Author : Rick Johnson
Catfish are native to North America. As you may know, catfish are bottom feeders with slick, shiny skin and no scales, often known as "Mr. Whiskers." They feed on algae and prefer "dead stinky bait" rather than better, live alternatives. They feed at night and can be predators. Most are sleek and quick, but some have been known to grow over 50 pounds. Catfish known as Bull Heads are even more of a scavenger and feed on decaying organic matter. Bull Heads are not the fighters that Channel Catfish are and become an easier catch.Some manufacturers may think of their distributors in the same vernacular. They may believe distributors are slick, quick, and eager to feed on the almighty dollar. They say distributors "bottom-feed" on rebates, discounts and special promotions, preferring lowered prices (i.e., dead stinky bait) as opposed to the hard work of selling value. Manufacturers believe some distributors have grown large and lazy, demonstrating the "Cadillac and Boat" syndrome. "I have all I need, a Cadillac and my bass boat, so why break my neck trying to capture even more market share?"After spending more than 35 years in the distribution business, I must admit that I have run into a few distributors who fit that description. But they are the exception, not the rule. Most distributors work very hard, and are honest and loyal to their manufacturer. They recognize that they are only as good as the support they receive from their manufacturer. But they also recognize the reciprocal nature of the relationship. In other words, the more support that distributors give manufacturers through investments in market share growth, then the more support they will receive from the manufacturer.Distributors are not bottom feeders in the supply chain channel.
Distributors provide tremendous value. Most manufacturers understand this and will openly admit it, although some do so begrudgingly. Manufacturers who truly operate in a partnership relationship not only acknowledge the distribution value, but they seek to leverage that value at every opportunity. What value does distribution provide? The value can vary by industry and product, but it includes some if not all of the following:• Financing - Extending terms to the end user• Coverage - Maximizing market penetration• Consolidation of orders - Handling many small accounts that would not be cost effective for the manufacturer to handle• Service - Defined in numerous ways from JIT, same day/next day ship, consignment to job site trailers, and twigs based on market demands• Training• Repair services• Demand creation• AdvertisingSome manufacturers don't acknowledge this value openly and live in a "Love-Hate" relationship with their distributors. They can't live with 'em and they can't live without 'em. Of course it's true that a few distributors deserve this negative opinion. There are those who have made fortunes simply because they had products with exceptional brand equity in exclusive or selective territories that required nothing more than answering the phone to get rich. Some of these distributors have failed to reinvest in their business, putting personal needs ahead of business needs. Then when the end of the product life cycle nears and cutting edge distribution is required for new product introduction and support, the commitment, desire and competence on the distributor level is often lacking. These circumstances just fuel the fire of manufacturers' low opinion of distribution. Fortunately we believe these scenarios make up only a small minority, so we need to work to change any negative generalizations.Different PerspectivesWe should recognize that there is a different business mindset between the distributor and the manufacturer. By understanding the two perspectives better, each party can work toward an improved partnership relationship. The manufacturer prefers to have a contract with point-of-sales information. Their contract would state, you will do "this," and if you don't, "these" are the consequences, and by the way, our deal can be cancelled with a thirty-day notice. On the other hand, the distributor prefers a partnership covenant that says if you do "this," we will do "that," and together we will grow market share.Naively, throughout much of my distribution career, I believed that I was a customer of the manufacturer. I bought their product and resold it. I did not comprehend the concept of not being their customer until 1998. I was two months on the job as COO of a $400 million distributor. The first time I met our major supplier, a manufacturer of pumps, it was at a cocktail party. I was talking to their Vice President of sales. I had done my homework and knew our company was on their top ten account list as we had purchased over $45 million dollars of product from them the year before. I made a comment to this Vice President about our company taking pride in being one of their top ten customers. I expected at least a smile, kudos, or just a grateful nod. He looked at me in disbelief and with a rather firm, arrogant voice said, "Rick, you are not a customer-you are a distributor!"At the time I was offended by his attitude but have since come to realize that in the eyes of the manufacturer, distributors are not customers. They are simply a link in the supply chain. Ideally, they are channel partners. Manufacturers have huge capital demands to cover high fixed costs. Their call to continually increase market share is essential, yet distributors sometimes get frustrated with the volume-driven needs of their manufacturers.Increasingly, manufacturers have little choice but to explore all opportunities to capture market share, and distributors can become just one vehicle in the supply chain. Many manufacturers even seek out the opportunity to service some major customers direct. Transactional web sites on the Internet are playing an ever-increasing role in the supply chain. Add in manufacturers' reps, integrators and catalog houses, and you begin to understand the confusion and noise that can exist due to the numerous channels. This can and often does frustrate distributors. They believe in themselves and prefer market exclusivity - a phenomenon that is dying off in most industries.What keeps the Distributor up at night?Distributor rationalization is becoming a hot topic in many manufacturer executive staff meetings across North America. Most manufacturers believe they have too many distributors. Mass retail complicates this situation and dealing with the service demands of the big box retailers is still a major headache for the manufacturer. If a manufacturer sat down today and designed his distribution model from scratch, odds are very high that few would retain their existing channel structure. Distributors know this and often feel threatened by it.However, just as profit covers many sins, performance covers most frustrations. Manufacturers like big purchase orders, increased sales and market share growth. Distributors like exclusivity, rebates, co-op funding, technical support and innovative, creative manufacturing partners. When both partners get what they want, it's a match made in heaven, and matches like this do exist. However, many more require constant nurturing. Both partners have to work at it.Distributors and manufacturers often disagree on what is important to the customer. Distributors believe the manufacturer is out of touch and the manufacturer believes the distributor is not providing adequate coverage and developing market intelligence. Manufacturers believe the intelligence that distribution does gather is highly biased.
Manufacturers recognize that channel rationalization can be a good thing for their long-term relationships with distributors who are willing to be true partners and operate within the bounds of what is good for both. A garden can't flourish without pulling the weeds. The trick is to catch the "catfish" in the rationalization process, rather than the productive distributor partner.Partnership ReinventionDistribution will always play a role in the channel. Manufacturers just can't do what distribution does. But, distributors must recognize that change is upon them. They too must adjust to the evolution taking place in the supply chain. The remaining distributors have the opportunity to reinvent the relationship and create a model that is mutually beneficial to both parties.Manufacturers and distributors should follow these five principles to reinvent that partnership.1. Communicate - Perception becomes reality. If all the cards aren't on the table, people tend to envision circumstances that are much different from reality. This creates a feeling of mistrust. Be open about topics such as coverage. Are you in a growing or mature market? Brand equity-how much really exists? Competitive reality-be honest with each other.2. Customer Satisfaction - This is the number one priority. Unhappy customers, regardless of who is at fault, result in lost market share. Create a joint formal satisfaction review program. The longevity of your partnership depends on market share growth. You can't grow market share if you are losing existing business. This process will also support your strategic sales initiatives. Create a formal review process that is built on trust, respect and mutual goals.3. Strategic Sales Initiatives - Jointly develop a sales strategy by territory that uses basic sales effectiveness principles, including targeting, goal setting, action planning and a performance review process.4. Collectively align your resources to create competitive advantage in your market. Look for the dysfunctional low hanging fruit on both fronts. Eliminating the stupid things both parties do will automatically improve performance.5. Identify and implement a true sales effectiveness process that is relevant to your market, your customers and your sales force and that supports your strategic sales initiatives.No, distributors are really no more like catfish than manufacturers are like barracudas, but that doesn't mean that either side is perfect in managing their relationship with each other. A true partnership is one that both parties work on continuously. Base the partnership on the assumption that you have determined the right partners. Once that occurs, then you must build the partnership on trust, honesty and integrity.Dr. Rick Johnson (rick@ceostrategist.com) is the founder of CEO Strategist LLC. an experienced based firm specializing in leadership. CEO Strategist LLC. works in an advisory capacity with company 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 - "Shattered Innocence." Rick's next book due to be published in November is titled; Lone Wolf – Lead Wolf, The Evolution of Leadership.
Keyword : Manufacturer, distributor, , partnership, supply chain, vendor supporty, channel management, sales
วันเสาร์ที่ 23 กุมภาพันธ์ พ.ศ. 2551
Quit Tolerating Crybabies
Author : Michael Mercer
I bet you have some employees, colleagues, family or friends who are crybabies.Definition: In our SPONTANEOUS OPTIMISM® book, we define a pessimist as someone who loves to do three things:
1. Complain
2. Blame
3. MoanThey are "Loser Magnets" – because they magnetically attract other pessimists and crybabies who love to complain, blame, and moan.In fact, they are "Emotional Vampires" who cherish every opportunity you give them to suck the good feelings right out of your skull.ADULT TANTRUMSIf you think about it, an adult who wallows in complaining, blaming and moaning is, in reality, throwing the adult version of a child's temper tantrum. An upset child will cry and kick and scream. Well, adults cannot do such "childish" actions. So, they do the more pseudo-intelligent thing: They
1. love to list anything that goes wrong (complain)
2. point fingers at how someone else goofed up (blame)
3. wallow in the emotional mud for as long as anyone listens (moan)Recommendation: The next time you see an adult "bent out of shape," pause for a moment. Realize you are witnessing the adult version of a child's tantrum.ARE YOU "PLAYING HOUSE"?Remember: If you ever lapse into considering whether to tolerate an employee's whining, complaining, blaming and moaning, you absolutely must remember these four points:
1. This is not a game.
2. You are not playing house.
3. You are not operating a counseling center.
4. You are running a business – and that requires you to focus on your mission to improve profits and productivity.INTERESTING – BUT USELESS – RESEARCHInteresting research: Salvidore Maddi, Ph.D., professor at U. of California – Irvine, studied 450 executives to find out how they handled various "stresses" on-the-job. About 2/3 handled stress poorly, and 1/3 handled it well. A large percentage of the people who handled work-related stress well had this in common: As children, they experienced extremely "disruptive stresses early in life," typically in their family life.Useless aspect of this research: It is illegal – and unprofessional – to ask job applicants about non-work activities. As such, you should not ask an applicant if s/he experienced "disruptive stresses early in life." You are not even supposed to ask about an applicant's family experiences. That would be a non-work-related question. (Note: Even if you did ask, it is doubtful the applicant would tell you about sticky childhood or family experiences, anyway!)However, of course, you crave to hire people who handle well the roadblocks they encounter on- the-job. These roadblocks include failure, rejection, not making a sale, not achieving a goal, or someone giving the employee a hard time.HOW TO HIRE HARDY, RESILIENT EMPLOYEESSince you cannot ask non-work-related questions in a job interview, what can you do to hire
applicants who – when they encounter work difficulties – readily pick themselves up, figure out how to do better next time, and move on.In fact, in my HOW WINNERS DO IT book and speeches, I emphasize, "The main difference between a winner and a loser is a winner picks himself up exactly one more time than a loser!"Question: So, how can you spot an applicant who will "pick himself up exactly one more time?"Solution: On the BEHAVIOR FORECASTER™ Test, we have two scales that help you predict which applicants handle obstacles well –
Subjective Reactions vs. Objective Reactions
Pessimism vs. OptimismOn the Subjective Reactions vs. Objective Reactions scale, someone who scores low (i.e., Subjective Reactions) tends to be a person who gets upset, "bent out of shape," acts like a crybaby, or throws the adult version of a tantrum when things do not go their way they like. In contrast, someone who scores high on this scale (i.e., Objective Reactions) tends to take difficulties in stride, figure out solutions, and move ahead in a mature, adult-like manner.On the Optimism scale, people who score low (i.e., Pessimistic) love to complain, blame, and moan. In contrast, applicants who score high on this scale (i.e., Optimistic) prove to be confident, self-responsibly, "can-do" people who thrive on figuring out solutions to problems they encounter.In fact, if you hire an applicant who scores high on Objective Reactions and also high on Optimism, you will have hired a mature, adult-like employee who exhibits resiliency and hardiness despite roadblocks.Interestingly, when we conduct "benchmarking studies" to identify the FORECASTER™ Test scores of superstar employees, we quite often find superstars in many jobs in many companies score high on both Objective Reactions and Optimism.HOW CAN YOU IMPROVE YOUR RESILIENCY & HARDINESS?If you feel upset or "bent out of shape" when you encounter roadblocks – or when someone gives you a hard time – here is what you can do to handle it successfully.First, focus on the facts. One BEHAVIOR FORECASTER™ Test scale is Feeling-Focused vs. Fact-Focused. It tells managers whether an applicant likes to focus on feelings, emotions and personal topics (i.e., like a social worker) or focus on facts and nitty-gritty details (i.e., like an accountant or engineer).Problem: Imagine the last time you got upset and threw an "adult tantrum." Most likely, you let yourself flounder in a Feeling-Focused mode.Solution: To handle a crisis or difficulty in a mature, down-to-earth, pragmatic manner, you need to switch your brain into a Fact-Focused mode. After you listing the facts, you need to conjure up solutions. By focusing on facts of the bothersome situation, you can succeed in figuring out how to handle the problem, pick yourself up, and implement your solution.Tip: "Focus on what you want – not on what you do not want"-- Dr. Michael Mercer & Dr. Mary Troiani inSPONTANEOUS OPTIMISM® bookSecond, don't play victim. Remember: People only can step on you if you keep lying under their feet! So, if you allowed someone to play the monster role while you play the victim role, do what an optimistic person does: Take personal responsibility for solving your predicament, rather than just complaining, blaming and moaning about the monster. And – most importantly – stand up for yourself.YOU CAN TRANSFORM CRYBABIES INTO ADULTS ON-THE-JOBI can read your minds! I know some of you "Managing to Succeed™" Newsletter readers are saying, "Well, I handle obstacles objectively and optimistically with a fact-focused attention to analyzing and solving the problem. But, what do I do about people around me who are pessimistic crybabies?"Here is exactly what you need to do. The next time that crybaby strolls into your office and starts complaining, blaming and moaning about something, nicely say to the person: "I realize that bothers you. Now, please tell me what the possible solution is."The pessimistic crybaby most likely will respond by saying, "I don't know!"Then, you look the person in the eye as you nicely but firmly ask, "Well, if you did know the solution, what would it be?"In other words, you are teaching the crybaby to do exactly what optimistic, objective adults do: Focus on solutions – not on problems. Superstars in all walks of life invest the huge majority of their time focusing on solutions – not on problems.In fact, you may be the first human being who ever showed the pessimistic, upset crybaby how to handle roadblocks and difficulties like an objective, optimistic adult.Note: You will not transform them by doing this only once. I discovered I need to do this 10 or more times with a crybaby before the person finally learns – at least in my presence – to focus on solutions – not on complaining, blaming and moaning about problems.In the outcome, you help a crybaby transform into an adult. Plus, you help your company and yourself by transforming one more employee into a more optimistic, "can-do," confident person.© Copyright 2005 Michael Mercer, Ph.D.Michael Mercer, Ph.D., is a consultant, speaker, and founder of The Mercer Group, Inc. in Barrington, Illinois. Dr. Mercer's "Abilities & Behavior Forecaster™" pre-employment tests are used by companies across North America. He has trained over 5,000 managers in how to interview job applicants. Dr. Mercer authored "Hire the Best -- & Avoid the Rest™" and also "Absolutely Fabulous Organizational Change™". You can subscribe for free to his management e-newsletter at http://www.DrMercer.comSubscribe today and you can receive a 14-page Special Report entitled, "Hire Productive, Profitable & Honest Employees".
