONTROL.
Just to recap, tools used in the CONTROL Phase are listed below.
In this issue, I will cover the tools in bold:
Trend Charting Control Chart Documentation Audit On-job training Re-certification
Issues in Trend Charting Once data are available, team has to chart out the data with different type of trend chart.Data accuracy is main issue during this stage where team uses it to plot the trend chart and use it for the entire duration of the project.
At times, team cannot decide the duration of the data to be plotted into the trend chart.
There is no clear guide line should the data be 3 months, 6 months etc in duration. How Trend Charting Issues were overcome Though there is no major issue in deciding or changing the duration of the data,
One general rule to use is to include data that reflects before and after an improvement was carried out. Example: if some improvement was done 3 months ago, the data needed is to include those data 3 months before the improvement.
Look for a trend of which point an improvement has began to decide the duration.
Team to consider 3 months duration or longer period. Issues in Control Chart Team need to track the performance of the improvement for consistency using the control Chart. Below are some common issues faced by the team:-
team has no confidence to decide the control limits when it is out of the spec requirement.
Team has no experience to interpret the control chart trend
Team not sure what to do when it is out of limitsHow control chart Issues were overcome For experience user of control chart, there is not much of an issue to use it. However, my team has no prior experience in using the Control Chart. Hence, they adopted the following approach to overcome the above problem:-

 

Effective and Responsible Employee Termination Interviews

It is the occasion that every manager has faced—terminating an employee. Few managers can say that this is an easy part of their job. Terminating an employee is always a difficult and stressful task. In today’s volatile workplace environment this task is even more difficult. The potential for litigation, adverse publicity, and even violence makes the way you discharge workers even more delicate. There are ways to mitigate these circumstances and the termination interview is pivotal to effective workforce management.
Timing. There are two schools of thought on when to terminate an employee. One group suggests that employees be terminated at the end of the work week. Terminating employees who deal with company funds, sensitive material, or valuable company assets at the last possible moment is often the safest way to protect the organization. Workers facing termination can act in irresponsible ways that are motivated out of anger and disillusionment. This is certainly possible with employees who have not anticipated separation. The opposing school of thought proposes that employees be given appropriate notice of impending termination. This gives the employee a small duration of time to begin to seek other employment before wages cease and perhaps more importantly, it gives employees time to make the emotional separation of leaving friends and coworkers. The importance of these relationships should not be underestimated and giving workers time to say goodbye can mitigate the depression and anger that frequently follow loss of employment. Each situation should be examined on a case by case basis and where security issues allow, employees should be given some amount of notice.
Documentation. Just as you document the events leading up to termination, the interview itself must be well documented. Many managers find a checklist or notes helpful to keep the interview focused and on target. The exact time and date of the interview, persons in attendance, and location should be noted. Also, any documents presented to the discharged employee such as performance appraisals, severance information, and disciplinary forms should be copied and attached to the manager’s notes. Reasons for discharge should be put in writing and a copy of such should be given to the employee. Failure to put reasons for termination in writing can be the source of confusion, recrimination, and future litigation. Many employers give employees an opportunity to comment in writing during the exit interview. The value of this is debatable but many employees find this practice comforting and empowering. However, this option often merely leads to vague accusations and name calling. Unless your organization conducts internal inquiries and follow up tracking of discharged workers, asking for written comments should probably be omitted.
Don’t argue. Even when workers anticipate separation, this process is rarely without strong emotions. These emotions range everywhere from fear and sadness to rage and panic. As a manger it is your job to allow an employee the opportunity to vent these emotions within reasonable parameters. Often, when a manger is confident in their decision and sensitive to employee’s feelings they can set the tone of the interview. Care should be taken to use a calm and responsive tone of voice and avoid feeding an employees anger. This is not the time to argue every point and set blame. It is hard to avoid becoming angry when being confronted with such strong emotions that often become very personal. But by remaining calm, a manager can control the content of the interview and keep it focused on the facts at hand. It is essential that the agenda you have set for the interview be followed and all issues discussed with the employee. If you lose control of the discussion you run the risk of failing to give vital information in a clear and indisputable manner.

