hrmbusiness

The Fiscal Cliff. Put In Perspective.

2012-12-18T04:32:00.003-08:00

Help! We're all going over a Fiscal Cliff!

Let's cut through all of the bullshit surrounding the Fiscal Cliff, (capitalized because it's almost become a proper noun) that we're all supposed to fall off sometime soon. There's so much bullshit flying around, it's like the plains of Texas out there......

No matter what the newsreels and commentators say. This is rather like the Mayan prophecy; 'the world will end on December the 21st.' It may do for you for you if you made one too many faux pas at the office party. Other than that, It just ain't going to happen. Period! While Obama may drag out the settlement period, because it gives him more leverage to get extra taxes in, both he and Congress will have to agree on a settlement soon, before the lack of resolve begins to seriously jitter the markets and hurt the American economic recovery by throwing it back into recession.

What the commentators won't tell you is that most Americans will not be able to file their taxes if no agreement is reached because no one will know what they're supposed pay, and it'll take the IRS months time to sort that out. Even if America goes over this cliff, it'll be more a dangling in midair by a thread than a full blown catastrophe. It's all 'huff, puff and I'll blow your house down, stuff.' Both Obama and Congress have nowhere to go on this but to agree on the tax hike, spending cut numbers and growth strategies, or they're both going to get seriously burned, along wth every other economy.

It'll be interesting watching the blame game unfold, but ultimately, Mr Obama has to accept a lower taxation figure, than he's shooting for, and then get his guys in the Senate to accept it. There's some pretty tuff right wing republicans in Congress who are going to come out all guns blazing on the taxation, hikes, cuts and growth plans issues. Mr Obama is pretty weak on the latter two strategies. But, he needs to get with the program soon, or he'll have no growth program to view. Bluff's OK, to a point, but Congress knows that public sentiment about them can't get much lower than it is right now, so they can't really get more hurt than they are. If no agreement is reached, Mr Obama's going to be the one who ultimately takes the blame for the Fiscal Cliff, that's certainly not a legacy he'll want to live with. 'It's Congress, it's congress'. Ain't going to wash for too long, and, if he's not careful, he'll be seen to be 'fiddling while Rome burns.' Expect a settlement just before the extra taxes kick in, but don't expect it to end there. America's kicked this debt down the road for a decade. It's gotten use to living on credit, and no one really giving a hoot about the $16.5 trillion dollars. SO they'll be arguing about the debt ceiling, and limits on government spending for months to come. This is not a done deal come the deadline.

What do they need to settle all of this? What will happen if they don't?

Make no mistake, President Obama and the Congress can settle this Fiscal Cliff issue today. They could agree on tax hikes, spending cuts, and a ceiling cap on the debt. Then toddle off home for their holidays. However, Obama who wants as much of a tax hike as he can get right now, someones got to pay down this debt and I'm afraid it's going to be businesses and personal taxes that will take the brunt of the pain.

Mr Obama has to be very careful here. Having just been re-elected, he's standing on firm ground, but as tax hikes and cuts automatically kick in, on January 1st, if he's not careful, he's going to be hurting everyone, in particular his blue collar supporters. Brinkmanship is one thing, putting people out of work is a far more serious issue, and he can't survive that. Expect the foundations of a deal before January 1st, that will be low on growth stimulus, high on tax increases, low on Federal spending cuts, along with some sort of extension of the deficit requested. then expect them to return to the table about the debt ceiling, and more cuts, after that.

Make no mistake. There are some real economic warning signs here, and it's not just about the Fiscal Cliff. If President Obama fails to come up with any real stimulus package to accompany the tax hikes, and a lack of federal budget spending cuts, the US economy is going to bumble along the road like a three-wheeled cart. Everyone's going to get wise to the fact that America's just printing cash with little to back it up, and has little will to reign it in. America's big, it's strong, but it's getting dragged under by a debt that's becoming both unmanageable, and uncontrollable. Take growth out of the US economy, and that debt will then become the elephant in the room.

I lose the will to live reading the stats on the US national debt. They change so quickly, they're out of date the minute they hit the page. So, in order that mere mortals, like myself, can better understand it. I've reduced it all to baby talk, and included a few videos that explain it quite succinctly, while at the same time, I've tried to clear up a few misnomers and misconceptions about the American economy, where it's headed, and how it will recover. . Thanks goes to the many thousands that tune in here weekly.

How many trillions does the USA owe?

Trillions this, billions that. Hell, even the banks can't agree what a billion is. The British say a billion is a million millions while the Americans say that it's a thousand millions. However, to be fair to the British, the Bank of England, it has now accepted the 1000 millions = 1 billion equation, so we'll work with that. Then there's a trillion, that equals 1000 billions. After that comes, qaudrillions, sextillions, septillions, octillions, nonillions and decillions, but as we're not anywhere near owing those amounts yet, for the time being, we'll just forget them. America owes $16'5 trillion in debt, that increases by about $3.7 billions per day. Scary stuff?....Not quite. Stop worrying! No one else seems to be.

Yes, but it's government debt, so it won't affect us individually, will it?

I'm sorry to have to say this, but it does impact on all of our lives, no matter what class we're a part of. Some more than others, and it will do so for a very long time to come. Why? Because the money to settle the debt has to come from the populace, and not the money printing presses, that have already enlarged the debt to an unacceptable level. So you'd all better be prepared to make some fiscal changes of your own, because there's more pain to come. However, lets not get too carried away. This is going to be more a case of chipping away at the debt, than settling it in the shortest possible time-frame.

Also, austerity is proving not to work too well, so expect the brakes to be taken off that, and the likes of government inflationary control measures, as governments around the world begin to realize that austerity isn't kick starting anything, except civil unrest. Governments and central banks are going to have to spend, lend and pay down their debts over a longer period of time than they first envisaged. They need to get people back to work, and spending again, before frugality becomes the norm, and no one's spending anything at all.

Who not to put in charge.

This financial crisis has provided us with an abject lesson of what can go wrong when you put inept government officials in charge of the economy, who, then mess it up, by allowing far too much bank and credit deregulation, and, as if that wasn't enough, then leave the same people in charge, and expect them to provide solutions for a financial catastrophe, that they helped to cause.

Most of these guys are working well above their competency and pay-grade levels. You've most likely heard the term; 'up the creek without a paddle' . Well in management, and economic training terms, most politicians are; 'up the creek without a paddle, and the Canoe that goes with it'.

But don't despair! If you look hard enough. There's enough half decent eggs in there, somewhere, that do realise we have to agree off ways to begin to draw down the national debts, as well as prevent the US defaulting on any loan payments, so agreement will be reached on debt repayments, a fiscal ceiling cap, and a debt reduction strategy of sorts before or just after January the 1st 2013 deadline. But it won't be the final solution. In the word's of Arnold, in the terminator. 'they'll be back.' Wild horses wouldn't drag this lot back to their desks on the holidays, so expect some welcome agreements news in the days to come. Even if they're only soundbites toward an agreement. That should keep the markets happy, and see a rise in stocks early in the New Year.

America's hard to stop

Despite the meddling, and constant mess-ups of the Congress and the Senate. America always seems to find a way to motor ahead economy wise. The US economy seems to have a mind of its own. It's so geared up for capital growth, that no matter what you do to it, or mess it up, it still manages to bounce back. Although, this is getting harder in the face of other rising economies such as the BRICs (Brazil, Russia, India, China) who are stealing global market share.

America's akin to a grand old duchess, who's husband has just gambled away the family fortune. She always manages to keep her dignity, always manages to find something new to wear, to that all important ball, and while she's there, she always manages to outshine everyone in the room, with her wit and sheer will to survive at the top. Which is why she still takes pride of place at the head of the international table. She also has Britain at her back, who, much to the chagrin of many in Europe, still out punches her weight on the international stage, and still has a fearsome plethora of technical nous in all scientific and financial fields. Mr Romney may have tried to belittle that nation, but he couldn't come forest in a two-horse race and was doomed from the moment he ran for office, because he can't see a public opinion train coming at 50yards, so I don't hold out much hope for him as a future president. He made more faux pas than a tramp at a dinner party. He couldn't lead a dog down the road, let alone the Republican party.

On the surface, the debt is an easy fix, and by that I mean all of the constituent parts needed to resolve the issue are easily visible. However, as usual, party politics, and inept politicians, who seem more interested in getting themselves re-elected, are hampering progress toward any speedy resolution. Therefore, at the moment, the debt just lies there like elephant dung on the plains of the Masai Mara, waiting for some poor, very slow in coming, dung beetle to carry it off. It will eventually be reduced to an acceptable level, but not anytime soon. Not by this administration. For now, this is a lancing of the boil, not a full healing.

The other thing in favor of an early agreement on the debt is that, America can't just please itself what it does about its national debt. Like every other country on the planet, it has an innate fear of market reactions. If it's seen, or interpreted, that too little is being done, the markets will take a big tumble, and the devaluing of companies is not the name of the game right now. Not after the Fed has spent so much on QE trying to prop them up.

So, while politicians may huff and puff, and threaten to blow the fiscal house down, by defaulting, and allowing automatic cuts and taxes kick-in, which will spook the markets, they cannot, or they all sink with the rest of us. Politicians aren't too keen on becoming unemployed, because outside of politics, most of them are pretty unemployable. So no matter what they say, and no matter who comes up with a plan, they'll agree on reducing the debt, and go some way to putting a ceiling cap on it (not allow the debt to rise higher than an agreed amount, but only in principle, there's long fight ahead on that score) before or just after the Jan 1st deadline, but expect them to kick the real decisions on reduced spending and debt caps further down the road.

The solution to the national debt is not exactly quantum physics. The money has to be found from somewhere, and, in the main, that will be raised via increasing personal taxes, a reduction in federal spending, further taxes on goods and services, a reduction in the likes of the defense budget, and, hopefully, the promotion of capital growth that will help to take care of any shortfalls in revenues.

Presently, we've got this guy and that pontificating about how much the budget deficit should be reduced by, either now, or further down the road. Then, on the other side of the fence, we have Mr Bernanke and the rest of the Central Banks, throwing money about, via Quantitative Easing, like lottery winners on speed.

Quantitative Easing. What's that?

QE, as it's commonly known, is the way that the Central Banks print cash that they use to purchase asset bonds, that in turn, supposedly makes those bonds more expensive to buy, for the people they have bought them from, such as; pension schemes, insurers, and High St Banks, and, as a result, these institutions then flood the markets with their new found cash. More of this below. In spite of what the Federal Reserve says, it only has a few weapons in its armory that can help it to kick start the economy:

Monetary Policy. That's the policy controlled by the likes of the Federal reserve and the Central Banks, who control the money supply, either by expanding or contracting how much is in use at any one time. At the moment. Governments around the world are promoting an expansionary policy (increasing the money supply) which is a nice way of saying they're printing cash. Then there's fiscal policy, that is controlled by Governments, that's associated with taxes, government spending, and associated borrowing. So in effect, governments control the Fiscal Debt, and the Fed and central banks control the supply of money into the markets at large. However, this independence has gotten blared of late, as governments intervene more and more into what the central banks do, and that's dangerous. The fed then, only has a few ways in which it can aid the economy ;-)

1) Reducing interest rates

2) sell bonds and re-lend the cash (increase the money supply)

3) buy government held Asset bonds, and loan out that cash. QE (increase the money supply)

4) remove inflationary controls, and let it rise, without increasing interest rates to control it.

QE, firstly, they print the money, actually it's computerized now, so they ain't doing too much printing anymore. Then, the with this newly printed cash, they purchase bonds from the likes of pension funds, insurance companies, and High St Banks, who have previously purchased them, indirectly, from the government, which, in turn, pushes up the purchase price of these bonds, which means that they become too expensive to buy, so all of these institutions, and others, who now have plenty of new cash on their reflated balance sheets, that they need to put to work. Supposedly, they then go out and lend/invest their newly gained wealth in and to businesses, at low rates of interest, via the stock market or bond schemes, or lending, that in turn, supposedly, expands these businesses, who increase their hiring, which in turn reduces unemployment, and thus reflates, and energizes the economy. Then later, supposedly, the banks sells the purchased asset bonds, and destroys the cash that they printed to buy them.

Unfortunately, it's not really working this way, because the banks are very reluctant to lend to anyone without them holding a significant amount of collateral to back the loan application. So instead, the banks mostly take the cash from the bond sales, and keep it on deposit , at a higher rate of interest, with the very people they loaned it from, namely, the Central Banks. Nice work if you can get it. ;-)...........As a result, it isn't finding its way into the economy as it should be. But, it's not all been done in vain, because, to a degree, QE has had a stabilizing effect on the markets, and will continue to do so as long as it's used. Which is likely to be for quite a while yet, as there ain't too many growth policies being put forward right now.

How do global finances work?

What the hell's it all about? Take a look at the video below, and then we'll take a look at how to manage debt out of the system, and by that, I mean manage. Which is a far cry from what's happening at the moment.

Pretty Scary stuff isn't it? Don't worry, it's dire, but it's not that dire. Whether you like it or not, we now all owe a lot of money, that we haven't had, but we'll forget about that part of the equation for now.

I've heard so much about the Fiscal debt cliff of late, that I'm now beginning to look over every rocky outcrop I walk by, just to see if that's it. It's real name is of course is the budget deficit. That, if it's not controlled, mounts up over time. The deficit is the difference between income and expenditure. You owe a percentage of debt against GDP (Gross Domestic Product). The amount America, and others, owe against what they have coming into their treasuries. Net income, against net spend is calculated, what's left, is the deficit. That, in a perfect world, should be a surplus. At the moment, many countries are borrowing simply because they can't cover their day to day spending without do so. The USA has the dubious title of being the world's largest debtor. Not to GDP, that's Japan, with Greece not far behind, but nevertheless, that's a poor title to hold for the world's leading industrialized power.

The video below gives a clear example of why the US deficit continues to occur. It ain't brain surgery! The US is spending more than it earns. The result is a pretty scary deficit, that increase year on year and now stands at $16.5 trillion dollars. In with that figure is America's defense budget, that is higher than China, Russia, and Germany's defence spending put together. America has to decide if it still wants to police the world, and in doing so what it's getting in return.

America, land of the free, and debt ridden

Here's a few more startling facts about the US national debt. I ain't going to bore you to death with all of the numbers, except to say that the debt rises daily by about $3.7 Billion. Scary!.... The deficit rose to $172 billion dollars last November, up from about $120 billion in October. Even scarier!.... The US treasury also indicated that the deficit in October was 25% higher than at the same time last year.

Shh!..... I'll point this out quietly, so that you don't get lulled into a false sense of security, when they finaly agree on the fiscal debt contols.

'Any cuts that the congress agrees upon will be meaningless in terms of drawing down the debt.' Yes, they'll shore up the markets, which is what quantitative easing does, but that's about it. Nothing will be removed from the debt. Nothing! '

Should we be scared? No, not at all. It's going to be this way for so long that the markets seem to be immune to it. In fact, should anything go wrong, there are two very good contingency plans already in place to take care of any more shortfalls or further increases in interest rate payments of the debt. The initiatives go under the name of; a) More borrowing. And b) Borrowing more.

As you can see, it's effectively two strategies rolled into one. which therefore saves quite a lot of time when trying to move from one strategy to the other, and, because time's money, you save there too......;-)

Don't shout this out too loudly either. The world's already gone over the Fiscal Cliff, so unless it picks itself up, and throws itself off the same cliff again, there's no more falling to be done. Many Countries central banks are running on empty, they're printing money they don't have, but no one, and I mean no one, wants to default on their debts. Not when they can keep borrowing into infinity. Which is what most are now doing.

Understand, many of the countries borrowing in the likes of the EU, and Japan, have no hope of ever paying it back. None! They'll be restructuring their debts into infinity. Back in March, Greece restructured its PSI (private sector involvement) loans of about Euro 152 billion, that it can never hope to payback, and on top of that, it's been back to the ECB, to borrow more, twice, to borrow more, since then. It should have gone belly-up years ago. But it just keeps borrowing, along with the likes of Ireland, Poland, Spain, Portugal, Japan, and, for good measureI'll throw in Italy and France too. They say the likes of Greece is re-structuring it's debt and colecting taxes and now you find out that top officials have been caught filtering their salries through offshore accounts so as to minimise thier taxes. The whole place is corrupt, so what chance do you have of funding that lot out of their plight.

Then there's Italy, no one has the faintest idea of the size of Italy's black, tax-less economy, except to say, it's probably not far behind its real one. Spain has a massive one too. I recently took 2 taxis from two different airports in Spain . None of the drivers put their meters on. People in restaurants asked me if I'd like to pay in cash, for a discount, and frankly, if their employment figures where anything like as bad as they claim, there'd be a dam sight more civil unrest than there is now. Work cash in hand, and draw government dole, seems to be the order of the day there. Take away France's over generous agricultural subsidies, they get from the EU, and they'd be rioting in the streets too. France's President Francois Hollande, who's spent all of his working life as a councilor/political administrator, and as such, he has about as much business acumen, and knowledge about growth stimulus packages as Mother Teresa. God rest her soul.

Gone too are the good old days when the likes of Argentina just said; 'to hell with all of our creditors, we can't pay any more interest on our debts, so we're defaulting on all of them, and starting over again. You'll all have to wait until we're good and ready to pay you, and that's that.' Indeed, many are still waiting to be paid, long after Argentina's last financial crisis, which I lived through whilst on assignment there. A lovely place it is too.

Any budget deficit cuts that congress agrees upon in the coming months will have the same impact on the national debt as I would on the Moon's surface, if I were to throw a pebble at it. Nothing, Nada, Zilch. It's not just the US that has this problem. Europe's the same too.

The likes of Spain's GDP, and bank capital asset figures are so corrupted that no one really knows how much they owe. They'll be back to the ECB with their begging bowl just now, and expect even more selling of bonds they cannot back up. Giving, them, Greece and Portugal hand-outs, is like feeding a donkey strawberries. They'll just keep coming back for more until all of the strawberries have gone. They all should have defaulted on their debts long ago. Ireland's not far behind, but at least you can believe Ireland's figures, so at least you know; what they say they owe, is what they actually owe.

Anyway, not to worry, they're all safe, Germany can't afford to allow the split-up of Europe because it couldn't compete were it to return to the D Mark, that would rise well beyond it's worth and thus make Germany very un-competitive. So, for now, until the German populace wakes up to the fact that they're having the pockets, pensions and family silver picked on a daily basis, and the fact that they'll be going into recession. They'll merrily keep sanctioning the lending to countries within Europe, that are about has productive, competitive and deregulated as a Marxist commune. Hello!...............This is all about restructuring, and seriously dumbing down the welfare systems too.

How big are the numbers of the US Debt? Any perspectives?

In 2012 $7,6 trillion dollars worth of debt will have to be rolled over by the BRIC nations, Brazil, Russia, India, and China. This figure does not include any new borrowings, that will occur. Don't be too alarmed, they ain't going to call in those debts any time soon. They'd go bust too if America, Japan and Europe defaulted on their debts.

How much is a trillion dollars?

a) If you spend 1 dollar per second from now on, you wouldn't reach a trillion for 32,500 years

b) If you'd spent $1,000,000 (that's 1 million dollars) a day since the birth of Christ, you wouldn't have spent a trillion dollars yet .

c) The theory goes, the Big Bang, the supposed creation of the world. began 13 billion 600 million years ago, and that isn't anywhere close to a trillion, and the US owes 16 of those.

So, as you can see, there isn't much chance of America reducing it's current national debt by too much anytime soon. It's rather like the old adage; if someone owes you $5,000 and defaults, you foreclose on the loan. If someone owes you £5,000,000 you keep renegotiating their debt terms.

How quick is it rising? Well take a look at the Federal Debt Clock, via this link, http://www.usdebtclock.org/ and you'll see it in real time.

Tariffs and more Tariffs. That's the answer. No it's not!

There's a bit of a misnomer that exists that points to America pulling out of this economic malaise and rising again, back to the levels of its former glory days of high growth, and full employment. While it's a power house, still the hub of business, and still the world's number one trading nation. It's about as much chance of seeing full employment again, as I have of flying to Planet Mars tomorrow morning, and returning in time for lunch. Certainly not under the present regime, and certainly not unless it drastically changes its ways. It's currently competing on a very large un-level playing field with the likes of China, and the rest of the BRICS, and emerging Asian economies. It's tariff'd to death overseas, and its goods are limited in the amounts, and categories, that can be exported into the likes of China India, and the rest of Asia. There's far too big of an imbalance that has to be fixed in the upcoming talks between President Obama and China's new Vice Premier Wang Qishan, or it'll be doom and gloom for the markets for sometime to come. I think you'll see some compromises, and a slight increase in the value of an undervalued Renmimbi. Otherwise, calls for tariffs will grow louder and louder, and China can't afford that right now, as it looks toward changing its economy from export to homegrown.

The US thinks it benefits massively from overseas trade, but in truth it's outgunned by many countries that it trades with. Unless an American business takes a local partner, in the likes of China, Asia, and the the Middle East, and foots the bill to build a plant there, and employs local labor, it's tariff'd to death on its restricted imports, and as a consequence, it has absolutely no chance of competing with homegrown goods.

As a large part of Asia becomes a union in 2014, it can only get worse for the US. Asian countries are forming ever closer ties to increase trade between themselves, not the US, and Europe. It may be part of APEC (Asian Pacific Economic Cooperation) but I'm afraid it's still struggling to remove the tariff inequalities it suffers. It's more a case of thanks for the lessons in business know how, and for your investments, and protection, America. Please close the door on your way out. Goodbye and good riddance. America needs to play its hand now if it wants to export more. Thailand has become the Detroit of the East, and a 300bht per hour, per worker, minimum wage, which equates to about $8.50 per hour, as opposed to $30 per hour for a car worker in the US, that ain't going to change anytime soon.

BRICS are trading with BRICs, and looking toward Asia for increased trade. Asians are looking to trade with Asians. Europeans,( except Britain, who will always be allied with the US, and are looking to trade with anyone) are looking to trade with Europeans, and sell their wines and cars into Asia, and the US. Not the other way around.

The level of corruption in the BRIC countries is frightening. You're never going to win against that background unless you drive some very hard bargains. Russia is turning in on itself, and trading, and aligning itself more and more with China. Russians don't even require a Visa to enter China, Work that one out! Funnily enough, China boxes a little bit cleverer than Russia, who simply plunders its resources, and devastates the Siberia forests into the bargain, without a care for the environment or what happens if a commodoity slow down occurs. If they carry on using that tack, they'll reap what they sow, sooner rather than later. On the whole Russian businesses are very unproductive. They're living on what they can plunder at the moment, and cannot compete an any other fronts.

It's not hard to see what's on the horizon for Uncle Sam. It's as plain as the nose on your face. America needs to totally rethink it's trade and business models. It has a massive home market that, in many instances, it's neglected and it needs to return to. It's outsourced far too many of its companies overseas that has left a skills gap. You may be able to fabricate a radiator in China much cheaper than the US, but interms of it's build quality and innovative features you'll be losing out, and spending more in the long run.

America also needs to flex its muscles while it can. Everyone talks about free trade, but the only place free trade exists, is in the US, and to a degree Britain, that is still open for business. China would be no where without the financial know how in Hong Kong, that the British built, and still maintain a large financial presence there, banking and financial acumen wise.

Time for a change of tack?

Now that we've ascertained that no one will be calling in their debts anytime soon, and that everyone would rather extend their debts than default on them, in spite of how Fitch, Standard and Poors, and Moodys rate each country's credit rating. Or the fact that, for every dollar borrowed, 41 cents of it goes interest repayments, and, despite the fact that the interest paid on the Chinese debt alone, more than covers China's military expenditure. A free miltary, care of the US debt interest repayments. Nice work if you can get it. Well done China. Now that's how to fund your military.

The US is not going to stop borrowing anytime soon, it can't, and, as almost 50% of American dollars that are printed, are held on deposit by different countries outside of the US, and the fact that Oil's priced in dollars, and that it's the world's preferred currency. It not going to collapse, or be devalued by too much anytime soon. It'll lose some of its value, but that can only be good for the US. However, it's going to have to drive down the deficit soon, and that entails instigating austerity measures, that will have an impact upon growth. By how much, is dependent upon how deep they bite.

China's funding America's national debt, and exporting everything it makes into the US. No it's not!

There's a misconception that China's funding Americas national debt, and that America is awash with Chinese goods. They actual fund about 9.5% of it, nearly $10 in every $100 owed. Some estimates go as low as 7.5%. Yes, it's becoming the US's biggest creditor, but in terms of the size of America's debt, it hasn't really got a foothold yet.

The national US household consumption of Chinese goods, bearing the label; Made in China, only amounted to 2.7% in 2011. Add in trades goods, and that figure only rises to about 3.1%. Chinese imports make up only a small part of the American consumer economy. However, an artificially low pegged Renmimbi makes it harder for the US to compete with China, when selling similar goods, both in China and abroad. Also, the restrictions on US technology sales to China, is really just a Chinese ploy to protect its own market while it plays catch-up. That needs to change soon, because there's a massive US technological trade income going begging, if they're allowed to go after it.