Keyword : bad mood, pessimistic, unhappy, optimistic, upbeat, happy
I bet you have some employees, colleagues, family or friends who are crybabies.Definition: In our SPONTANEOUS OPTIMISM® book, we define a pessimist as someone who loves to do three things:
1. Complain
2. Blame
3. MoanThey are "Loser Magnets" – because they magnetically attract other pessimists and crybabies who love to complain, blame, and moan.In fact, they are "Emotional Vampires" who cherish every opportunity you give them to suck the good feelings right out of your skull.ADULT TANTRUMSIf you think about it, an adult who wallows in complaining, blaming and moaning is, in reality, throwing the adult version of a child's temper tantrum. An upset child will cry and kick and scream. Well, adults cannot do such "childish" actions. So, they do the more pseudo-intelligent thing: They
1. love to list anything that goes wrong (complain)
2. point fingers at how someone else goofed up (blame)
3. wallow in the emotional mud for as long as anyone listens (moan)Recommendation: The next time you see an adult "bent out of shape," pause for a moment. Realize you are witnessing the adult version of a child's tantrum.ARE YOU "PLAYING HOUSE"?Remember: If you ever lapse into considering whether to tolerate an employee's whining, complaining, blaming and moaning, you absolutely must remember these four points:
1. This is not a game.
2. You are not playing house.
3. You are not operating a counseling center.
4. You are running a business – and that requires you to focus on your mission to improve profits and productivity.INTERESTING – BUT USELESS – RESEARCHInteresting research: Salvidore Maddi, Ph.D., professor at U. of California – Irvine, studied 450 executives to find out how they handled various "stresses" on-the-job. About 2/3 handled stress poorly, and 1/3 handled it well. A large percentage of the people who handled work-related stress well had this in common: As children, they experienced extremely "disruptive stresses early in life," typically in their family life.Useless aspect of this research: It is illegal – and unprofessional – to ask job applicants about non-work activities. As such, you should not ask an applicant if s/he experienced "disruptive stresses early in life." You are not even supposed to ask about an applicant's family experiences. That would be a non-work-related question. (Note: Even if you did ask, it is doubtful the applicant would tell you about sticky childhood or family experiences, anyway!)However, of course, you crave to hire people who handle well the roadblocks they encounter on- the-job. These roadblocks include failure, rejection, not making a sale, not achieving a goal, or someone giving the employee a hard time.HOW TO HIRE HARDY, RESILIENT EMPLOYEESSince you cannot ask non-work-related questions in a job interview, what can you do to hire
applicants who – when they encounter work difficulties – readily pick themselves up, figure out how to do better next time, and move on.In fact, in my HOW WINNERS DO IT book and speeches, I emphasize, "The main difference between a winner and a loser is a winner picks himself up exactly one more time than a loser!"Question: So, how can you spot an applicant who will "pick himself up exactly one more time?"Solution: On the BEHAVIOR FORECASTER™ Test, we have two scales that help you predict which applicants handle obstacles well –
Subjective Reactions vs. Objective Reactions
Pessimism vs. OptimismOn the Subjective Reactions vs. Objective Reactions scale, someone who scores low (i.e., Subjective Reactions) tends to be a person who gets upset, "bent out of shape," acts like a crybaby, or throws the adult version of a tantrum when things do not go their way they like. In contrast, someone who scores high on this scale (i.e., Objective Reactions) tends to take difficulties in stride, figure out solutions, and move ahead in a mature, adult-like manner.On the Optimism scale, people who score low (i.e., Pessimistic) love to complain, blame, and moan. In contrast, applicants who score high on this scale (i.e., Optimistic) prove to be confident, self-responsibly, "can-do" people who thrive on figuring out solutions to problems they encounter.In fact, if you hire an applicant who scores high on Objective Reactions and also high on Optimism, you will have hired a mature, adult-like employee who exhibits resiliency and hardiness despite roadblocks.Interestingly, when we conduct "benchmarking studies" to identify the FORECASTER™ Test scores of superstar employees, we quite often find superstars in many jobs in many companies score high on both Objective Reactions and Optimism.HOW CAN YOU IMPROVE YOUR RESILIENCY & HARDINESS?If you feel upset or "bent out of shape" when you encounter roadblocks – or when someone gives you a hard time – here is what you can do to handle it successfully.First, focus on the facts. One BEHAVIOR FORECASTER™ Test scale is Feeling-Focused vs. Fact-Focused. It tells managers whether an applicant likes to focus on feelings, emotions and personal topics (i.e., like a social worker) or focus on facts and nitty-gritty details (i.e., like an accountant or engineer).Problem: Imagine the last time you got upset and threw an "adult tantrum." Most likely, you let yourself flounder in a Feeling-Focused mode.Solution: To handle a crisis or difficulty in a mature, down-to-earth, pragmatic manner, you need to switch your brain into a Fact-Focused mode. After you listing the facts, you need to conjure up solutions. By focusing on facts of the bothersome situation, you can succeed in figuring out how to handle the problem, pick yourself up, and implement your solution.Tip: "Focus on what you want – not on what you do not want"-- Dr. Michael Mercer & Dr. Mary Troiani inSPONTANEOUS OPTIMISM® bookSecond, don't play victim. Remember: People only can step on you if you keep lying under their feet! So, if you allowed someone to play the monster role while you play the victim role, do what an optimistic person does: Take personal responsibility for solving your predicament, rather than just complaining, blaming and moaning about the monster. And – most importantly – stand up for yourself.YOU CAN TRANSFORM CRYBABIES INTO ADULTS ON-THE-JOBI can read your minds! I know some of you "Managing to Succeed™" Newsletter readers are saying, "Well, I handle obstacles objectively and optimistically with a fact-focused attention to analyzing and solving the problem. But, what do I do about people around me who are pessimistic crybabies?"Here is exactly what you need to do. The next time that crybaby strolls into your office and starts complaining, blaming and moaning about something, nicely say to the person: "I realize that bothers you. Now, please tell me what the possible solution is."The pessimistic crybaby most likely will respond by saying, "I don't know!"Then, you look the person in the eye as you nicely but firmly ask, "Well, if you did know the solution, what would it be?"In other words, you are teaching the crybaby to do exactly what optimistic, objective adults do: Focus on solutions – not on problems. Superstars in all walks of life invest the huge majority of their time focusing on solutions – not on problems.In fact, you may be the first human being who ever showed the pessimistic, upset crybaby how to handle roadblocks and difficulties like an objective, optimistic adult.Note: You will not transform them by doing this only once. I discovered I need to do this 10 or more times with a crybaby before the person finally learns – at least in my presence – to focus on solutions – not on complaining, blaming and moaning about problems.In the outcome, you help a crybaby transform into an adult. Plus, you help your company and yourself by transforming one more employee into a more optimistic, "can-do," confident person.© Copyright 2005 Michael Mercer, Ph.D.Michael Mercer, Ph.D., is a consultant, speaker, and founder of The Mercer Group, Inc. in Barrington, Illinois. Dr. Mercer's "Abilities & Behavior Forecaster™" pre-employment tests are used by companies across North America. He has trained over 5,000 managers in how to interview job applicants. Dr. Mercer authored "Hire the Best -- & Avoid the Rest™" and also "Absolutely Fabulous Organizational Change™". You can subscribe for free to his management e-newsletter at http://www.DrMercer.comSubscribe today and you can receive a 14-page Special Report entitled, "Hire Productive, Profitable & Honest Employees".
Keyword : bad mood, pessimistic, unhappy, optimistic, upbeat, happy
What is the Best Incentive?
Author : Bill Ritchie
Incentive schemes have been much criticised in recent years, and it is quite true that some schemes have been singularly unsuccessful. Their failure, however, has often been the result of inadequate planning, rushed introduction, or not thinking through such a scheme properly. These points should not be used to generally condemn other more successful applications.Whether any particular incentive scheme achieves long term success depends initially on the thoroughness with which the current working situation is reviewed, hence the need to re-look at some key Action Points, and question why you need an incentive scheme.1. Increase in earnings for employees?
2. Increase in output?
3. Improvement in quality?
4. Better mobility of labour?
5. More efficient methods of working?
6. Improvement in safety?
7. Higher housekeeping standards?
8. Reduction in absenteeism?
9. Reduction in labour turnover?
10.Reduction in overtime working?Any of these points or a combination, will determine how you introduce and communicate such a scheme. The following questions will act as an "aide memoire".11. Does the work necessitate skilled, semi-skilled or unskilled labour?12. Can individual skill be fully applied when manipulating machines etc. or is the employee's quantity and quality of output regulated to a large extent by factors outside his/her control?13. Does the level of output remain steady throughout the year or is it subject to seasonal variations?14. Is production organized on a process flow line, batch or jobbing basis?15. Have your current production methods been recently reviewed for maximum efficiency?16. Is any new machinery or plant, to be introduced in the near future, likely to upset the standard upon which an incentive scheme might be based?17. Have you sufficient qualified staff to introduce an incentive scheme, or alternatively, have you one qualified employee who is capable of training other staff in work study techniques?18. Once the scheme is introduced, will you have the necessary number of staff to be able to keep it under constant review, and to introduce modifications where necessary?19. Will the present staff in the wages department be able to cope with bonus calculations etc. without additional help?20. Are other parts of the organization such as Production Control, Maintenance, Distribution etc. geared to cope with the increased flow of materials and output that are likely to result?21. Are your present channels of communication, both formal and informal, capable of coping with the dissemination of detailed information to all employees, on the workings of any proposed incentive plan?22. Have you the necessary facilities, away from the production area, for any operative training or re-training that might be required?23. Have you agreed the principle of using work measurement with the trade unions and employee representatives?24. Will you be undertaking the training of any employee representatives in work study techniques?25. Are the mechanics of your scheme simple enough to enable all employees to fully understand how their pay is calculated?26. What standards will you use to evaluate performance to ensure that a proper balance is maintained between:a. Increased outputb. Maintaining qualityc. Efficient use of equipment or materials?27. How will you relate payment to performance? e.g. in direct proportion to output?28. On what length of time will you base payment? e.g. hour, shift, week?29. Will you gear the scheme to the individual, working group, department or factory?30. Will you apply the scheme in some way to direct as well as indirect personnel? If not, how will the problem of increased or decreased differentials be solved?31. Will official disputes concerning the operation of the incentive plan be handled through the normal negotiating and disputes machinery?32. What will be the principles governing payment for 'waiting time' or unmeasured work?33. Will any scheme you introduce be on a gradual basis or do you intend to apply it to all appropriate sections at the one time?34. How will you calculate holiday pay for pieceworkers?It's notoriously difficult to put together an incentive scheme that motivates all of its targets, and that continues to do so over an extended period. You may be looking to get the most from your staff by increasing motivation, improving morale and encouraging efficiency.Incentive awards are a way of rewarding employees and others with cash, goods or holidays rather than increases in pay. There are Two Basic Types Of Incentive Scheme, Financial and Non-FinancialSchemes can vary from national promotions to a prize raffle held by a small firm.
Rewards of goods or holidays will usually involve the use of a voucher.Awards may be linked to sales performance, good timekeeping, safety or production records, or may involve participation in a lottery or prize draw.There should be increasing consistency in the ways that reward, recognition and incentives are offered to customers, staff and distributors. Participants should always have the power of choice, enabling them to self-target and work towards things that are exciting or important to them.Incentives that are always won by a small group of high performers, breed more resentment than motivation, while the high performers themselves soon become bored with the repetition of holidays, and activities that are open to them.The aim of an incentive scheme is to improve the performance of your business, whether it is your employees, customer's or supply chain.As a result the most successful incentive schemes tend to be those matched to the individual's requirements, but which still appeal to the company as a whole.You will find that with a little extra thought, allied to a willingness to be creative, can make a quantum difference to the effectiveness of an incentive programme.Bill Ritchie helps with developing home based businesses, business ideas, Internet Marketing Tips, plus writes the occasional article, and runs a useful, informative website at http://www.thehomebusinessprofessor.com
Keyword : incentive schemes, incentives, loyalty rewards, loyalty points. incentive awards
Incentive schemes have been much criticised in recent years, and it is quite true that some schemes have been singularly unsuccessful. Their failure, however, has often been the result of inadequate planning, rushed introduction, or not thinking through such a scheme properly. These points should not be used to generally condemn other more successful applications.Whether any particular incentive scheme achieves long term success depends initially on the thoroughness with which the current working situation is reviewed, hence the need to re-look at some key Action Points, and question why you need an incentive scheme.1. Increase in earnings for employees?
2. Increase in output?
3. Improvement in quality?
4. Better mobility of labour?
5. More efficient methods of working?
6. Improvement in safety?
7. Higher housekeeping standards?
8. Reduction in absenteeism?
9. Reduction in labour turnover?
10.Reduction in overtime working?Any of these points or a combination, will determine how you introduce and communicate such a scheme. The following questions will act as an "aide memoire".11. Does the work necessitate skilled, semi-skilled or unskilled labour?12. Can individual skill be fully applied when manipulating machines etc. or is the employee's quantity and quality of output regulated to a large extent by factors outside his/her control?13. Does the level of output remain steady throughout the year or is it subject to seasonal variations?14. Is production organized on a process flow line, batch or jobbing basis?15. Have your current production methods been recently reviewed for maximum efficiency?16. Is any new machinery or plant, to be introduced in the near future, likely to upset the standard upon which an incentive scheme might be based?17. Have you sufficient qualified staff to introduce an incentive scheme, or alternatively, have you one qualified employee who is capable of training other staff in work study techniques?18. Once the scheme is introduced, will you have the necessary number of staff to be able to keep it under constant review, and to introduce modifications where necessary?19. Will the present staff in the wages department be able to cope with bonus calculations etc. without additional help?20. Are other parts of the organization such as Production Control, Maintenance, Distribution etc. geared to cope with the increased flow of materials and output that are likely to result?21. Are your present channels of communication, both formal and informal, capable of coping with the dissemination of detailed information to all employees, on the workings of any proposed incentive plan?22. Have you the necessary facilities, away from the production area, for any operative training or re-training that might be required?23. Have you agreed the principle of using work measurement with the trade unions and employee representatives?24. Will you be undertaking the training of any employee representatives in work study techniques?25. Are the mechanics of your scheme simple enough to enable all employees to fully understand how their pay is calculated?26. What standards will you use to evaluate performance to ensure that a proper balance is maintained between:a. Increased outputb. Maintaining qualityc. Efficient use of equipment or materials?27. How will you relate payment to performance? e.g. in direct proportion to output?28. On what length of time will you base payment? e.g. hour, shift, week?29. Will you gear the scheme to the individual, working group, department or factory?30. Will you apply the scheme in some way to direct as well as indirect personnel? If not, how will the problem of increased or decreased differentials be solved?31. Will official disputes concerning the operation of the incentive plan be handled through the normal negotiating and disputes machinery?32. What will be the principles governing payment for 'waiting time' or unmeasured work?33. Will any scheme you introduce be on a gradual basis or do you intend to apply it to all appropriate sections at the one time?34. How will you calculate holiday pay for pieceworkers?It's notoriously difficult to put together an incentive scheme that motivates all of its targets, and that continues to do so over an extended period. You may be looking to get the most from your staff by increasing motivation, improving morale and encouraging efficiency.Incentive awards are a way of rewarding employees and others with cash, goods or holidays rather than increases in pay. There are Two Basic Types Of Incentive Scheme, Financial and Non-FinancialSchemes can vary from national promotions to a prize raffle held by a small firm.
