Change Management

Top Team Understanding and Commitment

2008-06-12T20:27:00.000-07:00

If you examine all the companies who have successfully implemented any initiative of any kind into an organisation you discover one simple truth; they all have a common understanding and commitment to the initiative which has been chosen at the very top of the organisation. Think of Jack Welsh at GE or Bill Smith at Motorola, they and their board agreed that they would use Six Sigma as their improvement initiative and everyone agreed; the rest is history.

This is why you always hear the phrase 'Top Down commitment is essential for successful deployment'. The problem is that you don't always have all your managers with common understanding and therefore commitment to an initiative. Top managers also constantly change their ideas and launch a new initiative which gives the organisation all kinds of problems.

The fact is that most senior managers don't understand the methodology they have selected to implement, don't understand their own business and its culture and certainly don't understand the work required to make it a success. They then get frustrated as they don't get the results they expect, so they pick another idea and run with that. The result is that when we go into organisations to help them you hear things like - we tried that before and it didn't work; don't mention xxx around hear as it was a disaster; we are different, that kind of thing never works for us.

Why do senior managers not understand the initiatives they are trying to implement?

When we start to spend time with an organisation which is looking to change, they ask us what we can do to solve their problems. They want a quick fix and rapid changes to the organisation as they are in trouble, which is why they have asked us to come and see them in the first place. As a result they don't have in their view point the time to spend understanding where they are, then working out how to turn things around and lastly understanding themselves how to change things.

If you ask a senior manager what they do with their time you get some interesting answers. Ask them to split their time in the last few weeks as an average into the following categories:

Strategy, Leadership and Motivation for the workforce
Tactical day to day chasing of orders, checking things have been done and answering issues
Financial elements of the business

The answer is normally staggering. Most senior managers spend 80% of there time doing tactical day to day issues and virtually no time doing strategy and motivation. Guess what successful senior managers spend more time on strategy and motivation than anything else. This explains why when we say lets get the senior managers together even for 1 day so few can make the time to start to understand what Lean Six Sigma is and how to deploy it. How then do you think that they can get enough of an understanding to motivate and drive the methodology through the organisation? The answer is they can't?

Toyota took 30 - 40 years to change the culture of their organisation with Ohno and Sengo providing the thoughts and drive for lean to be implemented. It took GE and Motorola decades to implement Six Sigma fully into their organisations. Yet today's senior managers expect instant results. I think a good analogy would be football teams in the UK who switch and change managers looking for instant success where as successful team - Manchester United and Arsenal have giving there managers time to get it right.

To ensure success, it is vital that the senior management team take some time to understand the following essential elements of any Lean Six Sigma deployment.

What is Lean Six Sigma
How can Lean Six Sigma help your business
How to deploy a successful program
How to structure your organisation to ensure success
What is the role of Lean Six Sigma Champion and sponsor
How to select projects
How to support and motivate your people

If a top team can spend the time understanding and planning the above then they can start to implement Lean Six Sigma and there might be success.

It means that when they stand up to talk about the subject they know what it is about enabling them to talk with credibility.
They understand how much time each Green or Black Belt needs in order to be successful and can be given the right kind of support.
When they run gate reviews they ask the right questions and ask for the right behaviours from Green and Black Belts. Meaning a greater chance of projects being a success.
They know how to structure the organisation and to choose the right people and projects.
They know how to link the strategy of the company to the Lean Six Sigma deployment.

How to obtain top management buy in?

If you are in the situation where you know that Lean Six Sigma is the best thing for your organisation and you need to convince your management, you must consider a few things to convince them. You must also have the skills to influence people throughout the organisation that Lean Six Sigma is the best thing for the benefit of the organisation. Influencing skills are being recognised as essential in business if you wish to be successful.

The items below will help you influence and convince senior managers.

Show benefits
If you can demonstrate how the approach will help the organisation and the kind of benefits you can obtain, then you will catch the attention of your Senior Managers. To do this, Deployment Champions run a few improvement projects under no name in particular. They can then calculate the benefits using the finance community to validate them. Some benchmarking can also be done, showing what has been achieved in other similar organisations. Lastly you can highlight where your current problems are and then explain how Lean Six Sigma will help to address these issues.

Explain the concept and how to ensure success
If you understand the concepts, then you have the knowledge to explain how Lean Six Sigma can benefit a company and how to set up for success. If you don't, then you could ask an expert to come and talk to your Senior Management group. 100% Effective Training have enjoyed the challenge of talking to management groups in many different industries and answering the questions of the Senior Management group.

Understand where it can help
Identifying where to run your projects is vital in any deployment and even more so in the early stages. You must pick projects which are not so easy that any attention would have solved them, or projects which are so big it would be like solving world hunger. If you pick a meaningful project which brings great results both monitory and other wise then you can usually gain the attention of Senior Management and then move to a full deployment in your organisation. Another problem we have been encountering is that businesses don't really know where there real problems are. They work on solving symptoms and putting out fires, they don't actually know where the root causes are. In this instance then, we would suggest obtaining a diagnostic of your business which would then tell you where to start in your program deployment.

Understand what motivates your Managers
If you understand the motivations of your management team then you will know what buttons to press to get the concepts accepted. This might require some work and research and would include things like how they are measured, how their bonuses are made up, where they wish to take the company, what they believe the current issues are, what they know about the concepts and what they have tried in the past. If you work on these areas, your pitch to your Managers will be considered, have the right detail and will have a chance of working.

Can you deploy without top management buy in?

The simple answer is yes you can. It is however a lot harder; you must ensure that you get quick wins to demonstrate the benefits of the approach. You must also start to use the skills of influencing with Senior Management to convince them that Lean Six Sigma is the way forward.

entrep

Ten Guidelines For Managers Who Want to Create Culture Change

2008-06-12T19:49:00.000-07:00

A common perception is that cultural change has to start at the very top of an organization. But studies and field experience have shown that culture change can begin with the sub-culture of a work-group where a manager who is one or two levels down from senior management decides to become an Island of Excellence® in a sea of mediocrity. As objective evidence of believable performance improvement becomes known to other managers, change often goes horizontal across the organization through other work-groups, then up through the line organization to top managers. The Breckenridge Institute® has developed ten guidelines that managers should follow when under-taking this kind of culture change.

Make sure that the changes you propose are in the best interest of the overall organization, not the self-interest of your work-group. Build sustainable capability and infrastructure that benefits the entire organization rather than optimizing your own position and sub-optimizing the organization's overall performance.
Solve your own work-group's problems first and become an example of the change you're trying to achieve. Operate from a "no-blame" philosophy that doesn't point the finger at others, but takes personal responsibility for your work-group's performance within the organizational context it is embedded. As Jim Collins describes, when there are issues and problems to be solved, look in the mirror of personal responsibility. When there is praise and recognition to be apportioned, look out the window and ascribe credit to those who have made the change possible.
Create your own organizational "space" and obtain additional resources based on the value you add. Don't move in on other managers' areas or "cherry pick" the most visible high-leverage projects. Find a new area to develop or one that has been traditionally neglected by the organization and turn it into a high-performing enterprise. Strive to build new organizational capability that can be transformed into revenue or an enhanced ability to achieve the organization's purpose and goals.
Align your work-group's vision with other work-groups, departments, and functional units by focusing on the things you hold in common. While each work-group may have a different function in the overall organization, its activities should be aligned to achieve a common purpose and the goals of the overall organization. Alignment of purpose and goals and focusing on what an organization has in common are the core differences between being a "group" of people and being a "team."
Communicate the trade-offs of actually accomplishing change to work-group members. For example, if your goal is to increase productivity, then this will require more time and energy from group members and increased resources may not always be immediately available until the work-group demonstrates its increased productivity to top managers. But positive change often brings increased visibility with senior managers that can result in professional advancement for those involved in the change.
Manage "meaning" for people both in and out of your work-group so changes are interpreted through the lens of your work-group's vision. The purpose of culture (any culture) is to teach people how to "see" the world, so make sure that the actions and interactions of your work-group are properly explained and interpreted to top managers and peers so it's clear how your vision links to the overall organization's purpose and goals. Remember that people tend to see exactly what they expect to see, so help to shape those expectations for people both in and out of your work-group.
Only engage in constructive conflict with other work-groups or managers, and only do this when you have to for the best interest of the overall organization. While constructive conflict can create synergy, creativity, innovation, and improvement, the destructive conflict that comes from criticism, contempt, defensiveness, and stonewalling that is displayed in meetings, e-mails, and other human interactions frustrates and undermines an organization's ability to achieve its purpose and goals.
Cultivate allies who will support the change and form open coalitions to ensure that change is sustainable. Focus on winning the support of those who are skeptical about the change by involving them in the process or showing them how they make similar improvements in their work-groups. If the change agent follows the first seven guidelines described above, then other managers at all organizational levels will begin to line up to support the change and voluntarily put their shoulders to the wheel of increasing its momentum and ensuring its sustainability.
Create a concrete, tangible path-forward with credible next steps and a well-defined picture of the value-added that the change will bring to the overall organization. Having established the long-term vision of the change and achieved some initial results that show change is possible, it is important to define what constitutes a "win" or how we will we know when we've arrived. It's also important to map out the behaviors, skills, and process changes that will be necessary to carry the change initiative all the way to the finish line.
Find and use measurements to reinforce the fact that change is actually happening and also to accelerate change. Use existing measures (or create new ones) to disconfirm the old ways of seeing the work-group's level of performance and to build quantitative evidence that the change has happened and that it will be sustainable. Identify exemplars (examples) that convincingly demonstrate the value that the change is adding to your work-group and the overall organization.

The common perception that cultural change has to start at the very top of an organization has been shown to be incorrect in many organizations. Culture change can begin with the sub-culture of a work-group where a manager who is one or two levels down from senior management decides to become an Island of Excellence® in a sea of mediocrity. As objective of performance improvement and increased capability become known to other managers, change often goes horizontal across the organization through other work-groups, then up through the line organization to top managers. While the specific application of the ten guidelines will change from organization to organization, the Breckenridge Institute® has found that properly implemented the principles will hold true in for-profit, non-profit, and government organizations.

Bottom Line: Culture change can begin at any level because organizations are collective-cultural entities that are led, managed, and changed one person at a time.

accounting blog news

Deal Flow - Conflict of Interest - SPAC Challenge

2008-06-12T19:03:00.000-07:00

Deals must be done quietly, as secretively as possible and avoid, particularly with a SPAC transaction, any questions that raise conflict of interest issues.

According to CFO Magazine's June 3, 2008 issue in an article titled, Loose Lips Sink Deals, Too, if deals are not done quietly and secretively they are less likely to happen. Not only do less deals get to closed transaction status when information is prematurely leaked to the marketplace (49% as opposed to 72%) but also the average time to close increases by 70 percent from 62 days to 105. These figures are the product of research done by the Cass Business School.

Professor Scott Moeller of the Cass Business School in London and a former managing director and senior investment banker at Deutsche Bank and Morgan Stanley managed the research.

The results of this study may help SPAC managers in their quest to find appropriate acquisitions. While SPACs and PEGs use an old model of slightly proactive and mostly reactive deal flow generation, the process, reliant on relationships and word of mouth advertising, creates a counter productive process for getting deals done. The Cass research supports the argument that new models for deal flow creation must be created.

In the case of a SPAC, where most of the associates and partners come out of the PEG world, two issues stand as obstacles to being successful and in compliance.

First, SPAC partners are forbidden by regulation to have any prior relationship with those companies they choose to acquire. Yet they use the aforementioned relationship based system of communication to foster deal flow. This is a dangerous practice and raises the question of conflict of interest.

Second, SPAC's have a short time window in which to find and close on an appropriate acquisition. The old model, rife with conflict of interest possibilities, has as its foundation an antiquated system for deal flow generation. In the process of spreading the word on a deal with established relationships, necessary secrecy is dissolved. The very model used by SPAC's and PEG's to garner deal flow that will lead to an appropriate acquisition is self defeating. The old model creates a conundrum that both kills deals and those that do move forward take 70% longer to close.

In order to maintain secrecy as well as eliminate the conflict of interest question, the solution is to outsource the deal flow creation process. The old model does not serve either the SPAC's or the PEG's.

The means by which to advance expeditiously and in compliance is to contract intermediaries to find appropriate acquisition targets. While the SPAC's and PEG's are always open to fielding deals (reactive), a smart intermediary, who is also profit motivated, will not deliver choice targets. The good companies, once in the trusted embrace of an M & A intermediary, will lock them up in a sell side representation contract. Hence, the auction block is the only place a SPAC or PEG buyer will see these firms.

An intermediary who is contracted on the buy side of the transaction is the perfect means for satisfying both the SPAC and PEG need for: privacy, secrecy, no conflict of interest and an expeditious and efficient close.

Competition for the acquisition of profitable companies, thanks to globalization, is at a fevered pitch. Blank check companies and PEG's must change their deal flow creation model and the sooner the better. Missed opportunity costs are quantifiable.

customer services

'Not in My Back Yard'

2008-06-12T17:54:00.000-07:00

"10p tax rate cut disaster: Government forced into u-turn over 10p tax rate debacle."

It's interesting that regardless of politics, most commentators seem to agree that the way the government handled the 10p tax rate difficulty gave them more of a headache than anything to celebrate. Interview after interview and article after article focused on the shortfalls in taking care of the several million people who would be adversely affected by the abolition of the 10p tax rate.

It also meant that Alistair Darling and Gordon Brown made various statements over the weeks. First they said they would do nothing, then they said they may do something, followed by if they did anything it would be later in the year, concluding with the £2.7b solution in the final announcement.

In all of the debate and commentary, I only heard a few people mention the fact that the abolition of the 10p tax rate was part of an overhaul of the general taxation system and specifically I heard only one mention of the fact that the starting rate of tax had been reduced from 22p to 20p.

Now I'm presenting this observation from a viewpoint of trying to be apolitical, and yet by anyone's standards it seems that the government missed a huge opportunity in not establishing their agenda and restating it at every opportunity, i.e. that the purpose of last year's budget was to simplify the taxation system and in doing so 22p to 20p was a massive gain for most people. In the event, they allowed themselves to be pushed onto the negative agenda of the detrimental effect of the 10p abolition as part of the overall clarification.

This is a great example of poorly managing change. In the cold light of day most of us will think that any kind of disruptive change, needs to be explained in advance. For changes to 'stick', the people who you are expecting to accept the changes, need to be engaged with; they need to 'buy in' to the change. All too often, the benefits of change are undersold and the pitfalls not honestly thought through or communicated. These failings result in a feeling of imposition, resentment and resistance.

Now in the tax row case there is a good argument for asking "how come the government missed the implications of the 10p cut bit of an overall tax package, that all parties agreed to in principle, yet no party wants to reinstate?" I suggest that in this case they lost touch with the people it would affect, and the dialogue needed to bring about change ceased to happen with those the change would affect.

Governments often talk about a period of consultation or creating a dialogue or debate; not always easy to do but omit it at your peril, as the government found out! The bigger the organisation (and they don't get much bigger than a government's relationship to its people) the more difficult the engagement, but it doesn't get round the basic human psychological need of people wanting to feel talked to and listened to regarding change so that they feel part of identifying the problem, rather than just being sold a solution to something they may not have realised was broken! 'Not in my back yard', is a truth that you only overcome if the context and benefits are sold and accepted, rather than 'forced' upon un-listening ears.

continuity disaster recovery

Do You Need a Kick in the Pants?

2008-06-12T17:20:00.000-07:00

How to Revitalize your Business Even in a Sluggish Economy:

Have you lost that "lovin" feeling for your work and maybe even your personal life too? Your passion, your ambition, your zest for your business has taken a nose dive? You look at your desk and it's piled high with stacks of files, your emails are multiplying like bunnies in springtime and you're just plain tired, even though you've been fueling up with Starbucks Venti Lattes to get you in gear.

When you turn on the radio, or watch the news or skim the news in paper or on your computer, you are bombarded with reports of the downturn in the economy. Whew! Put all this together and no wonder your energy has left the building! What you may need is a dose of revitalization. Here's the kick in the pants you are looking for:

Top 3 Ways to Re-Energize Your Work, Your Bank Account and your Personal Life

1. Take Time OFF - It's so easy for us to let our work consume our lives. 24-7 we are living, breathing and thinking about our businesses! Time Out! Even though it seems counter-intuitive, it's critical that you take time off so that you can clear your mind and re-energize your body, mind and spirit. As soon as I detect "burnout" in myself or my personal coaching clients, I immediately whip out my prescription pad, Take Time Off! You may fear that taking time off will compromise your business. The bigger truth may be that your business and your bank account will suffer if you don't! Be smart and be strategic about taking a break. Don't think that you can take off an entire week this month? That's ok. Take a 1, 2 or 3 day mini-break and do what moves your spirit. The only hard-fast rule? Do absolutely NO work related activities during your break.

2. Have an "Opposite Day" - Remember this from grade school? Try this tomorrow. Mix up your day and change up your routines. For example; return calls late in the day, if you normally make your calls in the am, drive a different route to an appointment, pay attention to what you see, have your next client meeting at a brand new restaurant, or take a walk in the woods and bring your brown bag lunch. Shaking up the routine of life will give you more energy AND improve your mood which in turn will give you a new perspective. All very positive things!

3. Try a New Strategy - Review your business plan and your strategies. Is there something on your list that you aren't doing that you'd actually like to do more of? Maybe you've got an idea for some brand new way to offer your service. Notice your energy. What gets your creative juices flowing? I've had clients try their hand at offering tele-seminars, writing an e-book, and giving their first workshop, all with great success because the project was fueled by their passion. Passion can be quite profitable!

Business online blog

The Changing Role of Managers and Executives

2008-06-12T16:42:00.000-07:00

In the interview called Death of Command and Control the former COO of Blue Cross-Blue Shield, Rod Collins explained why the old system of hierarchical management and controls just doesn't work in today's age... it's too slow. Getting to market is a whole lot faster when the entire team is clear about what needs to be done to achieve the goal and the systems are in place to support collaborative leadership. The prevailing notion once was that consultation takes too long. This is probably the one reason why there is such an attachment to managerial control. Old habits die hard.

It is not the manager's fault. Once upon a time the orders came from on high. Middle managers made sense out of the edict and then everyone kicked into high gear to make it all happen. The flow was up and down ... or so it seemed. Now we know that it doesn't work like that. Thirty years of social action research tells us that getting things done involves letting go vertically so things can do what they do so well horizontally. The achievement of goals always involves members of the employee's network who are outside the company. Try controlling that.

What about engaging employees? Social action research tells us that collaboration and innovation is natural. Yet most company culture's are focused on rewards and incentives missing the whole point. The systems and processes fail to tap into what matters for the manager and focus on what they think 'should' matter. This gap gets even more accelerated between CEO's and the executive management team who ignore the cues of the existing culture and impose assumptions about what 'should' work.

All this means that the role for manager's and executives has changed from barking orders to setting direction and creating clear goals. Then it is about getting out of the way. This is where it gets tricky and there are two parts to the scenario.

1) IF the role of a manager has been to control and the need to be in charge is key to feeding one's ego, getting out of the way is either not going to happen or be intermittent. This is really true of Boomers who have learned to 'suck it up' so they feel one way and act another. When feeling and action have been reconciled so what manager's feel inspired to do and actually do will things start to rock and roll. Horses do a masterful job of pointing out where things aren't in alignment. Self-awareness is the other enlightened leader's ally.

2) Managers prefer to contribute in an inspired way but are treated mechanically by outmoded notions that the employee needs to be motivated. Not any more. Now employees need to be inspired to contribute. When they are all revved up and ready to go, and then run smack into cultural barriers, it deflates the tires pretty quickly.

The elements of self-actualized leadership that this triggers are self-identity (who are you without your roles and clothes to define you) and self-security (what value do you feel you have without the title, position, yada yada). This is a time when leaders need to go deep into themselves to uncover any unresolved personal issues. Without the know-how to spot the place to stop, reflect before acting, managers and executives will be too tempted to put their fingers in the pie trying to add flavour when it is better left alone. Everyone is a leader. Drucker said "Leaders are grown not made."

careersemp loyment

What Value is an External Consultant?

2008-06-12T16:02:00.000-07:00

Most companies holding a certification to ISO9001 have done so for many years and although the standard call for 'Continual Improvement' this is often product or service based and often reflects the normal organic growth. While there is nothing intrinsically wrong with this approach, Directors are not always taking advantage of the latest techniques and processes.

Many companies certified over five or six years may have a fairly large quality manual and processes to match; some of these will have been expanded as a result of auditors' comments and some by customers complaints or observations, but not all will add any value to the company's operation.

What is a good idea is to have someone have a look with fresh eyes at what you are doing; get a real heads-up on the latest techniques and ways to reduce the administrative burden of Systems Management.

This not only applies to ISO9001 but to all the other standards, Environmental, Information Security, Health & Safety, individual Product standards and others.

Professional consultants have verifiable qualifications and accreditations plus Professional Indemnity Insurance. Also any consultant will be able to furnish you with a list of satisfied clients with whom you can obtain references.

A good consultant is worth his/or her weight in gold; not only can an MOT actually save money it can result in greater efficiency. Remember an experienced consultant will have been involved with a number of organisations and will be able to use that experience to help you. Cherry picking the best practices and techniques while retaining strict confidentiality will add real value to your business.

There are other advantages, such as no holidays to pay for, no sickness or other absence to factor in and the best bit is you only pay for actual work performed.

Franchising

Prioritization Matrices

2008-06-12T15:08:00.000-07:00

This tool can help you decide what to do after key actions, criteria or Critical To Quality (CTQ) characteristics have been identified, but their relative importance (priority) is not known with certainty. Prioritization matrices are especially useful if problem-solving resources, such as people, time or money, are limited, or if the identified problem-solving actions or CTQs are strongly interrelated.

To create a matrix, you must judge the relative ability of each possible action to effectively deliver the results you want compared to every other identified action. The product of your work is a weighted ranking of all the possible actions you are considering. The finished matrix can help a team make an overall decision or determine the sequence in which to attack a problem or work toward an objective.

Prioritization matrices are especially useful in the project bounding and analyze phases of Lean Six Sigma quality.

What can it do for you?

You should consider creating a prioritization matrix if:
You cannot do everything at once,You are uncertain about the best use of your resources or energy orYou are looking toward specific improvement goals.

This tool can also help you make a decision in situations where the criteria for a good solution are known or accepted, but their relative importance is either unknown or disputed. For example, a prioritization matrix might be used to help decide the purchase of a major piece of equipment or the selection of a single-source supplier. Depending on how much time you have and how complex your problem is, there are a number of options for constructing a prioritization matrix.

How do you do it?
The first step in applying the Full Analytical Criteria Method is to ensure that the people working on the matrix agree on the ultimate goal they are trying to achieve. Next, create a list of criteria or characteristics needed to achieve the goal or meet the objective. (The idea is simply to list the criteria without considering their relative importance. That happens later.) The team can do this by discussion or brainstorming. The purpose is to list all of the criteria that might be applied to all of the options. For example, if the team is considering which improvement step to attack first, some of their criteria might be:Low investment costMaximum use of existing technologyHigh potential dollar savingsHigh improvement potential for process speedHigh improvement potential for defect reductionHigh customer satisfaction potentialMinimum impact on other processesEase of implementationHigh probability of quick results Note the way the criteria are worded. They should clearly convey the desired outcome. Low investment cost is a much clearer criterion than cost would be.

Once the total list is developed, the next step is to judge the relative importance of each criterion compared to every other criterion. To do that, make an L-shaped matrix with all the criteria listed on both the horizontal and the vertical legs of the L.

Compare the importance of each criterion on the vertical side of the matrix to each criterion listed along the horizontal side using these numeric weightings:

1.0 = The criterion being considered is equally important or equally preferred when judged against the criterion you are comparing it to.

5.0 = The criterion being considered is significantly more important or more preferred.

10.0 = The criterion is extremely more important or more preferred.

0.2 = It is significantly less important or preferred.

0.1 = It is extremely less important or preferred.

Although these specific numeric ratings are to some extent arbitrary, by applying them consistently in a prioritization matrix, you will generate a valid understanding of relative importance. When completing or interpreting the matrix, read across the rows (not down the columns). For example, if criterion a was significantly more important than criterion b, where row a intersects column b write 5. Remember that, if criterion a is significantly more important that criterion b, criterion b must be significantly less important than criterion a. Where row b intersects column a write 0.2.

Continuing in a similar manner, compare each criterion to every other criterion, reach a decision about relative importance, and enter the appropriate values. Do this until the matrix is full. Remember that, whenever you compare two criteria, you should mark the rating where the row of the criterion being compared intersects the column of the criterion you are comparing it to. The inverse of this value should be entered where the column of the criterion being compared intersects the row of the criterion you are comparing it to. That is, you should enter 1 and 1, 5 and 0.2, or 10 and 0.1 for each comparison.

Add the values recorded in each column, then add the column totals to get the grand total.

Add the values recorded in each row, then add the row totals to get the grand total. The grand total across the columns should agree with the grand total down the rows. If it does not, check your work. Divide each row total by the grand total. This percentage is the weighting that shows the relative importance of each criterion.

Now that you know the relative importance of each criterion, the next step is to evaluate how well each of your possible choices meet each of the weighted criteria. Those possible choices could be such things as which improvement steps to take first, which piece of equipment to buy or which supplier to use.

To complete this step, make a new L-shaped matrix with all your possible choices on both the horizontal and the vertical legs. If you are considering which improvement steps to take, your possible choices might look something like this:

A. Error prevention training

B. Purchase new equipment A

C. Purchase new equipment B

D. Refurbish existing equipment C

E. Refurbish existing equipment D

F. Rewrite procedures for clarity

G. Implement barcoding

H. Cellularize operation 1

I. Cellularize operation 2

Pick the first criterion you wish to consider and compare each possible choice with every other possible choice by asking how well it will deliver that criterion or characteristic. For example, if the first criterion you were considering was high potential dollar savings, you would compare each option with every other option, in terms of its potential to deliver high monetary savings. Build the matrix as you did when initially evaluating the relative importance of the criteria by putting numeric values in the matrix intersections:

1.0 = The choice being considered is equally able to deliver the desired criterion or equally preferred when judged against the choice you are comparing it to.

5.0 = The choice being considered is significantly more important or more preferred.

10.0 = The choice is extremely more important or more preferred.

0.2 = It is significantly less important or preferred.

0.1 = It is extremely less important or preferred. Complete the matrix; add the rows and columns and calculate the percentages as you did with the criteria matrix.

The example above is what a matrix comparing the possible choices for high potential for dollar savings might look like.
In the same way; complete a matrix comparing each of the possible choices for each of the remaining criteria. If we did that for all our criteria, we would have to create a total of nine matrices comparing every combination of possible choices for its relative ability to deliver on each of the identified criteria.

You may choose to simplify this process by eliminating some criteria that had a very low percentage weighting. (In our example, we limited ourselves to the five highest-ranking criteria. Besides the matrix for high potential dollar savings, we would create additional matrices for high improvement potential for process speed, high improvement potential for defect reduction, high customer satisfaction potential and high probability of quick results. These additional matrices are not shown here.)

The final step in the Full Analytical Criteria Method is to merge the relative ability of a possible choice to deliver a desired criterion with the relative weighting of that criterion. To do this, make a new L-shaped matrix with all the options or possible choices on the vertical leg and all the criteria considered on the horizontal leg. Make the columns fairly wide to allow some calculation.
Again, in our example, we eliminated some of the criteria to make things simpler.
Under each criterion, in the weight row, note the percentage weighting you got from your first matrix, the one that compared each criterion with every other criterion.In each criterion column, enter the percentage numbers you got when you compared each option with every other option for that criterion. (The actual matrices for criteria d, e, f and i are not shown.) Enter these numbers as the first numbers in each column of the completed prioritization matrix.Multiply each option percentage by the criterion percentage weight for that criterion. (The results are the second numbers, the ones after the equal signs in our example.)Add the results of your multiplication down each column. The result for each column should be approximately the same as that criterion's percentage weight (the number in the weight row).Add the column total row to come up with a grand total.Now, add the results of your multiplication across each row, and add the row total column. The result should be the same as the grand total you got by adding the column total row.Divide each row total by the grand total to get the percentage for each option. (Add the percentage scores as a check. The sum should be approximately 100 %.) This is the answer to your question.These numbers show the relative value of a number of options or possible choices when considered against a collection of independent criteria or critical to quality (CTQ) characteristics.

Now what?

Any time a choice must be made, some form of prioritization occurs. Those responsible for making the choice may play a hunch, take a vote or analyze for some specific impact they think is important, but they will decide what they think is best, most important or should be done first. If the prioritization process is incomplete or arbitrary, chances of success are lessened.

The discipline of a prioritization matrix allows you to avoid setting arbitrary priorities that have less likelihood of helping you reach your desired objectives. The Full Analytical Method does take considerable time and effort, however, and should be used only if the risks or potential benefits make it worthwhile.

customer services

Fostering a Positive Climate For Change

2008-06-12T14:08:00.000-07:00

Innovation, consistently high standards and speed are necessities in the competitive environment of today's business world. In this fast-paced business world, there is little room for error or experiment. In both small and large organizations the pressure for success is huge.

Management has changed in the Information Age. Managers today are expected to move forward with their own agendas and make their mark within as little as 18 months. However, is it often forgotten that these agendas need the support of key people, and as a manager, you will have to gain and retain this support in order to achieve success.

What do employees look for in a manager today? If you ask employees what they expect of their manager, you will hear vastly different answers. They look for information that will enable them to size up the kind of human being their manager is and what personal interests he or she brings to the position. They want to know whether it will be worth adapting to the person.

Even if the company and the department is doing great work, one of the first questions that employees put to their manager is whether he or she has a plan and where their ideas will fit into it. If any changes divest the employees of authority or tasks of which they are especially proud, immediate and substantial resistance is likely.

On the other hand, employees also want, and need ambitious goals. For a goals program to be successful it must address four important points:

1. It must make clear that the manager does not intend to impose some preconceived plan on the employees without recognizing the special features of their situation.

2. It must show the employees that it takes into account both their manager's legitimate interest in success and their own long-term interests.

3. It must be characterized by a balance between stability and change and demonstrate respect for significant achievements of the team.

4. It must be easy to communicate tangibly and inspiringly within the company and to the outside world.

Successful managers are able not only to look at the multitude of issues facing them but to choose the right ones as well. Now, that certainly doesn't mean they do what the employees want, but they should examine desired goals for their effects on employees. Experience shows that managers should always be sure to formulate at least one stability-related goal for every three goals related to change. It is the only way to generate a positive climate.

An important factor for managers to foster a positive climate for change is to ask questions differently. Question by question, with great respect for what was done in the past they systematically piece together a picture of the current situation. These are called "reflective questions" because they get people to think.

Successful managers use a second group of questions as well. These are called "resourceful questions," meaning that they are questions intended to help systematically identify strengths. Therefore, ask your employees about the departmental projects they are proud of, how they managed to get through last year despite the tight personnel situation, what strengths they have honed in the last two years, what strengths they used to have and what would be needed to regain them.

What you should not do under any circumstances if you want to establish a positive climate for change is ask about the cause of problems. It is considerably more helpful to assume that your employees have so far undertaken everything they could to solve the problems at hand.

Every experienced manager knows that the solid arguments for changes that are awaiting decisions will be of little use if the requisite climate does not exist among the employees. The image of the heroic new manager who acts quickly and assertively still exists in many companies, but these strategies seldom work without the trust and support of the employees.

Therefore, you need to ask yourself these four questions:

1. How much trust do the employees have in my abilities?

2. What do I know about their strings?

3. What strengths urgently have to be developed?

4. What projects can develop the strengths?

These answers to these questions will go along way in helping you foster a positive climate for change in your organization.

customer services

A Transformational Business Is Like "The Beatles"

2008-06-12T13:18:00.000-07:00

A thriving company should create a vision of "MAGIC". Magic means to be a legend in their field by spreading joy, harmony and love. "Love?" you say. Your people must love what they do, and the customer must love what your company is offering.

To describe best the attributes of a legendary company, let's go back more than 40 years to the birth of the Beatles. John Lennon said to Paul McCartney "Do you want to join me band?" Both John and Paul were school kids who loved music and wanted to perform, yet neither one could possibly comprehend at the time their colossal future.

Like many companies, the Beatles did not begin with instant success. They played small British pubs and clubs in Hamburg, Germany. It was common to get bottles thrown at them while performing or get jumped by "roughs" after the show. They also had personnel issues, like many beginning operations who can't seam to get the all players to mesh and be in harmony. It wasn't until the FAB FOUR joined forces; John, Paul, George and Ringo that the magic began to take hold. In an identical way, companies that want to create magic must have the players be in harmony with a common vision.