You may think that the above figures are incorrect, because everything you seem to lay your hands on in the likes of Walmart and Costco seems to have a made in China label on it. However, as Walmart's turnover equated to about $422 billion in 2011. These sales look like a pimple on a cow's backside when you're looking at a US GDP revenue of about $15.1 trillion dollars and rising.

The US really is, wait for it, it's Geek Speak, which I hate, but I am going to use the term anyway,' 'Too Big to Fail.' There, I said it. I promise not to use it again, not for a while at any rate. It belongs in the bin with the other nonsense management Geek Speak; giving 110%. thinking outside of the box, singing from the same hymn sheet, going that extra mile, synergy. ;-) read my blog; Plain speaking really does get you places. ;-)

Contrary to popular belief. Americans do not spend much of their income on bric a brac bought at Walmart and Costco. They spend it on; food, energy, insurance, mortgages, health, cars, pensions, education and taxes. Therefore, it's not hard to begin to see where the government can and will want to begin to make an impact on the national debt. Your old friend, Increased taxes. Be careful what you wish for. Increased taxes leads to less income, which leads to less spending, which leads to less employment, which leads to less coffers going into the treasury. It's a catch 22. You take a chance either way. Slash and burn taxes, and hope that everyone spends more, which in turn leads to more tax income, or, bolster the economy with QE, raise taxes slightly, keep borrowing, forward cap the debt ceiling, and hope that growth takes care of the rest, which is exactly what Mr Obama and the Fed will do.

Managing out the debt.

Hey! There's that word again. Managing! Yes, this is a management issue, and you know what? There ain't too many people in Congress, the White House, or the Federal reserve that have had too much experience managing anything at all, let alone a $16 trillion debt. Let's pretend that they've all learned their lessons, and all now understand what a derivative is. They don't, neither do most banks, but we'll pretend that they do. If most Americans spend the bulk of their incomes on the aforementioned living expenses, and not on consumer goods. Then the only way America is going to reduce this fiscal debt is by;

a) Increased taxation, that it will happen, no matter what Congress says.

b) Increased exports, which may occur if they can keep the dollar low enough through more QE, which will happen. Plus gain much more preferential trade agreements with the likes of China in the upcoming talks, and with the rest of Asia and the BRIC nations later.

c) increased consumer and business spending, that produces more tax revenue. That may not happen if the government raises taxes by too much.

The solution is?

Yes you've guessed it, a mixture of borrowing, increased taxation, to offset the borrowing, a reduction of the federal budgets, not by too much or too quickly, because that'll increase the unemployment rate faster than the private sector can create jobs for the people you've laid off. Reduce defense spending, but again not by too much or you'll have the same scenario in terms of unemployment. The rest, you kick down the road hoping you can take care of it when it appears again, which it will. But who cares? Just kick down the road again.

The Conclusion

We've now ascertained that America's fiscal debt ain't reducing by too much anytime soon. Neither is it's borrowings. There's no fiscal cliff to fall over, because America fell went over it a long time ago.

America's not going to go bust, because there's just too much at stake for everyone else. Besides, on paper, it's already bust. In fact, were it a patient, it would have been deemed as being on life support a time long ago.

However, look on the brightside. America's a very mighty atom in an ocen of minutiae. If the good ship America sinks, we all sink with it. No matter how much we have in the bank. It collapsed in 1929, but back then, the markets, banks, and economies were much less intertwined or interdependent than they are now.

So cheer up! Forget the doomsday scenario of a collapsing dollar followed by hyper inflation and the $1000 loaf of bread. That ain't even happening in Greece, and that country should have been pronounced dead a long time ago.

We're all safe for now. Central Banks will keep kicking the fiscal debt cans down the road, while chipping away at their debts. Mr Droghi will keep coming out with his tripe that everything's fine, and priniting even more money. The EU ministers will keep holding meetings about having more meetings. America's economy will continue to grow, even if it's not at the pace it use to.

The markets will rise as more money comes back into the world economies. Europe may have to finally get its act together, because Germany's running out of cash, and options to tackle the European fiscal debt in a proper manner, by at last insisting on proper restructuring and reforms. You can't open a business in Greece for about 14 months, the bureaucracy is so bad, or Italy. Then there's Spain, you can't even buy an aspirin outside of a pharmacy, because they're protected against competition. It's totally ludicrous. There's no such thing as free trade in Europe, it's a myth.

Then you have Brussels. It's the only institution in the world that asks for an increase in its budget when everyone else is having to institute austerity measures. No one knows what it does, it's never had a budget signed or audited. There's no need for receipts when submitting expenses, and most of its projects are totally uncontrolled, and whimsical at best. Its like a socialist commune, being fed money, to do with it as it pleases. It's about as productive as a mudslide.

Finally, as my dear old mum use to say. 'There's only so much bad news a person can take before they start making it up for themselves.' So, on that note. Growth will continue in spite of how much Mr Obama and Congress try to hamper it. China and Asia will increase their growth next year, there will be no hard landing in China, expect growth there to be about 8%, that will have a positive affect somewhere in the US economy, particularly if the US can make some real headway on drafting up more favorable trade agreements with Asia. So, it's not all doom and gloom. No matter what happens, We'll still all bump on down the road. Just make sure you keep your tin-hat handy, in case the Mayans where a few weeks out with the prophecy.

Good hunting ;-)

James Adams

___________________________________________

About the Author

James Adams is the Director of Operations for Proguide a major worldwide management consultancy and productivity software company located in the USA, Argentina, and the UK. Overseeing projects in all regions worldwide. He has (and in some cases still is) consulted for the likes Coca Cola, ASDA Walmart, British Rail, Scot Rail, LUT, First Engineering Peterhouse, B.A, Aerolineas, Metrovias Rail, CLIBA, Chrysler, The American Red Cross, Seat, HMS, Taco Bell, Rio Tinto, British Steel, Cadbury, to name but a few, which in itself is a diverse consulting platform that affords one a varied intellectual management knowledge base from which to draw upon when instigating varying methods of management strategies in order to help clients achieve their goals. Know more about him here.

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Plain Speaking Really Does Get You Noticed.

2012-12-12T16:50:00.000-08:00

What on earth are you trying to say?

Many of us been there, sat in some achieve nothing meeting, listening to some line manager drivel on about his optimisation, maximisation, strategisation, formalisation, bastardisation plan, that is about as clear as the dead sea, and, in planning terms, is about as useful as an ashtray on a motorbike.

For some unknown reason, we all have to think outside of the box, that we're never likely to be in (whatever happened to lateral thinking?). Most of us are not going that extra mile, on a journey we're never likely to take. It also appears that we're not all singing from the same hymn sheet, and to cap it off, we've all failed to grasp the win win situation, that, at the end of the day, is staring us in the face, that most of us can't see it.

We should all touch base, not that anyone has the slightest idea where that is, and while we're there, we can always drill down the numbers, using the drill down interface charts.

I was recently startled, or should I say awakened, during a laborious meeting, when a middle-manager actually said; 'ask not, what this company can do for you, but rather, what you can do for this company. JFK would be pleased.

I'm busily checking our progress report, because someones just mentioned the adverse effect that someones intended up-scaling will have on their intended downsizing proposal.

I'm just about losing the will to live, when up pops someone from IT to mention that he's not been pinged by anyone about the extra website requirements requested at the last meeting, and at the moment the video web link looks like an angry salad. It also appears that someones dept. keeps creeping offline, when I had no idea it was actually online. What line? Who's line? What's my line?

'We're Downsizing.' 'Yea, well we're up-scaling your downsizing, and raising you.'

In another meeting, I'm flabbergasted when it's mentioned that there's not enough team players who are giving 110%. That's probably my fault because I'd assumed that the maximum anyone can give is 100%. I then realise that, at the end of the day, not enough of us are moving forwards, and far too many appear to be shooting from the hip, which is probably why we're not achieving the proper synergy. That, and the fact that not enough of the team players are being incentivized to go that extra mile. I then look around in terror, because someone's just suggested that we had better to take the bull by the horns.

Had I not spent my working life growing up around this speak, and were to attend many management meetings of today without having any prior knowledge of it, I'd feel like I'd just landed on a different planet. This nouveau management jargon spreads quicker than the black death in a 16th century European village. It seems you aren't one of the team unless you speak and espouse it. However, I can tell you, you're not long on my team if you keep doing so.

The IT world is awash with Geek Speak. These guys are so far out, they're in danger of coming back in. It's fine to use the likes of HTTP, that stands for hypertext transfer protocol, as nothing gets lost in the translation, because the majority of us have no idea what that is, But please! keep it at that.

'The IT world is insane,' says Scott Williams, founder of digital strategist Uloo. 'Give it two years and some IT idiot will be calling themselves a "social engagement platform". Here are a few more terms to contend with oT wise;

Cobweb; a website that never changes.
Crapplet; a badly written Java applet, I just wasted 20mins downloading a Crapplet.
Egosurphing; scanning the web for one's own name.
Flight risk; an employee suspected of planning to leave the company.
Hamster wheel; never ending meetings. I actually like this one.

The list is endless, and in some cases quite amusing, but as soon as it enters the meeting rooms, it's a linguistic disaster just waiting to catch on.

Lets go daddio! What's happening bro?

According to forensic linguist Robert Leonard, who studied New York buzzwords for over 30 years, 'much of it is down to peoples desire to be seen as being part of the right group, language not only transmits facts it also identifies where you're from. Buzzwords and slang are cousins that signify which group your with.'

Don't use management speak to mask your lack of knowledge

Rattling off management speak in order to cover for your own lack of knowledge of a subject will be met with disdain by those who are knowledgeable about it. You'll be found out in a heart beat, and the damage done can be greater than you think. You'll be the dork no one really acknowledges at meetings for fear of being associated with you. You'll be the one passed over when it comes time for promotion, as it'll be presumed that you do not command the respect of your peers. You'll be the one who people mimic in the corridors. 'Here comes Nigel, better make sure you're one step ahead of the competition by giving 110%, or you'll find yourself downsized when he starts shooting from the hip.'

As soon as someone steps up in front of me espousing management speak, as many do, it immediately downgrades my opinion of them. Many seem to assume that because I'm an Analyst in the consulting world, I somehow want to hear that nonsense. Show me a plain speaker who can outline his or her ideas succinctly, as well as reduce all concepts to baby talk, and I'll show you a leader.

Martha Brochenbrough, what a nice sounding name that is, sorry I digress, I'd better get back on track, author of Things That Make Us Sic, takes on Hollywood, Madison Avenue, home of the Ad Men and women, and the White-House, when she says; 'I thinking of, 'Too big to fail,' a phrase used to weasel acceptance for all sorts of otherwise ridiculous behaviour by well dressed pirates of the finance industry. Or downsizing, people are losing their jobs, yet it all sounds so efficient and sensible doesn't it? If your going to fire someone, just say it like it is.'

It should come as no surprise that the knives are out for the 'low hanging fruit.' Many plain speaking websites are fighting a battle against the Buzzword world, and many boardrooms are waking up to the fact that it does them no favours at all when it comes to looking in any way like a professional outfit.

According to a recent survey conducted by Adzuna, half of the jobs posted recently used overused terms like; passion and motivation. Many companies went as far as to request ninjas and gurus, and even a Jedi. Fast food chain Nandos, seemingly, only employs people of legendary calibre. Which is just what's needed when you're asking someone to cook chicken and chips all day.

The fact of the matter is, plain speakers are the ones who prosper in both the board room, and the company. A team will follow, and better respond to someone who says it like it is, and can transmit their goals, and ideas, in a succinct and easily understandable manner. Sure, we want you to achieve our goals, sure, we want you to agree our targets, and meet the same, in return, we understand that we need to clearly state those targets, goals, and strategies in a succinct and unambiguous manner. The review structure has to be the same. Plan, Do, Review, all must be conducted in easily understandable language.

Good hunting. Don't forget to give 110%, or, at the end of the day, if someone thinks that it's going to be a win win situation, and decides to shoot from the hip. You may be identified as suitable downsize material.

Good hunting

James Adams

About the Author

James Adams is the Director of Operations for Proguide a major worldwide management consultancy and productivity software company located in the USA, Argentina, and the UK. Overseeing projects in all regions worldwide. He has (and in some cases still is) consulted for the likes Coca Cola, ASDA Walmart, British Rail, Scot Rail, LUT, First Engineering Peterhouse, B.A, Aerolineas, Metrovias Rail, CLIBA, Chrysler, The American Red Cross, Seat, HMS, Taco Bell, Rio Tinto, British Steel, Cadbury, to name but a few. That, in itself, is a diverse consulting platform that affords one a varied intellectual management knowledge base, from which to draw upon, when instigating varying methods of management strategies, in order to help clients achieve their goals. Know more about him here.

WHAT'S NEXT? Get your updates by emailor via RSS.Follow us on Twitteror like us on Facebook. Visit ourFREE Business Resourcespage.

Roles and Responsibilities of HRMs

2012-10-17T18:24:00.000-07:00

Quite a few of our corporate clients HRMs, at some stage in their careers, have worked for an SME. (Small to Medium Enterprise) My personal feeling is that most corporate HRMs should, at some time, take a sabbatical at an SME,, even if it's only for a matter of weeks, as it usually turns out to be very worthwhile exercise. In that, it helps them better understand how SME HRMs cope without having the benefits of having corporate tools and resources at their finger tips.

Some HRMs arrive in the SME arena with misconceptions of how they work, but soon learn that they're essentially the same, except they're a lot more hands-on (which is not always a bad thing) when it comes to the likes of training and development, and advising managers on what they can and can't do in a less rigid, less controlled, less legislated, work place.

Many at corporate level assume that SME's function like some sort of welfare office, that doesn't have too much involvement in the likes of strategic planning, development and production. Nothing could be further from the truth. I've always felt that running an SME HR dept. affords one an opportunity to hone one's skills in areas such as; guidance, counseling, hiring, organisational modelling and psychology, team-building, skills assessment and development, that are not always as detailed or critical in larger companies.

All too often, corporate level HR depts. have become far too secular in their functions that are tied together by weekly or monthly reviews. because of this, some HR depts. have lost their identity, becoming just another departmental name on a corporate door. Sadly, in many instances, the higher up the corporate HR ladder they go, HRMs become more detached from the work-force they're supposed to serve. Who, as a result of this isolation, don't then really understand what the HRM and his staff's true role is. Yes, they all understand that HR has something to do with training, development, benefits, problems, retirement, assessments, discipline, and the like. But it's more of a blanket knowledge based understanding, as opposed to fully understanding where HR fits into the scheme of things, and what its true role is in promoting a beneficial productive corporate culture.

Of course, there are many different roles and responsibilities that are performed by the HR department, that, dependent upon the size of the organization, can change from company to company. However, the core functions remain the same. Namely; HR is there to take charge of, and assist with;

a) recruitment and discipline

b) performance appraisal,

c) training and development

d) employee welfare and motivation

e) employee complaints procedures

f) labor management relations

g) change implemention and monitoring

h) Task analysis, skills assessments

I) Salary determinations

J) Manpower planning

K) Assessing worker production levels and rewards

l) Manpower planning

m) Organisational modelling

In short, it's all about getting people to do the right things, in the right ways, for the right rewards, and making sure that they have the necessary skills levels to ensure a company's continued success.

In my opinion, many HR depts. have lost their clarity of vision because they have become too preoccupied and swamped in a sea of legislation, that is all too often produced by marauding academics who are so detached from the industrial arena, that they fail to understand the real costly impact of the legislation they construct . Health and Safety is a prime example of just how over legislation can wreak costly havoc, and illustrates just what damage can be done when the lunatics take over the asylum.

Make sure the message you're sending is being received and fully understood

An old HR warrior once told me that a good union rep, is worth his or her weight in gold to any company. I didn't fully appreciate that statement, until, a few years later, when I found myself reaching a head in a settlement dispute with a group of Engineers, and their ancillary workers, who just happened to have a very good regional union rep. negotiating their settlement for them. He was a skilled negotiator who'd been around the block a few times, but to his credit, well understood that there was always two sides to any settlement argument.

His words to me ring as true today as they did back in the early 90s, when he took me aside (after a particularly difficult meeting, (where I could see attitudes were becoming entrenched on both sides) and said; 'Listen son, as he affectionately called me, I ain't calling anyone's bluff here. If I have to take these men out on strike next week, then I will, but understand, the day I do that, is the day we've both lost the argument. I ain't lost many before, and I do not intend to add any to that tally now unless you leave us with no other choice. So, I suggest you get back in there, and get their lordships of their high-horses, and tell them to be a bit more flexible, or we all suffer. Pay wise, there's more than one-way to skin a cat. It's your function in HR to mediate, and come up with ways of settling this dispute. And, while you're discussing that, I suggest that you get the board to better communicate there long term strategic goals. Because, at present, neither I, nor the workforce, have a clue what they are, and this lack of understanding is encouraging a discord that's leading to serious conflict..,'

I channeled his thoughts to the board. All seemed to be somewhat taken aback by the news that the consultations at local level hadn't been as successful as they'd assumed, something I'd been highlighting for the past 3 months, even penning changes to the structure of the roll-outs, (that I'd found too be more dictatorial than conciliatory and informative) that were deemed unnecessary.

Realizing that a strike was now on the cards, but the negotiation door was still ajar. The board re-thought their communication strategy, prepared a much more informative brief, that they discussed, and put together with me and the union rep, that fully outlined the changes to some working practices, shift patterns, job titles, and workshop locations that would inevitably lead to some redundancies, that, luckily, were all voluntary. And, with the help of my staff, looked at extra payments surrounding leave, shift and travel allowances, that could be enhanced without becoming a burden on the company., meant that we found the common ground and settled the dispute before any real damage had been done.

Lessons to be learned? Make sure that the message you put out is clearly received and understood by all. Assumption is the mother of all mess-ups.

It's inevitable that HR in most SME's do take more responsibility for human resource activities than in larger organisations where it may share its roles and responsibilities with other departments such as finance, admin and health and safety. In some organisations, its role is one of a promulgator of HR-related decisions made in support of strategic business directives. However, whatever its role is perceived to be, it is there for the betterment of the HRC within the company it serves, and cannot be seen as just another management tool that the board uses as a battering ram to implement unrealistic, unachievable goals.

In the recent years it is noticeable that more and more forward thinking organizations are viewing HR professionals as their strategic partners in areas such as; quality management, corporate planning, business operations, profitability and productive efficiency. HR management is now at the forefront in strategic planning and expansions in ways that better enhance the image and value of the organizations it works within, which is fine, but it can never be entirely responsible for laying down the strategic goals of a company. That's the job of the board of directors.

For the sake of brevity, I have, in the table below, highlighted the specific KRA (Key Result Areas) that every HRM department should bear in mind when assessing its real roles and responsibilities:

Employment and Recruiting:
Interviewing, recruiting, testing, temporary labor coordination, mediation. Listening!
Training and Development
Orientation, performance management, skills and training assessment, productivity enhancement inline with corporate goals.
Compensation
Wage and salary administration, job descriptions, executive compensation, pay incentives, job evaluation, skills gap analysis, assessing future technological advancements that may affect the same.
Benefits
Insurance, vacation leave, administration, retirement plans, profit sharing, stock plans.
Employee Services
Employee assistance programs, relocation services, outplacement services. Listening!
Employee and Community Relations
Attitude surveys, labor relations, publications, labor law compliance, discipline, strike interventions.
Personnel Records
Information system records.
Health and Safety
Safety inspection, drug testing, health , wellness.
Strategic Planning
International human resources, forecasting, planning, mergers and acquisitions, reducing the Silo effect, cost effective management, workflow analysis.

* Part source is based on SHRM-BNA Survey No. 66, “Policy and Practice: Human Resource Activities, Budgets, and Staffs. 2000-2001.” Bulletin to Management, Bureau of National Affairs Policy and Practice series. June 28, 2001. Washington, DC: Bureau of National Affairs the rest comes from experience and observations.

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_________________________________________________________________________________
About the Author

WHAT'S NEXT? Get your updates by emailor via RSS.Follow us on Twitteror like us on Facebook. Visit ourFREE Business Resourcespage.

Metaphors in Management

2012-10-17T08:47:00.001-07:00

A Metaphor is like butter. It should always be used sparingly. ......James Adams

The Collins dictionary defines a metaphor as being; A figure of speech in which a term is applied to something it does not literally denote in to imply a resemblance, e.g. He is a lion in battle.

It's hard to think of any of life's processes that hasn't, at some time, been described in a metaphor. They abound like confetti at a gypsy wedding. You can hardly view a tweet without someone tweeter giving us the benefit of their latest, cut and paste, metaphoric gem. That is somehow going to spur us all into action, as well as put us in awe of the higher intellectual capacity of the sender. Wow! Not really.

Some surround themselves in metaphors that they espouse with great regularity. Which is supposed to convey to us all that a major life changing decision has just taken place, their eureka moment that springs everyone into action. Yet, most metaphors turn out to be little more than words that are forgotten as quickly as they're read. Politicians love them. Kennedy inspired a whole generation with them. Generals churn them out by the dozen. Astronauts have floundered around for years trying to emulate that immortal metaphor of Neil Armstrong; 'One small step for man, one giant leap for mankind.' and never quite managed it.

What are they used for?

'They're here, they're there, they're every blooming where, metaphors, metaphors.' Stock market falling, search out a metaphor, lose your job, get a metaphor, lose your business, here's a metaphor, dumped by your lover, there's a metaphor for that too. They're loved, and used for good reason, they bring clarity of thought to any abstract idea, and can inspire a person, team, nation to respond in a positive or a negative way. However, they're like butter, fine, if you spread them thinly, bad for you if you use them too much.

'All the world 's a stage. And all men and women merely players. They have their exits and their entrances .'

The great Bard, William Shakespeare, was right. The above is as true for life as it is for metaphors. They have their entrances and exits. Use them at the right times or not at all. You're trying to achieve a common theme, and use it as a means to a definite an end. People must understand why it's there and what it actually means. It's needs point the way.

Managing your metaphors

Management is a very hard skill to define. It's neither solely innate, nor schooled. It's neither natural ability, nor simply learned. It's a mixture of all of these, and more. Sometimes, it's has much about the people your managing, or leading, as it is about your leadership skills. You can conceptualize all you like, but the reality is, it's always going to be a case of using different techniques in different situations. Horses for courses.

Metaphors used in the right context can help unite others behind your cause, as well as better understand the goals you're trying to achieve. They are not there to be offered up as a call to arms for every occasion imaginable or at every sales or production meeting. Understand their true value, and they will enhance your management skills, but using them at the drop of a hat for every circumstance greatly diminishes their value, and makes you become something of a cliche.

Cut through the babble

Metaphors are used to help different factions better understand and unite all behind one common goal. They paint a clearer picture of what it is you're trying to achieve. Whilst I am not advocating, as I once heard; 'Ask not what this company can do for you, ask what you can do for this company'. A rather pathetic take on the most famous part of JFK's inauguration speech. I am saying that choosing the right metaphor, at the right time, can help you cut to the chase and afford others a better understanding of what your goals really are.

Don't treat your customers like metaphoric idiots

Customers who read your company metaphor, that you've proudly displayed on your business's wall, had better agree that it's a fair representation of how you operate, or watch out. If it's not, you'll quickly be in receipt of their sarcastic metaphoric replies. I once saw a poster that read 'You're the sunshine of our lives.' Underneath it, someone had written; 'It must have been raining when we called. The service sucked.' Remember! Customers have the internet too. Say it right and it'll inspire, say it wrong and it'll bring derision.

Treat customers with the respect they deserve, metaphors can inspire, unite, give clarity of thought and vision. On the other hand, if you disrespect their hard fought prominence by using them in the wrong place, at the wrong time, with the frequency of the local school bus, you'll undoubtedly nullify their good effects.

I leave you with a few of my favorites;

' In the game of life it's good to have a few early losses, which relieves you of the pressure of trying to maintain and undefeated season.'
...Bill Baughan

'Life consists not in holding good cards but playing those you hold well.'
....Josh Billings

'Always walk through life as if you have something to learn, and you will.'
.....Vernon Howard

' Here is the test to find whether your mission on earth is finished. If you're alive, it isn't.'
.....Richard Bach

Good hunting

James Adams

_________________________________________________________________________________

About the Author

James Adams is the Director of Operations for Proguide a major worldwide management consultancy and productivity software company located in the USA, Argentina, and the UK. Overseeing projects in all regions worldwide. He has (and in some cases still is) consulted for the likes of; Apple, Coca Cola, ASDA Walmart, British Rail, Scot Rail, LUT, First Engineering Peterhouse, B.A, Aerolineas, Metrovias Rail, CLIBA, Chrysler, The American Red Cross, Seat, HMS, Taco Bell, Rio Tinto, British Steel, Cadbury, to name but a few, which in itself is a diverse consulting platform that affords one a varied intellectual management knowledge base from which to draw upon when instigating varying methods of management strategies in order to help clients achieve their goals. Know more about him here.