Rewards of goods or holidays will usually involve the use of a voucher.Awards may be linked to sales performance, good timekeeping, safety or production records, or may involve participation in a lottery or prize draw.There should be increasing consistency in the ways that reward, recognition and incentives are offered to customers, staff and distributors. Participants should always have the power of choice, enabling them to self-target and work towards things that are exciting or important to them.Incentives that are always won by a small group of high performers, breed more resentment than motivation, while the high performers themselves soon become bored with the repetition of holidays, and activities that are open to them.The aim of an incentive scheme is to improve the performance of your business, whether it is your employees, customer's or supply chain.As a result the most successful incentive schemes tend to be those matched to the individual's requirements, but which still appeal to the company as a whole.You will find that with a little extra thought, allied to a willingness to be creative, can make a quantum difference to the effectiveness of an incentive programme.Bill Ritchie helps with developing home based businesses, business ideas, Internet Marketing Tips, plus writes the occasional article, and runs a useful, informative website at http://www.thehomebusinessprofessor.com
Keyword : incentive schemes, incentives, loyalty rewards, loyalty points. incentive awards
6 Key Ways to Distinguish Yourself as a Business Professional
Author : Larry M. Lynch
Regardless of your business area, with competition mounting it's becoming increasingly difficult to stand out and get yourself and your business noticed. One crucial, but often neglected area that you can address immediately is your image as a professional. Here are 6 key ways you can help raise yourself head and shoulders above the rest of the pack and increase your chances of success.1. Dress for SuccessIncredibly, there are those who give little attention to the image they present before potential clients and customers. Any business related contact must be treated as an opportunity to further your business interests. You should be groomed to the point of being precise whenever engaged in business dealings with current or potential clients. Always be sure to be properly attired for business appointments, meetings and conferences. Your business area too should be in presentable condition. How does it look? How does it smell? Clean the floors, empty the trash, dust and get rid of anything scurrying around with more than two legs.2. Have well – appointed, precise business documentsAny paperwork related to your business or company must clearly identify its purpose and provide full contact information. You should have letterhead stationery for both online and off line dealings. Other documents which must be well-prepared in advance of any customer contact include envelopes, contracts, invoices, receipts, flyers, brochures, sales letters, folders and business cards. Keep your materials focused. Do not adopt a one-format-fits-all scenario. It may be cheaper, but it just doesn't convey a professional image of you or your company. Double and triple check format, spelling and grammar on all written correspondence before it goes out or you may really be sorry. Ef U don't no how 2 rite oar spel do whut U hv 2 too fix the prablum.3. Be OrganizedWithout fail keep all appointments no matter how trivial they may appear to be at first. You never know what the other person may lead you to, or who they may become down the road. Return phone calls and inquiries promptly. Use a system that will allow you to maintain a schedule of events, appointments, calls and activities. Keep in regular contact with all new and prospective customers and clients. Be sure to make use of available tools that may help to grow and expand your business. If you're not using internet tools as effectively as you can, read the article "5 Essential Tools You Need for Marketing on the Internet". It'll help get you going in the right direction. It's here: http://EzineArticles.com/?id=761754. Conduct All Business Matters PromptlyAlways be on time for scheduled appointments, meetings and other business-related activities. Always meet set deadlines for work you are contracted to do – verbally or in writing. Stick to contracts faithfully on your part. Keep an accurate clock visible during business hours. Plan ahead. You must absolutely show respect for other people's time and resources. Remember; do unto others as you would have them do unto you. It is said that "an elephant never forgets" – neither do some key people you need now and in the future. Be professional.5. Be knowledgeable in your field of businessWithout fail, regardless of how well (or how poorly) you're doing, take time to read key instruments related to your field of business. You can't be too healthy, too rich or too well-informed. Take short courses, seminars or training in areas where you may be a little weak. They'll pay off in ways you cannot know at the time. Get newsletters, RSS feeds, newsletters and articles regularly. Visit chat rooms dealing with topics of interest. Ever hear of "serendipity"? It means finding or recognizing a valuable (or profitable) opportunity because of specialized knowledge or experience. What you don't know can hurt you, whether you realize it or not. Keep abreast of current events and news – especially those related in some way to your area of business. When chatting in a networking situation, news tidbits can be lifesavers, deal-makers or deal-busters.6. Market Briskly and RegularlySeek out and take advantage of every opportunity to network. You'll have to get your products and services in front of enough people to make a sale. How many is that? If you don't know, market and network until you do. No matter what your business, it's all in the numbers: the more, the better. Avail yourself of opportunities for public speaking, at your local chamber, for business organizations, schools, institutes, conferences, seminars and any other venues available. If you're not a poised, accomplished speaker now's the time to break some new ground. Try these tips:• Have a look at the article "8 Tips for Giving Your First Presentation before a Live Audience at: http://EzineArticles.com/?id=74840 .Brainstorm regularly for expanding into new markets and methods of promoting your business:• For some initial ideas on breaking into new marketing areas that may be a bit out of your norms, take a peek at "6 Essential Keys to Marketing Web-Based Products and Services in Latin America", available at: http://EzineArticles.com/?id=74080 .• Don't neglect writing articles related to your business or company either. Not only "business" articles either. Your can write on topics of interest locally. Delve into facets of your region that interest potential clients, existing customers or the locals. Seek out the unusual, the rare, the interesting. But be sure, if it's of interest to them, it'll be of interest to many others and will help get you and your business noticed. Jump start your thinking a bit by reading "10 Tips for Writing Exotic Articles about Where You Live" online for your mind-expanding pleasure at: http://EzineArticles.com/?id=72713Working on these six key areas will help to get you and your business noticed, generate new leads and opportunities, as well as helping you to stand out from the rest of the herd. Many of your competitors may short-change themselves in some of these areas, but now at least YOU won't - right? And if I can help, feel free to drop me a line.Larry M. Lynch is a writer and photographer specializing in business, travel, food and education-related writing in South America. His work has appeared in Transitions Abroad, South American Explorer, Escape From America, Mexico News and Brazil magazines in print and online. Contact him at: lynchlarrym@gmail.com As an expert author he can ghost-write original, exclusive articles for your articles marketing campaign and content for your website, newsletter, blog or e-zine. For a free quote on services send your requirements or questions to: pentagon_elsb@hotmail.com
Keyword : business, business professional, success, image, competition
Regardless of your business area, with competition mounting it's becoming increasingly difficult to stand out and get yourself and your business noticed. One crucial, but often neglected area that you can address immediately is your image as a professional. Here are 6 key ways you can help raise yourself head and shoulders above the rest of the pack and increase your chances of success.1. Dress for SuccessIncredibly, there are those who give little attention to the image they present before potential clients and customers. Any business related contact must be treated as an opportunity to further your business interests. You should be groomed to the point of being precise whenever engaged in business dealings with current or potential clients. Always be sure to be properly attired for business appointments, meetings and conferences. Your business area too should be in presentable condition. How does it look? How does it smell? Clean the floors, empty the trash, dust and get rid of anything scurrying around with more than two legs.2. Have well – appointed, precise business documentsAny paperwork related to your business or company must clearly identify its purpose and provide full contact information. You should have letterhead stationery for both online and off line dealings. Other documents which must be well-prepared in advance of any customer contact include envelopes, contracts, invoices, receipts, flyers, brochures, sales letters, folders and business cards. Keep your materials focused. Do not adopt a one-format-fits-all scenario. It may be cheaper, but it just doesn't convey a professional image of you or your company. Double and triple check format, spelling and grammar on all written correspondence before it goes out or you may really be sorry. Ef U don't no how 2 rite oar spel do whut U hv 2 too fix the prablum.3. Be OrganizedWithout fail keep all appointments no matter how trivial they may appear to be at first. You never know what the other person may lead you to, or who they may become down the road. Return phone calls and inquiries promptly. Use a system that will allow you to maintain a schedule of events, appointments, calls and activities. Keep in regular contact with all new and prospective customers and clients. Be sure to make use of available tools that may help to grow and expand your business. If you're not using internet tools as effectively as you can, read the article "5 Essential Tools You Need for Marketing on the Internet". It'll help get you going in the right direction. It's here: http://EzineArticles.com/?id=761754. Conduct All Business Matters PromptlyAlways be on time for scheduled appointments, meetings and other business-related activities. Always meet set deadlines for work you are contracted to do – verbally or in writing. Stick to contracts faithfully on your part. Keep an accurate clock visible during business hours. Plan ahead. You must absolutely show respect for other people's time and resources. Remember; do unto others as you would have them do unto you. It is said that "an elephant never forgets" – neither do some key people you need now and in the future. Be professional.5. Be knowledgeable in your field of businessWithout fail, regardless of how well (or how poorly) you're doing, take time to read key instruments related to your field of business. You can't be too healthy, too rich or too well-informed. Take short courses, seminars or training in areas where you may be a little weak. They'll pay off in ways you cannot know at the time. Get newsletters, RSS feeds, newsletters and articles regularly. Visit chat rooms dealing with topics of interest. Ever hear of "serendipity"? It means finding or recognizing a valuable (or profitable) opportunity because of specialized knowledge or experience. What you don't know can hurt you, whether you realize it or not. Keep abreast of current events and news – especially those related in some way to your area of business. When chatting in a networking situation, news tidbits can be lifesavers, deal-makers or deal-busters.6. Market Briskly and RegularlySeek out and take advantage of every opportunity to network. You'll have to get your products and services in front of enough people to make a sale. How many is that? If you don't know, market and network until you do. No matter what your business, it's all in the numbers: the more, the better. Avail yourself of opportunities for public speaking, at your local chamber, for business organizations, schools, institutes, conferences, seminars and any other venues available. If you're not a poised, accomplished speaker now's the time to break some new ground. Try these tips:• Have a look at the article "8 Tips for Giving Your First Presentation before a Live Audience at: http://EzineArticles.com/?id=74840 .Brainstorm regularly for expanding into new markets and methods of promoting your business:• For some initial ideas on breaking into new marketing areas that may be a bit out of your norms, take a peek at "6 Essential Keys to Marketing Web-Based Products and Services in Latin America", available at: http://EzineArticles.com/?id=74080 .• Don't neglect writing articles related to your business or company either. Not only "business" articles either. Your can write on topics of interest locally. Delve into facets of your region that interest potential clients, existing customers or the locals. Seek out the unusual, the rare, the interesting. But be sure, if it's of interest to them, it'll be of interest to many others and will help get you and your business noticed. Jump start your thinking a bit by reading "10 Tips for Writing Exotic Articles about Where You Live" online for your mind-expanding pleasure at: http://EzineArticles.com/?id=72713Working on these six key areas will help to get you and your business noticed, generate new leads and opportunities, as well as helping you to stand out from the rest of the herd. Many of your competitors may short-change themselves in some of these areas, but now at least YOU won't - right? And if I can help, feel free to drop me a line.Larry M. Lynch is a writer and photographer specializing in business, travel, food and education-related writing in South America. His work has appeared in Transitions Abroad, South American Explorer, Escape From America, Mexico News and Brazil magazines in print and online. Contact him at: lynchlarrym@gmail.com As an expert author he can ghost-write original, exclusive articles for your articles marketing campaign and content for your website, newsletter, blog or e-zine. For a free quote on services send your requirements or questions to: pentagon_elsb@hotmail.com
Keyword : business, business professional, success, image, competition
Medical Billing Services Save Heatlhcare Practices Money and Time
Author : K Allen
There are many reasons healthcare practices might outsource their billing to a professional medical billing service; confusing insurance requirements, staffing problems and just keeping up with industry changes are a few examples. In the end though, the reasons most medical billing companies hear about come down to the two driving principles of any business – Time and Money. This article discusses how medical billing services are able to create significant savings in time and money for healthcare providers.Medical Billing Services Save Training and Research Time
- Some readers might take the short view and think medical billing companies just enter data into a computer and send it off to a clearinghouse. In reality medical billing is a detailed process requiring specialized skills and in-depth knowledge of medical practice management, insurance industry practices, and the regulatory framework around state and federal laws. Professional medical billing companies invest countless hours in training and research to keep abreast of current codes, submission requirements, industry trends and the needs of their clients.Significant expenditures are also made to ensure medical billing companies are up to date on the latest software. In a constantly changing industry, software vendors are always finding new and better ways of supporting practice needs. It's not practicable for small or medium sized practices to dedicate the time necessary to stay on top of the latest innovations.These investments of time by professional medical billing services are often not considered by providers, but they eliminate endless hours otherwise spent in seminars, meetings with vendors, or on the phone with clearinghouses and carriers. This time savings creates a valuable commodity for a practice seeking the edge necessary to keep up with a rigorous patient schedule.Medical Billing Services Save Operational Time
-Medical billing services are able to save operational time by leveraging the economy of scale and the efficiency of task specialization.Professional medical billing companies, by their very nature, create an economy of scale in maintaining a team of medical billing professionals to provide services across several practices. This structure creates a well trained pool of resources to manage each practice's needs rather than just one individual overseeing all billing functions. The team approach also removes interruptions to revenue flow that result from vacations, unexpected sick time and staff turnover.Task specialization among teams further heightens the efficiency of medical billing companies. Through task specialization, a team of billers can accentuates individual skills and reduces distractions of other activities.Consider a provider who sees an average of 30 patients per day, or a total of 150 encounters per week. The time required to generate and submit 150 patient claims and follow up with insurance carriers with a high lever of accuracy can take up most of the time of an in-house biller. But this is just the beginning. That same individual will also need to follow up on denied or partially paid claims, researching why and resubmitting for further review. Patient invoices require additional time- printing, stuffing and mailing- as well as posting payments, running reports and providing detailed analysis on the current state of the practice; all this just to meet the standard offering of professional medical billing companies.Through task specialization, medical billing companies might offer each of its clients several billers submitting claims and reviewing insurance payments with the highest level of accuracy. At the same time, the service might have other individuals or groups dedicated to managing patient invoices and questions across several practices with increased efficiency. This approach maximizes the time available for each activity by specialists with a greater knowledge of their roles, and, again, guarantees minimal (if any) interruption during employee leave and staff changes.Medical Billing Services Save Money
-Hiring and training new staff, employee benefits, vacation/sick leave, and staff turnover are just a few factors increasing the costs of managing an efficient in-house billing program. Added to the operational overhead of day to day billing, software/hardware maintenance, clearinghouse fees, postage, and so on, the list of expenditures for practices is endless.Good medical billing companies will design their services around covering all of these costs and immediately do away with the problems they create. To clearly demonstrate how medical billing services can save practices money, let's compare the core costs associated with in-house medical billing against working with a professional medical billing service.Cost of In-House Billing:
Our comparison begins with a typical practice with one or two providers. Let's assume this practice has a dedicated, in-house biller receiving an annual salary of $30,000, or about $14.50 per hour. The chart below outlines the additional costs of having a full time employee in the office to handle all aspects of medical billing.
Base Pay --------------------------$30,000
Medicare and Social Security ---------$2295
401K --------------------------------$1080
Disability -----------------------------$720
Healthcare --------------------------$5220
Time off -----------------------------$3270
Total labor for 1 in-house biller ------$42,585
Next, we'll need to consider materials and fees. An average practice will probably upgrade computers and software every 3 years at a cost of about $6,000. Spread out over those three years, we'll assume an average annual software/hardware expenditure of $2000. Since our practice will send out its own patient statements, we'll need about $150 per month for postage, paper and envelopes, an annual cost of $1800. Clearinghouse fees for electronic claims will come to about $60 a month, or around $720 annually. For the sake of simplicity, we'll forget for the moment that our biller will need a climate controlled workspace, lights, general office supplies and a desk.Here's what our list of software/hardware, materials and fees looks like:
Software/Hardware -----------------$2000
Materials ---------------------------$1800
Clearinghouse Fees ------------------$720
Total ------------------------------$4520
Adding the two totals above (labor + materials & fees), the annual cost of medical billing services performed in-house by the practice comes to $47,105 per year. Of course this number might not mean much until we put it in perspective against teaming with a professional medical billing service. As we move forward, keep in mind this conservative estimate does not factor in those other costs mentioned above that are often hidden - ongoing training, unexpected leave and sudden staff changes.Cost of Professional Medical Billing Services:
To evaluate the cost of working with medical billing services, we'll assume our practice has contracted with a medical billing company for full service billing. This includes all of those activities that would otherwise have been performed by the in-house staff above; claim generation/submission, insurance follow up, patient invoicing and support, detailed reporting, expert practice analysis, etc. We'll also assume the practice has negotiated a rate of 8% of collections with its professional medical billing service.Note: Calculating costs for medical billing services will vary slightly depending on the fee structure but will usually be based on either a percentage of collections or a fixed fee per claim. For more information on fee structures, see Percentage vs. Flat Fee Pricing by Medical Billing Services.Assuming our provider visits 30 patients per day, 50 weeks out of the year, we'll have 7500 patient encounters per year. If each encounter results in an average reimbursement of $60, our receivables come to a little over $450,000 per year. At a rate of 8%, the annual cost for the professional service to manage all aspects of medical billing services for the practice would be $31,500. In comparison with in-house services that's a savings of $15,600 per year! Summary
In evaluating the benefits of outsourcing to a professional medical billing company practices should consider the overall savings in time and money, beyond just minimizing the hassles. Medical billing companies provide knowledge, training, continuity of operations and a network of support leveraging task specialization and the economy of scale. Medical billing companies are able to eliminate dependency on one or two costly staff members to maintain revenue flow for the entire practice.For more information on the benefits of outsourcing, contact Diversity Medical Billing Services. Leverage maximum efficiency and economy through a well designed support structure and industry leading rates. Diversity's medical billing services ensure the stability of practice cash flow while attaining the highest reimbursements possible. You can also learn about other ways to improve your billing with in-depth Medical Billing Articles and Information.
Keyword : medical billing services save time and money, medical billing outsourcing, medical billing services
There are many reasons healthcare practices might outsource their billing to a professional medical billing service; confusing insurance requirements, staffing problems and just keeping up with industry changes are a few examples. In the end though, the reasons most medical billing companies hear about come down to the two driving principles of any business – Time and Money. This article discusses how medical billing services are able to create significant savings in time and money for healthcare providers.Medical Billing Services Save Training and Research Time
- Some readers might take the short view and think medical billing companies just enter data into a computer and send it off to a clearinghouse. In reality medical billing is a detailed process requiring specialized skills and in-depth knowledge of medical practice management, insurance industry practices, and the regulatory framework around state and federal laws. Professional medical billing companies invest countless hours in training and research to keep abreast of current codes, submission requirements, industry trends and the needs of their clients.Significant expenditures are also made to ensure medical billing companies are up to date on the latest software. In a constantly changing industry, software vendors are always finding new and better ways of supporting practice needs. It's not practicable for small or medium sized practices to dedicate the time necessary to stay on top of the latest innovations.These investments of time by professional medical billing services are often not considered by providers, but they eliminate endless hours otherwise spent in seminars, meetings with vendors, or on the phone with clearinghouses and carriers. This time savings creates a valuable commodity for a practice seeking the edge necessary to keep up with a rigorous patient schedule.Medical Billing Services Save Operational Time
-Medical billing services are able to save operational time by leveraging the economy of scale and the efficiency of task specialization.Professional medical billing companies, by their very nature, create an economy of scale in maintaining a team of medical billing professionals to provide services across several practices. This structure creates a well trained pool of resources to manage each practice's needs rather than just one individual overseeing all billing functions. The team approach also removes interruptions to revenue flow that result from vacations, unexpected sick time and staff turnover.Task specialization among teams further heightens the efficiency of medical billing companies. Through task specialization, a team of billers can accentuates individual skills and reduces distractions of other activities.Consider a provider who sees an average of 30 patients per day, or a total of 150 encounters per week. The time required to generate and submit 150 patient claims and follow up with insurance carriers with a high lever of accuracy can take up most of the time of an in-house biller. But this is just the beginning. That same individual will also need to follow up on denied or partially paid claims, researching why and resubmitting for further review. Patient invoices require additional time- printing, stuffing and mailing- as well as posting payments, running reports and providing detailed analysis on the current state of the practice; all this just to meet the standard offering of professional medical billing companies.Through task specialization, medical billing companies might offer each of its clients several billers submitting claims and reviewing insurance payments with the highest level of accuracy. At the same time, the service might have other individuals or groups dedicated to managing patient invoices and questions across several practices with increased efficiency. This approach maximizes the time available for each activity by specialists with a greater knowledge of their roles, and, again, guarantees minimal (if any) interruption during employee leave and staff changes.Medical Billing Services Save Money
-Hiring and training new staff, employee benefits, vacation/sick leave, and staff turnover are just a few factors increasing the costs of managing an efficient in-house billing program. Added to the operational overhead of day to day billing, software/hardware maintenance, clearinghouse fees, postage, and so on, the list of expenditures for practices is endless.Good medical billing companies will design their services around covering all of these costs and immediately do away with the problems they create. To clearly demonstrate how medical billing services can save practices money, let's compare the core costs associated with in-house medical billing against working with a professional medical billing service.Cost of In-House Billing:
Our comparison begins with a typical practice with one or two providers. Let's assume this practice has a dedicated, in-house biller receiving an annual salary of $30,000, or about $14.50 per hour. The chart below outlines the additional costs of having a full time employee in the office to handle all aspects of medical billing.
