Business Organizational Senses

Humans have the five senses of sight, hearing, touch, taste, and smell. When visiting the doctor, one of the tests performed is to be sure that these senses are in order. It should be no different for those in charge of a business. Yet this rarely occurs. So, at this midpoint of the year, take a few moments to diagnose the five senses of your organization, and write a prescription for improvement if needed.

A sense of purpose
Amazingly, not all that many organizations have a mission and vision that make sense. While the words might exist somewhere, they are often very vague and useless, or are so generic as to render them worthless. Unfortunately, many owners have no sense of what they are doing (mission), or where they are trying to go (vision). Look no further than FedEx for a company that knows not only what they do, but what they are striving to become. Any organization that was created as a college term paper, and is successful as FedEx can only be a shining example of what every business, regardless of industry, is capable of achieving. Even the smallest of organizations should have a mission and a vision that is clear, shows intent and makes sense.

A sense of organization
Any company of size has an organizational structure that includes reporting relationships, in other words, an organizational chart. To do without would be chaotic. Yet, in many businesses there may be employees that do not know who they report to.

Not enough organizations have written job descriptions for each position, identifying key tasks and related results. In some companies job descriptions may not exist, because the owner thinks that the employee should do “whatever I tell them to.” This is dangerous from many perspectives. Having something tangible for the employee to hold, read and refer to gives a sense of security and understanding where they fit into the greater intent and purpose of the organization.

Some organizations have written performance evaluations that allow for comments from the supervisor to those supervised and vice-versa. This process is not about giving or getting raises. A performance evaluation is about getting and making certain that employees understand what is expected of them and measuring performance to that standard. This process usually does not occur as often as it should. In some cases, it never happens.

A sense of order
A number of companies do things literally by the seat of their pants. The owner usually does not know what is going to happen from one day to the next. The business is not in control of its own destiny; it is in the hands of others.

Successful companies have processes and procedures for everything. Far too many owners refer to this as bureaucracy. However, these systems serve a valuable purpose: to efficiently run the business. A classic example of this is McDonalds. When Ray Kroc bought the hamburger chain, he did not think that the company sold great food. He saw and fine-tuned a system that allows you to get the same quality product at any location. When order is in place, and the process is teachable, then the firm starts to build a foundation for growth.

A sense of financial clarity
Flourishing organizations set realistic financial goals each year, quarter by quarter, month by month. These are measured and changes in strategy and tactics take place as needed. The focus is on profit and loss statements by product line, by customer, by state, by center, by sales representative, by broker, by office, by whatever measurements are needed to understand where the opportunities and problems are. Balance sheets (assets, liabilities, and equity) are measured at the plant, division, and corporate levels. Cash flow is projected daily, weekly, monthly and yearly.

Firms that are less successful manage their entire financial system by measuring the balance in their checking account, usually accomplished by calling the bank. Profit and loss statements are completed at the end of the year, when taxes are done. Balance sheets, unless prepared by the tax advisor, are nonexistent. Clarity for this type of organization comes by looking backward, not forward.

A sense of the long term
Thriving businesses have the intention of being in business for the long term. Decades are spoken of as if they are tomorrow, because for this kind of organization, it is just around the corner. They tend to think long term, but they act in the short term. Decisions are made today for three, five, ten and twenty years into the future, then executed so that the intention becomes reality.

Less successful firms tend to think and act short term. It is a shame, but many cannot see the forest because they are so busy looking at the tree right in front of them. They do not plan for more than a week or so in the future. Sometimes not even that far ahead!

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Lessons learned on the Job

I have been working since I was thirteen years old. My first job was stocking shelves at a local grocery store during evenings and on weekends. The store was a half mile from my home and I rode my bicycle there and back except when it was raining. I learned more than a few lessons from that first job of gainful, paid employment and I would like to share three of those. I think that they make the leap of years and generations and can be applied to anyone in business today.

