Outsourced Learning Are You Ready For Learning Bpo

Writen by Michael Beitler

As the business world enters a period of hyper-competitiveness, every business process will be subjected to examination and possible restructuring. We have already seen outsourcing and offshoring used to an extent what nobody would have dreamed of a few years ago. McDonald's is testing the offshoring of its drive-thru process to India. How about, "Do you want fries with that?" with a New Delhi accent?

Even though McDonald's testing of business process outsourcing (BPO) has caused quite a stir, it's only the beginning. What started as the outsourcing of a few basic business processes, such as payroll or accounts receivable, has grown into a "movement." No internally performed business process is "safe."

IT, finance, supply chain management, and customer relationship management have been outsourced. Why not the learning process?

Labor costs in Western countries are out of control. American, German, and French workers are overpaid. To compete with the Asian countries, Western companies must become more efficient. Controlling costs (and remaining competitive) will require the outsourcing of inefficient business processes.

So, what is "Learning BPO?" The best definition is Hap Brakeley's of Accenture Learning. In Chief Learning Officer (April 2005, p.4), Brakeley defined Learning BPO as:

"a broad range of relationships that organizations establish with an external service company to transfer and/or share responsibilities for the successful operation of the learning function: design, development, delivery, administration, measurement, and reporting."

Brakeley went on to talk about the range of possibilities for Learning BPO:

"The outsourcing relationship may be as simple as outsourcing the learning management system and the learning administration responsibilities (sometimes called out-tasking) or as complex as arranging for an external company to plan and deliver the entire enterprise learning function, encompassing an organization's complete value chain, from employees to customers to channel partners."

How much of the learning process should your organization outsource? Are you fully aware of what outsourcing possibilities are available to your organization? Obviously, you cannot ask your internal providers for an objective evaluation of external resources. Be prepared for strong resistance to change when considering Learning BPO.

To read Brakeley's entire article on Learning BPO see the April 2005 issue of Chief Learning Officer.

To read more about Overcoming Resistance to Change see my special report at http://www.mikebeitler.com/overcomingresistance/

Dr. Mike Beitler is the author of "Strategic Organizational Learning." His book is used at GM, Blue Cross, Ingersol Rand, and others to build organizational learning sytems. Learn more about the book at http://strategic-organizational-learning.com/

Developing Performance Five Easy Steps To Getting The Best Out Of Development

Writen by Pam Kennett

1. Focus on one or two key criteria

After a challenging performance appraisal session, it is tempting to draw up a long list of development suggestions. However, in reality it is best to focus on no more than one or two development areas in any performance cycle. Using performance based criteria such as behavioural competencies will help focus the development. As behavioural competencies are based on the requirements of the job, it will also mean that the development is targeted and relevant.

2. Set SMART goals

Once the criteria for development have been prioritised, express each of the development areas as a SMART goal:-
S specific
M measurable
A achievable
R relevant
T time bound

For example:
"I will develop and get signed off by my manager by May this year a business development plan which aims to deliver a 10% increase in revenue."

This SMART goal is also clever. It delivers something tangible for the business and therefore will get support from management. At the same time, it is also helping to develop such competency areas as 'Strategic Thinking' or 'Influencing'.

To increase the probability of achieving the development goals, it may be helpful to:

• Break broad, long term aims into smaller, short range manageable steps
• Consider whether support from others would be helpful. Discuss the targets with colleagues or a coach as appropriate
• Have a contingency plan in case the targets are not achieved
• Get specific and frequent feedback from others

3. Identify the Barriers

Once the competencies for further development have been prioritised and SMART goals set, reflect on the issues that currently stand in the way of performing that competency effectively. Understanding what these issues or obstacles are will help to focus development efforts and improve the chances of reaching the development targets.

Clarifying the issues will help to identify exactly what needs to be done to develop strengths related to particular competencies. For instance,

• An inability to carry out a task may be due to a lack of skill
• Or lack of appropriate information or knowledge
• Or not seeing this as the right thing to do or part of the role (an issue about values or self image)
• Not having the necessary ways of behaving (a trait issue)
• Not enjoying or being motivated by this (a motive issue)

4. Use Development Approaches which Address the Need

Depending on the particular development issue, select an appropriate development action. For instance, gaps in skills and knowledge can often easily be addressed by training courses. However, traits, motives and self image will require different approaches such as coaching or self directed learning.

5. Constantly Review and Revise Progress

As with any development activity, it is important that regular reviews of progress are built in. If other people are not involved in the review process, set clear indicators of success to enable a personal review.

Indicators might include:

• Deciding how far targets have been met. This may require feedback from others on how far they see the competencies being demonstrated.
• Clarifying the things that are helping and hindering progress and what can be done about the latter.
• Stating ways in which the personal development plan may need revision and the implications of the changes.

Pam Kennett is a business consultant with more than 20 years' experience working with organisations to help them understand the talent of their staff through the implementation of competency models. She has an MBA from City University Business School (London), is a Member of the Chartered Institute of Personnel and Development and is a registered member of the British Psychological Society.

She is the founder and Director of Chiswick Consulting Limited and can be contacted at +44 208747 1886 or http://www.chiswickconsulting.com

For more insights on how to develop and implement competencies to increase performance, contact Pam

Turn Meetings Into Pep Rallies Of Productivity

Writen by Shirley Lee

Everyone has to attend or lead meetings at some time, but not all meetings are created equal. How many people dread going to any meeting verses a particular meeting? How many people feel the attended meeting was a waste of time? Does anyone think the meetings are really producing the desired results? How can meetings be made more effective and productive?

Since everyone has to go to meetings, should those meetings be something people value and look forward to attending? Working together in a meeting requires all the coordination and cooperation required of any team. So why shouldn't the team feel like each meeting is a pep rally leading up to the work or game and of course ultimately achieving a win.

There are a lot of different answers out there for the above questions and a multitude of recommended methodologies. However, if a closer look is taken of each, all the good ones have four suggested elements in common. Those common elements make up the R.A!R.A! Approach which stands for Roles, Agenda, Records, and Actions. Sure there is more than four factors to a great meeting and the full R.A!R.A! Approach covers a lot more, but the minimum of these four can turn a non-productive meeting into a productive meeting. Let's take a high level view of the R.A!R.A! Approach and how it increases the effectiveness and productivity of a meeting.

Before the meeting:

• The first step in planning a meeting is to assign any roles necessary to the meeting going smoothly. Typically the meeting will need a leader or facilitator and a recorder (a.k.a. record-keeper) as the minimum roles. If the team is new to meetings a trained facilitator is useful in coaching the team towards good meeting practices. Other roles may be included as the team or leader sees fit.
• The next step is for the leader or facilitator to define an agenda (game-plan) for the meeting. A rough draft of the agenda may have been established by the team in a prior meeting or by the leader for a new meeting. The defined agenda should include the topics to be covered, who will present them or discuss them, and a time limit per topic. When the reminder of the meeting is sent out, include the proposed agenda and if there was prior meetings include any outstanding actions.