 

Meetings Do Not Have To Last Forever and Accomplish Nothing

Does it feel like you spend all your volunteer time, or time at the office in meetings? You know, the endless meetings, the ones that frustrate everyone and accomplish little. This is a common complaint among workers and volunteers, of all types and levels. Does it have to be this way? I do not believe so. Here are some guidelines for conducting a productive and as short as practical meeting. Share these ideas with everyone you know who is a victim of the meeting plague.
Have an exact (as much as practical) agenda for each meeting and circulate it in advance, even if it is just an hour or two before the meeting, circulate it. Let attendees know the agenda for the meeting. Let them know what you or the group expects from each person.
Have a moderator or leader for each meeting. Rotate the position if possible so all can see what is involved and can buy in to a new meeting format. This rotation also keeps one person from dominating at the expense of others.
Stick to the agenda. Stray if needed at the end, during the “new business” part of the meeting. Stay on task. If people try to steer the discussion off task, tell them you can discuss the errant issue later.
Set a time limit on meetings. If well planned and well run, 1 hour can handle most meetings. If everyone arrives informed and prepared, meetings do not have to take hours. It is a meeting, not social hour. Do not confuse the two.
If you must have longer meetings, treat them as a series of 1-hour meetings, strung together. Stick to the agenda and schedule for each hour. Move the meeting along. Stay focused. Take short, timed breaks, between 1-hour sessions.
If there is much dissension in the group, have the dueling factions meet and have them bring back their resolutions to the overall meeting, or to the next meeting.
Do not let one person or department dominate the meeting. Keep an hourglass or timer on the meeting table. Tell attendees they have a set amount of time to speak and explain their position. Then, flip over the hourglass, or start the timer. If someone runs over a short amount, that is okay. If they appear to think as they speak, privately ask them to prepare better for the next meeting.
For emergency meetings and for serious problems, take all the time needed to thoroughly discuss the challenge or situation without ruminating. Develop a plan of attack. Detail the line of responsibility and timetable for action.
Strive for a relaxed, fun when appropriate, inclusive atmosphere. As business consultant Tom Peters says, “Listen to everyone. Ideas can come from anywhere.” Lead the group in the right direction, based on the purpose of the meeting. Avoid manipulation, attendees will sense it. It will make them tense and it might cause resentment.
Be grateful and appreciative for input, ideas, and suggestions in public. Correct and criticize in private. Share acclaim with all involved. Accept the blame when you have caused a problem.
Adapt these guidelines to fit the personality of your group, if you can. Do not try to impose a new format. Bring it up as an agenda item at the next meeting. Meet with the power players of the group before you announce the idea to the group. If the main group members see the need and benefit of a change, it will help to get the format changed.
If you cannot get the group to consider a new format, look at the group and honestly answer this question. “Does this group accomplish its goals using its current meeting format?” If it does, let it be. If it does not and will not change, save yourself some frustration and find another group to serve if you can. If you can’t either keep searching for a new format that works better, or accept that you have no control or influence over the format and work within it.

Monday, May 14, 2007

 

Retention - 10 Reminders

Employee retention is heavily dependent upon two key factors:
1. Leadership skills of management
2. Human resource strategy
No matter how wonderful your company is, people won’t stay if their front line supervisor is an “untrained jerk” with poor people skills. Of course, if you have a definitive human resource strategy, the “untrained jerks” will no longer be managing your employees. In fact, he/she will probably be working for someone else. These words may be a little harsh but in reality there are some managers out there with very poor people skills. Even the manager that doesn’t exactly fit this description but lacks basic people and leadership skills can drive employees to seek other opportunities.
Retention Reminders
1. Managers are allowed to hold employees accountable through discipline and provide constructive feedback, but never at the same time.
2. Managers should never ask why an employee does anything. Responding to the word “why” requires justification and evokes defensiveness. Try instead, “I would like to understand your reasons for. . . .”
3. There is no such thing as “Constructive Criticism”. Criticism creates discomfort and defensiveness. Consider reshaping the conversation such that it becomes constructive feedback. This can be done by taking a positive approach on every issue.
4. In making constructive feedback, managers should encourage employees to listen to the substance of the discussion and avoid becoming defensive. Delivering constructive feedback well should be a key management skill and a training issue.
5. Managers should never try constructive feedback in a situation unless they can actually suggest positive behavioral alternatives.
6. If an employee fails in a situation, the manager should recognize his/her failure to train, develop, support or communicate with the employee.
7. Both sides should recognize the difficulties inherent in constructive feedback and recognize its importance in transmitting the experience required for growth.
8. The employee should always confirm his/her understanding of the criticism by restating it in the form, “If I understand you correctly, you are saying. . . . Is that correct?”
9. If either party feels uncomfortable after a constructive feedback discussion, they should say so:
a. Boss, I feel like I’ve just been punished because you. . .
b. Joe, I feel that you became defensive because you. . .
10. When the system works, you have a Win-Win situation because you both have the same objectives. It works better if you try to help each other. Train your managers on coaching and mentoring. It will go a long way towards improving employee retention.

