We have a cultural flaw of wanting to blame someone when things go wrong. “Heads must roll,” when major errors are discovered, but I ask Why. We all make mistakes. When a manager attempts to shame or blame someone for a mishap, does it increase morale or profits? When the culprit is exposed, are you any closer to correcting the error? No. You have only made things worse. Your blood pressure increases and your abilities to creatively solve the problem are diminished. You actually train your employees to cover things up, rather then expose themselves to your wrath or demoralization. You become unsafe for honest communication with your employees.

I suggest converting the problem into a productive learning situation to prevent this error from being repeated by other members of the team. I liked bringing these issues up at our weekly Safety Meetings. I did not want to embarrass anyone. I wanted all of the team to be come better at what we do.

When I worked as a project manager, I told my supervisors that I did not want to know who committed an error unless it was habitual. I wanted to solve the problem with the least negative impact to the project. After awhile, I was told about problems and discovered the correction was already underway. My supervisors were learning to become pro-active with less of my involvement. I let them know that I needed to know about any problems, just incase something came up during a meeting with our customer. Being able to respond positively to our customers, continued to build confidence that they had hired the right company for the job.

True leaders don’t blame, they direct and inspire others to solve the problem and get back on course.

A Second Look Business Consulting LLC – Management & Operations Professionals

Last fall a number of studies were conducted indicating that many employees wanted to leave their jobs. Employees stayed because they were afraid of unemployment and the time it would take to find another job. So they put up with managers turning up the pressure and demanding more. But the tables are starting to turn. Both USA Today and the Harvard Business Review have recently published articles citing the new trend.

“There is going to be a mass exodus of the top performers as the economy starts to turn around,” says Razor Suleman, a consultant who helps companies retain their best workers.

About 25% of companies’ top performers said they plan to leave their current job within a year, according to a survey published in the May edition of the Harvard Business Review. By contrast, in 2006, just 10% planned to leave their jobs within a year. The survey questioned 20,000 workers who were identified by their employers as “high potential.” USA Today

Many workers are tired of all the pressure, stress and lack of appreciation at work. Mark Weidman said, “The grass may not be greener somewhere else, but hopefully there is less B/S.” Labor & Industries indicates that workman’s compensation insurance premiums have been increasing because of additional claims.

How will you prevent key employees from leaving your company? Most companies can’t afford pay increases. That is probably the wrong strategy anyhow. During stressful times, the increase has a higher potential to disappoint then motivate. Money simply isn’t enough. Employees want to be appreciated and feel that they belong.

If you receive a ticket and are planning that the police officer will not show up to court, think again. Some cities are paying officers overtime to attend traffic court battles.

Traffic fines are stiff with many resulting in hundreds of dollars go to the municipality. And then there is the increase in insurance premiums. All in all it can be quite costly to drive an additional 5 or 10 miles per hour. In most cases your increased speed only means a few minuets in arrival time. So slow down and save the money and frustration.

Ken Bear Cole

A Second Look Business Consulting LLC

Preventative:

• Get advice before you make decisions. This is especially important for those who have never successfully started a business. Having run a failed business is not a qualification for success.
• Plan your route before you start the journey. The more you understand your customer and why they purchase, the better your chances of success.
• Write out a business plan for the first two years of operation. Describe in detail what will be required and define success. Expenses, Capital Requirements, Location, Equipment Requirements, Advertising, Marketing Plan, Key Personnel, Anticipated Monthly Cash Flow.
• List your team. Record Keeping, Legal Advice, State & Federal Compliance, Suppliers and Bank.

You Have Lost Your Way:

• Your business is going nowhere.
• No clearly defined customer.
• Working hard with little positive cash flow.

Response to Problems:

Symptoms:

• Business not generating enough profit to pay the owners.
• Orders not delivered on time.
• Employee morale down.
• Theft or vandalism at work.
• Customers not re-ordering.

The above are symptoms of a greater problem within your organization.

New Rules:

• Considering diversification of services or products. This will require a new business plan for your new venture.
• Market is shifting. If your market is shifting, you need to redefine your customer and market size. There are usually great opportunities in shifting markets.
• Technology Advances. Where is the market for outdated equipment? It does exist!

For more information, call for a free consultation.