Base Pay --------------------------$30,000
Medicare and Social Security ---------$2295
401K --------------------------------$1080
Disability -----------------------------$720
Healthcare --------------------------$5220
Time off -----------------------------$3270
Total labor for 1 in-house biller ------$42,585
Next, we'll need to consider materials and fees. An average practice will probably upgrade computers and software every 3 years at a cost of about $6,000. Spread out over those three years, we'll assume an average annual software/hardware expenditure of $2000. Since our practice will send out its own patient statements, we'll need about $150 per month for postage, paper and envelopes, an annual cost of $1800. Clearinghouse fees for electronic claims will come to about $60 a month, or around $720 annually. For the sake of simplicity, we'll forget for the moment that our biller will need a climate controlled workspace, lights, general office supplies and a desk.Here's what our list of software/hardware, materials and fees looks like:
Software/Hardware -----------------$2000
Materials ---------------------------$1800
Clearinghouse Fees ------------------$720
Total ------------------------------$4520
Adding the two totals above (labor + materials & fees), the annual cost of medical billing services performed in-house by the practice comes to $47,105 per year. Of course this number might not mean much until we put it in perspective against teaming with a professional medical billing service. As we move forward, keep in mind this conservative estimate does not factor in those other costs mentioned above that are often hidden - ongoing training, unexpected leave and sudden staff changes.Cost of Professional Medical Billing Services:
To evaluate the cost of working with medical billing services, we'll assume our practice has contracted with a medical billing company for full service billing. This includes all of those activities that would otherwise have been performed by the in-house staff above; claim generation/submission, insurance follow up, patient invoicing and support, detailed reporting, expert practice analysis, etc. We'll also assume the practice has negotiated a rate of 8% of collections with its professional medical billing service.Note: Calculating costs for medical billing services will vary slightly depending on the fee structure but will usually be based on either a percentage of collections or a fixed fee per claim. For more information on fee structures, see Percentage vs. Flat Fee Pricing by Medical Billing Services.Assuming our provider visits 30 patients per day, 50 weeks out of the year, we'll have 7500 patient encounters per year. If each encounter results in an average reimbursement of $60, our receivables come to a little over $450,000 per year. At a rate of 8%, the annual cost for the professional service to manage all aspects of medical billing services for the practice would be $31,500. In comparison with in-house services that's a savings of $15,600 per year! Summary
In evaluating the benefits of outsourcing to a professional medical billing company practices should consider the overall savings in time and money, beyond just minimizing the hassles. Medical billing companies provide knowledge, training, continuity of operations and a network of support leveraging task specialization and the economy of scale. Medical billing companies are able to eliminate dependency on one or two costly staff members to maintain revenue flow for the entire practice.For more information on the benefits of outsourcing, contact Diversity Medical Billing Services. Leverage maximum efficiency and economy through a well designed support structure and industry leading rates. Diversity's medical billing services ensure the stability of practice cash flow while attaining the highest reimbursements possible. You can also learn about other ways to improve your billing with in-depth Medical Billing Articles and Information.
Keyword : medical billing services save time and money, medical billing outsourcing, medical billing services
Conflict Resolution - Managing Workplace Conflict
Author : Kelly Graves
It goes by many names -- conflict prevention, conflict resolution, conflict management, the names go on. These terms were all created to combat a similar problem. For the most part, people who deal with these issues all agree with the same principle:Conflict resolution at an early stage is less costly and more manageable than trying to deal with its repercussions later.First, let's discuss the types of conflicts we have observed in our years of experience working with organizations.We have observed 3 major types of workplace conflict:Task Conflict
Task conflict arises among members of work teams and specifically affects the goals and tasks they are striving to achieve. Differences in vision, intentions and quality expectations often lead to task conflict. Employee relationships may initially appear to survive task conflict but an important project may not. It is essential to channel task conflict so that these differences become collaborative and improve the way the team thinks about accomplishing current and future tasks.Process Conflict
This form of conflict centers around the steps or methods used by a team to reach a goal. One person might like to plan 100 steps ahead while another might like to dive in head first. These differences in process can lead to communication breakdown and ultimately conflict. But, like task conflict, process conflict can be useful, if managed correctly. Healthy differences in process often will lead to an IMPROVED way of achieving goals.Relationship Conflict
Often misunderstood, relationship conflict undermines and tears at the fabric of a team's ability to achieve goals effectively, efficiently and profitably. Relationship conflict penetrates all aspects of an organization. When people in a workplace fail to communicate effectively, entire work teams or even an entire organization will suffer. This type of conflict will quickly consume all the attention and energy of an organization, leaving little time to accomplish profitable tasks.What can you do to bring conflict to a reasonable resolution? And how can it be beneficial to everyone involved? The goal is to increase the benefits achieved from encouraging task and process conflict while at the same time reducing, managing and understanding the negative effects of relationship conflict.The benefits of effective conflict resolution are great:
Improve organizational decision making
Inspire employees to articulate and clarify their ideas and positions
Stimulate innovation, creativity and forward thinking
Improve individual and group performance
If no resolution is sought for conflict the affects are often devastating:
Job stress and burnout rises which typically increases absenteeism and turnover
Distrust and suspicion develops often creating an "us versus them" culture
Job satisfaction and performance falters
Employee loyalty and commitment declinesABOUT THE AUTHOR
Kelly Graves is the founder and CEO of Internal Solutions Consulting. ISC specializes in organizational conflict resolution. With over 85 years of combined experience in organizational conflict resolution, Internal Solutions is able to quickly address conflicts within an organization to facilitate a more successful, productive and profitable communication environment. For more informaiton about Internal Solutions Consulting please visit http://www.conflictresolutionusa.comARTICLE REPRODUCTION
We encourage people to reproduce this article for their own needs. The article must be reproduced in ITS ENTIRITY. Please include the 'ABOUT THE AUTHOR' section with all author credits, hyperlinks and names. Also please include this section regarding article reproduction.
Keyword : conflict resolution, workplace conflict, conflict resolution activities, conflict resolution tips
It goes by many names -- conflict prevention, conflict resolution, conflict management, the names go on. These terms were all created to combat a similar problem. For the most part, people who deal with these issues all agree with the same principle:Conflict resolution at an early stage is less costly and more manageable than trying to deal with its repercussions later.First, let's discuss the types of conflicts we have observed in our years of experience working with organizations.We have observed 3 major types of workplace conflict:Task Conflict
Task conflict arises among members of work teams and specifically affects the goals and tasks they are striving to achieve. Differences in vision, intentions and quality expectations often lead to task conflict. Employee relationships may initially appear to survive task conflict but an important project may not. It is essential to channel task conflict so that these differences become collaborative and improve the way the team thinks about accomplishing current and future tasks.Process Conflict
This form of conflict centers around the steps or methods used by a team to reach a goal. One person might like to plan 100 steps ahead while another might like to dive in head first. These differences in process can lead to communication breakdown and ultimately conflict. But, like task conflict, process conflict can be useful, if managed correctly. Healthy differences in process often will lead to an IMPROVED way of achieving goals.Relationship Conflict
Often misunderstood, relationship conflict undermines and tears at the fabric of a team's ability to achieve goals effectively, efficiently and profitably. Relationship conflict penetrates all aspects of an organization. When people in a workplace fail to communicate effectively, entire work teams or even an entire organization will suffer. This type of conflict will quickly consume all the attention and energy of an organization, leaving little time to accomplish profitable tasks.What can you do to bring conflict to a reasonable resolution? And how can it be beneficial to everyone involved? The goal is to increase the benefits achieved from encouraging task and process conflict while at the same time reducing, managing and understanding the negative effects of relationship conflict.The benefits of effective conflict resolution are great:
Improve organizational decision making
Inspire employees to articulate and clarify their ideas and positions
Stimulate innovation, creativity and forward thinking
Improve individual and group performance
If no resolution is sought for conflict the affects are often devastating:
Job stress and burnout rises which typically increases absenteeism and turnover
Distrust and suspicion develops often creating an "us versus them" culture
Job satisfaction and performance falters
Employee loyalty and commitment declinesABOUT THE AUTHOR
Kelly Graves is the founder and CEO of Internal Solutions Consulting. ISC specializes in organizational conflict resolution. With over 85 years of combined experience in organizational conflict resolution, Internal Solutions is able to quickly address conflicts within an organization to facilitate a more successful, productive and profitable communication environment. For more informaiton about Internal Solutions Consulting please visit http://www.conflictresolutionusa.comARTICLE REPRODUCTION
We encourage people to reproduce this article for their own needs. The article must be reproduced in ITS ENTIRITY. Please include the 'ABOUT THE AUTHOR' section with all author credits, hyperlinks and names. Also please include this section regarding article reproduction.
Keyword : conflict resolution, workplace conflict, conflict resolution activities, conflict resolution tips
Tips for Performance Reviews
Author : Scott Morris
If you employ people in your business, you're going to be faced with a number of tricky management issues - dealing with tardiness, sick leave, and keeping your staff motivated.Performance reviews can be useful for motivating employees, but only if they are accurate. An inaccurate review, which fails to recognize the employee's value to the organization, can be worse than no review at all.If a performance review fails to take note of an employee's shortcomings, it won't be taken seriously.If an employee consistently performs poorly, it's vital to document this, as well as any corrective action that is taken.Your staff may be genuinely unaware that their performance in some areas is poor (or exceptional!), unless you tell them.Most employers conduct performance reviews annually, in order to decide on salary increases and bonuses. Since performance reviews should build on previous reviews, it's better to conduct them more regularly - every 4 months is a good frequency.Employees thrive on feedback, and regular performance reviews provide a consistent framework for providing positive reinforcement.Under-performing employees can also benefit. Regular reviews can identify weak performance areas, and allow you to set clear goals and expectations, and to coach and mentor the employee to improve their performance.Objectivity is vital. You need to concentrate on measuring performance, and not on quirks of personality.The performance review should relate directly to the employee's job profile - your employees do have job profiles, or job descriptions, don't they? The job profile should identify the Key Performance Areas for the job. For instance, some Key Performance Areas for a receptionist might be:* answer incoming calls within 3 rings
* take messages accurately and pass them on quickly
* type at a rate of 25 words a minuteThe more measurable a Key Performance Area, the better.Some other measurable Key Performance Areas include:* number of sick days
* number of absent days
* number of instances of tardiness
* number of customer complaints
* number of customer compliments
* number of co-worker complaintsOf course, you would have to keep accurate records of all of these, in the employee's personal file.You should prepare a performance review form for each employee, which lists the Key Performance Areas for the job, and provides a matrix for you to record the performance in each area.For example, you might rate the employee's performance in each Key Performance Area against a scale of
'Poor, Satisfactory, Good, Very Good, Excellent'Performance reviews should be a collaborative process - as far as possible, the employee should agree with your assessment.Scott Morris manages the site on performance management course.
Keyword : enterprise performance management,performance management course,performance management consultant
If you employ people in your business, you're going to be faced with a number of tricky management issues - dealing with tardiness, sick leave, and keeping your staff motivated.Performance reviews can be useful for motivating employees, but only if they are accurate. An inaccurate review, which fails to recognize the employee's value to the organization, can be worse than no review at all.If a performance review fails to take note of an employee's shortcomings, it won't be taken seriously.If an employee consistently performs poorly, it's vital to document this, as well as any corrective action that is taken.Your staff may be genuinely unaware that their performance in some areas is poor (or exceptional!), unless you tell them.Most employers conduct performance reviews annually, in order to decide on salary increases and bonuses. Since performance reviews should build on previous reviews, it's better to conduct them more regularly - every 4 months is a good frequency.Employees thrive on feedback, and regular performance reviews provide a consistent framework for providing positive reinforcement.Under-performing employees can also benefit. Regular reviews can identify weak performance areas, and allow you to set clear goals and expectations, and to coach and mentor the employee to improve their performance.Objectivity is vital. You need to concentrate on measuring performance, and not on quirks of personality.The performance review should relate directly to the employee's job profile - your employees do have job profiles, or job descriptions, don't they? The job profile should identify the Key Performance Areas for the job. For instance, some Key Performance Areas for a receptionist might be:* answer incoming calls within 3 rings
* take messages accurately and pass them on quickly
* type at a rate of 25 words a minuteThe more measurable a Key Performance Area, the better.Some other measurable Key Performance Areas include:* number of sick days
* number of absent days
* number of instances of tardiness
* number of customer complaints
* number of customer compliments
* number of co-worker complaintsOf course, you would have to keep accurate records of all of these, in the employee's personal file.You should prepare a performance review form for each employee, which lists the Key Performance Areas for the job, and provides a matrix for you to record the performance in each area.For example, you might rate the employee's performance in each Key Performance Area against a scale of
'Poor, Satisfactory, Good, Very Good, Excellent'Performance reviews should be a collaborative process - as far as possible, the employee should agree with your assessment.Scott Morris manages the site on performance management course.
Keyword : enterprise performance management,performance management course,performance management consultant
Margin Management - Using the Supplier Profitability Ratio to Hold Your Vendors Accountable
Author : Rick Johnson
Margin management is not rocket science. Improving gross margin is simple. You must either raise prices or reduce cost of goods sold. But, there is a little more to it than that when you consider net profit. Consider doing an activity based costing analysis on your entire account base. There are plenty of instruction manuals published on how to do this. I guarantee you that you will find some surprises. You should also consider implementing a "Margin Hold" system that forces management approval on orders entered below a minimum established threshold for gross margin percentage.On the Sales SideUltimately to create margin improvement, your entire sales team must have good judgment of market potential as it relates to margin improvement. They must be self disciplined and make intelligent decisions based on fact. Each territory manager must develop his own plan for profit improvement and be flexible on the implementation of that plan. They must be action oriented and customer driven and yet be extremely conscious of profitability objectives.Results must be measured against the plan. Trend lines need to be established both on revenue and profit growth. They must be able to see the rewards for their efforts. They must accept responsibility and accountability for improved profitability and achievement of established objectives. They need to understand activity based costing.On the Buy SideThe buy side of the equation also offers numerous opportunities for margin improvements. Approach all of your vendors. Don't be afraid to demand cost reductions. Your customers certainly aren't embarrassed to ask you. Review your entire purchasing organization. Do you have true buyers or are they simply order schedulers.Establish specific inventory reduction goals, turn-rate increase and fill rate improvement. Incenticize the critical success factors on the buy side, factors such as, margin improvement, inventory reduction and inventory turn rates. Include any others specific to your initiatives for profitability.Try to take advantage of any "itchy-scratchy" opportunities. (A new term I learned from some friends in Detroit.) These are opportunities where you are buying a product from someone that uses the types of products you distribute. The academic term is "reciprocity". The following is a checklist to review when considering margin improvement objectives.• Do you have an established pricing policy?• Do your pricing policies consider market segmentation, risk, service levels and value added?• Is your counter sales/will call priced according to margin objectives?• Do you have well trained buyers and do they negotiate?• Is your purchasing/inventory control department managing the inventory well? Are they using the correct volume discount and item analysis?• How do you measure your fill rate? Do you bench mark it to your competition?• Do you have a system to review and evaluate your RGA's? (Return Goods Authorization)• Do you charge for restocking?• Are you getting the optimum discounts from your supplier and are you keeping the discounts as profit?• Have you done a supplier profitability analysis?• Are your customers profitable?• Do you have significant supplier error?• Do you have a vendor returns program and do you manage it well?• Do you track your own and your suppliers on time delivery?