They grinded out many a nights at the Cavern Club in Liverpool and worked to create a first album, then the word spread like wild fire. They created what the world famous authors and management experts Ken Blanchard and Sheldon Bowles, call Raving Fans. Raving fans means that the people will buy anything that is associated with you, because they believe in you because they know your purpose is to make them feel good and they eventually will love you. "All you need is love." By the time the Beatles were ready to break into other markets, i.e. the United States, the word had already spread across the Atlantic and millions awaited their arrival to the U.S. with breathless anticipation. Screaming women fainted as they performed live on the Ed Sullivan show and they sold so many records on their first tour, that even Elvis was jealous of their success. In a similar way like IBM became jealous of the rising APPLE COMPUTER.

Every where they performed to sold out concert halls. They released new subsequent albums and would beat their own sales records. At the beginning The Beatles were infallible and the public would buy anything they produced. Like all fast growing companies, the Beatles soon had their share of controversy and problems. When a company or band grows too fast, there are a line of critics ready to pounce on every wrong move.

The leaders of a fast growing company or band tend to get exploding egos and believe their own press. Infallibility is never true of any person, any band or any company. Mistakes will always be made and sometimes devastating mistakes that can nearly take a company under. John Lennon made an off handed comment about being more popular than Jesus, and those "raving fans" were burning the Beatle's records in the streets. Many DJ's refused to play their albums and record sales dropped. Exxon suffered tremendous losses when deciding that the extra cost of putting reinforced hulling in the oil tanker Valdez was not worth it. The consequent oil spill created billions of dollars of damage to the Alaskan wilderness. Exxon received years of bad press coverage which effected income. The effects of this tragic ecological event are still evident in the Prince William Sound 19 years later.

The Beatles like leaders of an organization, also had their share of tension between each other. Most in the band were upset about John's girlfriend, Yoko Ono getting involved in their music, and the effect she had on John. The others in the band felt like Paul was becoming bossy and egocentric. George and Ringo often felt that they did not get as many writing credits as they should have and did not feel that they were equally compensated for their contributions. Each time a new album appeared, the magic emerged again. Each album carried with it, groundbreaking sounds and lyrics that influenced an entire culture. They were able to set aside their differences enough time to be in the studio and compose masterpieces. The Beatles ignored the controversy and hard feelings in order to maintain true to their vision of changing the world with their music.

The Beatles finally disbanded in 1970, but their music has been eternal. The magic they created has transcended generations, countries, and cultures. In 2008 there are Las Vegas shows built around their music, world class impersonators playing their covers, and world wide cinematic production that incorporates their songs into the entire musical storyline. The Beatles created magic, much like Disney or Microsoft creates magic. The magic was created by the forging of four talented individuals into one collective force. A company must strive to forge their individual talents into one force. Like the Beatles, they must always be changing and improving. They must always be looking for ways to reach their audience and express themselves through their work. Like the Beatles, "you gotta get by with a little help" from your fans.

branding news

Are You Too Busy NOT to Measure?

2008-06-09T04:46:00.000-07:00

"We think performance measures are important, yes, but we just don't have the time for it!"

You'll never hear these words uttered in a business or organisation that is truly successful. And that's because success depends on being able to make measurable progress toward your goals. It's not an accident.

Just look at Google, Marriott, 3M or even Fremantle Ports (winner of the Australian Business Excellence Medal in 2007). They have time to measure not because they're successful. They are successful because they made time to measure!

Beware the downward spiral of being too busy to measure...

If you don't measure what matters, you won't be managing and improving what matters. You'll be chasing what's urgent. And there's a big difference between what matters and what's urgent.

The more you delay getting meaningful measures that focus you on what matters, the more you're wasting time and wasting effort on things that don't matter most. The more time you give to what's urgent, the more you have to delay getting meaningful measures that help you focus on what's important. That's the downward spiral.

How do you make time to measure, when you don't have any time left?

When you're too busy to measure performance, you're actually too busy NOT to measure performance. You need to improve performance, or you'll stay too busy (and performance will just keep sliding).

So finding the time to measure performance is not about finding some spare time hiding somewhere. It's about deciding what you're going to *stop doing* to free up some time!

Aim to liberate a couple of hours a week that you can devote to selecting just a few meaningful measures and implementing them so they can highlight what matters most and help you improve what matters most.

Where can you find a couple of hours a week? Here are some ideas:

Get very clear about the results that you simply must achieve - the essence of your role or team or department. You can't prioritise anything unless you know what the results are that truly matter. Curb distractions by planning your week and each day so that you've scheduled first the tasks that will make real progress toward your priority results. Schedule your 2 hours on performance measurement and performance improvement before you schedule anything less important. Delegate or delete administrative tasks that don't directly help you make real progress toward your priority results. Who else could do your data entry, preliminary research or meeting organisation? Stop reading emails that don't help you make real progress toward your priority results. It will feel wrong, but it's not wrong. Give it a try. You could easily find an hour a week with this tip alone. Cancel or defer projects or initiatives (however exciting they may be) which threaten the time you can give to making real progress toward your priority results. If you're running several races at once, you can't win any of them. Build a small buffer into each week, to handle those unexpected but essential tasks that pop up, or to handle the overrun of planned tasks that took longer than you expected. That way, they won't affect other important tasks you've planned (like performance measurement!).

The bottom line is that performance won't ever get better unless you make the time to measure and improve performance. And to make the time, you have to stop doing things that are less important.

accounting blog news

The Only Thing Constant is Change

2008-06-09T03:13:00.000-07:00

Who said that? We did. Someone else said it first, but that's not important. What is important is your recognition that change is an integral part of life and if you don't incorporate it into your business, sooner or later you will be left behind.

Now for those conservative minded readers who still wear bow ties and Brooks Brothers suits, we will gladly acknowledge that exceptions abound. Unfortunately, however, most of us do not have the luxury of waiting to see if the public will stick with our products. He who waits and makes a mistake gets left behind. Don't believe me? Ask IBM, Sears, or the entire U.S. automobile industry. Change left them all in the dust.

To compound matters, change is rapidly becoming a trend force. By this expression, I mean that change is becoming an expected mode of operation for your customers. Want some examples? Ok, let's take the fast food industry. Does the name itself tell you anything? Think about the successful ones-McDonald's, Burger King, Wendy's. What do they have going that their copy-cat failure competition can't latch on to? Change. Almost every week the big three have something new going on. You will see new products, new offers, new games. McDonald's is totally changing the interior of every store in Europe to change its face overseas and create a more upscale environment. In addition, kid's meal offerings change constantly along with local endorsements and sponsorships.

You have only to listen to the quote of Ray Kroc, the McDonald's founder, in order to know their position. "We can invent it faster than others can copy it."

Change is certainly not limited to fast foods either. I think one of the best examples of change can be seen at Apple. Now that Steve Jobs is back he is cranking out one winning product after another. He embraces change and makes it a part of the corporate culture.

WHAT DOES ALL THIS MEAN TO YOU?

It means that you should adopt change as part of your business. Not as an accident which happens, but actually part of your ongoing operation. Use change to let your customers know that you are a viable company constantly aware of the latest trends. How do you do it? Let's look at some ideas.

1. New product or service. Borrowing from the fast-food industry, always be on the look out for anything new which can be added to your product line or service offering. Now note, and this is important, don't worry whether or not this product will make money by itself. Sometimes you will do things simply to draw attention to your entire line of products and your business in general.

2. Be on the look out for a different way to serve your customer. Home delivery is an example. More and more companies are turning to this strategy and shopping online is so successful because the products come to you. No traffic and less stress. Can you think of another way?

3. Center promotions on holidays, local news events and fads. These events don't have to relate to your product except that you tie it in that way. The more you can use these events, the more your company and product seem current.

Change is a powerful business force. It can wipe you out or it can make you an overnight success. This coming year, put the word change on every day of your calendar. Constantly be on the look out for the next promotion. If you do this, you will energize yourself, your employees, and most importantly, your customers.

Business Rule: Incorporate change as a part of your business philosophy, but don't change what works.

accounting payroll news

Why I'm Not Participating In The Recession

2008-05-28T13:53:00.000-07:00

This article is about two things: recessions and a solution to them.

Don't worry this is not an economic treatise about the definitions and causes of economic downturns sometimes called recessions. Rather, it is an explanation of how we can think about these events differently and, when these circumstances surround us, how we can improve our results regardless of what the media tells us.

While regional, national or global level economic indicators can show that an economy is slowing down, that people are losing their jobs and the like, I believe that for individuals, a recession is little more than a change in circumstances that we can choose to participate in . . . or not. I would argue that recessions don't even exist for us as individuals, unless we allow them to.

Recessions and Our Response

First, if you are reading this and have lost your job or are facing significant changes in your situation due to the events being labeled "recession", please don't get angry with my comments, but continue reading with an open mind. Use these ideas to be proactive in dealing with the opportunity you are now facing.

The media and/or politicians may say we are in a recession. And yet, businesses are still buying products and services (though perhaps a bit less than 'normal') and businesses are still hiring employees and moving forward.

The key for you and your business is to be the one who gets a larger percentage of the orders or the interviews or job offers that are available. In this proactive way you can choose to recognize that recessions are macro not micro events. You have a choice about how you will view the event the media calls "recession."

What I'm saying is that times might be a little tougher and that it might not be as easy as it used to be (or will be again), but so what? You can succeed through a better plan and a bit of persistence. When things are a little tougher, it simply separates out those who are prepared to work harder and more creatively.

Our Best Response

After you have readjusted your views on what a recession is, and how you can most proactively view those circumstances, your next actions should be focused on the source of your income and profits: Your Customers.

You may call them something else: Clients, Patients, Students, Participants, Users, or Participants. Or you may be thinking, "Kevin I work inside the organization, I don't deal with our paying Customers." That's fine, you still have Customers. Other departments, the people who you give your work to, the people who give you work, all of these people are your internal Customers. (If you "only" have internal Customers, read on, apply the points and wait for a special message for you before I close.)

Whatever you call them and whoever they are, your Customers are your personal recession buster - but only if you focus on them more completely, deeply and consistently than ever. Think about it this way - your Customers are the source of all revenue for your organization; your Customers write your paycheck. It makes sense to build and deepen your relationships with them always, but that is never more true than in times where they are buying less and probably distracted by the economy themselves.

Your Customers are looking for new solutions. Your Customers want help. Your Customers need you.

Five Ideas

Here are five ways you can focus on deepening your relationships with your Customers, starting right now.

Get in touch. Stop by, make a call, send a handwritten note, send an email (in that order of priority - the further up this list the more valuable the contact will be). Let them know you care, take the effort to be connected.

Stay in touch. Don't make this contact a one-time event but part of an ongoing process of staying in touch, connected and at the top of the mind for your Customer.

Ask how you can help them. No strings and no qualifiers. Do you appreciate it when someone offers to help you with something? So will your Customers, even if they don't take you up on the offer.

Educate them. Send an article, share an idea. After you know how you can help or what their challenges are, it will be easier to determine the best things to share based on their interests and needs.

Focus on serving not selling. People buy from those they like, trust and respect. Sales will come. Focus on the person, building the relationship and serving them.

These are just five ideas - you probably can come up with fifty-five more. Your challenge is to find ways to be relevant, helpful and available to your Customers.

A Final Thought

Before I close, I promised those with internal Customers a final thought. If you will do the things above, you will help your internal Customer better serve the paying Customer. When you sparkle in these efforts, they may even get ideas from your actions to apply with their Customers.

Regardless of where you sit in the organization you can have a direct impact on business success by your actions. Focus those actions on improving relationships with your Customers, whoever they are.

Potential Pointer: Recessions can be damaging events to you and your business, or they can be a perfect reminder and stimulus to improve your results by deepening and broadening your relationships with your Customers. When you make the right choices and take the right actions in building Customer relationships you will thrive in any economic situation.

advertising blog news

Managing Change During Times Of Economic Pressure

2008-05-28T13:17:00.001-07:00

You only have to read the newspaper or watch the TV news to hear about the economic turmoil that we are currently facing due to the sub-prime mortgage debacle and the resulting stumbling stock market. This is giving many organizations cause for concern regarding their business plans for 2008 and beyond. These external economic forces may propel companies into implementing change strategies to adjust to the new economic realities.

But for those of us who lived through the troubled economic times of the 1980s and 1990s, we remember that at some point the economy will pick up again and companies had better not make changes that will prevent their businesses from rebounding when the economy bounces back. Business owners and managers need to carefully learn the lessons from the past and avoid the pitfalls of poorly planned change initiatives.

The bottom line is that they need to implement change strategies that are built on proven approaches. Research from Harvard University and other institutions have identified eight critical steps in planning and executing change to minimize the pain and maximize the gain. These are:

1. Build a sense of urgency for change.

Usually in life nothing happens until we identify some level of urgency or need. Need is the catalyst for change. For example, we don't start exercising or dieting until we gain a sense of urgency surrounding our clothes not fitting properly. It is the same way in organizations; owners and managers must communicate a sense of urgency to employees by explaining to them the external forces impacting the organization.

2. Build a guiding coalition.

Business owners and managers can not make change all on their own. They need to engage key players in their organization who will support and add credibility to the change. If these key players are not engaged to move the change initiative forward, they may be the people who could block the change from happening at all.

3. Create a vision for the future.

It may seem strange to have this as the third step; however, it is necessary to create a shared vision for the future among the senior team in the organization. Organizations need to set specific goals for change based on the pain they are feeling right now.

4. Communicate the vision.

As Conrad Hilton said about the hotel industry, there are only three key rules for success: location, location, location. In the case of change management it is a little different. The three key rules are: communication, communication, communication. Three critical points that require communication and are needed for employees to buy into the change are:

A. The change will happen and it is necessary

B. How the change will impact the organization

C. And, how the change will impact employee jobs specifically

Without this knowledge, employees will make up their own stories to fill the vacuum and usually these will be more negative than reality dictates. These negative stories will have a negative effect on morale, motivation, and productivity.

5. Enable action.

Senior managers need to outline the vision and goals for change, but they also need to empower people to implement change, which is aligned with the big picture, locally. They need to provide the tools and empowerment for employees to take the imitative and implement the changes necessary.

6. Create short term wins.

Change is hard work and therefore managers need to recognize the effort that employees make in order to make change happen. This involves showing appreciation and elevating peoples' spirits by celebrating short term wins. This creates positive momentum that will encourage people to persevere in the change process.

7. Don't let up

This is critical! Many change initiatives fizzle out due to lack of senior management visibility in supporting the change. Managers must be held accountable for the results they achieve in making the change happen. Research tells us that most change initiatives fail due to senior managers who do not visibly and consistently support the change and keep the pressure on.

8. Make it stick

A change that is achieved must be embedded into the organization's DNA. This is done by senior managers enforcing the change and embedding it into the organizational processes and culture. To revisit the weight loss example, just as when we lose twenty pounds, we need to maintain our change in life style to prevent it coming back. Organizations need to maintain the new and healthier life style with a consistent focus by managers to ensure that back sliding does not occur.

It all sounds relatively straight forward, however in reality, it's much harder than it seems. It requires will power, determination, and focus on the part of managers and leaders to overcome the resistance that it inevitably incurs. The change must be driven through. Owners and managers must expect significant resistance from 10-20% of employees. It may be best to not focus on the heavy resistor group but rather focus on the 10-20% on the other end of the scale who may readily accept the changes being proposed. The must use the people who are accepting of the change to influence others in the organization that the change is necessary and in the long run will be beneficial.

Many organizations use outside change consultants to help guide them through the process. Just as many people attend weight watchers or hire personal trainers to help them achieve their change goals with fitness and weight reduction, so organizations too can benefit greatly from the advice and the encouragement of change consultants.

advertising blog news

Employers Turn To Business Book Summaries To Motivate Employees

2008-05-24T01:03:00.000-07:00

More and more employers are using business book summaries to motivate their employees. This may in a large part be due to the results of a recent study conducted by Taylor Nelson Sofres. The study clearly indicated that 85% of employees they interviewed who had access to business book summaries reported an increase in personal efficiency. In the same study and focus group, 60% of employees claimed that business book summaries helped them improve work performance and retention.

What made this study more convincing is the complementary study conducted by Bersin and Associates. According to the study, business executives who read seven books annually earn approximately thrice as much as those who only read one business book a year. As business books foster productivity and increase employee motivation, business book summaries should be able to do the same.

Employers are also turning to business book summaries for the time element. In a study by Bersin and Associates, 37% of executives admit to spending four hours per week merely seeking information. This translates to over $1,000 weekly loss in income. Since business book summaries are automatically delivered and are concise, employees and executives are spend less time digging up information and are able to spend more time doing their jobs.

Companies who are riding on this latest trend can be found all over the world. These organizations include U.K.'s largest retail chain operator, one of the largest public school systems in the United States and a major credit card company. Even small businesses are turning to this cost-efficient tool to train and increase employee motivation.

careersemp loyment

Your Soapbox

2008-05-24T00:34:00.000-07:00

Recently I was asked by the leader of a company to come in and do some work with one of their new department heads, mainly because this person was going to head up a key income-generating section of the company; however, they had limited personal experience within this part of the industry.

Now before you jump on the 'why would you put someone with limited experience in to a position of such importance' bandwagon, let me share with you what I know.

The incoming department head had a set of experiences, skills and knowledge that, although from a different set of circumstances, would allow them to fit in very nicely to the role they would be fulfilling.

Obviously in our initial discussions we covered a lot of strategies, topics and understanding. We attempted to gather a lot of information on what the position needed, what management was looking for, and most importantly what the team they were going to lead was looking for from a leader.

It was this last point that I put the most emphasis on. Not just to try to please the troops, but more along the lines of how this new department head would lead this team.

I took the incoming leader through a history lesson and self-discovery tour all in one go.

Basically, what I was working on was to have the leader identify the platform from which they were going to lead this team.

The history lesson was related to the principles of leadership that those who came before them had used to lead this team.

Was the previous leadership based on the elements of:

Position

Experience

Coercion

Personal skill

Collaboration

Strategy

Vision

Communication

Commitment

And rather than have them carry on someone else's leadership style, we then worked hard on identifying the style, the philosophy and the platform from which the new department head was going to lead this team.

Now as we were going through the history lesson and the self-discovery tour, I made sure that this person did not lose sight of themselves, and what made them who they were.

But as we put the pieces of the self-discovery puzzle together, and as we understood what had taken place in the past, I made sure that there was a sense of reality attached to every single item of what we were putting together for them to go forward with, --

The main reality being that the team would react to certain things that the new incoming leader would do, say, think, expect and direct them towards. Some of that reaction (hopefully) would be positive and some of it (no doubt) would be negative, and all of that is OK.

It was how the new department head dealt with these reactions that would go along way in determining their overall acceptance as a leader.

It has been a few weeks now and as predicted, there has been a mixture of reactions. These reactions have been based on individuals' past experiences, beliefs, ideas, wants and needs etc.

Through all of this though, the new department head is remaining true to who they are, their position, and most importantly, to the people they lead.

More often than not, the leader and the team are finding middle ground, points of commonality and points of difference. Like any relationship, the boundaries, priorities and strategies are being directed, discussed and better understood.

The future will continue to show how this leader and the team can more effectively come together.

But where does this fit into your leadership duties and responsibilities?

Over the next week I would like you to take an hour (or a little more if you can afford it or need it), to consider what is the platform from which you lead?

And then once that is understood, ask yourself this question -- simple to ask, but difficult to answer, "Is there a better way?"

And as you do, remember-

The Journey Continues!

careersemp loyment

Is There A Wall Between IT And The Rest Of The Company?

2008-05-23T23:54:00.000-07:00

Here's the picture: A multichannel company with sales of $20 million has an aging order management system that has been in place for over 20 years. While there are some things that the users like about it, they have basically outgrown the system. They need far better marketing information, e-commerce site to business systems interfaces, forecasting and inventory management, and the ability to deal better with light manufacturing and tracking sets and kits, which are a major part of their business.

The president authorizes a project to investigate replacing the system. Immediately a turf battle ensues. IT is already researching the Internet for the most technically up-to-date IT platform. The users' comments are predictable: "They'll pick the most expensive, technology-driven system out there regardless of whether it fits our business." There is a proverbial glass wall between the two groups in many companies.

The outcome: After months of no progress, the president shrinks from his responsibility and says, "We'll keep the current system."

Unfortunately, this scene is played out on a daily basis in many companies both large and small. In defense of the IT department, they are often given responsibility for everything from telephone systems, to help desk, to advanced WMS systems, e-commerce systems and e-mail systems. Most often they are under budgeted. Management backs into a percent to net sales that the company can afford to spend. Additionally, the technology is diverse, complex and represents generations of different languages, databases and standards.

But in defense of the users, IT more and more takes a technological point of view rather than a business perspective. By a "business perspective" I mean that, in many cases, IT no longer knows the company's business-not the mechanical things like how to enter an order. They lack knowledge of the industry overall. And they lack the understanding of how to help you grow and manage your business. Examples include details about what will make your marketing more effective; what do the merchants need to plan, grow and evaluate their merchandise selection; and how to help operations become more efficient. In many companies, IT often looks at application function as secondary to technology. Additionally, they hide behind a lot of technical jargon that pushes users away from them.

And systems software vendor salesmen are no better off. Gone is the day when talented sales and support people really understood the industry. Many barely know their company's system, and many can't even demonstrate their system without the aid of a support analyst.

The result of all this is a collection of negatives.

A technically advanced system or a system that fits the IT standard is selected. It may be a weak system from a business perspective. Technology by itself rarely gives an ROI.

The IT department's lack of a business focus means that users don't ever make high-level use of the systems in place, because they don't know what applications and capabilities exist in commercial systems or in previous generations of in-house developed systems.

Another result is that there isn't a partnership between the user departments and IT, which optimizes the full, untapped potential of IT. The company suffers because the rather large investments in critical applications don't materialize or they are years off of the projection.

Tear down the wall

You will have to start thinking differently in order to change things.
Is there failure to recognize problems with IT? This amounts to costly neglect. Ask, is IT an expensive utility or a necessity in your company? Your management team and IT need to have a clear understanding of the mission and charter of IT, to provide information systems that assist in company profit and growth.Is there failure to get IT to realize its role in the future of the business? Put IT management in place that understands the bigger picture of your business and the information that is required to manage and grow it.Is there failure to make your IT director an equal partner in your strategic planning process? There must be exposure to the company's direction and an understanding of where IT plays the crucial role. Get IT buy-in early rather than just handing them a list of requests after many months of meetings.Is there failure to fully utilize IT resources? Develop internally, or hire, business analysts who are interested and dedicated to maximizing the user community's use of the systems.Is there failure to hold users accountable? Don't let the users hide behind IT flaws and shortcomings. They should know the business and they need to take responsibility for understanding the applications with which they've been provided.

Outside resources can help your company make this transition. In our consulting assignments, we have successfully assisted companies in making these types of sea changes.

careersemp loyment

Executive Coaching & Change Management - Top Tips For Delivering A Successful Change Program

2008-05-23T23:29:00.000-07:00

Change projects have a habit of only reaching a partial level of success, in regards to their initial purpose. The most referenced statistics on the succes of change projects indicates a general 70% failure rate. Which is a humbling thought when one considers it might be you reputation and/or career on the line. Over the years I have coached many senior leaders who have often shared their thoughts on change and change projects, these have mingled with my own experiences and come together nicely in these Top 9 Tips.

Top 9 Tips for delivering a successful change project

1. It's the people

(aka: Say it as it is, always, amen brother!)

When giving a presentation the saying goes, 'tell them what you are going to tell them, tell them, then tell them what you've told them!'... it's one of those classic everyone already knows it statements, which though basic, is also completely accurate. Now consider that all change programs require a presentation of Why, When, Where, What, Who and How. If you where giving this information to a team you'd follow the advice above. But this is difficult; you have to rely on many other contributing factors to ensure a coherent and direct message is being received and the bigger the business then the larger the network involved and the increased probability of mixed messages and arbitrary translation of said message. Recently I was involved with a major integration of two leading brands, both with a 90%%2B market recognition, 'don't worry said the MD, redundancies will mostly be voluntary and in the low hundreds'. "Within that same week a senior member of the management team had accidentally emailed the HR/OD middle management with a document that indicated that redundancies topped out at about 2,000".

So what does this prove, apart from emphasising my personal misgivings of email, it tells you that somewhere at the core of this major change effort, the largest in that industries history, that at the core there was a truth, but in the delivery there was a lie..ever heard the saying: 'the truth will out'. When I say that the leading 'Change Tip' is all about the people, I underline that with telling the truth, immediately, upfront, from the start, right away, at the beginning. The biggest mistake is to 'over-control' the truth, because you only have a finite knowledge of it at any given point. The truth is always the truth as it stands right now, never the truth as it might or will be. Your people understand this.....really they do.

TIP 1: Don't control the truth, even when you think you are, you are wrong.

2. Process dictates

The way something has to be processed dictates the manner in which you/I will respond to it. Case in point, I recently had trouble with my internet connection and had to deal with Netgear's Technical support line (in essence excellent), based in New Delhi, these guys are so patient it beggars belief and so at the end of one particularly taxing call they agreed to replace my Router (the bit that let's the internet talk to my PC without a cable).

The conversation went like this:

Netgear: 'We will email the UPS ticket and then you can affix it to the.........'

GB: 'Er, can I just point something out'

Netgear: 'Certainly, sir' (patiently allowing me to interrupt)GB:'You deal predominantly with communication products.....right?'

Netgear: 'Urm.....yes'

GB: 'Right.....well not wanting to state the blindingly obvious, but would I be right in saying that as you are the Technical Support line that usually most people only call you when they have a problem?'.......'and as my problem is that I can't connect to the internet, then it would be reasonable to presume that I can't get email?'......'and that Netgear sending me an email, would be pointless as I have no internet access'

Netgear: 'You can pay extra and get UPS to uplift'

GB:'So your product is faulty, but I have to pay?

Netgear: 'Yes'

GB: 'Aha!" (I felt I had spotted the hole in their Business Model)'

Netgear person superb! Netgear process diabolical! My opinion well, probably the same as yours. So what's the tip?

TIP 2: Listen to the people that are implementing the process, they know .....really they do

3. Reward validates

(aka: People do, what the process rewards) 'You can pay extra and get UPS to uplift'

'People do, what you reward' The Sociologists dream of everybody working for the good of mankind is shared by all of us and yet until that wondrous day arrives, the following applies. People generally operate under a simple directive which states, 'If I like it I will try to do more of it, if I don't like it, I will try to do less of it', with a proportional increase relative to 'how much like or dislike there is'. Sounds straight forward and as with most theories it is, the problem occurs when the business is not congruent in their approach to:

AppraisalBenefitsCultureDisciplinaryPerformance Management

Aligning the process and culture of a business is equivalent to saying, 'do we practice what we preach'.

Are we saying it's all about the team, but rewarding the individualSaying it's about caring for the client, but rewarding on the quantity of the salePraising entrepreneurial activity, yet disciplining non-adherenceStating we care for the employee, whilst integrating services and losing staff

Within the bullet points above is the every day reality of whether or not I will want to do more or less of a thing.

Does the reward match the objective, which in turn matches the stated goal!What will I get rewarded for?What will I get punished for?Are we aware of reported Rewards/Punishments, in relation to perceivedRewards/Punishments

Take the time to understand Reward vs. Activity vs. Culture, when these are aligned you have harmony, when not you have dysfunction.

TIP 3: Use an outside resource to go where you cannot, to listen where you cannot, to tell you what others will not.

4. Understand what Performance Management

(aka: Performance Management means the good and the bad)

'Ensure people understand Performance Management, and how it relates to all areas of the business plan'. One person's Key Performance Indicator (KPI) is another persons Milestone (sounds suspiciously like Mill Stone), which is why when Performance Management doesn't work, the reason is often because there is dispute about what it actually means.

Performance Management is often feared as it is felt that it will stifle the business, dampen entrepreneurialism and be used as a weapon of choice, which is potentially valid. So ensure that Performance Management is seen as a complete process, rather than merely targets.Define the meaning of Performance Management to mean exactly that, Managing Performance. Do this by enlarging the concept of Performance Management to encapsulate Attraction, Recruitment, Induction, Placement, Development, Succession and Exit.Redefine the meaning of Performance Management so it no longer means HR are involved and dismissal is looming, reinvent the term to encapsulate both good and poor performance. Everybody gets Performance Management!

TIP 4: Make it all IT delivered. Paper will kill Performance Management and suck the will to live out of those doing the admin.

5. Review your Performance Management Culture & Process

(aka: Be sure that your sure)

An audit can act as a catalyst for change and at the very least if answered honestly will indicate the overall effectiveness of Performance Management within your organisation.

Believe it or not, but you really have to do Step1 first to really do this effectivelyIf culturally Step 1 is prohibitive to doing the audit, then use the audit to validate the need for Step 2.Though if Step 1 is a 'No Go' from the start, you will find that an external OD company would be advisable.

TIP 5: Ensure that you understand the causal links between the processes for Performance Management and the activity this generates.

6. Understand what you learn

(aka: Knowledge without understanding, is data)

There is an observation that goes, 'even though kids of today have learned more at 15 years than their parents, mostly they understand it a great deal less. In the same way don't fall into the trap of presuming that Performance Management is just about Process and Procedure, it isn't.

You will find that the 80/20 rule applies, 20% process and 80% people.Prepare, plan and project manage your new performance management arrangements.Set up positive, effective project teams, build line-management ownership and commitment.Don't be afraid to seek Best Practice from those that have suffered and achieved ahead of you, there is nothing to be gained from trying to reinvent the wheel, especially when there is a tyre dealership next door.

TIP 6: Repeatedly ask yourself this question: 'If I was a consultant being paid to create cultural value to a change project and received bonus to get the project achieved (as opposed to the other way round), what would I do?

7. Be true to yourself

(aka: Do people see what you see, when you look at yourself)

Feedback, feedback, feedback and when in doubt feedback. Be the advocate of feedback, welcome it, embrace it, instigate it......feedback is good, feedback is your friend. Seen the TV show the X Factor? Well that's a show that is dedicated to the concept of feedback, you only have to see the positive and negative effect that feedback has to understand its power. But it's not just the feedback that the judges give, it's the fact that the majority are there under the illusion they can succeed, when in reality they are a shambles. Why? How did it get to that point? No one ever gave them, true and honest feedback.

360º FeedbackPulse SurveysSuggestion Boxes

Performance Reviews

Forums

TIP 7:

Embrace feedback, enjoy the reality of a situation from a different perspective.

--------------------------

Josh Billings

"It's not only the most difficult thing to know oneself, but also the most inconvenient"

--------------------------

8. Coaching

(aka: It's what we do around here)

I can't stress the importance of having the capacity for coaching within a business; we are not talking about psychotherapy, but concise, guided, lucid, experienced coaching. The nearest parallel is that of a sports coach, fundamentally a person who's primary focus is on improving performance, not worrying about whether you had a banana fall on your head when you were 4 years old. Investigate the differences and the similarities for the following disciplines: Business Coach, Life Coach, Councillor, Mentor, to ensure that you have an understanding of the impact these activities can have on your people and the business.

I once heard a policeman asked whom he thought should be allowed to have guns, his answer was simply: 'anyone that doesn't actually want one' . He then expanded on this with: ' it should be automatic disqualification for holding a gun license if you ask for one'. Genius! I have also heard the same thing applied to politicians, 'we should in all reality only give power to those that don't want it, they are probably to be trusted the most'. True! THIS MEANS: Don't let people coach internally just because they want to or bring a coach in just because they have a qualification.

When considering the relevant person to act as a coach in your business, especially during times of change, it might be wise to consider the above. Use coaches to work with individuals and teams to help them understand their strengths and development needs, and to plan and take appropriate development actions to improve their performance.

TIP 8:

Transfer coaching skills to managers, to make coaching part of day-to-day life.

--------------------------

Charles Darwin

"It is not the strongest that survives, nor the most intelligent, it is the one most responsive to change"

--------------------------

9. Learning & Development

(aka: That's Learning AND Development)

Continue to up skill everybody, no-one is too senior to develop, even though it doesn't feel like the right time, in fact, whenever you feel it is completely the wrong time to develop people, there is a good chance it is the most critical.

TIP 9:

A business demonstrates its commitment to a workforce through the learning that it advocates. What are you saying?

As an executive coach I have gained a belief from those I have coached and those that have shared their thoughts with me: "The success of any change programme will be in direct correlation to the amount of focus you have given to the engagement and development of the people involved in the change".

