Super Jobs for You

One of the best educational experiences during my tenure in corporate America was the two-and-a-half years I spent crunching numbers for one of the largest consumer products companies in the country.

I learned nine important lessons that I still abide by today.

At that time in this particular company, the accounting department was a separate entity, responsible for accounts receivable (invoicing and collections) and accounts payable (paying all invoices in a timely manner).

At that time, in this particular company, accounting gathered the data and finance formatted in financial statements and reported to ownership in a monthly presentation. (The term “owner” or “ownership” refers to the leaders of the company).

The first thing I learned is that an owner cannot make good business decisions if the information isn’t accurate. In addition to having an internal auditor who constantly checked the validity of information accounting was collecting, outside auditors were brought in every year to challenge the system for integrity.

The second lesson is that an owner must have information in a timely manner. My first year in finance was a nightmare. Accounting had more excuses than journal entries for not getting things done on time.

The monthly meeting with the owner was postponed so often that by the time finance presented the information was outdated.

With a new controller, accounting provided information within five business days of the month’s end. I learned another lesson when I found out the reason things had been dragged out.

Accounting didn’t know what they were going to do with all that “extra time.” (With a new controller on board they found plenty of things to do.) The third lesson was that “work expands to fill the time available.”

The fourth lesson learned is that numbers by themselves meant nothing unless compared to something. When preparing the financials, we always included the results versus the previous year and the current year plan (both to-date and to year end).

This provided perspective to see how each operating division was performing.

Fifth, I learned that looking at the financial numbers from a 10,000-foot perspective wasn’t enough. While an owner needs to see the big picture (are we making money and where is it coming from?) the success of a business is truly in the details. But details tend to bore many owners.

Finance gathered data and analyzed for the owner the profitability of every sales person, customer, label, region, product, category, promotional offer and market segment.

This meant pulling accounting data and creating information so the owner could make better decisions. We didn’t overwhelm the owner; once a month we’d give him a short report that provide some perspective that we felt was needed or had been asked for.

During all of this, I learned a sixth lesson: Money leaks from organizations in ways no one even thinks about.

It wasn’t just inflated expense reports, excessive telephone use or using the copy machine for personal use; we uncovered vendors sending invoices and no one inside the company checking to see if the work had been done — one department was signing off on $500,000 worth of work every year without verification. Some customers had invoice discounts that had reduced their prices for years, long after the original competitive need had gone away.

While officially there was a purchase order system in place, that only applied to those areas tied to manufacturing. All other departments operated with ad hoc systems.

There were no checks and balances to speak of. If an invoice was submitted, accounting cut a check and the payment went out. It seemed that anyone was authorized to spend money and, well, they did.

The seventh lesson learned was that to be an effective owner, ample time needs to be spent reviewing the financials.

The condition of a company is not just in a single number. It is in a series of numbers, not necessarily on a single piece of paper.

To understand how an organization is performing, the owner needs time to be educated on what is being presented, grasp the implications of trends and create strategies and actions to change to achieve the goals.

This cannot happen in a five minute glance of the financial statements. In this particular company, the owner spent one full day per month in a complete financial review, with all senior managers present. Finance presented the results.

There was never a question of the validity of the numbers because they were correct and current. Each senior manager was held responsible for the financial results of their division and these group meetings were not always pleasant, especially if you were running a division not making the numbers.

The eighth lesson was that the owner and senior managers left those meetings with a renewed sense of urgency and focus. That motivation and energy was immediately transferred to everyone that could impact the numbers. In my tenure, the company doubled in size, all the while keeping the employee count at almost the same number.

The revenue per employee almost doubled in my tenure, with no growth in overhead, something that not many organizations can boast of.

That was the final lesson: Every organization and every employee is capable of much more than we believe.

Super Job Information gives information on how to get a job and how to hire good people. If you are looking for Zinc Die Casting Jobs look at this website. This Zinc Die Casting Blog will give you more information you can use for zinc castings.

Imagine that your life as a business owner is going just fine. Clients are buying and paying, your employees are happy and you’ve got money in the bank for rainy days and opportunities.

One morning a letter arrives from the Business Software Alliance (BSA) accusing your firm of possessing and using software that was not purchased. The letter goes on to remind you that this is a federal crime, punishable with a fine of up to $250,000 and imprisonment of up to five years. The BSA seeks $2 million to settle the alleged actions that some of your employees were using software on your company’s computers they had no right to use.

It was Keith McFarland who received the letter, and that was only the beginning of his matriculation at what he calls “Tough Times U.” In his book The Breakthrough Company: How Everyday Companies Become Extraordinary Performers, McFarland explains that the software issue was quickly settled and a badly needed round of venture capital funding was secured only to have the company deal with the dramatic loss of revenue from their single biggest client. His company, Collectech, had hit some very hard times.

Some companies close their doors when difficulties arise. McFarland says that “… when companies with character face off against tough times, giving in or giving up is not an option. Rather, they embrace those moments as opportunities for learning and improvement.”