 

Engage Your Employees Through Discovery

Large or small, companies can have a difficult time keeping employees engaged. “Engaged” is a term used to describe employees who are still motivated about their work and excited about the possibilities of your company and your products or services.
When an employee’s work for you becomes routine for them, he will often start thinking of his position as just another job for just another company. Suddenly, “the grass is always greener” comes into play and your employee starts seeing better possibilities outside of your company.
We all remember the excitement of finding a great new job: the potential of what the future may bring, the challenge of learning new tasks or roles, and the opportunity to meet new and interesting people. Even knowing that this excitement rarely lasts long before it, too, becomes routine doesn’t stop people from changing jobs.
Retention of your employees requires your attention and time. If you’ve done much hiring, you already know that recruiting takes much more time and money than retention. Turnover can be disastrous to your employees’ morale, your company’s knowledge base, your budget, and your production schedule. But how do you re-engage your employees in an effort to stop or prevent turnover?
There are at least as many ways as there are people suggesting them. One method I’ve found that works well is what we’ll call “Discovery Days.”
Discovery Days evolved after hearing feedback during managers’ meetings. The managers complained about the lack of shared knowledge between departments. What I discovered wasn’t unusual. As small companies grow, it’s easy for each department (or employee) to become so involved in meeting deadlines or doing the job that the big picture is lost.
Knowing why you are doing a task or job helps keep it interesting. You are no longer standing on a production line watching for a below-standard product to roll by. You are the last line of defense for the company, ensuring that customers will receive an above-standard product that cures their problem. The only way your employee is going to understand their role in the bigger picture is if you explain it.
Discovery Days is possible whether you have multiple departments or just multiple employees. The concept is rather simple; talking management into participating can take a little more effort.
Each department head prepares a presentation about what the department does for the company, how they do it, status of current projects, and projects in the pipeline. The presentation itself should take between 30-45 minutes and time is allowed for a question and answer period after the presentation. Scheduling an hour usually works well.
Depending upon the ability of your employees to stop working to attend, each presentation should be given at least twice. Schedule the presentations so they fall on different days and times to ensure everyone in the company has the opportunity to attend. For example, schedule a Tuesday afternoon one week and Wednesday morning the next. Talk with front-line managers to find out when would be most convenient for their employees. If you make it hard for your employees to attend, Discovery Days becomes a negative instead of a positive.
You can schedule a series of presentations so one department presents over a two-week period, the next department over the following two-week period, and so forth until all departments have presented. That’s the pattern I followed the first time I did Discovery Days. The advantage was that all the department heads were working on presentations at the same time so it was easier to meet deadlines. It may also be easier to work a series into your slow period each year.
The downside of a series is that it’s difficult to do it more than once each year, so a long time goes by before it begins again. A better schedule is one that happens more frequently so employees are constantly reminded of the company’s goals and vision.
Setting up Discovery Days so one department presents each quarter gives you an on-going re-engagement plan. A quarterly presentation also makes it easier to have all employees attend each department’s presentation because they only attend one meeting every three months. However, you still want to have more than one presentation scheduled for each department so production doesn’t stop because everyone went to the presentation at the same time.
How does this work if you are smaller and don’t have specific departments? Your Discovery Days will be simpler but still hold value. Even if you only have a few employees, you’ll want to make sure they understand what your company is doing, trying to do, and what you hope to do in the future. Connect their jobs to your current and future goals and projects. Explain how the widget they help build helps the company and helps the company’s customers.
Success relies on several factors. First and foremost, it is critical that senior management agrees to make the presentations and understands the value these add to the retention and engagement of all employees. Next, make sure all supervisory personnel also understands what you are doing and why. You want the anticipation for these presentations to build and create excitement and interest.
The meetings cannot be mandatory or they will lose value. It is management’s job to encourage employees to attend and arrange attendance to ensure normal production continues. In addition, you must schedule these during work hours and pay your employees for the time they spend at these presentations. Although you could schedule these during lunch hours, it’s not really the message you want to send … that you don’t feel these are important enough to take work time for them.
You will probably find, as I did, that the first meeting will have the lowest attendance because employees don’t really know what to expect. Once word-of-mouth gets out, the meetings are well-attended if you are presenting interesting information. I have found that employees become, once again, highly motivated when they are reminded of what the company is striving to achieve and how all the pieces fit together.

