Don’t Get Bit in the Financial Butt!

Perfection is a myth, yet, many companies engage in seeking the “perfect solution” to stay competitive and improve the bottom line. A few are doing a great job by focusing on “viable solutions.” Most, however, are realizing mixed results due to reliance upon the same old practices that have long surpassed their peak. Less savvy companies are simply hanging on to their soon-to-be outdated products and services. They are afraid to make changes, despite their customers’ requests, and dismal sales.

Why have many business owners stopped listening during this critical time? They fear the change process. They don’t understand how to create a blue print for success. They falsely believe that since riding it out it worked in the past, it will work now. Sticking your head in the sand (think, ostrich) will only get your financial butt bit – hard!

Navigate change now. Waiting won’t change anything! Management needs to seek the right guidance and alter their paradigm to include change. It doesn’t need to a big, evil, costly endeavor. It’s time to hear employee and customer ideas with an open attitude. A simple twist of the wheel may gain the competitive advantage. Proper alignment, direction, and training to manage ever-changing economic factors will keep your doors open for business!

Talk Straight. Give the members of your staff the opportunity to contribute, appropriately. Brainstorming isn’t about judging ideas as right or wrong, or good or bad.  It’s simply a process to gather ideas. Often, off-the-wall ideas are winners once they are narrowed down and fine-tuned. Determine the ROI and viability of the final cuts, and during implementation and execution, train everyone to ensure consistency and positive results. Focused action is the key.

Big Picture vs. Small Details. Some people tend to get caught up in the “bright shiny object” of the bigger picture; others get lost and don’t understand how to move from “here” to the vision of “there.” Create a strategy to put everyone on the same page. Break tasks down into “bite-sized pieces.” Keep listening to and communicating with your team. When you hit the inevitable walls that crop up due to poor planning or implementation, do not reduce your expectations of intended results! Readjust your strategy as necessary, but remember: the success or failure of any idea is in the details.

Hire a Business Mentor. If management is too narrowly focused on people considerations OR on bottom line financials, it could stymie the forward movement required to achieve the expected results. A business mentor helps you blast through the stumbling blocks that change causes. A business mentor helps you make the hard decisions that may be unpopular, at least initially. S/he can also help you create business savvy solutions that balance people and numbers. Someone from outside your organization can see landmines coming up more clearly than you can, since you are so close to the situation. S/he helps you recognize and navigate around them, and enables you to move forward with speed and confidence.

(c)Jeannette L. Seibly, 2010

Costly Promotions

Companies are very focused on being cost conscious, especially in the current economic climate. Many bosses have promoted their key employees too quickly, beyond their skill level — to their level of incompetence. Bosses falsely believe they are saving time and money, but this type of reactive decision-making ends up being costly and has a detrimental impact on the company. Sadly, the once successful employee feels forced to leave the company when her/his continued contribution is short-circuited, and will rarely go quietly.

Since the person was previously treated as an asset to the company, it is often unclear as to why this sudden experience of failure is happening. Instead of having a professional conversation with her/his boss to provide solutions to this dilemma, s/he blames extraneous factors and looks for a new job, outside the company. The real issues? The newly promoted person may not have taken the time, or taken advantage of the opportunities, to develop the interpersonal skills required for the new position. Perhaps s/he has not learned how to delegate or is unable to prioritize and manage multiple issues well. S/he may simply lack the interest and ability to quickly learn the skills required for performance success (e.g., technology, financial, mechanical, sales, etc.) in this new position.

Time to get real. Newly promoted people may be unable to acclimate appropriately when business needs change rapidly. Where did the old adage, “sink or swim” come from? It didn’t work then and doesn’t work now. Unfortunately, employees feel they can not say “no” to their bosses’ requests without hurting their career. If they may agree, their naiveté can create additional issues and stresses since they do not possess the required depth and breadth of experience. It’s time to create a win-win development plan that helps the employee succeed and meets the needs of the business.  Be realistic – it takes time. Employees won’t suddenly become great managers if they have poor people skills. Employees with no interest in financial monitoring will not handle their budgets well. Top sales people will not make the best bosses. Remember, accepting mediocrity loses customers internally and externally.

Provide an outside coach. An outside coach can provide insights that the corporate mindset and culture may overlook. The employee will feel more comfortable sharing her/his challenges and fears, confidentially. They know many bosses have long memories, and don’t want the risk. Ensure there is clarity of goals to be accomplished every three months. Write them down. Put together action plans for implementation. Monitor effectiveness. Keep it simple and smart!

Keep valued employees. Although egos play an important role in a person’s ability to stay and thrive after a failure, it requires the boss’s dedicated intention to keep a valued employee! Find a position within the company where s/he can be successful. Don’t be afraid to create a new position to keep the person, but use a scientifically validated assessment tool to ensure you’re not simply creating another new issue. The cost of hiring a replacement is much greater than realigning a job description to match up employee skills with business needs. Provide focused training and development so the employee can gain the skills s/he lacked that caused the demotion in the first place. This allows the employee to experience success once again, and provides her/him with the opportunity to be promoted in the future.