During the meeting:

• At the beginning of the meeting, there should be a quick review of the roles and the agenda. The team should agree to these because the roles and the agenda are used to keep the meeting on-track to time limits, defined topics, and keep team working in a cooperative and coordinated effort.
• Throughout the meeting, the facilitator, leader, or recorder will record items of discussion, decisions reached, and actions to be taken either outside of meetings or in the next meeting.
• At the end of the meeting, the team will review the list of actions and make sure each one is assigned to a person along with a due date. If there is a follow-up meeting planned, the team may draft a tentative agenda for the next meeting. The tentative agenda will be defined in more detail by the facilitator or leader before the next meeting.

After the meeting:

• When the meeting is completed, the recorder will type and distribute formalized minutes of the meeting as a record of what occurred. Records are important for reviewing past discussions and verifying decisions that were made and why. The records should also include the original meeting agenda at the top, and the actions assignments and next meeting tentative agenda at the bottom.
• Having the actions in the record serves as a reminder to the team members of what they need to do next. If individuals have actions they need to accomplish, they will know when they are to be done by.

The next time a meeting is planned, begin introducing the four elements of the R.A!R.A! Approach: Roles, Agenda, Records, and Actions. With the acceptance of each element as a norm in any team meeting, the team will not only notice a difference in productivity, they will know they are becoming more effective and will begin enjoying the meetings more. The more enjoyable and effective the meeting, the more people are willing to attend and follow-through by completing their assigned actions.

Copyright 2006 Shirley Lee. All Rights Reserved.

Most of the information in this article has been adapted from the "Wizard of When - a Series on Planning" which contains training on the R.A!R.A! Approach. The series is copyrighted © 2003 by Shirley Lee, All Rights Reserved.

Shirley Lee is a consultant/facilitator who helps organizations increase employee, communications, and system capacity to produce results. Shirley designs and facilitates a variety of team building, problem solving, and productivity improvement events. Her programs include managing time, facilitating meetings, project management simplified, workspace or group organization, the problem solving process, and team-building.

http://www.geocities.com/slee_rightfit/

Employee Motivation Its More Than A Paycheck

Writen by Marcia Zidle

Managers often ask, usually with exasperation, "How can I keep my employees motivated? I pay them decently. What else is there?"

Offering competitive salaries is certainly important. But a paycheck is what helps people get to sleep at night, not what gets them going in the morning.

What keeps them committed to come in on the weekend or stay late or go that extra mile is more than money – it's the day-to-day 'stuff' like respect, fairness, recognition and feeling in control of their small piece of the world. Here are 10 powerful ways to gain employee's cooperation and commitment to the team, department or organization.

Don't play favorites.
People make judgments about what they see in the workplace. Are promotions fair? Is low performance dealt with quickly? Is their equal treatment for the top floor as well as the shop floor? If the answer is no in their eyes (regardless of the 'truth' of the matter – it's their perspective) then this perceived unfairness will stand in the way of their giving of themselves fully to the job or project.

Share the limelight.
When credit and compliments come your way, spread them around to all who helped. And if you think you're solely responsible for that honored achievement, think again.

Don't kill the messenger.
When things go wrong, resist the urge to throw a temper tantrum, point fingers or assign blame. In most cases, it's the system – the processes, procedures and policies- that usually fails, not the people. Most times, people are just carrying out their job the way it was set up to be done. So fix the system, not blame the people.

Meet them on their turf.
While you may be more comfortable meeting with staff in your office, it's more valuable to meet occasionally where they are located. Leadership is not about your comfort, but that of your people. The symbolic value of seeing you mingling with the troops improves trust. General Patton used this effectively and won many a battle by the loyalty his troops had for him.

Break bread together.
Have an informal breakfast or lunch once a month with a group of workers to find out what's on their mind. Or grab something at the cafeteria, plop yourself down at a table and say: "So, how are things going in your area?" While you may hear some groaning, you will also hear about frustrations that are hindering performance. Listen, acknowledge and then do something about these glitches. Acting on problems goes a long way.

Follow-through.
Effective managers remember the promises they make, take the appropriate course of action, and let their staff know what's been done. If you tell Mary that you are going to check on something for her, do it. And if you don't intend to do something, never say you will. Your credibility will go down each time people's expectations are unmet.

Encourage a verbal suggestion box.
Ask everyone to come to the next meeting with two questions or two improvement ideas. This opens up two-way communication real quickly. Listen intently, clarify and then follow-up each question or idea. If you maximize employee input, you will get a more productive and committed workforce.

Communicate the good, the bad, and even the so, so.
When you're on an airplane and it encounters turbulence or the flight is delayed, you want to know what's going on. Not knowing makes you nervous. Employees also want to know what's going – what's causing the bumpy ride. If people don't understand, anxiety mounts, trust declines, rumors fly and motivation is shot to heck. The next thing you see is morale plummeting and work not getting done.

Catch people doing something right.
Sincere appreciation is powerful stuff - it's feedback, recognition, and respect all wrapped in one. If the little things are done right, then big results will follow. There are ways to say thanks, great job or way to go without breaking the bank.

Use two powerful words- Thank You.
You would be surprised how many people feel that are not appreciated because they rarely hear a 'thank you' from customers, co-workers, or their manager. Saying thanks has become a lost art in the frenetic world of '24/7.' It's a morale booster that costs nothing but goes a long way in helping people put forth more effort.

Clearly managers today play a critical role in not only motivating but retaining valuable employees. If someone is riding in a canoe, but feels being taken for granted, he can't be counted on to paddle with all heart. However, if workers feel good about themselves, the work they do, and who they work for, it is much easier to gain their cooperation and commitment

Marcia Zidle, the 'people smarts' coach, works with business leaders to quickly solve their people management headaches so they can concentrate on their #1 job ­ to grow and increase profits. She offers free help through Leadership Briefing, a weekly e-newsletter with practical tips on leadership style, employee motivation, recruitment and retention and relationship management. Subscribe by going to http://leadershiphooks.com/ and get the bonus report "61 Leadership Time Savers and Life Savers". Marcia is the author of the What Really Works Handbooks ­ resources for managers on the front line and the Power-by-the-Hour programs ­ fast, convenient, real life, affordable courses for leadership and staff development. She is available for media interviews, conference presentations and panel discussions on the hottest issues affecting the workplace today. Contact Marcia at 800-971-7619.

Balancing Your Juggling Act

Writen by Neal Burgis, Ph.D.

Most people do not believe that they balance things in their lives. Instead, they juggle. Some people delegate various responsibilities and tasks to others because there are so many things to do and only so many hours during the day. Many people try to juggle their family, friends, leisure, work, relationships, and health.

The number one career concern for most company leaders and employees is that of balancing work and family responsibilities. Balance is experienced differently by each of us. "Work/Life Balance" did not become part of our vocabulary until the mid-1980s. The issue of work/life balance has become increasingly important to employees to the extent that more executives are beginning to take a step back and look at their own careers and family life.