503-702-0930

Cost does not determine which of the two are Linchpins. Well-paid employees become cogs if they fail to meet objectives and goals or are easily replaced. A minimum wage worker could be a Linchpin when their dependable actions influence and support the success of a project.

While working as a project manager, I had a large project, which included the replacement of parts in a variety of light fixtures. The light fixtures operated on either 120 volts or 277 volts. The ballasts were also specific to the six different types of fixtures in the project. My seasoned electricians cost $47.23 per hour. They were to do most of the work. My material handler cost $12.03 per hour. His job was to deliver new parts to the electricians and remove the old parts for disposal. Which workers do you think were linchpins? If you chose the material handler you are correct. If this one person did not do his job properly, it would delay production, possibly damage the fixture, and or create a fire in the building.

This project also came with additional incentives to complete it on or before the given time frame. My contract indicated that I would be penalized $5,000 per day for time over runs; but I could also receive $300 per day for finishing early. I am glad to say that we collected an additional $4,500 on the project and my material handler was the only person to receive a $100 gift certificate to a fine local restaurant. He was the linchpin!

• Who are the linchpins in your organization?
• What have you done to show your appreciation?

Ken Bear Cole

A Second Look Business Consulting LLC

With over 10,000 people out of work, the scammers are refining their tactics. Some companies are becoming quite crafty utilizing magazines, which only promotes their company or product. It looks like a magazine you would find at Borders or your local 7-11. But this is actually a propaganda piece. Most of the articles are about one company or group of products. There is little other advertising. That should raise a red flag. Magazines make their money by selling advertising. But you are unaware that this piece is a marketing tool. It does not need additional ad space because the featured company paid to have it printed. I call that deceptive and dishonest. If you find such a piece, disregard the information inside.

If a free website is provided, make sure it is fully Search Engine Optimized (SEO). To check, type in your company name into a Google Search. If you do not come up, it is not SEO compatible, which means it will be difficult for your customers to find you in the Internet. This site is designed to promote the main company, not your company.

Our politicians have coined the term “spin”, which is just a new way of presenting deceit. They are not interested in the truth, they are interested is looking good. Both politicians and marketers, who utilize these forms of deception, should be exposed and shunned. Watch your back if you choose to do business with these scoundrels. They have already proven to be deceptive. So, don’t be surprised when things don’t quite workout as they were explained to you.

Ken Bear Cole

A Second Look Business Consulting LLC

Undercover Boss reveals what is happening within the rank and file of the company, as the CEO of the company works undercover. They are introduced as a new employee and discover the good, bad and the ugly of how management is viewed by the employees and customers.

I applaud these CEOs for courageously investigating their own companies. I realize that it is not practical for all executives to do this, but the information, which is revealed can be transforming for the company. Some companies are using third party polling to achieve similar results. The honest input from the employees is vital to correcting the course of your company.

Your employees will not be honest if they believe there is any chance their identity will be discovered. They are simply afraid of loosing their jobs and not being able to provide for their families. So they endure job conditions that would cause them to move on if the job market were better. But their silence does not make your company strong and profitable. It actually prepares your company for disaster. Numerous studies were conducted in the last quarter of 2009, which asked current working employees if they were thinking of changing jobs when the economy improves. The results were frightening. They indicated that 50% – 70% of those polled were planning to change jobs, because they felt overworked and under appreciated. These are not your marginal workers. They have already been eliminated. These are some of your best workers. So you need to ask, what would it cost to have Key People leave without notice?

As a manager you have time to avert this potential threat to your company. So think of getting some assistance before you too are without a company to work for.

Ken Bear Cole

A Second Look Business Consulting LLC

To some, this may seem like an absurd statement. You are probably thinking, “of course I want more business. That will mean more profit.” Some sales trainers will boast of helping companies increase 200% – 500%. I once asked one of these trainers if they have kept track of the business that failed because of their increased sales. He had no comment. Let’s take a closer look at what typically happens when company grows too quickly.

Every business has a limited capacity of customers they can effectively handle. If the company exceeds that number, they will start to disappoint their customers. A scorned customer is likely to tell everyone they can reach of their disappointment. They will tell friends, coworkers and even post their complaints in the Internet, for everyone to read. You will soon see your customers leaving, because you oversold your capacity. This is a common problem when your sales manager has more influence then your production and quality control managers. But you don’t need to be a large company to experience this problem. Micro business with only one person can easily become distracted by the excitement of the sale.