It is a simple truth!

ethics news

Pareto Principle - The 80/20 Rule

2008-05-19T14:30:00.000-07:00

As many of you well know the Pareto Principle, or the 80-20 rule, affirms that 80% of the effects come from 20% of the causes. For example 80% of what you wear each day is, in actuality, comprised of only 20% of your entire wardrobe. Same thing with the items you may use in your office, and the groceries you eat in the course of a week, and the colleagues you email during your work day. In all cases, 80% of the items you use are only 20% of all of your options.

In business the Pareto Principle translates to 80% of your profits and income are generated by 20% of your clients. This "rule of thumb" breakthrough was discovered by 20th century Italian economist, Vilfredo Pareto. The most striking part of his discovery was that the largest amount of wealth was not necessarily distributed to the smartest individuals, but rather the most progressive people who were doing things differently.

You may be asking yourself, "How does this principle REALLY effect me?" After all, you understand the general concept of the 80-20 rule, so what else is there to get? Well, think about how you apply the 80-20 rule in your daily life, and how you allot your time to each activity you perform every day. If you begin to spend a little more time on the activities that produce the MOST income for you, and less time on the tedious, not-so-important activities, don't you think your income would multiply several times over? The answer is YES!

What you need to do to start is to make a list of all the events and activities that you put time into each day. Then prioritize them in order of Most Income Producing activity to Least Income Producing activity. Figure out which ones MUST be done by you because they require your natural talent, creativity, or authority and which ones you can PARTNER on or OUTSOURCE. This is key.

Let me give you an example. Let's say your business has twenty-five activities that you're responsible for each week. We'll put a monetary value on some activites-let's say sales brings in $120,000 a month, marketing $120,000 a month and the others bring in $60,000 in total per month. Given the 80-20 law, don't you think you'd want to focus on those two activities to blow revenue out of the water and outsource the others?

While you put your time and effort into the major activities, there are other assistants, family members, interns, colleagues, etc who are excellent at the smaller-end and administrative activities that need to be completed. You could also look into a virtual assistant and outsource projects online. You don't have to feel like you carry the weight of everything on your shoulders. Just ASK for help.

The discipline for you comes in managing your time and making yourself follow the schedule you set. While focusing on the high-revenue generating activities, you cannot allow yourself to fall into the email trap, or coffee break and water cooler rest. Test yourself to see if you're on track by asking, "Is what I'm doing right now moving me closer to my goals and generating revenue?" Sometimes it helps to have a cut out of that question posted in your office. This way it visually triggers you to stay on track.

Bottom Line: If you realign your attention and work on the most business impacting, revenue generating activities, then you should have no problem multiplying your income within the first 30 days of applying the Pareto principle.

fundraising

Attention Managers! - Focus Your Attention!

2008-05-19T13:35:00.000-07:00

In today's fast-moving society it's easy to get scattered in focus and effort. The result is underperformance and missed opportunities As a manager you can achieve better results when you focus your attention.

MULTI-TAKING IS OVERRATED

Managers need to focus their attention in a few high priority areas. The "critical few," essential to management success, are the areas to concentrate on, if you want results.

Watch children at play; they can do several things at once (and have the attention span of a "gnat"). Easily distracted, kids will yell, and talk, and spin and run and play games and make up stories and chase other children-- all within a matter of minutes. But we live in an adult world where managers cannot afford to be torn in multiple directions simultaneously.

MANAGEMENT IS DIFFICULT, and it requires concentration.

Leaders who understand management select a few priorities and then expend vast amounts of energy on them. No matter what your politics, a good example of focusing attention on a few priorities was during Ronald Reagan's presidential administration. President Reagan had a few top priorities: end the "cold war," increase "patriotism," and improve the economy. Because he focused on these few "big ticket" items he enjoyed a successful presidency.

SELECT YOUR PRIORITIES.

What is critical to the success of your business (or your segment of the business)? Peter Drucker was the man who invented the term "management." Drucker felt that planning should be the top priority and that managers should focus on the external environment. He also felt marketing should be high on the list. Pick a few high "payoff" areas to concentrate on rather than spending time and energy on scores of relatively insignificant matters.

COMMUNICATE YOUR PRIORITIES.

You can't do it all by yourself, and you shouldn't try. Management is all about "getting things done through other people." If you clearly communicate your priorities to your staff, and follow-up with high levels of attention paid to those areas, you should see results. If your priorities are unclear, unimportant, or constantly changing, you will surely fail.

MEASURE YOUR PROGRESS.

How are you going to determine your progress if you don't measure results? The answer is obvious, you can't! What should you measure? How often? And, how will you set up a process? How can you be sure you are measuring the right things?

Select those areas which are essential to the growth and profitability of the enterprise, then rigorously examine them. Have your staff provide input to this process. This will help them in focusing on your, and the business, priorities so that everyone is contributing to the organization's mission and goals. Benchmark your progress by including factors which other businesses in your industry most commonly measure and report. Some things need to be constantly measured, while others can be measured less frequently. Take a look at the "cycle" for each of your measurements -from start to finish- to establish the proper timeframe for each factor. Then simplify the measurement and reporting process so that it isn't too burdensome, otherwise it will fall into disuse.

Remember, managers, --focus your attention!

by: Dr Ben A. Carlsen, MBA

Business online blog

Risk Opening The Door To Business Success

2008-05-19T13:00:00.000-07:00

Business success involves risk. Most entrepreneurs know this when they launch their companies, but as time goes on, it becomes harder and harder to take new risks. We get comfortable. We're afraid of rocking the boat. Doubt creeps in. Dreams die.

Success is a way of life-and that involves taking risks. Don't let fear or anxiety keep you from trying new things or considering new approaches. Technology, business models and target markets change over time. Your business also needs to change or you risk being left behind. Fear tells you that it's risky to move, but the truth is, you risk being run over when you're standing still.

I find that companies are especially fearful to take risks when it comes to marketing. Even if their old ways of marketing aren't working or aren't getting the results they want, many business owners are afraid to try something new. Afraid of the cost, afraid of the possibility of failure, afraid of being too bold. Fear costs them the opportunity to get ahead of the competition.

Trying something new is always risky. Waiting until the idea becomes tried and true reduces the risk-and the benefit. Good marketing uses research and solid experience to develop fresh ways to promote your company while reducing risk as much as possible.

Did you ever realize that your marketing reduces fear for your prospects and clients? By promoting the solution you provide, you reduce your prospects' fear that they won't find what they need. Whether their problem is replacing a computer system that doesn't work, redesigning their home or finding the perfect gift for a special person, the problem is important to your prospect. There is risk for them if they choose a poor solution. If you don't market your company, your prospect may never know that you provide the best approach to solve their problem.

Here are three ways to gain courage for making a marketing change:

Tip #1: Visualize the tangible outcome. You're more likely to find the courage to try something new or take a risk if you have a complete mental picture of how significant the outcome will be. The more detailed your visualization, the more real it will be in your mind and the more motivated you'll be to take the necessary risk to make it happen.

Tip #2: Make a plan. New things become less frightening when you have made a plan to approach them. Gather information, break a big task into small steps, and create a plan to walk through your risk step by step.

Tip #3: Hire a guide. Doing something new is much less frightening-and less risky-when you don't go it alone. If the idea of starting a new marketing campaign gives you the willies, get expert help from someone who shares your dreams. Your best guide will share your commitment to getting tangible outcomes from your marketing program and will help you create a plan to reduce risk and optimize results.

By applying these three tips, you'll find the courage to commit to freshening your marketing with a new outlook and new activities. Make a plan, take a risk, and find out how great it feels to see your marketing plans come to life!

careersemp loyment

Preparing for Successful Process Improvement

2008-05-19T12:28:00.000-07:00

An integral and often overlooked step in improvement work is the preparation work: defining the project and gathering the facts that are essential to gaining a good understanding of the existing process. Too often this initial phase of a project is given cursory attention or ignored altogether. This is the first in a series of papers dealing with the up-front work in process improvement projects.

Setting up the project

Select a process to study. A process is a series of steps that are completed to accomplish a particular result. The result is what our business is interested in (hopefully); the process is what we do to get it. Sometimes a process begs for review...When it takes too long to achieve the result, when there are complaints about the result, when there are errors in the result...these are all things that point us in the direction of a particular process to study. However, problems aren't a prerequisite. Any process can be studied and improved.

Identify your objectives. Sometimes the objectives are obvious. If there are too may errors, we want to reduce the number of errors. If the process takes too long, we want to get through it faster. Whatever the objectives, it seems that reducing cycle time is always included. Sometimes the objective is simply to document the process -- so people can understand it better, to meet regulatory or certification requirements, to satisfy an audit...

Identify the process start point. What is it that triggers the process? Is it the receipt of an application, an email request, an order form, a phone call or are there several triggers?

Identify the process endpoint. How far will you follow this process? Until the application is approved, the product has shipped, the product has been received, a notification email has been sent?

Identify WHERE the work occurs. The best way of doing this is to let the process tell you. Walk the path of the process (perhaps make a couple of phone calls - keep in mind, this isn't the time to gather details...you just want to know where the work is).

Identify WHO does the work. When you know where the work is, the area supervisors can tell you WHO the most experienced employees are ...the folks they just can't spare for "another project". These are the people that you need to work with. (It is more important that they are available for analysis, but getting them involved up front and familiar with the process maps early on will only help.) It is far better to spend a little time with someone who really knows the work than a lot of time with someone who doesn't.

Get the support of the executive whose area of control spans the process. With a well-defined project that includes the items we just worked through, this should not be an issue. This executive's role in the fact gathering phase of the project is limited but essential and, in fact, determines whether to proceed or not. They need to demonstrate buy-in to the project, signing off on a Project Agreement / Description / Charter and giving the project facilitator the okay to move forward. They demonstrate support and outline expectations in the form of a public announcement. More on that next time.

branding news

Leadership and Change - The 3 Key Roles of the Change Leader

2008-05-19T11:54:00.000-07:00

Those in leadership positions will sooner or later have to deal with change on a significant scale. It is claimed that as few as 3 in every 10 changes maintain momentum beyond the initial phase of enthusiasm. So what 3 key roles must change leaders master?

Clarity of Vision

Leaders need to be able to create a compelling vision of what things will be like once the change has been made. It sounds like it is something that is really easy to do but in truth it is incredibly challenging. As a leader of change you need to be able to recognise when change is needed and then get a crystal clear view of what you need to create to give your function or business the edge.

Communication

Communication is often regarded as talking and writing and less so about listening. Leaders when faced with change need to be masters in all three of these areas. They may need to present their vision to a Board, which will require them to articulate it clearly. They will also need to listen to the concerns and re-assure. Once they have top level support, the message needs to get passed through the organisation and concerns need to be heard and responded to.

Empowering others

The leader cannot do everything on their own without the help of many others. The leader has the challenging role of empowering others while at the same time making sure that the change moves in the desired direction and delivers the expected results. As part of the empowerment, a framework needs to be developed to check on progress and ensure that all of the constituent parts in the process are functioning as they should.

Change is a challenge and leaders have a key role to play in delivering sustainable change in the fast moving and demanding business environment.

entrep

Business Improvements - Project Mechanics, Business Dynamics, Corporate Optics and Office Politics

2008-05-19T11:16:00.000-07:00

This article looks at how business dynamics impact the orderly improvement of the business.

Business Dynamics are internal/external pressures to strengthen, grow, streamline, consolidate or simply improve what the organization does and how it does it. The entity affected by changing dynamics might be the entire enterprise; one or more business unit, divisions, departments, sections, etc.

Business Dynamics fluctuate wildly, today's need, opportunity or issue is likely not the same as yesterday's and will probably not be the same as tomorrow's. Whatever the dynamic(s); steps are taken and at some point, the organization will be different. At that point, new mechanics will govern what the organization does and how it does it; the need, opportunity or issue will be addressed... Or will it?

Business Dynamics are not nicely sequential, are not nicely spaced apart and are not arranged into neat boxes or compartments. Yesterday's dynamic(s) gave rise to one or more responses based on what was known then. Today's dynamic(s) give rise to responses today and tomorrow's dynamic(s) will do the same and so on.

Dynamic responses to change what the organization does are linear and insular. This has to be fixed, fix it. Linear, insular viewpoints frame the dynamic response such that what are intuitively obvious questions are muted by ego, power, control, n-i-m-b-y and subservient influences.

Whether today's dynamic response(s) will impede, intrude, interfere or even nullify yesterday's dynamic response(s) is very much left to chance...

...and that is not something stakeholders would wish to hear!

Whether today's dynamic response(s) could be quicker, cheaper, less prone to issues, of higher quality and with greater stakeholder satisfaction by piggy-backing on yesterday's experiences and outcomes is a question almost always left unanswered...

...and that is something that should trouble every stakeholder!

ethics news

Change Implementation and Feedback - Create an Engine That Drives and Sustains Change

2008-05-14T19:15:00.000-07:00

As a manager, does it matter to you that your change initiatives succeed? Then they need your attention. If asked about the biggest difference between successful changes and failure, I would have to say "feedback". Feedback is how a business demonstrates that a change matters -- the true priority of the change. It is also how it ensures a change sustains at the required standard. In short, feedback is how a business pays attention.

But let us be clear about what we mean here. If someone comes up and says "Can I give you some feedback?" most of us groan inwardly and wonder what we have done wrong. That is because we confuse feedback with opinion. If the person is credible, we can choose whether to accept their opinion. But feedback is just information to an individual about their performance against a standard. Provided properly, feedback is the engine that drives sustained high performance.

Below are five tips to help ensure that your use of feedback significantly improves your chances of change success.

1 Set standards - Feedback is useless without standards. People need to know the standard of performance that is needed. They do not know this through telepathy. If you need changed performance, you need to explain the new standards of performance required. You cannot expect higher performance if you do not tell people. Worse, NOTHING is more demoralising that receiving negative feedback about something that you did not know was important beforehand.

2 Set a feedback cycle that synchronises with the real job - People get feedback day-to-day on their 'real' jobs. This is how, in practice, a business demonstrates priority, attention and importance. If we put in a change, then we need to set up feedback at least as frequently and with similar weight to those forms of feedback we provide already. A new CRM system, for example, needs good discipline about data quality. If we provide daily feedback on revenue numbers as usual, but offer agents feedback on the quality of data capture only in monthly reports -- then our expensive CRM system will very soon be so much junk.

3 Automate it -- but pay personal attention - Feedback information needs to be objective and preferably automated. The standard is either met or it is not -- do not make it a matter of opinion. Then make sure the person gets the information in ways that they can use -- and that you know about it.

4 Catch people doing something right - Hearts sink at the prospect of feedback because it is usually offered when things are wrong. But people also need to be recognised for doing the job well (and know that you are aware of their good performance so they keep doing it).

5 Offer positive alternatives - When I used to direct theatre, I learned very quickly that to tell an actor not to do something was the kiss of death. If I did, they spent the rest of the rehearsal thinking about what they should not do, not what they should have been doing. It is the same at work. Every time you need to have the feedback conversation about a shortfall in performance, make sure that it is framed as giving the person something different to do, because what they are doing now is not working. Offering a positive alternative is practical and motivational.

Do these things to set up a 'feedback engine' for any change that is important, and pay attention to the things that you need people to do differently. If you do, you will find that not only will you get better performance -- you will get it for longer.

ethics news

Secure Management Commitment To Change In Business - Five Steps You Can Take Today

2008-05-14T18:41:00.000-07:00

By taking the five steps set out below, managers can maximise their chance of change success.

Why is 'lack of management commitment' cited so frequently as a cause of change failure?

Often, it is because no-one articulates the commitment needed of managers to have the change succeed. In my experience, the only sustained way to show commitment is to continue to pay attention, not only at the start, when you release the resources and give a big speech, but during the change, when the real work is happening. With this in mind, here is a five-step commitment plan for managers involved in change.

1 Explain what the change is and why it is needed - Spell out what change is needed, why it is important, and how it will work. Do this at the start of the change and throughout the change process.

2 Require milestones that show what has been delivered - Demand a plan that shows what is to be delivered at regular intervals (four weeks at most). For each deliverable, seek evidence of how it is taking you closer to the goal.

3 Set standards - In change, a key role for managers is to set and maintain standards for behaviour and performance, not only for the outcome, but also for the milestones. Remind people of these standards and immediately pull up people who fail to meet them and praise those who meet the standards early or well. One personal standard to set is to include the change project as an item on your weekly management team agenda so that you review it frequently.

4 Go and look - When change is delivered, go as early as you can to see it in action with the people who are affected. Make sure they know you are paying attention, and that you want them to tell you what is working well -- and what is working less well. Follow up your visit straightaway with a note to those you met outlining what you learned and the actions you will take.

5 Remove barriers - Change projects do not run smoothly. Any time you talk to those involved, ask them to tell you the barriers they face, and help to overcome them -- be it a phone call, additional resources (within reason), or to bring conflicting parties together.

If you are a manager, follow the five steps above to maximise the prospects of change success. If you are on a change team and need to ensure management commitment, walk these steps through with the relevant manager, and build the associated activities in your implementation plan. As a manager, commitment is demonstrating that the change matters to you. Do these things and you will greatly increase your chances of success.

customer services

Supervisors - Know What's Expected, And How Success Will Be Measured

2008-05-14T17:58:00.000-07:00

Ideally, your boss is as invested in your success, as you should be in your own employees' success. Ideally.

But very few people are so fortunate that they begin their supervisory careers in well-managed organizations with crystal clear expectations. Everyone's on best behavior during job interviews, not just the job candidate, and it often happens that the rosy scenario you're supposedly walking into is a bit more complicated than it appeared. Even given reasonable goodwill, many veteran managers talk without nostalgia about the "sink or swim" situations where they started out.

So, your early days on the job will require serious extra time and energy. In addition to walking around and learning as much as possible about your employees and what they do, you'll need to have enough communication with your own boss to flesh out expectations and be totally clear about how your own job performance will be measured.

Don't be put off by talk of the "good old days" - that can be a sign of a healthy workplace culture. The information can be gold, and, more importantly, that's good energy you don't want to squash.

It's great to hear stories about the cast of characters, and about grand experiments that failed or succeeded. What have been some chronic problems? How would others like to see your department work well with theirs? Yes, be careful. Some of it's just gossip, and your biggest need is to have a vision of success that squares with the people who hired you, and can be transmitted to your people.

How will it be measured? If it's purely dollars and cents, well... you need to know that. But sometimes the task is to update and modernize, rein things in, loosen them up, bring calm to a situation that has gotten messy, become more efficient, or more integrated into the larger whole.

Now that you're a "colleague," those conversations should have a different quality from the interviews that led to your hiring. How often does your boss want to be updated? What level of problem does management need to hear about, and what kinds of things would it prefer that you just "handle?" You need to hear that, and they need to hear you as you discuss tasks, people, resources, responsibilities, and deadlines.

There's always some discrepancy between what gets said in conversations with upper management about the right way to do things, and what actually plays out on the ground. Some of that's just being human, but it can also morph quickly into a problem - with you being the one getting squeezed. Developing an early understanding of expectations goes a long way toward keeping the situation - and your managerial career - in good working order.

Once that's done, go for it!

accounting payroll news

Getting Change Management Training

2008-05-14T17:14:00.000-07:00

Companies allocate budget for training yearly. This is because training is considered an essential factor for the growth of any business. Training is also conducted so that firms can adapt to the changes happening within the organization or even in the industry as a whole. Changes inevitably occur from time to time and it is very helpful to learn how to deal with them accordingly. Because of such importance, it then becomes an imperative to implement change management training from time to time.

Change management is defined as the systematized application of information, tools, and resources of change that gives businesses a means to achieve company strategy. It is often regarded as a crucial part of any undertaking that manages, commands, and allows people to accept new ideas, procedures, values, and technologies. It is a fact that many organizations would be affected with change management. But then again, businesses always face the challenge brought about by these changes in their respective industries. Change can be classified into two - internal and external. Staff movement is an example internal change. On the other hand, changes brought by government policies are considered external.

It has always been a fact that every company works to improve its system, productivity, and technology. Business owners are also on the lookout to find ways to minimize cost and manage its human resources as effectively as needed. In doing these so-called improvements, change can never be avoided. This is the reason why managing change creates a great impact to organizations.

The usual problem created here is that not all employees are open to change. Studies have shown that workers only accept change if it could improve their situation. However, this acceptance would depend on how change is managed. Change management therefore becomes a big responsibility of business owners and managers. They have to make sure that employees can adapt to the changes in the system to ensure that the company remains on track towards the improvement of productivity.

Extensive planning and responsible implementation are keys to successful change management. Owners have to plan well the strategies to be undertaken to foster change in the system. They need to prepare solutions to possible problems that may arise during implementation. Meanwhile, responsible implementation will involve consultation with the employees. Their sentiments should be heard and given value. Remember that if change is forced, the tendency of the workers is that they go against it. Thus, it is important that workers should be involved so as not to resort to forcing change onto them.

Another challenge in change management is to maintain the present business operation while changes are being incorporated in the system. Business owners should be sensitive while implementing new techniques and processes. A framework here is needed to help prepare employees to welcome change. Take note that workers should feel they are involved in the process rather than being manipulated.

To wrap up, change management is not a simple task. There are even studies suggesting that it is beneficial for a company to form a team to handle such responsibility. Business owners must give their hundred-percent support to the team. It also recommended that members of the said team get change management training to help them in this complicated task.

careersemp loyment

The Psychology of Office Space

2008-05-14T16:34:00.000-07:00

Working practices and office design

Working practices are most commonly decided by management initiatives. Employers establish what is needed to be done and managers direct workers how they can best perform their tasks. Not anymore.

The world of social networking, wireless communication and ubiquitous internet access is allowing employees to work from home, share ideas and better influence their firm's direction.

This societal change is stimulating research into how office space, design office design and new IT systems affect workers, and the results are surprising.

A report by the Commission for Architecture & the Built Environment (CABE) and the British Council for Offices (BCO) has revealed office interior design affects staff satisfaction, motivation and retention.

Furthermore, it affects productivity, responsiveness to technological change and their knowledge and innovation levels.

Paul Morrell, CABE commissioner and president of the BCO, explained: "Those employers who ignore the evidence of office design as an enabler of staff satisfaction and performance risk the loss of key staff and ultimately business success."

The report, Impact of Office Design on Business Performance, found the workplace is responsible for 24 per cent of job satisfaction and this can affect staff performance by five per cent for individuals and 11 per cent for team workers.

The Calgary Herald reported researchers at the city's university found open spaces help workers feel better. However, it was having co-workers nearby that pushed productivity. Tim Welsh, assistant professor in kinesiology, noted how important it was for people managing office moves to consider design.

"If they're looking to maximize idea generation, communication and just a general feeling of social well-being, then open-concept offices would be the better way to go."

The end of 'cubedom'

Writing from across the US border, Edward Marshall, in the Portland Journal has predicted the end of 'cubedom' and the partitioned working space. He claims by giving employees individual boxes to work from, "a premium is put on efficiency rather than relationships" and relationships are then reduced to "transactions".

This, he claims, hampers teamwork as soon after meeting, members of newly formed groups then disappear to their own semi-closed areas.

Mr Marshall describes the current move to openness as a quiet movement to "tear down the walls that exist between us".

The solution, in his opinion is "having the physical office design serve the work culture, rather than having the work culture be a reaction to a design done by the facilities department".

Much of this move to open systems can be attributed to workers bringing their outside experience to the workplace.

Thousands of businesses have banned employees using social networking sites as they are thought to affect productivity. Employment law firm, Peninsula has claimed 69 per cent outlawed using the sites despite 12 per cent of bosses checking their own pages during work, onrec.com has reported.

How an office communicates

Despite this, some companies are adopting similar tools to those found online, hoping to enable their staff to better communicate and feed ideas into the business.

This 'network society' is providing employers with real challenges - if they adopt more social practices do they also re-jig their office design to suit new, open thinking?

Property company, Savills, thinks so. Its research, What Workers Want...and What it Means for Property, found "understanding the needs of workers has never been more important".

"Immediate workspace conditions were rated the most important by over 82 per cent of respondents i.e. comfort of work area, lighting and temperature."

So when considering their corporate relocation strategy and organizing who will be managing office moves, senior managers have much to consider. Help in moving offices,
getting the office moves on time and budget are only three of the factors they will need to get right.

The key to their firm's long term success could be its next office design, and how it understands the psychological result of new open attitudes to working and collaboration.

continuity disaster recovery

Business Leadership - Qualities of a Good Leader

2008-05-14T15:55:00.000-07:00

A leader in any field has to set an example to others, more so in business, he has to be a role model. He should inspire confidence in others. He should be cool and unflinching in a crisis. A leader should be supremely self confident. He should be able to recognize the talent of his subordinates should harness it to the growth of his organization.

A leader has to be a good listener. Communication is extremely important for the smooth running of any business. The leader should be easily accessible. He should device new ways and means to communicate with others. Without good communication skills, it is impossible to become a good leader.

A leader has to be a fast learner. He should also be a skilled manager. He should be able to spot talent and nurture it. He should be able to take risk.

Honesty and integrity are extremely important for any good leader. A leader has to be pragmatic has to change with the roles he has to play. A leader has to know what is going on and should be able to sort out any problem his team is facing. He has to instinctively know the necessities of the team and try to fulfill it.

The leader should choose team members who can complement each others skills. The leader has to fulfill the needs of the employees as well as that of the management.

A leader has to look after the needs of his team and stand by them. A leader should not get discouraged by criticism. He has to listen to various views and take the best decision in the interest of the organization.

careersemp loyment

The Sum of Change AKA Multiplicity

2008-05-14T15:15:00.000-07:00

When Multiplicity is used to advantage it is a vital, extremely powerful and highly beneficial cog in the engine of organizational change. It increases the probability of successful change while directly improving change performance - reducing costs, minimizing delays, allocating resources for best return and so on. No matter how you approach it, managing Multiplicity well results in significant value propositions:

Maintaining awareness of the state and context of all past, all present and all future change across the entire organization prevents waste, replication, duplication and conflict.

Ensuring that change is fully integrated within the organization as a whole eliminates unworthy, unneeded and unsanctioned change.

Knowing what worked, what did not, what can be reused, what should be stopped and what should be rethought ensures that change is well prepared, well advised, well managed and well done.

Cautioning when receptivity for change or change saturation may threaten success is invaluable, sage advice; not necessarily as justification for not proceeding but as compelling arguments for selecting the wisest path to assure best results.

Bringing clarity and cohesion to all change helps every level and every layer of the organization better understand, prepare, execute, manage and accept change.

To strengthen your appreciation of the real life negative impact of uncontrolled Multiplicity, several eye-opening, actual examples where Multiplicity was totally ignored are provided.

What is...Change?
To understand Multiplicity we need to start with a definition of Change. Here is mine: If any aspect, element, part, component or dimension of an organization in whole or in part is consciously altered or adjusted by design it is CHANGE.

I have listed a variety of types of organizational change, according to the definition. You might think that some of the examples are not organizational change; however, my definition noted "if any aspect ... is altered or adjusted by design..." therefore, every one of my examples is valid.

Revising a single script line in a localized customer service process is organizational change
Altering image or brand is organizational change
Adjusting governing policies and practices is organizational change
Refining processes to improve productivity is organizational change
Deploying new technology to simplify business is organizational change
Developing a new product or service is organizational change
Defining and managing a new marketing campaign is organizational change
Acquiring to grow is organizational change
Transferring processes to third parties is organizational change
Consolidating or closing units to decrease costs is organizational change
Entering partnerships to expand into new markets is organizational change
Reframing business models is organizational change

The second one might be thought of as the exclusive purview of marketing or corporate communications, it probably is in terms of concept and creation; however, collateral, scripts, etc. must change throughout the organization.

The sixth example - developing a new product - might not seem like organizational change; however, many parts of the organization must change, alter or adapt to market, sell, install, service, etc. the product.

Change can be carefully planned or uncontrollably reactive; competitive or defensive; strategic or tactical; simply stepping up to meet operational challenges or market opportunities implies organizational change. Leaders contemplate future change; assessing new or evolving threats and possibilities, planning and leading change. Significant energy is spent ensuring decisions about change are timely and as informed as possible.

Change holds remarkable promise at conception. When change is contemplated, it is from a singular perspective - a potentially dangerous misconception. The status quo (to be changed) landscape is viewed as fixed in time and space - a fundamental flaw, full of risk. The what will be (after the change) landscape is imagined from the singular perspective of the reason for change; still fixed in time and space, in the future - a probable cause of disaster.

At any moment in time; every organization will be in the throes of change to a greater or lesser degree. Strategic change initiatives; one, several, tens or even hundreds vie for resources, time and attention - concurrently striving to address defensive, offensive, expansion, growth, contraction and improvement pressures.

Tactical change is virtually constant; business divisions, departments, sections even individuals refine and tune how they work - mainly in reactive mode to fix deficiencies or to meet targets.

Capturing the full width and depth of Change...For your organization; cast your mind across change that has occurred or completed, change that may occur; change that will occur and change that is occurring even as you absorb this material - this is the sum of change, this is Multiplicity.

The distinctions of each of these four stages of change and the unique opportunities for extracting the incremental value that lies within each will become clear. Remember to consider the entire width of your organization while delving into its depths as you reflect on:

All change initiatives mandated by new policies, regulations or events, internally or externally generated.

Every change initiative to improve speed, choice, functionality, service channels, quality, etc.

All change initiatives that pursue corporate objectives of size, profitability, scale, synergy and new markets.

Every small or localized tactical change intended to address a non-strategic problem or opportunity.

All other types of change you foresee or know about...

The latent value of Change...
I use the term "latent" because there is incredible, incremental value waiting to be extracted from every change initiative; well beyond the bottom line contributions, profitability and performance improvements stated in the business case or rationale used to justify each and every change initiative.

Consider your organization; think about every strategic and tactical change initiative that has occurred over the last few years. Incidentally, any and all change initiatives that were stopped, canceled or aborted should be included as well. No matter how large or small; the number, size and scope of completed change initiatives provide a veritable treasure chest of significant incremental value for all future change. When Multiplicity is managed effectively it opens up all types of possibilities.

REUSABILITY

...understanding, locating and extracting incremental value from money or effort already spent...

Do you have any inkling of the reusability potential of completed change in your organization?

Every organization should establish a mandatory regimen to capture, analyze and use the incremental value inherent in change. It is not difficult to establish, the value proposition is sublime.

Here is a real life example of what happens when this is not in place:

A global financial institution headquartered in Toronto, Canada had less than 50 types of customer accounts but was surprised to find it had over 1300 account opening processes worldwide, each developed with painstaking precision and accuracy at an estimated, fully burdened cost of at least $2,500,000 each with several hundred costing many times more.

Over 900 of the 1300 had a possible reusable factor of 30%; meaning 30% of the cost and/or effort associated with every one of the 900 may have been avoidable since they were either mutations or direct duplicates of software, processes or collateral elsewhere in the enterprise.

This outfit wasted as much as $675,000,000 because reusability knowledge relating to past, present and future change was absent. This is the wasted reuse potential of just one process family; just imagine the possibilities in hundreds or thousands of process families. I will not raise the specter of who should be held accountable for potentially billions of wasted dollars, what matters is that the organization wastes time; money and resources - time and time again.

Clearly, the organization in this example has many problems across the gamut of change management. I chose to isolate the reusability aspect as a highly appropriate example; Multiplicity's full benefits, as captioned in the bullet statements earlier in this paper, would do much to set this organization on the right course, not just for the process family noted but for all change.

Getting back to the subject of reusability, unfortunately it is an anathema to many - egos, politics, optics, power struggles, not-in-my-backyard objections, budget expansion and control are some of the many reasons why sane, honest and well intentioned people ignore a virtual treasure trove that can save money, shorten timeline and conserve valuable resources.

Every change initiative generates knowledge, products, artifacts and components; in other words reusable value, irrespective of whether the change initiative was successful or failed abysmally.

Give some thought to the potential that lies within completed change in your organization. Think about just how much might be reusable to save you time, money and resources dealing with change; in the future, across the wide spectrum of process maps, process flows, infrastructure, excess capacity, scripts, software, test beds, skills, knowledge, training, education, communications materials, legal briefs, culture shift learning, resistance to change, change receptivity, change saturation, etc, etc.

How much do you think might be lying out there, unused and latent? I do not expect you to find millions or even billions on the first pass; however, I hope you see the very real potential.

As you start to ask and inquire about reusability in your organization you may be surprised to find that obfuscation, obstruction and objection spring up out of nowhere. Depending on the culture in your organization there may be a propensity to spend money and time defending why reusability is unworkable, impossible, etc.

Before moving on from reusability there is an important aspect that deserves special attention; consider cases where change initiatives include products, services, subject matter expertise or knowledge acquired from external sources such as vendors, integrators, service providers, etc.

