Posts Tagged ‘management’
Wednesday, March 10th, 2010
It has been said, “We’d better pay attention to the future because that’s where we’re going to spend the rest of our lives.”
Success in any business is a clear picture of where the business is going and even though there is technically no “end,” What will the end result look like? The propensity of most management teams right now is to focus on the present, to put out fires, and manage by crisis. With all of the changes in the business environment of the last 24 months, that propensity is understandable; however, crisis management doesn’t prepare your organization for future growth and opportunity. Planning your business’s future is no longer a discretionary decision. If you want to control the destiny of your business then you need to create it!
The preparation of a strategic plan is a multi-step process encompassing vision, mission, objectives, values, goals, and specific action steps. The process we use successfully with clients can be boiled down into these stages:
Stage 1. Visioning
A company’s vision is a statement of potential. A vision statement is a description of what your organization wants to become.
Stage 2. Strategic Thinking and Planning
The term strategic thinking can be defined as the process that determines the future direction of the organization. This process addresses all aspects of your business and its resources. Its foundation is a strategic thinking process and its conclusion is a logical and well thought out plan that when implemented will ensure the organization’s success.
Stage 3. Business Planning
Business planning is the process that actualizes the strategic plan. During the business planning process, your mission is crystallized into specific goal categories. These categories then become actionable through goals and actions steps. If there are multiple departments each will have a mission and business plan which is their contribution to the organization’s mission. The progressive achievement of the mission or all of the departmental missions will propel the entire organization toward the realization of its vision.
Stage 4. Implementing the Plan
The real key to the success of this process is action. Vision alone does not ensure success. Even the most comprehensive plan will not ensure success without action steps and measurement. Without action steps, time frames, and accountability the process is just a mental exercise that, while it may be stimulating is meaningless or a waste of time and energy.
Stage 5. Review and Continuous Improvement
Without measurement, it is difficult to see progress, and it is impossible to manage a business. Creating a dashboard for the communication of goals and objectives is critical for measurement. Everything relies on execution. Success requires continued learning and improvement. There is always something you can do to gain control over any situation. There is always something we can learn to become better!
Take a moment and be honest. Do you have an actionable strategic plan for your business? Do you know where you want to take your business one year from now, five years from now? Do you want to learn how to better manage the inevitable fires while focusing on growth opportunities? Make the commitment with your management team to develop a strategic plan now as your future results depend on it!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in helping businesses achieve sustainable results through management consulting, strategic planning, leadership development, executive coaching, and youth leadership. For information on creating an actionable strategic plan visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: action steps, business planning, continuous improvement, crisis management, goals, management, measurable results, mission, RAC, resource associates, Resource Associates Corporation, strategic plan, values, Vision
Posted in Uncategorized | No Comments »
Thursday, January 14th, 2010
As a business we help companies adopt and implement customer loyalty as a management strategy, and we help employees inside those companies understand how they impact the success of loyal customer relationships. Therefore, I am acutely aware of service interactions—the good and the bad.
After my early gym routine this morning, I had a window of time to run across the street to the grocery store. It was approximately 7:20 a.m. and my goal was to pick up some necessities for the week. Based on how the store is laid out, my first stop was the deli. As I waited, because there was no one currently staffing the deli, I observed five staff members in the bakery, the produce section, and the floral department taking inventory, stocking produce, rearranging displays, and discussing certain NFL teams and their playoff status based on yesterday’s games. As I stood there patiently waiting to be helped, none of the five folks who could physically see me thought it important to go find someone to fill my deli order. Their priority was stocking and rearranging. After about five minutes a young lady appeared. She did not say good morning, Happy New Year, or make eye contact. She proceeded to put on her sanitary gloves and asked, “What can I get for you?” She filled my order and sent me on my way with a thank you.
The essence of customer loyalty is all about the points of connection—every single touch point your employees have with every customer. In my seven-minute deli experience there were at least 15 points of connection that were missed or poorly executed. Five staff members watched me wait in front of the deli counter and none of them took the time to acknowledge my existence or offer to find someone to assist me. In my opinion, this earns double demerits because they could clearly see I wanted something from the deli and did nothing about it. (10 points of connection missed). The lady working in the floral area took the time to talk with a bread vendor in lieu of offering assistance (1 point missed).
When the young deli worker appeared there was no eye contact and there was no greeting (2 points missed). Her attitude was lackluster at best. She really did not appear pleased to be at work serving a customer (1 point missed). As she was completing my order another customer appeared and her opening line was “What can I get for you?” with no additional pleasantries (another point missed).