WHAT'S NEXT? Get your updates by emailor via RSS.Follow us on Twitteror like us on Facebook. Visit ourFREE Business Resourcespage.

Common Problems in HRM

2012-10-16T00:12:00.000-07:00

HR roles are critical in any organization, and while it primarily takes charge of recruiting, training and keeping employees in tune with company policies, its responsibilities spill-over into areas such as; employee rights, roles and responsibilities, benefits, policy/legislation, disciplinary procedures, welfare, recreation, advancement, organisational restructuring, and psychology, pensions, hiring, while at the same time acting as a bridge between management, and employees alike.

Lost and Found

HR, sort of found its way by default and, of late, has lost its way in an overburdening sea of legislation. There are now far too many blurred lines of roles and responsibilities, and, in many cases, too much of a legislative workload for it to be able to properly focus on its real core functions. To an extent, there's always been some blurred roles and responsibilities that have, if used properly, always afforded HRMs an operational advantage. If a CEO, or the like, walks into a production area alarm bells start ringing. 'Why's he or she here?' 'What's happening?' 'What's that all about?' Indeed, CEO's are sometimes just as uncomfortable as their troops are when they decide to venture unannounced into a production area.

Conversely, seeing a HR Officer in the same area hardly causes a ripple. He or she's a non threatening trusted soul who doesn't tell tales out of school. Nevertheless, HRMs need to understand that they have as big a part to play in the likes of production as they do in welfare issues, albeit, in a mainly advisory role. For me, during their training period, HR staffs should be exposed to work experience at shop-floor levels where they will begin to better understand what it's like at the coal-face, thus affording them a better understanding of what it's like to function under real production targets pressures, shift patterns, and customer expectations. You become a far better policy maker if you understand just how a policy affects you, in real working situations, before you become involved in signing it off.

The rules of HRM engagement haven't changed that much, have they?

In the early days of HRM, the rules of engagement were mostly set by senior management, who realised that they required an intermediary to handle everything from; union negotiations, disciplinary matters, through to the likes of motivational techniques, skills training, welfare and hires. As business legislation increased, HR's role became more of a necessity than the requirement of a corporate board. Companies realized that they needed to hire trained professionals who had a good understanding of the psychology of the workplace, and thus were better placed to handle Human Capital integration, as well as act as a bridge between management and the workforce as an independent arbitrator. Modern day HRM was borne.

Whilst HRM has vastly changed from its humble beginnings, its core function remains the same; HRM is a bridge between staff, management, and the board, that all individuals can easily walk across, and approach, without fear of reprisal, discrimination, or being turned away without a proper hearing. It's a halfway house for all. By this, I don't mean it's a stop-off shop for a quick coffee and a chat to calm one's nerves, but every employee should well understand that everything from drug abuse through to harassment, stress management, and the like, can be discussed in confidence without fear of discrimination or reprisal.

Indeed, inline with this philosophy HRM staffs now have to possess an understanding of everything from; motivational techniques, the psychological affects of mass production and shift pattern working, through to the likes of; reward psychology, company politics, sexual harassment, discrimination, organisational modelling, and even gay rights in the work place.

Want to terminate someone's employment? Ask HR. Discrimination, ask HR. Introduce a new incentive scheme. Get HR. Build an organisational model? Where's HR? Merger and aquition. Better get HR involved. The list is endless. However, there's one common thread that runs through all of this; 'it's all about people's rights, roles and responsibilities, while at the same time assisting management in getting people to do the right things in the right ways at the right times.

HRMs, we're management too, aren't we?

Emm......Well you are, and you are not. Be very careful here, you're here to serve all human capital, no matter what cafeteria they eat in. Whilst, you are 're there to do the Board's bidding, it should be done in such away that alienates no one. You advise, assist, help to smoothly enact new initiatives, always ensuring that change is effected in the proper and most efficient manner. You ain't a battering ram for the board to impose its whims in the pursuit of their misguided goals. Not all boards can cut-it. Not all CEO's are top notch, not all directors can direct. If you feel something ain't going to work, then it's your job to find a way of making it do so or culling the action. That means that you may have to come out against the people that are employing you but, any good board or employer understands that most plans change along the way in order to achieve real goals. You're not always going to be flavor of the month, but you can either cut it or you can't. 'Pee in the pot or get off it'' as one old-stager use to remind me. Anyone can sit on the fence and pay lip-service to a poor initiative. The real players meet it head-on, gain agreement to reappraise it, and fashion a workable solution. A yes man or woman in HR undermines the very essence of HRM philosophy.

Be careful not to alienate the people you want to keep

Old management hands will tell you that an organisation should have a clear reporting structure, where everyone knows their place, and is well aware of whom they report to. That's true, however, most managers, have at some time circumvented set management lines in order to meet deadlines. As long as it's not outwith specific laid down rules, and policy, and it's safe, it's fine. The banks and global financial institutions continue to show us when it's not fine, as well as the dire consequences of how introducing unnecessary risk without any proper risk assessment or regard for anything except profit can lead to disaster. 'Indeed, It would seem that, no matter what frauds and malpractices banks and global financial institutions continue to enact, they're not only free from prosecution but also any real responsibility.'

Despite what they say. I never for one moment imagine that Jack Welch and Co. always followed the chain of command to the letter. Like it or not, there's an unofficial organisation that exists within every company. Work is usually doled out to those it's felt are competent, up to the task, and will deliver on time, that sometimes puts competent work fellows at a disadvantage, and can, if your not careful, give rise to complaints; 'why am I always given the difficult stuff to do?' 'Can't he do that?' 'He's paid the same as me yet does a lot less.' And So on and so forth. Been there, seen that, got the T-shirt. Reward or non-reward can be a very tricky compensation arena that if worked improperly can easily alienate the very people you're aiming to keep and reward.

It's a big job, but someone's got to do it

HRMs, as much as any board member or stockholder, should want their company to be as successful as it possibly can be and therefore keep a keen eye on outputs. This philosophy is one that is all too often forgotten or ignored by many HR Depts. HRMs should and must understand production out-turns just the same as they understand company regs. Observations and discussions with staffs in the workplace give one a better understanding of what a process is and just how it can be improved. Taking a snapshot every 5 mins of a whole work area often paints a truer picture of production than being a part of the process itself.

HRMs are in a very unique position to help a company succeed. Any HRM worth his or her salt, will recognize that they have a distinct advantage when it comes to effecting advantageous change within a company. They can transcend any workplace prejudices, politics, and rank, that can often hinder other departmental heads in their efforts to effect change. Good HRMs are not only able to head-off trouble at the pass, well before it become a major issue, but are also able to assist managers in effecting advantageous changes to out-turns. However, be aware, no matter who you are, or what your personality is, it's not always easy to to maintain impartiality, when one sees an embattled colleague attempting to improve the work ethic of a deliberately under par employee, whilst it's obvious that the rest of the workforce, including you, are breaking their necks trying to meet deadlines.

All workers want to work, don't they? Hello Mr Bean

Don't kid yourselves, there are poor employees out there, and you'll come across them, and, despite your years of experience, or knowledge base, there's some you just can't do anything with except move them on. Herzberg's motivation-hygiene, job satisfaction, love of money, mediator, pay satisfaction, ain't going to help too much with some non-workers, who just don't want to be at work, and they don't care who knows it. The job is a means to an end to some, and in between, they'll try to make up their own rules in order to make their stay as easy as possible.

I'm minded of one guy's comments to me some years ago; 'you're a nice guy James, and you're good with that psychology shit, everyone respects you, but I hate this place with a passion, and I ain't going change for anyone so I wouldn't break your neck trying make me do stuff I don't want to do, because I ain't doing it. As soon as something better comes along I'm off out of this shit-hole.' He left a few months later, never to return. Now you can analyse that situation all you want, and say that the person that hired him didn't do his or her job properly. Then again, all hires are a lottery of sorts, no matter what type of psychometric tests you employ. God gave us all a sixth sense, and I've rarely seen a psychometric test that beats that yet, but even that can let you down at times, and I've never seen either hiring system overrule a misguided political appointment. Sometimes you have to work with what you have and make the best of it. At least you knew where you stood with the aforementioned. There was a known starting point to change his behavior. It's not always so obvious.

The less obvious poor employees just about make the mark, while in truth contribute very little to the cause of improvement, rather, they just do enough so that they can't be moved on without a serious battle ensuing. One character type that always springs to mind, that I've met many times throughout my career, I've nicknamed; Mr Bean......These characters will never go the extra half yard for the company, or anyone else, no matter, no matter what the circumstances are. The mere mention of extra duty, has them quoting company rules on overtime payments and allowances, quicker than a magician pulls a rabbit out of a hat.

These characters want extra payments to be confirmed in advance, or they don't work a minute after the bell rings. They remind everyone who's attempting to do something over and above their job description, that; 'it's not your job, so you shouldn't be doing it.' They make a mountain out of every molehill they happen come across. Mr Beans spend endless hours complaining about the last re-organisation, that didn't affect them in the slightest, attempting to cause discontent in the ranks of those that were involved in it. They're a walking encyclopedia of what went wrong when management tried to install a similar initiative some ten-years earlier, and can recite chapter and verse who said what to whom, at that time.

Mr Beans are the first to befriend any new employee in their midst, and give them the lowdown on the negatives of the company, that in their opinion, they've had to suffer for the last twenty years. Beans are like a creeping wall plants that have their tentacles spread far and wide waiting to strangle anything good in their midst, yet they are easily broken by the slightest breeze of change.

They pen one day and half-day holidays with the frequency of a daily motion, knowing exactly when to tag the same onto public holidays in order to minimize the effect on their own holiday entitlement. Heaven help any beleaguered manager who tries to change or refuse Mr Bean's one day leave. Beans are then off to HR quicker than a rat up drainpipe, where they quote leave entitlement, chapter and verse, whilst screaming about discrimination to any poor soul who has to listen to them. The only reason the beleaguered manager didn't grant Bean's one day leave in the first place is because he's short-staffed, he'd much rather have granted the leave, as it gives him respite from Bean's bad influence on the work unit. Now the poor guy's being accused of being discriminatory because he allowed someone, more deserving, and with a valid excuse, to take a day's leave, that Bean is now using as an example of how he's being discriminated against.

Mr Beans never reach the dizzy heights of decision making, (heaven forbid they ever do) they're where they want to be. They don't want any amount of responsibility because it, as they put it, would interfere with their work life relationships, when the truism is, they only have a life relationship, works just an accumulation of hours that they happen to get paid for when they're away from home. Their sole loyalty lies with themselves. They're prevalent in the public sectors, where, contrary to popular belief, there are many excellent staffs who do an excellent job despite the omnipresence of the Mr Bean characters.

You can picture Mr Bean as former Eastern European communist bureaucrat, drunk with power, informing some old lady that she's no longer entitled to live in the tenement that she's lived in for the last 50 years, because they've just found out that she failed to properly complete a UFS1313 (unlucky for some) Politburo form some 30 years earlier. 'That's the rule madam, I am only doing what i'm told to do, if you don't like the outcome, take it up with my superiors, goodbye.' ' Next!!!!'

Yes my friends, much as you'll dislike the Mr Beans of this world, you'll have to hold back your feelings and prejudices toward them, and remember, you're in HRM. Mr Bean is just another person that you're there to serve, and attempt to make a model employee. Until you're called upon for advice, or intervention, it's not your job to manage Mr Bean, but you should have an interest in nullifying their bad affect on the workforce.

HRM can often be a difficult tightrope to walk across. On many occasions you'll find yourself walking it without a pole, or a safety net, and find yourself alienated by the Mr Beans of this world. Not everyone is productive, not all managers can manage, and not all are model employees. It's HRMs job to see that everyone is treated with humility, and in the correct and proper manner, despite what you and everyone else privately thinks about them. You're there to make them better, not to discriminate against them.

Back to my roots

HRMs roots were borne out of studying autocratic management, and sweatshop exploitation. Studying how to get workers to do the right things in the right ways for the right rewards. Pavlov, Herzberg, Becker and Schultz et al. are your forefathers, who armed you with the knowledge that helps you better understand and recognize worker traits and personalities in order that you, in turn, can offer assistance, and advice, to staffs at all levels, that will help them to better instigate solutions for the betterment of the company. You're not going to win every time, however, you can show the paths that have often lead to success. Here's a few more things to bear in mind in your busy schedules;

Photo courtesy of Bloomberg.com

Rules are there to be broken aren't they?

One of the most challenging HR department functions is to ensure that employees adhere to rules and regulations, and to communicate to all concerned that the R&Rs are in place for very good reasons.

Many employees find it an unnecessary annoyance when they're notified that they're improperly dressed, or tardy, or not wearing the proper uniform, or that all social media websites are to be blocked on office computers. Indeed, if you fail to properly communicate rule changes it can build up a barriers of discontent between you and the very people you're supposed to be helping.

Any rule changes no matter how small have to be communicated properly, and with humility. People have to understand why the R&Rs are being put into place. When you plan on making changes to R&Rs, there has to be a degree of consultation. Whether that's in the form of a straw-poll in a small office, or with a works representative in a factory, some form of dialogue always has to take place in order that everyone properly understands why the rule changes have taken place,, or exist. You also need to hold follow-up discussions, and monitor the change effect or, I can assure you, it will come back to haunt you when you find yourself involved in a disciplinary that may lead to the employment termination of someone for contravening rules that you helped to implement.

Make sure everyone gets the message

I once sat in on a disciplinary of a driver, who's truck's engine had blown up through a lack of oil. Upon inspecting his vehicle, he surmised what had happened to the engine, then, allegedly, figured it may have been his fault for not topping it up with oil, he ventured off to the nearest gas station, where he allegedly purchased about three cans of new oil, and later filled up the defunct engine unit with it, then phoned for assistance, and waited for the tow-truck to arrive.

It took about a day to get the truck back to its regional depot, by which time its load, frozen foods, was spoiled and had to be disposed of, before the maintenance subcontractors took the vehicle away for repair. These things happen no big deal the engine had developed a leak. However, the driver would have gotten away with it had the maintenance subcontractor not phoned to ask why someone had added new engine oil into a defunct engine.

The driver had stated that he had checked the vehicle over before he left the depot then again at a truck-stop before his last drop. However,upon investigation the transport manager and his supervisor were adamant that the driver must have neglected to put oil into the vehicle and take note of the oil warning light or he'd have seen that the vehicle had developed a serious oil leak that was exacerbated by increased running pressure after he left the truck-stop. This summation had led to the driver being suspended and given a disciplinary hearing

It's worth pointing out that, because an increase in vandalism, and robberies had occurred at these truck-stops, that a new rule had been introduced, whereupon drivers had to run their engines for five minutes and check over their truck before heading on their way. In his defense, the driver said he'd checked the vehicle, ran it for five minutes, saw that the oil was a little low and topped it up. However, the tow-truck driver said that he'd followed the oil trail for miles but only realized it was our truck when he arrived at the lay-by where it was parked. Then, of course, there was the evidence of the new oil, which would have shown contamination had it been used in a running engine. Apart for some specks of carbon, the sample was pretty clear. No oil cans were found. The driver had unfortunately, some said, conveniently, mislaid the receipts, and didn't, for some unknown reason, pay for the oil on his company fuel card. Which made the normal breakdown claims all the more suspicious.

Added to this, because, in their eyes, the driver had a poor attendance record, both the supervisor and transport manager wanted him fired. The union rep. was claiming that the driver wasn't culpable, and there was no real proof of the new oil events. It was easy to see from the way the driver had responded to the questions that his history of events was completely implausible. However, he did bring up the matter that he had not signed-off the new ruling, as he was on sick leave at the time of its instigation, and had only heard of it's existence form his fellow drivers. Therefore, his union rep. was claiming he wasn't fully briefed about the rule change and couldn't be held culpable even if he hadn't checked the oil.

I had already informally discussed the case with the CEO, who had stated that; if the driver admitted the offence or was found guilty then he was to be terminated, no more than that. Luckily, for all concerned, the driver was on route to his last drop of the day when the vehicle broke down so the loss of cargo amounted to nothing like it could have been had the truck broken down earlier in the day. The repairs needed were excessive, but confined to engine, the subcontractor was able to locate a reconditioned engine, that turned out to be the best most cost effective option. In short, it could have been a lot worse.

The outcome;

We adjourned for lunch. As I was walking down the corridor, the driver approached me and asked if he could have a quiet word. I said OK, but that I wouldn't be going into details of the case outside of the room, without his rep. being present. He replied; 'OK, I just want to ask you what happens next?' I replied; 'to be honest, in view of your testimony I think we're going to have to dig much deeper into the case.' He asked what that would entail, I replied that; I'd have to get the oil forensically tested, request videos from the truck-stop, and the services where he'd broken down, and see if we can get copies of the receipts, then reconvene the disciplinary, and take it from there.

He thought for a moment and then asked; ' If I resign now, what will happen to me' I replied; 'the matter is closed.' 'Will I lose money?' I replied; 'no, if your rep. agrees, the week's suspension will act as time served and go some way to covering the damages, you'll have to sign some disclaimers to safeguard the company, from further action, and that will be that'. He then replied; 'Well, I already have another job to go to, so I'd like to resign now, and fill-out any forms you want me to sign because I don't want to have to travel back here to do it '. I informed him to inform his Union Rep. of what he wished to do and to both come to my office if he still felt the same way after discussing the matter with his rep. The driver came to my office, resigned, and a left the building a couple of hours later, never to be seen again.

A good outcome? It depends which way you look at it. There was a hefty cost in terms of time, parts, labor, and distress all round. Had the driver not topped up the engine with new oil we'd have had no real case against him. As it was he brought about his own downfall. I felt somewhat sorry for him as he'd backed himself into a corner he'd have been lucky to get out of. But he's probably learned his lesson and I wished him well.

Lessons to be learned

You're not going to encourage collaboration, innovation, and good will if your forever introducing rule changes that alienate the work-force, especially if they're hailing from the very department that's supposed to be a neutral broker and friendly broker.

Whenever you introduce R&Rs make sure that they're consulted in and that all involved sign-off there instigation and understand the same. Don't leave things to chance. Everyone's affected so everyone has to be aware.

Monitor the the effects of the changes made. Did they work?Are they being ignored? Could they be made better? Can they be modified? It's no use introducing a total soft drinks ban on a cost basis if for two-months of the year production falls because certain parts of a warehouse are too hot to work in. Communicate!, Communicate! Communicate!

HRM initiatives, cost or benefit?

Employee compensation, benefits, training, corporate social responsibilities, among others. Are all of course costs to the business, however, one always has to assess the benefits they provide against the costs of taking them away. It's not always about competing with China or some small start-up down the road.

There's a whole theme that can be sold not just harping on about being equal opportunities employer, or that your company is against child labor exploitation, and that you promote professional quality management techniques. Indeed, there's a host of things to sell before you make swinging cuts in favor of increased production. Excuse the metaphor but '[there's more than one way to skin a cat.' Try to defer benefit payments, work with suppliers, assess supply-chain management, look for cheaper goods, forward order at , pegged prices. Refine the process, and systems, chase down invoicing. Take an holistic viewpoint before simply making swinging cuts that could demoralize and back-fire.

Taking away free drinks during a summer period in a particularly hot warehouse may seem like a good cost reduction idea in the middle of winter but could have a costly consequence during the hottest months?

Is farming out your call center to the Indian Subcontinent really going to be a successful cost saving initiative that has a beneficial impact upon your company or are your customers going to leave in their droves because of it?

Give me three cost savings initiatives, that surrounds benefits, in any company, and I'll blow them away with three far better cost savings initiatives that will have less of an impact on the morale of the work-force.

Finally; it's a fine line you sometimes have to tread in HR. You're all things to all people, and by being that you have to be careful that, your compromised actions do not alienate the people the company wants to keep. Life's full of compromises, business is the same, but the one thing you must never compromise your integrity. If it ain't right, don't go with it just to please others. Successful valid compromise is the key to achieving good results. Instigating bad policies and poorly communicated change, only leads to poor returns.

Good hunting

James Adams

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About the Author

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The Management Game's A'changing

2012-09-26T13:11:00.000-07:00

Have we bid a fond farewell to formal management structures?

'If an institution wants to become adaptive, it has to let go of some control, and trust that people will work in the right way at the right time' Robert B Santo, CEO of Monsanto.

During their initial growth stages, start-up companies usually house an informal management structure. Inevitably, as they grow, external forces demand that they adopt a much more formal approach. In many companies, particularly tech start-ups, informality is omnipresent in one form or another, and in many cases it encourages innovation. Indeed, some of the most successfull companies, on this glorious planet of ours that we seem destined to wreck, thrive as a result of their informal working structures. Apple, Microsoft, Facebook and Google, to name but a few. Then again, tech companies house a sort of chaotic mgt-structure, where innovation takes precedence over formality. You'll seldom see Mark Zuckerberg wear anything but jeans and a Facebook hoody, you rarely saw Steve Jobs in a suit.

http://youtu.be/f60dheI4ARg

Are informal management structures really that new?

Informality is nothing new. Whilst a bit before my time, I'm minded by the furor the Beetles and the Rolling Stones caused when they came onto the music scene in the 60s, and inspired a whole era of change. Informality ruled the day. A whole generation turned their backs on the expected and did their own thing. They dressed informal, acted informal, opted-out of formal careers, and broke many formal taboos. Indeed, when one looks at the news reels of the time. They the youth of that generation wouldn't look out of place in a techy start-up of today. The 60's was the age when a couple of friends purchased a Pizza store called DomiNick's, for a $75 down payment and a $900 loan, only, a year later for one of the partners to trade his share of the business for a Volkswagon Beetle and go off travelling, leaving his buddy with little choice but to rename the pizza parlour Domino's and, as they say, the rest is history.

Inevitably, at some stage in their development, corporations have to adopt a more formal structure, as well as have to adhere to certain rules and regulations, especially when shareholders come on-board. However, there's benefits to be gained from analyzing the informal structures that exist within every company, so that's where we'll begin.

Informal structures in the likes of technology start-ups are somewhat self policing, in that, most who work within them are not only higher cognitive learners, they're also very goal orientated. It wouldn't do for everyone within a McDonalds to suddenly up, and decide to take a games break, or bring their dog to work, or go walkabout to consult with a colleague about how better serve up a customer's burger, but studying how a McDonalds really works, as opposed to how the franchise HQ assumes it works, will help to improve the effectiveness of the organisation. Yes, there's even an unofficial way of doing things at a McDonalds.

Now we can't suddenly all rush out and tear up organisational rule books, and by doing so create a sort of informal utopia, where everyone wanders about collaborating with everyone else, producing great results every time they undertake a task. But, take note, 'there is always an unofficial organisation within any organisation that's fighting its way to get out, and when it does, it's usually the one that points the way to the best working pratices.'

Dress down days (they're encourage informal creativity, don't they?)

Anyone worked those out yet? Dress-down-days are supposedly adopted to encourage; closer collaborations with management, a more innovative creative, and less formal working environment, more interaction between the various levels within the company hierarchy, and so on and so forth, you get the idea. What one usually finds is that they're somewhat of a mishmash, and that most employees 40 and above, feel less comfortable when working in that environment one day per week. It's Ok to send a memo out stating that all can wear what they like on Fridays, as long as it's smart casual, but that in itself gives rise to arguments of interpretations.

What you can glean from the many varied studies, that have been done on the subject, is that, they're a nice try at attempting to create a somewhat innovative and different environment, but that don't really create anything at all, except a fudge of statistics, that when analysed simply say; some like the practice, some don't, some are a bit confused by it, some think that it's a complete waste of time, some think it's good, and others couldn't care less.

I once got pulled up for being too smart on dress-down days. I didn't even work for the company, so I replied; 'I'm afraid we're not allowed to dress-down at our company, but i'll compromise, and remove my tie and jacket every Friday.' It seemed to do the trick, and with that the busy-body troddled-off as happy as a pig in the proverbial.

Know what your real objective is before instituting dress-down-days. For many, they can; blur the lines of clothing good taste, have an adverse effect on morale, lead to competition in labels, lead to embarrassment, stifle the very creativity they're supposed to be encouraging., lead to unwanted banter dispensed in bad-taste that then causes rifts. 'Jeesh Frank, where did you buy that cardigan, in a charity shop?' Sometimes, what may seem to be a bit of a laugh, just isn't. Nice Article in the CPA Journal, where the stats below are taken from.

http://www.nysscpa.org/cpajournal/1999/0499/Features/F320499.HTM

'What's good for the goose is not always good for the gander'

I was once headed-up a consultancy team in an organisation that had over 80 satellite regions, that housed depots of varying sizes. These were engineering facilities responsible for maintaining a large railway. I was overseeing the assessing of the work schedules and productivity efficiencies in each engineering area prior to us installing our work scheduling and productivity system, VIPER, as well as coaching the Execs about ways to improve productivity throughout the organisation.