The following questions have been asked many times by many people: Are work/life practices in your business actually allowing you to have a life too? Does work intrude on personal time? Do we work to live or do we live to work? Even though some might say that the work/life balance does not exist, there actually is a process involved in setting your right balance. You have to find what works the best for you. The work/life balance issue has becomes a greater concern the further you go down the corporate totem pole. Nearly 85 percent of chief executives and managing partners surveyed said work/life balance is either a highly important or very important concern, compared to 90 percent of surveyed middle managers, and 93 percent of surveyed staff.

The art of leading others can be a difficult balancing act. Facing more pressure from others, making tough decisions, and taking risks of yourself and of your organization can take its toll on many. You not only juggle your family responsibilities and work schedule, but also manage your personal relaxation time − when you get the chance.

Addressing needs on an urgent basis demands a lot of attention from a leader, both internally and externally. Having a lack of direction and facing many challenges throughout your day, you need to find the motivation to optimize your productivity. One of the keys to satisfied and efficient leaders and employees is work/life balance.

After hitting the snooze button when you wake up in the morning, how often do you find yourself thinking of everything that you have coming up during the day, and you think and feel that you cannot do it all? To maintain balance, you need to develop specific goals and priorities set around areas of your life that you can work with. This will also help you work smarter not harder. To achieve a better work/life balance, the following tips will help you juggle through your daily routines:

1. Plan in Advance: Plan your week, not just your day, as you create your own road map for your day's work. This helps you avoid wasting your time on things where you can be productive. Make sure as you plan your day that you include spending time with your family – even put this time on your calendar. Put family time on your calendar as well. Some believe that if you spend a few minutes planning out your week, it will make a big difference in your commitments to your family and other important obligation you have without sacrificing what needs to get done.

• Give yourself a daily reminder. Remind yourself on a daily basis how valuable time is that you spend some of it with your family.
• Remember to cross the things that you already completed off your list, and go back to check you list several times during the day. Seeing how many things you have crossed off can also give you a sense of accomplishment and help you move forward to the next things on the list.

2. Prioritize: Be clear as you prioritize your commitments. You need to look at what you have, and at times should do, for keeping both your job and your home life in order. If you find that you have more than five specific responsibilities for a given day, look to see which ones are more important as you prioritize what you can actually accomplish during that day. Some people who consider themselves as happy workaholics, for lack of a better term, are those who can prioritize. They can focus all their energies in a productive way to the extent that they know what their priorities are.

Spend about 10-15 minutes at the end of each day to think about what you have accomplished, and what you want to accomplish tomorrow. This helps you develop your skills in both prioritizing and in planning your week, especially if you have not done this before. You will find that you will become more efficient at juggling your responsibilities as it will also help you set time in accomplishing the tasks you need done.

3. Be Flexible: Manage your home and work on a creative basis. For example, by planning ahead, you are better able to manage your work and home life responsibilities, especially when unexpected obligations arise. Having a flexible work arrangement can accommodate you with your personal and family situations when you need to take off from your daily work routine. If you are both committed to making it all work, and stay in frequent communication, you can get it all done in a way that supports both work and family. Being flexible means being open to any and all changes.

4. Maintain Your Focus: Focus on the things to which you need to commitment. Accomplish what you need to get done within the time span you schedule for that task. Stay focused on what is really important to you and your business.

What keeps us from focusing? Primarily, it is all the distractions that you have that need your attention. Have your assistant or secretary take messages or put the phone calls into your voicemail and set a time on the calendar when you will give this your attention. If you must answer the phone, be brief and tell the caller that you cannot talk at that moment but will call them back at an agreed upon time. Give you secretary or assistant specific instructions for when you are either expecting a particular phone call or when you will be meeting with someone. Set a time block, written on your calendar, when you read and answer emails.

Let this focus spill over to your home life as well. Do not answer the phone during a family dinner – let voicemail take it and deal with it later. Have family time set aside where all cell phones are turned off. Make these times that everyone in the family agrees to, and stick to it.

5. Share the Load: Do not take on a major project by yourself if you can either delegate parts of it, or get others in your department to help you with it. This will get the project done more quickly, it will initiate input by others who may come up with ideas that you did not think of, and it will promote team building within the organization. You do not have to do it all yourself.

This applies to your home life as well. Have a family member or members take on some of the responsibilities and share the household daily chores with that person. Make weekend projects a family affair. Not only does this help with the time commitment, it provides time that you can spend with other members of your family.

6. Unleash Your Creativity: Create an action plan to achieve balance within your life. Explore the options you have before things get too overwhelming for you and your household. With everything you have to do, take a few minutes and think of what you can do to balance your life better than it is currently. You may find creative ways in conducting both your work and home responsibilities within.

7. Take Time Out for Yourself: For many people, there is not enough time in a day to do everything they have to do. On the other hand, many people believe that 80 percent of their results are due to 20 percent of the tasks they work on. Accordingly, the amount of time you spend working is increasing to the extent that the time you spend with your family has been decreasing.

How can you possibly manage to do your work, take care of your home life, and still have some personal time? Whether you take some time out to blow off steam, or look forward to getting through a tough day, you need to take time out and possibly find an outlet to put your mind on something else. Some leaders believe it is not worth working in a high position, making big money, and not having the time to spend with their families. Many of these leaders have found ways to take some time out for themselves.

You need to be flexible with your work, family, and personal juggling acts and be open to ways to implement these steps I have outlined into your specific life situations. You need to know the signs that occur when you are imbalanced: resentment, fatigue, overwhelmed, depression, dissatisfaction at work, and an unhappy family life. And you need to know what will best help you deal with these situations. Every person, family, and situation is different. Take time out and do something you like to do, at work or at home. This will reduce any tense feelings you may experience. If you have not been very effective in balancing your life and work, look to see what you can change a little at a time. Creating a balance between your work and family responsibilities effects the daily functioning of you, your family, and your employees.

In today's fast-paced work and home environments, more and more professionals are seeking ways to improve their lives by finding a better balance between their work and family life. As you juggle your life, keeping all of these balls in the air essentially means being in control and feeling comfortable with the choices you make. By following these basic tips, you will not have to worry about dropping any balls – or at least those you choose not to drop. The next step of putting a plan into action is up to you.

Neal Burgis, Ph.D. is the founder and CEO of Burgis Successful Solutions, an executive coaching firm. He has 18 years of experience in helping others with their goals and performance levels. He specializes in executive coaching on work balance issues of performance, leadership development, self-confidence, customer service and improving interpersonal skills, as well as being a sounding board. Neal holds a B.A. in Psychology, an M.Ed. in Counseling and a Ph.D. in Clinical Psychology. He is a National Certified Psychologist and is certified as both an Executive Coach and a Business and Workplace Mediator.

How To Miss The Target

Writen by Peter Hunter

Target setting in the workplace has for the longest time been seen as a key function of the manager.

The manager considers all the factors of the past, of personnel, and of production then sets the target that his boss feels he should be achieving.

It is not often that the target is based in reality or a practical assessment of what is possible.

The boss wants to achieve greater production so the manager increases the target by an arbitrary number in the naive hope that his workforce will pull together like splendid fellows and achieve the new target for him because he is wonderful.

When the target is not achieved the manager is then quite comfortable blaming the workforce for their failure to achieve it, because he was quite clear when he told them what the new target was.