Points of connection define the customer experience and determine how a customer rates their service and how they ultimately rate your business. Your business is dead without customers. Adopting customer loyalty as a management strategy is critical to the success of business and industry in our ever-growing service environment. If you want to make a significant difference in the results of your business for 2010, I would strongly encourage you look how customer loyalty is defined in your organization. I am confident that the five staff people watching me wait for assistance are not bad employees and they were genuinely “doing their job.” However, I am also confident store management does not embrace customer loyalty practices or my early morning shopping experience would have been quite different. Unfortunately, my experience with the deli that morning is not my first.
Why do I continue to shop there? It is the closest store to my home and office. However, next closest store is only about 3 miles further and I have decided to break my habit and investigate the other store. If their services prove to be better my current store will lose a 5-year, weekly customer. By my conservative calculations that nets approximately $20,800 worth of business.
Take a serious look at your organization’s customer loyalty standards, practices, and measurements. No business in today’s ever changing economic world can afford to lose a customer because of non-existent or inappropriate points of connection.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, strategic planning, leadership development, executive coaching, and youth leadership. For more information visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: attitude, Customer Loyalty, Customer Satisfaction, Customer Service, management, points of connection
Posted in Customer Loyalty | 3 Comments »
Wednesday, January 6th, 2010
We talked in a recent post about making good decisions and how our attitudes and habits play a significant role in the decisions we make daily. We are bombarded with many decisions every day, and thankfully those decisions require little thought as we are relying on past habits and experiences to make the right decision at that moment.
At times, however, the problem is a bit larger or the decision is more complex. It is in these instances that a conscious and objective decision-making process is needed.
In these cases there are two qualities that will lead to more effective decisions: logic and an open mind. When you approach a problem, strip your mind of preconceived opinions and prejudices. Logically assemble and learn the facts of the situation. Webster defines logic as “the science of formal reasoning; the unavoidable cause and effect relationship between events to a particular conclusion.” By understanding the cause and effect relationship involved in a situation, you can formulate solutions that deal with the root of the problem, not just the results. By keeping an open mind, you can creatively develop many alternatives from which to choose when making your decision. The logical, open-minded approach to making decisions involves the following process:
- Identify and define the problem: You must clearly define the problem before you can solve it. Problems that remain vague resist resolution and create anxiety. Hazy, vague issues are impossible to deal with, and they often create a periphery of new problems. Crystallize the issues so you can deal with them one at time.
- Gather and analyze information: You must have accurate information to solve issues appropriately. If in your haste to find a solution you short-change this part of the process, you can create unnecessary delays and unintended results. The more information you gather about a particular issue, the more likely you will be able to reach a satisfactory decision.
- Development alternative solutions: If a solution to an issue surfaces quickly, it’s tempting to simply do it. The first solution you come up with, although acceptable, may not be the best. Take time to develop alternative solutions even when you don’t think you need them and be creative.
- Choose the best alternative: Most problems have several acceptable solutions. Picking the best one becomes a matter of degree. Narrow your choices down to a few of the best alternatives by evaluating your options. Consider how the solutions aligns with your goals, how it affects costs, what time is required, what are the risks, what do others you trust think, etc. After evaluating all alternatives, choose the one that best solves your problem.
- Take action: Now that you have weighed all of your alternatives and have chosen the best course of action, it’s time to act.
- Evaluate the decision: Finally, you should structure in-progress reviews and a final evaluation in order to gauge progress and evaluate final results.
Implementing these steps can be instrumental in breaking large challenges, issues, or problems into manageable steps. Don’t let “life” overwhelm you. Using this proven decision making model will enhance your confidence. Your personal and professional success is dependent upon your ability to make sound decisions in an appropriate time frame. May 2010 bring you success and happiness!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, strategic planning, leadership development, executive coaching, and youth leadership. For more information visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: decisions, Effective Decision Making, Leadership, Logic, management, open mind, Resource Associates Corporation
Posted in Decision Making | 2 Comments »
Wednesday, December 30th, 2009
Successful leaders are individuals with high levels of personal power. Understanding the difference between personal power and granted authority is a significant distinction. Many people have the tendency to use the words authority and power interchangeably; however, these terms refer to two very different aspects of leadership.
Authority is the right granted from a person or organization to another to represent or to act in a specified way. For example, a CEO of a company is given the authority by the Board of Directors to run the company. In turn, the CEO places managers in positions of authority over the various divisions, business units, or departments of the organization.
Power is the capacity or ability to direct or influence the behavior of others. Former United States President, Dwight D. Eisenhower, captured the essence of this definition when he said, “Leadership is the art of getting someone else to do something you want done because he wants to do it.” Everyone possesses the potential to be powerful. Power is a personal talent that you can develop and use to achieve worthwhile goals. It does not depend upon title, rank, position, or authority. It’s simply the ability to motivate others to take specific actions.