What did McFarland learn? To begin, he says that tough times force those in charge to face facts. In good times, the attitude is all too often that if it something isn’t broke, why fix it? Change is resisted because no one sees the need to improve or learn—just stay the course. Taking a long, hard look in the mirror is what an owner needs to do rather than hide from bad news.

Second, tough times usually separate employees and vendors into two camps: those that are willing to fight for survival and those that run. Some will head for the exits; others will hide and still others will ask “What can I do to help?” Those that step up are renewing their commitment to the company, to the owner and to each other. McFarland said he put those who wanted to fight to the best possible use and he rewarded them when things got better.

Third, get to the root causes of the problems. In the BSA situation, apparently there was no clear company policy on the use of software and no audit procedure in place to monitor ongoing software use. The firm simply expected all employees to know and honor the law. When Collectech lost their largest single customer, it was a combination of laziness and lack of inertia that got them into the almost deadly trap of “revenue concentration” for the bulk of sales, cash flow and profits.

Fourth, seek outside guidance. Owners should tap into trusted advisors. Many belong to formal peer groups and all should have attorneys and accountants; there should be nothing but full disclosure when describing what the company is going through. When advice is given, there should be nothing but openness to what is being counseled; set aside ego and defensiveness and listen with the spirit that the advice is given: with genuine interest in helping to make things better.

Fifth, over communicate. The natural response to facing tough times for most is to hunker down and have a “bunker mentality.” When employees and vendors do not hear from those that lead, they are left to their own devices to create scenarios far worse than what is really happened, is happening and is going to happen. McFarland says leaders need to take charge and tell people what the plan is, what their role it and what the expectations are.

Finally, do what needs to be done, however unpleasant. McFarland recommends not dragging things out any longer than they need to be. If vendors will be paid late, tell them. If employees will have hours cut, wages cut and some will lose their jobs, tell them and then do what needs to be done. Being part of an organization that is in trouble but can be turned around is no fun; however, the longer the owner waits to deal with the unpleasantness of the present is just more delay to getting to a better future.

McFarland paid a lot of tuition at Tough Times U, including reducing the number of employees from 390 to 90 and shifting or eliminating eight of the top eleven executives. It was both the low point in his CEO role and a highpoint. He blames himself and the others on his executive team for becoming complacent, impacting 300 individuals and their families. However, he also learned that given good leadership, people will rise to the occasion.

Eventually, most organizations hit tough times. McFarland’s eventual graduation from Tough Times U was not the end of his education; it was only the beginning, a commencement. He knew that to avoid repeating his “real world college” courses again he was going to have to avoid the complacency and inertia that got Collectech in the first place.

What are you doing to avoid complacency and inertia in your organization?

Super Jobs For You gives information on how to get a job and how to hire good people. If you are looking for a Die Casting Job look at this website. This Die Casting Blog will give you more information you can use for manufacturing.

Vacations and long weekends are behind us; the economy remains a challenge; now is an excellent time to get refocused and reenergized, regardless of company size, industry or success to date.

“Having lost sight of the objective, we redoubled our efforts” is a quote from Pogo, the cartoon character and this is, unfortunately, what too many organizations are doing these days. Working harder is great, but to what end?

The late Peter Drucker, in conjunction with best selling authors Jim Collins, Jack Welch and Rick Warren have coauthored The Five Most Important Questions You Will Ever Ask About Your Organization, available at Amazon.

My recommendation is that their five questions be the basis for an hour long meeting of the senior managers in your organization. Allocate just 12 minutes per question and in an hour, not only will considerable discussion ensue but the resulting decisions will energize and motivate the entire company to move forward with clarity and focus.

The first question is “Who is our customer?” What a simple question! The answer may be more complicated because too many companies struggle to make sure that every possible type or variation of potential customer is included in the definition. In fact, eliminating possible customer types makes the job of selling, producing, servicing and delivering that much easier. Getting crystal clear about whom the organization’s customer is can improve focus, but for more reasons that immediately come to mind.

The most important reason for identifying the customer is to eliminate the distraction and misallocation of resources. The old saying “when you chase two rabbits, both get away” is appropriate. Improving the definition of who your customer is, will, over time, increase profitability.

The second question is “What does the customer value?” It is the rare company that knows. Those organizations that understand what the customer values and then provide what is asked flourish. Those that don’t know will remain at a competitive disadvantage until they find out what is wanted, needed and sought after by their customer.

The easiest way to identify what it is that the customer seeks in terms of value is to spend time with them. While time is at a premium, customers will invest time with suppliers that have a track record of performance. Taking time to learn what your best customers want is a rare and valuable commodity and the information gathered can be used to secure more customers.

The third question is “What is our mission?” Many companies have a mission statement, which answers some critical questions such as “what do we do here and why are we doing it?” but many do not. Developing a mission statement is critical for focus and decision making and provides tremendous clarity for every employee. If you want engagement and buy in, first develop a company mission statement and then take the time to create one for each department. One of the easiest ways to do this is to use Laurie Beth Jones book The Path.

The fourth question is “What is our plan?” Do we have a strategy? Do we have goals? Can those goals be measured? Who will be responsible for executing each portion of the plan? When will this be done? What do we need to execute the plan? What do the financials look like?