©Jeannette L. Seibly, 2010

More Money Does Not Equal Better Results

Too often employers are held hostage when employees demand more money to do the job they were hired to do. Since most employees are paid by the hour and not by the task, it’s difficult to know when to reward someone with additional compensation, particularly when you don’t have stated and objective performance results for each position. Unfortunately, even though everyone says “money is not a motivator,” many employees have the false perception that money will indeed motivate them!

It starts with clarity in your hiring process. Since most hiring processes are fraught with improper and antiquated methods of selecting people, it’s important that you are clear on expectations for the job. Then, hire the right person based upon needs for the job, not his or her ability to sell themselves! Remember, the wrong person in the right job will rationalize poor compensation as the reason for poor performance.

Set up clear expectations on Day One. Onboarding new employees requires the boss to provide a written outline and timetable for producing the required results, along with an accurate job description. To create a win/win for a new employee, the boss needs to stay involved, working through the new employee’s honeymoon period, and beyond. Do not make mention of additional compensation opportunities until after a six-month period. Communicate a clear expectation – in writing – of the results required for the new employee to receive any added monetary perks.

Compensate based upon results. Too often, employers compensate based upon promised results. If employees who don’t deliver these results receive the money anyway, they get a pretty clear message that achieving performance goals is not truly important. It is wise to devise a plan that is performance based. Make sure the goals are objective and attainable.

 ©Jeannette Seibly, 2010

Don’t Fear The Rattlers

There is a saying, “Don’t pet the rattlesnakes.” When bosses make decisions, these are not always perceived as welcomed solutions. Some employees are very attached to the current state of the business, and are not privy to financial impact or other business issues behind some decisions. Any change can cause employees to get nervous. When you look at financial results and other objective data with the human perspective factored in, the end result may be some of your employees are upset by the required change.

Your response. When you encounter a rattlesnake, you simply back up and review your options. The same response works here. Some times it’s as simple as waiting out the rattling – by communicating the changes in a factual manner.  Other times, you may need to change your implementation approach to ensure employee buy-in.

Consistent communication is the key. When you make changes, communicate in a straightforward manner. Keep it simple and smart (K.I.S.S.). Don’t get into mind-numbing details. Pick three key points and share them appropriately and simply.

Right decisions may not be applauded. Change of any kind can create uneasiness amongst employees, regardless of economic and/or political environments. When you make the right decisions for the right reasons, simply stay the course. K.I.S.S. (see point above). Eventually, most employees will concur it was the right course of action after they experience the sure-to-come positive results.

Poor decisions may not cause rattling.  Poor decisions coupled with no reaction from employees or customers may allow you to falsely believe you’re on the right path. The truth is you may have a history of making incorrect decisions, if you base them upon little or no factual information, or unable to interpret the data in a manner that creates truly new solutions. Employees and/or customers may simply seek other employers or vendors/suppliers silently.

Solution? Talk with your business mentor(s) to ensure the design and execution of your decisions meets your business needs, now and in the future. It’s critical to incorporate the human side into your process to support the success for all of your (internal and external) customers. Encourage your employees to provide solutions in a positive way, and not in a critical “all or nothing manner.”

©Jeannette Seibly, 2010

Generating Ideas for Profit

Many entrepreneurs and business professionals love to think up new and innovative ideas all the time. It’s fun. It keeps the ego alive and happy.  Unfortunately, an inability to take these ideas from start to profitability often impedes progress. When the ego gets in the way, the focus of moving an idea from the conceptual into the practical drops.  Some simply don’t have the business experience and fail to create a practical plan. Others are easily distracted by the “bright shiny object” and neglect to finish executing the steps necessary to finish the project.

Delve into your ideas.  Complete a strategic plan along with a reasonable return on investment (ROI). If an idea seems to have a positive ROI, make a detailed tactical plan. Again, review your ROI to ensure you haven’t inadvertently made it unprofitable. Recognize that some ideas simply cannot be made into a profitable venture.

Keep Additional Ideas.  Write these ideas down anyway and file them for later review.  It might be worth revisiting them in the future, from a fresh perspective. You can focus most effectively on launching only one profitable project at a time. 

Beware the lure of bright shiny objects. Too often the shininess of new ideas rivets our attention and we quickly lose interest in any current project. If we haven’t developed the brain power to work through ideas carefully, the cloudiness of implementation overwhelms us before we even get started.

Create Focused Action Plans. It’s crucial that you work with a Business Coach to provide clarity and ease in developing a plan for success, and to ensure financial profitability. Remember, the success or failure of any project is in the details. Hence, the need for a detailed and Focused Action Plan. 

When you hit the proverbial wall, it is time to make a critical assessment before implementing any changes.  What is working? What is not working? Knowing the specifics will prevent making arbitrary or unnecessary changes (aka sidetracked by new ideas) that sabotage success and drain time, money and energy.

©Jeannette Seibly, 2010