 

The Four Biggest Mistakes a Supervisor Can Make

In the twenty-plus years I have been working in human resources, I have been able to see first hand the mistakes most often made by new and seasoned supervisors, managers, and others who lead employees.
Over time, I have consolidated these common errors into four major mistakes. See if you or someone in your organization is making these mistakes needlessly by reviewing the following list:
1. GIVING FEEDBACK BASED ON PERSONALITY INSTEAD OF BASED ON DATA, BEHAVIOR OR
RESULTS.
Sometimes called the "halo or horns" effect, this phenomenon is seen when a management member tries to turn everyone on the team into a "mini me". Certain his or her personality type or style is the best, this supervisor offers advice, counseling, feedback and even disciplinary action based on style or personality traits instead of on data, numbers, observed behaviors and other objective criteria.
2. FAILING TO ENSURE SOMEONE'S DIGNITY AT THE BEGINNING, DURING AND AT THE
END OF A ONE-ON-ONE.
The single most important component when giving someone corrective feedback is to ensure that person can walk away with dignity. When two people are in conflict or getting defensive (which is the main theme to most one-on-ones) this becomes increasingly difficult. In an attempt to appear in charge and in control, the supervisor may try to "win" by demeaning the employee with veiled insults, overheard gossip about the employee, or using statements like "everyone agrees with me".
3. NOT ACCEPTING RESPONSIBILITY FOR EVERY RESULT PRODUCED BY THEMSELVES
AND THEIR TEAM.
Note that this mistake says "EVERY RESULT". This is a very hard shift for many new management members. The new manager is no longer an individual contributor, and is now responsible for every person' s performance. This is a contradiction in the "real world". No one can control or change another. And yet, in management, you are expected to take responsibility for your team's performance, especially when it is lacking (and frankly, to NOT take credit when the performance is good!). The supervisor must determine what isn't working and why and correct that; and when things are working, he/she must continue these processes while ensuring everyone stays challenged, motivated and recognized. Thank God for stock options!
4. NOT LEADING BY EXAMPLE.
Anyone who has had a moody boss knows that the tone of the day was set by this person's mood. To fail to show your "best face" regardless of the circumstances encourages similar behavior in your employees. This supervisor often doesn't see the correlation between his/her example and the team's mimicking behavior. Accusations of being unprofessional when employees arrive "just a little late", or when they begin to snap at co-workers, often come from this very supervisor. This inevitably leads to a lack of trust and performance that only follows the "just enough to not get fired" standard.
How does someone making these mistakes turn these around? By doing just that—turn around or reverse these mistakes and make them positives. Here’s what this would look like:
1. Focus on facts, not personalities.
Before talking with an employee gather the data that supports your concerns. If your data doesn’t support your pending constructive feedback, it’s time to consider that you are judging this employee based on your own subjective criteria. This isn’t just a bad management technique, but it could land you in court. In addition, when giving someone a “pat on the back” reinforce this recognition with the data that earned it.
2. Ensure Dignity.
Ensuring another’s dignity is possibly your biggest obligation as a management member. This may be why managers were invented. If someone feels they are being treated unfairly or have been wronged, it is the management member that is looked to as a corrective liaison. Another important factor in this step is to ensure YOUR OWN dignity in every situation. To ensure another’s dignity does not mean you sacrifice your own values or objectives. It also does not mean that you ignore your personal life or accept extra responsibility without a future pay-off.
3. Accept Responsibility for Results.
This is still the same advice as with the #3 mistake above. You have got to get your “arms around” this concept and deal with it. It is unfair and unreasonable, but it is the reality of management. Learning to work with others, especially those that are different from you (or that you don’t like) are the first step. Learning conflict management techniques, listening skills and all the other “soft” skills you have no doubt heard about, are the tools needed to accomplish this. Your parents and your school system did not teach you these skills, so it is up to you to learn them and USE them.
4. Demonstrate Your Idea of Excellence.
This is a variation of “lead by example”. The difference is that it is about demonstrating YOUR idea of excellence. This means that instead of mimicking your boss or reading about leadership in a book, you decide what a leader does and says and stick to that. Aristotle said that excellence is a choice we make every day and is therefore not an outcome, so much as a habit. Expect to make mistakes, but also look to remedy these errors. This is also demonstrating excellence (which is different from being perfect).