I’ve been involved in many companies that operate without a plan. One of the biggest problems that surface in companies without a plan is that they almost always have too many people on the payroll.

Instead of working to execute a well thought-out plan focused on results and performance, the organization focuses on effort. So, when someone needs more work done, they head to the boss to request another person to be hired. No mind is paid to what the person will accomplish as it relates to and fits into the plan, because there is no plan. By the way, effort is never measured, because everyone thinks they are working hard; ask any employee if you doubt my word!

A great basic tool to get started is available at The One Page Business Plan.

This leads to the final question, “What are our results?” This is a tough question to answer if goals aren’t set as part of the planning process.

Most organizations do a pretty good job at setting sales or revenue goals. It’s what happens below that line (expenses, including payroll) where things are murky. And that is where the cost of those extra people appears on the profit and loss statement. Since they can’t be tied to any particular result, they tend to stay on the payroll, to be joined by others over time.

Years ago I watched a television show that started the same way each week, with a man listening to a tape recorder. The voice on the tape always said “Your mission, should you choose to accept it…” and once the instructions were completed, the tape essentially went up in smoke. The show was an hour long; the “Mission Impossible” team was always successful.

Take these five questions (a mere 21 words), give yourself a single hour and invest it in becoming a more successful organization. I guarantee that no one on your team will be captured or killed during the hour and there will be no reason for anyone to disavow your existence. I do guarantee that your organization will be better off for having invested in addressing these questions, whether it be for validation or for changing how and who you do business with.

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I did some re-reading of the best selling book “Good to Great” by Jim Collins. This was triggered by a recent interview I read of former president Jimmy Carter in the press.

Carter said that whether he (John McCain) was asked about religion, domestic or foreign affairs, every answer came back to McCain’s 5½ years as a POW. “John McCain was able to weave in his experience in a Vietnam prison camp, no matter what the question was,” Carter said.

In Collins book he writes of the Stockdale Paradox, which refers to Admiral Jim Stockdale, the highest ranking officer captured and held as a prisoner in North Vietnam from 1965 to 1973.

The Stockdale Paradox as developed by Collins states that “you must retain faith that you will prevail in the end, regardless of the difficulties and, at the same time, confront the most brutal facts of your current reality, whatever they might be. “

Many years later, when being interviewed by Collins for “Good to Great,” Admiral Stockdale was quoted as saying “I never lost faith in the end of the story. I never doubted not only that I would get out, but also that I would prevail in the end, and turn the experience into the defining event of my life, which in retrospect, I would not trade.”

Collins thought for a long time that the Stockdale Paradox applied only to individuals. Later, when Collins told his research staff what he discussed and learned from Admiral Stockdale, his staff had a big “ah-hah!” As potential Good to Great companies were being vetted, each of the researchers ran across the same essential findings, which was that the successful companies, unknowingly, adhered to the Stockdale Paradox.

How companies deal with the defining events that challenge their very existence becomes the prism from which they see and operate in, similar to what we do as individuals.

Legend has it that Herb Kelleher and one of his law clients, Texas businessman Rollin King, created the concept that later became Southwest Airlines on a cocktail napkin in a restaurant.

Most people who have heard the story understand that the napkin had three dots on it, representing the cities of Dallas, Houston and San Antonio, and that Kelleher and King would have their planes fly in turn to each vertex (city). They felt confident that they could make the business work, that they could prevail and build an airline that did things differently.

While they were confident in the long term viability and success of the company, they had some issues to deal with. One of them, not well remembered or even mentioned much to the outside world, was that that Southwest spent a year fighting legal challenges from competitors who did not want Southwest to take that first flight.

The legal challenge and victory over their competition, is likely the prism which the airline and its people continue to operate even now, decades after that fight. I don’t mean to suggest that there is a legal challenge around every corner, or that people are paranoid. I do believe that the company is driven by the need to succeed due directly to their difficult start.

Southwest Airlines is not only the envy of its industry from a service, profitability and human relations perspective, it has a business model that many companies in other industries seek to emulate.

Part of that competitive spirit is the adherence to the simplicity of the business, as demonstrated on that napkin. They stay focused on one main thing, which is to get and keep planes in the air, because that is how they satisfy customers and that is how they make money.

Yearend results for 2007 marked Southwest’s 35th consecutive year of profitability, unheard of in the industry; actually, unheard of in almost any industry. Southwest operates more than 3,400 flights a day coast to coast, making it the largest U.S. carrier based on domestic departures.

Every company, like every individual, has at least one defining event, perhaps more. I worked for a company about 20 years ago that, sadly, had its defining event when it paid employees with cashier’s checks.

I also worked for a company that was 100 years old, hit difficult times and made a payroll when the president got a second mortgage on his family home. In the first case, the company went into bankruptcy, in the second, the company grew to a billion dollars.

Guess which company still has product on the supermarket shelf?

Super Job Information gives information on how to get a job and how to hire good people. If you are looking for Zinc Die Casting Jobs look at this website. This Zinc Die Casting Blog will give you more information you can use for zinc castings.