The fault therefore lies with the workforce.

Or does it?

Let us assume for one minute that the workforce is made up of human beings.

What happens when we tell a human being what to do?

The first thing, that is not visible to the casual observer, is that the little hairs on the back of their neck stand up.

What happens next is a function of the relationship between the teller and the person being told.

In a social situation the response will vary from "What did your last slave die of?" to an altogether more violent reaction if for instance ones partner was holding the iron when you told them to do the ironing.

In the work situation we are not allowed to make a negative response to our boss, even if we were, we know that it would end up with an argument which, because our boss is the one who pays us, does our performance appraisal and allocates our work, we will always lose.

When our boss tells us what to do the little hairs will still stand up but because it is our boss we know that any argument or discussion is pointless.

We paint on a false smile saying "Certainly it will be a pleasure" then we go away and work out how we can avoid doing what we have just been told to do.

This is a human reaction that we seem to forget about in the work situation. The violence of the reaction depends on the degree of telling that is done but the reaction is always negative.

When a target is set for the workforce the effect is of someone telling them how they should be performing.

If the workforce achieve the performance they have been set as a target it is as if they have admitted to themselves that their manger has the authority to tell them what to do.

Because they are human beings, they find that very difficult to accept.

The effort of the workforce is therefore focussed on how to fail to reach the target rather than how to make their manager look good as a result of their efforts.

This may sound as if targets are a bad thing but that is not the case.

The bad thing is the setting of the targets, not the targets themselves.

The catch 22 is how we can set a target, without setting a target.

The answer is .….. don't try!

Instead of setting targets, ask the workforce what they think the target should be.

Getting the workforce to set the target normally produces a target way in excess of the level of performance that the boss thought of as his stretch target, and oddly enough, this huge target, set by the workforce, will normally be achieved.

It will be achieved because it belongs to the workforce. Because it is theirs, they feel a pride in their ability to achieve it and its achievement becomes their focus.

Life however is seldom that simple.

Today's workforce have become accustomed to the tricks of a devious management who keep trying to get them to produce more for less.

If you ask today's workforce for their opinion they will suspect a trick and be very guarded in their response.

They do not trust the person who is asking the question. To get an honest answer there has to be trust.

To build that trust the manager has to behave towards his workforce in a different way, a way that will allow trust to build.

Until that trust has been built we will continue to miss the target.

Peter is simply brilliant. And I mean simply literally - his writings, though too rare here, are always extremely accessible. Someone whose wisdom I would always feel privileged to share.

Supplier Sees 53 Reduction In Outofspec Orders Case Study

Writen by Rick Weaver

The goal of perfection is a challenge. It is often viewed as an expensive process requiring large investments. Yet one company has realized a 53% reduction in orders that have to be set aside for additional Quality Control checks. How did they do it? They used communication techniques - not capital outlay!

The secret to there success revolved around team skills and communication. The company's Production Manager formed a focus group to discuss comprised of members from each department that was affected in some way by the rejects. Using a proven "problem identification" process, the production manager was able to facilitate a brain-storming session separating symptoms from root causes. The team was quickly able to identify the main reason for the rejections.

"Using this process lead us very quickly to a cause that we never would have even thought of otherwise," the Production Manager stated.

Parts were being rejected due to what Union members saw as an insignificant variation in the specifications. They did not understand managements was rejecting the part because of one or two degree differential in the temperature during one phase of production. Union members had grown to view the rejections as a management scheme to pick on shifts or individuals. Management knew the impact of the temperature on the finished product and the ultimate reliability of the part in the final product.

As the Quality Control Manager pointed out, "We had been working on what we thought the problem was for quite some time. We were addressing symptoms and never even got close to the root cause."

The success came after a Team Skills program was presented by Rochester Hills based Max Impact. During the program members of management learned through vivid examples and experiential learning how to use individual talents to generate synergy as a team." We learned how to work together in a way that will have long-term rewards," according to the company's President.

"Using the team problem solving model we learned in the Team Skills program, and the tools we received from the program, we saw the rejection issue in a different light," added the Production Manager said, "The problem has been haunting us a long time and was getting worse. With just three meetings we were able to reverse the trend dramatically."

Although pleased with this success, the company's President says, "it is exciting to know that we can use this same process to handle even more problems." He has his eyes on nearly a quarter million dollar savings he hopes to see within the next six months. "As good a success as it was, it is more rewarding to see that my manager now truly believe that things don't have to be the way they always have been. They know that even though we were good, we can do even better."

If you would like more information about the problem identification system used in this success, contact Max Impact at 248-802-6138 or via email: info@getmaximpact.com.

Rick Weaver is President of Max Impact, a national leadership and organization development company based in Rochester Hills, Michigan. Rick is an accomplished business executive with experience in retail, market analysis, supply chain and project management, team building, and process improvement. He has worked with hundreds of companies to improve sales, processes, and bottom-line results. MaxImpact offers leadership and organizational development services along with employee assessments and background checks. Contact Rick at 248-802-6138 or via email, rick@getmaximpact.com. MaxImpact is on the web at http://www.getmaximpact.com

Innovation Management Selecting Good Ideas

Writen by Kal Bishop

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation. There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.

A number of idea selection methods can be used. For a comprehensive evaluation, it is advisable to use all methods. Considering the costs of Research and Development and the added cost of re-engineering products when flaws are discovered, it pays to conduct in-depth valuation before large investments in that idea are given a GO status.

Some of the idea selection methods include:

a) Comparing the type of idea with those types of ideas that have previously been most successful.

b) Judging whether the idea fits well with the firm.

c) Analysing the likely practical impediments that may prevent successful commercialisation.

d) Knowing how and when the GO or KILL decisions will be made when an idea is in the idea funnel.

e) Knowing how the consumer will benefit.

Additionally, there are benefits to failure. Whilst an idea may be judged as being commercially unsuccessful, the firm, team or individual may learn valuable competencies that will increase the chances of the next product being successful. Ridley Scott had limited commercial success with Blade Runner, but went on to make some of the most lucrative movies ever.

These topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com.

You can also receive a regular, free newsletter by entering your email address at this site.

Kal Bishop, MBA

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You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com.

Are You The Culprit

Writen by Robert A. Kelly

Are you a business, non-profit or association manager who pretty much ignores your organization's important outside audiences?

If that's you, do you realize how difficult you're making it to achieve the important behavior changes you really need and want? I mean changes that lead directly to achieving your department, division or subsidiary's objectives?

I'm talking about achieving new levels of membership applications; growing the repeat purchase rate; capital givers looking your way; attracting new prospects; expanding the list of organizations officially specifying your service and products; or suppliers newly motivated to meet your strict quality and delivery requirements.

Start operating in your own best interest by taking a closer look at the public relations work underway on behalf of your unit.

Is it focused more on communications tactics than upon a workable, comprehensive plan for dealing with those key external audience behaviors that impact your operation the most?

What may be needed is a refocus on the fundamental premise of public relations: People act on their own perception of the facts before them, which leads to predictable behaviors about which something can be done. When we create, change or reinforce that opinion by reaching, persuading and moving-to-desired-action the very people whose behaviors affect the organization the most, the public relations mission is accomplished.