Whilst working with a night shift crew, I happened upon on a large engineering supplies store, that was sited at their depot. The guys were requisitioning some parts they required for that evening's pre-planned maintenance shift. I went along to the store with them that I assumed was a regional outlet of the central store that was located some 95 miles away. Indeed, it had a full-time stores-person, who had an assistant, which only compounded my assumption. It was a quite large prefabricated building, modelled along the lines of a proper depot supply store, it was well laid out, and well managed. It even had it's own stock control system. Other than being interested in the logistics and stock control factors, that would have a big impact upon our work scheduling system, that we were designing with the crews, I had no real interest in it as a store or why it happened to be in that region, but as part of my research I began to ask the stores person some pertinent questions that would affect our system installation. E.g; 'who makes the initial stock orders for supplies? How are these orders tied to the work schedules?'

We were going down the work route of installing handheld, sign-off devices, whereby, as crews completed a job, they would simply sign it off on a hand-held PDQ, indicating the supplies used by ticking a pre-designed touch-screen materials tick-box. The system then automatically calculated the cost of the parts used, where they were used, and auto-re-order the materials as well as any that the crew decided would be required for any incomplete tasks, or for future tasks, that had been identified whilst patrolling the track. The system would be connected to the central stock system, and print-out a download for anyone who had access to the same, that would also be linked the the supervisory work scheduling terminals.

As I began asking the storeperson, she listened intently, and then replied; 'well actually, you'd be much better off putting these types of questions to the guys at the main stores. This store has nothing to do with the main store other the kit is supplied by them. They're sort of aware that this store exists, but they're not, if you know what I mean, wink, wink. We built this store ourselves because of the failings of the main stores, that never neither seem to stock the kit we need when we need it, nor be capable of delivering on time. We have a railway-track to maintain, and keep safe, and that's our number 1 priority around here. Please bear that in mind, and don't come up with any misguided foolish notions of taking this regional store away from us, or you're going to encounter some pretty heavy resistance, as well as some pretty big problems when it comes to completing those maintenance schedules you're looking at improving.' Smiles and smirks all around, this was a cry in the dark from someone who knew what she was talking about. I wasn't about to even attempt to tell my grandmother how to suck eggs. Respect!

Other than my initial notion as to what the building was, I wasn't at all surprised by the secret store revelation. I'd seen the same thing occur many times in industries such as; oil and gas, other railways, transport and container companies; steel plants, engineering workshops, shipbuilders and the like. However, I knew I needed to get to the heart of the problems, or we'd not only be doing unnecessary work, but we'd also be propping up a supply chain that was not only functioning seriously out of kilter but was also looking like it was a sizeable cost burden to the company that would undermine the installation of our work scheduling system.

During my conversaion with the storeperson, I noticed an artisan (who I had met on a previous shift at a different region, some 15 miles away) arrive at the counter to pick-up supplies. I asked him why he was using this store, as opposed to the main store, he informed that he had placed an order with the main store some weeks prior that hadn't arrived, and as the kit was required for the upcoming weekend maintenance shifts crews, he had little alternative but to effectively borrow the kit from this regional store and replace it as soon as his order arrived from the central store. He mentioned this regional store was a Godsend, and that he couldn't function properly without it. As more crews arrived, it became blatantly obvious that this unit had become a regional supply store that was making up for the shortfalls in the companies official supply chain that was also causing additional downtime costs. I completed the shift, and left the guys, who were excellent, to write-up their logs, and returned to my hotel. The next day, I decided to drive down to the main stores to take a closer look at how the supply chain functioned, or in this case didn't.

I interviewed the main store manager, and his supervisor. Whilst we were going over the supply chain process, without my mentioning anything about the regional squirrel store i'd seen the night before, a call came in from the supervisor of a depot that I was scheduled to visit that evening. The stores assistant was asking if anyone was delivering in that area, that day, only to be informed that deliveries had already been made in that area, the day before, therefore, the supervisor in question would have to wait 7 days for a new delivery or put in an emergency same-day order that would be charged-off to his region. I interjected and asked to speak with the supervisor, I informed him that I would deliver his order, as long as it would fit into my utility vehicle, which it did. He then asked me; 'James, please do me a favor, I placed an order that should have arrived 3 days ago, for kit that we require for the weekend maintenance shifts, however, no one down there seems to be able to track the order, and it's looking like we may now have to cancel some jobs, and reschedule the same. I've already phoned the suppliers, and they've informed that the order had been dispatched, and delivered 3 days ago. My product stream manager is on leave, and no one else seems to know what the hell I am talking about, let alone locate the kit.'

I said, OK, I would bring that kit too, if I located it. I asked an admin assistant to check on the order number. The kit was showing as being out of stock. However, the stores supervisor interjected, suggesting that it may be in the processing bay awaiting entry onto the stock system. Seemingly, they took deliveries and entered them into stock,. So off we marched in search of the items.

We arrived at the deliveries bays, gave the supervisor the numbers, he checked the stock receipts, yes, this kits been delivered, it's in Bay 6, we checked, and, lo and behold, there were the items awaiting to be processed, along with hundreds of other items too. They'd been delivered, you guessed it, 3 days earlier. I delivered all the kit, that evening, to an ever grateful supervisor who still phones me up for a chat many years after the successful completion of the project. He's now a senior manager and, as the leader of the successful QAT quality action team we created, he came to prominence due to his diligence, hard work and expertise, that was invaluable to the project and company as a whole.

I 'm not going into the ins and outs of the failings within the official supply-chain system, and how we, the QAT teams, and the crews rectified the problems. Lest to say that each area now has a proper stockholding of essential items. The regional squirrel store is now part of the central stores process. The storeperson that was in charge of that regional store is now the procurement manager, and we managed to save the client $22mil into the process, partly because, as I later discovered, there wasn't just 1 regional squirrel store, there was actually 22 of them, all varying in size, yet encompassing every engineering discipline, that were a leftover malpractice from the railway's it's nationalised era when open cheque books were the norm.

Was the unofficial system right or wrong? Well obviously, a bit of both, but it only came about as a result of the failings of the official system. Is it a frequecnt occurrence? Yes it is. Unofficial organisations exist within every work place. Anyone who thinks that they do not is deluding themselves, and really needs to do a bit of undercover bossing.

Employees find ways around problems that inhibit them from properly completing their tasks. It's very rare that you'll find them standing around do nothing simply because of the failings of a system. Frustration usually leads to action, not the reverse. Contrary to popular belief, people are very good at taking action when it's required, officially or otherwise.

Too many reports, what do they really tell us? Who's on 1st base?

Delving through the reams of paper churned out by yet another over inflated stock reporting system, that we changed. Gets me onto one my pet hates. The dreaded failures of reporting systems, where useless information is left to pile up like elephant dung on the plains of Africa. Unfortunately, there are no Dung Beetles in an office to carry it off and dump it, so it just lies there crying out for someone to analyse it.

In some ways you can't blame the installers and salespersons who sold these systems, and added whatever the client wished for at the time, or that thay developed a system for all seasons, that may not be specific do the business in question. Nor blame the dreaded IT departments for including reports that only Joe Schmo, who's long gone, found useful to the business. Many systems have become so complex, when most other technology around is being made simpler, that they have become a sort of nemesis that's tucked away in a corner, that most are too frightened to go near, for fear of being suffocated by a deluge of useless info. they neither need, nor properly understand.

You'll get those that love this deluge of information. They'll attend meetings armed with, mostly retrospective, figures that are supposed to show what's really happening in their company, only for someone else to interject, and say; 'actually, they are last month's figures, we've now revised them up, so it's not half as bad of a picture as you're making it out to be.' Or, worse, 'we've revised those figures down, and it's even worse than we first thought.' Help! Someone once said; 'The Devil's in the detail.' Well it is, and it isn't, certainly not all of the detail that's out there. Much of it is crap!

I am somewhat bemused by the likes of The Federal Reserve Board's summary of regional economic conditions, that reports things like; consumer credit, construction spending, business inventories and the like, who publish a detailed report, only later, surprise surprise, shock horror,to publish a revised report that changes most of the stats. What was the point of releasing the first set of figures if they have to be revised? Unless of course, you wanted it that way. Now there's a conspiracy theory for you. ;-). The US Military has the capability to pin-point a target, and take it out on the other side of the globe without leaving a desk, yet the Fed can't get States to properly report their proper jobless figures each month. Hello!!! Nonsense! Utter nonsense! Imagine if that were a production run? The simple fact of the matter is that the reporting structures are flawed, probably, far too cumbersome, requiring that people load far too much data, that then has to be extrapolated, and put into a different reporting format, only to be redone a month or so later.

You know everyone's playing games when the equity markets rise on the first tranche of the Fed's data, whilst knowing fine well that it's most likely incorrect. Bloomberg and CNBC chirp up 'oh another rise on the markets based upon these housing starts and unemployment figures. Cramer at CNBC delares; 'we're on a tear here.' Then Rick Santelli (CNBC) tells like it is based upon his wealth of experience, and having his ear to the ground, as opposed to making too much of the initial data. ' Let's wait and see what the revised figures are' says Rick. Well done that man. Which is what everyone esle should be saying and doing. Think about it. The Fed reports a 1.7% rise in the Current Account figures, which, broadly speaking; is a measure of US trade with the rest of the world, goods, services and some financial transactions. Only then to revise this figure down to 1.2%. In monetary terms, that's one hell of a revision. I wouldn't mind that revision dropping into my bank account.

Now, I am not saying that this data is useless, far from it, albeit retrospective, you can tell an awful lot about where the economy's headed, and what we spend our money on, but, it doesn't give the exact picture, and as such can lead to governments making decisions that are out of step with the true KPI's, especially when making calls on the likes of austerity, and the dreaded quantitative easing. Incidentally, keep this quiet, but quantitative easing only gives the banks access to more cash, not the rest of us. 'You can take a horse to quantitative easing, but you can't make it drink.'

Always keep in mind the end-users

When putting any system together, one must always bear in mind that the end user may not be the end user throughout it's life. Also, it has to be easy to extrapolate data for a variety of end users, who can easily grasp and operate its reports structure.

I frequently walk into companies where you'd need a degree in computing just to operate its many reporting systems, let alone, as an untrained operative, ever get any meaningful out of them. You're firstly forwarded to some person who operates the system, only for then to be told that they're too busy with other reports requests, and they'll pull out the report you've requested in due course. Then, when it finally arrives, you get reams and reams of junk along with the data you've requested. When you ask why it's there, you're met with the; 'oh Harry, or whoever, requested that be added to the reports structure, unfortunately, Harry's gone and his replacement says he doesn't really need it now but it's there if someone else wants it.'. Information piles up like a tuma awaiting an analysis by a lab-assistant who never arrives. It's becomes; '\it's there just in case anyone ever needs it data'

I once walked into a company that had 42 different systems, churning out weekly reports that in many cases were practically useless, and mostly left unread. Yet when we analysed the whole reporting structure, 2 systems could easily have coped with what was needed with ample capacity to spare. Crap in Crap out. Be careful what you wish for! Data kills in more ways than one.

It's not that difficult to design a system when you've properly analysed what it is you want to measure. KISS applies Keep It Simple Stupid. What are the Key Performnce Indicators required to drive the business along, whether it's required at departmental or board level, it must form part of an holistic KPI reports regime . It's not just about what Shona or Steven in accounts decide they require every month, rather, a report has to be properly integrated into the KPI reporting structure. If it's measurable, it's manageable, but you don't need to data manage every little detail.

In this day and age, it's easy to link and design a system that sit on top of almost any system. Indeed, I spend a lot of my time do it in order that we link KPIs gathered from various systems, so that companies managements are better able to see, and focus on the key performance issues, as opposed to being not the overwhelmed with junk data that the have to spend hours sifting through. Data's good, but can't solely rely and act upon data. It's the proper interrogation of the KPI data that yields results.

Summary

Taking a look at the informal management structures and systems that exist within most organisations is often the key to increasing efficiency and competitiveness. To get the job done, people will often find ways around cumbersome official systems, and replace them with their own, that then becomes the norm. These unofficial systems may not only be adding to operating costs, but may also be lowering moral. 'Oh they do what they like down there, they never follow the official system, they've developed their own ways of doing things and to hell with everyone else.' Systems change. When they do, they have to be properly consulted in. Understand how effecting a change in the official system impacts upon everyone in the organisation not just those in that area where you're implementing the change. To a degree, informal environments breed innovation, but even they have to be properly structured. Chaos is fine, as a theory!

When installing any systems into any environment you must take into account the end users. It must be simple to operate, generate easy to understand KPIs, and never be so complex that people are frightened to go near it. Whilst you can't have every person and their dogs interrogating the system. Most should understand the holistic nature of the reports the system churns out, as well as understand why they're having to load data into the same. Beware the Crap in Crap out syndrome. Keep It Simple Stupid.

Have a great day,

James Adams

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Testing Your Leadership Skills Part 1

2012-09-25T07:19:00.000-07:00

General Dwight Eisenhower once said 'A sense of humility is a quality I have observed in every leader whom I have deeply admired. I have seen Sir Winston Churchill with tears rolling down the side of his cheeks as he thanked people for the help they were giving to Britain, America, and their allies. My own conviction is that every leader should have enough humility to accept, publicly, for the mistakes of the subordinates has has himself selected and, likewise, to give them credit, publicly, for their triumphs.'
That statement is as true then as it is now. A great leader.

I was once had the privilege of working for the Sultan of Oman, His Majesty Sultan Qaboos bin Said. who's humility was evident as he sat and listened to any Omani, no matter what their hierarchical position in Omani society, from the Bedouins of the Wahiba Sands, to the enchanting Dhofaris of the beautiful Salalah, men, women, children, alike, they are all the same in his eyes, and are encouraged to achieve their maximum potential. When he holds his regional tours, he is there to listen and help, ( meetings are held in his magnificent mobile tented meeting chambers that are erected and dismantled after each regional meeting has concluded). Civil Servants avidly document the discussions, that are punctuated by the Sultan's instructions as to what is to be done to resolve any issues that are raised before him, and that will further the cause of bettering the lifestyle of all Omanis. The tours are orderly, benevolent, decisive, and filled with humility and mutual respect. The audiences are a way of letting Omanis know they can go to the very top if they have any grievances that cannot, or are not properly dealt with at a local level. He is well known for his intolerance of procrastination at any level of government, that in anyway holds back the development of Omanis. His Omanisation and development program lifted almost an entire nation out of poverty, and put Oman firmly on the world stage. He used his nation's oil wealth wisely and, unlike many other Arab states, developed Oman in such a way that it's managed to become a modern metropolis yet without losing any of its enchanting Arabian soul and character. It's Unique and a jewel in the Arab world. Not only was he an accomplished, and popular, army staff officer, who served with distinction in the British Army. He is a leader who, to a fault, displays humility, generosity, and genuine caring and concern toward his subjects. In addition to which, he has a frighteningly keen intellect that means he commands respect in every international arena. Renowned as being one of the best diplomats on the planet, the Arab League of Nations would be a far poorer place without the presence H.M. Sultan Qaboos bin Said. A great leader.

Mahatma Gandhi could have remained a lawyer, but instead became an iconic leader, who won some of the greatest battles ever fought using nothing more than his defiance and sheer will. He faced down the slings and arrows of his foes armed only the bravery of unarmed rebellion. He turned the tide of colonialism, not by slaughter, but by having an unshakable belief that Indians, and Indians alone had the right to rule India which proved to be a far more effective weapon than that of the thousands of warrior's swords that had gone before him. David against Goliath. A greater battle was never fought and won by any warrior. Mahatma Gandhi. A great leader.

Leaders may be chosen, but there's no guarantee they'll become good leaders. The leadership road is littered with many failures. It's not who leads, but rather, how they led, that's remembered most.

Were Jack Welch to have been overlooked at GEC, he'd probably have stayed on as an industrial chemist, albeit in a managerial role. The great Steve Jobs would probably have become something in the creative world, possibly outside of computing. Bill Gates could easily have had a successful career in programming, or the like. Richard Branson may have spent his working life in sales.

The aforementioned, like many before them, were thrust into positions where they were expected to lead, and had little choice but to pick up the leadership baton and run with it. Yes, one can argue that those with a military background, did receive a form of leadership training, and had witnessed other leaders up close, but that's just a learning curve. Seeing others lead doesn't make you a great leader. Many have trodden that path, and failed to emulate those who have gone before them.

Holding a leadership position doesn't define you as being a great leader, it's the decisions that you make that does. It's easier to follow than to lead, but few will follow a bad leader for long.

Now for the fun part!

Testing your Leadership Skills on the Maasai Mara Pt1

We'll publish the best 3 answers in Pt 2. (Your own work please, don't just copy and paste, that's not leadership) It can be a group, company, or individual effort, but one person must named be as the leader, and sign-off the leadership plan. Many thousands will see your leadership/survival guide, so keep it clean or we won't publish it. Humor's allowed, we want the plan of how you lead your family to survival and keep them safe, and in good health. No more than 1 page. Answers to; newhrmbusiness@gmail.com close date 5/oct/12) Good luck.

Imagine for a moment that you are suddenly taken from the comfort of your home, electricity, running water, internet, mobile phone, Starbucks, trains, planes, automobiles, and money, and dumped onto the Maasai Mara Plains in Kenya. Actually, it seems idyllic, doesn't it?

Sun, open air, freedom, no stress, and a comfortable lodge to go back to after a day's safari. Yes? Sorry. I mean dumped. We're leaving you there to manage everything from your toilet duties, to where you sleep at night, and every night, for the next 5 days. You've landed in the African Bush with only the skills you have now. Come on! How difficult can this be? The Maasai Mara Warriors do it every day of their lives. Yes they do, but they've had skills passed down to them from the beginning of mankind, so they've just about gotten the hang of it by now. We're talking about you lot being out there! Yes you! The only thing most of you know about the African Bush is what you've seen on the TV. Sorry to inform you, but but it just isn't like that.

Most of you guys wouldn't know a Maasai Bushman if he ran up to you and bit you on the ankle! So how are you going manage in this situation? What are your goals going to be? What positive vision can you transmit to team- family, who are all scared half to death, and looking to you for leadership. Oh, I'm truly sorry, no i'm not, I forgot to mention, some of your family has been dumped there with you. On the Maasai Mara. You're their leader.

Do you possess the leadership skills to lead this family into survival battle or not? Are you as good as you think you are? Do you talk the talk, or can you really walk the the walk? Are you are hunter? Or are you just going to become the hunted, a mid-morning snack for a pride of lions?

The time is 10:20am. There's you, a girl aged six, and 2 boys aged 12 and 14. You're a Mechanic by trade, aged 36. Who the hell cares what day it is? They're all the same out here. No Saturday night clubbing or romantic restaurants with your significant other, no popping to Starbucks or an NYC deli for a coffee with your buddies, no Bombay coffee shops. no office chin wag by at the office coffee machine or college cafeteria, or drinking after work with your buddies. Forget the golf-club, the only clubs you'll need here are those you have to make-up for your protection. Come to think about it. perhaps you could do with a 5 iron and a Driver, they may come in handy when trying to ward off a hungry pack of hyenas. Four!!!!!!!!!!

We're looking for leaders to emerge from this exercise. If it's too much for you to think about, you're in the wrong game, you're on the wrong page. Switch over to Youtube, go and watch Adele at the Grammy's, that's the only rolling in the deep you'll ever be doing. http://www.youtube.com/watch?v=0ckIulg1DfQ . I don't care what gender the leader is, neither does the African bush, nor does the pride of Lions, who's territory your intending to lead your family out of, or stay in.

The terrain is as pictured above, except there are hills in sight, trees around you, and you can see some sort of watering hole in the distance. It's nearing the end of the rainy season, and it looks like rain. Just how the Maasai Mara Bushmen and Women like it. What's the plan Leader? It's no use crying for your mummy out here. That'll only attract the lions. Can you lead or not? Are you in the leadership ball-park, or the follow my leader spectator seats?

The scene, and your reserves

There's; trees, water, hills, your family, lions, jackals, elephants, kudu, buffalo, crocodiles, hippos, wildebeest, birds, hyenas, and, just for good measure, a pack of wild dogs roaming around. The grasses are long and deep, in parts, but most things are visible. There appears to be a well trodden trail up to the hills, that are half a mile away. You've just seen a snake slither by, it was black in color, and had Mamba written across its back. You've all got sneakers on, your eldest runs for the school relay team. All can swim, there's an island in the middle of the watering hole, that's 300 yards away, and a strip of land going onto the island that's exposed and seems easy to walk across. Storm clouds are gathering in the distance. It looks like heavy rain's on the way, but it'll hold off until it gets dark.

What you have to hand

We've been kind, we didn't turn out your pockets before we dumped you future captains of industry onto the Mara, so, luckily for you, you still have a few things left about your persons.

Someone has a lighter, and a pack of cigarettes on them, (You didn't realize your eldest boy smoked did you?) another has a pair of reading glasses, all have handkerchiefs, all are wearing their school uniforms, including their ties, each child has a satchel with school books inside, and pens and pencils aplenty. The little girl has Sun factor 20 face cream in her bag, each child has a lunchbox, that's full of goodies, enough for 1 good meal each, each child also has 1 plastic bottle of water.

You have a key chain with a small Swiss Army Knife on it, you're wearing your sun glasses, that are clipped onto normal glasses, and of course, your clothes, if you're a female you're wearing a bra, if a man, a vest under your shirt. You're all wearing belts. You all have coats on, They're shower-proof anoraks with hoods. Every child has a baseball hat in their satchel. It's hot during the day, and very cold at night, with the occasional heavy rain shower.

That's it. You're all set to go leader. You've a lot more to hand than a Maasai Mara Warrior has about their person when they're out in the bush so this should be a walk in the park for you.

Here's the good news. A truck will stop at the watering hole at 9:00 am sharp, for thirty minutes only, in 3 days time. It could be taking you all back to civilization, and a well deserved hot bath, or merely passing by your bones and some well chuffed lions?

I can see a lion licking it's lips in the distance. It's thinking; emm, human chops for lunch, dinner, and breakfast. What a pleasure. I don't even have to chase these Townies around, unlike the Maasai, they haven't got a clue what to do. So I may as well get well earned sleep, and attack this lot after after dark.

This is not just about survival, it's about leadership.

Take out a piece of paper and a pen, and write down exactly what you think you need to do now. Here's a few hints;

a) take stock of the situation
b) what do we do now?
c) what resources do we have to hand?
d) what's the opposition up to?
e) what are our Strengths, Weaknesses, Opportunities, Threats?
f) what do we need to survive?
g) where's the best place to hide?
h) how do I keep this unit together?
I) how do I keep them safe?
j) how do I keep them hydrated?
k) how do I keep them warm and dry?
l) where's the greatest threat coming from?
m) how do I keep up moral?
n) what's our exit strategy?
o) what's the plan?

Good luck on the Maasai Mara. I'm in Shanghai this week, now sipping on a cool Singapore Sling, perusing the menu and wondering what to have for a dinner. Will it be the Seafood Barbecue, or a Spicy Penang Curry, or will I just settle for the Chinese Noodles Special? Decisions, decisions. The nearest you'll come to this, is that cheese and pickle sandwich your daughter has in her lunchbox. Can you do it, or are you all Bla Bla Bla Wannabee leaders. Can you envisage leading, and create a vision that will lead your family to safety. Good Luck, here comes the second round of drinks and my team. Zia Jian .
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The Future's Mobile. The IPhone5

2012-09-20T07:23:00.002-07:00

Following on from this week's launch of the IPhone 5, that was the talk of the office. I took a straw poll of our Consultants and Techies, as to what one of this week's blog topics should be about. Most wanted something written about the mystical world of sales and marketing, and how its fits with the mobile/internet world, that we're all busily trying to figure out. It's a pretty broad brief, where the initials S&M are very aptly applied, but i'll try to cover it in a succinct fashion. Whilst the internet is changing the sales and marketing landscape. The fundamentals haven't really changed. What goes around comes around. So don't despair, nothing has really passed you by that can't be caught-up on. So, without further ado, welcome, to the wonderful world of smoke and mirrors.

Apple's IPhone 5 and the Galaxy S3 allow us a glimpse of the future

'It's here, it's there, it's every blooming where, the IPhone5, Iphone5' Just when you thought they were wavering, up pops Apple to somewhat re-invigorate the I brand. The mobile phone bar's been raised again, but not by too much. Is it a Game Changer No it's not, but that won't stop the hoardes rushing out to buy it on day 1. It's definitely short on substance, and any real changes to the 4s. LTE's been introduced but most people can't get that service yet so it becomes less important. No mobile payment reader. The technology exists, and that's the future, so where is it? 4G, OK but many won't have access to that. Will Apple stock hit $700? Yes, it's a no-brainer and a lot more in the short term. Even fund mangers have to jump onto the Apple bandwagon, especially whilst it's selling out but look for some short selling before it settles down.