While I did not recognize it at the time, that first job catapulted my emerging pattern of success to a whole new level. I had always been a good, not great, student, and this employment opportunity worked magic on more than just my work habits; it became a way of thinking and acting in every aspect of life. Success is a relative term; after all, when you are 13 years old just having a “real job” means that you are a success when compared to your peers. But success can, and did carry over into hobbies, school, sports, religion, relationships, and interests. That small budding seed that I had within me grew through the years into a pattern of success that has long since continued in my life. www.BrianTracy.com (read or see his similar story in “Many Miles To Go)

What I learned is that creating a pattern of success is possible for anyone. Just because individuals may not have had the opportunity to develop that habit doesn’t mean it isn’t possible. How many of us know people that we refer to “late bloomers” or recognize the successes of those who don’t do their best work until they are older in life? Success patterns may not have existed because individuals may not have been given the opportunity, experienced set backs, or they have not been mentored. If you see someone who needs assistance, guidance, direction, or words of encouragement, invest in that person so that they can create their own pattern of success. It will cascade and you may find yourself impacting many others, influencing perhaps generations of individuals.

Putting groceries on the shelf provided a sense of purpose, and created a pride of ownership in what I was doing. It made me feel good inside to know that I had done a good job. I didn’t just do it for the money. And, while I am sure that I received recognition from the boss from time to time, nothing specifically stands out as to anything he said to me along those lines. What I do remember is that the sense of dignity I acquired came from within–not from an outside source.

While we can be successful based on what others say, the true measure of success comes from within. President Reagan said that the “best social program on earth is a job.” He may have been referring to the financial rewards associated with work, but I believe he meant the feeling that comes from within that provides a sense of worth. I was proud of the effort I put in and it made me a better person. If you know others who harbor doubts about their own abilities, give them the tools and encouragement they need so that they too can be successful. Like most successes, nothing happens overnight. Over time, success will develop and it will become stronger, and far more certain when it comes from within.

I remember dealing with coworkers who were much older than me and being treated as a peer. At that age you deal with people who are either your superiors (parents, teachers and the like) or friends, usually in the same age range, who are peers. The whole concept of being equal with someone far older than you was at first a shock, then it became a matter of fact. Your view of the world changes when something extraordinary like this happens. You make the leap to adulthood.

The lesson I learned that I can pass on is that you have to have respect for yourself first, and then others will come to respect you. Respect is earned, not granted. I took my job seriously and demonstrated respect for myself by showing up on time and doing the best job I was capable of doing. When my coworkers saw that I was able and could demonstrate through word, action, and deed that I was taking the job seriously, they took me seriously.

I stayed at that first job for two years, learning more lessons along the way. But creating and nourishing a pattern of success in life, creating a strong sense of self worth, and developing respect for myself have been at the core of who I am today. The same foundations exist for strong and flourishing organizations and the people who work in them.

Ken Keller, 661.295.6892

Invest 5 Hours

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.

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Business Results

One of the biggest challenges facing business owners today is achieving results. “We want growth! We want success! We want BUSINESS RESULTS!” has become the mantra of owners everywhere.

And, who can blame owners for wanting these things? They are the individuals who have put all at risk to create and build the business. In exchange, they want to see results. The failure of not achieving results in any organization is a great source of frustration. Here are some reasons why results are often lacking.

The first is that far too many jobs and written job descriptions list tasks to be completed and not results to be achieved. Another way to put this is that individuals are hired and being paid for activity and not for accomplishment.

The next time you walk through any organization, look at the individuals working and ask yourself “what results is this person supposed to be achieving?” People aren’t supposed to be hired to do “stuff” yet far too many of them do just that. All day long, week after week, month after month. And, when it comes time for their performance review, employees often expect a raise for keeping busy but not effective.

The second is that the results being sought are in conflict within the organization. A credit manager or financial manager has the responsibility to manage assets, including cash. The sales person is being charged with finding new business and this sometimes means uncovering opportunities to do business with customers or clients with less than stellar credit. So, the sales person is charged with achieving specific sales goals that run directly counter to that of the credit manager.