 

Developing Human Resource Policies For Your Small Business

As your small business grows, you’ll discover that the more employees you hire, the more help you need with personnel issues. By the time you’re ready to establish a position or department for managing human resources concerns, it’s past time to consider a human resources policy. The idea of “policies” make some small business owners cringe, but the hiring and management of individuals other than yourself will bring a wealth of unanticipated needs. Considering the development of such policies could sound daunting, as well, but once you put a plan into place, the process can be more streamlined. Your plan should include research, room for growth, and presentation. Start with these fundamentals and you’ll be well on your way.
One of the first pieces of research you’ll want to undertake should be to governmental resources. Local, state and national resources are available for business owners and because there are non-negotiable legal matters, you’ll want to address labor law compliance, immediately. Once you’re familiar with the laws for your type of business, your geographical region, and the number of employees, you can move on to other industry-related resources to provide guidance in developing additional policies.
Consider, too, the best way to package the contents leaving room for expansion. Let’s say you have a simple policy concerning employee attire. But you know better than to solidify that area; trends change, and ultimately you could be faced with work-appropriate dress code issues you never imagined. Has your policy been written with room for flexibility? Is there room to reword or even add additional outlined parts to your dress code? You may be glad later.
Having begun drafting, now consider how you’ll make that information available to your employees. Some companies create a manual which can grow as your policies shift and expand. Others put the policies together in a brochure or flyer that’s distributed to each new-hire. Still others publish their policies on their company websites. Of course there’s nothing that says you can’t use more than one of these methods of presentation.
From planning, drafting and production, your human resources policy manual, no matter the length, will help save time and money as your organization grows. Use the resources available to you, at governmental levels, and also through human resource management-related associations, websites and publications. Use a flexible, organized structure with plenty of wiggle room. Finally, make sure your finished product is output in an easy-to-read, easy-to-locate format. And, of course, remember to make each employee aware of its existence. The human resources policy manual may not seem related to the reason you started your business in the first place, but the development of such a document will ensure the more efficient likelihood that you’ll have more time to spend doing the things that drew you to the business in the first place. Think of it as a business investment. Maybe one of the best ones you’ll ever make.

 

Performance Management

Do you want greater success? Expect more and execute better. Effectiveness is defined as the power or capacity to produce a desired result by American Heritage. Success is defined as the achievement of something desired, planned, or attempted; achieving the results expected. There is a definite connection between effectiveness and success. Effectiveness and success are about power.
It is important to find a way to increase your personal power by becoming a bit more efficient and effective. Wouldn’t achieving your top three goals be a great deal easier if you were more efficient and effective? Wouldn’t it be possible to move your three biggest goals from December to June in 2007 if you were better organized? Systematize your success. Identify the critical steps required to complete your most productive and rewarding activities. Then, create a system to automatically give you results every time. Systematize those steps through technology, checklists, delegation or by enrolling additional team members—and you will achieve the results you expect—far more often.
Your secret is to create systems that utilize the best tools and technology—systems that bring out the best in you and everyone on your team. Performance improvement begins with a business coach. A business coach will give you the accountability that you need to set goals and move your life towards your definition of success. Being success means that you know you cannot do it alone and do not need to do it alone. Think about the following today and see why procrastination is costing you money and success: What would you do if you knew the Universe would back you up, completely? What would that be like? How would it change your life?