However, I'm afraid a lot of IPhone 5 buyers will be waking up 3 days after purchase, thinking; 'why the hell did I pay out all of that cash for this? It aint that much different to my 4s, except of course I can still use all of my gadgets with my 4s because it has uses the old adapter configuration.'

Will consumers pay extra for LTE speed? They probably will. Will the Iphone 5 sell well? I'm betting it'll break the 2 million pre-order mark in 24hrs, and I'm betting 10 million over the opening weekend. Let's hope they have the supplies. The high sales are in part, because customers held off buying the IPhone4s in anticipation of the IPhone5's launch, and what a launch it will prove to be. No one does it like Apple! This is a marketing world, and no one markets a launch better than Apple 'Do you want to know a secret marketing' type of marketing. Pavlov would have been proud of them. Ring that bell.

Considering that 45% of Apple's income comes from the IPhone, does the IPhone 5 justify another massive share price rise. No, I am afraid not. The I5 isn't a game changer, but the faithfull will hunt it down for purchase, so who cares. The Galaxy S3 still outguns it on many fronts including size. Plus the adapter's been shrunken down, that will cause problems for accessories in the short term.

Will IPhone5's design and marketing chic win-out over purpose. Yes, on this occasion it will. It's still the best engineered phone on the planet. Apple's attention to detail is second to none. However, I cannot help feeling that, without the great man at the helm, Apple are running low on fuel as they travel along the innovation highway. Were the Iphone5 to be marked by grade paper standards, the lecturer's comments would read; 'very good, but you should have presented this piece of work much sooner for it to have had the game-changer effect. You can do much better. b+.' Get ready for the IPhone 6. It will have to be a game changer or Apple will be summoned to the Principle's Office for a serious chat about its future.

Where's the mobile world leading us to?

When trying to predict the future, most times, one only has to look to the past. Game changers have occurred before, the telegraph, TV, telephone, mobile phone, VCR, MP3, DVD, the credit card. They all changed the world as we know it, yet we all adapted pretty easily, and now most are just matter of fact. You once required a college degree to set the timer on the old VHS machines, but we got by, someone in the house could always set it. ha ha. The technology has now improved so much so that's it's set automatically and that's how technology goes. It progresses to suit the customer.

My niece is 13yrs of age, and cannot see what all the fuss is about with any new technologies. The internet and IPad is just a part of her daily life. She does her homework on them, researches her lesson topics on the net, and communicates with her friends on Facebook and Bebo. It's no big deal to her, they're just tools she uses. On the other hand, my Father has a morbid dislike of computers, as far has he's concerned they're from an alien planet. Social media. 'Why not just pick-up the phone.' says he. In his eyes, he only has about 5 real friends, and they don't need to know that he's just put the kettle, or has popped out to his local bar for a pint, or that he's now settling down to watch a football game, and doesn't want to be disturbed for thee next 3 hours. They already know this about him, he's known them most of his life. He can't see the benefits of using a computer outside of asking my niece to get him some info. that he requires, or book a hotel for a weekend away. He isn't that interested in what goes on in the world of social media and marketing. Any news is on the TV, on the hour, every hour, and that's fine for his needs. My niece on the other hand couldn't live without her mobile or the net. Heaven forbid they ever go away.

The computer is dead! Long live the computer!

Contrary to popular belief, the internet is still in its infancy, especially when it comes to the mobile side of things. People are still wrestling with ideas of how best to tie consumers into mobile sales platforms, and, indeed, what platforms are best to use.

When Apple jumped onto the larger screen, faster processor, faster net bandwagon this week, They gave you a glimpse of where this mobile world is headed. There's a definite subtext here if you look for it, it consists of; Subscription information, and entertainment networks showing at break neck speed, paid for on mobile payment systems platforms. This is undoubtedly the way ahead.

Let's face it, who wants to lug a lap-top around, when you just as easily store everything on an SD Card and clip it in and out of your mobile phone or MiniPad (that is a third of the size and weight of the laptop) whenever you wish to view a movie or work on a project. Incidentally, Apple forgot to add the SD facility, look for it in the IPhone 6.

Presently, we spend 95% of our internet time looking for information, and/or conducting some form of research. Sure, we're all now adept at booking our hotels through Agoda or Booking.com, and the like, but when it comes to making most of our purchases we're still popping off to the shops to do that. Especially, big price-ticket items.

The supermarket trolley

The game's changing, but most consumers still prefer the experience of popping out to the mall to buy their fayre, than ordering it over the net. Wait a minute! This is really a no-brainer isn't it?. Who in their right mind would deliberately reduce the quality time they spend with their family, and loved ones, in favour of pushing a shopping trolley around a supermarket, bagging the latest 2 for 1 offer, when it takes them an hour to get to the place, and park, and, on average, 4 hours out of their vauable free-time. In addition to which, they end up spending more on fuel, and items, that they wouldn't have purchased, had they have ordered a delivery over the net. Come on! No one still does that do they? Well, I'm afraid to say, the majority of us still do. Old habits die hard. It's as if you're missing something if you don't go to the mall on a weekend. However, the tide's quickly turning.

People still love going to football games, sometimes in the depths of winter, when they can just as easily watch the game on TV in the comfort of their own home, as well as, if they wish to, invite a few friends around to join them in watching the game. It's the same experience isn't it? Obviously not, and it here, in part, is where the sales and marketers of today have their work cut-out, and, where this mobile platform world is headed. This is brave new mobile world is going to be all about the experience, convenience, quick response, speed of downloads, cashless payment processing, films and live games on the go.

Watch it and watch it good

It's all about the experience. Right! HD was a TV game changer wasn't it? So realistic you'd think you were there at the event. Indeed, why even bother to go tot he event. Sorry! HD is just another add-on that we now demand when purchasing a TV. But wait! How about 3D! Now that's the answer isn't it? Now you're really at the event aren't you? Em, sorry again, for the present, that's not the answer either. We're getting there, but there's a long ways to go, and a lot of false dawns to come before we fully integrate the experience with the mobile paying customer. However, manufacturers are beginning to put 2+2 together and getting closer to making 4. This is all about mobile integration. Now you're talking!

Mobile integration

You don't need to be a brain surgeon to work that know that the next great leap that mankind will make is to become a cashless society. The mobile payment platform will eventually replace the credit card as a means of payment. Bar-code shopping, paying for goods at checker-less tills, going through checker-less aisles, will be the way of the future. Sure, there'll be people around to help if something goes array, but for the most part you won't need to interact with anyone when popping down to the local supermarket. Indeed, in many stores it's the case now. The next big move is to integrate this into the mobile platform. Swipe your phone over a bar-code, swipe again at the check-out, Bob's your uncle, you've paid, and you're off home, without so much as removing your wallet, or talking to soul. Now let's take this a stage farther.

If you were to lose your phone/storage device, provided you've uploaded all your data to a secure cloud server beforehand, it's no big deal. You just have to fork out for a new phone, that's probably already insured. Moving on, if you were now to store your; ID, CC, gym memebership, drivers licence, door key, car key, travel pass, club membership, on your phone too, then all you have to do is download the info. and you're up and running again without too much, stress, knowing that you're missing nothing at all except your old phone. Think about it. You already have key-less go cars. swipe card entry rooms, swipe lighting, internet processing facilities for everything from; the IRS, to your bank account, down to processing ID, a passport, and a drivers licence. How hard can this all be? 'May I see your ID sir?' 'yes certainly officer, let me just pull out my phone, here's my passport as well on the next page.'

'This is all about mobile integration. That's where we're heading.' Look at the mobile platforms available, and look at what's already out there in a secular services format. This is a no-brainer. They'll all be linked to the mobile platform. Take a look at how Apple had to evolve the IPhone. You don't need Mystic Meg to gaze into her Crystal Ball to tell you where we're headed. Look closer and you can see the future for yourselves. Integrated mobile platforms. Hell, we at proguidemc.com can link every department of your business to your mobile or IPad in such away that you can sit on the beach in the Bahamas, whilst running your business that's located in New York. Business Process Management. By the way, we don't pay for the tickets to the Bahama. haha. Hello!!!!! The future is screaming into your face. Integration! Integration! Integration! That's where it's headed!

Sales and marketing landscapes are a'changing

It was back in 2002, when Google's revenues only amounted to some $439.5 mil, with a profit of just $99mil, (did I really write; only!) at a meeting between, Mel karmazin, the then president of Viacom (which owned the likes of CBS-Paramount Studios, MTV et al) and the Google co-founders, Larry Page and Sergey Brin, as well as the then CEO of Google Eric Smidt, (Karmazin had gone there at the behest of a trusted investment banker associate, Nancy Peretsman, who had convinced him that Google was a wave maker, and thus worth taking a look at with a view to buying it outright, or investing heavily in the same) where Karzmazin coined the phrase; You're f------ with the magic!

That cry was let out after Karmazin had just been given an overview of how Pay Per Click and Pay Per View worked, by Page and Brin. Incidentally, Page arrived late for that meeting, and was somewhat out of breath, due to the fact that he rode into the office, and the meeting, on his Rollerblades. He was wearing shorts, and a washed-out Tshirt. He obviously felt it was suitable attire for a meeting with the world's biggest media mogul. Ha ha. What a culture shock that must have been for Karmazin, who was use to people waiting on him, he suited up to the eye balls, and his only real exercise that day consisted of him walking from his office to his chauffeur driven car. Wouldn't you have just loved to have been a fly on that meeting room wall when Page made his entrance?

Looking at the various screens doted around Googleplex, (Sun Microsystems old offices in Bayshore CA, http://www.youtube.com/watch?v=Sn9TBa_GGS0 ) Karmazin could see the undoubted potential of Google as he watched 100s of 1000s of Google searches being made worldwide in a matter of seconds. Whilst some countries were blacked-out, due to lack of power and/or Google presence, much of the planet was merrily googling away.

Karzamin was salivating like one of Pavlov's dogs as the Google clan explained the pay-back and theory behind PPC and PPV. 'All well and good, said Karzamin, but can you give me a ball-park figure on revenues? Obviously, advertising is not an exact science so a ball-park figure will do.' He was somewhat taken aback when Page replied; 'well actually, here, at Google, it is an exact science, we can measure everything we do; performance, pay-back, number of views, clicks, returns,links, content, and costs. What is it that you want to know?' Page, also outlined that it was Google's policy to favor neither advertisers nor companies, but rather, let the searchers rank them in terms of search preference. Let the algorithms do the work in accordance with the amount of searches made for the site or product. In short, the more searches made for your product or company the higher up the PageRank tree it rises.' SEO (search engine optimization) was borne.

Page also stated that it was Google's goal to stamp-out the age old adman's line 'I know half of my advertising works, I just don't know which half.' Which came as quite a shock to Karmazin because this was the kind of non statistical world that he came from. Who the hell would want to give a client this type of information, let alone show them that the ad performance could be measured. He was used to seeing his sales reps sell ad-slots, for the likes of the Super Bowl, at million dollar prices, even though both parties had absolutely no idea of how effective the ads were going to be, or even what values they added to the brands on the screens. As far as he was concerned, measuring ad performance wasn't part of his or his sales staffs remits. If you were a corporate player you just had to have a slot at the biggest event in the sports advertising calender, or become an also-ran. You either sat at the top table or you didn't. Take it or leave it. The more you paid for the privilege of advertising on that day the better Viacom liked it.

The Google clan were quite appalled by the lack of measurement, and unsystematic approach, the ad-world took when selling ad-space to clients, and saw it as somewhat unethical, and more as a slight of hand than good business. As far as they were concerned; if it's clickable, it's measurable.

Measuring Success the Google Way

There's a whole industry grown up around measurement, Mori Poll, customer surveys, online,on street questionnaires, etc, etc. Hell, isn't Google simply an online advertising survey, of, who prefers which brands? They are, to a degree, measuring brand performance.

The thing I like about Google's philosophy is no matter what task their engineers are given, they always ask the same question; 'Why does it have to be this way?' As opposed to, the age old; that's the recognized way of doing things.' Successful marketers, sales and ad-persons have to think in this same way Google do.

'Yes, yes, but you would have to be half mad to dream me up'

Said; The Mad Hatter in Lewis Carol's wonderfull novel; Alice in Wonderland, and this aptly applies to marketing, branding, and sales management. Let's just take an example of something that happened whilst I was penning this blog article;

An ex girlfriend text me, and verbatim this is what she texted; 'I was cleaning out my attic and I just found a couple of pairs of shoes you bought me a few yrs back, Dior and Gucci, they're like new, still in their boxes! What a gorgeous surprise! I feel like SJP. Woo Hoo!!!!'

SJP is a reference to Sarah Jessica Parker who played Carrie in the hit series Sex in the City. Jessica actually became a brand of sorts, and now has her a perfume named after her. Who the hell would have thought that at the shows conception?

The show's cast was phenomenal, the scripts good, and it captured the imagination of a mainly women audience, although I enjoyed the show too, but don't tell anyone in the office that, ;-) . It became a brand name in its own right, that was based upon a book by Candace Bushnell. The series ran from 1998-2004 with films to follow, and has remained in the psychy of a generation ever since. It centered around exotic brands and the sexy, exotic world that these imaginary characters supposedly lived in. It had it all! Brands, fashionable clubs, gorgeous girl,s who purveyed a, who the hell cares what people think attitude, handsome guys, fashionable apartments, and clubs, affairs, relationships, the lot. Whilst it was a break from reality, it wasn't too far-fetched that it didn't strike a note with the girls around town, or, indeed, the housewives in many small towns.

Was it marketing? Certainly! Designers qued to dress Carrie, and the girls. Was it branding? Of course! Jimmy Choo shoes became synomimous with the show. Was it sales? No doubt about it! Girls ran around trying to find High St copies of Carrie's latest looks. Any new bag that appeared on the show was an instant hit.

Now, I am not going to say that you can sell Widgets by dressing them up in designer sleeves, but there's the makings of a strategy here to help sell them, as well as a definite sales and marketing pattern that begins to emerge. 'We're all in Sales and Marketing.' Then there's the mobile platform tie-in. It's quicker to order those shoes, and that must have bag they've just shown on Sex in the City. If I don't have to leave where ever i'm watching the show to do that. What's at play here is customer targeting and that's the key.

I digress for a moment. I was once asked by a client to sit in on a meeting and give my input to the product marketing strategy that they were discussing. I turned upa little late as I had been held up in traffic and was only asked to go to the meeting at the last minute. As I entered the room the meeting had already commenced. All knew me, and I gave the customary nods and winks acknowledgements, grabbed a seat and set about following the brief. They were going over a slide show presentation of the product which I had seen before so I hadn't missed too much. They finished up, and then started to discuss marketing ideas that they had penned at a previous meeting.

My Masters Degree is in Psychology, albeit mainly organisational, but at least I could give input into such topics as; the psychology of sales, consumer preferences, branding and sales issues etc, that I had gained in the field, which I felt may enhance their marketing strategy. However, it quickly became apparent that no one in the room, except myself, held any expertise in the field of marketing and consumer behavior, other than the fact that they were consumers themselves who purchased things in their day to day lives. Statements like; 'my wife told me she wife buys this because of that.' 'and this product line because it leaves her feeling this way or that.' 'Here's some numbers we've worked on that fully outlines our customers demographics, inc. their disposable incomes, that will help us to better understand who it is we are really targeting.' where being banded around as a formulation route to the marketing strategy end game.

I was sat quietly in amazement at the naivety of it all, when someone turned to me and said; 'you're the guru James, what do you think?' I replied; 'one, I'm not a Guru, but thanks for the compliment, if it was meant that way, and two, does anyone in this room have any marketing experience because there's quite a few topics and strategies missing here before you can even think of moving on to advertising the product.'

A stunned silence, then the chairwoman replied; 'well we've all bought similar things in the past, which should mean that we have some valid input, and really, how difficult can this be? We'll pic the brains of the ad agency when they come to the next meeting and having dealt with them before, I know they'll have a lot of good ideas, but will be in need some direction on the way we aim to go with sales, and that's what we're really doing here. This is just a focus group of sorts. After all, isn't that what all marketers do? They conduct focus groups, and surveys and the like, and look at the demographics which is what we have done.

Well, actually, says I, a marketer would do that, and a lot more besides, because he or she would have to have a knowledge and understanding of the likes of; business to business marketing, corporate finance, logistics strategies, marketing management, consumer behavior, sales psychology, market research, retail management, global product placements, product and price management, and advertising strategies, none of which I have heard mentioned here in the last hour. So please don't underestimate the task you have before you. Simply having a good product and a nice presentation isn't going to guarantee you the sales. you require in order to make this a successful product, not without some very slick marketing that goes way beyond local radio, a local TV interview, and a few glossy adverts. Tell me the brand names of the last 5 TV dinners/processed foods you ate this week, and, unless you purchased your food from the likes of; McDonalds, Burger King, or Subway, and washed them down with a Coca Cola or a Pepsi, I'll wager you'll all struggle to remember what food you ate let alone the brands, which should give you an indication of what needs to be done to raise consumer awareness of a brand. ' Harsh words, but in truth, the hardest part of any product launch is the building and perpetuation.of the sales cycle.

Brand and sales

Apple is not Apple just because it happened to make an IPhone that caught the public's imagination. It has a history of building quality innovative products..There is a whole marketing strategy behind the brand's development. When marketing any product you have to embark upon a journey of analysis before you begin on the advertising trail. You need to know;
a) what is it that you're selling?
b) who's your target market?
c) why would they want to buy from you?
d) what's your expected market share going to be?
e) what's the successfull competition doing or not doing?
f) where do they fail and succeed?
g) what's the true cost of marketing this product?
h) what's the logistics of it all?
I) where's the product placement strategy?
j) what are your real margins going to be?
k) how is going to stand out from the rest?
l) where's it's identifier?
m) It's a face-cream! So what? There are a myriad of them out there. Non of them ever say that they don't work. Do they?
n)where's the market growth opportunities

Then there's; sourcing, sales strategies, launch plans, resourcing, supply chain management, customer service, sales and support, distribution, production, logistics. It may be easier just to farm all of this out under licence, or contract most of it out, but still need to survey the market you're going into.

You're not going to market any product without a detailed plan. Period! By this, I don't mean endless hours putting together detailed analysis of the product, and it's competition, but at least begin with a detailed SWOT analysis (Strength Weaknesses Other Threats) of your product and it's competitors.

Understand what markets you're heading into. What's it's future. What if it's a success and you get 20,000 orders overnight. How do you cope? Is it a Groupon bad offer syndrome that can't be filled ala the company that offered cup cakes at 50% discounts only find they got overwhelmed with orders and had to work day and night to fill them, which meant they were working at a loss.

To sum up

The net has changed everything, sort of, but the fundamentals haven't changed. The mobile world is taking over the role of both the way we pay for our goods and the way we'll have them delivered in future.

Media and information is going mobile, and becoming much more web integrated. content, quality, and usability will be the key to its success. The mobile phone of the future will be our mobile TV, wallet, payment system, ID card, Passport, air ticket, boarding pass, gym membership card, car keys, and anything else we want to fit into it.

Sales and Marketing, whilst sticking to the fundamentals, has to be cognisant of this new mobile world and the road it's going down. They need to understand how to get a consumer's attention and spend whilst they're on the move, and convince them, Groupon style, that they should buy there and then. In future, store owners will try to capture your custom based upon your location revealed by your mobile phone. 'Hi, I see you're near us, pop in for a coffee in the next hour and we'll discount it 20% on production of this phone coupon.' 'Our sale's just started, and we're offering you an extra 5% off everything if you bring in this mobile coupon today.' It's going to be all about the here and now.

James Adams is the Director of Operations for Proguide a major worldwi, de management consultancy and productivity software company located in the USA, Argentina, and the UK. Overseeing projects in all regions worldwide. He has (and in some cases still is) consulted for the likes Coca Cola, ASDA Walmart, British Rail, Scot Rail, LUT, First Engineering Peterhouse, B.A, Aerolineas, Metrovias Rail, CLIBA, Chrysler, The American Red Cross, Seat, HMS, Taco Bell, Rio Tinto, British Steel, Cadbury, to name but a few, which in itself is a diverse consulting platform that affords one a varied intellectual management knowledge base from which to draw upon when instigating varying methods of management strategies in order to help clients achieve their goals. Know more about him here.

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Creating a Winning Team

2012-09-10T02:23:00.000-07:00

An Abject Lesson in Management

It's no coincidence that Sir Alex Ferguson's team (The manager of Manchester United Football Club) came from behind to win in the last few minutes of the game on Sunday. Nor is it surprising that they do that with almost frightening regularity. Sir Alex marked his 1000th game in charge of Manchester United by watching yet another team he's built snatch a victory from the jaws of defeat in overtime. When other teams would have shut-up shop as soon as they scored a late equalizer and been happy to settle for a point. Manchester United do what they always do, they went in for the kill and secured the win. Why? Because it's instilled into them that it's the Manchester United way.

The odds against it happening with such regularity tell you that there's something very different going on at Manchester United, than to be able to somehow dismiss it as being a result of them being able to field some of the world's most talented footballers. Actually, it's far from that. It's simply an abject lesson how great management techniques, and teams, can produce remarkable sustained results, and it's something that Sir Alex Ferguson has in abundance. He's quite simply the best in his field. Whilst he's no shrinking violet, and does not suffer defeat, nor fools, lightly, he's as magnanimous in defeat as he in victory, Congratulating his opponents in defeat, and deflecting any plaudits that he receives in victory to his team members, coaches and fans. It's not about him winning, it's all about Manchester United winning, and they all apart of that.

The winning mentality

His mind-games are the stuff of legend. Love him or hate him, you'd definitely go over the top of the trenches with this guy leading the fight. Whilst he would have probably had the same success at almost any other top club he'd have signed up to manage. The fact that Manchester United was a sleeping giant that had underachieved, and had lived in the shadow of its neighbours Liverpool FC, as well as was builtin philosophy to play with flair brought about by its other successfull manager, and fellow Scot, Sir Mat Busby, (who rebuilt a successfull team, after his legendary Busby Babes were all but wiped out, and cut off in their prime, in a tragic air crash whilst returning home from Munich on a snow ridden evening, after playing a European cup game, a tournament they were almost certainly destined to win.) meant that this club was a match made in heaven for Sir Alex. Whilst they had by far the largest fan base in the country, Man United they hadn't won the league for some 21 years prior his arrival. Like Jack Welch and GE, the two went together like butter on toast, and both have had more than a few upheavels on their way to success.

Indeed, listen to either man talk and you immediately get a picture of clarity to the cause of winning, and see the burning passion and drive that got them to the top of their respective professions. To reach the top and to stay there for so long shows that both men are a very different breed of manager that we can all learn from. Both wear their management heart on their sleeves, and it's easy to see why they command such fearsome loyalty from the staff, and respect from their fellow professionals. I suspect that a month spent with either of these guys would better than a year spent at any business school.

They both have an innate drive that bonds them and there staffs together in one cause, which is to win and move on to achieve bigger and better things. Neither man minces his words nor fears ruffling a few feathers as they strive to hit the mark of excellence. What you see is what you get. Give your best, and they'll back you to the hilt. Slack at your peril. In their eyes the business/club is bigger than any one person in it, including themselves, and they expectt all within the organisation to understand that. Any adversaries who underestimate the task of taking on any of these two titans of management are going to lose the fight. Between them, they've slain more foes than a school of seasoned Gladiators. They never tire of the entering the arena.

As Jack Welch did at GE, Sir Alex has bred this winning mentality into Manchester United Football Club as a whole. Everyone's a part of the team, from the coaches to the cooks, from the admin staff, to the board, through to its fiercely loyal global fan-base. They're all a part of the Man United team, and both Sir Alex and the club make sure that everyone is aware of that. It's Team Man Utd not just the Man Utd team. It's become a mantra; Win, and we win together. Lose, and we all suffer the defeat.

Last season they suffered the harshest of defeats after they had the Premier League Championship snatched from their grasp by their newly Arab funded rivals Man City, who, with practically the last kick of the last game of the season, when Man Utd had done their job by winning on an oponents ground, had to leave the field having heard that their bitter rivals had just scored in the dying seconds of their game to take the league on goal difference alone, same points total, less goals scored. This, after United had wrestled back a 12 points deficit to get back on top of the league, whilst missing key players through injury, only for them to then throw away a 4-1 lead at home to Everton, that handed back the initiative to their bitter rivals. Something that was not lost on Sir Alex as he began recuiting for the new season. He purchased the league's most prolific striker, Robin Van Persie.

As the new season begins, SIr Alex finds himself back in the management arena, bloodied, but not defeated, having added yet another valuable lesson to his vast management lexicon, that'll now goes straight to his armory for processing, and, as if anyone needed reminding, that this old Gladiator was up for the fight, up pops his latest signing, to score twice in the dying minutes of a game they were losing, and left the arena with yet another late win under their belts. That left the onlookers in no doubt that this old Gladiator's definitely not putting his sword down anytime soon, and will continue to be the formidable foe he's always been.