The third is that there is no hierarchy of results. No one has taken the time to explain how the sought after results of each person fits into the results of the department, then to the division, then to the company as a whole. Broken down person by person, it becomes clear what people have to do, by when, and in what order. It also becomes clear to identify when people don’t do what they are supposed to be doing, and so corrective action can take place, at every level.

The fourth is that the results are never discussed once they have been set. After being determined, the results are not referred to again, never reviewed, never measured and corrective action does not take place. The “report card” if you will, is never given to those that need it.

Fifth, people are told what results to achieve, but cannot accomplish the assignment for a variety of reasons. These reasons include not having the tools, not having the motivation or the understanding of what the steps or the process is. Many times those giving the orders assume that those getting the orders understand what but not the why or even the how to achieve the desired results.

If you wonder why things don’t happen as they should in your organization, take a look to see if one of these five are at the root cause. Take steps now to change job descriptions to include results, make sure people understand why they are on the payroll, that desired results are synchronized and focused, and that the tools are available.

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Business Advisor – Invest 5 Hours

The night of April 14, 1912, the captain of the Titanic had one advisor on board, the chief builder. The fact that he could not turn to anyone else on board to ask for advice was a handicap. Captain Smith could have used more help in planning, in safety management, in crisis management and leadership.

This is a lesson for every business owner. It may be lonely at the top, but even if you have been in business for many years, you still need the wisdom and perspective of people who have been around and have knowledge and perspective that you do not. Captain Smith had sailed the oceans of the world for more than 40 years but still ran into an avoidable disaster.

Every business owner needs advisors. The reason is clear: there are areas of business management that the owner cannot possibly know enough to even do a passable job. Human resources and tax issues, as examples, have become so complex and highly subject to litigation that an owner needs some specialized assistance just to stay out of trouble. So, who should be advising you?

The first person on the list should be a tax professional. This advisor may perform tasks other than tax preparation during the year, such as payroll and employee benefits. The essential function is to serve as a financial advisor throughout the course of the year, not just during tax season.

An attorney should be the second person an owner turns to for advice. An owner needs to have the confidence of a solid business attorney who can provide advice on legal matters including contracts, incorporation, and buy sell agreements.

The third advisor board should be an insurance agent. A business enterprise entertains serious insurance issues, and this is an important area that needs to be reviewed regularly.

Bankers are critical to any business and should be the fourth outside advisor. They can provide guidance on what their own bank and other lenders seek regarding money. Bankers are also good at connecting people.

The fifth source of advice should be coming from consultants that provide knowledge about technical areas that are probably unfamiliar: graphics, web marketing, research, pricing, sales, marketing, and public relations. While any one consultant can provide an owner with some knowledge in all of these areas, chances are a particular business will need more in depth assistance, which is why more than a single consultant is sought out.

But the best advice is going to come from fellow business owners, and for that reason alone it is wise to seek out others to serve formally as a “Board of Advisors.” This is not a formal board, as it has no ownership or fiduciary responsibility, other than to provide guidance. It can help most when the owner is trying to make a decision in unfamiliar areas and does not want to do it in a vacuum. It never hurts and almost always helps to have people around to run ideas and thoughts by for validation. That kind of “what if” thinking might save an organization from expensive mistakes.

Used properly, an advisory board can be invaluable. However, it cannot be a “paper tiger.” The owner has to be willing to listen to the advice and counsel given. It does not have to be followed, but it should be considered. After all, that is why a board of advisors is established in the first place: for advice and counsel.

Integrity, experience and open communication are critical to whomever advice and counsel is received from. Those that serve from the outside must be willing to provide candid and honest advice at the risk of losing revenue. advisers have to be ready, willing, and able to tell the truth, even if the owner does not want to hear it.

Go back to the bridge of the Titanic that cold April night. If the captain had listened to others who had crossed the Atlantic during the winter months, he just might have been better prepared for the crisis he sailed into.

www.Invest-5-Hours.com

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