In virtually every case requiring contributions from external sources it is dealt with as a one-time event - a fundamental flaw in change planning, execution and procurement. In these cases the external party often nullifies the potential advantages of reuse of their contributions through restrictive covenants on transferability, copying, number of users, number of licenses, geographic boundaries and more.

In future; for every change initiative that comes across your desk for review or approval, specifically ask about reuse relative to the external parties involved in the project - insist and enforce that no future business will flow to external parties who restrict reuse. If they argue, find more flexible suppliers; if they are amenable help them to craft a win-win business model that accommodates reuse.

I hope that my comments have built a case for the considerable reusability benefits of Multiplicity; additionally, there are other, equally valuable dimensions that you can take advantage of.

SIMULATION & PLANNING

...maximizing the probability of success while minimizing the prospect of failure...

Let's look at "probable" and "planned" change to explore additional value hidden in Multiplicity. In the case of "probable" change it is not important how firm your change concepts are; in fact, organizations that really, really stretch their imaginations are those that seem to have a higher change success rate (something else to ponder...).

Contemplate how simulation would assist you in considering future or "probable" change; do remember that Multiplicity is not used to assess the rationale or reasoning for change, it provides reality, practicality and achievability checks:

Simulating Probable Change: Multiplicity, the sum of organizational change, is the perfect source for data to model the status quo or "what is" state; then simulate the change or "what will be" state in order to understand the stretch, reach and value of the change along with attendant issues and risks.

In many cases, large scale change can be handled well with better results if it is segmented into waves; where each wave of change is manageable yet delivers results, with each subsequent wave building on the success of the last. A particular aspect of Multiplicity's simulation value is the manipulation and testing of "waves of change" the organization must pass through to get to the new state - thus avoiding committing resources, time or money to a lost cause.

More importantly, it allows views of every change underway, planned or contemplated - too often change is conceived in isolation from reality; simulation ensures that probable change is related to all other change across the organization, bringing clarity and cohesion while providing reality checks.

Full comprehension of the extent of change required across the width and depth of the organization are keys to understanding the likelihood of success, the probabilities of meeting objectives and the realities of costs, time and resources necessary to achieve the goals.

You will avoid surprises, save money, conserve resources and be more confident of success if every concept is modeled early; before hordes of staff, hungry vendors and opinionated stakeholders start to meld the concept to their own designs.

Change Planning
Multiplicity can elevate the quality, accuracy and certainty of change planning to new heights. It interlocks and ensures key facets are correctly represented during the planning processes when value, benefit, resources, costs, risks, timings and associated matters are defined, argued and organized into plans and compelling propositions. There are three major categories where substantial value can be brought to bear on change planning:

Change Performance:
Your completed change that we spoke of earlier holds immensely valuable knowledge; it is possible to assess how all or similar change worked before; where it was bad, where it was good, what worked and what failed.
You will save through reusability because you can plan to extract appropriate components, materials and knowledge from previous change and use it to cut costs, shorten timelines and conserve valuable resources.
You will increase the prospect for success by learning from previous change - good and bad - and ensure that plans maximize and utilize the value learned while omitting the bad.
You can extract valuable metrics and measures from previous change, good and/or bad, and enshrine these as pre-established performance bonds or guarantees on future change, particularly when external parties are involved.

Change Underway:
In the section on simulation of probable change I mentioned that; too often each change initiative is regarded as insular or singular with a precise objective - the problem is; if you aim a rocket at the moon it will miss by a billion miles (see my article: Shooting at the Moon Again); things move and things change as time passes.
You would be able to examine the implications of all other change underway that would be impacted by this planned change. A great metaphor we like to use is the famous "Whose on first" routine of Abbott and Costello. Waste, conflict and receptivity issues can be pre-empted by cogent and wise change planning; especially in the areas of sequence, size, time to absorb and optimization.
When you are involved in detailed planning for change you need to assess and analyze the value, cost, need and priority of all other change. By this we particularly mean other change that is destined to alter or adjust the same parts of the organization as the change you are currently planning. It is often the perfect opportunity to step back, consider and issue directives to adjust, refine focus or perhaps say... "Stop".

Change Saturation & Receptivity:
Receiving unit receptivity is a common source of change failure. It is the inability of the unit or units to learn, absorb, integrate and inculcate the resultant new way of doing business into the operating fabric of the organization in a timely, productive fashion.

Incidentally; this is not the fault of the units or people therein, it is the fault of those tasked with the leadership of change or project management.

Earlier we pointed out that you have the ability to understand what worked and what didn't. Taking this extremely valuable knowledge further you can define and determine corporate approaches that become the standard for injecting change.

If you know of receptivity issues ahead of time and know how to boost or alter them you have an important edge, a key for success.

Change saturation is equally damaging - too often a change is impelled or compelled with good reason yet is not rationalized against change just past, or presently underway or coming shortly - all being injected into the very same environment, sometimes even concurrently; the impacts and issues should be obvious...

Multiplicity contributes in many ways to change simulation and planning - you will know what to avoid, what works, what to expect, what will save time, money and resources and what will need special attention.

Here is a real life example of negative impact when the change planning aspects of Multiplicity are ignored:

A New Jersey based Enterprise Telecommunications Company used an outdated version of an application, heavily customized, in its US domestic operations.

The CFO ordered a roll-out of the next version of the application to the rest of the world (vanilla - no customization permitted) with the order that all processes and practices around the world (except the US) were to be changed to fit this new application. Previously all international regions had home grown, customized systems with subtleties and features keyed to the needs of their environment. The US was to keep using the original version until the international business was on-stream.

Chaos ensued globally; customers departed in droves, service levels plummeted, costs skyrocketed; process disconnects multiplied, language and culture impacts compounded; internal dissent at all levels became extreme... For reasons that escape me - the CFO concluded this was 'on-stream' and blithely ordered US operations to use the new version; the US refused, point blank, to accept the new application without radical customization.

Quite a conundrum; without customization the company may not survive in a key market (US); with customization all international regions will have to change yet again...

Cohesion, clarity and practicality of change planning were absent, wasting countless millions of dollars.

CURRENT CHANGE AND ACCOUNTABILITES

...knowing who does what to what and to whom, in what order, when and why...

To summarize; so far we have dealt with change as an entity - completed change, probable change and planned change - and have shown there are always potential opportunities to remove duplication, avoid replication, allocate resources efficiently AND shorten timelines across all change initiatives.

Now we examine the value propositions of Multiplicity that exist within the major contributors to change; by this we mean organizational units or accountabilities.

Change Agent, Sponsor, Client...
The person or unit that holds the authority and budget (usually) for the change. You know the qualities, competencies or accountabilities that led to allocating this and other change initiative to this change agent. You know the structure, power, need, ego or political influences that came to mind.

Irrespective of rationale; Multiplicity forces questions;
Are all initiatives led by this change agent tightly interlocked and interrelated?
Are they aligned and/or prioritized according to the overall organizational change universe or are they personalized and individualized to the change agent?
Who examines and determines opportunities to save time, money and resources by removing replication or reusing artifacts across initiatives?

Multiplicity also pays dividends in many dimensions - top down, sideways, upwards, outwards, inwards... For example, change agents can assess what other change agents are conceiving, planning or doing across the organization - in the context of any common receiving units as well as well beyond.

By understanding what change is occurring elsewhere and why, by sharing how and when it is only natural to find many opportunities of commonality that can be used to advantage - saving money and time while conserving valuable resources and learning.

These opportunities are actually precursors to reusability! If several change agents are running multiple change initiatives and commonality opportunities arise during construction...

Receiving Unit or Units...
The organizational entities or individuals destined to receive and use or be replaced by the outcomes and deliverables of the change. Planning and execution of change is a delicate balance, driving forward to the end objective while managing co-ordination, injection or implementation timing and cohesion issues.

Pay attention to the environment and morale within receiving units, issues can snowball quickly and painfully because of the ripple effect where the products or deliverables of one change cancel, dilute or cripple the products of another.

By involving receiving unit management in the understanding and interlocking of Multiplicity you can assuage fears of a never ending cycle of retrofits or corrections? These are particularly relevant to business units where localized, tactical change is proceeding in concert with or in spite of strategic change.

Additionally, receiving units can view the scope and range of impending or probable change they need to plan for and accommodate. They can raise awareness of receptivity, saturation or other impedimenta. They can align and energize commitment and momentum. They can reach out to other receiving units to benefit from relevant experiences and lessons.

Change Contributors...
Many individuals or units contribute time, energy, components and knowledge to make change happen. These are usually managed through existing project and/or change management methodologies and mechanisms.

Clarity and cohesion of change across and between contributors is rarely tackled - a large source of untapped value, such as finding excess capacity, equivalent capability or knowledge repositories elsewhere across the organization that can fill the need, saving time, money and resources.

Here is a real, almost unbelievable example of what happens when contributor change clarity and cohesion is absent.

A global footwear company has suffered through a $500 Million global ERP implementation underway for over five years with virtually no bottom line contribution.

It still needs hundreds of millions and more years to complete AND it is simply laid on top of the enterprise with no process integration or re-engineering costs or benefits, yet!

Oh, by the way, it cost $100 Million in lost sales and the stock went down by 20%. Goodness knows what the eventual cost will be and when ROI goals will be met.

A commitment to managing Multiplicity would have brought sanity to this before it started, segmenting the effort into manageable chunks, ensuring technology and processes were integrated for value and quick victories, a stepped progression toward the global objective.

Summary

As you master Multiplicity you will find it invaluable as a decision support tool and management guide - it is not a litmus test for the rightness and relevance of change, it ensures value extraction and risk mitigation as change progresses, across the organization.

Now vitally important data - what was, what is and what will be for any and all instances, for any and all change agents, for any and all receiving units, for any and all contributors, etc. spans the past, the present and the future. Analysis based on time or separated by time can be a powerful weapon, able to extract Multiplicity's latent benefits.

Finally, business cases and accounting structures tend to deal with change in isolation - straight line, if you will. This next sentence may be confusing but if you can follow it, you will be on the road to being a change master...

If a Change initiative costs millions and millions of dollars with a ROI of several years or more yet the environment where that Change was injected Changes six months later because of more Change and Changes the precept for the original Change any pretext of being able to measure the results and value of the original Change is false.

This paper demonstrates that Multiplicity has many benefits and that it is possible to derive incremental value; thereby creating opportunities to save considerable time, significant money and scarce resources. If you have qualms or questions please let me know.

entrep

Be a Star Performer at Work with Minimal Effort

2008-05-14T14:35:00.000-07:00

"What's the big secret? What really separates star workers from average performers?" you ask. How will you like to be a star performer without much effort? The article below is written with the simple objective of directing you to the blueprint for success in both your work and life, with minimal effort required.

Now start unveiling that star performer within you, as you equip yourself with the strategies for success.

1. Network
Be proactive in getting direct and immediate access to coworkers with technical expertise and sharing your own knowledge with those who need it. The goal is to minimize the knowledge deficit that is inherent in every brain powered job.

The first trick to being a star performer is to know where to get help. By knowing where to get help when you need, you are able to do things faster and more easily. Star performers may not know everything. However, they are people who know where to go for the cooperation, support and expertise they need to do their jobs. Furthermore, they are able to recognize the places where their own knowledge and expertise can contribute to team results.

2. Perspective
Getting the big picture and knowing how you fit into the organization is essential for a star performer like you. Having such a perspective allows you to see a project or a problem in a larger context and through the eyes of the other stakeholders.

By putting yourself in other peoples' shoes, you are able to evaluate the relative importance of various viewpoints. Thus, by being a star performer with a perspective, it gives you an edge by allowing you to pre-empt what other stakeholders will require. This minimizes your effort in doing a task repeatedly and reflects positively on you for having taken the initiative.

3. Self-management
To become your best self - a star, a great leader, a fulfilled worker - you need to know yourself and your goals very well. Take some time to think through what you really desire in life.

No one else but yourself is responsible for your career development. If you feel that you require certain courses to improve your expertise and be better able to handle your work scope, highlight this to your Human Resource department. The onus is on you to convince them of the benefits this will bring to them as you are more equipped to handle the job.

By planning ahead and knowing what is required of you and your job, you are able to minimize your effort in redoing things. Do practice to perform a task so well that you would only have to do it once.

"There is no better time than now." - Start being a Star Performer TodayStar performance on a work-place team follows the same principles as star performance on an athletic team. A talented quarterback on a football team will get nowhere without knowing who is good at running for short yardage, who is good at receiving a long pass, and who is good at the sweeping end run. He also needs to know who will protect him against a rushing offense.

The traits that make stars different from everyone else are the strategies they use to do their own work and to work well with other people. By learning what others have done right, the effort that is required of you is also now minimized.

I hope this article has done what it set out to do- to awake the star potential within you, with minimal effort required. Note that this is also applicable to entrepreneurs as you can excel in your own business too! If you like what you have read, my blog is your portal to greater success as I have elaborated them in greater detail.

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Shift Happens - Six Tips to Ease the Angst of Change

2008-05-14T13:55:00.000-07:00

"After the age of 21," renowned life coach Martha Beck once said at a seminar I attended, "people do everything they can to avoid change." We all laughed sheepishly, acknowledging that as long as you're alive, change -- whether incremental or momentous -- is pretty much unavoidable.

Back in the '60s, psychologists Thomas Holmes and Richard Rahe conducted extensive surveys, collecting data to develop the Social Readjustment Rating Scale, which listed the 20 most stressful changes we experience in our lives. These included obvious suspects such as illness, death and divorce, as well as marriage and significant personal achievement.

Fifty years ago, it was estimated that most people would experience ten to twenty of these major life events, but with the combination of longer life spans and change-spurring technology, it's safe to say that we may experience more of them and more often. (The U.S. Department of Labor estimates that today's students will have 10-14 jobs by the age of 38.)

Though we don't have control over the events that happen, we do have power over how we perceive and respond to change. It's helpful to remember that, in the majority of cases, it's not the factual occurrence of events themselves that affect us -- we're rarely dealing with an immediate crisis such as our pants being on fire -- but our response. If a friend is ill, you don't react until you become aware of the fact, which means then that your response is a choice.

Obviously, "choosing" your response is easier said than done. So here are a few tips from my own personal cheat sheet on how to not only deal with, but thrive on, change:

1. CHANGE IS NOT INHERENTLY GOOD OR BAD. Getting fired is not necessarily "bad" if you've been miserable at your job; being promoted is not necessarily "good" if it means added stress and longer hours. If you and your family are moving to a different city, your spouse's response will likely differ from that of your teenage daughter and again from your grade-school son -- same event, different reactions depending on each person's perception of what the change means.

2. EVEN A DESIRED CHANGE IS NOT ALL ROSES AND SUNSHINE. Change curves, originally developed by Elizabeth Kubler-Ross to explain the grieving process, can also be used to map out the reaction to a positive change.

Take the example of having a planned first child. No matter how thrilled you are, it is common after the initial euphoric honeymoon phase to experience doubt and lack of confidence in your readiness for such a momentous change and "grieve" for the loss of your previous lifestyle. Instead of wondering: "What's wrong with me -- this is something I wanted!" be reassured that it's perfectly normal to go through a stage of denial, confusion and even depression before regaining confidence to explore and accept the new situation.

3. RESISTANCE IS NATURAL. Recently, during a group coaching for corporate employees on change management, we did an exercise in pairs where both people held one arm out in front of them. When one person pushed his hand against the other's, the other person, without prompting, pushed back. The point? Resistance is simply a natural initial reflex and doesn't necessarily reflect that someone is against change.

4. THE RESISTANCE IS IN THE TRANSITION. So you've moved to a different city or changed companies. It's helpful to realize that it's not so much the "new way" of doing things that you're resisting but the transition period between giving up the old routine and getting accustomed to the new. And, in fact, the current routine that you're now attached to was at one time the "new way" you were resisting.

5. THE SUFFERING IS IN THE RESISTANCE. The corollary to "resistance is natural," however, is that the more you resist, the more painful it is -- as if you are fighting the current of an ocean, struggling to dive to the bottom when the waves are rising up. Instead, why not learn to gracefully accept change that is inevitable, going up and down in tandem with the water.

6. CHANGE ISN'T ALWAYS VISIBLE. For those frustrating times when you feel stuck, in stasis, and change isn't happening fast enough, remember that it is happening even if you can't see it. Take a look back over the last three or six months and make note of how much you've learned.

Continuous growth happens as you adapt to change. As Charles Darwin says: "It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change."

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Management Skills - The Being and Doing of Change Management

2008-05-14T13:14:00.000-07:00

One of the most valuable skills managers and supervisors can possess is the ability to help guide their employees through the changes in their unit, department or organization. Since change is a constant in growing, evolving organizations, making the change process a little easier will help ensure that employees get "on board" and more productive sooner.

What Good Managers Can DO to Make Change Easier

Plan

Whether for a small change in your unit or a huge system-wide change, careful planning, piloting and testing are key. Don't roll it out till you are ready.

Communicate,

Make the best case for change; let people know what's coming; set up rumor control systems; keep your door open; invite questions.

Train

Train people on new processes, equipment, and software. Give them what they need to succeed. Run parallel systems for a while if possible.

Measure

Check to see what's working, what isn't. Measure results when possible. Report to staff members often.

How Good Managers Can BE to Make Change Easier

Empathize

Be compassionate; change is hard. Have patience. Be enthusiastic. Take care of your own stress.

Listen

Listen, listen, listen. Walk around, ask questions, check things out. Coach and train on the spot. Help where you can, but mostly listen and respond respectfully.

Balance

Strive for a balance between servant and leader. Be inspiring about the final outcome, realistic about the current situation. Get help from above when it is needed.

Be Credible

Maintain your own credibility by remaining in charge, future focused, positive, honest, and ethical.

Resistance to change on the part of your staff may not mean they are opposed to the new project or change, They may have an enduring attraction to the present way of doing things! A manager or supervisor's job is to assist in creating an attraction to a new way of doing things.

Understanding that resistance, skepticism, defensiveness, inaction or cynicism in response to change may just be the tip of the employee's iceberg. Beneath the surface can lay anxiety, fear, feeling incompetent, confusion, frustration, sadness, helplessness, anger or even cautious optimism. Although it may feel like these emotions are directed at you, they are not about you. It's about their response to change.

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Implementing Change - Getting Engagement

2008-05-14T12:36:00.000-07:00

Strategy development is a challenging and therefore, stimulating exercise. People who are involved get an appreciation of the organisation's business that few people, including the CEO, have.

Executing strategy which involves major change is not only challenging and stimulating but also frustrating. People involved in driving the execution of a change strategy get an appreciation of people's limitations and their negative personality traits.

Change strategy execution requires full engagement of the people affected. Leaders who are responsible for executing the change strategy often fail to get that engagement. People who are not engaged and are impacted by the change driven by the strategy may react badly. Disengaged people who are necessary to drive or enable execution are unlikely to be involved enough.

Engagement is more than having respect for the people who developed the strategy. Engagement is more than having a good conversation about the strategy.

Engagement in the execution of a change strategy is the full involvement in the strategy from understanding through to implementation. Engagement has five stages:

UnderstandingBelief and acceptanceCaringPlanningImplementation

Each of these stages must be well executed to translate the strategy into the day-to-day activities of people.

Understanding

Understanding a change strategy is not being able to parrot a PowerPoint presentation bullet point by bullet point. It is being able to understand the context of the environment in which the strategy is developed. It is the ability to extrapolate and interpolate the actions necessary to maintain the strategy as the internal and external environments change.

People responsible for driving the execution of the strategy must communicate the strategy so that all people can understand it. This means using most of the following communication devices:

One-to one discussions with senior staff to help them "get it" within the context of their department.One-to-many presentations to help the widest group of people possible to begin to understand it.Newsletters to update people, using a combination of text and graphics to meet different communication preferences. Include interviews with people involved in, and impacted by, the change to progressively personalise the strategy.Posters using cartoons or photos in common areas. Change the posters frequently."Frequently asked questions" with honest answers available in printed form and on an intranet.A moderated discussion forum.A person or group of people to which questions can be sent by email for those people who are reticent to voice their queries personally.Test for understanding on a regular basis by using formal or informal focus groups.

Belief and acceptance

Senior leaders, in particular, must believe in and accept the strategy. The measure of their belief and acceptance is their actions, not their words.

Frank, inquiring discussions must be had with those leaders who do not display the behaviours expected. They must be informed of the expected behaviours. They must be asked what it is that is preventing them from behaving in the expected way.

The purpose of this discussion is to find out what it is that is preventing them from acting according to the agreed strategy. One may find they do not believe in the strategy. More often, one finds some miscommunicated misunderstandings which can be removed enabling the leader to be involved.

Caring

Leaders must care enough about the strategy to give precedence to the actions required to execute the strategy over existing activities. They must allocate resources to the execution of the strategy.

For a strategy to be executed there must be consequences for not executing. For the consequences which are fairly triggered there must be measures of progress in execution agreed by senior management. The consequences of not meeting the measures should be significant and known.

Planning

The preceding stages are about what is in people's minds. However, without planning, the most enthusiastic supporter of the strategy will be ineffective at executing the strategy.

Planning to implement a strategy requires some or all of the following activities:

Determination of the activities required for implementation.Estimation of the time and resource requirements for each activity.Determination of which activities can be completed in parallel and in sequence.Identification of the risk events that could reduce the effectiveness of implementation.Development of risk treatment plans to reduce the probability or impact of the risk events.Determination of budget and aggregated resource requirements.

Implementation

Leaders who meet the requirements of the previous stages of engagement are not truly engaged unless they follow all the way through to implementation. They must assemble the right balance of people with the necessary competencies to implement the strategy. There may need to be changes in personnel to ensure the right competencies are available.

Implementation needs to be monitored for progress and the risk events identified in planning. Leader's need to measure and report against progress and provide early warning signs for previously identified risk events occurring.

Strategies involving major change are high risk and high reward. Leaders involved in the change must be fully engaged to reduce the risk of failure.

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Executive Coaching & Change Management - Why You Should Use An Executive Coach To Help With Change

2008-05-12T08:22:00.000-07:00

Why should use an experienced consultant to help with change?

"If you think you are in control, you aren't going fast enough" Mario Andretti

The one thing a business craves is stability and the one thing it gets is change as the sign on Ted Turners desk says,

"either contribute or get out of the way"

So it feels right to many Business Drivers to create change, to shake things up or at the very least to enable change that facilitates results. Can't really argue with that.

20 years ago 'stability' was the by-word of the shareholder and the markets, as without stability you are playing games with someone else's pension fund, back then markets were closed or undeveloped, which meant you either refined you organization or grew it......simple, safe and satisfying.

But hey times they are a changing. Not at the rate the doom mongers would have us believe but subtlety, slowly. Consider petrol used to be under a pound and then it switched from gallons to litres, it's now nearly £5 and you are used to it. They changed the pound note to a pound coin and you spend it that much easier, because you are not breaking into a note and you are used to it. They leak the fact that a tax will be £100, then when it comes out its £50, but that's so much less than you'd got used to it being, it feels like a sale even though originally you'd have been annoyed at £20 and you are used to it.

"Successful companies develop a culture that just keeps moving all the time" Rosabeth Moss Kanter. Harvard Business School professor.1999

Typically the following is startlingly true:

70 % of Executive Interventions fail

70% of Mergers fail

70% of Outsourcing Projects fail

70% of Business Process Re-engineering Projects fail

70% is the contribution of business leaders to organizational climate, with organizational climate contributing up to 25% in terms of overall business return (Hays Group)

The last bullet point presents most senior executives with an unfamiliar challenge as the focus of attention on devising the best strategic and tactical plans is the normal activity. But to succeed, they also must have an intimate understanding of the human side of change management - the alignment of the company's Culture, Values, People and Behaviors - to encourage the desired results.

Plans themselves do not capture value; value is realized only through the sustained, collective actions of the individual, the team, the unit, the department, the business, the staff, the employees, the workers........who are responsible for designing, executing, and living with the changed environment......FACT

Long-term structural transformation has four characteristics (The 4S Change Model - Copyright - Guy Bloom):

SIZE The change that affects all or most of the organization

SCOPE Involving the significant alterations of normal activities

SCALE How long it lasts

STRATEGIC VALUE The long term value to the business and its employees

Most executives are aware of the impact the workforce will have on a given intervention and at some point or other suffer some form of associated stress in regards to this point. The reality of what they are actually worrying about is sometimes uncertain...... the person, the team, the business, their emotions, their activity, their feelings, their outputs....it's complicated.

In my experience of Change and Integration Projects there are varying types of executive, managers and leaders in respect of the Human Element.

Those that care

Those that don't care

Those that care and show it

Those that care and don't show it

Those that care, try to show it, but fail to

Those that care, try to show it and succeed

Whilst coaching managers through acquisitions, integrations and at one time the largest IT Integration Project in the Insurance Industry, I have seen people in tears, having tantrums, walking out, aggressive and at the other end motivational and inspiring.

There are many senior executives that worry about the people element of their business, they understand at the very least at an intellectual level that it is the person that will endeavor and endure. When asked what keeps them up at night, managers and leaders involved in change, integration and transformation often say they are concerned about how their people will react, how they can get their team to work together, and how they will be able to lead their people.

They also worry about retaining their company's unique values and sense of identity and about creating a culture of commitment and performance.

Having worked in Start Up and Blue Chip businesses, I have been truly amazed at the variance in emotional awareness between managers, leaders and executives. To quote John Welwood:

"The most powerful agent of growth and transformation is something much more basic than any technique: a change of heart"

Understand this it is never, ever the product, the system or the process that is at fault....ever! If you think it is you are wrong, if you are being (or have been) told that this is the case......they are wrong!

Change projects live or die on one principle resource the Human Element. FACT!

But there is a way (a Tao) like driving a car, one can only offer a set of rules that through adaptability serve as guiding principles for getting you to your destination safely.

The reason you use an executive coach is for the experience of driving in many different conditions and the pain this can remove from the pain someone else has either witnessed or experienced previously.

Implement Business Change - Leverage Your Efforts to Deliver Practical Impact

2008-05-11T21:52:00.000-07:00

"Give me a place to stand," said Aristotle, "and I will move the world." His subject was levers, and how they enable people to move massive objects by applying force in the right way. It is possible to apply this same idea of leverage to any business change project, regardless of whether you are introducing new technology, training people in new skills, or implementing a new corporate strategy. Once you embark on a change, you can very quickly be overwhelmed by the range of things you need to do. It's easy to deliver many, many things, believe you are making progress - but find at the end that you have made little difference and very little has changed.

So what can you do to direct your effort, increase your impact and know that you are making a genuine difference?

First, be clear about the end-game of your change -- do not be distracted by intermediate milestones or quick wins. If, for example, your goal is to cut customer complaint handling time by 50%, then delivering a change education program for customer service agents may not be the thing to get you there -- and in fact, may serve only to distract you and your people from your end goal.

Second, identify the one, two or (at most) three things that most affect the end goal. For example, the single biggest factor affecting speed of complaint handling may be that your spares policy has a built-in 3-day lead time, so you choose this factor to address first. Having chosen it, subject it to the same thinking again, so that you can determine which two or three elements affect it. In our example, you might find that because the spares policy applies to all parts, it has undue impact on the smaller, high volume parts that affect most customers.

Now review your current change plans and activities - if you are doing anything that is not essential to fix these factors, STOP IT RIGHT NOW. It is diverting effort to things that are less important.

Good. So now you know the primary places to which you need to pay attention, and you have freed yourselves from doing lower value activity. What next? The biggest risk here is that although you have selected a specific set of factors and their causes upon which to concentrate, it is very easy to be seduced by the desire to fix everything about them - and get lost again.

So how do you avoid being caught in the undergrowth of process and work flow details and variations that any any change project can uncover? A good way in is to find the points in the work flow where information becomes visible -- where information is displayed for others to see, or where a task is handed over to someone else. Work backwards from the end to identify the three or four of these "pivot points" where things have to be right for the work flow to deliver the business goal.

Set the standards -- the quality, if you like -- that need to apply at each of these pivot points to meet your goal. So, for example, when you look at your new spares process, you realize that any mistake in the specification of a spare will delay the process badly, so you create standards for the quality of the information used by the spares team, thus reducing the chance of such a mistake. Of course, there is more to making a change stick than simply setting and communicating standards, but that is a different issue. Where you set standards is where you apply your leverage.

Remember that the real trick to leverage is to find the highest impact issues - and to identify the transition points in the work flow that make the biggest difference. So as you look at the change projects in your organization, ask yourself -- do I know where I can get the best leverage, where I can really make a difference?

An Intuitive Leap - From the "Tea Room" to the Boardroom

2008-05-11T06:21:00.000-07:00

Intuition-a faculty most of us value, many of us have developed, and some of us work with professionally. Especially for those of us who work as professional intuitives or use it in our healing work, intuition's value to us is so great that it's woven into the daily fabric of our lives so seamlessly that we don't even consciously notice at times that we're using it.

We've learned that intuition has many benefits over and above the guidance it can give us when we're looking for insight. It can strengthen our inner voice and thus our confidence. It can help us "read" and understand others, so that our relationships can improve measurably and any conflict be minimized. It can help us to perceive more clearly and objectively. It can give us insight for future directions.

It's ironic that, with all its far-reaching benefits and as much as we revere our inner voice, intuition continues to be relatively hidden from the view of most people and even ostracized. Indeed many of us are tentative in mentioning it at times and may be comfortable discussing it only with those people we consider to be like-minded. The same could be said, of course, for energy work and other forms of alternative and complementary healing.

Why is this?

For many years, metaphysical and new thought ideas have been marginalized, even regarded as fringe-to the extent that there's a separation, even a perceptible antipathy, between "new agers" (or those into alternative spirituality and modalities) and the mainstream. One of the major reasons for this estrangement lies in the (so-called) "unproven" nature of many of the modalities we embrace. Another reason lies, quite simply, in the fact that they're not traditional, and many people primarily embrace that which is traditional.

And yet, just as intuition can have powerful benefits on the personal level, so too can it give us positive effects in other areas of our lives. As a professional intuitive, I know that intuition can have many practical benefits that can be applied to pragmatic areas, such as business. And I'm not talking about intuitives giving business advice (even though I've looked at business-related issues for many clients). I'm talking about teaching intuition and intuitive skills to management and business personnel.

What many of us are beginning to realize is that developing and mastering intuition is just the tip of the iceberg insofar as its positive effects are concerned. What developing and using this faculty does is help to develop more of our consciousness potential-and our potential intelligence-especially when combined with good left-brain skills. Since the Age of Reason and ascendance of science, we have embraced-and our academic institutions have emphasized-primarily our left-brain aptitude and skills-logic, analysis, deductive reasoning, etc. The "softer" right-brain skills, such as creativity, intuitive knowing, holistic perspectives, self-expression, vision, among others, gradually came to be regarded as somewhat inferior or, at the least, less important. Interestingly, this shift gradually led to "hemisphere wars," as some people picked sides and pledged their allegiance to only one hemisphere and its functions, to the detriment of the other.

What we're now starting to see, thankfully, is a more holistic stance toward our mental faculties and a new emphasis on development of potential. Indeed businesses are starting to embrace creativity (a real necessity for innovation). For this reason, I sense more and more an impending "mainstreaming" of intuition, including in the corporate world.

Intuition is, after all, a mental faculty. As much as many of us incorporate the spiritual into the intuitive and see it as indispensable to intuition (and indeed there are so many resonances between the two), intuition can be developed as a purely mental faculty. And it needn't be off-putting. Certainly one major type of intuition, in which we pull information from our subconscious into conscious awareness, fits easily into our "normal" human consciousness and isn't "supernatural." And this type of intuition, in which we access information we had but didn't know that we had, can be taught and should certainly not be intimidating.

Even the more extra-sensory nature of intuitive information that may seem to spring from nowhere needn't be a hindrance. There are theories that can explain how such seemingly supernatural phenomena can exist, and there are methods to teach its employ.

When I've taught corporate seminars on intuition and creativity, I have experienced a receptiveness that is encouraging. All that's required is rational explanations and definitions and an applicability to business needs. Businesses can indeed benefit from its usage, in areas such as morale, teamwork, productivity, planning, marketing, R & D, etc.

I increasingly feel that we're at a point in our societal development where new thought faculties and modalities may be more widely embraced and used. Certainly yoga and meditation have evolved since the 60s from far-out "weird" practices to accepted modalities that are known to have health benefits. The same will be true of intuition and other modalities.

It's time for intuition and other modalities to make that intuitive leap and share their potential rewards in more traditional arenas.

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Change Without Resistance

2008-05-05T11:20:00.000-07:00

Seeing change as a problem In a previous article, I examined why problem solving, which is our conventional approach to change, is instrumental in creating resistance and slowing or neutralising attempts to create change.