• Are you selling the right products to the right customers?• Do you have an outcall program?• Does your inside sales force understand the concept of up selling?• Is your warehouse operating efficiently?• Do you have a freight recovery program or do you fold under pressure and give it all away?• Do you rank and evaluate your customers by gross margin dollars and gross margin percentages?• Do you have an incentive program that is tied to gross margin growth both in dollars and percentages?On the buy side of the equation, you must be able to determine which of your suppliers enhance your margin opportunities and which suppliers detract from it. Add up all the things that each supplier does to help you increase profitability.Supplier Margin Contribution EnhancementWhat is your discount structure with your supplier and how does it rank in your competitive analysis? Are you getting the same discount or better than your competition? What are your total gross margin dollars earned by supplier? Rank your suppliers accordingly to be used as a weight factor. Apply a 1 to the lowest ranking, a ten to the highest and an appropriate number for those in between.Group your suppliers into dollar categories to minimize the number of rankings. If you have one hundred suppliers, apply the 80/20 rule and rank the top ten, the middle grouping and the bottom 10. Apply any form of this scale that makes sense to your specific circumstance. The objective of this exercise is to simply determine if your suppliers are making a genuine effort to enhance your profitability.Include cash discounts, rebates, co-op advertising, special terms and any other special incentives offered. Quantify in dollars all the enhancements each supplier offers.Supplier Margin DetractionQuantify each and every issue that contributes negatively from profit enhancement. Issues to be considered are excessive inventory carrying costs due to extended lead times, late shipments, missed deliveries, inability to direct ship, excessive conversion costs, rework, packaging issues, lack of or restrictive return policy and the general level of co-operation and willingness to keep you competitive in the market. Some of these issues are easily quantifiable. Others may require an arbitrary assigned dollar figure based strictly on gut feeling. What is the real cost of a lost order, a late shipment etc.? Guesstimates are okay as long as you are consistent in your application. Total all those negative costs to determine Supplier Margin Detraction.Common Margin Detractors• Short shipments/wrong counts• Missed promise date• Damaged goods• Partial shipment• Lost back order• Incorrect technical advise• Pricing errors• Wrong or no part number• No packing slip• Illegible documents• No PO number• Duplicate shipments• Wrong PO number• Poor customer service/response• Faulty products• Difficult claim procedures• Shipment to wrong location• Non responsive to emergency requestsSupplier Profitability RatioWe can now determine The Margin Enhancement Rating and The Margin Detraction Rating so we can create a Supplier Profitability Ratio using the following formula.TGM= Total Gross MarginME= Margin EnhancementMD= Margin DetractionSR= Supplier RatingSPR= Supplier Profitability RatioMC = Margin ContributionSUPPLIER PROFITABILITY RATIO1000 divided by ME-MD X SR X 100 = SPRExample:Margin Enhancement = $230,000.00Margin Detraction = $110,000.00Supplier Rating = 81000 divided by $230m-$110m X 8 = .066 X 100 = 6.6This formula is by no means scientifically accurate. In fact, it is an arbitrary conception designed specifically for the exercise and not the result. The rating itself is not of significance here. What is significant is the exercise itself. It forces you to take a serious look at true vendor performance. List your vendors by their profitability ratios. This should be an eye opening exercise. Take this information and use it in your discussions and negotiations with your vendors. Be careful not to reveal all the details of your rating as it can be easily challenged due to the intangible assignment of various factors. However, it can be invaluable in discussing many supplier issues contributing to margin detraction.What does a "stock out" really cost? How are missed deliveries impacting your customer's service and lost business opportunities? Offer your suppliers an option, improve the ratio performance or increase discounts. Lastly when looking at Margin Improvement and increasing sales revenue a supply chain analysis is beneficial.Visit http://www.ceostrategist.com and review the article "Looking for Gold? Prospect Your Pricing System."
Dr. Rick Johnson (rick@ceostrategist.com) is founder of CEO Strategist LLC. an experienced based firm specializing in leadership for wholesale distribution. CEO Strategist LLC. works in an advisory capacity with company 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 and his PhD in strategic Leadership.
Keyword : Vendor management, procurement, margin improvement, purchasing, gross profit,
Margin management is not rocket science. Improving gross margin is simple. You must either raise prices or reduce cost of goods sold. But, there is a little more to it than that when you consider net profit. Consider doing an activity based costing analysis on your entire account base. There are plenty of instruction manuals published on how to do this. I guarantee you that you will find some surprises. You should also consider implementing a "Margin Hold" system that forces management approval on orders entered below a minimum established threshold for gross margin percentage.On the Sales SideUltimately to create margin improvement, your entire sales team must have good judgment of market potential as it relates to margin improvement. They must be self disciplined and make intelligent decisions based on fact. Each territory manager must develop his own plan for profit improvement and be flexible on the implementation of that plan. They must be action oriented and customer driven and yet be extremely conscious of profitability objectives.Results must be measured against the plan. Trend lines need to be established both on revenue and profit growth. They must be able to see the rewards for their efforts. They must accept responsibility and accountability for improved profitability and achievement of established objectives. They need to understand activity based costing.On the Buy SideThe buy side of the equation also offers numerous opportunities for margin improvements. Approach all of your vendors. Don't be afraid to demand cost reductions. Your customers certainly aren't embarrassed to ask you. Review your entire purchasing organization. Do you have true buyers or are they simply order schedulers.Establish specific inventory reduction goals, turn-rate increase and fill rate improvement. Incenticize the critical success factors on the buy side, factors such as, margin improvement, inventory reduction and inventory turn rates. Include any others specific to your initiatives for profitability.Try to take advantage of any "itchy-scratchy" opportunities. (A new term I learned from some friends in Detroit.) These are opportunities where you are buying a product from someone that uses the types of products you distribute. The academic term is "reciprocity". The following is a checklist to review when considering margin improvement objectives.• Do you have an established pricing policy?• Do your pricing policies consider market segmentation, risk, service levels and value added?• Is your counter sales/will call priced according to margin objectives?• Do you have well trained buyers and do they negotiate?• Is your purchasing/inventory control department managing the inventory well? Are they using the correct volume discount and item analysis?• How do you measure your fill rate? Do you bench mark it to your competition?• Do you have a system to review and evaluate your RGA's? (Return Goods Authorization)• Do you charge for restocking?• Are you getting the optimum discounts from your supplier and are you keeping the discounts as profit?• Have you done a supplier profitability analysis?• Are your customers profitable?• Do you have significant supplier error?• Do you have a vendor returns program and do you manage it well?• Do you track your own and your suppliers on time delivery?
• Are you selling the right products to the right customers?• Do you have an outcall program?• Does your inside sales force understand the concept of up selling?• Is your warehouse operating efficiently?• Do you have a freight recovery program or do you fold under pressure and give it all away?• Do you rank and evaluate your customers by gross margin dollars and gross margin percentages?• Do you have an incentive program that is tied to gross margin growth both in dollars and percentages?On the buy side of the equation, you must be able to determine which of your suppliers enhance your margin opportunities and which suppliers detract from it. Add up all the things that each supplier does to help you increase profitability.Supplier Margin Contribution EnhancementWhat is your discount structure with your supplier and how does it rank in your competitive analysis? Are you getting the same discount or better than your competition? What are your total gross margin dollars earned by supplier? Rank your suppliers accordingly to be used as a weight factor. Apply a 1 to the lowest ranking, a ten to the highest and an appropriate number for those in between.Group your suppliers into dollar categories to minimize the number of rankings. If you have one hundred suppliers, apply the 80/20 rule and rank the top ten, the middle grouping and the bottom 10. Apply any form of this scale that makes sense to your specific circumstance. The objective of this exercise is to simply determine if your suppliers are making a genuine effort to enhance your profitability.Include cash discounts, rebates, co-op advertising, special terms and any other special incentives offered. Quantify in dollars all the enhancements each supplier offers.Supplier Margin DetractionQuantify each and every issue that contributes negatively from profit enhancement. Issues to be considered are excessive inventory carrying costs due to extended lead times, late shipments, missed deliveries, inability to direct ship, excessive conversion costs, rework, packaging issues, lack of or restrictive return policy and the general level of co-operation and willingness to keep you competitive in the market. Some of these issues are easily quantifiable. Others may require an arbitrary assigned dollar figure based strictly on gut feeling. What is the real cost of a lost order, a late shipment etc.? Guesstimates are okay as long as you are consistent in your application. Total all those negative costs to determine Supplier Margin Detraction.Common Margin Detractors• Short shipments/wrong counts• Missed promise date• Damaged goods• Partial shipment• Lost back order• Incorrect technical advise• Pricing errors• Wrong or no part number• No packing slip• Illegible documents• No PO number• Duplicate shipments• Wrong PO number• Poor customer service/response• Faulty products• Difficult claim procedures• Shipment to wrong location• Non responsive to emergency requestsSupplier Profitability RatioWe can now determine The Margin Enhancement Rating and The Margin Detraction Rating so we can create a Supplier Profitability Ratio using the following formula.TGM= Total Gross MarginME= Margin EnhancementMD= Margin DetractionSR= Supplier RatingSPR= Supplier Profitability RatioMC = Margin ContributionSUPPLIER PROFITABILITY RATIO1000 divided by ME-MD X SR X 100 = SPRExample:Margin Enhancement = $230,000.00Margin Detraction = $110,000.00Supplier Rating = 81000 divided by $230m-$110m X 8 = .066 X 100 = 6.6This formula is by no means scientifically accurate. In fact, it is an arbitrary conception designed specifically for the exercise and not the result. The rating itself is not of significance here. What is significant is the exercise itself. It forces you to take a serious look at true vendor performance. List your vendors by their profitability ratios. This should be an eye opening exercise. Take this information and use it in your discussions and negotiations with your vendors. Be careful not to reveal all the details of your rating as it can be easily challenged due to the intangible assignment of various factors. However, it can be invaluable in discussing many supplier issues contributing to margin detraction.What does a "stock out" really cost? How are missed deliveries impacting your customer's service and lost business opportunities? Offer your suppliers an option, improve the ratio performance or increase discounts. Lastly when looking at Margin Improvement and increasing sales revenue a supply chain analysis is beneficial.Visit http://www.ceostrategist.com and review the article "Looking for Gold? Prospect Your Pricing System."
Dr. Rick Johnson (rick@ceostrategist.com) is founder of CEO Strategist LLC. an experienced based firm specializing in leadership for wholesale distribution. CEO Strategist LLC. works in an advisory capacity with company 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 and his PhD in strategic Leadership.
Keyword : Vendor management, procurement, margin improvement, purchasing, gross profit,
Problem Solving: This Simple Process helps Identify Creative Solutions to Difficult Problems
Author : Doug Staneart
Five years ago, a couple of instructors that I was working with and I were brainstorming about different ways to promote our training programs more easily. Up to that point, I had spent my entire career in training focused primarily on helping individuals become more successful by helping them strengthen certain skill sets such as public speaking, management skills, and selling skills. We noticed that out of our classes, about 80% of participants were individuals, about 15% came with a friend, and about 5% came as a group. We knew that these groups who attended together leveraged the results of the programs significantly, because they held each other accountable for implementation of the skills. They also discussed the class within the office setting. What we didn't know was why more teams weren't registering.We decided to use the problem solving process that we teach in our classes to see if we could come up with different ways to increase group enrollment.Step #1: Identify the Specific Problem and Create a One-Sentence Description.This step sounds easy, but it is actually the most difficult and the most critical step as well. If your problem statement is too vague, then you will likely struggle with trying to come up with valid solutions. Also, if the problem statement is too encompassing, then a solution might be too complex to easily implement. For example, if we decide that the problem we want to overcome is poor customer service, then the group is likely to spend countless hours trying to first define customer service, and then coming up with every solution under the sun to try to fix the customer service problem. The success of the solution would be hard to measure. However, if we broke customer service into more specific parts such as eliminating rudeness from our call center agents or increasing repeat sales from existing customers, then we could more easily solve a complex problem.In the example above where I mentioned that our instructors wanted to increase group participation, our original problem statement was related to increasing repeat business from first time clients. After a little investigation we found that companies that sent two or more people to our classes were 30 times more likely to send people in the future than companies that sent an individual. When we identified that trend, we created a more specific problem statement which was, "In what was can we increase group participation in our classes?"Step #2: What are the Possibly CausesA common error at this point in the process is to jump right into looking for solutions to the problem before trying to identify the root causes of the problem. This usually results in a "band-aid" solution or a solution that just treat symptoms. It would be like reaching under your dashboard and clipping the wire to your "Check Engine" light. Sure you won't see the light anymore, but the underlying root cause and root problem in the engine is still there.Take some time to identify what some of the root causes of the problem are, and your team will come up with solutions to these root causes much more quickly.In our example, we started looking at the way our company marketed our programs and found some glaring causes that we had overlooked time and time again. The underlying root cause that we found was that our entire marketing effort was geared toward individuals. Our marketing pieces said things like "helps YOU overcome the fear of public speaking." Our registration form only had room for one person's name. We had no group discounts. These were all root causes.Step #3: What are the Possible SolutionsOnce the root causes are uncovered, solutions should start popping like popcorn. In our case, we redesigned our registration form and marketing pieces and began offering a group discount. In the next six months, out percentage of group registrations versus individual registrations tripled. In the next six months, the percentage of group registrations tripled again.In our case, we had a number of solutions to choose from and each was helpful in helping solve our problem, but in some cases, you may have to weed out possible solutions to discover a best possible solution.Step #4: What's the Best Possible SolutionIn this step, you'll want to weigh the pros and cons of each solution to determine what is the best plan of action based on what we know today. You may find that half way through implementation that one of the other solutions might work better. It's okay to regroup and begin to implement another solution if the first "Best Possible Solution" turns out to be a poor choice after all. Don't be afraid to take risks, though. Be willing to go out on a limb to create a breakthrough.Step #5: Create an Implementation PlanMost problem-solving meetings end when the solution is determined. Don't fall into this trap though. Once the solution is decided upon, create a detailed plan of action that hold specific people accountable for implementation. By doing this, you ensure that the solution that you worked so hard for actually pays off for you and your company.Doug Staneart, doug@leaderinstitute.com is CEO of The Leader's Institute, www.leadersinstitute.com, specializing in leadership, public speaking, and team building training for individuals and groups. He can be reached toll-free at 1-800-872-7830.
Keyword : problem solving, conflict resolution, management
Five years ago, a couple of instructors that I was working with and I were brainstorming about different ways to promote our training programs more easily. Up to that point, I had spent my entire career in training focused primarily on helping individuals become more successful by helping them strengthen certain skill sets such as public speaking, management skills, and selling skills. We noticed that out of our classes, about 80% of participants were individuals, about 15% came with a friend, and about 5% came as a group. We knew that these groups who attended together leveraged the results of the programs significantly, because they held each other accountable for implementation of the skills. They also discussed the class within the office setting. What we didn't know was why more teams weren't registering.We decided to use the problem solving process that we teach in our classes to see if we could come up with different ways to increase group enrollment.Step #1: Identify the Specific Problem and Create a One-Sentence Description.This step sounds easy, but it is actually the most difficult and the most critical step as well. If your problem statement is too vague, then you will likely struggle with trying to come up with valid solutions. Also, if the problem statement is too encompassing, then a solution might be too complex to easily implement. For example, if we decide that the problem we want to overcome is poor customer service, then the group is likely to spend countless hours trying to first define customer service, and then coming up with every solution under the sun to try to fix the customer service problem. The success of the solution would be hard to measure. However, if we broke customer service into more specific parts such as eliminating rudeness from our call center agents or increasing repeat sales from existing customers, then we could more easily solve a complex problem.In the example above where I mentioned that our instructors wanted to increase group participation, our original problem statement was related to increasing repeat business from first time clients. After a little investigation we found that companies that sent two or more people to our classes were 30 times more likely to send people in the future than companies that sent an individual. When we identified that trend, we created a more specific problem statement which was, "In what was can we increase group participation in our classes?"Step #2: What are the Possibly CausesA common error at this point in the process is to jump right into looking for solutions to the problem before trying to identify the root causes of the problem. This usually results in a "band-aid" solution or a solution that just treat symptoms. It would be like reaching under your dashboard and clipping the wire to your "Check Engine" light. Sure you won't see the light anymore, but the underlying root cause and root problem in the engine is still there.Take some time to identify what some of the root causes of the problem are, and your team will come up with solutions to these root causes much more quickly.In our example, we started looking at the way our company marketed our programs and found some glaring causes that we had overlooked time and time again. The underlying root cause that we found was that our entire marketing effort was geared toward individuals. Our marketing pieces said things like "helps YOU overcome the fear of public speaking." Our registration form only had room for one person's name. We had no group discounts. These were all root causes.Step #3: What are the Possible SolutionsOnce the root causes are uncovered, solutions should start popping like popcorn. In our case, we redesigned our registration form and marketing pieces and began offering a group discount. In the next six months, out percentage of group registrations versus individual registrations tripled. In the next six months, the percentage of group registrations tripled again.In our case, we had a number of solutions to choose from and each was helpful in helping solve our problem, but in some cases, you may have to weed out possible solutions to discover a best possible solution.Step #4: What's the Best Possible SolutionIn this step, you'll want to weigh the pros and cons of each solution to determine what is the best plan of action based on what we know today. You may find that half way through implementation that one of the other solutions might work better. It's okay to regroup and begin to implement another solution if the first "Best Possible Solution" turns out to be a poor choice after all. Don't be afraid to take risks, though. Be willing to go out on a limb to create a breakthrough.Step #5: Create an Implementation PlanMost problem-solving meetings end when the solution is determined. Don't fall into this trap though. Once the solution is decided upon, create a detailed plan of action that hold specific people accountable for implementation. By doing this, you ensure that the solution that you worked so hard for actually pays off for you and your company.Doug Staneart, doug@leaderinstitute.com is CEO of The Leader's Institute, www.leadersinstitute.com, specializing in leadership, public speaking, and team building training for individuals and groups. He can be reached toll-free at 1-800-872-7830.