The time on the match clock has little bearing on how team Man Utd plays the game, as long as it's ticking there's an opportunity to score. Sir Alex demands nothing less. The fact that there was only seconds remaining on the clock when they scored yet another winning goal is no fluke. It's just the Man Utd way. It's never over until it's over for any of Sir Alex's teams.

Managing the team

Whilst no player is safe from his wrath, everyone is treated as an equal, but handled in very different ways. The epitome of good people management. Sir Alex gets the best out of every team member. They lose a key player at this club, no problem, it's viewed as their loss, not the club's. The ManUtd club train still leaves the station to the same old destination; Top of the League Junction. Despite his years Sir Alex is still driven to succeed by the sight of his troops in battle. He's learned that age really is just a number. As long as he keeps fit, and stays healthy, and his good lady wife, Lady Ferguson, an unsung hero, still backs him to do what he loves doing. Then he's there for his Club. On the long journey to the watering hole, it's better to have the company and assuredness of a well travelled older elephant, that's made the journey many times before, than the speed of a young buck that hasn't.

What is it that keeps ManU on top of their game? Can we learn from the same? Certainly! This is all about an end product, management, teams, people, resources, buyers, marketing, sales, customer service, brand management, and an awareness that what is done on the field affects what they do off it.

Managing and developing the business and brand

It's no coincidence that the Nike tick is emblazoned across Man United's shirts, or that Chrysler have now bought the advertising rights to the same, or even that DHL features on ManUtd's training kits. (normally you'd never see those shirts outside of the training ground, however, in this age of craving instant information, it has turned out to be a master stroke by DHL. The DHL Logo appears almost daily in some tabloid or other as they report on top players at work, being signed, or on the come-back trail after injury. As players spend longer in their training garb than any other, the exposure DHL gets is very high indeed. Nice one DHL. http://www.youtube.com/watch?v=gT0QGgd7vbg

Learn from those around you

United have been quick to exploit the sports science and facilities that being partnered with the likes of Nike offers them. Training techniques, body science, running analysis, body endurance, fitness levels, stamina thresholds, diet, nutritional study info. has helped fashion a new player care and advancement regime that's used by the players and staff alike. Also, being partnered with such global heavyweights as Nike, Hublot, Chrysler, DHL, Singha Beers, Turkish Airlines, Smirnoff, STC Saudia Arabia, BWin, Thomas Cook, Epson, et al, opens up a whole new world of marketing, and global expansion strategies and experience that were not previously available to them without secifically buying in the same. Don't just trade with your suppliers, and sponsors, see what you can learn for the them. Benchmark your business fitness against theirs. Look at how their success, marketing and business startegies can be aligned with yours.

In David Gill, Man Utd have a Chairman, who understands that results on the field are a key factor to their achieving results off it. The two go hand in hand in helping to forge key partnerships and alliances that opens many doors of opportunity. The club's success is in no small part down to his hard work, expertise and vision. They're a formidable team, Sir Alex and Mr Gill who is another man at the top of his game, and one to watch. United need to keep him at the tiller just as much as they need to keep Mr Ferguson fit and healthy for a good few years yet whilst they identify his successor.

The much maligned American owners, have, I suspect, brought a touch of marketing and growth finesse to a franchise that has proved to be a very shrewd investment on their part. One has to wonder about the logic behind the likes of wealthy Arab and Russian investors who appear to be ill-advised when it comes to buying the right soccer franchise, in favour of the one's that always seem to follow the same poor formula, which is one of massive investment, that only ever seves up limited global success due to the fact that those involved in the process do not fully understand the interaction between the brand, the fan-base and it's true global appeal. Whilst for the most, Arabs are canny traders, (let's face it they were founding fathers of world trade and haven't forgotten trade lessons learned over the past millenium). When it comes to football franchises they seem to be very poorly informed by people who cannot marry up the business potential with the sport. AS such, as soon their clubs suffer poor results, off comes the head of the manager, only then for his replacement to come in, and demand yet more resources and more spending takes place that leaves a pile of poorly purchased over valued over paid assets in their wake.

Risk-aversion not risk taking, and the mapping of key skills

The Premier league, for all its faults, understands brand awareness. However, the debts being run up by many of its member clubs, will, I'm afraid, undermine a lot of the good work done unless they take steps to cap spending. If it doesn't change the whole system will fall apart. Most clubs, their managers and boards simply do not understand how to develop their clubs organically and feed off the brand in the way the likes of Man Utd has done. More risk-aversion thinking as opposed to risk taking is required. Whilst the likes of Asenal have followed a prudent financial model. Most other clubs are too busy striving to become instant winners, the new Facebook or a Google, and are busy putting themselves into debt when a much more synergised holistic approach is required. Man Utd have debt, the difference being, theirs is very manageable, and, they have a very firm and expending business model.

It's difficult enough to initially keep a club in the premier league once it's arrived, it's a very steep learning curve. A new style of play has to be adopted against teams that will exploit the slightest weakness they see. Sometimes you're forced to defend where you'd have taken a chance on attack in the lesser leagues. This is where a good manger earns his or her coin, knowing when to strike, and when not to. However, once established, then comes the demand to move the club onto even more success, usually at a much quicker pace than is achievable, without very heavy investment taking place, and a lot of luck.

It's no coincidence that the same clubs are around the top four of the league year in year out. The lesser clubs need to understand why, it's not totally about spend power, the league's littered with expensive failures. This is about management skills, coaching, business linkage, and facilitative management that's at the crux of any success. It is imperative that all have involved fully understand how the brand, supporters, players, managers, coaches, board, and scouts all interlink.

Many boards in this business arena become somewhat adversarial through a lack of trust borne out of an ignorance of the game that has in the past led them to ill advised overspends. Many managers feel that their boards constrain their winning strategy through a lack of spend commitment, and do not understand why or how to overcome it.

There's a lack of understanding of just how the management is supposed to direct and control a group that leads to the proper coordination of an end goal. The likes of Manchester United have figured that out. Whilst the most important individual at the club is the manager. Sir Alex and his board arec in agreement about how they are going to go about achieving their collective goals. There's a synergy that runs far deeper than simply coaching players to beat opposing teams that includes; What's the competition doing? How do we maintain and further our standards? Where's the long term growth strategy? How do we manage the likes of; quality control, safety, increasing income, sales and marketing, staff numbers and competency, medical issues, sports medicine, the assets under our charge, discipline, diets, scouting networks, player statistics and information. What do we do with our human capital knowledge base? Can we use it to our advantage? HWere do we go from here? What do you need us to do for you in order that we achieve our collective goals?

Effective team Planning

It can be argued that managers are only focussed on short term results because they're under short term contracts and governance. Also, that the pace of demanded success only hastens their hunger for a quick fix. Boards need to understand and demand that, within their tenure, managers work at leaving behind at least a structure for organic growth inline with the boards goals and show evidence of this.

One of Manchester United's key strategies under Sir Alex has been to revamp and encourage youth development that not only ensures lower cost growth but also ensures that youngsters within the club become ingrained in the Manchester United way of winning. Youth development has to be a part of organic growth. A team that's grown together, with the addition of key players and key skills is bound to become a more effective unit. Therefore, Managers need to understand that this is as much about organic growth as a whole it is about player purchase. Most managers will think in this way but have the added undue pressure of being terminated if results fail to materialise in the shortest possible time.

Whilst the statistics bear out the fact that you don't have to spend the most amount of money to achieve the most success, borne out when one looks at the likes of Sir Alex, Arsene Wenger of Arsenal, David Moyes of Everton, Dario Gradi of Crewe in the lower leagues, who have built successfull teams without crossing certain spend thresholds. However, these exceptions prove to be few and far between in a world where journeymen footballers go for millions more than their true values. The difference between the latter aforementioned managers and the rest is that they possess the ability to get the best out of players who are not always the best in their respective positions, but rather, they overcome this handicap through hard work forming effective units. Their teams become formidable units that are hard to break down. Good managers managers build effective teams.

Spend management

In any enterprise, spend management is managing how to spend money to best effect in order to build products and services. The term is intended to encompass such processes as outsourcing, procurement, e, procurement and supply chain management. Since the "spend manager" could have a significant impact on a company's results, it has been advocated that this manager have a senior voice in running the company. In football, as in the likes of IT this can prove to be an expensive exercise. Remember the Millenium Bug that was conveniently swept under the rug by some embarrassed senior staffers after it was found to be the most expensive hoax of all time. Like-wise football's littered with spends that have brought a club to its knees. Rangers FC and Portsmouth to name but two in recent times.

Give me an open cheque book and I will give you a team that can compete at the highest level. However, keeping it there will pose a very different problem. The best managers at sometime control the spend whilst achieving results.

If they are to succeed, mangers need to understand the business of spend management, as well as possess a keen eye for players who can consitently deliver results. The likes of Manchester United do not stand still, so it's not easy to catch them up but you can learn from their ever changing model. In their eyes the club doesn't close down after it's last winning game. It's a living breathing global entity that operates 24/7 365 days per year. The sun rises somewhere all the time, and that brings potential customers to their door.

Sit at your computer anywhere in the world and the Man Utd official website is not only telling you about the club that it wants you to be a part of, and what's happening on a daily basis, it's subtly dragging in you in for the sale. like Kaa in Jungle they pull you in until you're bedazzled by the glitter and glamour of it all and subtly go for the sale. Your support is called for in a variety of ways with an array of slickly promoted high, must have, fashion products including shirts, Hublot watches, travel, VIP match day ticket packages, Tours of the stadium, cars. They let you who's just signed for your team, and what everyone's doing today at the club you're a part of. http://www.manutd.com/en.aspx it's no mean feat that United where valued back in 2000 at about £87 million pounds. Forbes estimates their worth to day at about $2.3billion and growing. They're doing something right. What price Sir Alex's worth to the club. Untold!

This is no local club that offers a few football shirts and match day tickets for sale. This is a global brand at the top of its game. Walk into any of it's Man Utd stores worldwide and you find an array of high fashioned well manufactured Nike shirts and other products with Man Utd's name sublty sited on them. You can wear these shirts to the local club and be regarded as some football mad thug. These are chic expensive well designed shirts that live with the best of them. It's now chic to have a team you support. They've learned from their sponsors, Micheal Jordan and Tiger Woods wear Nike, so too does President Obama, and Cold Play. Soccer's not just a working class sport anymore. It's the biggest business on the planet, and it's getting so that if you don't know anything about it, you're out, rather than in.

Players go for more than SMEs. Top players command bigger salaries than the top Wall St execs. Their appeal is global, Ronaldo, a player Sir Alex, nutured and developed, is now regarded as one of the hottest properties on the planet, as is Brand Beckham, another of Sir Alex's ex charges, who Married Victoria, and the rest is history. Ronaldo, Messi, Beckham, Giggs, Zidane, Giggs, Van Persie, Rooney, Henry, Suarez, Tevez, Drogba, Lampard, are as easily recognisable in Bangkok as they are in Europe. All go by one name, it's enough. The soccer brand has arrived, and business has to sit-up and take notice. It's cracking China with great aplomb, and will eventually crack the USA where the MLS has now begun to take hold. Why pay hundreds of dollars kiting your kid out in expensive protective American football gear when you can spend a few dollars to buy him/her a ball, and they can play the game anywhere without the need for crash helmets. It's a no-brainer!

What If strategic Planning?

To keep throwing money into a bottomless pit business that's never going to realise the investment made is just plain bad business, and bordering on meglomania. This is where much of soccer has to get its act together, and be quick about it. In order to prosper clubs needs to understand how holistic management feeds into the organic growth of their business, and how the likes of; Apple, Nike, ManUtd, Adidas, Coke, Pepsi, Lego, fashion the brands.

Soccer executives who would normaly shy away from excessive spending in their day to day management of their own businesses, without firstly performing a lot of due diligence. Yet they have become seduced by the promise rather than the reality of the fortunes on offer. They need to get back to basics, and really understand the marriage that's on offer here.

Last minute forced multi-million, fingers crossed, trades have to stop in favour of proper scouting and development networks. A big signing is fine, if hedelivers, and some can often generate a great income for the club, but too many over priced assets are being purchased in the hope that they'll deliver when the statistics say otherwise.

A manager rushes out and buys a player for $50mil dollars, only for him, the manager, to then lose his job, and a new incumbent takes over, doesn't like the look of the expensive new asset and sells him for half the price the club paid for him. It's nonsense! business suicide and very poor strategic planning. Where was the due diligence on that particular player trade. What variables were considered before purchasing him? What was the long term goal? Where is the what if scenario?

The likes of SIr Alex Fergusson has made some bad buys, and sales, along the way, but that's been dwarfed by his successes. Business owners need to take cogniscance of the expertise that's available to them before they take an expensive leap of faith into un-chartered spend waters. Just has business needs to benchmark itself against the rest. It needs to understand the holistic approach that the club's taking to develop all of the business not just bring players in, that, if they don't work out, are sold on at bring and buy prices.

Scouting, coaching, youth development, sports science, discipline, brand image, marketing, sales, product distribution. It's no different to ASDA, TESCO, Wallmart, Danone, or Coca Cola. The same principles apply. Zidane, Beckham, Giggs, Henry, Tevez, Messi, Ronaldo, where all scouted at some time, and they all cost very little first time around but became huge assets. Whilst it doesn't always work out that way, the key to progress certainly lies in getting the right product at the right time and in the strategic planning of the trade. What if? What If? What if?.

Brand Loyalty

Steve Jobs was a legendary leader who understood the power behind the team, the brand, and how to connect them all together. Under his stewardship, brand Apple, who were once dead in the water, have created a fan/customer loyalty base on a scale that was unheard of before in any business. There's a big difference between Apple brand loyalty and the likes of Microsft and Google. It could be argued that Apple where the first company outside of sports franchises to really create a global customer fan-base. People drink Coke, and to a degree they're brand loyal, but there's a big difference between a customer staying loyal at a $500 price-point, and one who shells out 50cents when they're thirsty.

Apple product launches are eagerly awaited by Apple fans. They're not just press launches anymore, but a presentation to Apple fans of how we, Team Apple, are beating the other teams out there. Hoots and Hollers rang out as Steve Jobs flipped the next cool screen to reveal even faster smarter screens that moved this way and that. He almost mocked the competition with Apples innovative styles. He cared about his customers who are a part of Team Apple. Hey team Apple members, you're going to look pretty cool carrying this around. Everyone's going to think you're cool when you own one of these. Pull this out and those who don't own one will run into the corner like Little Jack Horner. Welcome to Apple cool functionality.

A mentality quickly took a hold that you either love Apple products or you don't. Apple has exploited it. It's us against everyone else.You're an Apple team member now, not just a customer. Are you with us? Are you Apple or PC? Rather like Man Utd, there's no in between. You're either with them or against them, and they're both pretty exclusive cool clubs to be members of because they're winners, both being the biggest companies on the planet in their respect fields. Indeed, in terms of its stock price Apple will shortly be the biggest ever company on the planet, and expect record sales and one hell of a hype when they unveil the IPhone 5, and whilst Samsung is giving them a run for their money and making Apple re-think the screen sizes, battery life and speeds. It's cool factor will carry it through a long while yet. Both entities are there their fans/customers. The marketing message is; You're welcome to join our team no matter where you are on the planet. We'll even travel to China, Africa, America to play for you or sell you our products because you are all a part of our team. They stay in contact with their fan bases. Invitations will shortly go out for the IPhone 5 launch, and the buzz will begin.

That's really what social marketing is all about. How do you benefit from it? What do you really get out of it? Is it just a tweet for tweet's sake, as 95% of them are, or are you really gaining a benefit from having an interaction with those you're tweeting. What's the real pay-back? Where's the real brand growth? How have your actions, as a team, really affected your sales and marketing strategy? Facebook sells friends, most of whom lead a normal working existence, busily tweeting about what a great time they're having the 6 nights a week they're usually staying in watching TV, and worrying about the next electricity bill that's about to land on the hall carpet. How do you engage with them? How do you interact with them? What can sell, or give them for free, in order that they stay loyal to your brand, and in better times buy from you? How do you initially tie them into your brand and keep them there? Can you really get them to buy something when most don't have a great disposable income?

Lessons to be learned

Soccer clubs are just the same as any other busines. OK they're in the entertainment game with a somewhat loyal following, built up over many years, but if they're not beating the competition that loyal following soon dwindles. There are definitely winners and losers in this game. Getting out of the Championship League into the big time Premier League holds some of the richest rewards in football. As does then making it into the Champions league, which brings even greater rewards and recognition, but the steps along the way have to be the same that are taken in any business entity. Spend more than you're earning, and at some point you'll cease to exist. Period!

This is about managing the product in such away that it has sustainable growth, not just one-off success. To do this you need to begin at the source. Too many board rooms fail to ask enough pertinent questions of their coaches. You're not going to get far questioning Sir Alex Ferguson's team selections. Good or bad, that's his call alone. However, how he sees the club going forwards. What's his future team growth plans? What does he see in a new player he's after? What's the potential of that asset in terms of re-sale? How many are going to progress from the youth system? Has he enough scouts? Are they bearing any fruit? Who's the best of them? What does he need to further develop the skills of the players he has? How are they improving their skills? If not, why not? He'll be happy to give you this low down because he'll be asking the same questions of his coaching staff on a day to day basis. That's what he does. He's the most senior person at the club, and well knows that the buck stops with him. Other questions the Boards should ask of themselves are;

a) what do we do in order to better compete with our rivals?
b) how does the opposition play the game in business terms?
c) what do the successfull clubs/businesses do that we do not?
d) have we got the right product?
e) are we selling it in the right way?
f) how can we better market our product?
g) how do we maintain and increase our market share?
h) what's really going on in this business?
i) where do we see ourselves in 5 yrs time, what assumptions lead us to this prognosis?
j) how good are the players we currently have?
k) How can we make them perform better?
l) How do we incentivise players and the management team?
m) what's the real return on this investment going to be?
n) How do we improve upon our current position?
o) How can we improve upon last weeks performance?
p) Where are we on succession planning?
q) What if, what if what if?

Get it right and it's rich pickings. Fail, and it's just another failed business.

_________________________________________________________________

About the Author

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Building Successfull Quality Action Teams

2012-09-05T21:56:00.000-07:00

Leadership is about what happens when you are not there.

Recently, I was asked by a client's divisional production director for my thoughts on how best get to work on resolving problems that are being highlighted much more quickly than before, as a result of us installing our Business Process Management Software (BPM) at a new plant that now falls under her control. (I've changed the job titles, genders, divisions, and plant structures in this section, so as not to compromise the company in question. However, the scenario is real enough, and quite common throughout many industries.) Show me a company with issues and I'll show you Fantasy Island. De plane boss! De plane!). Whilst the client loves the interactive control and feedback the BPM system now affords her and her staff, it has flagged up productivity costs and processes issues that were, prior to the installation of the BPM, only really visible at a local level.

These production and costs issues included some areas that are somewhat out-with her control, including; outside building, safety and engineering maintenance sub-contractors, who had it within their powers to not only load the division's budget, with various add-ons, out-with the set-price call-off contracts they hold, but also, more importantly, hold up production brought about by their somewhat poorly constructed monthly maintenance plan, that upon investigation, not only failed to automatically reschedule critical work in a proper time-frame, but also failed to properly schedule planned work, due to the ways they matched resources to locations and jobs, or should I say, didn't.

Upon closer analysis, using our planning and scheduling system VIPER (Verifiable Improved Productivity Easily Reviewed) it became obvious that their lack of using a proper planning system often lead to the closure of areas, to undertake maintenance tasks, that they usually completed well before the allotted area was due to re-opened, only then to return, some weeks later, to an area in very close proximity, and then close the same, to perform tasks that, if properly planned and scheduled, could have easily been completed on the earlier visit to the adjacent site. Indeed, plugging VIPER into just 25% of their scheduled maintenance plan indicated that is was only 34% effective against the available man-hours on offer. All in all, a planning disaster, and a costly one at that.

Whilst the contractors did, of sorts, have a scheduled maintenance plan, it was neither automated, nor effectively produced with the plant's, or indeed their own productivity levels in mind. Local plant production figures were returned on a weekly/monthly basis, which included the caveat; scheduled safety maintenance closure; Monday 22:00hrs thru 08:00hrs, or whatever time happened to be the case. It was then accepted as a given that nothing much could have been during this period, except to grin and bear it, and set aside any costs incurred. Call-off contracts had been negotiated, and indeed, renegotiated, and as far as everyone was concerned an, 'it is what it is' mentality prevailed. Fait accompli. Not quite.

As soon as the BPM kicked in, it began to show that these planned shut-downs were affecting production in other areas of the company, that thus far gone unnoticed at a higher management level. However, the local levels were well aware of it.

I'm minded of a comment made by a manager at a related holding, who said; 'our figures were down on those two particular days because we had fewer deliveries to process, my thanks go to those up the road who can't seem to get their act together on planned safety maintenance shut-downs, and, yet again, overran on a maintenance shut-down which meant we received 3 fewer critical deliveries on that Monday which also affected Tuesday's production. Anyway, it's no skin off my nose. I just implicate them on my daily production review log. But it pees me off having to constantly suffer their planning inefficiencies. However, I think I've now solved the problem. I've instructed my Procurement supervisor to up our plant's stock levels of all critical stock items.' 'By how much?' asks I. 'Oh, about $60k' 'Has your director signed it off?' ' he's no need to as it's well within my authority.'

It's easy to jump to conclusions about this manager's statement, but in his own way, by increasing his stock-levels, he is, as he sees it, preventing a loss of production at his plant. He in no way sees it as one loss increasing another. In his eyes, the stock will eventually be used up, but obviously, unless he has a similar problem, it will not. He's responsible for production at his plant, and is a very good operator. As far as he's concerned he'll do all in his power to maintain his plant's production levels, and if that means upping stock-holdings, then so be it. It's difficult to argue with his point of view, and, no matter who you are, you're not going to convince him otherwise unless he buys into a solution you come up with.

I've seen the same thing occur on oil rigs where rig managers would order millions of dollars worth of kit, well before it is required, just in case something went wrong with the delivery process, that had happened in the past. Trying to convince them to reduce these stock holding periods was no mean feat. The had to buy into a solution, and be incentivised to do it, as well as be a part of the decision making process. They hold the key to the production door, and, like the aforementioned manager, no one is really going to challenge them in case production levels fall.

Let's mirror the above scenario across 20 plants or rigs, and you begin to get a picture of large extra stock holdings, as well as a general mistrust of the supply chain as a whole. The Silo effect has kicked in, and is here to stay. Whilst the manger's daily production report would flag-up any losses made at his/her production unit. If it's not properly tied into the plant's overall reporting structures it'll usually just go unheeded, or at best be deemed an anomaly that has been solved by the likes of the aforementioned 'localised increased stocking solution.' Would I have done the same were I in his shoes? Probably. Poor planning problem deemed solved! Not quite. Increased costs to the company? Most certainly.

Offering up the Solutions

Whether you're an analyst, consultant, supervisor, manager, director, or plain old CEO. One has to take a holistic view when undertaking major changes within a given area of any business. Those changes have to be rolled-up as well as down. If you ever wanted confirmation of this you only have to take a look at the recent banking crisis in all its forms. It's not enough just to analyse problems presented before you, then offer up carte blanche solutions without the input of those concerned. if you do, it'll more than likely turn out to be a one hit wonder ineffective solution, that'll not only almost certainly fail, but also get a lot of peoples backs up, as well as make it a lot harder to implement any meaningful solutions next time round.

With the help of the QAT we solved the problem at the above plant. Their recommendations were that production units should be tied into the sub-contactors plan more closely, and that both the company and the subcontractors should install VIPER as their planning tool. Which was done. Productivity has increased by 42% in the building works area, along with closures times having been reduced by some 35%. Based upon this, a new contract has been renegotiated at a 20% reduced rate. Stocking levels have reverted to pre installation levels, with a stocks review well under way. All in all a successful result. Did we do it? Certainly not! The management structure identified the problem. Formed the QAT, who analysed the problems then recommended, and trialled the solutions. We merely facilitated the process, which is something they will quickly become adept at. One has to understand the ins and outs of the tasks to properly deem what's critical, and what's not, which is key to membership of the team. Reality not theory is the driver.

The past is just that

    Rather like the Black Box found after a plane crash. It's great to analyse and learn from, but unfortunately for those on the crashed plane it is of little use. I have a golden rule for my staff when consulting, they're not there to find stuff and make it a pretence for blame, and recriminations. Unless, it's fraud or the like. You won't get very far if you're analysing processes, finding faults within the same, only then to dole-out blame to those involved. Ultimately, you have to work out solutions with people. You ain't going to get very far with them if you begin outlining to management that they're a major part of the problem. You're not their to manage the staff, rather, you're assisting them in arriving at a solution. Likewise in management, it's no use constantly blaming the staff without properly analysing the problems that they have with the systems they're using. This is as much about buy-in, as it is management control. Analyse-Consult-Agree. Then Plan Do Review

Cure lies in the buy-in of the users.