Briefly, the reasons are as follows:

The focus of problem solving is usually on the 'gap', and the present problem/s and rarely is enough emphasis placed upon creating shared clarity about the destination.

The emphasis on deficiencies tends to have a disempowering effect - 'I can see that's the problem but I'm not sure I can change'.

This in turn creates defensiveness - 'Why should I change?' because it becomes easier to knock down the change than to admit we can't.

In turn, this defensiveness and reluctance, coupled with a human dislike of being confronted with our shortcomings, fractures the relationships and depletes the trust necessary for people to make changes.

A different starting point Every person or organisation has inherent creativity, capability, imagination and success. If we begin from this perspective then a new approach to change is possible.

Appreciative Inquiry (AI) is an approach to change that begins with the assumption that, for whatever the issue, there will always be examples for an individual or organisation of success. They may be fleeting or infrequent or incomplete but they will always exist.

Too often these successes are dismissed as being a distraction to the problem or too insignificant to matter. But, surely, it is worth finding out how these successes occurred - not because we want to revel in the knowledge that everything is OK but because if we really understood how these occurrences came about we might be much better equipped to create more of them.

The Appreciative Inquiry way Appreciative Inquiry begins by asking exactly these questions. It also begins, critically, by asking them of the individuals who will ultimately be asked to change.

AI begins with establishing the change which is aspired. What does the individual or organisation want more of? This then becomes the focus of research, and questions are developed to look deeply into where such behavior or outcomes already exist.

These questions are positively framed and individuals involved in the change are interviewed to explore the best examples of the chosen aspiration. The emphasis is on real stories and actual events as these are not only primary data but they tend also to be easier to collect and communicate.

The stories are then shared and discussed to establish what they all have in common. It is also useful to examine where they differ as this can uncover alternative and complementary strategies to success. The conclusions are then drawn together into a compelling and memorable vision of what success would look like and feel like.

The next stage is to create a set of statements for what will be necessary to create the desired future. These will be based in the vision but will be both provocative and practical and will provide guidance for action planning - both now and ongoing.

Using the vision and guidelines, action steps are created for who will do what and when - both immediately and into the future.

Why does it work? Most people, when they hear this approach, say that it sounds very logical but struggle to see why it is so much more effective.

AI is based on a vast body of research into human behavior in the fields of psychology, anthropology, sociology and other social sciences. It also shares its scientific underpinnings with other leading edge approaches to change like Neuro Linguistic Programming and Coaching. There are many reasons, therefore, why AI works but without going too deeply into the theory, some of the key ones are:

We get more of what we focus on. If we ask questions about our problems the issues will take up more of our attention and become more significant. If we inquire deeply and persistently into what we want we will find, inevitably, that we create the future that we are learning about.

Successful change needs to engage with what really matters to each individual. The interviews connect each individual with what really matters to them and thus help create a personally compelling reason to change.

Change is a social phenomenon. Relationships, support and co-operation are required for almost any change. AI fosters and grows these by creating energising, positive and transformative interactions between those involved.

Human beings move towards positive images of the future and the creation of a compelling, sensory rich picture of the destination is vital.

Change takes courage. People have more energy and confidence moving into the future (unknown) when they take forward parts of the present (known).

Change requires action. Positive practical steps, by as many people as possible, are essential to make progress and achieve results It's a great theory, but does it actually work? AI is proven in applications across the world. From major organizational change at NASA and British Airways to Imagine Chicago where over a million people have been engaged in the process. From coaching to creating self sufficiency in food in villages in the developing world AI has proven incredibly powerful.

I believe that there are two particularly interesting things about AI. The first is that, in a world where some estimates say that 75% of all organisational change efforts fail, I have yet to come across a story about where AI has not worked.

The second is that AI is the only approach to change I know which is generative - which is to say that the scale of the change increases as you go further from the point of initiation in both space and time. Most change efforts work like a rock thrown into a pond - big ripples at first which gradually diminish to nothing. Because of the energy it creates in people AI goes on working long after and far away from where the change started - and that has to be worth having!

How could you use it?

AI can be applied from 1:1 coaching interactions to organizational change involving thousands of people. It can help individual change, the creation of powerful teams, in conflict resolution, cultural change, mergers, redundancies - any form of change in fact. It can transform workshop or training design for a short session of a few hours to much longer term projects.

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For Quality Conquor the "Vital Few" Versus the "Trivial Many"

2008-05-05T10:52:00.000-07:00

I don't make a habit of reading obituaries but there was a memorial published recently about Joseph M. Juran. I knew the name in a hazy way so, curious, I read about him and learned about an inventive innovator. Juran, along with Edward Deming, revolutionized the way businesses are managed. Both worked in Japan after World War II and were major influences on that resurgent economy. Both preached the mantra of improving quality - Deming in statistical methods, Juran on management methods.

Mr. Juran argued that producing higher quality goods might seem costly initially, yet the lowered costs for fewer repairs and chargebacks would result in a market advantage from the reputation for quality; a strategy that would pay off handsomely. Juran's take on the 80 / 20 principle stated that 80% of a company's problems came from 20% of the causes. If management would concentrate on the "vital few" rather than the "trivial many" it could improve its products and processes gaining both market share and efficiency.

He formulated a theory of quality-control management, the Juran Trilogy. It focused on planning, control, and improvement to create a management led culture of continuous quality improvement. I wish more company managers subscribed to Juarn's theory. It would solve many of their problems and allow them more time, energy, and capital to devote to creating new, better products and services while serving more customers.

It is evident when dealing with companies that adhere to Juran's theories (even if they had never heard of him) that they are constantly evolving to produce better products and services to continuousy satisfy their customers better and constantly working to improve every aspect of their business. They are working on the "vital few."

Yet 80% of companies are working on the "trivial many." Their strategies are often whims focused on the idea of the moment, vague clich?and fads consisting of expedient short-term "fixes" instead of long-term improvements. They move in an endless cycle from "fix" to "fix" while companies that are able to work on the long-term move in a far more forward-focused, quality direction.

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Collecting the Facts for Preparing Process Maps

2008-05-05T10:20:00.000-07:00

Fact gathering is an integral part of understanding reality and preparing a good process map. Yet, it is often dismissed or given cursory attention as superficial process maps are created by an individual or group of people some distance away from the work...and thereby some distance away from reality. If you want your process maps to reflect reality, you must go to the work and see it happen.

Who do we interview? Interview experienced employees. If you want to find out how a job is done, ask someone who knows how to do it. Pretty simple advice, right? Yet it is amazing how often process maps, procedures, even custom software applications are developed some distance from reality - away from the people who actually do the work.

If you want to know how a job is done, look for the person or people who really know how to do it. You don't want someone who has to guess their way through the process. New hires, people who did the job years ago, people in adjacent departments, these are wrong people and this is not a criticism of their personal experience. They simply are not the best source of the experience that we are seeking. You want someone who knows the work! Find the person that the other employees go to when they are stumped. This is the person that can show you the ropes. This is the person that can walk you through their part of the process and answer any questions you might have. This is the same person you will want to have on your analysis team.

In some cases, you may hear that no two people do the job the same way. There is nothing wrong with charting a few alternative methods. Just stick with the experienced people. You don't have to identify every alternative method for doing the same work. If you capture the methods of the "best" workers, you will have a good baseline to work with.

What are we looking for? Capture the Facts. The information that is used in our business processes and what is done with it is what we are trying to capture. That is the substance of a process. It doesn't float around in the air. It is either in people's heads or it is recorded on things - documents, forms, reports, email, files, records, etc. .... When information processes are mapped, it is those things (the media that are conveying the information) that are mapped. The interviewer focuses on the things that drive the process. The interviewer moves through the process from one workstation to the next, collecting copies of completed forms, source documents, screen prints, etc., that will help the team relate the process map to the actual items that flow through the process and will provide entry/field-level detail of the information that is recorded.

How do we do it? Be genuine. Successful fact gathering requires a blend of social and technical skills. From a social standpoint, an interviewer wants to show sincere respect for the knowledge of the people who do the work and does not want to appear threatening. Assume the role of fact finder - the people are the experts. Do what you can to help employees relax and be as comfortable as they can be with someone looking over their shoulder. Collect you notes with a pencil and paper (a recorder or computer device will be more threatening) and show the person your notes, explain what you are doing, reinforce what the executive said at the kickoff meeting and show them the respect due someone who has something that you would like to learn. Make sure that employees understand what you are doing and why they are involved. They are the experts. It has to be sincere.

Use mapping shorthand. The mapping symbols and conventions provide excellent shorthand for recording the data. Jot down a symbol and a few words to explain the activity and go on to the next step. If the task is repetitive, watch several iterations to validate your work and possibly capture variations and exceptions. Most importantly, get the facts from observation whenever possible - people can usually demonstrate the work faster than they can describe it and demonstration is much closer to reality than words.

Remember the Questioning Method - What, Who, Where & When. Stick to identifying WHAT happens at each step and avoid detail of HOW steps are performed. This saves an enormous amount of time.

Identify the person (WHO) you are interviewing and the work area location (WHERE). These won't change until you move on to the next work area. Be methodical - follow and list the steps in order (WHEN each occurs relative to the others). Identify the start point and end point for this piece of the process. (i.e. the process starts with an in basket full of orders after the first mail delivery around 8:30 each morning; Each order is entered into the System then set aside for filing.) Start with the activity that triggers the work (orders placed in the 'in' basket) then watch the employee process the work.

Ask the employee to SHOW you what they do...fill out the form, review the order, update the database, send the email, make the copy, print the report... whatever they do. Note WHAT is done at each step and get an estimate of the amount of time associated with each delay and any time-consuming steps (Identifying how long a step takes tells us WHEN we get to the next step).

Avoid getting into detail of HOW each step is performed -- answers to the other questions provide us with enough detail to provide proper focus on the step for analysis of the process.

Finally, don't ask WHY. WHY is evaluative and causes people to become defensive. It isn't necessary to know why at this point. Save WHY for analysis when it becomes the most important question.

A note on the level of detail to look for. A few guidelines can help you get a feel for how much detail to capture. When the symbol changes, capture it. When the source changes, capture it. The handling symbol occurs most often on most charts. There are usually handling operations before and after transports, before and after delays, and before and after sets of value-added symbols and inspections. Digging into the level of detail addresses the question HOW? If you focus on WHAT is happening and not on the details of HOW it is done, the data collection will be easier and quicker, and your chart will be easier to work with.

With the facts in hand, we can prepare a process map. Before we get to that, ponder this. If our goal is to create a new, better process, is it really important that we to talk to the employees to find out what we are doing now? This will be the focus of the next paper.

accounting payroll news

3 Keys to Collaboration

2008-05-03T14:22:00.000-07:00

Most managers in today's workplace understand the importance of collaboration, yet they struggle with the implementation. There are three concepts, which if properly understood, can help any manager shorten the collaboration curve.

1. Move from "transactional cooperation" to full collaboration.

Many employees believe they are collaborating, when in fact they are engaged in what I call transactional cooperation. They appear to collaborate, but in all actuality, they simply trade their cooperation with a colleague in exchange for cooperation on a future project. Have you ever had that pet dog that only comes when you are holding a piece of a hot dog? If you have, then you understand transactional cooperation. A company's leaders must create a culture where collaboration occurs, not because of what can be gained, but simply because it is the right thing.

2. Understand the principle of "Situational Collaboration".

Often in an effort to collaborate, we get stuck in the pleasing everyone game. Simply stated, there are times collaboration is appropriate, and there are times it stifles success. A leader needs to learn when collaboration is important, and when it is a road block which impedes success.

3. Discover new solutions for old problems.

Some people love change, other abhor it. Regardless of which side of this battle you have chosen, discovering new solutions for old problems can invigorate a workforce. How have you tried to hone operational processes? Have you tried changing these processes by utilizing feedback from those employees who are asked to implement them? When it comes to change, is it easy for employees to share their ideas with their managers? Create systems which are designed based on input from those who are responsible for implementation and watch the collaborative spirit soar.

One key to competing in today's rapidly morphing workplace is to create a work environment that moves beyond transactional cooperation and embraces the power of true collaboration.

fundraising

A Downsizing Survival Kit

2008-05-03T13:54:00.000-07:00

It's no secret that corporate downsizings are stressful. A recent study found that employees over fifty who lost their jobs involuntarily more than doubled their risk for heart attack or stroke. (Journal of the Royal Society of Medicine 7/2006) The outlook isn't any rosier for those who remain. According to a Finnish study, survivors of a major downsizing doubled their risk of heart attack, with the risk growing to five times normal after five years. (British Medical Journal 2/2004) Apparently, keeping one's job just to be overworked and under-staffed may be even more risky than getting a pink slip.

A downsizing threat triggers our biological flight or fight mechanism. "It's nothing personal," organizations try to assure their staff, "It's simply a business decision." But a business decision to terminate employment impacts employees in very personal ways. It affects family, financial security and, perhaps most importantly, personal identity. When we feel like we're losing control, our stress level shoots through the roof. During a downsizing, decisions about our careers are being made without our input. Reclaiming control seems all but impossible, but reclaiming control is exactly what we must do to protect our health and our careers. Understanding what we can control helps reduce the stress and allows us to put our lives and dreams back on track.

Asset Inventory

The first thing that a business professional should do when a layoff looms is to conduct a quick but thorough inventory of assets. Like a business, an individual has a portfolio of financial and intellectual assets that requires regular maintenance. It's these assets that provide the bridge from the here and now to the next professional situation. What new skills might increase value immediately? What areas of expertise need to be refreshed? What degrees or certifications would build overall value? What adjustments can be made to improve financial health?

Intelligence Analysis

Rumors run rampant during a downsizing. An Australian study conducted on the rumors that circulated in a hospital during a major layoff identified them as a coping mechanism that allowed people to express their deepest, darkest fears. (Eastern Academy of Management 10/2006) In other words, rumors are more accurate expressions of fear than facts. Developing a good intelligence system that can separate fact from fiction is critical. The best way to vet an intelligence source is to verify information through a variety of avenues. Developing good information sources provides useful communication that works both internally, regarding the organization, as well as externally, regarding job market opportunities and allows a business professional to exercise good strategic decisions instead of knee-jerk reactions.

Support Coalition

All professional transitions require a broad network of support to be successful. This is true whether the transition is a job search, a promotion or a new entrepreneurial adventure. It's never too early to start building a business coalition. In fact, the last thing a business professional wants to do is to touch base with a key contact only when they need something. Building a business coalition involves regularly supporting the agenda of others. Some believe that business coalitions are built on country club golf courses or in smoky back rooms. That might be true, but coalitions are not built with golf balls and cigars. Coalitions are built by understanding and supporting the agendas of associates. This can be done in lunchrooms, at water coolers, in the hallways and at the PTA potluck. Never miss an opportunity to contribute to the success of a co-worker, subordinate, boss or neighbor. The career you save may be your own.

Career Focus

Are you doing what you love or would you rather be doing something else? For all the fear, discomfort and angst that accompanies a layoff, it has been my experience that an unexpected termination is often the spark that ignites a stalled career. Change is coming so why not use its momentum to move out of your rut? Focus on what you really want. What would it take to live your dreams? Start putting your plan together. As I often tell my clients, "If you can tell me what you want I can show you how to get there." If you were living your dream before the layoff, chances are very good that you will be living that dream at another location fairly soon. If you were never that satisfied with your job, now is the perfect time to put together a solid plan for achieving your dreams.

The best survival tactic for a layoff is recognizing that it's your life and you are ultimately the one in control. Although it is tempting to turn your career over to an employer and hope that hard work and dedication will pay off, the current riff of mergers, acquisitions, layoffs and downsizings would seem to indicate that that course of action is just too risky for both your career and your health. Decide what you want, inventory your assets, gather the intelligence you need to make good strategic decisions and build a thriving business coalition to support your dreams. You are the one in control of your own professional journey.

customer services

Implement Enterprise Risk Management

2008-05-03T13:27:00.000-07:00

Organizations have long practiced various parts of what has come to be called enterprise risk management. Identifying and prioritizing risks, either with foresight or following a disaster, has long been a standard management activity. Treating risk by transfer, though insurance or other financial products, has also been common practice, as has contingency planning and crisis management.

What has changed, beginning very near the close of the last century, is treating the vast variety of risks in a holistic manner, and elevating risk management to a senior management responsibility. Although practices have not progressed uniformly though different industries and different organizations, the general evolution toward ERM can be characterized by a number of driving forces.

What is Risk Management?

Risk management is simply a practice of systematically selecting cost effective approaches for minimizing the effect of threat realization to the organization. All risks can never be fully avoided or mitigated simply because of financial and practical limitations. Therefore all organizations have to accept some level of residual risks.

Whereas risk management tends to be pre-emptive, business continuity planning (BCP) was invented to deal with the consequences of realized residual risks. The necessity to have BCP in place arises because even very unlikely events will occur if given enough time. Risk management and BCP are often mistakenly seen as rivals or overlapping practices. In fact these processes are so tightly tied together that such separation seems artificial. For example, the risk management process creates important inputs for the BCP (assets, impact assessments, cost estimates etc). Risk management also proposes applicable controls for the observed risks. Therefore, risk management covers several areas that are vital for the BCP process. However, the BCP process goes beyond risk management's pre-emptive approach and moves on from the assumption that the disaster will realize at some point.

Financial risk management is the practice of creating value in a firm by using financial instruments to manage exposure to risk. Similar to general risk management, financial risk management requires identifying the sources of risk, measuring risk, and plans to address them. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk.

In the banking sector worldwide, Basel Accord are generally adopted by internationally active banks to tracking, reporting and exposing operational, credit and market risks.

Currently working for Compass Bank, a smaller regional bank, the same general risk is still apparent. From deposit fraud including check kiting, Insider Trading fraud, Internet Banking concerns, and robbery. Compass Bank must insure to continually track, monitor, rethink or revamp, and implement.

Finance theory (i.e. financial economics) prescribes that a firm should take on a project when it increases shareholder value. Finance theory also shows that firm managers cannot create value for shareholders, also called its investors, by taking on project that shareholders could do for themselves at the same cost. When applied to financial risk management, this implies that firm managers should not hedge risks that investors can hedge for themselves at the same cost. This notion is captured by the hedging irrelevance proposition: In a perfect market, the firm cannot create value by hedging a risk when the price of bearing that risk within the firm is the same as the price of bearing it outside of the firm. In practice, financial markets are not likely to be perfect markets. This suggests that firm managers likely have many opportunities to create value for shareholders using financial risk management. The trick is to determine which risks are cheaper for the firm to manage than the shareholders. A general rule of thumb, however, is that market risks that result in unique risks for the firm are the best candidates for financial risk management.

Why the Change?

The Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; July 30, 2002) is a United States federal law passed in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Peregrine Systems and WorldCom (recently MCI and currently now part of Verizon Businesses). These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D-Md.) and Representative Michael G. Oxley (R-Oh.), the Act was approved by the House by a vote of 423-3 and by the Senate 99-0. The legislation is wide ranging and establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. The Act contains 11 titles, or sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law. Some believe the legislation was necessary and useful, others believe it does more economic damage than it prevents, and yet others observe how essentially modest the Act is compared to the heavy rhetoric accompanying it.

The first and most important part of the Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, which is charged with overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. The Act also covers issues such as auditor independence, corporate governance and enhanced financial disclosure. It is considered by some as one of the most significant changes to United States securities laws since the New Deal in the 1930s.

The Sarbanes-Oxley Act's major provisions include the following:

Creation of the Public Company Accounting Oversight Board (PCAOB)

A requirement that public companies evaluate and disclose the effectiveness of their internal controls as they relate to financial reporting, and that independent auditors for such companies "attest" (i.e., agree, or qualify) to such disclosure

Certification of financial reports by chief executive officers and chief financial officers

Auditor independence, including outright bans on certain types of work for audit clients and pre-certification by the company's Audit Committee of all other non-audit work

A requirement that companies listed on stock exchanges have fully independent audit committees that oversee the relationship between the company and its auditor

Ban on most personal loans to any executive officer or director

Accelerated reporting of insider trading

Prohibition on insider trades during pension fund blackout periods

Additional disclosure

Enhanced criminal and civil penalties for violations of securities law

Significantly longer maximum jail sentences and larger fines for corporate executives who knowingly and willfully misstate financial statements, although maximum sentences are largely irrelevant because judges generally follow the Federal Sentencing Guidelines in setting actual sentences

Employee protections allowing those corporate fraud whistleblowers who file complaints with OSHA within 90 days to win reinstatement, back pay and benefits, compensatory damages, and congressional page abatement orders, and reasonable attorney fees and costs.

But enacting a law with out a governing body to oversee the provisions and rules would be a waste of time and taxpayers dollars. The Sarbanes-Oxley Act was placed into law to help stop corruption and deception to protection the employees and citizen from scandal.

Governed by Whom

The committee of Sponsoring Organizations of the Treadway Commission (COSO) is a U.S. private-sector initiative, formed in 1985. Its major objective is to identify the factors that cause fraudulent financial reporting and to make recommendations to reduce its incidence. COSO has established a common definition of internal controls, standards, and criteria against which companies and organizations can assess their control systems.

COSO is sponsored and funded by 5 main professional accounting associations and institutes; American Institute of Certified Public Accountants (AICPA), American Accounting Association (AAA), Financial Executives Institute (FEI), The Institute of Internal Auditors (IIA) and The Institute of Management Accountants (IMA). COSO has setup some internal controls. The controls are as follows.

Internal control is a process. It is a means to an end, not an end in itself.

Internal control is affected by people. It's not merely policy manuals and forms, but people at every level of an organization.

Internal control can be expected to provide only reasonable assurance, not absolute assurance, to an entity's management and board.

Internal control is geared to the achievement of objectives in one or more separate but overlapping categories.

Internal control consists of five interrelated components. These components provide an effective framework for describing and analyzing the internal control system implemented in an organization. The five components are the following:

Control environment: The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure. Control environment factors include the integrity, ethical values, management's operating style, delegation of authority systems, as well as the processes for managing and developing people in the organization.

Compass Bank tries to control the environment inside the company. We offer different foundations to help build an ethical place to work. We try to hire the "right" person for the position in hopes of aspiring the correct mindset. But hiring the right person is not always perfect. We have been tested by unethical decisions of our employees, which have placed the company in court, mitigation, or litigation.

Risk assessment: Every entity faces a variety of risks from external and internal sources that must be assessed. A precondition to risk assessment is establishment of objectives and thus risk assessment is the identification and analysis of relevant risks to achievement of assigned objectives. Risk assessment is a prerequisite for determining how the risks should be managed.

Internal and external risk is a constant threat to any bank including Compass Bank. Some of the internal and external risk is the Internet and providing instant, on-demand results for our customer opens the door to Internet threats and/or fraud. We assess the risk, evaluate, and put into place backup plans. We try to eliminate risk before it happens.

Control activities: Control activities are the policies and procedures that help ensure management directives are carried out. They help ensure that necessary actions are taken to address risks to achievement of the entity's objectives. Control activities occur throughout the organization, at all levels and in all functions. They include a range of activities as diverse as approvals, authorizations, verifications, reconciliations, reviews of operating performance, security of assets and segregation of duties.

Most companies provide a level of control activities. Compass Bank limits different control activities base on your position within the bank. At my level, a manger, I would have different authorities, like up to $5 million dollar transfer approvals, whereas a customer service representative would only have $100 thousand dollar transfer approvals abilities. Based on the position within Compass Bank, most activities are controlled based on risk involved. Information and communication: Information systems play a key role in internal control systems as they produce reports, including operational, financial and compliance-related information, that make it possible to run and control the business. In a broader sense, effective communication must ensure information flows down, across and up the organization. Effective communication should also be ensured with external parties, such as customers, suppliers, regulators and shareholders.

Information and communication is key to any success for a company. Compass Bank assess the information and determines how much of the information to communicate. If the assessment determines there is not a lot of risk, the information is not always shared. But if the information is needed at the lower level employees, like the recent TJX problem of hackers compromising credit card information, limited information is provided to help our customers.

Monitoring: Internal control systems need to be monitored--a process that assesses the quality of the system's performance over time. This is accomplished through ongoing monitoring activities or separate evaluations. Internal control deficiencies detected through these monitoring activities should be reported upstream and corrective actions should be taken to ensure continuous improvement of the system.

Compass Bank has internal monitoring of all activities. We are constantly audited to make sure we stay in compliance with all federal, state and local laws. One thing we do each year is to make sure all of our employees' go through compliance testing. The test involves the Bank Secrecy Act and the Anti-money Laundering Act. Each employee must pass both test with an 80% or better. We have other monitors setup but I am unable to elaborate on them.

In conclusion, it is reasonable to expect that the forces cited above will continue. Accordingly, risk management practices will become more and more sophisticated. As capabilities continue to improve, organizations will increasingly adopt better ERM controls because they can.

Enterprise risk management is a "big idea.' Among other things, ERM can be viewed as the broad conceptual framework that unifies the many varied parts of the actuarial discipline. ERM provides a logical structure to lin these subject area together in a compelling way to form an integrated whole. In so doing, ERM addresses critical business issues such as growth, return, consistency and value creation. It expresses risk not just as threat, but as opportunity - the fundament reason that business is conducted in a free enterprise system.

ethics news

Risk Management and Change - Using Those Special Pair of Glasses to See the Big Picture

2008-05-03T13:02:00.000-07:00

The more you review a risk plan and absorb it, the more risk you will mitigate. Now that you have reviewed your current plan, developed some type of spreadsheet or software for governance, and possess a reference to prior plans. Now that you have taken three months to take a good hard look at your business and now you will know what your additional risks are.

The second quarter is great time to either bring someone in or to have one of your staff research tax nexus issues.

So what is tax nexus?

Public Law 86 272, 15 U.S.C. 381 384, restricts a state from imposing a net income tax on income derived within its borders from interstate commerce if the only business activity of the company within the state consists of the solicitation of orders for sales of tangible personal property, which orders are to be sent outside the state for acceptance or rejection, and, if accepted, are filled by shipment or delivery from a point outside the state.

The term "net income tax" includes a franchise tax measured by net income. If any sales are made into a state which is precluded by P.L. 86 272 from taxing the income of the seller, such sales remain subject to throwback to the appropriate state which does have jurisdiction to impose its net income tax upon the income derived from those sales.

Tax nexus changes as tax laws in states change, 86-272 is not written in stone and therefore there are many states that have created laws that circumvent or are written to state that 86-272 is not applicable under certain circumstances. This creates tax and penalty risk. Legislatures have become creative with statutes and the failure to monitor this can be costly.

Some of these circumstances are:

You had a salesperson entering the state or in some instances cross state lines.

Third party performing warranty repairs in the state.

Third party installation or repair of a product.

As you can see your "nexus" is contingent on your current circumstances and business practices. Relevance to current business practices related to tax statutes must be reviewed at least yearly if not more often, this becomes forgotten in day to day operations and that is when penalties ensue. Laws change and states are constantly looking for creative ways to increase revenue. Take a look and mitigate compliance risks.

Let's take a close look at some of the other items to mitigate risk and continue the risk management and change process.

1.Perception. Take a good look at every employee that is part of your business and you probably have an idea of their strengths and weaknesses are don't you? Now, I am going to let you in on a little secret you don't. Want to know what I see when consulting. Try this!!

What happens is companies take a stereotypical view of employees. They Perceive! Most managers think employees that complain are problems, to be ignored or dealt with. Unfortunately, this is just the personality type you need to increase production, repair poor business practices or eliminate other risk related concerns in your business.

The complainers (something we avoid like the plague) are the real associates that can be the greatest factor of change in your business. Not all of them, but most of them. When consulting I hear complaints from employees all the time. They are not't heard, taken seriously, they are dismissed, but don't just dismiss them.

Take a different approach, try this, ask them why they are complaining, give them autonomy to open up and honestly tell you what is happening in their departments, listen take a subjective look.

Then, do some surveillance of your own. Take a look and see for yourself, we always perceive these associates as a nuisance; they are actually a force for change. I will bet that you will find these concerns, repair them and you will see their real worth and really do care. Stop the perception, start opening up, change the way you think before you competition gets the edge on you!

2. Dynamic, Your Dynamic is marked by continuous and productive activity or change. Now you need to take a look at the physical parts. Performance, Operations and Documentation. Yes, there are stories of those companies that did not build their infrastructure properly to handle an explosive growth then are struggling or have failed. Or took advantage of an opportunity and thus failed. I assure you there are far more stories of companies building cost structures for the future, for growth that never materializes. Surely there are companies that did not downsize because they consistently underestimated the potential size of the downturn. So now do you know how your business is growing? Honestly steady is better. Why? Because growth too fast means that the little things get overlooked hiring is to fast and lacks training and that's a reaction to growth not action toward growth. Are you able to currently handle the growth? Hampered by a poor credit market? These are items that can change your dynamic, your market power; please take a long hard look to keep it in balance.

This is also a great time to take a look at Internal Controls, Sarbanes-Oxley and take a look at opportunities for acquiring companies. Why, because if you feel after taking a look that all the other factors are in place now, you know in comfort you can perform all these at one time. Risk is also confidence; once you learn to accept change it becomes easier to mitigate change.

3. Stability, is a key look at your business vs. your competition, compared to how well you are performing and what are you performing well at. What new and differing metrics would you like to see, need to see? Measurement is key to stability; you can't see what you do not measure. Remember technology today is only good for six to nine months your product cycles are fading out faster and faster. Something new and better is bound to come along. Will it be from you or your competition? Are you ready if its you? Business performance management software may be the answer. Dashboards are another option and in some cases more so, management can retrieve real time data anywhere at any time right from the web instead of having to ask for the information. These are items help you monitor your stability, your market standing so you can maintain balance.

Above all remember time is of the essence, not being prepared for these situations costs hard payroll dollars. Heightened costs and reduces productivity. It may even put you on the road to Chapter 11; look at all the airlines in the past month.

Look also to eliminate some items to take on new ones, eliminate that one report, or find a new way to generate them, tailor a process to lessen time, or don't send that email, but make a change build a relationship ask questions in person this time, for the associate and yourself. All these items cost your organization productivity. How? It takes focus off the way that productivity and creativity can be improved, puts it on an unneeded task, that this time could be better used to prepare for future growth. Hope these ideas have sparked a new vigor in you one for change!

advertising blog news

How to Drive Business Success

2008-05-03T12:37:00.000-07:00

Times are difficult. Gasoline prices are up. Food and grain prices are up. Your ire is up and your business... down. It is so easy for the individual and the entrepreneur to decidedly give up. There are times when you feel all obstacles are in your path and the least resistance is stopping. It is understandable, yet an easy escape. There is too much recent talk of recession proofing the business and conducting business in tough times. These are simply titles and excuses for items that are required to operate a successful business.

A functional business is similar to a garden. The foundation for any garden is proper fertilization techniques that help nurture the soil and maintain its balance with its vegetation. Yet plantings will not grow without strong roots and soil. Similar to soil the best nurturing for your business is constant sales and customer care. The more sales and the higher the customer acquisition the easier to pay for people, property, equipment etc.

Other factors that assist in root development and nourishment for your soul and destiny relate to your attitude. Your holistic approach to your business is soil upon which your business grows. Similar to fertilizer your daily dosage must include the following:

Desire. For business to flourish you must abundantly desire success. Recall why you founded your business and what you hope to achieve. Your passion for assisting others is the fuel that bounds you from failure to fortune, fertilize your soul by returning to your desire so that you revitalize your soul. Another nutrient is repeating your mission statement and visualizing the success you desire to achieve.

Believe. There is no better nourishment then your faith. Faith is a component of both passion and love. Faith is your ability to disavow the norms and continue. Good roots fight inclement weather so must you! Thomas Edison did not believe he failed he had faith to succeed. If Henry Ford, and Andrew Carnegie did not have faith our American business system would not be the supreme power it is. And if Abraham Lincoln did not have faith, African Americans would not be free and his name would not be associated with America's greatest president. In fact, faith was so imperative for Lincoln because his successes did not arrive until after his 40th birthday. Your faith gets you through intense storms but you must see the sunshine well before others.

Achieve. The only manner for success is continuance. My mentor states do not seek perfection seek success. I wholeheartedly agree. There is no perfection. We all face daily obstacles. We are constantly challenged by the errors of our ways, yet the only way to achieve is to continue moving. Refrain from excuses and continue to achieve no matter what the conditions.

Nurture. Gardens require daily maintenance; food, water and vitamins. You too must invest in nutrition. Success is achieved through education. Learn from your mistakes. Failure is the best educational tool we recognize. Many do not believe failure is a nutrient, yet it is the best nutrient. Think like Edison and use your failures as a road map towards new attempts. Education is the one item that no business professional ever retorts. Education is the greatest fuel for business success. Use previous experiences as a nutrient for new ideas and new possible beginnings.