Keyword : problem solving, conflict resolution, management
Key Employees Can and Will Leave Your Business, are You Prepared?
Author : Justin Woolich
Very few businesses can claim to be prepared for the loss of key employees. Quite often it is an unexpected and unplanned for event that causes quite a bit of disruption to 'business as usual'.It is quite a gut wrenching experience to see an employee you have worked with over a period of time leaving your business. Even if the parting of ways is on good terms with a period of handover, you just know that there is so much information walking out the door with your former employee and there is nothing you can do about it.And this is only just the beginning...While labouring through a period of being understaffed and overworked you are then faced with the task of recruiting a new employee to fill the vacant position. This is followed by the inevitable probation and training period where, hopefully the new employee comes up to speed and is able to pick up where the former employee left off.The problem is: What exactly was it that the former employee really did? They always seemed to be busy and on the rare occasion that they were absent due to illness, there were those problems that arose that were only truly resolved when they returned and took control and 'cleaned things up'.There has to be a better way...Fortunately quite a bit can be done to minimize the impact of situations like this on our business. And like most truly worthwhile solutions the steps required to complete this part of your business development does take some effort on your part.There is an established path that you can follow to get your business in order and the benefits to you and your employees are much farther reaching than just minimizing the impact of key employees leaving you.The following is by no means a definitive list of what is required. But it does give you some idea of the steps required.1) Create a flexible forward thinking Organization Chart defining the positions you require in your business.
2) Determine what the responsibilities are for the positions in your business.
3) Assign Employees to relevent positions in the Business.
4) Document key information that is critical to your business and make it available to your employees.
5) Work with your employees to define what it is they do, how they do it and most importantly how it could be done better.
6) Record, optimize then implement the business systems you have identified.
7) Assign the business systems to the relevant positions and monitor their use.By consistently following these steps for all positions in your business you will insulate yourself from some of the problems that occur when key employees leave your business.Start a Free Trial of Business Systems Manager today and find out how we can help you to free yourself from the concerns of loosing your key employees and take your Business Development to the next level.
Keyword : Employee Business Development
Very few businesses can claim to be prepared for the loss of key employees. Quite often it is an unexpected and unplanned for event that causes quite a bit of disruption to 'business as usual'.It is quite a gut wrenching experience to see an employee you have worked with over a period of time leaving your business. Even if the parting of ways is on good terms with a period of handover, you just know that there is so much information walking out the door with your former employee and there is nothing you can do about it.And this is only just the beginning...While labouring through a period of being understaffed and overworked you are then faced with the task of recruiting a new employee to fill the vacant position. This is followed by the inevitable probation and training period where, hopefully the new employee comes up to speed and is able to pick up where the former employee left off.The problem is: What exactly was it that the former employee really did? They always seemed to be busy and on the rare occasion that they were absent due to illness, there were those problems that arose that were only truly resolved when they returned and took control and 'cleaned things up'.There has to be a better way...Fortunately quite a bit can be done to minimize the impact of situations like this on our business. And like most truly worthwhile solutions the steps required to complete this part of your business development does take some effort on your part.There is an established path that you can follow to get your business in order and the benefits to you and your employees are much farther reaching than just minimizing the impact of key employees leaving you.The following is by no means a definitive list of what is required. But it does give you some idea of the steps required.1) Create a flexible forward thinking Organization Chart defining the positions you require in your business.
2) Determine what the responsibilities are for the positions in your business.
3) Assign Employees to relevent positions in the Business.
4) Document key information that is critical to your business and make it available to your employees.
5) Work with your employees to define what it is they do, how they do it and most importantly how it could be done better.
6) Record, optimize then implement the business systems you have identified.
7) Assign the business systems to the relevant positions and monitor their use.By consistently following these steps for all positions in your business you will insulate yourself from some of the problems that occur when key employees leave your business.Start a Free Trial of Business Systems Manager today and find out how we can help you to free yourself from the concerns of loosing your key employees and take your Business Development to the next level.
Keyword : Employee Business Development
Thoughts from a Post-Thanksgiving Nap
Author : Larry Galler
Leaning back in my post-Thanksgiving glow, I snuggled in my easy chair, put my feet up, sighed, and read my book until the need for a nap overtook me in a few moments. We all like our comfort. As a culture we certainly prefer comfort to discomfort. The problem is that being in a place of comfort lulls us. It lulls us from thinking, from learning, from activity, from progress, from growth. It's exactly the same in business.Comfortable businesses tend to coast. They stagnate. They have reached a comfortable state of existence with comfortable earnings, comfortable staff, comfortable systems, comfortable levels of stress. They have stopped getting better because they don't need to get better (or don't think they need to get better). That's a nice place to be but a difficult place to stay.While your company is settling back into that easy chair and taking a mid-day nap, your hungry, lean-and-mean, unsatisfied competitor is working hard to make your customers defect. At the same time, your marketplace is changing – the products and services they want are not the products and services they wanted last year or will want next year. New technologies have shifted the playing field and it is not going to stop soon, or ever.If your business is comfortable it is time to throw a bucket of ice-cold water on that napping, comfy existence before exterior forces demand you wake up and do something about it. How do you start towards uncomfortableness? By becoming unsatisfied.Take a look at the goals you are working towards. Become unsatisfied with one specific goal and stretch it. If the goal calls for producing 100 widgets per hour stretch it and demand 110 per hour. If it is increasing the staff retention rate by 10% per year stretch it and demand 15%. Over time, stretch more goals. Inspire the staff, commit the resources, create accountabilities and bring the snap of vitality to your organization.Resting comfortably is great once in a while, but come back with a "fire in the belly" instead of one more piece of that delicious pumpkin pie.Larry Galler coaches and consults with high-performance executives, professionals, and small businesses since 1993. He is the writer of the long-running (every Sunday since November 2001) business column, "Front Lines with Larry Galler" Sign up for his free newsletter at http://www.larrygaller.com
Leaning back in my post-Thanksgiving glow, I snuggled in my easy chair, put my feet up, sighed, and read my book until the need for a nap overtook me in a few moments. We all like our comfort. As a culture we certainly prefer comfort to discomfort. The problem is that being in a place of comfort lulls us. It lulls us from thinking, from learning, from activity, from progress, from growth. It's exactly the same in business.Comfortable businesses tend to coast. They stagnate. They have reached a comfortable state of existence with comfortable earnings, comfortable staff, comfortable systems, comfortable levels of stress. They have stopped getting better because they don't need to get better (or don't think they need to get better). That's a nice place to be but a difficult place to stay.While your company is settling back into that easy chair and taking a mid-day nap, your hungry, lean-and-mean, unsatisfied competitor is working hard to make your customers defect. At the same time, your marketplace is changing – the products and services they want are not the products and services they wanted last year or will want next year. New technologies have shifted the playing field and it is not going to stop soon, or ever.If your business is comfortable it is time to throw a bucket of ice-cold water on that napping, comfy existence before exterior forces demand you wake up and do something about it. How do you start towards uncomfortableness? By becoming unsatisfied.Take a look at the goals you are working towards. Become unsatisfied with one specific goal and stretch it. If the goal calls for producing 100 widgets per hour stretch it and demand 110 per hour. If it is increasing the staff retention rate by 10% per year stretch it and demand 15%. Over time, stretch more goals. Inspire the staff, commit the resources, create accountabilities and bring the snap of vitality to your organization.Resting comfortably is great once in a while, but come back with a "fire in the belly" instead of one more piece of that delicious pumpkin pie.Larry Galler coaches and consults with high-performance executives, professionals, and small businesses since 1993. He is the writer of the long-running (every Sunday since November 2001) business column, "Front Lines with Larry Galler" Sign up for his free newsletter at http://www.larrygaller.com
Questions??? Send an email to larry@larrygaller.com
Keyword : momentum, inspire, spirit
Increase Business Performance by Setting Performance Standards & Expectations for Your Employees
Author : Megan Tough
The success of your business is directly related to the commitment and productivity of the people who work in your business. And yet it is generally recognized that 60% of employees, or more, are underutilized in their roles at work.So what are the factors that contribute to low performance standards and expectations?Communication, or mis-communciation, is one of the major sources of low productivity. The messages that move between the owner, employees, managers and even customers are not understood in the same way. One classic example is that business owners tend to assume that employees and managers see things the same way they do.Managers tend to lower their expectations (unconsciously) so that they will not have to confront employees. Most people dislike discussing declining performance with their employees, and so actively avoid having to do so by reducing heir expectations of what's required.Employees have a tendency to protect themselves from possible failure by pushing back on what is expected. They will often negotiate/bargain the job down to a more comfortable level.Business owners often have difficulty separating what they want done from how they want it done. Telling employees exactly how to achieve a certain goal leaves no room for the employee to think or use their own initiative. Consequently they often stop trying to contribute and become 'sheep" – just doing what they are told. In this catch-22 situation, the owner is forced into a position where they must constantly be telling everyone exactly what to do.Some owners may not understand the concept of person/job matching, and so have the wrong people in the wrong positions. This situation can be extremely demotivating for the employee.So how do you go about setting performance standards and expectations?The owner and employee must collaborate together.They must work together on the fact that the role the employee is performing can be improved in a way where everybody wins - the employee, the owner, and the business. When you teach the owner to collaborate with the employee, not only does the performance go up, but so does the morale.Short term goals, or wins, must be established. 90-days is the ideal.Set specific goals for the employee in 90-day increments so that there will be ample opportunity to monitor systems and progress, as well as to experience wins on a routine basis. Ideally, involve the employee in this goal setting process so they experience some control over their work.Determine the strengths required to do the job well.If the employee is going to be successful, the owner and employee must decide jointly what strengths are required, and how the employee is going to be able to apply their strengths. This is where having a good match between the employee and the job is so important. The boss doesn't have to figure this out on their own - the employee will probably already know what's necessary.Set standards, and determine HOW they will be done.Decide the standards that will apply to each activity, as well as how the standards will be achieved. Understanding the level of performance required gives the employee a sense of achievement - which is one of the key ingredients to achieving performance standards. This is true for employees at any level.Establish communication agreements.To ensure success, the owner and employee must decide at the outset how they are going to communicate progress (and challenges) along the way. Will it be day-to-day? Week-to-week? The minimum time frame is week-to-week. Less frequent than that and it all falls apart.The employee decides how to achieve the desired results.The owner will be present and participating for this part, but it is essential that the employee be leading the process in order for them to have ownership. Help the employee take responsibility for deciding how to accomplish the results. You may need to determine if the employee has the skills and development to do this. If they don't, provide maximum guidance to them.Get it in writing.If it is not in writing, within one to two weeks everyone will be confused and uncertain. The focus, responsibility, resources, constraints, timetables and measures all need to be in writing. The purpose of doing this is to make sure the owner and employee are so clear on the goals and process that there is no confusion whatsoever. It sets everyoneEstablish a monitoring method.Make sure you get agreement on how the performance will be monitored and how frequently. In order for the process to go forward, the employee needs to agree to monitor their own performance, and the owner must agree to sit down and review it with the employee on a pre-determined schedule. Let them know upfront that if they get busy and start canceling meetings, performance will not improve and expectations will not be met.
I recommend having the employee keep track of their progress in writing and advise the owner weekly. A simple weekly progress update is a win-win solution and can take as little as 5 minutes. A monthly sit-down, face-to-face meeting is a must also.What are the benefits of setting effective performance standards and expectations?Employees are energized and empowered to take ownership of their positions.
Owners become energized and inspired, ceasing to lower expectations in order to avoid confrontation.The productivity of the company goes up.Everyone knows what is expected of them, which provides certainty to move forward.This process, itself, opens new channels of communication between owners and employees.complete potential is here to help you make more of your business. More profits, more income, more of what you want. Remove obstacles to growth and create new opportunities. To get more practical business strategies and tips, sign up to our ezine - Profits for Professionals - at http://www.completepotential.com
Keyword : Employee Performance, Management Expectations, Communication, Monitoring Methods
The success of your business is directly related to the commitment and productivity of the people who work in your business. And yet it is generally recognized that 60% of employees, or more, are underutilized in their roles at work.So what are the factors that contribute to low performance standards and expectations?Communication, or mis-communciation, is one of the major sources of low productivity. The messages that move between the owner, employees, managers and even customers are not understood in the same way. One classic example is that business owners tend to assume that employees and managers see things the same way they do.Managers tend to lower their expectations (unconsciously) so that they will not have to confront employees. Most people dislike discussing declining performance with their employees, and so actively avoid having to do so by reducing heir expectations of what's required.Employees have a tendency to protect themselves from possible failure by pushing back on what is expected. They will often negotiate/bargain the job down to a more comfortable level.Business owners often have difficulty separating what they want done from how they want it done. Telling employees exactly how to achieve a certain goal leaves no room for the employee to think or use their own initiative. Consequently they often stop trying to contribute and become 'sheep" – just doing what they are told. In this catch-22 situation, the owner is forced into a position where they must constantly be telling everyone exactly what to do.Some owners may not understand the concept of person/job matching, and so have the wrong people in the wrong positions. This situation can be extremely demotivating for the employee.So how do you go about setting performance standards and expectations?The owner and employee must collaborate together.They must work together on the fact that the role the employee is performing can be improved in a way where everybody wins - the employee, the owner, and the business. When you teach the owner to collaborate with the employee, not only does the performance go up, but so does the morale.Short term goals, or wins, must be established. 90-days is the ideal.Set specific goals for the employee in 90-day increments so that there will be ample opportunity to monitor systems and progress, as well as to experience wins on a routine basis. Ideally, involve the employee in this goal setting process so they experience some control over their work.Determine the strengths required to do the job well.If the employee is going to be successful, the owner and employee must decide jointly what strengths are required, and how the employee is going to be able to apply their strengths. This is where having a good match between the employee and the job is so important. The boss doesn't have to figure this out on their own - the employee will probably already know what's necessary.Set standards, and determine HOW they will be done.Decide the standards that will apply to each activity, as well as how the standards will be achieved. Understanding the level of performance required gives the employee a sense of achievement - which is one of the key ingredients to achieving performance standards. This is true for employees at any level.Establish communication agreements.To ensure success, the owner and employee must decide at the outset how they are going to communicate progress (and challenges) along the way. Will it be day-to-day? Week-to-week? The minimum time frame is week-to-week. Less frequent than that and it all falls apart.The employee decides how to achieve the desired results.The owner will be present and participating for this part, but it is essential that the employee be leading the process in order for them to have ownership. Help the employee take responsibility for deciding how to accomplish the results. You may need to determine if the employee has the skills and development to do this. If they don't, provide maximum guidance to them.Get it in writing.If it is not in writing, within one to two weeks everyone will be confused and uncertain. The focus, responsibility, resources, constraints, timetables and measures all need to be in writing. The purpose of doing this is to make sure the owner and employee are so clear on the goals and process that there is no confusion whatsoever. It sets everyoneEstablish a monitoring method.Make sure you get agreement on how the performance will be monitored and how frequently. In order for the process to go forward, the employee needs to agree to monitor their own performance, and the owner must agree to sit down and review it with the employee on a pre-determined schedule. Let them know upfront that if they get busy and start canceling meetings, performance will not improve and expectations will not be met.
I recommend having the employee keep track of their progress in writing and advise the owner weekly. A simple weekly progress update is a win-win solution and can take as little as 5 minutes. A monthly sit-down, face-to-face meeting is a must also.What are the benefits of setting effective performance standards and expectations?Employees are energized and empowered to take ownership of their positions.
Owners become energized and inspired, ceasing to lower expectations in order to avoid confrontation.The productivity of the company goes up.Everyone knows what is expected of them, which provides certainty to move forward.This process, itself, opens new channels of communication between owners and employees.complete potential is here to help you make more of your business. More profits, more income, more of what you want. Remove obstacles to growth and create new opportunities. To get more practical business strategies and tips, sign up to our ezine - Profits for Professionals - at http://www.completepotential.com
Keyword : Employee Performance, Management Expectations, Communication, Monitoring Methods
Do Not Confuse Your Team by Giving Different Signals
Author : Hans Bool
You are to lead a small call center. This center has a simple campaign where prospects are contacted (cold calling) offering them a new product. It is a difficult product to sell in a business to business market. So there are many ways of doing this. In most cases a call script would be used. So each call center agent knows what procedure to follow. Without having such a script, the manager could focus on either the concrete results – the number of contracts made - or at the way the contact process takes place. Combining these methods would be the worse of both worlds.Thé Client Relationship Management approach would focus on the contact with the client. Contact in the sense that the agents should wait for the client to show attention (and maybe interest). If you go directly to the point (the features of the product) you might loose the prospect in the beginning of the call.Some call center agents will focus (by nature and experience) more on this first phase of the call. Trying to establish a real contact. Yet this takes time and it is not always possible. If you manage this process by focusing on the numbers of calls to make, you might make it impossible for experiences agents to establish such a contact. You pressure them too much which could be ineffective.You could also choose to focus on the results only. For example that at the end of each week there should be a certain number of contracts.If you want to control everything you will focus on the way it is done. This is however very difficult. Your (personal) approach may not always coincide with the agents preferences. Besides it is very difficult to manage (to control). You should constantly be present, take random tests, etc (managing by walking around).