    Seldom do people arrive at work, only to then act like automatons going about their daily duties, punching in and out, without possessing an operations point-of-view on how things could be better worked. Indeed, it's usually quite the reverse. In most cases it becomes a discussion point around their dinner tables, and/or at their local bars and clubs. 'You won't believe what happened at work today. Those upstairs haven't got a clue about the problems we face in that store!'

When undertaking projects I constantly have to listen to the; 'oh it's them upon high, whoever they may be, they're always coming up with some plan or other, that usually doesn't work, and fizzles out after a time. They just don't understand what we have to put up with down here, or even how it all works.' Whilst it's usually only based upon perception there's usually a modicum of truth in that statement, and if it's allowed to persist it undermines change initiatives, it needs to be eradicated if effective change is ever going to take place.You don't just pull a book of solutions scenarios off a shelf to fix problems. There's a myriad of personalities, perceptions and dynamics at play. However, with certain calculated steps anything is doable, and there's usually a precedent to consider.

As a Analyst, I oft walk into areas where they initially perceive me as being some sort of smart-alec, Armani suited Consultant, as they often affectionately put it, the old jibes are still the best ;-), parading around their work area, analysing this and that, about to tell them what they should and shouldn't do in order that they become more efficient, cost effective, and competitive. Only then to run upstairs to the higher echelons to tell them my tales of woe, recommend changes, pick up a cheque, say my goodbyes, and leave them to get on with it. Actually that couldn't be further from the truth. I seen it done, but those sorts of changes, and projects never perpetuate anything at all, except waste and resentment and the likes of myself have to repair the damage that other consultancies have done in the past.

You lose the trust and respect of the workforce at your peril. Agreeing-off what has to be done with the staff involved, and coming to agreement about possible solutions is a much more effective strategy than coming to your own conclusions based upon what you've seen in a snapshot period. Anyone can find faults, but understanding why they're occurring is not that easy, and requires a lot of help. 'Don't throw the Baby out with the bath water.' You just never know what's going to come through that problem door and unless you're very well briefed about it, It will invariably bite you on the rear-end.

Successfull proper change implementation lies within the work force itself, and is not, as many assume, wholly effected by external forces although they play their part. The old adage; 'you can lead a horse to water, but you can't make it drink.' aptly applies here, except people think a lot differently to horses, and it's my experience can dig their heels in a lot harder too if you get it wrong.

The employee gene pool

There's a lot of untapped employee initiative that is very underutilised, and in many instances employees are battling with a lack of proper systems, or indeed, in many cases far too many systems, as well as a poor communication structure, and a lack of managers who have neither the time, nor in some cases, even the know how to tap into the knowledge pool on offer. 'Under-estimate the power within your employee's knowledge pool at your peril.'

Benchmarking or QAT

It's no use benchmarking against oneself, and holding only preconceived ideas about the competition. The QAT team is designed to solve problems that arise which hold up production, or are a drag on business cost effectiveness and the like. It's not a catch-all that allows you to take on the world and win. That's a benchmarking issue. However, the two combined can be a pretty powerful tool indeed.

You can argue that looking at producing widgets for less is not the same as eradicating problems that are frequently occurring during the manufacturing process, but the later is going to reduce costs and flag-up problems within the process. However, it has to be said that both may arrive at the same conclusion, which is, that you have to buy a new machine in order to fully reap the benefits and rewards that you seek. It's then all about what machine and investment you make, which is a totally different issue. What can you afford? What does the competition have? What's it's output? How many shifts can you put to work it on?

You can build the most gorgeous bar in the neighbourhood, hire the best bast staff around, but if its sited within a bad area, where no one has any money to spend, it ain't going to make a dime no matter what your staff tell you to do. Selling a pint of beer for a $1:50 only brings in those who can only afford to spend that on a pint of beer. They can only consume so much before they fall over, so it begs the question how profitable can you really be, unless you start to brew the beer yourself and then sell it elsewhere.

Review review review

Whilst employees have jobs to do, and can't all suddenly be tasked to give their input about every problem that arises. Certain persons are too often under utilised valuable resources when it comes to problem solving issues, and actually do it at a local level on a daily basis.

At a Board Review, some one once asked me; 'how the hell did you get the whole region to agree-off new signal maintenance schedules, and times, when we've been at it for years with absolutely no sign of agreement.' The answer; 'I didn't, they did.' Hello QAT. It's the facilitation and agreement process that achieves the end results. Not the number crunching, and spread-sheet world, that is somehow supposed to present a fait accompli that everyone finds acceptable, and instigates without comment. You need to be mindfull of what are you trying to achieve and who are the best people to help you achieve it. It's not much use agreeing off a strategy with a coach without consulting the players. They have to be involved at some stage. 'Hi guys; we're playing a 163 formation today, just get on with it and adaptwill you'. I'm afraid doesn't work. Get ready for a pasting.

Nothing, and I mean nothing, of any significance is going to be implemented effectively without the buy-in, of all, or, at the very least, most of those involved in a process that you're attempting to change. If you assume otherwise. My suggestion is; 'go and lie down in a darkened room, with a cold towel lain across your forehead until you come to your senses.'

This is not 'The Charge of the Light Brigade' who's valiant victims ran into the valley of death, at the behest of some commander sited on a high far away from the madding crowd. I'm afraid, those days are over. These days everyone checks their equipment before they embark upon such an epic adventure, and it better be good kit that you're providing them with or there's going to be some descent in the ranks, or, at the very least, you're in for a real ear bashing when they return from the front.

I am never going to offer a client a solution to a problem, or a BPM, or productivity software, or a multi-faceted planing system, and say; 'this is it, out of the box, tried and tested, this is how you have to use it, it's a turn key solution, you'll have to change the way that you work to suit, but that's just how it has to be.' That's a recipe for disaster. It's like asking someone to walk into the middle of a pride of lions, saying to them beforehand; 'Just walk into that pride of lions. They won't hurt you! Trust me! We've tested this Lion Ward-off Stick many times before, it works a treat. All Lion prides are the same. Here's the video we made earlier that proves it works. Go on, get walking.'

A person once said to me; 'I often wonder whether you're motivating or manipulating us into assessing then evaluating and finally selling these changes to the staff.' Actually, in all walks of life, to get things done, it's a modicum of both. 'We're all in sales!' Whether that's at the local drug-store, Chrysler, Ford, Heinz or the UN, we're all selling solutions to problems. The trick is to get the people who really know what the problems are to assist you in providing the solutions. Their input is invaluable. 'Beth stacks trucks in C bay. How come she has fewer customer and driver complaints than any other stacker? What's she doing differently?' I would think that Beth would be the best person to ask, not her manager. ACA PDR

Leave perceptions at the door

Before I enter a work arena I'm often forewarned, by some Manager or Director or CEO or other, that; 'such a body is a problem, watch out for him or her, or, you'll have to get it by him or her first before you even attempt to get it by anyone else.'

Whilst in some circumstances a heads-up is fine. I'd rather not enter any arena with any pre-conceived prejudiced ideas about staff attributes and personalities. I find, as with children in the classroom, it just muddies the learning waters. 'Johnny's a real pain, I sit him at the back away from the other kids. He just looks out of the window for most of the time, and as long as he's quiet it leaves me to concentrate on the good kids who want to learn.' Actually, Johnny may be very gifted child, many of ignored kids are, and it could well be a talent going to waste. There's millions kids out there who have fallen by the wayside. Failed by, so called, teachers, who couldn't actually teach a dog how to sit, let alone truly assess and motivate a child's need to learn.

Perception is just that, it has it's place in the fight or flight syndrome but is always prejudiced in some way or another. The brain's a wonderfull thing, but at times it's a little too clever for its own good. Respect those you're about to undertake work with, they'll usually know a lot about that work arena than you ever will unless you've spent the same amount of time in it. Disrespect them at your peril. Their faults, or faults within any processes you're analysing will come to the fore soon enough without the need for you to form any pre-conceived ideas before you even begin to tackle the problems. It's never easy implementing change, but you're half way there if you leave your perceptions at the door, and respect those whose help you're trying to elicit.

Forming the team

Whilst sanction for major changes should always be agreed off, and rolled down from upon high. At the early key stages it's much easier to find solutions to problems if you begin at the coal face. I'm oft amused, but never shocked, when I watch some program on TV (yes, sometimes I do get time to watch TV, ha ha) entitled; Undercover Cover Boss, or the like. Whereby, some CEO goes incognito to work in some part of his/her company. Then. Shock horror! Discovers it's not all what they assumed it to be, and is also having to to listen to everyone complaining about head office initiatives that have been implemented, that's supposedly reduced costs by 10% percent, or whatever, but haven't actually done anything of the sort except pee everyone off, and slow up production 10 fold. So they're now ignoring big part of the so called initiative.

Some of it seems mindbogglingly inept, but it doesn't take into account that those CEO's have a myriad of tasks to perform on a daily basis, and have a whole management structure under them to supposedly deal with these issues. It also doesn't take into account the whole organisational structure and cost savings drivers that are pushing the business into a somewhat disjointed organisation that survives when it's all good, but, rather like an oil tanker, takes a hell long time to turn around when it has to change course. I've always maintained that I can make at least a 10% saving in any company's operating costs. Usually a lot more. The larger the company the better the return. This is not arrogance it's reality. It doesn't mean to say that any of them are in any way bad. Quite the reverse, but I can focus on all aspects of the business without having the hindrance of having to undertake any other jobs of work. It's an advantage. Having said that, I can't save anything without the help of the staffs within any company I consult for. They hold the keys to the savings and efficiencies doors.

It's just not good enough for some CFO to come to a board and say; 'well, we looked at installing an internet provision (or whatever capital expenditure) throughout our fleet of sailing and canning ships, that are out at sea for up to 3 months at a time. It's just too cost prohibitive as it'll cost $250k, that we don't have, to install and doesn't really offer any cost benefit. OK, says the CEO, fine, it's a non starter then, let's move on. However, had he/she have fully analysed the problem and it's real cost effectiveness he/she would have arrived at a very different conclusion, which is; because we have no internet connections on our fleet employees are leaving after their initial 3 months tours of duty to join other fleets that have internet connections, because having no way of contacting their families for 3 months at a time is just too much for them to handle. This results in us having to spend an extra £300k per annum on recruitment and new recruits training costs. You've got to understand what the knock on effect is before you institute change or not.

The Team

I could harp on about how forming a team hones peoples skills in decision making. How the brightest come to the fore. How profitable the teams ideas are, Which to a large degree is the case. However, the first object of the exercise is to create a team of key workers who can get about providing a solution to a problem that's hindering profits not what there future profitability is. Whilst membership is not about seniority. To begin with I always find a smattering of Supervisors and Managers not only gives a QAT prowess, it also focusses minds. Placing people of different seniorities in charge of a QAT, helps to develop their skills but at first it's a slowly slowly approach with a seasoned pair of hands at the helm. However, it should never be about a manager taking over and managing the team as if he/she is at work, he/she may not really appreciate what the problem at the coal face is, and others will quickly lose interest in backing the initiative as they see as just another management solution.

Create groups with a mixture of talent that is likely to be able to sell the solution they've arrived at to a higher based management team. Indeed, the leader should have access to senior management, if not the CEO-CFO. That gives the QAT credence, as well as puts it under pressure to produce a proper solution in a proper time-scale.

Hold a QAT review after any meeting to make sure that it remains on track. Give feedback to any minutes and notes produced. List ideas, no matter how off the ball-park they seem to be, on an ideas list. Leave comments on the ideas; please elaborate on this. What's the knock-on effect of that? Did you calculate the costs of this initiative? So and so forth. Build that into a QAT library of sorts. Most armies plan war scenarios and document the same. It's called a Battle Plan. Who did what, when and why? Believe me, the QAT will throw up many answers to future problems so keep them to hand.

Understand that the team may come up with quite radical solutions that should still be given some thought. After all, if someone came up to you and said; 'Look, I have this idea, you take a piece of cloth that you wrap around your neck and it has no other purpose than to just hang there. I think it will sell in its millions and we should invest in the project.' You'd probably dismiss the idea as fantasy. Hello the Tie. If there's a process there's a possible problem. If there's a problem, there's a solution. If there's an idea it just may be a good one. After all. Taco trucks where the first businesses to realise that Twitter could get a message out to their customers quickly and cheaply. We're on our way. We're outside of your apartment block now. Today's special offer is.

Size does matter

For it to be effective a QAT has to remain focussed on the issues it's been tasked to resolve. Don't swamp it with too many persons or you'll kill its effectiveness. 5-8 works fine, with guest visits to brief the team from other sub-members on topics that the team is not fully up to speed on. Higher numbers and it becomes very hard for people to have their say.

Understand that there may be department dynamics at play here. I have seen people join a team with the explicit instructions from their manager that nothing is to be said that could reflect badly on his/her section or indeed about the section. However, a good communique sent out from upon high to mangers/supervisors beforehand usually heads this off at the pass. Especially if they're involved in the nominations process. Also, the team should invite managers to drop in to view the team at work. Frequent drop-ins by the teams Sponsors are always a boon. It shows what they're doing is being taken seriously.

Finally, remuneration. I have run hundreds of QATs, all have been successfull. many astonishingly so. I have never regretted forming any one of them. When it came to rewarding the teams I always found that the odd weekender meeting off site, or a QAT dinner, paid for by yours truly, always gave the team a boost, and was a great way of saying thanks for their help and expertise. When I look back at one team that saved a client over $11million dollars in a year, it was scant reward for their services, so I negotiated bonuses for them. However, what you'll find is that certain people will come to the fore out of these teams and promotions will loom large, and that in itself begins to motivate the teams. Incidentally, the team that saved a client over $11mil dollars, where all eventually promoted.

Have fun. Good Hunting

James Adams

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Feel free to contact James if you have any requirements in the field of project analysis. temporary management, management consultancy, Software as a Service, and/or training seminars at

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Tailoring Training Programs Based upon Employees Needs

2012-07-28T19:19:00.000-07:00

Implementing training programs without a valid bases can be like purchasing a doll for a boy - valueless, time-wasting and cost-ineffective. Programs are meant to address the gap between the ideal and actual, and this can only be realized if you don't skip the first and critical part of the cycle: the Training Needs Analysis (TNA).

Training needs can be identified by communicating with employees on three different levels of the organization, as explained below;

Requirements Identified by Individual Employees

Getting first-hand information from employees through focused group discussions, questionnaires, surveys and interviews is a good start for determining who needs training and what kind is required. If employees truthfully respond to these TNA methodologies, the HR Department will be able to figure out the skills they need to enhance the values they need to nurture, and areas for their improvement.

Feedback and Additional Input of Supervisors

Supervisors can contribute significant feedback to the training design. They can objectively evaluate staff performance against standards, and identify operating problems, and other factors that may affect productivity. They are also aware of the best practices in their own area of responsibility which can serve as good reference during a program's formulation.

Organizational Direction Set by Management

The direction set by top management can also guide the HR Department in properly formulating training and development activities. For instance, if a manufacturer of women's apparel aims to put up another factory for men's clothing in a year's time, the company will need more supervisors for regular operations. With this goal in mind, the training team can begin grooming potential rank and file employees for promotion and put a training schedule together well ahead of time.

During evaluation of the training program, the trainees will be asked how much they have gained from it. Has it addressed their skill inadequacies? Did it help improve their efficiency at work? Are they better employees because of the training? If all the answers to the questions are in the affirmative, then it means the TNA process was effectively conducted.

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About the Author

James Adams. Please feel free tocontact James at newhrmbusiness.com As the Operations Director at proguidemc.com he is always willing to discuss undertaking an Analysis, for both long and shor term contracts in either Management Consultancy or the installation of Proguide's myriad of SAAS productivity and monitoring software installations that are tailored to all industries regardless of their sphere.

Customer-Focused: Driven to Delight -Mercedes Benz

2012-05-31T11:28:00.001-07:00

This is probably the epitome of genuine customer-focused customer service philosophy there is that any business should embrace.

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Maintaining Productivity While On the Road

2012-05-28T06:41:00.000-07:00

A good number of location-independent individuals are now freelancing their way into their own fields of expertise. From consultants to writers, traveling while working is considered a blessing by the majority. The challenges of working on the road often include unstable Internet, lack of office equipment, too many distractions, and serving clients with different time zones as yours. Below are handy tips proven to make you stay at the top of your freelancing form and improve your productivity while you find yourself at bus terminals, train stations and airports.

Charged Up!

Delayed flights or getting stranded in some exotic land is not uncommon for the wandering freelancer. Anticipate these not-so-desirable occurrences by making sure your mobile communication devices (e.g. iPad or tablet, phone, laptop) are all charged up. Furthermore, do yourself a favor by tagging extra batteries for those gadgets that your freelancing life cannot live without. A solar-powered charger may just save you from losing your high-paying clients. You do not want to be stuck in an airport for five hours with a client deadline to boot.

Pack Light and smart, too!

This tip may be quite hackneyed but it still holds true for those who would want to enjoy the road rather than make a big fuss over their luggage. The same applies to location-independent employees.

Avoid last minute packing by compartmentalizing your luggage such as having a kit for toiletries and another for gadget accessories such as extra card readers and a spare cord for your laptop. By packing light and smart, you save yourself the hassle of tracking down bags and luggages that house unnecessary pieces of clothing or accessories. It is also best to make use of clothes that are fast-drying as well as items that are multi-purpose.

Print it Out!

If possible, carry a print out of hotel reservations, flight tickets and driving directions. You can never tell when your GPS will fail you nor you’ll find yourself stuck in a rural area with poor mobile phone reception. You do not want to lose a client just because you wandered around a city for hours without knowing where exactly you’re heading.

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About the Author

James Adams is the Director of Operations for Proguide a major worldwide management consultancy and productivity software company located in the USA, Argentina, and the UK. Overseeing projects in all regions worldwide. He has (and in some cases still is) consulted for the likes Apple, Coca Cola, ASDA Walmart, British Rail, Scot Rail, LUT, First Engineering Peterhouse, B.A, Aerolineas, Metrovias Rail, CLIBA, Chrysler, The American Red Cross, Seat, HMS, Taco Bell, Rio Tinto, British Steel, Cadbury, to name but a few, which in itself is a diverse consulting platform that affords one a varied intellectual management knowledge base from which to draw upon when instigating varying methods of management strategies in order to help clients achieve their goals. Know more about him here.

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Attracting and Retaining Employees through Competitive Pay Scales

2012-05-16T01:00:00.002-07:00

One of the critical human resources responsibilities is to maintain a competitive and yet content workforce. To achieve this goal, the organization must create a compensation program that is broad enough to encompass the needs of all categories of employees. It must be reviewed and adjusted regularly to ensure that they can hire and retain exceptional personnel.

To be able to establish a competitive salary scheme, here are three basic HR strategies to consider:

Analyze and Evaluate Jobs Objectively

Job evaluation is a strategy to analyze each position and compare it with other jobs within the company. This is the key to establish a fair package because the management will be able to distinguish who has greater responsibilities, accountability and exposure to physical hazards. As a result, they can assign positions to different levels with a corresponding pay structure.

Implement a Salary Benchmarking Plan

Salary benchmarking is a method of comparing salaries of positions across companies in the same industry. The gathered information determines whether the employer is overpaying or underpaying its employees. It's usually done through DIY surveys, availing services of HR consulting firms or using paperless, web-based tools.

Assess Company’s Financial Capability

The benchmarking results let the company know its compensation status in the market. If the business is prosperous, the management can choose to carry out a scheme that is above the mean to attract outstanding employees. Otherwise, they must focus on promoting other strengths of the company to maintain its desirable image in the industry.

A good employee compensation package has been proven successful in addressing excessive work-related stress, in stimulating employee motivation and in encouraging higher level of achievement. With these benefits, the tips above are definitely good ways of nurturing the most valuable capital of the company.

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How to increase your bottom line using Invoice Factoring

2012-05-03T05:17:00.000-07:00

Business is too tight these days. As many companies are closing their doors and leaving behind uncollected AR (Accounts Receivable), it is noteworthy that some startups and small businesses are seemingly thriving. While product differentiation, excellent customer service, organizational competitiveness, captured niche market, and effective management may rank among the success factors in these companies, however, the most common underlying factor is having an efficient AR collection system.

Invoice Factoring has emerged into one of the best AR collection systems or alternatives for companies that are going through an exponential growth or are having cash flow issues but they cannot obtain immediate funding elsewhere. If you are a startup or a small business owner, here are three compelling reasons why you need to embrace accounts receivable factoring to increase your bottom line:

Smart way of managing your Accounts Receivable

Why be hard on yourself? Why spend time worrying because you placed all your eggs in one basket, that is, investing on a few major accounts, when you can be guaranteed of collection. When you partner with an invoice factoring agency, you are in effect relieving yourself of the angst and anxieties of when and how to collect your AR. It is smart business management in all sense of the word. Also, it gives you the capability and opportunity to operate in a prompt, effective, and efficient manner. And you can…

Spend more time selling

This means, you can channel all your energies and resources to getting those sales and inking those project contracts. More sales, more revenues, and more collection. But of course, the latter is no longer a part of your major concerns because it has been taken care of by your business partner –the invoice factoring company that you have engaged solely for that purpose.

Selling is the lifeblood of your business. I believe that it is an obvious cliche worth stating. There is no greater joy for any entrepreneur when you can sell with the assurance and confidence that you will be paid. Not only that, you can also extend a longer credit line to your customers. This means lesser risks on your end, and you can fire up the furnace to get those products sold and those services reached your target market without worrying about collection afterwards.

Streamlined Operating Cost

Many startups and small businesses are still enslaved by the idea that invoice factoring is for the big boys only, the corporate giants who can afford the perceived monumental fees. But that was decades ago. Before, invoice factoring is the common alternative for financially struggling companies to bail them out from a worsening cash flow. But lately, this financial technique is widely being used by smart financial managers for long-term financial planning, healthier cash flow, and for business expansion. Why? It is because the rates for invoice factoring are competitive compared to other conventional funding methods or business loans. More so, compared to taking your time to go out and chase your debtors, invoice factoring is cost effective in many ways.

Increased Bottom line

I can actually think a plethora of reasons why you need to use invoice factoring. But suffice to say that, it will definitely increase your bottom line. When you get your AR on time all the time, spend more time selling, and lowering your operating costs, this could only mean increasing your revenue and profits as a direct result.

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The Mobile Employee

2012-05-03T01:33:00.000-07:00

Credit: Infographic by Enterprise mobile consultants at [x]cube LABS

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Impact of Social Networking Sites on Recruitment

2012-04-23T15:18:00.000-07:00

Social Networking Sites Changed the Way we do things

With just over 1.43 billion social network users in the world (an increase of 19.2% from 2011), it looks like that social networking is still spreading over the four corners of the earth. With sites first appearing around the late nineties with networks such as sixdegrees.com, no one could have guessed just how big social networking was about to become. Although Six Degrees closed down in 2001, that was not before it was sold for $125million and raked in a total number of 1,000,000 active users.

Unsurprisingly, the fluctuation of networking sites have come and gone over the years. Where once powerful Myspace was worth around $500million it was sold to the likes of Mr. Justin Timberlake for a total of $35 million in 2011. However, with behemoth sites such as Facebook (current estimated worth between $75-100 billion) and Twitter ($10 billion), there’s no end for social networking on the horizon and the popularisation of such sites are only set to rise in the near future.

It is their sudden and blistering emergence onto the world market that means we still don’t fully understand the full impact on what social networking has had on our lives our just where it will lead. Unsurprisingly, social networking is now affecting the recruitment industry with surprising results; thanks to a recent survey which interviewed 300 randomly selected employers, we can now just catch a glimpse on the impact that social networking is having on the recruitment industry and the people who are applying for jobs all over the world.

More Employers Use Social Networking Sites in their Recruitment

Out of the 300 employers that were interviewed, it was found that 47% had viewed a candidates social networking site only moments after receiving an application and did so to save their own time. Another 27% viewed a candidate’s networking site after an initial conversation and 15% after a detailed one. All in all, the survey found that a massive 91% of employers had used social networking to screen potential employees. Out of all the sites, 76% had used Facebook, 53% had used Twitter and 48% had screened their candidates on LinkedIn. For the people out there with all their party photographs from university and the last weekend, a quick page viewing could be a career halting decision. Thankfully however, we have the statistics to discover just what happened once the employers had screened the candidates, and what happened next.

Out of the 300 employers, 61% of them rejected the candidates once that they had viewed their social networking websites. 11% were rejected because of inappropriate photographs, another 11% because of inappropriate comments and 10% were rejected because they were seen to be taking drugs on their profiles. Of course, the latter is probably not something that you or I may have difficulty hiding, but we all have photographs where we are found in questionable situations. Setting a privacy setting on your Facebook or Twitter may be a good solution to this.