Succeed. I recall a young man that had limited athletic ability. He was reared in a dysfunctional home and loathed by family and friends. After much discovery he found an outlet in track and field. After years of searching he found a tool that displaced the discontent in his life. With much practice he got better and began to appreciate the sport. His success brought about future success. He visualized future success. Within months he became the captain of his team and a four-time school record holder. He also enrolled and graduated from a prominent university. You too can achieve success. You have to breathe it, become it and yearn for it. Success does not come easy. The Reverend Dr. Martin Luther King jr. stated, "Faith is taking the first step even when you don't see the whole staircase." Take the ladder of success one step at a time by seeing each step, living each step and appreciating each step.

Prosper. Admittedly, each day represents a new challenge and yet new opportunities. However, when your garden begins to show new growth, you stop in admiration. Take the time to reap what you sow. Learn to stop and smell the flowers and appreciate your success. Your ability to stop and reward yourself is prosperity. Yet also understand that prosperity is not only about money, it is your balance of both your personal and professional life.

Our worlds like gardens require constant attention. There is a need to eliminate weeds that shadow the beautiful flowers. Our gardens require comfort during inclement weather. And there is a need for daily nourishment to obtain strong roots for growth. The best gardens are attended. However, the most abundant gardens obtain daily nutrition, bountiful sunshine and love. Give foundation to your garden and watch your business become fruitful!

ethics news

Plan Workplace Changes

2008-05-03T12:06:00.000-07:00

Whether it's a company wide or department change, you still have to motivate your team to understand, participate and accept the required changes. In order to motivate your staff, you need to plan...plan...plan. What do you need to plan?

-Understand what needs to change. Describe in detail the issues and include your key staff as part of the process. It may be helpful to use a mind-mapping tool that can help you break out all the potential issues. Check out mind mapping software for a simple solution to mapping out a problem or a solution.

-What are the objectives of the change? Need to be specific here...create a list of outcomes or values you want to implement during the change. Whether you are changing a brand image or introducing a new product, you need to create a vision. Even if the change is small, include the objectives. This is what drives the change.

-Plot out the risks of not changing as well as changing. Risks are always part of business and to implement change the risks of not changing must be greater than changing.

-Design potential solutions that will correct the problem. It's important that the solution match the culture of the department or company. If it doesn't then you will have a two-tier change, which could potentially create more resistance to the change.

-Don't move forward until you fully understand what the change entails. The more steps in the new process or the greater the number of people involved in the change, the more complex the change will be. Use the mind-mapping tool to flush out all the different parts of the change.

-Include the individuals who will be impacted by the change. Allow them to be part of the process...either in uncovering all the different components of the problem or as part of the solution. It really depends on the people involved. If you have professionals on your staff, they may have strong analytical abilities and could add a lot to the planning process.

Note: Keep in mind that most employees will react...no matter what their position is within the organization. Sometimes managers fault by thinking that professionals are more mature in their reactions. They can be, but I've also seen individuals who were in management or professional roles react negatively to change. This happens when the employee feels they or their position is in jeopardy. So...don't make assumptions about people...instead do your research about your staff and create a plan that includes a whole range of potential reactions.

-Stress the benefits - include in your planning all the benefits the change will provide to the people and to the organization (department).

-Plan for training...as with any change, you do have to train individuals how to perform the new process. The more complex the change, the more extensive the training needs to be. Training is continuous until the change is fully implemented. As part of your planning, include different ways to present the information. Since employees absorb information in different ways...include in your training program reading materials, visual aids and interactive exercises to offer the information in different ways. If you have trainers on your staff, they can be instrumental in building the training plan. Otherwise, you can get outside support for this part of your planning.

-Your communication plan....this has to be a robust project plan. If you think that you have created enough communication message and different mediums of distribution...stop and add some more. Communication is critical to the success of any change.

The above points are provided to start you thinking. If your change is small, then this information is enough to guide you. If the change is big, you will need a professional to drive the project. Keep in mind that change occurs at the employee level, so consider not only the business objectives but also how to include your employees in your planning.

Franchising

Six Sigma - What's in a name?

2008-05-03T11:42:00.000-07:00

Six Sigma nowadays has come to not only mean six sigma but to also encompass all walks of lean - there are still Six Sigma purists out there who would disagree but the application of both Lean and Six Sigma in both the operational and transactional environments has given way to a new hybrid six sigma and a new hybrid six sigma professional.

It is possible to go a fair way with only one set of tools but why deny yourself the full arsenal of business change weaponry? With Lean one can only real achieve a defect level of 6 or 7 parts per million opportunities however by incorporating Six Sigma, further defects can be eliminated to a level closer to perfection (3.4 parts per million opportunities) the level known as Six Sigma. Having an umbrella term like Six Sigma also serves to bring the community together working on a common platform sharing ideas and best practices.

If you are looking to separate the wheat from the chaff and want the opportunity of working with the best quality and change professionals on the marketplace, start by talking to those with process improvement expertise and experience who understand the Lean Six Sigma marketplace, like an established Six Sigma consultancy or by sourcing consulting talent through an accomplished and established Six Sigma recruitment agency. A number of specialist recruitment agencies exist whose prime focus is on quality and change management and their recruitment efforts have helped staff some of the worlds most successful six sigma deployments saving corporations millions of dollars.

Franchising

What Are You Doing About Underperforming Staff In Your Business?

2008-05-03T11:12:00.000-07:00

Solutions to poor motivationand performance at work are widespread, and all organisations have people in them who are under performing. These people constitute a very serious challenge - in the first instance, to the effectiveness of management, and in the second to the survival of the organisation.

One underperforming person is a problem; several constitute a crisis; and a critical mass can produce that situation in which fire-fighting is so endemic that the real source of danger is no longer evident to the participants, as they face wave upon wave crashing upon them.

An under performing person - in varying degrees of severity - places a strain on the organisation by failing to achieve targets. But worse than this are the parallel costs which spiral upwards alongside the person's failure to achieve targets. Their failure puts more direct pressure on achievers and performers to compensate, which they are increasingly compelled to do.

This can eventually drain high achievers and lead to their underperformance as well. Think of it as a cancer in one part of the body - the rest of the body works harder, but some organs come under so much strain that they too fail.

Furthermore, somebody has to 'deal with' the underperformance - more time, money and resources taken away from direct productivity. Thus, one under performing person isn't simply a question of losing one salary's worth of production - it goes much deeper than that.

In fact, if allowed to continue, the under performing person can start replicating him or herself - again like cancer cells - within the organisation. Others see their behaviour, and think - 'I'm working my socks off, what for? ... when Sam over there is doing so little but getting paid what I am!'

The larger the organisation, the more likely there is to be a significant number of under performing people. This despite all the beliefs of management that because they employ the latest 'NLTQ Performance Review system' (with extra vitamin QA enhancements that proves everyone is on board and on target - and hey, bonus, there's an audit trail) they are immune from under performing people. This is usually a smug delusion or simple groupthink.

The key issue with the numbers is the Pareto Principle. Basically, if you accept that 20% of your customers produce 80% of your turnover - and having gone into hundreds of companies we have yet to find one where this is not the case - then you are duty bound to reflect on the corollary: 20% of your staff are producing 80% of your results. So... 80% are producing 20%!

This is a staggering notion. In fact, the truth of it - anecdotally - came home just the other day. A friend recently took over a business in Cardiff employing 40 people - it was barely breaking even. After analysing its methods and structure, the friend reduced staff to a core of 8 - and 8 turned the whole business into substantial profit.

As a side bar to the main thrust of this paper, the implications for Government should not be lost - we do not need more doctors, nurses, teachers etc - we need less - substantially less. The constant recruitment of under performing people into the system produces exactly the results we have outlined above: it is impossible for the NHS and schools to produce excellent results because they are always focused on dealing with the problems of incorporating their own burgeoning staff.

What are you going to do about under performing people?

careersemp loyment

The New Coach - What Can He Do? The Valencia Case

2008-05-03T10:47:00.000-07:00

The productivity profile of a coach didn't include a very important issue: change. A coach is a manager of a team and responsible for the performance of the team. When a team is under-performing for some period of time, like was the case with Valencia, than the (new) coach is not only a coach but also a change manager.

This requires additional competences of the coach.

In case of Valencia, Ronald Koeman was not able to change the performance of the team. So the question is, why not? He is a competent Coach, but was he aware of the risks of change-management?

In November 2007 he was warmly welcomed by the management of the club and by the supporters of Valencia. "According to his own words he would find a balance between a new approach focused on performance and entertainment of the supports.." (1 - Koeman already triumphing in Valencia)

But he made quite some changes to the team. One of his first actions was to replace three key players of Valencia. In doing that he showed leadership (although the rumor goes that he was asked to change thee players as part of his new assignment), but also took a risk of possible resistance with the team against his proposed change.

Another change was the alteration of the historical strategy of the club (4-4-2) to "his preference" 4-3-3. This was critisized by the team in public. A change that received and increased the resistance.

Valencia recently won the "Copa del Rey" the Spanish championship of leagues, but lost about twelve matches in the league and put the team nearly in state of degradation.

What really went wrong started probably by the decision to change the former coach (Quique Flores) by Koeman. The owner of the club Valencia (Soler) knew that Koeman was a supporter of - Total Football. At time of Koeman's start as the new coach Valencia was forth in the league and only four points behind Real Madrid. The Leader. But the supporters of the club didn't "like" the (defensive) style of team (2). Apparently in an impulsive moment the owner took the decision the change the coach.

What we can learn from this is that a new manager -- either in business or in football -- is not always able to change the style of the team by imposing his vision. Then, a change that is too dramatic will call resistance. In this case, if the rumor is true, there is another problem of authority. The team probably had sensed that the decision of Koeman to replace prominent players was not his own will, but that of higher management. And such a feeling will increase the resistance and diminish the authority of the coach.

But the most important lesson of change is that there must be a real problem in order to have people accept a change.

NOW, Valencia has indeed reached this situation. The new coach will have a lot easier job, because no player wants to exit the premier league. But when Koeman arrived the team was only fourth in the league. That is not what justifies just a mayor change.

For who is a supporter of Valencia should think twice of their supportive role in this process. Maybe in the future they should support a team better, rather than demanding a "nicer style."

(1) - http://www.sport.es/default.asp?idpublicacio_PK=44&idioma=CAS&idnoticia_PK=455440&idseccio_PK=805)

(2) - http://www.elpais.com/articulo/deportes/Valencia/le/vale/ahora/delegado/elpepudep/20080422elpepidep_2/Tes

Hans Bool

accounting blog news

If Only I Had Told Him Sooner!

2008-05-03T10:25:00.000-07:00

I met John by appointment in his office just before the Christmas holiday some years ago while I was still an Independent Financial advisor. The appointment had been made for me by my staff so I had no prior contact with him. The meeting was arranged on the basis that I would show him how to reduce his company tax by deflecting profits into his own account, in other words I was there to sell him a company pension scheme.

During my conversation I gathered a lot of information about his Age, health, any insurance protection he had and his business turnover etc.

In the course of my 30 plus years in the business I never failed to be surprised by the total lack of awareness by 90% of small to medium business owners of the personal financial risk they are building as they develop their businesses.

Typically they invest their blood sweat and tears and their capital for years, they take relatively small incomes and plough the profits back in to build up their asset base. As the business develops the Bank will gradually increase their company overdraft and often the owner will take on a Mortgage to build larger offices or work unit.

They truly believe the size of their holding in the company is their financial security. Some of them never live to find out how wrong this strategy is. If you study the statistics as I did, you will find that amongst the male population one out of six does not reach the age of thirty and another one will not make it to retirement (including businessmen) i.e.:- one out of three do not make it. John was the one. I did not know this, neither did John. At the meeting I showed him the risk he faced, all his asset was in his business. He like so many others had no life insurance.

I explained how he could get a lot of term protection in the cheapest way possible through a company pension scheme with full tax relief with the premiums paid by the company.

As the holiday was imminent he deferred the medical for such a large sum to the following week. I went to his office the following week and he wasn't there. One of his employees told me he had had a massive heart attack while playing squash 2 days before and had not survived.

The scenario that played out after this was a horror story that affected me deeply and impacted on the way I would insist on urgent action once a person had seen the need to follow my advice. As soon as the bank learned that John was no longer there to run the business, they put a stop on the Companies trading account, no more money was allowed to be paid out. Like all banks they moved to secure their money. They didn't want Johns' plant or stock or car, they wanted cash. John like most businessmen did not have a huge pile of cash in reserve for this emergency.

If they could not get cash they had to have a sale. Have you ever seen the result of a forced sale of a business property. I have seen many and it's never a pretty sight.

As I said I have been in hundreds of businesses and 9 out of 10 of the owners are at risk in the same way. If you know any tell them about John and make them get protection immediately.

Ask a successful businessman what is his most valuable asset is and he will probably say it is his business. Yet he is the business, he may have a few people around him in the business, but would it survive without him? As his investment in the business grows so to does his personal risk. It is a problem created by the increasing value of the company so he needs an increasing amount of asset protection on his life, which is so inexpensive when bought and paid for by the company.

ethics news

The Lana Turner Approach to Leading Change

2008-05-03T09:54:00.000-07:00

Lana Turner, the popular actress from the 1940s and 50s, has something to teach us about influence. The story goes, that at age sixteen, she was discovered drinking a Coke at a drugstore in Beverly Hills. She was whisked away to Hollywood (which was conveniently only two blocks away) and the rest, they say, is history.

Too many people think that if they just sit around looking beautiful - or thinking great thoughts, or toiling away in their cubicle - that the world will notice. I call it the Lana Turner Syndrome. Of course, dreams do come true just by sipping a Coke and looking beautiful. After all, it was only a mere 71 years ago that Lana Turner was discovered. So, take care of yourself and hang around for another 70 years and someone is bound to notice. I think too many of us (me included at times in my life) suffer from the Lana Turner Syndrome. In addition, it is an easy myth to buy into. In the United States, there is a belief that if you put your nose the grindstone, work hard, do your job, good things will follow. Of course, working hard and doing good work isn't a bad thing, but it just doesn't get you noticed very often.

So how does this relate to influencing others? When we want to get people's attention and get them to make a commitment to our ideas - a good idea alone isn't enough. People need to trust us. And in order to trust us, they need to know us. They need to know that we can deliver and that we are worthy of their trust. And they need to remember who we are. People are busy and they forget. I used to send out a one-page newsletter. Invariably, the phone would ring more often in the days that followed the delivery of that single sheet of paper.

My first job was teaching kids labeled as emotionally disturbed in public schools. Within a few months, I saw why these kids were acting in a disturbing fashion. It had less to do the young people themselves and far more to do with the way the school was run. As I looked around, I saw that the entire school system seem to suffer from this problem. If the school administrators and teachers would change a few fundamental things, all would be right with the world. So, I wrote a proposal for an alternative school that I would run. (Youth couple with arrogance can be a powerful intoxicant.)

I couldn't get anyone to listen to my so-called brilliant idea. With only a few months experience I lacked credibility. And worse, no one knew who I was. Even the leaders of my own school knew little about me.

Imagine a different scenario. Let's say that I had started volunteering to serve on committees. I would find ways to assist people in power. And imagine if I waited a couple of years until I had established a good track record as a teacher and perhaps tried out some of these ideas in my own classroom. Then I might have had a chance of getting my idea taken seriously. No guarantee that it would be accepted, but it certainly would have increased the odds in my favor.

I think Woody Allen's approach has a greater chance of succeeding than Lana Turner's. Allen said that 80 percent of success is showing up. I continue to be amazed at the offers I get to do work (or to influence people) simply because I show up.

The people I know who are most successful getting things accomplished in organizations live by Woody Allen's advice. They show up - not to look beautiful - but to roll-up-their-sleeves and work. They prove they can do the job and are worthy of our trust. Then when they have an idea, we are far more inclined to take them seriously. We give them the benefit of the doubt.

continuity disaster recovery

Change Management 101 - Blame the Employees

2008-04-30T23:43:00.000-07:00

It is common to blame employees, middle managers, or anyone else who has little power when a change fails. I call it Change Management 101 -- it's that common. The lesson of the hugely popular book, Who Moved My Cheese, was that those pesky mice needed to get with the program and change - or die. The book said nothing about the impact of the leader's behavior on how the change was being planned and implemented, nor did it allow that the change might actually be a bad idea.

The way people lead change has a significant impact on whether others will support or resist a new idea. Blaming the stuckees (to coin a term) misses the mark. We should focus on what the leaders do - and what they fail to do. Quite often, they lead change by fiat and minimal involvement. Their idea of involvement is a 2-hour mind-numbing PowerPoint presentation with 10 minutes of Q&A.

I found that people resist change for three reasons. In simplest terms: they don't get it. . . they don't like it. . .and/or they don't like you. Any of those can stop a change dead in its tracks. Most change strategies focus on making sure people get it - that they understand what's going to happen. These strategies are fine but they don't go far enough. They miss the emotional component -- does this change excite or terrify people? And they fail to acknowledge the impact of trust (or the lack of trust) can have on their ability to influence others. When trust is low, people tune out or look for reasons why this change is another example of bad leadership. When trust is high, people tend to give the leaders the benefit of the doubt and actually find ways to make the change a success.

I find it ironic that most leaders seem to know what to do. In workshops, I'll play a really bad leader as he introduces change. Not surprisingly, participants have no trouble identifying all the things that this character is doing wrong. However, what did surprise me was that they could also identify what my character could have done correctly. In fact, these leaders are so astute that their strategies address the I don't get it, the I don't like it, and the I don't like you issues before they become problems. In other words, they avoided resistance by building support first.

However, something happens once people (including you and me) get on the job. Pressure mounts. Deadlines loom. And we seem to give in to our own worst instincts. Too bad, since most of us know what to do. If we would only slow down enough to take a breath and ask ourselves, "What should I do in this situation?," we would probably identify actions that would move the change forward, instead of doing things that created resistance.

ethics news

Profile of a Company Change - ACOMO

2008-04-30T12:47:00.000-07:00

Previously the company name was Amsterdam Rubber. Good business names (1) are those where the name supports the meaning of the business. Amsterdam Rubber was a good name. The business however was dedicated to a market that was -- unlike today -- not very popular. Today commodities like rubber are "hot."

Another good business name is this one: "Tuenti." To appreciate it you have to imagine yourself in Spain or in a Spanish speaking country. Tuenti is a community / network focused on students. "Tuenti" is pronounced as twenty in English. But it has also "Tu" and "Ti" in the name: matching again the focus on younger people. The name says it all.

The new name of Amsterdam Rubber is Amsterdam Commodities or ACOMO. The Acronym has "commodities" in it. This new name is shorter and therefore easier to handle. It is also more international. And, the "A" of Amsterdam is still present although less prominent.

A change of the name is normally not enough. This company has made a transformation, that is visible on the outside. The business changed from a single focus on Rubber to more in general the trade of commodities and in particular spice-trades. But also the culture must have changed. A Change of the outside normally reflects a deeper change of the inside.

An indication of the change of the culture shows the following story. They often say that culture spreads itself by stories and anecdotes. And I found such a story about this company in an published interview with the CEO - Stephane Holvoet.

We all know the hamburgers of Mc Donald. The Big Mac index is also famous. It indicates the relative cost of a Big Mac over all the countries over the world. The index is used to check the Purchasing Power Parity in the world. And the Big Mac is one of the few products that exists in nearly every country over the world.

The story of ACOMO is related to this big Mac. As it goes, "the Big Mac taste the same in all chains all over the world. And that is quite unique, because the meat that is used in the hamburgers, is a local product that is different in any country." This is where ACOMO comes in. The spice of Acomo is used in the production of the Mc Donalds' hamburgers. "ACOMO is flavouring the Hamburgers of Mc Donalds...(2)

Hans Bool

(1) - ezinearticles.com/?Whats-in-a-Company-Name?&id=177831

(2) - www.acomo.net/acomo%20accomoderen.doc

accounting payroll news

Change Management - Managing Your People Through A Change Process

2008-04-30T12:07:00.000-07:00

Organizations are often in constant change mode, but some staff members are not! Change is very difficult for many people. But there are usually "early adopter", those folks who get on board right away. Who are they and how can you identify them? Below is a list of characteristics to look for in your staff.

They Are Committed: "I have a vision for the change."

Early adopters are often people who are committed to their work. They view their work as meaningful and purposeful for them personally. They can see a vision of the change and see how they can fit it into their work.

They Are Challenged "I'm up for this."

Some people see change as an opportunity to learn more, stretch and grow. They will be part of the 10% who get on board early. They are excited by the chance to do new things, or old things in a new way. They are not Pollyanna's; they are realistic about the dangers and pitfalls ahead, but approve of it anyway.

They Are In Control: "I can make this work for me."

People who are happy with their work have learned how to take control of their work. They possess a sense of power over their work life. They feel they can influence how the change will affect them. They are also realistic about the areas where they do not have control, and they accept that.

They Are Connected: "We are in this together!"

People who have connections with other people and feel they have a support system can often adapt to change quickly. They know they don't have to do it alone. They ask for help, advice and support from others easily and feel respected as a person by their team. They are able to give as well as receive and do not isolate themselves.

When you know a change is coming for your division, department or organization, assess your staff and try to pick out some who have some of these characteristics. It's not foolproof, but it's a good start. Coach these early supporters and help them to help others by remaining positive, offering help, taking a lead position, developing materials, and more. Reward them because what get rewarded gets repeated! Here's the key point; the manner in which the very first announcement about a change is made, will make a big difference in the buy-in you get from your team.

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Change Management - Limiting the Risks

2008-04-30T10:00:00.000-07:00

Large scale change in organizations always creates resistance and elevated stress levels. This is simply because organizations are made of people and people typically have self limiting self images. That is, no matter what presents on the surface, most people don't believe they are good enough to carry through with something they don't understand fully.

In group training meetings I always ask the question, "Who, in this room, believes that most other people in the room are better than you are?" The amazing thing is that MOST people put up their hands. There is no demographic that does this more than others. The same applies across management staff, employees, business owners and stay at home mum's and dad's.

So how does this parle' into the business world? Simply put, any change at any level of business ALWAYS translates into elevated anxiety and self image conflicts. Add to this mix the fact that 61% of your people do not really care about the organization and 18% are actively working against you*, the degree of difficulty of implementing significant change rises quickly. That's 79% of your staff not actively "engaged" in the company.

If not catered for at the very basic level of change program design, you will face enormous resistance to the change and a 70% chance of expensive or catastrophic failure.

An Australian company with long experience in working with people at a clinical stress management and self image enhancement level, has developed powerful methods to mitigate this risk. By working on a confidential level directly with groups and individuals, and being seen as independent of the company's CEO and Board, the company has created a customized structured program that deals with the management team, the HR team and staff in an inclusive teaching and subtle therapeutic model that significantly reduces stress and resistance to your change program. A complete Organizational Health Audit is completed to enhance both physical and mental wellbeing, and staff/management interaction.

The model has been derived from very powerful strategies originally used in treating high anxiety disorders including Panic Disorder and Post Traumatic Stress Disorder. Being able to integrate self image conflict, group conflict and resistance profiles, the new Change Model has been proven to be highly successful. A part of that success can be attributed to the absolute confidentiality applied to all levels of the intervention / training, allowing facilitators a greater degree of trust and acceptance.

The new Change Model is integrated tightly into the Change Management model and worked closely with HR and senior management staff to ensure greatest efficiency and productivity gains.

*Gallop Research 2006

ethics news

Your Employee's Reactions to Change

2008-04-24T11:27:00.000-07:00

Employees will always react to change...positive or negative reactions. It doesn't matter if the change is major or if it's a minor change to a process. People react! So how do you as a manager handle your team's reaction to a change?

Before you can evaluate your team's reactions, you first need to become aware of your own reactions.

==>How Are You Reacting to Change?

-Do you support the change 100%?

-If not, why? You may have no choice but to implement a change. How do you motivate your staff when you are not entirely behind it? It's important to understand your own reactions, as they will permeate all your efforts to get your team on board.

-If the change is company wide, never express to your staff that "the senior management" wants this done now. Why? You are sending several messages to your team....you are not behind it and you don't take full responsibility for your role as their manager. The latter is a habit your staff will quickly pick up.

-You may feel that there is too much work and it feels like a luxury to stop and reflect on your staff's reactions. Your team is there to work, so they need to get on board quickly. Though I do agree that businesses need to move quickly in this competitive environment, it's important to add to the planning stage how employees may react to this change. Without an understanding of your team's potential reaction, you may not successfully implement the change. Remember change occurs at the employee level.

-What is your response to your employee's reactions: Are you annoyed, do you judge them for reacting, or are you accepting and understand that people react.

-Are you knowledgeable about the business reasons for the change? Managers are strapped for time and have many responsibilities, so they don't always get all of the details. Employees will recognize that information is missing... and will fill in the blanks...so be informed.

==>How to Support Your Team Members

Some individuals fast track changes; others need to handle each step deliberately.

-As employees become aware that there is a change brewing, communicate to them as soon as possible. The grapevine is very powerful and disruptive, so it's smart to decrease potential negative responses.

-Make a list of all your employees and assess who is potentially impacted and how they may react to the change. Find your champion, as well as your greatest resister. Both of them will be your partners in creating change...though for different reasons. Your champions will help promote the change. Your resisters will help you with the design of the change and communication.

-Try to include your staff members in the process...gather their concerns as soon as possible. They may also have important points to add to the change process.

-Create a communication plan right from the beginning and keep adding important messages to send out.

-Let them know that changes will evolve and you will inform them along the way.

-Stress the benefits to them and let them know how this change will make it easier for them.

-Listen to them...listen to their concerns, their fears, their input.

==>Watch for Obvious and Subtle Resistances

Employees have different styles in resisting change. If you anticipate ahead of time potential areas of resistance, you can create a solution to handle the situation.

-The employee who seems on board, but never is able to implement the change.

-Employee is still confused about what to do even though you or someone else have given them instructions several times.

-How does the employee respond to the change....actively asking questions or passively accepting the change? -Are they challenging the change...it doesn't make sense to them.

-Do they have a low tolerance to change? Any change creates anxiety for them.

-Do they have a limited view of why the change is necessary...only see how it affects them?

-Talk negatively to other employees about the change.

Since change is ongoing, you have probably handled situations with employees around change. The more analysis you can do upfront helps you communicate the change in an effective and productive manner.

Business online blog

Change Business - Owners Changing Businesses is Like Career Change, Business Evolves

2008-04-24T10:56:00.000-07:00

Changing businesses is a lot like a career change for a business owner. While an entrepreneur can continue to be an entrepreneur, changing businesses or industries is often difficult. With the ushering in of the information age many new entrepreneurs found an exiting field using the power of the internet.

But what about the business owners who started and built a traditional business sometimes over a decade or even multiple decades. Changing businesses can be a challenging task and even overwhelming to any entrepreneur. Some businesses become obsolete, these are the ones that easier to accept change as the only alternative.

But what about when a business is still bringing in strong revenues and seems healthy? Many entrepreneurs find themselves hiding or even stuck behind a robust revenue stream that is barely eking out a six figure profit. Success or perceived success can create an attractive spot in the local community and many business owner find it unfathomable to relinquish the prestige rapport they have developed through years of hard work and strategic planning.

The information age has introduced and supercharged businesses models that can deliver a whole new breed of results. With much lower fixed expenses and variable expenses automated to a large degree, information age business models with revenues of even two or three hundred thousand can out preform their counter parts with revenues of two to three million.

Business owners looking to change businesses in 2008 and beyond will likely be doing so to take advantage of better cash flow and much higher profitability. The traditional brick and mortar business world has deemed acceptable sacrificing profitability for improved cash flow and the Information age business sector is seemingly out to reclaim both back. If cash is king then profitability is queen and the information age is the kingdom most sought after for the business owner looking to change careers in the business arena today.

Using real estate as an example we can see how the power of the Internet, the information age and popularity of the home based business industry in the last couple years completely changes the face of business and investing. Say you bought five houses for 100 thousand dollars each and rented them out and they each cash flowed about 600 dollars per month. You would earn thirty six thousand dollars per year right? ( For illustrative purposes) So to recap, you have invested a half a million dollars and are earning around three thousand dollars a month in passive income right? Well, if you have ever rented real estate, you know it's not passive and never has been, but still you get the picture.

Now say you have information that is worth three or four hundred dollars. This information will either need to save someone a significant amount of time or more than four hundred dollars. Think of information that you have right now that would add value. Now say you sold that four hundred dollar information for fifty bucks. You create an e-book or have one created, then get a ten dollar domain and free hosting and start telling people about your information. If you sell two of those books a day, any where in the world you have out performed your real estate for under two hundred dollars per month.

This is only to prove a point and it is hypothetical money can be made in real estate in a passive way, but the information age offers a more wealth centered approach and smart business owners are seeing this and it gives them that entrepreneurial itch for change.

fundraising

Change Management in the Workplace

2008-04-24T10:06:00.000-07:00

Change Management is an organised, systematic application of the knowledge, tools, and resources of change that provides organisations with a key process to achieve their business strategy. Change Management is a critical part of any project that leads, manages and enables people to accept new processes, technologies, systems structures and values.

Change Management affects public and private sector organisations throughout the world, and has been evolving as a discipline over the past decade. Changes in business can arise internally, for example: from staff or management observing current processes, or from external pressures, for example: government policies.

Organisations are constantly working to implement new technologies, upgrade systems, improve productivity, cut cost, and manage the human capital in an organisation. Improving how organisations manage change will directly impact the success of each of the initiatives executed, and those planned for the future.

Employees are not always adverse to change. Research has shown that employees welcome change as it tends to improve their working lives - but it can be dependent on how the change process is managed. Therefore, Change Management entails thoughtful planning and sensitive implementation, and above all, consultation with, and involvement of, the people affected by the changes. If change is forced onto people, problems normally arise; therefore employee involvement is critical to the process. People fear the unknown and when they don't hear anything, many will envision the worst possible scenarios. Communication is essential, and to ensure all employees know what is happening in the workplace, employee surveys can be undertaken. This can help to gauge the effectiveness of efforts to communicate information throughout the organisation, to ensure the messages about the importance of changes are getting through.

One of the challenges with Change Management is to maintain the current business operations while the changes are being implemented. A framework needs to be created and maintained within a positive environment, so that people accept the change and are prepared and committed to implementing it. Employees need to feel empowered rather than feeling they are being manipulated or coerced, and focus needs to be on the long-term goals rather than on a quick-fix to the situation.

Research suggests that it is vital to form an effective Change Management team that is supported by the CEO and other directors, to manage the planning and implementation processes; particularly as change is taking place at an ever-increasing pace, and evidence suggests that most change initiatives fail. To help prevent change initiatives failing, Change Management Training Course provides the tools to be able successfully implement the process in the workplace, and training underpins practical examples with research.

Change should not be conducted for the sake of change. Just because one company is going through a Change Management process, it doesn't mean another company needs to go through the same process. Organisational change should only be implemented to improve the performance of an organisation and the people within the organisations.

In conclusion, Change management can be scary for employees when it is imposed on them, one reason being that employees know what their current job entails and how to do it, and after the change employees may think they will be incapable of fulfilling the role. Therefore communication is key to all Change Management activities. Leadership skills, commitment, responsibility, and authority are needed for Change Management, and the process needs to be proactively managed, rather than reactively.

Change Management is a broad spectrum of processes and professional specialities aimed at successfully introducing change, and there are a set of activities that will help people switch from their present way of working to the desired way of working.

ethics news

Common Sense Change Control in Regulated Life Science Environments

2008-04-22T21:13:00.000-07:00

There is no doubt that life science companies are highly regulated. Between the FDA, ISO, EMEA (Europe), CLIA and additional regulatory organizations, life science companies are struggling to keep everybody happy. Though motivated by good intentions however, life science companies' efforts to meet every regulation are actually counterproductive, since---like the unwise high school student---they are striving to "pass the test" without "learning the material."

Getting Back in Control
Life science companies need to realize that regulations are designed not to push companies into an oblivion of confusion but are actually designed (or at least should be) with the intent of getting companies to think about the "big picture" or the purposes of their own company projects.

Take change control processes for example. Change control processes can get tricky. When a company has a thousand or more annual requests for change and has to make sure that once approved these the requests are put into action and effectively resolved/closed, while simultaneously maintaining, tracking and archiving all related documentation, it's no wonder that change control processes the world over still give the FDA enough reason to hand out change control related 483s like candy on the 31st of October.

Taken at a simplified level however, change control is actually beautifully simple.