When you meet with the PR people assigned to your unit, be clear about the need to list and prioritize those key external audiences, and then monitor how your unit is perceived by members of those audiences. That means interacting with those folks and asking lots of questions. Now, and only now, can you mount an effort to alter those perceptions, and thus behaviors, in your direction.

You need to evaluate the data gathered during the perception monitoring session. Is there a glaring inaccuracy about your organization mentioned by several members of that audience? Any false assumptions come bubbling up about your products, services or management? Are misconceptions, rumors or distinctly negative attitudes obvious during your monitoring interviews?

From these data, you frame your public relations goal. For example, spike that rumor, correct that inaccuracy, clarify that misconception or "we'd better do a better job of communicating our service benefits."

Every good PR goal needs an equally good strategy showing you how to achieve your goal. But when it comes to matters of opinion and perception, there are only three choices available to you: reinforce existing perception/ opinion, create perception where there is none, or change existing perception. Just be certain your choice of strategies is a natural fit for your new PR goal.

Your public relations people should be especially useful to you for the next step, writing a message positioned to alter perception among members of the target audience. You should, however, be closely involved in putting the message together. It must be not only persuasive, but compelling as well. And it must be very clear as to why the offending perception is simply wrong, or unfair, including the language needed to correct, clarify or change it. I'm certain you will agree that, as you make the case for your point of view, you must be believable.

No easy task to alter what people have come to believe, but certainly worth the effort.

Your public relations people will help you deliver your message to the attention of members of your key target audience. They will identify the communications tactics to help you do the job. As they will tell you, you have a broad choice of tactics such as newsletters, radio and newspaper interviews, newsworthy special events, brochures, speeches and scores of others. The only caveat here, check carefully that your chosen tactics have a record of reaching people like those who make up your target audience.

In short order, all concerned will wonder aloud whether progress is being made toward the public relations goal. Obviously, to satisfy yourself that offending perceptions are actually being altered, leading to the behavior change you desire, you must remonitor the perceptions of members of your target audience.

The difference this time is, you will be watching carefully for clear indications that perceptions are, in fact, being altered.

Now, if you're not pleased with the rate of progress, add a few more communications tactics, as well as using them more frequently, to increase the impact.

So, as a manager, you've pretty much ignored those important outside audiences until now. But, hopefully, these comments have convinced you to ramp up your unit's public relations effort and pursue the behavior changes you really need and want, and that lead directly to achieving your department, division or subsidiary's objectives.

end

Please feel free to publish this article and resource box in your ezine, newsletter, offline publication or website. A copy would be appreciated at bobkelly@TNI.net. Word count is 890 including guidelines and resource box. Robert A. Kelly © 2004.

Bob Kelly counsels, writes and speaks to business, non-profit and association managers about using the fundamental premise of public relations to achieve their operating objectives. He has been DPR, Pepsi-Cola Co.; AGM-PR, Texaco Inc.; VP-PR, Olin Corp.; VP-PR, Newport News Shipbuilding & Drydock Co.; director of communi- cations, U.S. Department of the Interior, and deputy assistant press secretary, The White House. He holds a bachelor of science degree from Columbia University, major in public relations. mailto:bobkelly@TNI.net Visit:http://www.prcommentary.com

A Smarter Way To Get Paid

Writen by Vernon Stent

The majority of companies employ their staff on a time basis. The employee is contracted to work so many hours each week and is paid for each one of those hours.

The questions is....why?

Pay-for-Time versus Pay-for Performance

If an employee is employed simply to be somewhere and not have any other function then it may be understandable that they are paid solely on how many hours they are there. A few - very few - examples come to mind: perhaps a security guard who simply reports what he or she sees or is simply there as a deterrent to would-be thieves; perhaps somebody who is employed to monitor how many cars pass through a particular junction. Hey, wait a minute, surely the security guard needs to look smart and have his or her top button fixed; the car-counter must ensure that an accurate record is being kept?

Well, the more enlightened companies tend to pay on a mixed basis with time still being the main element and quality elements such as smartness or accuracy, for example, being used to top up the salary. However, with many jobs should this be taken one stage further? Surely most companies want their staff to complete the tasks they have been set? Many jobs are not directly dependent on the clock at all. They are more dependent on getting the job done. Admittedly, a call-centre salesperson may be tied to their desk (some might say chained!) for a fixed period of time. Yes, they have tasks to fulfil, but they are governed largely by the clock. However, the labourer, electrician, plumber, postman, sales manager, buyer etc etc are largely judged on getting the job done. Why shouldn't a fast postman, for example, be allowed to go home early on full pay - if they have completed their round? By the same token, shouldn't the slow postman be made to stay until the job is done, without any extra pay? Further still, shouldn't the fast postman be permitted to carry out a second round in one day and double his pay? Of course I have simplified the argument to make the point. Many postal organisations do have a policy of paying for the round (or perhaps paying according to how many letters are posted) - but many do not. Why? Why are so many companies paying on a time basis when this does not fit the goal of the organisation? Take builders. If a house could be built simply by having a load of builders turn up on time and stay for 8 hours each day then house building would be very easy indeed. No, builders should surely be paid for their productivity. Turning up for 8 hours a day doesn't really come into it.

Speed versus Quality

I think I partly know the answer to my own question. I have omitted quality, of course. Take builders. Just being fast is only part of their job. They also must work safely. Skilled builders must do a quality job, not just hit the deadline. The postman must post the letters to the right addresses: if he tries to squeeze in an extra round he may not achieve this in the rush. Because this balance must be struck in most jobs - the speed versus quality balance, it is easier for companies to simply pay on a time basis, and manage staff within that framework.

Too Complicated - Too Difficult

Isn't this laziness on the part of employers? Wouldn't is be better to analyze each job and work out the best way to pay staff. Surely the salesman's salary should be mainly weighted towards sales with minor weighting given towards administration, keeping up corporate policies and image etc. Shouldn't a labourer's pay be weighted with safety record at say 55% and productivity at 45%? And what about our postman, wouldn't it be better if his pay rewarded quality and speed in roughly equal measure? No, say many employers, this would not be better, it would be very complicated. Speed could be measured fairly easily but quality aspects require judgements. There are bound to be anomalies and accusations of unfairness, say employers. It's simply easier to pay by time, make sure the staff turn up and then work on them.

I say that is the lazy approach. I don't accept that most quality measurements boil down to human judgement. Most measurements can be devised using established criteria, often simply based on mathematics.

Unfairness

It's unfair when a hard working member of staff is working alongside a lazy here-for-the-ride good-for-nothing waste-of-space employee and both are paid by time and both on the same rate of pay. That is surely unfair. While the bad staff stay bad and the good staff turn bad and demoralised, the SEO sits in his ivory tower saying that it is too hard to pay on performance indicators rather than by time alone while. Poor thing. Let's put the SEO on a pay-by-performance system and see if things change! Yes, let's take away his salary and give him a small chunk of the company. Now he is a part-owner, how does he feel about free-riders using up his money?