Many companies hire new employees to try to fill the demand for their products or services. But if you do that without the proper training, your errors will increase, productivity will fall and morale usually plummets.

By the end of the second year, the company is in deep trouble. The sales department needs to spend many more hours to obtain the required sales, but the limited results can’t continue to support the cost of the operation. If things do not turn around soon, they are headed for bankruptcy court.

When companies decide to service the giants like General Mills, Nike, Intel, Microsoft and many other large companies they are shocked by the heavy demands and slow payment. It is common for these giants to stretch payments from the expected 30 days up to 120 or 180 days. If you do not have the capacity to carry the additional costs of financing the debt, you too could end up out of business. As a vender, you are considered expendable. There are many other companies lined up to replace you, as you beg for payment.

Huge companies also pay much smaller margins then smaller companies. You may need to survive on a 3% profit margin while dealing with the slow payment and 500% increases in operating costs.

Slower steady growth is much more manageable and profitable in the long run. You are able to make corrections quicker and prevent the nightmares mentioned above. You can hire and train employees at a reasonable rate, rather then hiring someone during a time of crisis.

Your banker will also appreciate a more manageable growth plan. At some point a more experienced manager then the twenty something clerk that took your application must approve your business loan. Banks are very concerned about losses these days. Few are willing to take a risk on a company growing at the rate of a fighter jet. They have warehouses full of bad loans, which were made to reckless business people in the past.

By slowing your growth, it will not be your dead dry bones hanging on the wall of some purchasing agent, displayed as a trophy of his conquest. Let them laugh at someone else!

Ken Bear Cole

A Second Look Business Consulting LLC

It will take hard work, wisdom and a little luck to create a business, which can replace you income and more. You may feel forced into this new venture because of loosing your job. Has this current recession offered few opportunities for you, even with your proven middle management experience? Have you reached a perceived age of costing an employer too much in salary and benefits? You know you have a proven track record of managing a team, but can you do it all by yourself?

Some see an opportunity to fulfill a life’s dream of owning your own business. You have made money for someone else and now it’s time to set out on your own. If you are in this group and still have a steady livable income, you have the advantage of being able to plan without the stressful scratching of the wolf at your door. You can do the required research to make sure there is a viable market for your goods and services. Some will enlist the help of family and friends, while other will choose a nonbiased individual or company to assist in the evaluation of your venture. Whatever course you choose, do not do it alone! Each year seasoned hikers are separated from their friends and become lost in deserts and mountainous. Most will only be saved by the actions of an experienced rescue team. Businesspeople are much the same. You will miss opportunities, which can make or break your success if you try to go it alone. So talk to your friends, read trade journals and, or enlist the help of a professional, but do it together.

Ken Bear Cole

A Second Look Business Consulting LLC

That is not a motivated crew! They want to do their work and go home. There is no feeling of ownership or belonging. I am concerned when I do not hear laughter at a company during the course of the day. Laughter indicates a connection among fellow workers. Talking softly typically indicates fear or secrets. Both of these are enemies of teamwork and motivation.

Solving The Problem:

• Evaluate your employees. Mushrooms grow well in darkness, but employees decay. Evaluations can be an extremely powerful motivation tool as long as you indicate what they are doing well, and then choose one or two areas you would like to see improvement. Everyone has areas, which need improvement. Doing this will indicate that you care about your employees and want to see them prosper.

• Give recognition among the group as examples of what you are expecting. Encouragement is Empowering! I once met a high school football coach who had not lost a game in over two years. He told me he only had a few real talents. The rest simply believed they were the best because that is what we told them. “We beat teams that, on paper, we should have lost to, but our guys believed they could win, so they did.”

• Thank your employees for working hard. Praise and appreciation are like vitamins. If you don’t see immediately results, continue with a daily dosage. Soon you will see more energy. I believe most everyone wants to do a good job. If you find someone does not fit with your personality, transfer him or her to a different manager. If they won’t work for a different manager, get rid of them! It only takes a few holes to sink a ship.

Keep up the good work. You can be a great manager!

Ken Bear Cole

A Second Look Business Consulting LLC