Change Control Simplified
The FDA for instance outlines the simplicity of the control of change in an article entitled, Change Control: Best Practices For FDA-Compliant Medical Device Manufacturers, when it states that "At its most basic, change control is really just common sense. There are six steps to this very important process:

Identify the needed change;
Justify the change;
Document the change;
Get all necessary and appropriate approvals;
Communicate the change and train all the people who are affected; and
Implement and evaluate it afterward"

Yeah Right!
Yeah. Easy for the FDA to say right? They are not the ones who have to implement the change control system. However, isn't there comfort in the fact that the FDA has only provided a brief and very general outline for change control processes and that it is the life science companies themselves that get to fill in all of the blanks? Some companies might wish the FDA would be more specific but then how would the learning occur?

This article should help companies fill in the change control blanks by providing outlines for success in the FDA template:

"Identify the Needed Change"
First and foremost, employees need a greater understanding of the company projects to which they are assigned. When they are assigned to a specific department for instance, they need to understand the overall "big picture" of the department's goals and most likely the company's goals as well. Department managers must ensure that initial and continuing change control training includes project focused information that will not only improve change control results but will give employees the sense that they are trusted enough to participate.

"Justify the Change"
Justifying the change is often left to the employee or employees that identified the potential need for a change in the first place. Justification of a change is an extremely important aspect of controlling change processes. If the initiator of the change cannot elucidate why he or she believes the change should occur in the overall context of the big picture then life science companies are surely "losing out" on changes that should occur. This aspect of an employee's duties are so important in fact that employees should not even be hired without determining whether or not they can provide clear written and/or verbal communication in a change control context. To determine this ability, employees could be tested quickly by asking them to write a change control request justification after they had been given a hypothetical "big picture" scenario and asked to relate their justifications to the immediate effects that the change would have on the overall purposes specified in the scenario.

"Document the Change"
Documenting change control requests and justifications is fairly straight forward. The FDA regulations and/or directives specify a good amount of the information that should be contained on change control requests and/or additional change control related information.

Controlling the ebb and flow of change control forms and documentation however can be a bit complex. In fact, managing any type of compliance documentation is often the monster of compliance in general. However, current technology has resolved many of the issues involved with both company wide change control process management and documentation change control. Life science QA members and other professionals for example should search for a software solution/system that allows life science companies to automate tasks and processes associated with change control, company wide documentation (including change control related documentation) and compliance.

"Get all Necessary and Appropriate Approvals"
Those groups assigned to approve change control requests should 1) be large enough to stimulate various opinions and 2) should include at least one or two individuals with significant change control experience. Approval groups should also have a deep understanding of the "big picture" as should most employees but in addition should also have an even deeper sense of change applicability and change prioritization. The question of applicability is often resolved via open conversation with other approval members and prioritization levels and changes should be documented well on SOPs and should always be adhered to by approval members. Prioritization of change control request processes may and should go through a variety of changes as company priorities change.

"Communicate the Change and Train All the People who are Affected"
Communication of a change can occur quickly via a software solution(s) such as the system mentioned above. Training processes as well can be managed electronically. However, the most important aspect of training is to constantly emphasize the "big picture"or main purposes of a project.

Implement and Evaluate it Afterward
The implementation and evaluation of changes should be carefully and conscientiously monitored. To save time and to eventually save revenue, life science companies should invest in a system that will not only manage change control and document control processes but that will track and maintain all of the data associated with the changes themselves. The system should also have reporting capabilities so that data can be viewed and analyzed scientifically.

Conclusion
To effectively control a change control process, life science companies need to focus on the purpose or the big picture of life science projects and also need to search for solutions that will automate many of the processes associated with change control.

continuity disaster recovery

Using Your In-House Talent to Build Sustainable Change Management

2008-04-20T10:42:00.000-07:00

Where is the Talent?

As leaders, most of us recruit individuals for specific roles within our company and spend very little time reviewing resumes in terms of what skills or talents may be hidden from the brief scan we make to assure that the recruit fits the needs of the role for which we are hiring. One of our wealthiest resources lies within our talent pool, and yet, that is normally the last place we look for talent.

How many times have you known an associate who has outsourced for skills without first investigating whether or not the talent within their organization may be exactly what they are looking for. As an example, I once had an associate who had a secretary who was a published author, had years of experience in teaching and training and yet, because that person was hired to fill one role, they were never considered for any other role in the organization. The result was that my associate spent an inordinate amount of money outsourcing for trainers and individuals who could create training materials. Needless to say the "secretary" soon realized that their talent would not be recognized within the organization and moved on to another organization where their skills and talents would be used to their fullest.

Don't Pigeon hole Your Staff

If you are seriously considering change management in your organization, you will need to drop the "label-phobia" that seems to be entrenched in many businesses today. You would be surprised at the talent you are surrounded by, however, your talent pool is something that you must to draw from. If your staff have felt they are boxed into a specific role, they are not going to jump out of their box without encouragement and support by you, their leader. Many staff who do try to work outside of the box find themselves quickly discarded as an individual who does not fit within the model of the position they were hired for.

This does not encourage change management within an organization because your most talented staff will feel that they are not able, or allowed to, contribute their best to the effort to implementing the change.

Creating an environment for change

Assess the skills and talents of your staff. If your company is small enough this can be a conversation held with individuals over lunch. If you are involved in a large organization, you may want to pull and review the resumes of the staff you have hired in the last year or so to see what talents lie between the lines.

Once you have identified an area of talent, involve that staff member in the change process. Are they an experience publisher or trainer is a role that does not allow for that breadth of creativity. Change the job. Remember the judgment you use in evaluating and utilizing your in-house talent will be beneficial to you, your company and to the staff whose talents you recognize and use.

Engendering Passion

Staff become passionate when they feel that they are being challenged and using their skills and talents to the best of their abilities. Unfortunately, when staff are working in a box, they generally are not given the opportunity to use their skills and talents and the passion that is so vital to creating a positive climate for change management becomes a subject that is discussed but never implemented.

With passion comes a personal investment in the success of change management. Staff who see themselves as a key partner in making the change successful often drive the change needed with enthusiasm and passion and create a positive environment for their co-workers and peers.

Taking the Pulse of our Talent Pool

There are many ways to take the pulse of our talent pool in a positive an non-threatening way. It is important that staff see the search for their talents and skills as a tool for they and your business to succeed. Finding the passion of your staff and what they love to do will open many doors that you may not know you have. Allowing staff to become a creative part of your solution team will enhance and grow your positive persona both with your staff and your customer base.

Just as with some of the major companies that empower their employees to be proactive problem solvers, this is one of the keys to creating sustainable change within your business.

All of your employees should feel empowered to provide excellent customer service and solve problems. By affording your staff the opportunity to solve problems, you will find that the need for you to micro-manage is dramatically reduced and you have much more time to make the positive networking connections that you need to make in order to grow your business.

In-house talent is not hard to find. It does however, require effort on the part of the leadership who will benefit from that talent pool. Imagine having an in-house trainer, writer, publisher, analyst when you have been outsourcing those skills. The money saved by utilizing your in-house talent pool will not only relieve your coffers, but also allow your staff to grow with your business. And, that is really what your goal for change management as it relates to people should be. Changing your business for positive growth and enhancement of your market.

entrep

Business Success - Organizational Change and Culture

2008-04-17T13:24:00.000-07:00

For firms to compete today, they must change to meet the demands of the business environment. In fact, change can be used to create a competitive strategy for your organization. Now picture Sheila the CEO of an organization that is concerned about changing her organization to reflect a competitive strategy in the organization. The strategy centered approach to change might reflect some of the following:

Introducing a new produce or service
Entering new markets
Use of new forms of marketing
Initiation of Internet sales to direct selling
Forming alliances or joint ventures with other organizations
Modifying relationships with suppliers

To be successful, changes in competitive strategy will require a consistent change in people, work roles, organizational structure, and technology. Internal changes in the organizational approach to improve human capability will require organizational learning, and an alignment of the strengths and values within the organization. By aligning the strengths and values within the organization, it will improve the overall success of the competitive strategy and meet with the long-term goals of the organization.

A common mistake is to implement a new program without first diagnosing the problems that are confronting the organization. Management programs and structural changes often fail to solve organizational problems and sometimes will make them worse. The benefits that can be obtained from change made in one area can cause problems for another. Before initiating major changes within an organization, senior management should be clear about the problem and the objectives of the program. The organizational diagnosis can be made by senior management, an outside consultant, or task force. It is often more successful when an outside consultant is involved because it offers an unbiased decision to the diagnosis. Outside consultants trained in organizational development will bring more success to the project.

Source: http://ezinearticles.com/?Business-Success-Organizational-Change-and-Culture&id=1109314
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The Organizational Trust Index as a Window into Organizational Culture

2008-04-17T12:46:00.000-07:00

Trust is the foundation of all human interactions, and the cornerstone upon which high-performing organizational cultures are built. The Organizational Trust Index was developed by the Breckenridge Institute as a method for measuring the level of trust in an organization and the degree to which an organization's culture is either motivated by trust or driven by fear. Managers have two choices. They can either consciously build organizational trust, or they can allow day-to-day issues, ineffective communication, and misperception to erode trust and develop a fear-based culture. The six perspectives of the Organizational Trust Index can help managers evaluate the level of trust in their organization, determine the degree to which their culture is either motivated by trust or driven by fear, and provide a step-by-step process for building a culture that is based on trust.

Trust is often thought of in terms of individual people and one-on-one relationships, for example we trust our co-workers, direct reports, or our boss. But organizational trust means that we trust the organizational structures, systems, and culture within which we work. Unlike trusting individuals, the interdependent actions and interactions of structures, systems, and culture can reach a level of combinatorial complexity where the "system" takes on a life of its own and almost no one can change it. As one manager remarked to a direct report's request for more resources to better serve customers, "I know you're disappointed in this decision Jane, but our system just doesn't allow us to do what you want." The degree to which managers or staff members either trust the structures, systems, and culture within which they work, or fear them, is a "window" into the underlying patterns of behavior, belief structure, and tacit assumptions of an organization's culture. The Organizational Trust Index consists of six perspectives: Truth, Integrity, Power, Competency, Values, and Recognition.

Stop reading this article, and ask yourself the following question, "Can you really trust the organization you work in?" Now get more specific by reflecting on the six perspectives of the Organizational Trust Index as listed below.

Truth: Does your organization have a deep commitment to establishing "organizational truth" (what's really going on in the organization), so employees are free to present the unvarnished truth about organizational matters and question the reasoning, assumptions, and attitudes that motivate the organization's decisions?

Integrity: Does your organization have integrity (does it do what it says), does it practice "fair process" (is it fair and objective) and does it base its evaluations of people and issues on facts and quantitative data, not "politics" and personalities?

Power: Do managers in your organization use their power fairly and effectively to achieve the organization's purpose and goals and to positively influence people, not out of self-interest?

Competency: Is your organization competent to overcome the challenges it faces and can leaders make decisions that will ensure the achievement of its strategic and tactical goals (does your organization knows what it's doing)?

Values: Does your organization have a well-defined set of core values that it communicates to all employees, does it authentically lives by those values (even in difficult situations), and are those values consistent with your own personal values?

Recognition: Does your organization recognize (notice) the contributions that you make in the workplace and does it confirm your own views about your professional abilities? Do you have a future in this organization?

As a rule, managers and staff members in for-profit, non-profit and government organizations do not consciously ask these six questions, but they exist invisibly just below the surface of consciousness. What we believe about the six questions can be made visible by repetitively asking the question "why" in the face of organizational issues. For example, "Why do the managers consistently fail to share information, so the left hand does not know what the right hand is doing, even though they know that it negatively affects the overall performance of the organization?" The answer might be that managers are territorial so they don't share information easily. The next question might be, "But why are managers territorial and why do they fail to share information even when they know it's in the best interest of the organization?" Is it because they want to retain their own power? Do they view others as being incompetent to get the job done? Do they have different core values than their coworkers? and so on. The underlying causes and motivations of ineffective organizational performance are often traceable to an interlocking set of beliefs, tacit assumptions, and patterns of human interaction that emerge from the six perspectives of the Organizational Trust Index. The answers that groups of managers and staff members give to the six questions are indicative of their level of trust in the organization and the degree to which the culture is either motivated by trust or driven by fear.

Driven by Fear or Motivated by Trust

While some managers believe that fear is a necessary part of achieving goals and objectives, researchers from Abraham Maslow to W. Edwards Deming have warned against the subtle, but profound, effects of management-by-fear (rather than trust) and the devastating affects that fear can have on establishing or maintaining a high-performing organizational culture. Deming argues that fear makes people afraid to share their best ideas; expand their capabilities and skills; admit mistakes; suggest process improvements; question the underlying purpose and reasoning of decisions or procedures; or even to act in the best interest of the company (W. Edwards Deming, Out of Crisis, MIT Press, 1992, pp. 59-62). Managers and staff members fear: a) being the object of real or perceived retribution, b) being passed over for promotion, c) receiving lower performance ratings, d) looking uninformed or like a trouble-maker, e) being assigned to "grunt" work, rather than the more visible projects, and f) being seen as not having sufficient intellectual horsepower to advance beyond one's current position. Fear ultimately leads to padded figures, distorted measures of performance, and the tendency to sanitize, spin, and reinterpret what's really going on in an organization as information moves up through organizational levels to top management.

Maslow argues that while each of us has a deep need to know the truth about our capabilities, strengths, areas for improvement, and blind spots, many people fear (or even evade) knowing the truth about themselves. Fear undermines our courage to speak up, our confidence in our professional abilities, and over time fear erodes our self esteem. While most managers want to know the truth about what's really going on in their organization in terms of milestones, processes, delivering on commitments to customers, and employee perspectives, these same managers often fear, resist, and evade knowing the truth (the brutal facts) about these same issues. Maslow argues that enlightened managers genuinely want their employees to know the truth of what's going on in the workplace (everything relevant to their situation) and that, "...knowing is good for them, that the truth, the facts, and honesty tend to be curative, healing, to taste good, to be familiar...", (Abraham Maslow, Maslow on Management, John Wiley & Sons, 1998, p. 20).

It's not just a fear of discovering our negative traits and characteristics, as Maslow explains, "To discover in oneself a great talent can certainly bring exhilaration, but it also brings a fear of the dangers and responsibilities and duties of being a leader and of being all alone" (Abraham Maslow, Toward a Psychology of Being, John Wiley & Sons, 1999, pp. 72). The bottom line is that fear kills curiosity, exploration, innovation, creativity, growth, high-performance, synergy, teamwork, and morale in organizations. Fear negatively impacts organizational performance in ways that are difficult or impossible to discover because it operates on autopilot, below the surface of organizational awareness, as an undiscussable Invisible Bureaucracy.

Building Trust in Organizations

As mentioned previously, trust is the foundation of all human interactions, and the cornerstone upon which high-performing organizational cultures are built. The six perspectives of the Organizational Trust Index can help managers evaluate the level of trust in their organization, determine the degree to which their culture is either motivated by trust or driven by fear, and provide a step-by-step process for building a culture that is based on trust. But successfully changing a culture from being fear-driven to being trust-motivated requires a sustained commitment of time and resources on the part of management at all levels, and the momentum for creating and sustaining this change must start at the very top of an organization. It requires that all managers learn a new set of organizational, interpersonal, and cultural tools that shape their perspectives on how to run the organization. It also requires perseverance because as studies and field experience have shown, it takes between 18 months to two years per organizational level to create deep, sustainable change. Here are three steps for building a trust-based culture.

Step 1: Identify day-to-day operations, structures, systems, culture, and patterns of human interaction that are creating fear and undermining trust, and take them off autopilot. Remember that as a rule, managers and staff members do not consciously ask the six questions because they exist invisibly just below the surface of organizational consciousness. What managers and staff members actually believe about the six questions can be brought to the surface of awareness by repetitively asking the question "why" in the face of organizational issues. So why do managers consistently fail to share information so the left hand does not know what the right hand is doing even though they know that it negatively affects the overall performance of the organization? Why are managers territorial and why do they fail to share information even when they know it's in the best interest of the organization? Chances are that the underlying causes of this issue are related to one or more of the six perspectives of the Organizational Trust Index. In addition, when beginning the change process it's important to remember that organizations are collective-cultural entities that are led, managed, and changed one person at a time.

Step 2: Reconfigure the organization's structures, systems, policies, procedures, processes, and patterns of human interaction to consciously address the appropriate elements of the Organizational Trust Index. First, consciously building a foundation of organizational Truth and Integrity where every manager understands: a) the business reasons for establishing organizational truth and b) why it is so important for employees to feel free to present the unvarnished truth about organizational matters and to question the reasoning, assumptions, and attitudes that motivate decisions and policies. One approach is to use Deming's 14 Points to establish the cause-and-effect relationship between fear, ineffective organizational performance, and the bottom-line, e.g. his Point 8 is "Drive Out Fear" (Deming, Out of Crisis, p. 23 ff.). The organization and its managers must also commit to practicing "fair process" as a sign of organizational Integrity where evaluations of people and issues are based on facts and quantitative data, not "politics" and personalities. All managers must consistently model organizational Truth and Integrity by ensuring that their deeds follow their words, and by delivering on commitments. Over time as the organization holds managers accountable for modeling organizational Truth and Integrity in their day-to-day operations (external commitment), and managers' personal values become increasingly aligned with the organization's values (internal commitment) employees will begin to get the message that the organization really is committed to Truth and Integrity as the foundation of its day-to-day operations.

Second, the use of Power and Competency in the organization needs to be based squarely on the foundation of organizational Truth and Integrity. Managers at all levels need to ensure that they use Power fairly and effectively to achieve the organization's purpose and goals and to positively influence people. Power should not be motivated by self-interest - a view that echoes Jim Collins' notion of Level-5 Leadership (Jim Collins, Good to Great, Harper Business, 2001, p. 17 ff.). In addition, managers must be able to make tough choices and have the determination and resolve to persevere in the face of obstacles. They must demonstrate the fact that they are competent to lead the organization (they know what they are doing) and they must be clearly seen as having the capability and authority to lead. Over time, employees begin to get the message that managers really do use Power fairly and equitably, and that the organization knows what it's doing and is capable of achieving its mission, goals, and objectives without compromising its commitment to organizational Truth and Integrity.

Third, Values and Recognition must be built upon the foundation of the first four perspectives of the Organizational Trust Index. The organization should craft a well-defined set of core values that it really believes, communicates broadly, and that all managers are expected to authentically live by even in difficult situations. Core values are criteria for choice for how things get done. In other words, while achieving goals, objectives, and key performance indicators are primarily about what the organization gets done, core values are more concerned with how things gets done, and why they get done. Recognition is the final perspective of the Organizational Trust Index. In a world where the battle for top-talent is global, it is important for organizations to recognize the contributions that high-performers make in the workplace. More specifically, managers should confirm their employees' views about their professional abilities, skill levels, intellectual horsepower, and problem-solving abilities to show high-performers that they have a future in the organization. Over time, top-performers get the message that the organization values them as individual contributors and sees them as one of its most important assets. Moderate-performers get the message that the bar is set high and the organization has defined a path that will enable them to reach it if they have the motivation and desire.

Step 3: Intentionally migrate the new trust-based configuration of structures, systems, culture, and patterns of human interaction by managers back to autopilot using the four embedding mechanisms described below. An organization's culture is created, solidified, and reinforced by these powerful mechanisms so they are key to making deep cultural change sustainable and building a culture of trust.

Primary Embedding Mechanisms: Informal rewards are the primary embedding mechanisms for reinforcing an organization's culture because they define what people should focus their time, energy, and resources on. Not surprisingly, this is what actually gets done in most organizations. Informal rewards include: a) criteria that managers use to recruit, hire, promote, retire, and move people out of the organization, b) things that managers pay attention to and really care about, c) managers' emotional reactions to critical incidents and crises, d) how managers create budgets and allocate scarce resources, e) managers' use of their own visible behavior to teach direct reports how problems should (or should not) be handled, and f) criteria that managers use to allocate rewards and status. The key is for all managers to use these primary embedding mechanisms to consciously build trust, and to discourage (and ultimately eliminate) fear as the impetus for action.

Secondary Embedding Mechanisms: This includes things like an organization's formal structures, systems, policies, procedures, and formal statements about core ideology (purpose, core values) and philosophy. These are the "formal" rules of the game for how things get done in an organization, and they often stand is sharp contrast with the "informal" rules of the game described above as primary embedding mechanisms. When trying to estimate how difficult it will be to build a culture of trust, there are three questions that are key indicators. First, how wide is the "gap" between the formal and informal rules of the game (primary and secondary mechanisms)? Second, how strong are the social sanctions against discussing the gap between the formal-informal rules publicly? Third, how strong are the overt and covert forces that will rise up to prevent positive change? As a general rule, the wider the gap and the stronger the social sanctions and opposing forces, the more difficult it will be to build a culture of trust.

Tertiary Embedding Mechanisms: The purpose of culture is to "teach" people how to "see" the world, and the third embedding mechanism is how this is accomplished. More specifically it happens through teaching, training, indoctrination, and interpretation about what day-to-day operations and the primary and secondary mechanisms actually mean within the context of the organization's culture, e.g. how we do it, or see it around here. This is often the most difficult part of organizational culture to change directly because the tacit beliefs and assumptions upon which our beliefs are based emerge naturally (unconsciously) as the consequence of observing patterns of human interaction in day-to-day operations. The key to changing this belief structure is to focus on consciously building trust with the primary and secondary embedding mechanisms by narrowing the gap between them, and then the belief structures that compose the tertiary embedding mechanism will thaw then re-solidify in a new configuration naturally over time.

Repetition: Consistent, cumulative, repetition is the key to changing organizational reality. The day-to-day repetitive experience of the three other embedding mechanisms helps to migrate the elements of a new trust-based culture to autopilot operations and eventually organizational trust becomes the basis of day-to-day operations. The trust-based culture becomes like a "social mirror" that reinforces day-to-day actions and interactions, e.g. how it is around here. In organizations that have built a trust-based culture, only people who reflect the characteristics of the six perspectives of the Organizational Trust Index are rewarded and promoted into management positions. The cultural norms, beliefs, and tacit assumptions of organizational trust become as unquestioned and autopilot as the ineffective norms of being driven by fear.

Bottom Line: Managers have two choices. They can either consciously build organizational trust, or they can allow day-to-day issues, ineffective communication, and misperception to erode trust and develop a fear-based culture. The fact is that fear kills curiosity, exploration, innovation, creativity, growth, high-performance, synergy, teamwork, and morale in organizations. It negatively impacts organizational performance in ways that are difficult or impossible to discover because they operate on autopilot, below the surface of organizational awareness, as an undiscussable Invisible Bureaucracy. Managers at all organizational levels can use the Organizational Trust Index as a road-map to build a culture that is motivated by trust, not driven by fear.

Source: http://ezinearticles.com/?The-Organizational-Trust-Index-as-a-Window-into-Organizational-Culture&id=1085113
branding news

Change Management - New Risks And Challenges

2008-04-17T12:10:00.000-07:00

Change management in organizations is about to be faced by a new critical challenge. Over and above the fact that on average 18% of staff are actually actively working against the interests of the company, and another 61% don't really care (1), the current escalation in financial and social pressures are making change programs twice as dangerous to proceed with.

If you are senior management and have done your homework you will already know that 70% of organizational change or cultural change programs fail to meet the requirements of the project targets. Most just fail completely and nothing changes at all. Yet we still pursue change without understanding the basic core necessities of successful change.

Unless you can create congruency between your goals and the goals of the people and management within your organisation, you will be fighting an uphill battle. If you are a student of Sun Tzu's Art of War you will know that one never enters or even considers such a dangerous position. With the fear that is endemic in the current global economic meltdown and the extra pressures that this places on individuals, the added high internal stress levels for both organizations and its individuals are making any change program very difficult.

So here is what I suggest. Throw out your current plans and review two things.

First review if the change in the way the company operates is really necessary to survive or grow, or whether the project can be delayed for 12 months. If it is necessary, be prepared to spend the extra money to ensure the fight is on your terms.

Second, if you need to proceed don't employ any Change Manager or HR staff that are not fully aware of effective methods of stress management and cultural change within organizations. As part of this awareness you also need to ensure that your management team is up to the job as they will be the direct interface with all staff during the project roll out. I strongly suggest that part of the plan be to incorporate a specialist in social engineering with a strong background in stress and trauma counseling to interface with the Project and Change Managers.

Do these things and you will potentially save hundreds of thousands or millions of dollars, and maybe save your company from extinction.

I know it all sounds so dramatic, but in these times of economic and social unrest you are sailing on dangerous waters. Don't set sail with out the necessary safety equipment on board.

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(1) A recent (2006) Gallop Organisation survey showed that in any average company only 21% are actively "engaged" in their work and support the company. Another 61% are "not engaged" or just don't care about their job or the company. And 18% are actively "dis-engaged" and working against the interests of the company, whether they realize it or not. -----------------------------------------------------------------------------------------------------------------------

Source: http://ezinearticles.com/?Change-Management-New-Risks-And-Challenges&id=1090592
branding news

Kaizen? - What is Kaizen?

2008-04-16T12:14:00.000-07:00

What is Kaizen? Many people that are new to Lean Manufacturing will at some point end up saying, "Kaizen? What is Kaizen? What do you mean by Kaizen? What does Kaizen do?" Several terms and definitions come to mind when talking about Kaizen.

Kaizen is a Japanese term meaning "Change for the better" or "improvement". It is most commonly translated into English as "Continuous Improvement". Kaizen is one of the forerunners in Lean thinking and requires discipline and constant re-evaluation. It works on the basis that nothing can ever become perfect. There is always something that can be improved.

Kaizen on a company scale can mean several things. As part of a continuous improvement culture, most companies hold what are called Kaizen Events. These are generally an activity that remove people from their daily tasks and place them on a team, to accomplish a goal within three to five days. These are highly targeted projects with achievable results, such as moving machines so that they can work closer to one another for continuous flow, or designing and implementing a new queuing system for a specific purpose, or a SMED event, etc. No matter what the goal is, the process is relatively the same: Plan, Do, Check, Act.

Plan, Do, Check, Act (PDCA) was developed by W. Edwards Deming and introduced in Japan in the 1950s. It is based on the Scientific Method and is a precursor to Six Sigma's DMAIC process (Define, Measure, Analyze, Improve, & Control). This is how PDCA breaks down:

Plan - Develop a sound, well thought out goal (that can be achieved with moderate effort) and how to achieve it.

Do - Implement the ideas and/or changes needed to achieve the goal, including training.

Check - Review what you've done; be critical, but not negative.

Act - Depending on how the Check step went, sustain these results or perform the whole PDCA cycle over again.

You can see that this is pure continuous improvement as the cycle can be completed over and over again. In the Toyota Production System, they have slightly changed this language to be Plan, Try, Reflect, and Standardize. Different verbiage, but same expectations of process and results.

Typically, most Lean training and resources define two types of Kaizen: System or Flow Kaizen and Process Kaizen.

A System or Flow Kaizen deals with an entire value stream being evaluated for opportunities of improvements and will usually include action from several levels of management.

A Process Kaizen is a concentrated improvement of a single process (or groups of the same type of process). This type of Kaizen will usually include a cross functional team dedicated to improving that individual process.

Both of these types of Kaizen are abundant in any successful Lean enterprise, and are at the very heart of those organizations. Working within a company that needs help implementing Lean can begin to wear on your mind, especially if you are the agent of change. For my entire professional career I've had to take on this role. You push and push everyday for changes because you can see the waste sitting all around the plant and office; in stacks of wasted inventory and DMR'd materials to frivolous steps in product development processes. It's tough to keep a positive attitude.

Over time I've learned to incorporate the idea of Kaizen into everything that I do. I make it a habit to say this word to myself over and over again at different times during the day. While at work, it keeps me in the moment and opens my mind to thinking that everything can be made better if we just apply ourselves a little bit more. Now, I tend to Implement Then Perfect which is a good, offset definition (sort of) of Kaizen, where as early on in my career I would spend too much time pondering possibilities instead of just doing. This creates better outcomes and makes you think on a Results Driven basis, which is really the way you want to think - you will constantly grow and improve - just like a company that is maintaining a strong Kaizen mentality.

On a personal level, use Kaizen to improve you life and it will work its way into your professional career. Incorporate it into your daily life with exercise, eating habits, vices, etc. If you want to start working out, start small and build from there - add a little bit everyday. That's small, incremental improvements that work. If you eat too much, try to eat 1 less bite at 1 meal every other day, and eventually move up to 1 bite for every meal, everyday. If you smoke and want to quit, cut back slowly and your body will respond favorably. These methods work for you and the same type of stepwise improvements drive positive changes in your company.

If you know someone who claims to be perfect - they're not. Even a lot of the most successful people will tell you that they are not perfect and that that belief is what got them to where they are today - and it keeps them there. You maybe thinking: "Won't that thinking just make me depressed?" The truth is, no, it won't. Once you allow yourself to see the flaws that are holding you back, you will be much more likely to overcome them. A good motto that I try to live by is: Always be happy, but never be satisfied. That is the essence of Kaizen. That will bring continuous improvement to your life. That is Kaizen.

customer services

Change Management Through Effective People Management

2008-04-15T11:23:00.000-07:00

Passion

To make effective and sustainable change management a business owner must begin with self assessment. The driving force of exciting your staff and encouraging them to make changes will be in the passion that you, as an individual and owner, have to invest in the change. Passion for a change is the driving force of many businesses, but sustaining the passion is a challenge and often loses its focus as we become bogged down in the daily grind of just keeping others enthusiastic.

It is important to periodically take your passion pulse to make sure that you are maintaining the kind of passion for your product or service that is necessary to instill the same passion for success in your staff.

If you notice that the drive seems to be ebbing from your staff or that the enthusiasm is falling, be sure to check the mirror first before deciding that the needed change lies with your staff. Remember, you are the driver of the passion, if you lose it the rest of your group will lose it as well.

Vision

It is important to start with a clear vision. But even more importantly the vision must be flexible enough to adapt and grow as needed. Too often the vision of a business reaches a point where it is holding growth back before it is re-evaluated and restructured. If your vision begins as an evolving, growing, living thing, then you can easily make changes and adaptations as needed without the customary pitfalls that happen with a structured and inflexible vision.

Your vision should be vibrant and encompass not only the future, but also the present. A vision statement contains three major parts:

Where we are at and why. For example, are we just starting our business or facing new growth opportunities. Have we recently changed directions of our product or service, where do we see ourselves right now.

Where do we want to be, realistically, in a specific number of months or a year? Not the specifics for "how" we are going to get there (that is for our marketing strategy and plan), but rather just a broad brush stroke of where we really see ourselves getting in a specific period of time. A reachable goal.

Where do we want to go. This is my personal favorite, as there is no need to consider whether or not we "can" make this part of our vision happen. Rather, we are stating our vision in the ideal situation, with nothing going wrong and all systems go.

As you can see from the three parts of our vision, they are adaptable. A vision for our business should be re-evaluated at least yearly with a skeptical eye. Each part should be assessed and evaluated. If you are moving in the right direction the three parts of your vision will be moving. Until number three has become number one, while you have added a new two and three to your vision statement.

Sharing a clear vision statement with your staff is critical to making change management sustainable. In order for people to make changes in their life and work they must see a reason, must see a benefit and must be challenged. I once heard a teacher I greatly respected say that "kids will live up to your highest, or down to your lowest expectations." Very few people have it in their nature to create their own expectations from a vague statement purporting to be a vision of a business. Make sure that you know your vision well enough to be able to explain it in simple language to any business associate in your company.

Objectives

Another area of importance is clear objectives. I have often seen business associates get mired down in the details of objectives to the point that their staff could not offer any creative input or constructive criticism for fear of stepping on the "objective" egg shell. Your objectives, just like your vision should be something living and evolving. Objectives should not be written in terms of what will happen if people don't live up to them. Associates who have a tendency to write yearly objectives for their staff, and then wonder why their staff don't or can't complete the yearly objectives amaze me. A staff member who cannot or will not meet certain objectives is making a non-verbal statement. Too often managers of the organization do not open a dialogue with their staff, but rather punish them for their lack of effort. When your staff look at the term objective in a negative way, your setting objectives for your business means that you are going to be driving an unsustainable objective or change. Be sure that in your business you commit to making "objective" a positive and inclusive term. Something that allows your staff members to use their creativity and hidden skills and knowledge to achieve the goals and objectives you set for your business.