Progress

Pay-by-time goes back to factory work and sweat shops from the last century and the century before, when the machines kept running and the staff simply had to turn up and sew, or put this gismo into that gismo etc. Yes, there are still sweat shops around the world, but even many of them are more sophisticated these days with staff being paid on quality criteria. In fact, many factories are leading the way in pay-for-performance. I would say that it is in administration and even is some professional work where there is a stubborn lack of progress.

Chef Example

Take, as an example, a chef. I would class this as a professional job. Yet many establishments pay their chefs according to how many hours they have worked. OK, they may not clock on and clock off, but they will be expected to put in a week's work for a week's pay. As an illustrative example only, why not pay on this basis:

Weighting Aspect

60% Profit achieved

20% Michelin Star (or similar)

10% Health and Safety Record

10% Cleanliness and Food Safety Record

OK, the Michelin star element is a little ambitious for most restaurants, but there are equivalents at lower levels! The health and safety record speaks for itself: accidents can be banded into grades of seriousness. Cleanliness can be measured by having an outside independent agency, or the boss, if you like, carrying out random inspections against predetermined criteria. You see, as long as it's measurable, then a fair system of remuneration can be built around it. If the chef works for 90 hours a week to earn a decent living then, so be it (it may be worth his while looking for another job). If, on the other hand, chef has set things up so efficiently that he only needs to pop in for few hours a week to achieve his goals and therefore earn a good living then good luck to him! The business is obviously thriving and the chef deserves his time off. In this situation an ignorant owner might sack his successful chef and pocket the money for himself. Wrong wrong wrong again. If a manager, or any member of staff is paid for doing a good job, rather than merely turning up AND ends up doing just a few hours a week, then that employee is ready for promotion. I would say to the restaurant owner: hurry up and open another restaurant and get your chef running two so he can double his pay and you can get a healthy return.

Rabbits and Hats

Pay by time can be very unfair. Many staff quietly and conscientiously get on with their work and do a good job. They get ahead of the game, smoothing over future problems, removing barriers before they appear. Others are fire-fighters. They don't anticipate looming problems and hit them head-on, sometimes failing to solve them. Other times they dramatically solve such problems themselves and grab the headlines and become the hero. These are the people that get noticed. They put rabbits in hats and then pull them out again. They are the ones that get promotion while those that prevent problems in the first place go unnoticed. Now, with a pay-by-performance system, such fraudulent and unfair practices would be exposed.

Fly Killers

In our business we sell fly killer machines that use ultra-violet lamps to attract and kill flies. The ultra-violet emissions, that are the main attractant, degrade after about a year and the uv bulbs need to be changed. We also sell a gadget called a UV Light Tester. Those that are conscientious - who want to change uv bulbs at the optimum time - have purchased the u.v. Light Tester from us. They will not suffer from inexplicable fly infestation nor will they have their premises closed down by the Environmental Health Inspector. Those that buy this gadget would surely be paid well under a pay-by-performance system!

UV Light Tester is available at http://www.eeeee.co.uk along with a wide range of fly killers

Business Innovation Organizational Structure

Writen by Kal Bishop

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.

There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.

There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.

Organizational Structure

Reality tells us that there are many reasons why an organisation's structure has its shape (logistics, organic growth, history, size, market share, future strategy) and is, like organisational culture, not easily changed or restructured. Often, there are valid reasons not to make structural adjustments at all.

Thus leaders require, not recommendations for complete restructure, but knowledge of fostering properties that can be easily adapted into the existing structure. This fits with research that indicates that people who generate ideas on a regular basis find structure to be unimportant as long as some criteria are met. A few of these include:

a) Direct access to decision makers – provides fast feedback and immediate go or kill decisions.

b) Short lines of communication – if communication gets filtered there is a loss of momentum and corresponding loss of control.

c) Tangible progression – if ideas are not picked up at all, motivation suffers.

In fact, a huge number of other issues ought to be considered.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with a Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com/

You can also receive a regular, free newsletter by entering your email address at this site.

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Kal Bishop MBA, is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com/

How To Conduct A Successful Performance Appraisal

Writen by Jonathan Farrington

Most organisations review the performance of their employees on a regular basis, usually annually. The term appraisal however, is disliked by many, conjuring up images of a superior passing judgement in a god like fashion. The answer must be to establish good relationships between both.

Every manager has to appraise subordinates and the mechanics of it vary from ticking little boxes, through marking on five-point scales, to writing an open ended report. These notes however, are mainly concerned with relationships.

The primary purpose of an appraisal is to help the subordinate.

Reasons for an Appraisal:

- To provide feedback of individual performance.

- To plan for future promotions and successions.

- To assess training and development needs.

- To provide information for salary planning and special awards.

- To contribute to corporate career planning.

The three main principles for appraisal and counselling interviews:

1. Everything written should be shown and shared

- Secrecy breeds suspicion

- Suspicion destroys a counselling relationship

Two specific aspects often withheld are those relating to: -

a) Poor performance

b) Potential promotion.

In the first the secrecy reflects the manager's own anxiety, telling someone they are doing badly is not easy.

The second, promotion, is difficult as telling the subordinate of potential promotion is very likely to be interpreted as definite, with keen disappointment if it does not happen.

If there is something a manager feels they cannot communicate to a subordinate then that is probably a good enough reason to exclude it from the appraisal report.

2. The Appraisal report should be finalised in the presence of the subordinate

- All fair and above board.

3. The subordinate should contribute a major part to the appraisal

- Self-appraisal is particularly effective in two areas.

Attitudes In Relation To Performance:

First, the area of weak performance, most individuals will be surprisingly open and honest about themselves if the appraisal or counselling is a supportive relationship.

Analyse rather than criticise.

Secondly, the area of career progression; managers tend to see a subordinate's future in terms of the other people in the department and how, particularly, the manager's own progression developed.

Giving the subordinate the chance to talk may reveal totally different aspirations.

Emotion:

There is always an element of emotion in appraisal interviewing. Both manager and subordinate each have positive and negative feelings and appreciating what they are can help understanding.

The Manager:

Positive feelings: -

- Wants to be helpful and understanding, but may be inclined to offer advice too closely related to their own experience. Needs to remember the subordinate is an individual in their own right.

- Wants to be kind and tolerant and liked by their staff. However, they must be prepared to point out the realities of any situation.

Negative feelings: -

- May be fearful of the interview itself and whether they may make a mess of it. These fears diminish with practice.

- Fear of the interview becoming emotional and perhaps creating hostility in the subordinate. This is overcome by developing relationships where expression of feelings is normal.

- May have feelings of envy i.e. the subordinate's youth, health, qualifications or career opportunities. It is essential to control them.

The Subordinate:

Positive Feelings: -

- Wants to be liked by the boss. However they must not allow this to make them dependent and subservient.

- Wants to be helped to improve.

Negative Feelings: -

The most likely one is fear of criticism of their work or their behaviour. Until the manager allays this fear, the interview will be meaningless and achieve nothing. Only the manager can allay this fear by establishing a counselling relationship, which shows they are fair and can be trusted. It is possible that a member of staff will perform at an acceptable level without motivation, but in many, indeed most cases their results will not reflect their true potential.