 

Performance Management

Do you want greater success? Expect more and execute better. Effectiveness is defined as the power or capacity to produce a desired result by American Heritage. Success is defined as the achievement of something desired, planned, or attempted; achieving the results expected. There is a definite connection between effectiveness and success. Effectiveness and success are about power.
It is important to find a way to increase your personal power by becoming a bit more efficient and effective. Wouldn’t achieving your top three goals be a great deal easier if you were more efficient and effective? Wouldn’t it be possible to move your three biggest goals from December to June in 2007 if you were better organized? Systematize your success. Identify the critical steps required to complete your most productive and rewarding activities. Then, create a system to automatically give you results every time. Systematize those steps through technology, checklists, delegation or by enrolling additional team members—and you will achieve the results you expect—far more often.
Your secret is to create systems that utilize the best tools and technology—systems that bring out the best in you and everyone on your team. Performance improvement begins with a business coach. A business coach will give you the accountability that you need to set goals and move your life towards your definition of success. Being success means that you know you cannot do it alone and do not need to do it alone. Think about the following today and see why procrastination is costing you money and success: What would you do if you knew the Universe would back you up, completely? What would that be like? How would it change your life?

 

The Death Cycle In Retailing

The death cycle in retailing is a series of events which, if not caught and corrected in time, will cause the financial demise of the store/business as surely as the sun rises in the East. The death cycle usually starts as a result of buying more merchandise than the Store can sell profitably. As a result of this overbuying there are invoices remaining unpaid, that must be paid before the supplier will deliver again. It is difficult to pick and chose which suppliers will be paid without the unpaid suppliers being aware they are being treated unequally, and my cause the "running stock" suppliers to stop deliveries as they see the business in a crisis. Cash payments on delivery becomes the norm with suppliers as the business no longer is viewed as having any "credit worthiness".
This then causes the retailer to borrow money from a bank (if they can) to get current with their resources. At some level of borrowing, the bank will want a personal guarantee from the owner. At this point the business is no longer standing on its own two feet.
If this cycle continues, the bank will eventually raise the interest rate since their risk has increased and if there is no improvement, they will discontinue loaning additional funds and at some point call the loan for payment. If the owner is unable to raise cash from personal sources to pay the called loan, the business fails. All of this does not happen in a vacuum. While all of this is going on several other things are going on:
The owner becomes increasingly frantic and starts making short-term decisions to try to correct long-term problems.
Key employees get very insecure and may leave.
A whole host of record keeping inefficiencies set in. Among them are tracking the bank balance on a daily basis and keeping up with both checks written post dated checks given to suppliers.
Precious time is wasted by the most valuable personnel, including the owner.
Stock deliveries slow down while suppliers wait for their accounts to get current.
Another key employee just left lured away by a competitor.
Important work falls behind.
Chaos has set in.
Sales continue to fall.
Management loses confidence and becomes catatonic; important matters go undecided.One of the features of the death cycle is failure to use an effective retail reporting system. All too often we see an excessive amount of records being kept that cannot be pulled together into an information system. Many times manual records are being kept to generate lists that could be available automatically from the store's computer system. Many times retailers have computer systems that are not integrated, with invoices being entered twice because someone did not take the time to investigate, plan and execute.
Another feature of the death cycle is the deplorable waste of management time and talent. As a result of a lack of training (who has time?) and personnel turnover (often the most productive employees leave first) and the inefficiencies mentioned above the store staff becomes embroiled in unproductive activities that waste their time. Necessary activities (such as record keeping, order entry, receiving etc), get ignored. One of the common ingredients to this cycle is a lack of planning and control over buying and expenses due to the lack of a management information system, which focuses management's attention on the big picture. Important decisions are made without investigation and thought. Unfocased cahotic Store owners like to shoot from the hip. They like to complain about their plight and about the advantages the big chains have and how unlevel the playing filed is, yet too often they are not willing to perform the management tasks the big chains consider vital.
All of this can be corrected, if outside help is called in and time permits. It amounts to pulling the business up to a ninety-degree stance instead of lying flat on the ground, so the line of vision is established. That's what we do for our clients: help them grasp the big picture, plan ahead, make the right decisions, eliminate stress and enjoy retailing for the rewarding career it can be.

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