Authority is granted but always has defined limits. Power is earned and can be limitless. Authority is derived through the position. Power is derived from an individual’s personal influence, which increases effectiveness. Two leaders in exactly the same position of authority can and will have different amounts of power. A person can possess a great deal of power and absolutely no authority. Conversely, someone can have authority and absolutely no power. Leaders who have not earned sufficient power sometimes make the mistake of trying to influence others by overexerting their authority. But excessive use of authority can cause employees to rebel in much the same way that children rebel against restrictive parents.
Effective leaders recognize authority as a valuable and necessary tool when used judiciously, and they invoke their authority extremely sparingly. Instead, they use the power they have earned to create a climate of trust, cooperation, and accomplishment in which people are positively motivated to pursue their own goals and the goals of the organization. In fact, the amount of responsibility you take on is directly linked to the amount of power and influence you possess. One way to further increase your personal power is to seek additional responsibility.
To be a successful leader, you must always be yourself. Be intentional about shaping your life according to your values and priorities. Trust yourself, believe in yourself, and be honest with yourself. Others will then trust, believe, and be honest with you. It is this foundation which enhances personal power. Excellent team leaders establish healthy open relationships with others. They foster mutual commitment in the pursuit of shared goals. Effective leadership is founded on cooperation never coercion.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, strategic planning, leadership development, executive coaching, and youth leadership. For more information visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: Authority, Eisenhauer, Leadership, management, power
Posted in Leadership | 5 Comments »
Friday, December 4th, 2009
Is your business stuck?
Many businesses of many sizes have spent the last year dealing with the challenging times. Some businesses have failed, many are still floundering, and many businesses are just stuck. Often when we are defensively forced to deal with outside forces we get so ingrained in our defensive mechanics that we get stuck in that mind set. Defensive mechanics will not lead to positive growth and/or results. There is no question the business world is in the process of creating a new normal. The question becomes how is your business creating and defining its new normal? What will positive growth and future success look like for your company?
It has been our experience that creating a new normal requires going back to basics. Here are some thoughts to consider that have helped our clients get unstuck:
- What is the basic foundation and business philosophy of your company?
- Why are you in business?
The answer to these two questions will reconfirm or reestablish the reasons your business exists and provide a much needed guidepost. After you reconfirm or reestablish the reasons your business exists take the time to review your vision and values.
Tom Peters said, “A clear vision of the desired future state of the organization is an essential component of high performance.” Creating a new normal requires reevaluating your vision of the desired state. Based on the changes in the current business climate, what will your organization look like in the future? The vision statement provides focus for everyone in the organization. An understanding of the vision provides the foundation for day-to-day decisions. A vision energizes action, toward a future that is better than today. How does your company’s vision need to change? There is one universal rule in success: you will never be greater than the vision that guides you. Perhaps for your organization, getting unstuck requires revitalizing your company’s vision.
In addition to a clear vision a successful company needs to communicate values and principles by which they do business. Values represent your philosophy for achieving success and they serve as important guidelines for everyday behaviors and decisions. How have recent changes in the business world impacted your values and principles? What does your organization believe to be true and non-negotiable today? As Peter Drucker said, “The purpose of an organization is to attract and maintain customers in order to generate profits and viability.” Issues such as current customer’s expectations, product quality, and service should be taken into consideration in your values statement. Your values should take into account how you feel about and the value you place upon your customers, your employees, your suppliers and vendors, stockholders, the community and all others with whom you interact and do business.
Re-evaluating your vision and values are the first two steps to revisiting your strategic direction. We have found in these ever-changing times that strategic planning is no longer a discretionary decision, and it provides the impetus to getting unstuck. Create your business’s new normal by re-evaluating your strategic plan and implementing the critical success factors that will propel your business forward. There is a very high likelihood that what you are doing today and what you did yesterday will not produce the results you want to see tomorrow.
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, strategic planning, leadership development, executive coaching, and youth leadership. For more information visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: business, management, new normal, Peter Drucker, Strategic Planning, success, Tom Peters, values, Vision
Posted in Business Management | 4 Comments »
Friday, October 30th, 2009
Are you inspired? Does your life currently hold within it surpassing brilliance or excellence? Are your dreams becoming a reality?
All accomplishments begin with an idea, a seed, or a dream. It is impossible to emphasize strongly enough the power of a creative and uninhibited imagination. Every achievement has emerged as the end result of a dream, a vision, or what may even have seemed to be a far-fetched idea. When is the last time you exercised your inspiration?
It is so easy to get caught up in the function of business and life that often times we forget to stop and think about what we are really working for or toward. Our daily routine becomes just that … a routine. We get used to going through the motions, and our dreams and inspirations start to take a back seat to the job, the career, and the family—and then slowly slip away into oblivion.