A good manager is always conscious of the need to motivate whenever an opportunity occurs. The assessment interview, properly planned, can be the most potent force for improvement.

Attitudes must be understood before motivation can take place:

We all have attitudes, towards work, politics, religion, fluoridation of water and so on. Those, which are the concern of management, are those, which are related to the job.

- Are they positive, neutral or negative?

- In what areas must we know what they think?

- How can we find out what they think?

- How can we influence their thinking?

If the manager knows their own attitudes and those of their staff, then they are better equipped to manage them.

People think in settled, standard ways, dictated by their attitudes, which form, as it were, the filter into their receptiveness. This can even determine what actually does come to their notice.

Some attitudes and beliefs cannot be changed, they are so deeply held, whilst others can fairly easily be changed provided open-mindedness is a strong attitude.

A person's standards will be directly related to their attitudes. If the standard is unacceptable to the manager then it must be changed.

In a group of sales people who have undergone the same selection process to meet the same job description, there will be a considerable overlap of attitudes, but it must not be assumed that each set is identical. People will have their own unique set of attitudes.

We must not fall into the trap of judging others by our own attitudes. e.g.

- What would I do if I were them?

- What would they do if they were me?

Basic attitudes in members of staff which need to be understood by the Manager are:

-To the job.

-To our products.

-To their colleagues.

-To the Company.

-To their manager.

-To their customers.

-To training.

The manager must know what each individual's attitudes are before they can do anything about them, if indeed, anything needs to be done.

- What do they say?
- How do they say it?
- What do they write-?
- How do they express themselves?
- What do they do?
- How do they set about it?

The manager must be constantly on the alert, looking for inconsistencies which will help improve their understanding or provide new information. Chance remarks when off guard often give away the genuine attitude.

Questioning in the formal situation related to attitudes, may be unsuccessful, as the person will be on their guard and will tend to "feed" what they think the manager wants to know.

Where emotions are stimulated attitudes are more clearly displayed.

There is always an inter-relationship in a person's attitudes.

The manager's task is to strengthen desirable attitudes and minimise or eliminate the undesirable ones.

It must be remembered that people can succeed, despite some undesirable attitudes, because other stronger attitudes are dominant. After all it is results that count!

In Summary, The Steps In Successful Performance Appraisal:

1. Review the case history in advance.

2. Listen to the evidence.

3. Discuss diagnosis.

- Don't concentrate on character traits.

- Discuss things that can be improved.

4. Face up to problem areas.

5. Agree a plan of action.

6. Write up a report of the interview.

7. Progress that report.

8. Never discuss a salary review at the appraisal interview.

Jonathan Farrington is the Managing Partner of The jfa Group jf-assocs.

Since forming jfa in 1995 he has authored in excess of three hundred skills development programmes, including the Strategic Workshops series, Channel Programme, P4 Programme and the Vanguard suite In addition he has designed a range of unique and innovative process tools – Optimus+ and ASP Profile and written extensively on organisational and sales team development. To find out more about the author or to subscribe to his newsletter, visit:jonathanfarrington.com Or follow the link to source a jfa solution

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Conflict At Work The Root Causes Of Workplace Conflict Are Often Systemic

Writen by Tammy Lenski, Ed.D

When I'm asked to enter an organization and help people talk things out, I'm often asked to fix things like this:

Those two just can't get along. Would you see if you can help them get past their differences with one another. They don't seem to be very good communicators.

One of our senior teams is in a real rut since a new VP came on board nine months ago. I don't think they like him and they're acting out. We could really use some clearing the air.

We're trying to move the organization forward and we've got a few people who aren't good with change. Can you help move them forward?

I'm asked, essentially, to fix people. And it's rarely the flawed human that's the real problem. Conflict research reveals that the roots of unhealthy workplace conflict and increased organizational costs come most often from these systemic causes:

Lack of information. Even with email, newsletters, reports, and staff and company meetings, conflict arises from lack of information or knowledge in how to use it effectively. It no longer surprises me how frequently in workplace mediations I hear the phrase, "Why didn't anybody give me that information before now?"

Skill deficits. Most of us were didn't learn the "Fourth R" in school. We learned reading, writing and 'rithmetic, but were not formally educated in relationship. Building relational skills, such as those associated with effective negotiation, interpersonal communication, and collaborative problem solving increases employees' ability to navigate conflict before it becomes destructive.

Ineffective organizational systems. System problems can, and often do, masquerade as interpersonal conflicts. As I work with parties to peel back the layers of a conflict, it's not uncommon to uncover ways the organization's systems are pressing upon one or more of the individuals involved and directly influencing their behavior. These system problems may be invisible until the overt conflict begins. Ineffective conflict management systems. The informal system of organizational culture (as in the ways employees and leaders show through word and action that "this is how we deal with conflict here") and formal intervention systems can have a profound influence on whether or not conflict unfolds in a healthy or destructive way. Poor conflict engagement skills in an organization's leaders often means poorly managed conflict throughout the system.

Misuse of ADR. While the increasing commitment to Alternative Dispute Resolution (ADR) in organizations is a positive step, it's often use too late in a conflict, confuses mediation and arbitration, or imposes a process unhelpfully on an unwitting or ill-informed employee. Effective conflict resolution systems, even in very small organizations, create opportunities for conflict to be identified and addressed early and constructively. Effective processes should emphasize talking things out effectively early in the dispute, the use of mediation before grievances or litigation harden positions further, conflict resolution coaching for and by educated managers, and training that supports real behavior change.

Copyright © 2004 and 2006 by Tammy Lenski. All rights reserved.

Visit www.lenski.com for more tips and resources on talking things out in the work and home relationships that matter most. Get your free copy of Talking It Out in Ten, a worksheet and guide to help you think and prepare for your difficult conversation, by visiting www.lenski.com and clicking on Free Guide. You'll also receive Tammy's monthly newsletter and be entered automatically into a bi-monthly drawing for coaching and consulting time with Tammy. Dr. Tammy Lenski is the author of I Can't Say That!, a popular blog read by women all over the world. A professional mediator, conflict management coach and educator, Tammy works personally with women who want to keep their balance in conflict and step up to the conversations that really matter.

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The Death Spiral

Writen by Rick Johnson

Sometimes things just happen. Maybe we lose focus and take our eyes off the ball. Maybe we don't recognize the signs. Sometimes it happens quickly due to a loss of a major customer or loss of a major product line. Sometimes it is a slow, gradual process. Market share seems to evaporate; gross margin exhibits an extended period of decline. Morale suffers, employee turnover increases, net profit declines, costs seem to get out of control and losses become imminent. Some Owners, Presidents and CEO's who find themselves in a situation facing these warning signs may actually contribute to the creation of "The Death Spiral" if they aren't careful.

What is "The Death Spiral" and how do you know if your company is in one?

"The Death Spiral" is a fatal illness if not corrected immediately. This illness can be brought on by many factors including the process of building an infrastructure ("Ivory Tower") prematurely based predominantly on the self-gratifying needs of our ego. It can also be created by the circumstances mentioned in the opening of this article. Whatever the reason, the warning signs generally appear and, if ignored long enough, red ink from losses on the P & L statement will become the megaphone that finally gets your attention.