To have the agents focusing on the results is easier to manage. You can set the targets, either to the number of calls made or to the number of contracts to make.Combining both approaches will confuse the agent. In this approach you will set concrete targets, but you will also inform the agent how to reach these targets. This will not do because you will give them different signals. One signal is saying "Concentrate on the quality of the contact" the other signal hints "hurry because you have a target to reach."Management is not difficult, as long as you stick to your rules.© 2005 Hans BoolHans Bool is founder of Astor White a traditional management consulting company where Internet is the main interaction medium. By offering online tools we can address management issues in hours what normally would take days of consultancy. Astor White. Committed to your management issues. On a distance.
Keyword : coherence, consistency, signals
You are to lead a small call center. This center has a simple campaign where prospects are contacted (cold calling) offering them a new product. It is a difficult product to sell in a business to business market. So there are many ways of doing this. In most cases a call script would be used. So each call center agent knows what procedure to follow. Without having such a script, the manager could focus on either the concrete results – the number of contracts made - or at the way the contact process takes place. Combining these methods would be the worse of both worlds.Thé Client Relationship Management approach would focus on the contact with the client. Contact in the sense that the agents should wait for the client to show attention (and maybe interest). If you go directly to the point (the features of the product) you might loose the prospect in the beginning of the call.Some call center agents will focus (by nature and experience) more on this first phase of the call. Trying to establish a real contact. Yet this takes time and it is not always possible. If you manage this process by focusing on the numbers of calls to make, you might make it impossible for experiences agents to establish such a contact. You pressure them too much which could be ineffective.You could also choose to focus on the results only. For example that at the end of each week there should be a certain number of contracts.If you want to control everything you will focus on the way it is done. This is however very difficult. Your (personal) approach may not always coincide with the agents preferences. Besides it is very difficult to manage (to control). You should constantly be present, take random tests, etc (managing by walking around).
To have the agents focusing on the results is easier to manage. You can set the targets, either to the number of calls made or to the number of contracts to make.Combining both approaches will confuse the agent. In this approach you will set concrete targets, but you will also inform the agent how to reach these targets. This will not do because you will give them different signals. One signal is saying "Concentrate on the quality of the contact" the other signal hints "hurry because you have a target to reach."Management is not difficult, as long as you stick to your rules.© 2005 Hans BoolHans Bool is founder of Astor White a traditional management consulting company where Internet is the main interaction medium. By offering online tools we can address management issues in hours what normally would take days of consultancy. Astor White. Committed to your management issues. On a distance.
Keyword : coherence, consistency, signals
Ways to Effectively Lead your Team/ Organization
Author : Dominick Borzomati
Know Your Competition And Their Product Inside Out.Don't limit your competition only to the ones you know. Keep an eye out for latent competitors too. Once you know what these people are doing, you can build a better mousetrap.Consistently Do Extraordinary Things.Spend more than 50% of your time leading yourself: your purpose, ethics, principles, motivation, and conduct. Create the circumstances of what you want to make happen, go before and show the way.Take A Look Periodically At Where You Are And Where You Want To Go.Vision is great for moving ahead, but you need to look at where you are before you continue forward. Regroup, readjust the direction of your sails, and then move on.Really Create An Atmosphere Of Teamwork.Pay more than lip service to the concept of teamwork. Gather everyone on your team as equals. Let the team set its own goals for success.Develop A Sense Of Authenticity."Do as I say, not as I do" does not apply to work groups anymore. To keep teams motivated and focused you need to have moral authority in order to gain the same from your people.Take Care Of Your Customers. Take Care Of Your Teammates.Tangible results will follow from truly caring for everyone involved in the process. Every person matters!Create More Leaders Than The Competition.Leaders can be found and placed at every level of an organization. Teams feel better about their performance when they feel valued for their contribution.Share In The Economic Gains Of Your Organization.Sharing the wealth with everyone creates a vested interest for everyone to succeed. It's also a great avenue for accountability, and encourages people to innovate.Lead Individuals, Not Groups.Team leaders don't lead teams. They lead collections of individuals who together make up a team. Everyone has different strengths, weaknesses, and needs. A team is only effective if their needs are identified and acknowledged, then enhanced.Develop A Service Orientation Rather Than An Individual Achievement Mentality.If you're looking for individual pats-on-the-back rather than a team accomplishment, step back from leading teams. You will be very frustrated and the team members will feel used.My name is Dominick Borzomati with DWB Associates. We are Business Development Specialists and have been since 1993. We work with individuals committed to moving themselves and their businesses to the next level.At DWB what we do is ALL about YOU...Our programs focus 100% on YOU, they address YOUR needs, and concerns. They help YOU to clearly identify opportunities, enhance YOUR strengths, clarify YOUR market position and YOUR competitive capabilities and provide YOU with a clear and concise understanding as to where YOU are and where YOU need to go. Most importantly they provide YOU with a series a simple actionable steps that YOU can choose from that will enable YOU to move YOURSELF and YOUR business to the next level.
Keyword : Leadership, TeamBuilding, Organization, Skills, Practical
Know Your Competition And Their Product Inside Out.Don't limit your competition only to the ones you know. Keep an eye out for latent competitors too. Once you know what these people are doing, you can build a better mousetrap.Consistently Do Extraordinary Things.Spend more than 50% of your time leading yourself: your purpose, ethics, principles, motivation, and conduct. Create the circumstances of what you want to make happen, go before and show the way.Take A Look Periodically At Where You Are And Where You Want To Go.Vision is great for moving ahead, but you need to look at where you are before you continue forward. Regroup, readjust the direction of your sails, and then move on.Really Create An Atmosphere Of Teamwork.Pay more than lip service to the concept of teamwork. Gather everyone on your team as equals. Let the team set its own goals for success.Develop A Sense Of Authenticity."Do as I say, not as I do" does not apply to work groups anymore. To keep teams motivated and focused you need to have moral authority in order to gain the same from your people.Take Care Of Your Customers. Take Care Of Your Teammates.Tangible results will follow from truly caring for everyone involved in the process. Every person matters!Create More Leaders Than The Competition.Leaders can be found and placed at every level of an organization. Teams feel better about their performance when they feel valued for their contribution.Share In The Economic Gains Of Your Organization.Sharing the wealth with everyone creates a vested interest for everyone to succeed. It's also a great avenue for accountability, and encourages people to innovate.Lead Individuals, Not Groups.Team leaders don't lead teams. They lead collections of individuals who together make up a team. Everyone has different strengths, weaknesses, and needs. A team is only effective if their needs are identified and acknowledged, then enhanced.Develop A Service Orientation Rather Than An Individual Achievement Mentality.If you're looking for individual pats-on-the-back rather than a team accomplishment, step back from leading teams. You will be very frustrated and the team members will feel used.My name is Dominick Borzomati with DWB Associates. We are Business Development Specialists and have been since 1993. We work with individuals committed to moving themselves and their businesses to the next level.At DWB what we do is ALL about YOU...Our programs focus 100% on YOU, they address YOUR needs, and concerns. They help YOU to clearly identify opportunities, enhance YOUR strengths, clarify YOUR market position and YOUR competitive capabilities and provide YOU with a clear and concise understanding as to where YOU are and where YOU need to go. Most importantly they provide YOU with a series a simple actionable steps that YOU can choose from that will enable YOU to move YOURSELF and YOUR business to the next level.
Keyword : Leadership, TeamBuilding, Organization, Skills, Practical
The Business Calendar
Author : Fazli Sameer
THE NEW CALENDARWe have been following the Christian Gregorian Calendar for almost 2000+ years now and it sure is a non standard way of counting the days, months and years as it is based on the solar year which is defined by the time taken for the earth to make one complete revolution round the sun.Now, this calendar becomes klutzy because of the fact that the twelve months don't conform to an equal number of days and also the leap year factor of Feb 29 which is necessary every four years to keep it in synch with the solar year.Why is it necessary to be in synch with the seasons for a calendar whose basic purpose is to count time? Wouldn't it be convenient and useful if we had months of equal number of days?My simple and humble view is that we need to have a calendar, completely devoid of religion, seasons, and all such external elements, purely based on a standard format of days, weeks, months and years that conform to some equality.Eg; A day is comprised of 24 hours and thats fixed. A month needs to have a fixed number of days and weeks, and a year needs to have a fixed number of days, weeks and months.A Calendar having 13 months of 28 days each would give us a year of 364 days. Furthermore it would fix the number of weeks in each month to 4. If we start the year on a Sunday, eg Year 2006, then every month will begin on a Sunday. A week will continue to have its 7 days from Sunday to Saturday as before.This NEW year will now have 1.25 days less than the Gregorian Year. This means that the seasons will shift through the year, slowly but steadily, until the calendar returns to its original start season every 291.2 years. This time frame amnounts to almost ten generations of humanity assuming that a generation is born every 30 years, approximately.Now a year will have a fixed number of 364 days, within 13 months. Each month will have four fixed weeks startng and ending on the same day thus giving 28 fixed days.While it s easy to suggest and look at the feasibility of acceptance of such a proposal one has also to review what kind of impact such a change wll have on the life of the World.While clocks wll not be affected in terms of Hours, Minutes, Seconds & Degrees, they will still have to be adjusted to display the correct New Month and Year. This can have many ramifications in that almost all digital ekectronic equipment from hand held pocket calculators, to mobile phones, to Computer Hardware, Software to Microwave Ovens, Washing Machines, TV sets, Video, CDAudio & DVD recorders use the day and year feature within them for executing various user desired functions. In fact it would have been the ideal opportunity to have been able to execxute such a change during the Y2K year when all software and related functions had to be converted to conform to the new Millenium year format.In any case this will only be an once and for all exercise that wll be needed to be applied to all existing electronic digital devices. Future manurfactured equipment can easily adapt to the new system without much difficulty.By this we also gain much in terms of equality of the number of days within a month whch is useful because months are used for computing many financially related events in life, viz; rent, pay, payments, mortgages, etc etc.One good thing that will come out of it is that we will have a 13 month pay every year although we will also have to pay 13 months rent and mortgages for the same period.No doubt this change will certainly effect anniversaries and also marketing trends which usually compare the performance of products and services of specific months or quarters against previous years. Biut this can be overcome by still maimntaining the Gregorian Calendar side by side with the new one show9ing the corresponding dates, months and years. This is nothing unusual as it is already being done with the Islamic Hijri Calendar followed by the Muslims across the globe, the Buddhist, Hindu, Chinese and Jewish Calendars too. Of course the calendar will be cluttered with multiple dates on each square but that will settle with time and people will get used to reading it off the cuff with time.NEW Calendar
I have spent some time on MSExcel and was able to conjure up a possible NEW Calendar based on the 364 day year of 13 months, each containing 28 days.Started off with Jan 1 1900 taking it to be the first day of the first month of the year 1900 of the NEW Calendar Year and defined some date manipulation formulae to create a conversion of any date between Gregorian and the NEW Calendar thus coming up with a format for the new system that could be implemented at any time we choose since it originates from 1-1-1900 Gregorian and hence takes care of all dates since 1900.Based on the conversions I get the following eqivalents:-Aug 21 2005 G = 1 Day of the FIRST (1) Month of NEW Calendar Year 2006
Jan 1 2006 G = 22 Day of the FIFTH (5) Month of NEW Calendar Year 2006
Sep 17 2006 G = 1 Day of the FIRST (1) Month of NEW Calendar Year 2007
Jan 1 2007 G = 23 Day of FIFTH (5) Month of NEW Calendar Year 2007Today, Dec 25 2005 G = 15 Day of FIFTH (5) Month of NEW Calendar Year 2006G = GregorianInteresting stuff to ponder over.One good thing that comes out of the NEW Calendar is that we lose 1.25 Days for every single NEW Year since we were born. Not bad for age freaks, I guess?I have the spreadsheet available and can send it to anyone who is interested in researching it and bashing it up for better or for worse.
Keyword : Gregorian, Julian, Hijri, Calendar, Time, Day, Month, Year, Leap, Date, Business
THE NEW CALENDARWe have been following the Christian Gregorian Calendar for almost 2000+ years now and it sure is a non standard way of counting the days, months and years as it is based on the solar year which is defined by the time taken for the earth to make one complete revolution round the sun.Now, this calendar becomes klutzy because of the fact that the twelve months don't conform to an equal number of days and also the leap year factor of Feb 29 which is necessary every four years to keep it in synch with the solar year.Why is it necessary to be in synch with the seasons for a calendar whose basic purpose is to count time? Wouldn't it be convenient and useful if we had months of equal number of days?My simple and humble view is that we need to have a calendar, completely devoid of religion, seasons, and all such external elements, purely based on a standard format of days, weeks, months and years that conform to some equality.Eg; A day is comprised of 24 hours and thats fixed. A month needs to have a fixed number of days and weeks, and a year needs to have a fixed number of days, weeks and months.A Calendar having 13 months of 28 days each would give us a year of 364 days. Furthermore it would fix the number of weeks in each month to 4. If we start the year on a Sunday, eg Year 2006, then every month will begin on a Sunday. A week will continue to have its 7 days from Sunday to Saturday as before.This NEW year will now have 1.25 days less than the Gregorian Year. This means that the seasons will shift through the year, slowly but steadily, until the calendar returns to its original start season every 291.2 years. This time frame amnounts to almost ten generations of humanity assuming that a generation is born every 30 years, approximately.Now a year will have a fixed number of 364 days, within 13 months. Each month will have four fixed weeks startng and ending on the same day thus giving 28 fixed days.While it s easy to suggest and look at the feasibility of acceptance of such a proposal one has also to review what kind of impact such a change wll have on the life of the World.While clocks wll not be affected in terms of Hours, Minutes, Seconds & Degrees, they will still have to be adjusted to display the correct New Month and Year. This can have many ramifications in that almost all digital ekectronic equipment from hand held pocket calculators, to mobile phones, to Computer Hardware, Software to Microwave Ovens, Washing Machines, TV sets, Video, CDAudio & DVD recorders use the day and year feature within them for executing various user desired functions. In fact it would have been the ideal opportunity to have been able to execxute such a change during the Y2K year when all software and related functions had to be converted to conform to the new Millenium year format.In any case this will only be an once and for all exercise that wll be needed to be applied to all existing electronic digital devices. Future manurfactured equipment can easily adapt to the new system without much difficulty.By this we also gain much in terms of equality of the number of days within a month whch is useful because months are used for computing many financially related events in life, viz; rent, pay, payments, mortgages, etc etc.One good thing that will come out of it is that we will have a 13 month pay every year although we will also have to pay 13 months rent and mortgages for the same period.No doubt this change will certainly effect anniversaries and also marketing trends which usually compare the performance of products and services of specific months or quarters against previous years. Biut this can be overcome by still maimntaining the Gregorian Calendar side by side with the new one show9ing the corresponding dates, months and years. This is nothing unusual as it is already being done with the Islamic Hijri Calendar followed by the Muslims across the globe, the Buddhist, Hindu, Chinese and Jewish Calendars too. Of course the calendar will be cluttered with multiple dates on each square but that will settle with time and people will get used to reading it off the cuff with time.NEW Calendar
I have spent some time on MSExcel and was able to conjure up a possible NEW Calendar based on the 364 day year of 13 months, each containing 28 days.Started off with Jan 1 1900 taking it to be the first day of the first month of the year 1900 of the NEW Calendar Year and defined some date manipulation formulae to create a conversion of any date between Gregorian and the NEW Calendar thus coming up with a format for the new system that could be implemented at any time we choose since it originates from 1-1-1900 Gregorian and hence takes care of all dates since 1900.Based on the conversions I get the following eqivalents:-Aug 21 2005 G = 1 Day of the FIRST (1) Month of NEW Calendar Year 2006
Jan 1 2006 G = 22 Day of the FIFTH (5) Month of NEW Calendar Year 2006
Sep 17 2006 G = 1 Day of the FIRST (1) Month of NEW Calendar Year 2007
Jan 1 2007 G = 23 Day of FIFTH (5) Month of NEW Calendar Year 2007Today, Dec 25 2005 G = 15 Day of FIFTH (5) Month of NEW Calendar Year 2006G = GregorianInteresting stuff to ponder over.One good thing that comes out of the NEW Calendar is that we lose 1.25 Days for every single NEW Year since we were born. Not bad for age freaks, I guess?I have the spreadsheet available and can send it to anyone who is interested in researching it and bashing it up for better or for worse.
Keyword : Gregorian, Julian, Hijri, Calendar, Time, Day, Month, Year, Leap, Date, Business
About the Make-Buy-Outsource Question & Interfacing With Third Parties
Author : Hans Bool
The Make-Buy-Outsource question is in many aspects a very interesting one. First of all, there is an evolutional development around the topic. Under normal circumstances, companies will first experience the –- make -- decision, in a later stage -- buy -- and afterwards -- outsource.