Have you ever created a Dream Inventory©. A Dream Inventory is a continuous, life-long list of ideas and dreams no matter how extravagant or insignificant. It is a list that contains everything you ever wanted to do, to have, to be, and to become. It is an exercise that allows you to take off the blinders of probability and possibility and throws out the filters of whether you need it, deserve it, or are worth it. It is lifelong exercise that gives you permission to exercise your inspiration.
Create a personal Dream Inventory and fill it in spontaneously. It will later provide clues to the kind of things that will motivate you. Many of the dreams that you put on your inventory may seem totally out of reach and that is okay. As you begin to grow and achieve, some of your dreams will become goals and some never will. Keep in mind that this is an exercise of dreaming and inspiration so give no thought to your ability to obtain the dreams. Many of your dreams may seem too small or insignificant to list in your inventory but list them anyway. There is no such thing as a small dream. If a dream has value to you, it is important.
I filled out my first Dream Inventory in 1985 when I started working for my current firm. In 1996 as I was updating my Dream Inventory, I listed I wanted to become President of my current firm. I listed it with really no thought as to a specific action plan, but I knew that role was what I was inspired to become. In 2002, I became President of the firm and remain in that role today.
The power of capturing your dreams and inspiration is life altering. The power of capturing an idea in writing, placing the thought in your subconscious, and letting your subconscious work on the action plan is a science we are only beginning to understand. What we do know is many inspired individuals throughout history have harnessed the power of dreaming to create surpassing brilliance and excellence! I challenge you to create your Dream Inventory today!
Tammy A.S. Kohl is President of Resource Associates Corporation. For over 30 years, RAC has specialized in business and management consulting, leadership development, executive coaching, and youth leadership. For more information visit www.resourceassociatescorp.com or contact RAC directly at 800.799.6227.
Tags: business, Dream Inventory, dreams, imagination, Inspiration, Leadership, management, motivation, subconscious, success
Posted in Goal Planning, Personal Development | 2 Comments »
Wednesday, September 23rd, 2009
“Managers do not motivate employees by giving them higher wages, more benefits, or new status symbols. Rather, employees are motivated by their own inherent need to succeed at a challenging task. The manager’s job, then is not to motivate people to get them to achieve; instead, the manager should provide opportunities for people to achieve, so they will become motivated.” – Frederick Herzberg.
So what does this theory have to do with process improvement? When done properly, motivation is a core component to process improvement, total quality, 6 Sigma, lean, or whatever other description one uses to express this philosophy that according to W. Edwards Deming causes 85% to 90% of an organization’s problems. It has been proven time and time again that “bad processes will always squash good people.”
Typically employees do not go to work with the preconceived attitude of, “I can’t wait to get to work to see what I can screw up today.” Most employees are committed to doing a good job and providing results. Very often, however, when management does not see the desired or forecasted outcomes, they begin the search for the bad apples. “Who caused this to happen, rather than what caused this to happen?”
It is our experience that the “what caused this to happen” i.e. a bad process, is more often the actual cause of bad outcomes rather than “who caused it to happen?”. “What caused this to happen” is typically a defective or ineffective process. In the classic sense a process is the series of interrelated steps it takes to complete a task, and this applies to both business and manufacturing processes. Management designs the majority of a company’s processes and employees are instructed and trained to follow them – good or bad. If the process is good then the outcomes are good. However, if there is waste and variation built into the process the outcomes will neither be consistent nor predictable. This lack of predictability causes frustration at all levels within an organization but the frustrations are often magnified at the employee level, because they live within the processes daily. As such, employees know there is a better way to do things, but management doesn’t allow or encourage them to find it. Even if permission and encouragement is given, it is important that it be done correctly. Without the proper understanding and knowledge of process improvement tools to guide the discussions, greater frustration is created during the analysis, the decision process and the improvement phases.
A more effective approach is to provide everyone with the training necessary to best understand and utilize proven process improvement tools and to create a structure to allow employees to find and eliminate variation and/or waste in an existing process. Giving employees this opportunity is one way to operationalize Frederick Herzberg’s above definition of motivation. Highly motivated employees who have been given the opportunity to be involved in process improvement will generate accelerated results for the organization allowing them to run circles around their competition. Additionally, the results of process improvement when identified and implemented by the employees who are actually doing the work achieve quick, bottom-line economic gains, greater employee loyalty with higher moral, and more satisfied customers who will be loyal to your products or services.
Tags: bad processes, Edwards Deming, lean, management, morale, motivation, Process Improvement, six sigma, theory
Posted in Process Improvement | 1 Comment »
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