Interestingly, and the highest reason of rejection out of the lot; 13% of employers rejected candidates because they were found to have lied about their qualifications during their application and were exposed through their social networking page.

Of course, the news isn’t all bad and there can be benefits to owning a well-kept social networking page.

Out of the employers, 68% of employers had hired applicants after viewing their social networking pages. Impressively, 36% had hired because they found their candidates to be creative, 33% because the candidates had shown good communication on their pages. Interestingly, another 24% of employers had hired because they found that the candidates had accidentally omitted a qualification or an award from their curriculum vitae.

Our Take

It is always recommended to keep your social networking page clean and interesting if you are a candidate. For employers, it is also interesting to know, besides the social networking resources, that there is also powerful software out there that is available that can aide your employment search such as Recruitment Software with CIPHR.

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Transforming Corporate Culture

2012-03-19T04:10:00.000-07:00

How do organizations make a name for themselves, get a lion share of the market, and racked in billions on net revenues? Should they do it the Toyota way by creating a rigid Total Quality Management System (TQM)? Or should they do it the GE way by having a Visionary CEO who will take them to new heights like Jack Welch did in his heydays? Or should they do it the Apple way, by not listening to what the market says and instead create a product that the market will love like a cult?

No. Although they could try any of those approaches and probably succeed, but they missed the crucial element –corporate culture. Different approaches but what made them succeed is the underlying culture behind the way they do business.

Corporate Culture Defines Organizational Success

If at any rate your organization has adopted any of the business models I have mentioned above, it is perfectly okay. Besides, these corporate giants showed us a better and proven ways of doing business. However, before you exhaust your resources into getting into their moulds, look within your organization and see what you have that makes you different and competitive. More often, you will be surprised to see that the values you try to espouse are your edge. These values determine the kind of corporate culture you currently have or would like to have.

Those 3 giants turned into household names because of the corporate culture they imbibe. And I believe that’s what defined theirs success, what made them conquer their market, and what made them weather economic crisis after the other.

Corporate Culture Matters

Corporate culture is inherent in any organization. It matters. Lisa Jackson and Gerry Schmidt, both corporate culture experts and co-authored, “Transforming Corporate Culture: 9 Natural Truths for Being Fit to Compete,” were right when they said that that culture is not something you build, it is there when the company crawled out the belly of its startup mother or its founders’ novel ideas. What makes it a reckoning power for any organization is when you transform it into a competitive edge. I believe Jackson and Schmidt put it bluntly,

Culture is in the eye of the hurricane: The calm, powerful, centered ability of your organization to win in the Darwin game. Culture is what allows you to be in enough alignment to adapt quickly, build sustained growth, and compete in a global economy (even when you are local).

Corporate Culture is Key to Organizational Competitiveness

It is observable that more and more organizations these days are focusing their business strategies from relying on tangible resources to the intangible such as developing values, creating reliable knowledge bases, management systems, strong brand and a mission-centric organization. Apparently, this has been brought into light by highly competitive and successful companies who have embraced a culture where everyone in the organization are adapting to changes, putting emphasis on creativity, transparent communications and shared values. This is not an overnight phenomenon. These organizations invested time and efforts in creating this kind of culture.

This is what Jackson and Schmidt argue in their book, that,

Culture transform through a deposit of very specific and consistent actions, over time these deposits are like compound interest: They exponentially foster an environment in which the business can thrive and grow.

Indeed!

While that is easy said than done, the underlying impetus to drive an organization to excellence in the way they do and produce things for their customers is creating a corporate culture that embraces values that are supportive of their business objectives.

Transforming Corporate Culture: 9 Natural Truths for Being Fit to Compete

Here’s the hard reality, business is changing. As technology evolves so quickly, and so is the way of doing business. Yesterday’s effective business models do not scale today. The key is transforming your culture to compete. Jackson and Schmidt have written a powerful book that encapsulates effective cultural interventions that work. They drew from their wealth of experience helping organizations find their competitive winning identity.

Drawing their case through parsing nature’s natural way of growth and evolution, the book, Transforming Corporate Culture, proffers that developing culture within the walls of the organization takes the same process. Extracting nine lessons from nature and using them as a tool for diagnosing organizational and business issues, and highlighting stories and experiences from CEO’s, they have aptly demonstrated that creating a competitive corporate culture is key to any business success.

Indeed, change is inevitable and that an organization can’t fight it. If it needs to survive the Darwinian credo of competing in the market, it has to evolve into a superior organization through its culture for culture is a power to be reckoned. Thus top management and their teams need to understand what culture is, how it drives competition and how to reshape their organization's ability to dominate their industry; exceed their revenue goals; find better ways of serving their customers; and allowing their employees to participate in making these into realities.

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Can an ERP Save your HR Department?

2011-12-14T13:10:00.000-08:00

Is your HR department more disorganized than a 19-year old college student too busy playing God of War to care about his homework? Don't know whether the holiday hours, work schedules or pension benefits are in effect? It might be time to fully automate your business with an enterprise resource planning (ERP) system!

ERP systems can work with all facets of your business to make sure that your business processes are smooth and in tip-top shape.

So what exactly IS ERP?

ERP takes all of the management information, both external and internal and integrates it through the entire organization, including the finance department, the customer service department, the marketing and tech support department, the manufacturing department and the sales and service departments. Putting all this information into a big database, ERP can help any industry

ERP Systems, generally speaking, have four main features:

An integrated system that does not require upgrades, because it's constantly being updated in real- time (or close to real-time).
A database, common to all departments, that can effectively run all the applications needed.
A look and feel that is consistent for all the modules used.
The system can be installed without comprehensive application installing or data integration by the IT department.

What components of HR can be helped by ERP?

Practically all of them! HR's job is made that much easier since an ERP system can:

Ensure all payroll is accurately put into the system.
Ensure that employees are properly trained.
Ensure all benefits are accrued properly.
Enable the HR Manager to see that the 401(k) balances are applied to the correct employees.
Show who was recently hired and the proper pay rate to give to him or her.
Keep Diversity Management up-to-date . This ensures that departments are diverse enough to allow inputs and outputs from people from multiple backgrounds.

What are the specific components of an ERP system?

ERP systems generally consist of features such as: Customized Reporting, Workflow Management Internet access (for the purpose of gaining information and document management).

Some people are talking about "Best Practices". Should I be concerned?

Best Practices are the software's way of agreeing with the vendor's ideologies on how to run the company's business processes effectively. As such, complying with these regulations actually becomes easier when an ERP system is implemented. If your company does electronic funds transferring, such as through Paypal, ERP systems actually help facilitate that because they can effectively be coded into the system and be shared among multiple businesses.

Does ERP take a long time to implement?

Yes, but it's worth it. The average amount of time for a business is 14 months and requires 150 consultants. Because of the fact that ERP requires multiple and considerable changes to all the policies and practices, ERP services consist of three different items: Customization, Consulting and Support. Your actual implementation time will vary based on a number of factors, including but not limited to: The size of the business, the willingness of the employees to accept the change and exactly how expansive the scope of changing is. Small companies could see this program done in a month or two, whereas large and multi-national corporations could take as long as a decade.

Does ERP only help the HR Department?

Not at all. ERP is a total overhaul of the way the entire business is run and with information available to all the networks of the organization, you can easily see all facets of business, from accounting all the way up to upper management, being run quicker and more efficiently.

In sum, ERP is a comprehensive modernization of the way the business is run. Any department, from HR to Sales, can see prospective benefits in the long run with some short-term sacrifices. ERP is a good idea for a business that wants to see items ship faster, employees working more effectively and inventory being better accounted for.

This is a guest post by Steve, a recent graduate student living in California who has an expansive background in accounting. He has worked for multi-state companies which have implemented ERP from JD Edwards managed services where he had the opportunity to speak to several consultants about how ERP implementation can be done in a way that accommodates both the business and its employees.

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Doing Your Best With a Desperate Workforce

2011-10-26T07:19:00.000-07:00

Today's business start-ups are faced with the honest fact that the current job market is unprecedentedly diluted. Millions of Americans are in need of work and millions more are struggling to attain the professional goals they set out for themselves through education and hard work. For fresh entrepreneurs this is both a blessing and a curse. Many talented individuals flood the system ready to be picked up and given a chance, yet finding them through the thick of non-qualifiers is no easy task.

Once they are hired, the modern workforce continues to present its own set of challenges on account of the dire economy and its affect on individual lives. The following are good ways to not only do your best for these sorts of workers, but to also ensure they don't make it any harder for you to start a successful business:

Get a Great Healthcare Plan

Peace of mind goes a long way in the minds of new employees. Not only do they want to know they're performing well, they also want to make sure they can count on their job to help them take care of their families. The best way to not only win over terrific talent but also keep your workers content and therefore willing to work hard, is to provide a fantastic healthcare plan. Changes in healthcare law have given small business leaders every incentive to get worthwhile plans, providing tax credits to those that do.

Insure Against Flakiness

One downside to the job market floodgates being opened and having access to overly-qualified employees is that these kinds of workers are likely to continue to keep looking for work. Contractors and those hiring remotely especially ought to consider such options as the surety bond and sub-contracts to make sure that the work gets done. Small businesses can't afford to be late on delivery of goods and services. Whether it's in the design of your business structure or simply in writing, protect against flakiness at all costs.

When Possible, Accommodate Busy Schedules

Not every business is able to let their workers perform their tasks whenever it's convenient. But if you're an Internet-based business or some other enterprise with around-the-clock access to the means of production, it's wise to be willing to let office schedules go out the window so long as the work gets done. Too many families are juggling multiple jobs along with the schedules of kids and otherwise to always expect everyone to make it on time everyday. By making it clear that punctuality isn't a priority, you'll let your employees relax, and are sure to see positive results.

Hone Your Interview Process

If there's one certain learning opportunity for entrepreneurs in this tough economy, it's how to hire the right people. Timing is off the essence in running a start-up, so it's imperative that you find the right people as fast as possible. Chances are you're going to be interviewing at least six individuals for one position. Now, imagine the amount of resumes that means you'll have to be looking through. Figure out an efficient system, whether that's scanning every resume for red squiggles and keeping the ones that are error free, or creating an exposing series of questions for the 1-1 process.

Today's workforce is not the same as those of times past. Things are different. The world is working in a very different way. So will the workers, but if they're smart, so will the business leaders.

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Key Benefits of Learning Management Systems For Businesses

2011-10-19T03:18:00.000-07:00

Many business and organizations are responsible for maintaining skills and competence for a large group of employees. As a workforce grows in size, managing employee needs can become challenging, even for smaller businesses. Learning management systems (LMS) are thus put in place to help an organization manage its training programs, online events, classrooms, documentation, and administrative work relating to employees. Here key benefits of LMS:

Organization and Regulation

Many companies can benefit from a learning management system. Modern systems can help provide a central repository for administrative tasks, and automate many procedures. Payroll can be used more effectively, as self-guided services can help many employees manage their own training and competency in an organization. Educational materials can be assembled to meet an individual employee's needs, based on competency testing.

LMSs can also be used for automated administrative tasks and human resource management. Modern systems are used in a variety of industries with regulation (such as pharmaceutical, medical, and financial services) to manage employee compliance training.

Flexibility

A LMS also makes it possible to support varying portability requirements, for different regulatory and site standards. In addition, training initiatives can be consolidated to work on web based platforms, allowing cloud-based storage for learning materials.

Collaborative Learning Environment

LMSs can vary in function, from systems designed for managing educational documents and training records, to cloud-based learning solutions that can be delivered over the Internet. Online LMS systems allow for collaborative learning environments, and can help employees learn with a mentor or other educator.

LMSs can be used to manage all aspects of an employee's documentation. Some service providers provide employee performance and expectations management solutions, which allow employee reviews, feedback, skills-gap analysis, multi-rater assessments, and succession planning. By using competency-based learning solutions, employers can quickly fill in learning gaps, and build the skill set of a group of employees.

Channel Learning

One of the largest upcoming trends in learning management systems is Channel Learning, where allied companies can share educational content and compliance learning materials with partner groups. By thinking outside of traditional corporate boundaries, employers and firms can improve the skill set of their workforce at minimal cost. Large companies with many divisions can create a central LMS, and allow general skill training sets to be used by all partner groups.

Many organizations and businesses suffer from high levels of redundancy in their learning plans and initiatives. By using a learning management system, redundancies in a training system can be incorporated into a single central learning plan. This allows businesses to reduce HR payroll costs, ensure a centralized compliance management system, allow for employee appraisals and reviews using a central standard, and allow performance benchmarking across a large number of groups.

Many learning management systems integrate elements of a talent management system. A TMS can help companies recruit new talent effectively, by creating a database to manage needs in an organization. Many businesses recruit talent based on an organizational hierarchy.

A talent management system can proactively identify areas in a company that can benefit from additional talent, based on current employee appraisals and reviews. Predictive analytics can forecast upcoming trends and needs, and can help a company bring on additional talent before it is needed.

If there are areas where a learning management system has detected weakness, a talent management system can help a proactively identify opportunities to improve a workforce through recruitment of additional talent. In addition, if a LMS identifies a surplus of human talent in one division, and a need for additional talent, TMS-LMS integration can help identify situations where cross training can effectively increase value for a company.

Companies are people: by managing employee skills, talent recruitment, and feedback programs, businesses can learn how to effectively manage their most valuable asset. As technology progresses, talent and learning management systems can help businesses of all sizes adapt to a variety of economic climates.

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Is Your Organization Customer-Focused?

2011-09-19T06:47:00.000-07:00

What does it mean to say an organization is customer-focused?

A customer-focused organization is one that truly understands the needs and expectations of its customers and focuses on going beyond just meeting them. Customer-focused organizations consistently exceed the expectations of their customers. There is recognition throughout the organization that customer satisfaction should be a bare minimum – not a goal to strive for. If you want to be recognized as an outstanding provider of customer service, then you – and everyone who works for your company – must consistently exceed the expectations of your customers.

How can companies develop customer relationships characterized by loyalty?

Providing satisfactory service is a given in a customer-focused organization. Exceeding the needs of customers – both in terms of quality of products and services, and in terms of how they are treated – is what will cultivate customer loyalty. Think about it like this: A satisfied customer is one that did not experience dissatisfaction with your company. He or she might come back in the future, but might just as easily to go a competitor. Ask yourself this: What can you do to make sure that your customers want to choose to keep coming back to you time and time again? Those are the things that result in loyalty.

What can a company do to become more customer-focused?

Treat employees with the same level of respect that should be shown to customers
Train employees regarded what is expected and why the expectation is what it is
Never lose sight of the fact that perception is reality when it comes to customer service
Realize that customers must be the first priority
Maintain an appropriate attitude of respect and professionalism
Focus on determining customer needs
Work on building relationships with customers
Work proactively to prevent problems
Practice effective problem resolution techniques when problems arise

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This is another guest post by Mary G. White, M.A., SPHR. She is the Training Coordinator for Mobile Technical Institute and MTI Business Solutions, where she specializes in human resources, management, and marketing training. She teaches business training seminars in Mobile, AL and provides on-site corporate training and conference presentations throughout the U.S., as well as human resource management and public relations consulting services. She is also the author of 101 Human Resource Management Tips and 101 Successful PR Campaign Tips in the LifeTips book series. Article courtesy of the Recruiting Blogswap, a content exchange service sponsored by CollegeRecruiter.com, a leading site for college students looking for internships and recent graduates searching for entry level jobs and other career opportunities.

Tips for How to Choose an Excellent Business Administration Degree Program

2011-09-15T17:38:00.000-07:00

Nearly every four-years universities offer a Business Administration Degree program; however, not all degree programs are created equal. Just because a college offers a certain degree program doesn't necessarily mean that it is a good one. Many colleges excel in a certain faculty areas such as the University of Missouri for Journalism, the University of California-Davis for large animal veterinary, and the Harvard School of Business for business. While we would all love to have achieved the academic excellence to attend the Harvard or Wharton School of Business, it's not always possible. However, you can still obtain a great degree from a reputable program even if the program isn't as prestigious as Harvard. You just need to know what you look for before deciding on any university or college to obtain your business degree. Indeed, you need to ask yourself 3 key questions:

What Does the Curriculum Offer?

When it comes to entering a degree program, it's obvious that the educational content is of foremost importance. Before registering with a school, firstly check out their online curriculum. A good business program, whether it be an MBA or BA, should always have a curriculum that offers a balance between accounting, management, and finance.

Who Will Be Your Professors?

If the professors of a program you are interested in have never sat on a Board of Directors, owned their own firm, or sat as a CEO or CFO, then there is a good chance that they won't have the real life experience needed to teach you real world applications. For each program you are interested in do a background check on each of the professors listed in the department. Choose the program that has the greatest number of professors with the most professional experience. Not only will these types of professors better understand real-world business, but they will have also have established more contacts in the business world, which will offer you greater opportunities for networking and future job prospects.

What Professional Services are Offered?

The job market is presently tough for recent graduates, even those graduating with MBAs. Make sure the business administration programs you are interested in offer a great career services department that gives personalized attention to each individual in the program. You will also want to see what percentage of students are actually being hired from each graduating class of that particular business program. If you find that the number is below 85 percent, then you may want to reconsider your interest.

What Professional Experience is Available?

Education alone will not get you a job after graduation. You'll not only need a great education, but also a great resume under your belt. Check with each program to make sure that they are established with several businesses and firms around the area so you are able to obtain a good internship, and gain good work experience that will form a solid career base after graduation.

Is the Program Accredited?

You may be surprised to learn that not all business administration programs are accredited, nor are all colleges and universities. Without accreditation you are essentially paying for an education and donating your time for a degree that's worthless. Before even looking into any program, make sure the establishment is accredited by visiting the U.S. Department of Education's website.

Higher education is a definite investment of time and money. There is no reason to immediately rush into a decision about a course. In order to have a better chance of a career after graduation, especially in this economic climate, you need the best education and professional experience a school can offer. Don't sell yourself short. Take the time needed to research each school thoroughly in order to make sure that both your time and money are well spent.

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How To Avoid Making Bad Hiring Choices

2011-08-12T03:03:00.000-07:00

In today's economic environment, mistakes are spotlighted much easier than ever before. To be successful, every approach has to be calculated and played like a chess game. This basic principal goes for the hiring process as well. You want the best people in every position, whether it's for your IT management or HR department.

Far too many people make really bone-headed decisions on those they hire for equally poor reasons. This won't fly in today's economy. It's an employer's market, but you have to think about a lot of things if you want to avoid making a hiring mistake that could end up costing your company time and treasure.

Bullet Point Hiring

Sometimes a candidate looks great on paper but just doesn't translate into real life. As you scroll down the list of bullet point accomplishments, the choices seems to be obvious. It's not uncommon because, after all, you're trying to fill a slot with the best possible candidate. But just because a job applicant looks good on paper doesn't mean that you should be softer on them because they “fit.” Many managers overvalue a narrow range of abilities and work-related experience and totally disregard a candidate that has far more long-term potential.

Overvaluing Presentation Skills

During an interview, an applicant is required to put their best face forward, but it's also important not to overvalue presentation skills. Sometimes people aren't the best during interviews. The economy is bad and many people want a job very badly. This can sometimes lead to nervousness and end up causing the person to make mistakes during their interview. The whole picture needs to be taken into account and any good decision is going to be based on all of the information and not a “gut” motivated decision.

Making Gut Decisions

This is one of the worst reasons to hire someone, but it's also the most common. Managers often go on instinct when they hire someone, but find out quickly after the person starts that maybe they should have thought a little more about it before making a snap decision. Avoid doing this and analyze any choice you make with logic, not feeling.

With all of that said, try not to fall back on preconceived notions about a person. This is usually arrived at within minutes, or even seconds, after a meeting begins. Doing so can often inform your eventual decision and have too great an impact. This is why it's best you use the tips above to make the best long-term decision that will help your company's overall strategy for success.

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Semantics is a Fundamental Element of Employee Motivation

2011-07-21T20:47:00.000-07:00

People like to feel important.

That bit of information is not just obvious, it's something you learn in HR 101. But people aren't idiots, either. Employees can smell a supervisor's insincere motivation a mile away, and while a pat on the back is always welcome, it doesn't do much to make an employee feel really special when it's obviously an effort to increase productivity. It's unspoken appreciation that does the most to motivate a person to excel at their work. Workers crave unassuming symbols of their importance.

Photo courtesy of CNN

Position Titles should Reflect their Importance in the Organization

Examples include the job title. It's something most companies don't care about beyond strictly practical terms, but naming the position correctly can make the individual who filled the slot feel like they're a necessary lever not a replaceable component. It all comes down to semantics, is the study of the meaning of words, phrases, symbols, and their particular influence on the human mind. It's overwhelmingly evident that the right words matter a whole lot when it comes to the response or reaction received.

Take a Cue from Politics

There is perhaps no better example of the power of semantics like how they work in politics. Frank Luntz is the name you're probably most familiar with when it comes to the frighteningly varying results you can get when you choose different words and phrases to describe an unchanging idea or concept. Luntz famously encouraged lawmakers opposed to the estate tax to call it a "death tax" instead, which resulted in public opinion shifting towards their side of the argument.

Right Words = Right Mindset

If you want workers to do better, use the right words to project the right mindset. You can even go further than that, if budget allows, and invest in seemingly prestigious benefits for the worker. When it's time to replace office furniture order inexpensive "executive office chairs" for all low ranking staff. Traveling employees should be given first-class tickets even if the airline choice is second-rate for their employment rank. They'll never find out.

Genuine Appreciation Works

It doesn't have to be all smoke and mirrors either. Just simply remembering to hone your genuine appreciation to a point that allows for maximum employee self-satisfaction is enough, and you don't have to feel like you're manipulating the mind of someone else.

Mark Twain famously said of writing that "the difference between the right word and almost the right word is the difference between a lightening bug and a bolt of lightening." This quote also rings true to office semantics. Ho-hum words and perks can generate the energy of a lightening bug among your workers, but pick the right words, phrases, and symbols and you'll get lightening.

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hrmbusiness

The Fiscal Cliff. Put In Perspective.

Help! We're all going over a Fiscal Cliff!

What do they need to settle all of this? What will happen if they don't?

How many trillions does the USA owe?

Yes, but it's government debt, so it won't affect us individually, will it?

Who not to put in charge.

America's hard to stop

Quantitative Easing. What's that?

How do global finances work?

America, land of the free, and debt ridden

How big are the numbers of the US Debt? Any perspectives?

How much is a trillion dollars?

Tariffs and more Tariffs. That's the answer. No it's not!

Time for a change of tack?

China's funding America's national debt, and exporting everything it makes into the US. No it's not!

Managing out the debt.

The solution is?

The Conclusion

About the Author

Plain Speaking Really Does Get You Noticed.

What on earth are you trying to say?

Lets go daddio! What's happening bro?

Don't use management speak to mask your lack of knowledge

About the Author

Roles and Responsibilities of HRMs

Make sure the message you're sending is being received and fully understood

Employment and Recruiting:

Training and Development

Compensation

Benefits

Employee Services

Employee and Community Relations

Personnel Records

Health and Safety

Strategic Planning

Metaphors in Management

A Metaphor is like butter. It should always be used sparingly. ......James Adams

What are they used for?

'All the world 's a stage. And all men and women merely players. They have their exits and their entrances .'

Managing your metaphors

Cut through the babble

Don't treat your customers like metaphoric idiots

About the Author

Common Problems in HRM

Lost and Found

The rules of HRM engagement haven't changed that much, have they?

HRMs, we're management too, aren't we?

Be careful not to alienate the people you want to keep

It's a big job, but someone's got to do it

All workers want to work, don't they? Hello Mr Bean

Back to my roots

Make sure everyone gets the message

Lessons to be learned

Good hunting

About the Author

The Management Game's A'changing

Have we bid a fond farewell to formal management structures?

'If an institution wants to become adaptive, it has to let go of some control, and trust that people will work in the right way at the right time' Robert B Santo, CEO of Monsanto.

Are informal management structures really that new?

Dress down days (they're encourage informal creativity, don't they?)

'What's good for the goose is not always good for the gander'

Too many reports, what do they really tell us? Who's on 1st base?

Always keep in mind the end-users

Summary

Testing Your Leadership Skills Part 1

Testing your Leadership Skills on the Maasai Mara Pt1

The scene, and your reserves

What you have to hand

This is not just about survival, it's about leadership.

About the Author

The Future's Mobile. The IPhone5

Apple's IPhone 5 and the Galaxy S3 allow us a glimpse of the future

Where's the mobile world leading us to?

The computer is dead! Long live the computer!

The supermarket trolley

Watch it and watch it good

Mobile integration

Sales and marketing landscapes are a'changing

'Yes, yes, but you would have to be half mad to dream me up'