Buy-In

You may have tried and failed several times to create an environment conducive for change in your business. But, without buy-in and personal investment from your associates and staff you will find that change management becomes a catch-all phrase that really doesn't mean much. For change management to be sustainable you must first get buy-in and personal investment from all of the stakeholders involved in the change. Change management does not mean waking up one morning and deciding that your business will run a whole lot better if x, y and z are implemented immediately and then thrusting it upon your staff. Change Management is a process that first involves your staff and associates and because of this it is important that there be discussion of how the change will be implemented based on the vision and objectives that you have clearly expressed earlier.

As we have mentioned previously. People will drive change with enthusiasm if they see a clear reason and have a personal commitment to see the change be sustainable and successful. If you are the type of manager or business owner who comes up with a new idea for change management weekly and then lets it slide into the unknown, then you are going to have a real problem convincing those folks who have worked for you for some time that you really mean it this time.

The way you are going to convince anyone of your commitment to change management is to first establish clear visions and objectives that support the need for change and then clearly define the benefit to those individuals who will be implementing the change.

While change management may start with the head an organization or owner of a business, it will be sustained, or end with the staff of that organization or business. Your employees and their talent are your greatest asset. If you choose to pigeon-hole certain staff, and hide their creative light under a bushel it is to you and your company's disadvantage since you will wind up paying an outside source to perform functions of people you already have on staff.

It is important when you are attempting to implement change management that you find out what the inherent skills of all of your employees are and utilize those skills and talent. Provide opportunities for your staff to grow and learn within your business and your training dollars will not constantly go towards the training of new staff in old skills. It is important that part of your change management strategy be to implement all of your resources. In order to implement those resources you must know what they are. For this reason it is important that you take the pulse of your business associates and staff as often as you take the pulse of your passion about your product or service.

Franchising

Four Dimensions of Leadership

2008-04-15T10:48:00.000-07:00

Today's business literature is replete with models of leadership and an entire industry has grown up around coaching leaders. Leadership is arguably one of the most valuable of human activities, yet despite the vast literature on the topic, many people remain unable to identify the basic building blocks that define what leadership is. Intuitively we know that leaders possess the talent to bring people together; to get them to work together effectively; to align them around a common purpose, goals, and objectives; to get them to co-operate and rely on each other; and to trust each other. We also know from the experience of observing leaders in action that the generic attributes of leadership described in the literature, and the actual role that a leader plays do not occur in a vacuum, but are embedded within specific historical contexts, business situations, and the organizational structures, systems, and culture within which people lead (Elliot Jaques, and Stephen Clement, Executive Leadership, (Arlington, VA: Cason Hall, 1994, p. xiv ff. and 6 ff.).

Research and field analysis compiled by the Breckenridge Institute® have shown that leadership has four interdependent dimensions.

Expertise, Experience, and Wisdom

Problem Solving Ability

Personality, Core Beliefs and Values

Awareness of Self and Others

The first dimension of leadership (Expertise, Experience, and Wisdom) includes education, expertise, experience in specific industries and markets, and a track record of effectively leading organizations with various numbers of employees and managerial levels (Elliot Jaques, Requisite Organization, Baltimore, MD: 2006). Over time, managerial wisdom emerges as seasoned and sound judgment about how organizations and industries work, what motivates people, what customers and suppliers truly need and desire, and how to work effectively at higher-levels of management.

The second dimension of leadership (Problem Solving Ability) is about having the appropriate level of "intellectual horsepower" to effectively perform the level of work and task complexity to which a person is assigned. Work and task complexity is defined as: a) the number of variables operating in a situation, b) the ambiguity of these variables, c) their rate of change over time, d) the extent to which they are interwoven so that they have to be unraveled in order to be seen, e) the person's ability to identify and control the salient variables once known, and f) the time horizon of the work in terms of days, months, and years (Jaques, Requisite Organization, pp. 24 ff. and Jaques and Clement, Executive Leadership, p. xiv ff.).

The third dimension of leadership (Personality, Core Beliefs and Values) manifests itself as patterns of behavior and interaction, tacit assumptions, intrinsic motivators, and underlying patterns of how leaders see themselves, other people, and the world around them (see Mark Bodnarczuk, Breckenridge Type Indicator).There is no one "right" personality or set of core beliefs and values for a given leadership position, but instead the question is: a) to what extent do they help a person work effectively, or b) reveal decision-making biases, predictable errors in judgment, or patterns of inappropriate behaviors? A key indicator that a person possesses a mature grasp on this dimension of leadership is the degree to which they: a) avoid using what Collins calls either-or-thinking, and b) instead practice both-and-thinking (Jim Collins, Built to Last, New York: Harper Business, 1994, p. 43 ff.).

The fourth dimension of leadership (Awareness of Self and Others) is based on the timeless principles found in Jim Collins best-selling book, Good to Great (Jim Collins, Good to Great, New York: Harper Business, 2001). Collins began his research on Good to Great with a bias against leadership. He told his research team that the fact that "great companies had great leaders" went without saying and was an uninteresting finding. But his research showed that truly great companies had a fundamentally different kind of leader (what he called a Level-5 Leader) and these people were characterized by professional will and fierce resolve combined with personal humility. Level-5 Leaders put self-interest aside and instead focus on building a sustainable organization and setting others up to succeed, not fail. Level-5 Leaders know how to introspectively look into the mirror of personal responsibility when things go wrong, and they know how to ascribe credit to others when things go right (Collins, Good to Great, p. 33 ff.). The key question is, "How does one become the kind of leader that Collins describes in Good to Great?" Collins argues that Level-5 Leaders exhibit a pattern of personal development in which the ego-centered drive required to reach the top of corporate America is transformed into the paradoxical combination of professional will, fierce resolve, and humility, but he offers no systematic approach to becoming a Level-5 leader - it's beyond the scope of his study. Our view is that the fourth dimension of leadership (Awareness of Self and Others) is the key to becoming a Level-5 Leader.

The four dimensions of leadership are an interdependent set of competencies, skills, and characteristics that enable leaders to bring people together; to get them to work together effectively; to align them around a common purpose, goals, and objectives; to get them to co-operate and rely on each other; and to trust each other. As mentioned previously, the generic attributes of leadership described in the literature, and the actual role that a leader plays day-to-day do not occur in a vacuum, but are embedded within specific historical contexts, business situations, and the organizational structures, systems, and culture within which people lead. Consequently, the four dimensions of leadership must always be contextualized and applied to the real life situations and challenges that leaders face.

Franchising

Recession-Proof Your Business

2008-04-15T10:04:00.000-07:00

With the weight of the housing, credit and financial woes that are threatening to push the country into a deep recession on his back, Federal Reserve Chairman Ben Bernanke climbed Capital Hill on Wednesday with some bad news. He told the Joint Economic Committee of Congress that "It now appears likely that gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly." By one definition of the word, six consecutive months of decline in the GDP (the value of all goods and services produced in the United States) constitutes a recession.

The news, however, was not all bad. Bernanke also voiced his optimism for the second half of 2008 and the beginning of 2009. "Much necessary economic and financial adjustment has already taken place, and monetary and fiscal policies are in train that should support a return to growth in the second half of this year and next year," Bernanke said. He was referring, in part, to the recently passed $168 billion stimulus package of tax rebates for people and tax breaks for businesses as well as the Fed's aggressive interest rate reductions.

So what does all that mean to you, the small business owner? It means that you should come up with a plan today, just in case the floor drops out beneath you tomorrow. Remember, there is a certain agility that comes with being a small business. You can, with a little drive and discipline, refocus your efforts far more quickly and easily than a large corporation can. That is important. What should you focus on? Opportunities.

The Joys of Diversification

Even in the worst economic times, there are opportunities. It is up to you to grab onto those opportunities and run with them. By expanding your offering of goods and services, you will expand your client base. Repackaging your services and directing your efforts at a different audience is another way to diversify. For example, if you are a web designer with a web design business, you might consider becoming a consultant or offering seminars on Web design, search engine optimization or some other, related topic, anything that would allow you to make money and market your core Web design business at the same time. The key is to break out of your niche ahead of your competition.

Use Customer Service to Stand Out

Business is not only about finding customers, it is about retaining the ones you already have. The key to doing that is solid customer service and the basis of solid customer service is star treatment. The fact is that, all things being equal, the experience that a customer has in your establishment is the deciding factor in whether or not they will return to continue doing business with you. Some of the things you can do are broadening your product and service offerings, providing faster delivery and offering more flexible payment alternatives. Overall, however, make sure everything you do is customer-focused. Communicate with your customers; find out what they need and want and how close you are to filling those things. Then, adjust your efforts to build up your strengths and eliminate your weaknesses.

Market, Market, Market

You might have guessed from the title of this section that when the economy slows down, you need to up your marketing. It is a common mistake-and one that can severely damage your business-to cut back on marketing when the economy goes South. Take a lesson from the natural world. When food is scarce, the lion is neither gentle nor patient. In fact, they are more aggressive about taking down an animal and defending their kill from the surrounding hyenas then they are under normal circumstances (not that the difference really matters much to the recently-grazing zebra they are about to munch on). In lean times, you have to get out there, your marketing needs to be more aggressive, more complete and more meaningful than ever:

Touch base with past clients.

Use incentives like feebies, discounts and the like.

Create a referral rewards program to generate a little word of mouth action.

Increase your public relations efforts by getting more involved with your community and setting yourself up as an expert and a market leader. That involves some risk but once you accomplish it, recession worries will be a thing of the past. From this position, you will easily defeat your competitors even in very slow times because customers will have a real, tangible reason to see you.

Review your marketing program to date and see if it is as cost-effective and efficient as it could be.

Network like crazy.

Ride the Cutting Edge

Are you up-to-date with technology and best practices? Can you describe the trends, problems and opportunities currently facing your industry? If you cannot answer either of these questions in the affirmative, it is time you went back to school. Being up-to-date can help you run your business more cost-effectively and reach new customers in other places, even other countries. Selling online, for example, could take your local business and, depending on what you sell, make you a global player almost overnight.

Sharp Focus: It is all about your goals

Success depends on keeping your eye on your long-term goals while executing your tactics and strategies. Your strategies are the shorter-term objectives that will drive you toward your goals. Tactics are those things you do to achieve your strategies. Everything you do has to be done with your goals in mind as part of an overall strategy. This means, that if you are considering your overhead to stimulate short term profits, think about the effect that this will have down the line. If it does not support your goals, don't do it. There is always another way.

Improve to Excel: Both sides of the battlefield

It has not been explicitly stated up to now, but everything you have read so far is really about improvement. I have suggested that you take a close look at what you are doing and try to figure out if you can do it better. By itself, that is half the battle. I have never been one to give much credence half the battle. I am more of a whole battle kind of guy so here is the other half: Your Competition. What are they doing? More to the point, what are they doing right (that you can adapt) and what are they doing wrong (that you can exploit)? Perhaps it sounds a tad "cloak and dagger" but they don't call it corporate espionage for nothing. I am not suggesting that you go to Machiavellian extremes here, but I am suggesting that intelligence on your competition is good and being able to exploit that intelligence is better.

You improve on your products and services, policies and practices; and you improve you competitors as well. If you do these things and you will be able to ride out most economic hard times with little damage. Come to think of it, why wait for the storm clouds to gather and Bernancke to intone that most-feared word: Recession? Why not begin your program of improvement today? In the immortal words of P.T. Barnum: "Those who really desire to attain an independence, have only set their minds upon it, and adopt the proper means, as they do in regard to any other object which they wish to accomplish, and the thing is easily done."

Now get out there and accomplish something!

careersemp loyment

Implementing Change Management in Your Business

2008-04-12T01:20:00.000-07:00

Assessing the Need for Change

While "change management" is a popular concept and the term is thrown around a lot now days, you first need to assess whether or not a change is needed in your business. Usually we assess our business when it is in a slump, trying to figure out how to enhance or grow our customer base, or making significant changes to how we do business.

Assess your business need for change when things are going well. Look at the best practices of your competitors and compare their results with yours. Adjusting your strategy to enhance your growth or customer base is not change management.

What is Change Management

Many people think change management means one thing. They mistakenly lump the three distinct parts of change management together and then wonder why it is so hard to implement. When implementing change management, it is important that we keep each area compartmentalized to avoid unnecessary stress and aggravation for ourselves and those we are working with.

Change Management - People

This area deals with the people in our organization. How we relate to each other in our work environment and what changes we can implement to make our organization function more effectively. If you are focusing on people in your change management plan, this is not where you change processes. The changes you make, whether in reorganizing your business or department or creating more productive teams lie within the "people" portion of change management.

When implementing a change management plan it is important that all of your staff understand why the change is needed. The explanation must be detailed enough to encourage a personal investment on the part of your staff for the success of the change. If staff do not feel a real need for change, or have not made a commitment to it's implementation it will not only take longer to make the change, but also the change will not be long term and sustainable.

One of the mistakes that we, as leaders make, is to assume that because we can see the picture clearly, everyone else can too. It is important to take a step back and think about the "pieces" of the picture that our staff are seeing and what they are not seeing. In order to implement change, everyone must see and understand the same picture and have the same understanding of how it will benefit them.

People will respond with enthusiasm if they see a benefit to themselves or their work environment, if they understand the need for a change and if they are included in the change process. Too often decisions to implement change are made without the involvement of the staff who will be most affected. This is the primary reason that those efforts fail. There must be buy-in from a majority of the staff to effectively implement change. Especially change that is going to involve people and how they interact and communicate with each other.

Change Management - Processes

This area deals with the way things are done in our organization. How we process the paper, and what we do with it. This is where forms and processes are analyzed and changes are made to meet the needs of our growing business.

Not everyone in our business deals with the same processes. As much as we would like uniformity, what makes our business unique is the way that our staff interacts with customers or meets other needs with quality and precision. If we are going to assess and change processes, it is important that the process needs changing. Sometimes it is not the process but the people who need to change, but because we have lumped change management into one big ball we wind up trying to make changes to perfectly acceptable processes or change people when the process needs to be changed. No one knows better about the need to change a process than the people who are actually using them day-to-day. It is important that we discuss with our staff the possibility of changing a process and involve them in the implementation of the change. Changing a process, like changing people, requires commitment and buy-in on the part of those who will be required to use the changed process on a daily basis.

Change Management - Equipment

As it's name implies, this area deals with our equipment and software. Changing or adapting to meet our needs, getting rid of the old stuff and figuring our what we need to add to our arsenal of tools. It is important to note that this aspect of change management does not involve changing "people" rather, it is changing tools. It is our nature to use equipment until it wears out. This can be very costly to our business and also can cause a lot of problems when we do finally make a change.

One of my associates has owned their business for over 20 years, when they began the business, they had a program created in a state-of-the-art program and hired an individual to work on this program. I might add that it is a major piece of what makes this business profitable. Now, twenty years later, there is one person in the company who knows how to use this software. It is so outdated that it cannot be upgraded, but must be completely re-input to a different software program which will involve several weeks. Even if he wanted to implement change, he is unable to do so because he is stuck in the software and the one person who knows how to use it. It is very costly if you do not keep up with the changing market of available equipment. In the end, this is going to be extremely costly to the business and will result in their having to shut their doors for several weeks to get the information transferred to an updated program.

Equipment is one portion of change management that should be addressed continuously. It is the most critical piece of your business and will cost an incredible amount of money if not tended to regularly.

Implementing Change Management

When you decide to implement change, be sure to categorize the changes you want to make first. Once you have a visual of where the changes need to take place, it will be much easier to research and discuss the changes with the stakeholders who will be most affected by the changes.

If you are going to change people, remember that anyone affected by the change is a stakeholder. Don't wait to tell the staff about a change after the decision has been made that will affect them in an adverse way. Get buy-in and personal investment from all staff by first sharing the benefits of the change and gathering data to support the change. You win in two ways by doing this. The people who do not feel they can commit to the change will leave and thus will not sabotage the change before it can get off the ground. And the people who do make a personal investment will be excited about the change and drive it with the enthusiasm needed to make the change successful and sustainable.

If you are going to change processes, remember to include all stakeholders. In other words, include everyone who will be involved in making the new or changed process work. Whether you have to have representatives from groups or your business size is such that you can discuss the changes with each individual, be sure that you do discuss the change and get a verbal commitment from each person to help in driving the process change. This will save you a lot of time on the backend and will instill the kind of loyalty that you need from a high quality staff.

You staff will always appreciate updated equipment and software that will make their lives easier. The only caveat is that you will need to include in your software or equipment purchase, training for those staff who will be using the software. Don't get the equipment or software and assume that the staff will know how to use it. If someone on your staff does, great, you won't have to pay an outside person to train everyone else. But you need to be prepared to make the investment for training of your staff on the new equipment. This cost should be included in your yearly budget. It is not a one-time cost and definitely does not end. So you must be prepared and be vigilant of the changes in the industry related to your business and processes.

As long as you do not lump all three of these pieces of change management together, you will find that you can effectively implement change in all three areas with minimal disruption. It is important also that you think about the big picture your staff see as opposed to your own big picture vision. If these big pictures do not match, the key to successful implementation of change management is to create a big picture that both you and your staff share.

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Leadership Don'ts for Change Management Implementation

2008-04-12T00:42:00.000-07:00

Change management for any business, large or small, is very difficult. Not only are most leaders and employees entrenched in their roles and positions, but leaders often find themselves caught in a need to change, but no real direction or model to make the change.

One of the main fears in implementing change management for most people is that someone or a group is going to lose control and another person or group is going to gain control. This article will address some of the areas that, as a leader you will want to take into consideration when implementing change.

Vision and Objectives

Have a clear vision and objective for your group and communicate these often to your entire group. Whether you have a small staff or are a large corporation, your entire staff must have a personal investment in the change you are proposing and be given good reasons for why the changes are needed. Do not assume that the staff who are not seen regularly don't need to have a personal investment in your success, this is a huge mistake that many leaders who have lost the change battle have made. Remember, a clear vision and objectives that are understood and supported by every member of your team will greatly ensure your success in creating a positive change.

Books on Change Management

Books of any kind that increase your knowledge and understanding of processes are great. But don't make the fatal error of assuming that what is written in a particular book, or series of books, is "the way to go." Make sure that you have a clear understanding of your company's policies and procedures, that you understand and can function in the political environment of your company and that you have adapted the usable portions of the book or article to meet your needs.

Too often, I have seen leaders skim a book, like what they see and try to implement the suggested changes without giving enough consideration to our first and primary consideration. Without active participation and personal investment from your staff, the changes you try to implement will at best provide temporary change and at worst, cause a severe morale issue within your department or organization.

Maps

Books and articles, such as this one, are suggestions. They are not meant to be the last word on the subject discussed. A good book or article will make you think about how an idea may be adapted to your situation and assist in your success. If you read a book or article that states that if you follow a set of simple directions you will be successful, you are reading pure fiction. One size does not fit all and, you definitely should not put the "directions" into practice without some serious thought about how those suggestions are going to affect your staff.

I once saw a leader who read a set of books and tried to implement every item. Unfortunately the person had not read the part about buy-in and participation on the part of the leader. What resulted was a total lack of buy-in from the team and the entire department degenerated into a war zone with battles for control taking place daily. Where was the leader? Well, this one had thought that by following all of the books directions the department would take care of itself so this leader was absent. Unfortunately, a leader cannot lead vicariously from a distance. Leadership requires hands-on effort and change management requires even more time on-site and hand-on than you would normally expect.

Confidantes

It is unfortunate when change management is required that some leaders cannot assume the responsibility for implementing the change, but instead depend on an aide or confidante to attempt to force the change on staff or drive the project. This does not work. Leaders who are only leaders when things are going well are really not leaders, they are figure heads. Unfortunately, for the purposes of implementing change, figure heads are not effective.

We all need to have a confidante, someone to bounce ideas off of, to complain to, or vent about our challenges. The very worst thing you, as a leader, can do is to have a confidante in a position within your organization or in a position perceived by your staff to be one of authority. I once saw a confidante continually berate the leader of an organization. Staff were literally terrified of this person since the individual was perceived to have the ear of the leader and was in a position of authority. It was not only threatening to staff, but demoralizing and when highly qualified staff joined the organization they soon left because the leader was not leading and the confidante was not a leader but perceived as abusive.

As a leader you do not want to be perceived as someone who cannot make your own decisions, or stand by decisions once they are made. You also do not want to be perceived as someone who takes direction from your confidante and shares confidential information with that person. The result will be that you only hear about issues or concerns after they have gone to the level above you. It is one thing to let your staff know your vision and objectives and participate in the change management process. It is another thing to hide in the office while your confidante runs the show. For one thing, if the confidante could be a leader in an organization, they would be, don't put yourself in the position of being judged for the actions of your confidante because you have allowed that person to run amok.

If you are a leader who has a person in place that plays this role, it is vital that to save your organization you move that person as rapidly as possible to a different department or in some other way distance yourself from them. They will do an unbelievable amount of damage to not only your organization, but also your personal career.

Passion

If you are not passionate about what you are doing, or if you are not passionate about the change you are implementing then you should seriously rethink trying to implement change management. Your staff will reflect your passion. If you are not passionate about what you do it will not only be reflected from you to your staff, but also from your staff to your customers. Passion is something that we cannot "fake." You either love what you do or you don't. If you are in a position that is very comfortable and you can tolerate the job you have, you will have a lot of problems implementing any kind of change within your organization. Unfortunately, that kind of leader generally has staff who are very comfortable in their positions and tolerating their jobs as well. It is important that you take the pulse of your passion. If you have lost the passion for your position, then you need to find it and hold on to it to create any kind of environment that will be conducive to change.

If you are not passionate about what you do, and never have been, then you need to rethink your career goals. Perhaps it is time to look at other opportunities that will afford you the challenge you need as well as fulfill the passion that is so vital to being an outstanding leader. But whether you are in a position where you can make a career change or not, do not, allow another person to be the quasi-leader while you check out. Your staff will notice and they will not respond well.

Closing Thoughts

Changing is not easy for anyone. Managing change is even harder and requires a lot of effort on the part of a passionate leader who can provide both support and encouragement in a changing environment. If you are the type of leader that really doesn't lead, or you totally lack passion for what you do, it is important that you rethink Change Management even though it has become a catchy phrase and everybody seems to be doing it or talking about it. It will be a dis-service to your organization and to yourself not to implement change management in a healthy environment.

entrep

Change Management - Coping with Change

2008-04-12T00:07:00.000-07:00

Change Management is one of the most common reasons why organisations from the Private or Public Sectors approach Impact Executives for interim managers, who are skilled at handling the most complex of change management programmes, sometimes across different geographies.

Change can occur for lots of different reasons, from the challenges of growth that an organisation is facing, changing global markets, changes in strategy, technological change, competitive processes including M&A, customer pressures or shifting markets.

Research shows that organizations are undergoing major change on average every 3 years, whilst smaller changes are occurring almost continually, and there are certainly no signs in the current economic climate that this will alter. Whilst each change is unique, Interim Managers can introduce different models; the two frequently adopted are either Lewin and Beer or Shaw's model.

Using an interim change manager But at the end of the day an interim manager has seen it all before and can draw on their immense change management experience, bringing with them sound programme and project management experience. They will understand how to pre-empt stakeholder concerns and possess the leadership skills to effectively communicate, facilitate and coach those resistant to change. Hand-holding those who require it to cope with change, together with all the issues surrounding re-alignment, performance management and motivation. Above all, they will remember that everyone reacts differently to change and has differing fundamental needs that have to be met. Change often involves a loss and people go through a 'loss curve' where expectations need to be managed realistically and fears need to be addressed.

Change management will often involve interim managers playing a leading role in introducing new structures and systems. Above all a seasoned Interim Manager will deliver a change management programme on time and on budget.

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How to Compete to Other Stair Lift Manufacturers

2008-04-11T00:30:00.000-07:00

Many manufacturers invest big amounts of money to produce a product. They study carefully what are in demand product and very useful for the people. So they know that their products are hit on the market.

Stair lift are also called stair chair lifts which is a product that is very useful and helpful for those handicap people who have trouble in their legs. Their condition affects their physical capabilities to perform an activity like in climbing on a stair.

Stairs can found everywhere, in school, house, private and public places. Stair lift manufacturer are really smart because they know that those handicap people needed this product.

Now many stair lift manufacturers study on how they can compete to others manufacturers as well in order for their product to be more salable. They consider many things, which can help to produce a good quality stair lifts.

Factors in Competing with Other Stair Lift Manufacturers

Unique- being unique is important aspect in a product. So the consumer can easily know their product.

Design- the design of stair lift are available in two options namely: 1. Straight stair lift and 2. Curved stair lift

Versatility- is also important for many consumer of stair lift. It's a reason why many manufacturers offer a variety of colors of stairlift.

Safety- this very important for many consumers in buying a product. So many lift manufacturers offer a different safety option. Like the safety belt attach on chair lift.

Quality- The quality of product is major factor to become well known of their company name because all consumers seek for those products which has a high quality.

Power option- many stair lift manufacturers offer a battery option in using a stair lift. So the user can continue to use it even power outage occurs.

Accessories- Many manufacturers offer a variety of accessories, which can attach on their machines.

Manufacturer name- once a company becomes well known in their stairlift products. They can assure that many people in need of stair lifts will buy on them. So they do other things which can enhance the designs and quality of their product, it's a reason why innovation is really important on every product and not just stair lifts.

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Changeability - Can You Drive Your Business Without it?

2008-04-10T02:07:00.000-07:00

"...a systematic and institutional capacity forchange may now be a company's single most valuable asset." Michael Hammer, Beyond Reengineering

You may be in charge of your company but are you in control of it? How many times have you tried to manoeuvre your company in a particular direction to find that it is incapable of responding in either the right timescales or manner? Make no mistake, your ability to steer and move your company is only as good as its inherent ability to respond to the need to change, its business change capability. Would you accept a car that had a rubber steering column and did 0-60 in whatever time it felt like? Of course not, so why accept the equivalent in terms of business change management?

Take a good look at your own company. Operationally you may be doing a good job of servicing the customers. Management wise you've probably got a good team doing your planning and overseeing the day-to-day operations but how well are you coping with your changes? How many IT projects do you have on the go? How many reorganisations or office moves? What's the impact? What's the cost? What's the benefit? Who's doing what to whom and when? How do you know? Is it within your means to change the direction and momentum of that reengineering programme? Is change a necessary evil or an opportunity to succeed? It's probably a bit of both but one thing is for sure, it's not going to go away.

The Change Imperative

All businesses must change over time or else they will fail. The commercial landscape is constantly changing due to the interplay between the market, legislation, technology and competitors. Two things are needed to navigate that landscape: headlights and a responsive vehicle. New and small businesses tend to have the latter by default. They don't have the massive cultural, technical and customer legacy of larger, older companies to hold them back. The smarter of these businesses will have also invested in a good set of headlights. As they succeed they too accrue a legacy to slow them down, unless of course they have developed a business change capability in line with their growth.

When is a Change Not a Change?

So what is a business change capability? Let's start by defining a business change. All businesses can naturally cope with a limited amount of variation in the cases they handle. Shops can handle different basket sizes and mixes, manufacturers can produce customised products and hospitals can treat a variety of illnesses and injuries. The twin daily operational goals of efficiency and effectiveness produce a compromise position. Increases in efficiency tend to result in specialisation that in turn reduces the ability to handle variation whilst the drive to be effective requires an ability to handle all the variation being thrown at it by the chosen market. It's fast food versus a la carte service. At the end of the day a particular operational model is implemented. Any change to this operational model is a business change. A business change capability is the means to efficiently and effectively (there they are again) perform a business change.

House of Cards

That's OK then, all you need to do is improve the way you reorganise, implement systems or move office. If only it were that simple. Businesses are incredibly complex and sensitive organisms. They can swallow directorial dicta without blinking but change the coffee in the finance department and your invoices take three times as long to process. The operational model mentioned above is not as simple as an organisation chart or a flow diagram. It is multidimensional. Move location and you affect processes, roles, infrastructure and communications. Change a department's structure and you can impact jobs, systems, facilities, information flow and loyalties. Implementing a new system will change processes, skill-sets, responsibilities and data. Any potential change needs to be considered holistically to increase the chance of success (or for those whose cup is half empty, to reduce the risk of failure).

The Whole and Nothing but the Whole

Taking a holistic perspective of change brings with it a whole new mindset compared to some of the more traditional change efforts. No longer do you have 'system implementation' projects, you have 'process improvement through faster access to information and the removal of organisational boundaries' projects. No longer do you have 'reorganisation' initiatives, you have 'the clarification of roles and responsibilities through the clear ownership of processes and the implementation of supporting systems' initiatives. The days of dropping a new system or organisational structure from a great height into the operational business without making sure it fits must come to an end.

Turning on the Lights

Now that we have a holistic view of a business change we start to notice something. There appears to be more interference between the various change initiatives taking place in the company. Joe's new customer care processes rely on roles that Fred is removing in his web interface project. Helen's team-working initiative is being impacted by Sue's relocation project. The holistic viewpoint has not created these overlaps it has simply made them more visible. To complete the picture we need a common language across all the initiatives that enables these overlaps to be seen. That language comes in the form of business models.

Super Models

Business models provide a pictorial and textual description of a business. They act as a set of maps onto which change activity can be plotted. Only by using a common set of models across the business and for all change initiatives can we determine who is doing what to whom and where effort is duplicated or lacking. Without this, time, money and energy will be wasted regardless of the skill and best intentions of the participants. These models must cover the various perspectives required by the holistic view. This includes process, organisation, systems, data and location. 'That's all well and good' I hear you say 'but these models will always be out of date'. 'Not if you build their maintenance into your change processes', I reply. Which brings us nicely to the next topic: method.

Process Rules

Whether they like it or not all businesses have method or, if you prefer, processes. How good they are is another matter but all businesses have a way of working. They know what to do when certain events happen such as a customer placing an order. Similarly, in order to conduct business change we need a method or a set of processes. What do we do when a potential change is identified? What do we do when a change project needs to change scope or fails to deliver? How do we handle a new corporate vision? How do we handle a simple process improvement? How do we allocate resources across dozens of competing changes? A permanent business change capability needs to be able to answer these questions by providing a set of processes, roles and supporting systems capable of dealing with all of these situations. Such a capability has the added bonus of being self-improving. It is just another set of business processes etc that can be modeled and changed.

So What.....?

So what does all of this mean? It means that, with a set of repeatable processes that help define potential changes holistically, assess their impact and interdependencies, determine the optimum mix of integrated change initiatives across the company and maintain an accurate set of business models, you have some hope of driving your company through that mixture of mine-field and oil-field, the corporate landscape. Without it you'd better get used to that rubbery steering and sponge-like response ...but then again maybe it is time for a service.

entrep

Using Regulatory Compliance as a Catalyst For Change

2008-04-10T01:27:00.000-07:00

How can companies use the increasing demands for legislative and regulatory compliance to provide benefit? Whilst good governance, effective risk management and compliance management are undoubtedly a challenge for many businesses and can be viewed as onerous they can also be viewed in a more attractive light as a catalyst for change. If embraced correctly they can help organizations achieve greatly improved business performance in turn creating increased shareholder value.

Today there are many legislative, regulatory and best-practice standards affecting organizations and the number and complexity of these requirements is forecast to increase. From our perspective it is essential that organizations invest in GRC compliance management systems to provide a framework and tool for managing all the requirements of the regulations. Organizations need a system which will ensure that they both comply with the latest standards and can easily incorporate new demands at any time. Leading business analysts recommend a single integrated GRC system approach, to aid simple management and reduce costs.

The leading GRC management solutions should be able to addresses the business-critical issues, forming the foundation for a single corporate wide unified GRC platform. As with all software different applications will have their strengths. Some will be very industry specific others will be more flexible and provide the functionality to cover multiple compliance areas, including Sarbanes-Oxley, ISO 9000:2000, ISO 14000 and ISO 18000, Life Sciences, IS0 27001 and multiple industry specific compliance requirements.

The key benefits a Governance Risk and Compliance Management system should deliver are: Consistency delivered across the enterprise, by using Document Management for the enterprise wide output of information including everyday email systems ensuring enterprise wide adoption and adherence.

Sustainability, by offering organizations the framework to manage changes and new requirements as they occur, be they organizational changes, such as acquisitions or entry into new markets; or GRC management changes, such as new or amended legislation and standards. Efficiency by supporting efficient allocation of resources, as highest cost and risk areas are identified.

Accountability ensuring that corrective and preventative actions are managed and recorded throughout defined processes.

When selecting a GRC software solution look for the following features:

Policies, procedure and controls management

This functionality is important for the development, maintenance and communication of the policies and procedures to comply with regulations and standards.

Risk & control assessment

This functionality is required for the gathering of information for evaluation of adherence to standards.

Risk analytics

These provide the data for executive and management personnel to measure the overall state of risk and compliance

Investigations management

To centrally manage the recording of incidents and facilitate the development and implementation of corrective and preventative actions.

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