Make-buy-outsource is about acquiring a system that needs to fulfill a specific task in the organization. Outsourcing is broader in the way that not only a system is involved but a whole operation, including other (human) resources.The MBO-topic is not limited to the larger companies. Any small business is more flexible when it can hand-over tasks to others. For sending out a mailing you can try to setup a template in outlook, but there are many parties on the market that provide more enhanced solutions. The advantage is that you are more flexible and that you do not have to worry about all those extra aspects. Like making backups and providing the right infrastructure. You do need to check out the service level agreement however.One step further is to hand over all the tasks to a third party. The mailing process is again a good example. You hand over the list (or you can add this list management task to the agreement) and they can execute the job.A disadvantage is that you are interfacing with a company outside your own. And it is at the level of the interfaces where the problems end:
The Mail-partner executed the task but a few addresses bounced. You have the same kind of list stored in your own environment and you should update that list to keep them synchronic. This can happen at either side.
The statistical reports you receive from the Mail-partner are sorted on their own key. Then you want not only a paper list but electronic versions to match them or import them into your own database (or data warehouse for larger organizations). Here the same matching occurs which is error prone. Even though solutions like XML have simplified these kinds off tasks, the vulnerability remains.
Integration at the front end. A client is calling and you need to access to systems. How do you solve this, swapping screens, or do you integrate client functionality and the front-end?
Every company is to a certain extent unique, but each company faces similar kind of issues according to their main characteristics and according to the situation they are in.If you are dealing with such a case, setting up the Service Level Agreement (SLA) is very important. A thorough study of all the required interfaces is a prerequisite in getting a sound SLA.© 2006 Hans BoolHans Bool is the founder of Astor White a traditional management consulting company that offers online management advice. Astor Online solves issues in hours what normally would take days.
You can apply for a free demo account
Keyword : Make, buy, outsource, make buy outsource, interface, third party
The Make-Buy-Outsource question is in many aspects a very interesting one. First of all, there is an evolutional development around the topic. Under normal circumstances, companies will first experience the –- make -- decision, in a later stage -- buy -- and afterwards -- outsource.
Make-buy-outsource is about acquiring a system that needs to fulfill a specific task in the organization. Outsourcing is broader in the way that not only a system is involved but a whole operation, including other (human) resources.The MBO-topic is not limited to the larger companies. Any small business is more flexible when it can hand-over tasks to others. For sending out a mailing you can try to setup a template in outlook, but there are many parties on the market that provide more enhanced solutions. The advantage is that you are more flexible and that you do not have to worry about all those extra aspects. Like making backups and providing the right infrastructure. You do need to check out the service level agreement however.One step further is to hand over all the tasks to a third party. The mailing process is again a good example. You hand over the list (or you can add this list management task to the agreement) and they can execute the job.A disadvantage is that you are interfacing with a company outside your own. And it is at the level of the interfaces where the problems end:
The Mail-partner executed the task but a few addresses bounced. You have the same kind of list stored in your own environment and you should update that list to keep them synchronic. This can happen at either side.
The statistical reports you receive from the Mail-partner are sorted on their own key. Then you want not only a paper list but electronic versions to match them or import them into your own database (or data warehouse for larger organizations). Here the same matching occurs which is error prone. Even though solutions like XML have simplified these kinds off tasks, the vulnerability remains.
Integration at the front end. A client is calling and you need to access to systems. How do you solve this, swapping screens, or do you integrate client functionality and the front-end?
Every company is to a certain extent unique, but each company faces similar kind of issues according to their main characteristics and according to the situation they are in.If you are dealing with such a case, setting up the Service Level Agreement (SLA) is very important. A thorough study of all the required interfaces is a prerequisite in getting a sound SLA.© 2006 Hans BoolHans Bool is the founder of Astor White a traditional management consulting company that offers online management advice. Astor Online solves issues in hours what normally would take days.
You can apply for a free demo account
Keyword : Make, buy, outsource, make buy outsource, interface, third party
Instilling Urgency In The People You Lead
Author : Brent Filson
It's one thing to lead people to accomplish tasks, but it is another altogether to lead them to accomplish tasks with a deep sense of urgency. Instilling urgency in people is an abiding challenge of all leaders. Yet few leaders I have encountered know how to do it consistently and systematically. Here are six things you must recognize to trigger and sustain urgency in the people you lead.1. Recognize the Leader's Fallacy. The Leader's Fallacy bedevil's most leaders. It is manifested when a leader mistakenly believes that the people will automatically reciprocate the motivation of the leader. The leader believes the people will be urgently motivated simply because h/she is a leader and is telling them to be motivated. The truth is, automatic reciprocity doesn't exist. Reciprocity must be earned.2. Recognize the People's Fallacy. Which is that the people mistakenly believe that urgency is negotiable. Urgency is not negotiable. If you want to get great results with the people, urgency is always an absolute necessity. Look, leadership isn't getting people to do what they want. Leadership is getting people to do what they might not want to do and be totally committed to doing it. If the people have the idea that they can take or leave urgency or can effect it gradually or at their leisure, they are wrong. If the leader thinks it's negotiable, then the leader too is wrong; and h/she, and the people, will not get the results they're capable of.3. Recognize that the people's lack of urgency is the leader's fault.
The existence of the People's Fallacy does not absolve the leader from being responsible for establishing urgency. Leaders do nothing more important than get results. A leader is not the measure of results, results are the measure of the leader. To get great results, leaders must without question have the people take urgent action. No excuses accepted.4. Recognize that urgency is their choice, not the leader's. But to say that the leader should "instill urgency" in the people misses the point. English syntax bungles the psychological truth of urgency. Urgency is not something the leader can instill and compel in others. Only the people can instill urgency in themselves. Urgency is their choice, not the leader's. The leader can only speak and act in such a way that the people make the choice to bring urgency into their world.You ask, "Can't urgency can be forced to happen through physical or psychological violence?" Of course, it can -- up to a point. However, there are two types of urgency felt by the people, one is the kind that is forced upon them, that they are coerced into, the other is the kind that they make the choice freely to adopt. In terms of getting great results, the latter is far more desirable. People who are coerced, who flinch from threats, are not as effective in getting results as people who make free choices.One need only look at the history of the 20th century to see the truth in this when totalitarian regimes the world over fell to democracies and their "citizen soldiers."5. Recognize that urgency comes from solutions. A key way for the leader to speak and act to trigger urgency is by bringing solutions to the problems of the people. All people everywhere have problems. Those problems are crying out for solutions. Leaders are most effective when offering solutions. People will not make the free choice to urgently be committed to the leader's cause unless and until they know that in doing so there are solving their own (not the leader's) problems.6. Recognize that urgency is best effected when the people take leadership to solve their problems. Leaders themselves shouldn't solve the people's problems. The people should solve their own problems. It's the teaching-people-how-to-fish-rather-than-giving-them-fish idea. But it takes that idea to a new, more important level. Instead of "teaching them to fish", it "teaches them to take leadership of fishing." The leader's role is to support them in their leadership. After all, the best way the people can solve their problems is not by "doing" those solutions but by taking leadership of the solutions.Instilling urgency in the people (i.e., having people make the choice to embrace urgency) presents one of the thorniest challenges any leader faces. In fact, to a great extent, the difference between leaders is the difference in the urgency they can get the people commit to. Live by these six determinants, and you'll go a long way in making that difference your defining difference as a leader.2006 © The Filson Leadership Group, Inc. All rights reserved.PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.comThe author of 23 books, Brent Filson's recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. – and for more than 21 years has been helping leaders of top companies worldwide get audacious results. Sign up for his free leadership e-zine and get a free white paper: "49 Ways To Turn Action Into Results," at http://www.actionleadership.com
Keyword : leadership skill, leadership skill training, leadership development, management, management skill, m
It's one thing to lead people to accomplish tasks, but it is another altogether to lead them to accomplish tasks with a deep sense of urgency. Instilling urgency in people is an abiding challenge of all leaders. Yet few leaders I have encountered know how to do it consistently and systematically. Here are six things you must recognize to trigger and sustain urgency in the people you lead.1. Recognize the Leader's Fallacy. The Leader's Fallacy bedevil's most leaders. It is manifested when a leader mistakenly believes that the people will automatically reciprocate the motivation of the leader. The leader believes the people will be urgently motivated simply because h/she is a leader and is telling them to be motivated. The truth is, automatic reciprocity doesn't exist. Reciprocity must be earned.2. Recognize the People's Fallacy. Which is that the people mistakenly believe that urgency is negotiable. Urgency is not negotiable. If you want to get great results with the people, urgency is always an absolute necessity. Look, leadership isn't getting people to do what they want. Leadership is getting people to do what they might not want to do and be totally committed to doing it. If the people have the idea that they can take or leave urgency or can effect it gradually or at their leisure, they are wrong. If the leader thinks it's negotiable, then the leader too is wrong; and h/she, and the people, will not get the results they're capable of.3. Recognize that the people's lack of urgency is the leader's fault.
The existence of the People's Fallacy does not absolve the leader from being responsible for establishing urgency. Leaders do nothing more important than get results. A leader is not the measure of results, results are the measure of the leader. To get great results, leaders must without question have the people take urgent action. No excuses accepted.4. Recognize that urgency is their choice, not the leader's. But to say that the leader should "instill urgency" in the people misses the point. English syntax bungles the psychological truth of urgency. Urgency is not something the leader can instill and compel in others. Only the people can instill urgency in themselves. Urgency is their choice, not the leader's. The leader can only speak and act in such a way that the people make the choice to bring urgency into their world.You ask, "Can't urgency can be forced to happen through physical or psychological violence?" Of course, it can -- up to a point. However, there are two types of urgency felt by the people, one is the kind that is forced upon them, that they are coerced into, the other is the kind that they make the choice freely to adopt. In terms of getting great results, the latter is far more desirable. People who are coerced, who flinch from threats, are not as effective in getting results as people who make free choices.One need only look at the history of the 20th century to see the truth in this when totalitarian regimes the world over fell to democracies and their "citizen soldiers."5. Recognize that urgency comes from solutions. A key way for the leader to speak and act to trigger urgency is by bringing solutions to the problems of the people. All people everywhere have problems. Those problems are crying out for solutions. Leaders are most effective when offering solutions. People will not make the free choice to urgently be committed to the leader's cause unless and until they know that in doing so there are solving their own (not the leader's) problems.6. Recognize that urgency is best effected when the people take leadership to solve their problems. Leaders themselves shouldn't solve the people's problems. The people should solve their own problems. It's the teaching-people-how-to-fish-rather-than-giving-them-fish idea. But it takes that idea to a new, more important level. Instead of "teaching them to fish", it "teaches them to take leadership of fishing." The leader's role is to support them in their leadership. After all, the best way the people can solve their problems is not by "doing" those solutions but by taking leadership of the solutions.Instilling urgency in the people (i.e., having people make the choice to embrace urgency) presents one of the thorniest challenges any leader faces. In fact, to a great extent, the difference between leaders is the difference in the urgency they can get the people commit to. Live by these six determinants, and you'll go a long way in making that difference your defining difference as a leader.2006 © The Filson Leadership Group, Inc. All rights reserved.PERMISSION TO REPUBLISH: This article may be republished in newsletters and on web sites provided attribution is provided to the author, and it appears with the included copyright, resource box and live web site link. Email notice of intent to publish is appreciated but not required: mail to: brent@actionleadership.comThe author of 23 books, Brent Filson's recent books are, THE LEADERSHIP TALK: THE GREATEST LEADERSHIP TOOL and 101 WAYS TO GIVE GREAT LEADERSHIP TALKS. He is founder and president of The Filson Leadership Group, Inc. – and for more than 21 years has been helping leaders of top companies worldwide get audacious results. Sign up for his free leadership e-zine and get a free white paper: "49 Ways To Turn Action Into Results," at http://www.actionleadership.com
Keyword : leadership skill, leadership skill training, leadership development, management, management skill, m
It's Your Move: The First Step to Accountability
Author : Kevin Eikenberry
Every place I go, if I'm in an organization long enough, I'll hear people lament about the lack of accountability. Specifically, I hear things like: "They just don't seem to care enough, I guess." "Those action items never get done – I don't know why we even identify them." "I have trouble getting people to be committed to achieving the things they are responsible for." "Everyone wants to blame someone else – it is never their responsibility."These comments come from every level, and they are referring to people both above them organizationally, as well as those that may work for them. In other words the concern is widespread and includes everyone.People are concerned because a lack of accountability is frustrating, but they also know that tremendous productivity and efficiencies can be gained when more people are accountable for completing their tasks, commitments and expectations.Accountability is an important thing.Unfortunately, inherent in most all of the comments above and in the many conversations I've had is that people think the accountability gap is about someone else. "They" aren't accountable. "They" need to improve. The focus is on fixing the behavior of others.While this might be true, this is the wrong place to put the focus, at least at first.Take a Look in the MirrorIf you want greater accountability around you, start by being more accountable yourself. Before you tune me out, I know what some of you are thinking…"I'm just a middle manager – it's not my responsibility.""I'm just a supervisor - I can't change it.""I'm nobody – it doesn't matter what I do."Maybe you are in one of these roles. Or maybe you are a senior leader, or the CEO. It doesn't matter what your role is or how long you have been in the organization. Let me say it again.If you want greater accountability around you, start by being more accountable yourself.If you want to engender and create greater accountability in those around you, you can start by being a good role model. You can be 100% accountable yourself.I'm reminded of what my father often told me: "When you point a finger towards someone else there are four times as many fingers pointing back at you."Being accountable is about figuring out how you can make things better. Other people's actions aren't in your control, and many events aren't in your control either, but your response to these situations and events is completely in your control. You can choose to be 100% accountable and responsible for your response.Some QuestionsWhile thinking about the challenges you face with accountability in your organization, ask yourself the following questions:• What is my role in this situation?• What am I doing (or not doing) to promote the situation as it currently exists?• What about this situation is in my control?• What am I thinking?• What are my beliefs?• What can I do to have an impact?• What can I do differently to change the result?Asking these questions takes courage, because it takes away your ability to blame others. Asking these questions may be a change of your habits. Asking these questions may be hard, because the answers may require work.Courageous and difficult, perhaps, but these are the questions of a 100% accountable person.Kevin Eikenberry is a leadership expert and the Chief Potential Officer of The Kevin Eikenberry Group (http://KevinEikenberry.com), a learning consulting company. To receive a free Special Report on leadership that includes resources, ideas, and advice go to http://www.kevineikenberry.com/leadership.asp or call us at (317) 387-1424 or 888.LEARNER.
Keyword : productivity, expectations, accountable, accountability, personal accountability
Every place I go, if I'm in an organization long enough, I'll hear people lament about the lack of accountability. Specifically, I hear things like: "They just don't seem to care enough, I guess." "Those action items never get done – I don't know why we even identify them." "I have trouble getting people to be committed to achieving the things they are responsible for." "Everyone wants to blame someone else – it is never their responsibility."These comments come from every level, and they are referring to people both above them organizationally, as well as those that may work for them. In other words the concern is widespread and includes everyone.People are concerned because a lack of accountability is frustrating, but they also know that tremendous productivity and efficiencies can be gained when more people are accountable for completing their tasks, commitments and expectations.Accountability is an important thing.Unfortunately, inherent in most all of the comments above and in the many conversations I've had is that people think the accountability gap is about someone else. "They" aren't accountable. "They" need to improve. The focus is on fixing the behavior of others.While this might be true, this is the wrong place to put the focus, at least at first.Take a Look in the MirrorIf you want greater accountability around you, start by being more accountable yourself. Before you tune me out, I know what some of you are thinking…"I'm just a middle manager – it's not my responsibility.""I'm just a supervisor - I can't change it.""I'm nobody – it doesn't matter what I do."Maybe you are in one of these roles. Or maybe you are a senior leader, or the CEO. It doesn't matter what your role is or how long you have been in the organization. Let me say it again.If you want greater accountability around you, start by being more accountable yourself.If you want to engender and create greater accountability in those around you, you can start by being a good role model. You can be 100% accountable yourself.I'm reminded of what my father often told me: "When you point a finger towards someone else there are four times as many fingers pointing back at you."Being accountable is about figuring out how you can make things better. Other people's actions aren't in your control, and many events aren't in your control either, but your response to these situations and events is completely in your control. You can choose to be 100% accountable and responsible for your response.Some QuestionsWhile thinking about the challenges you face with accountability in your organization, ask yourself the following questions:• What is my role in this situation?• What am I doing (or not doing) to promote the situation as it currently exists?• What about this situation is in my control?• What am I thinking?• What are my beliefs?• What can I do to have an impact?• What can I do differently to change the result?Asking these questions takes courage, because it takes away your ability to blame others. Asking these questions may be a change of your habits. Asking these questions may be hard, because the answers may require work.Courageous and difficult, perhaps, but these are the questions of a 100% accountable person.Kevin Eikenberry is a leadership expert and the Chief Potential Officer of The Kevin Eikenberry Group (http://KevinEikenberry.com), a learning consulting company. To receive a free Special Report on leadership that includes resources, ideas, and advice go to http://www.kevineikenberry.com/leadership.asp or call us at (317) 387-1424 or 888.LEARNER.
Keyword : productivity, expectations, accountable, accountability, personal accountability
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