If it becomes an infrastructure problem that doesn't have a revenue stream of sufficient magnitude to support the fixed costs it generates, then the infrastructure must be torn down and rebuilt.

Unfortunately, however, late recognition of the problem can cause the CEO or Owner to resort to a mental mode of retrenchment that should be called "Panic Response Management."

Panic Response Management is, in effect, crisis restructuring. There's nothing wrong with crisis restructuring by itself. However, in an ego-driven situation, this restructuring is more apt to occur from the bottom-up versus the top-down. In other words, revenue producing functions or people may be prematurely cut. These people or positions may be, at a minimum, covering their variable expense and contributing to some degree toward fixed expenses. This creates a redistribution of fixed cost which may now jeopardize the profitability of some other segment or division. This can create pressure to close other divisions and business segments or cut deeper into revenue producing functions that are contributing at least a portion to fixed costs, thus creating "The Death Spiral."

To most of you, this may sound ridiculous or even laughable, but it does really happen. The right approach is to view restructuring from the top-down, including taking a serious look at corporate and/or family overhead. You begin this diagnosis by asking questions like the following.

• How do you define your business strategy?

• How do you communicate your strategy to the employees?

• How would you define your company's competitive advantages?

• What are your strategic initiatives?

• What changes have had a significant impact on your business?

• What keeps you from being the most efficient and effective source for customers?

• What competitive advantages do your competitors have?

• What is the competency level of your executive staff?

• How do you rate yourself with respect to the success of the Corporation?

• What volume does the top 10% of your customers represent?

• How many of your customers represent 80% of your revenue?

• Do you measure account retention and growth?

• What is the turnover rate of your sales force?

• What is your overall corporate turnover in personnel?

• What percentage of your customers consider you to be their number one supplier?

• Have your average sales per invoice increased or decreased over the past three years?

• What single thing has had the greatest impact on your company's profitability?

• What single thing has contributed the most to your decline in profits?

• How does your company compare to the industry par report?

• What metrics or industry surveys are available to you from your trade association?

• Do you have a strategic plan?

• Do you have business segment or divisional business plans?

• Do you have or promote a culture of cost containment?

• Do you provide functional leadership or do you dictate as a management style?

• Is there accountability within your executive staff and your upper management? • Is there accountability within your sales force?

• Which departments and individuals are competitive strengths to the organization and which are competitive weaknesses?

• What initiatives do you have to improve highest delivered value?

Get each member of your executive staff to go through this exercise for each department. When all the soul searching has been done, meet with your executive team to review the entire process and formulate "The Real Deal." What is the situation you are really facing? If you are an outsider working for the owner or CEO it is quite easy to be objective. If you are the owner or the CEO it is often difficult to admit the facts.

If that's the case, it is highly recommended that you hire an outside pair of eyes to help you through this assessment process.

During the final assessment review you should be able to understand the scope and severity of the situation you find yourself in.

Develop a complete and accurate picture.

What is really wrong? What is unique about your problems, if anything?

Attempts to resolve problems and get back to profitability often fail because we don't understand the problems in general. We don't get details specific enough to formulate solid resolutions, achieving a complete and accurate picture of the situation.

– "The Real Deal" –

This is absolutely essential so that everyone can see and understand collectively. This allows collaboration aimed at restructuring and regaining profitability.

Understand the purpose to be served.

The executive team must answer the question, "what are we trying to accomplish?" You need to be data and goal specific. Becoming profitable is an unacceptable response. You must identify all contributing factors to your lack of success. Then you must determine exactly what you should be doing and what your objectives are. You must develop a common understanding of and a universal commitment to the objectives not only by your executive staff but also by every employee within your organization. Failure to be data and goal specific often leads to disruption.

You can find a cure for "The Death Spiral." You can stop the spin. But, like convincing yourself to go to a doctor to get a professional diagnosis, you must start with a self-imposed reality check.

Step back; shut your eyes to the forest surrounding you and the swamp filled with alligators. Let your brain sort through the images created by your internal assessment. Deep down, the answers are there. You should now be able to clearly define and recognize the problem.

If the problem happens to lie within the executive staff and you own the company, don't languish in self-pity. Don't immerse yourself in the delusion that you're going to wake up tomorrow, look in the mirror, and see the "Jack Welch" of your industry staring back at you. Be smart enough to swallow your pride and ask for help. It's only a phone call away.

Dr. Eric "Rick" Johnson (rick@ceostrategist.com) is the founder of CEO Strategist LLC. an experienced based firm specializing in Distribution. CEO Strategist LLC. works in an advisory capacity with distributor executives in board representation, executive coaching, team coaching and education and training to make the changes necessary to create or maintain competitive advantage. You can contact them by calling 352-750-0868, or visit http://www.ceostrategist.com for more information.

Rick received an MBA from Keller Graduate School in Chicago, Illinois and a Bachelor's degree in Operations Management from Capital University, Columbus Ohio. Rick recently completed his dissertation on Strategic Leadership and received his Ph.D. He's also a published book author with four titles to his credit: "The Toolkit for Improved Business Performance in Wholesale Distribution," the NWFA & NAFCD "Roadmap", Lone Wolf-Lead Wolf—The Evolution of Sales" and a fiction novel about teenagers called "Shattered Innocence."

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Time And Attendance System

Writen by Jimmy Sturo

Time and attendance systems are designed to assist organizations to effectively manage the working hours of employees. They are a paperless system used to collect the work time of employees electronically. The systems automate and simplify timekeeping and human resource management. Time and attendance systems effectively interact with any payroll system. The system allows employees to electronically submit leave letters. They are capable of operating on various platforms for different business rules. They are used in areas such as healthcare, financial services, transportation or distribution, retail management, government, manufacturing, and hospitality.

Early on, time and attendance systems were only associated with the manufacturing or 'blue collar' workforce. But today, due to the impact of legislation and the influence of technology, they are used for a variety of business functions including access control, job pricing, project tracking, and employee schedules. Most systems are Web-enabled and are integrated with current Internet technology. The cost of installing a time and attendance system depends on the number of staff involved and the equipment and type of software used.

Time and attendance systems often have a Web version of the employee module, which allows workers to enter their time using a Web browser. Its flexible design runs on both PCs under Windows and UNIX workstations. Most systems are compatible with over 20 databases including Ingres, Sybase, and Oracle, and run on all major network environments, thus, providing instant access to all time and attendance functions. Time and attendance systems help companies to reduce and control costs by permitting employees to access non-critical information in a simple, secure, and safe manner.

Benefits of time and attendance systems including a reduction in error rates, and reducing unnecessary data entry. They are used for varied work schedules, hour codes, and cost structures. The systems reduce potential mistakes automatically by transferring information between company systems.

Time And Attendance provides detailed information on Time And Attendance, Time Attendance Equipment, Time And Attendance System, Time And Attendance Tracking and more. Time And Attendance is affiliated with Time Tracking Programs.

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