Business Employee Appraisals

Posted on July 13, 2008 by Super Job For You

Dear Senior Managers,

This may seem out of the ordinary, but since you were kind enough to provide me with advice on my leadership at the beginning of the year, I am now going to provide you with some feedback as a group. Yes, this is a group performance appraisal. Unusual, yes; but needed and overdue.

I want to thank you for your dedication and commitment to this organization. Through your efforts this firm has grown in size and stature. This has not gone unnoticed or unappreciated, but I want to thank you again for what you have done on behalf of the organization.

Back in January you asked me to do something about the deadwood in the company and I am now ready to do what is required. I am starting with the management team.

I am putting a freeze on all raises and bonuses until each person in the company has been given a formal written performance appraisal. I will manage this process by sitting down with each of you and together, we will review the evaluation you have completed for each employee that reports to you or one of your subordinates.

Why are we doing this? It has come to my attention that some employees in this company have never been formally evaluated, despite being on the payroll for years. In some cases the total sum of the feedback that they have received has been along the lines of “You did a good job this year” and that they would be getting an increase in pay starting with their next paycheck. This is shameful and unacceptable.

Several of you regularly conduct written performance appraisals, but most of you do not. This means as a team we have a very mixed record of executing one of the most important management functions. Your responsibility to ensure that each employee knows what they are responsible for achieving, getting them the tools they need to get their job done, and providing feedback along the way has been ignored.

If we truly believe that our competitive advantage is our people and processes, then we must invest in our people and their ability to execute those things that will make a positive difference for our clients. At the foundation is regularly scheduled and conducted evaluations.

I know that one of the reasons why these evaluations have not been conducted is because you may be uncomfortable doing them. Please mark on your calendar now that you will be out of the office the last Friday and Saturday of this month because you will be in a two day workshop to learn how to conduct these evaluations. You will be out of the office on both Friday and Saturday. Your attendance is not requested, it is required and I will not accept any excuses for you being present.

Please mark on your calendar that all evaluations for every person in your department will be completed by the first Friday of next month. This means that the first week of next month you will be meeting with each employee, so schedule those sessions now.

On the Monday following I will sit down with each of you and we will discuss each employee and assess your evaluation of them.

If you do no complete this assignment by the deadline, you will be put on probation for one week to give you a final opportunity to complete this assignment. If you fail your probation, you will be asked to seek employment elsewhere. This will happen regardless of your tenure, title or position.

You can either embrace the required responsibilities to be a manager or you can accept a position somewhere else. The choice is 100% yours. This company can no longer afford the luxury of having managers on the payroll who are just collecting a paycheck while the people they are supposed to be providing feedback to are not getting it.

I have given a lot for you to think about. Please see me if you have any questions.

Written with respect and sincerity,
The Boss

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Watch your Cash Flow in Business

Posted on July 12, 2008 by Super Job For You

The CEO Project has conducted research that suggests that critical to success is selecting the right business and profit model.

An essential part of any successful business model is determining how to maximize cash flow, minimizing risks and balancing the needs of specific clients. The cash flow component of the business model has to be built around the simple concept of “what works best for the company” and not “what works best for the client.”

While managing cash flow and receivables may not seem like the something that fits into the job description of a CEO, it is. Kraig Kramers, while leading Snapper, the lawn care company, required a daily cash report at the start of each day for two reasons. First, he wanted to send a message to every employee that he was watching cash flow and he understood that if he was paying attention to it daily, so would his employees. Second, he understood that cash flow management was so critical to business survival and success that it was truly a CEO level responsibility that could not be relegated, delegated or ignored.

It is the job of the CEO to reduce risk whenever possible, and it begins with the creation and implementation of successful credit/collections policies and procedures.

Many companies believe that what is normal and customary for their industry must be adhered to when it comes to invoicing and collections; otherwise clients will take their business elsewhere. This is simply not true. Failure to pay invoices timely is not a smart business practice; it is the sign of a company that is not well managed. Who wants clients that don’t pay their bills? Who wants to do business with a poorly managed company?

The CEO of every organization needs to be open minded about the various methods and means to more bring cash into the company from clients because it will not only reduce financial risk but will also improve the valuation of the company. The management and improvement of cash flow cannot be after thought; it cannot be done only when a crisis looms.

The most desirable of all cash flow models is that the client pays the total invoice, in advance, before the company incurs time, materials, production and other costs. When this is done, the risk of the client not paying, or delaying payment, is virtually eliminated.

Getting a deposit or retainer in advance is also a good way to reduce risk, but unless the company is clear in communicating to clients when the remaining payment(s) are due and there are consequences of not meeting those deadlines, the company is relying on the goodwill of the client to pay.

Risk occurs when the company has no set policies or procedures regarding credit or collections. Substantially more risk occurs when there are policies and procedures in place and they are not executed.

Key components of reducing risk include determining credit worthiness of clients and assigning credit limits to each one. Credit insurance is available at a relatively low cost to mitigate risk of default or short payments.

But the most important aspect of reducing risk and increasing cash flow is a proactive and systematic approach to collections. This means monitoring credit worthiness of clients on an ongoing basis because the circumstances of clients change. It means educating clients of the company’s policies related to credit and collections. New clients (and perhaps those with changing credit worthiness) need to be called when an invoice is mailed, called again to make sure the invoice has been received and to determine the date that the invoice will be paid. It means following up before the due date of an invoice to make sure that the client intends to pay it when it is due and not later.

Intelligent cash flow management does not mean sending “past due” notices and hoping that the client will pay it immediately. When previous “past due” notices have been ignored, it does not mean sending more notices. It does not mean calling and leaving a message about a past due invoice and hoping that the call will be returned. It means assigning a competent individual or individuals to the critical tasks of credit and collections.

The CEO needs to take an active role in ensuring that the cash flow of the company is protected and positive. This may mean changing the business model; it may mean finding better clients, and moving away from clients that cannot pay their bills within set deadlines. It may mean that company will need to address gaps in policy and in execution. Poor cash flow happens because of poor design, lack of policies, lack of communication with clients and poor or non-exist execution by staff.

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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Strong Foundation For Your Business

Posted on July 11, 2008 by Super Job For You

If the press is correct, and the economy is contracting, now is the time to take stock of your business.

Even if the press is incorrect, it wouldn’t hurt to step back and take time to analyze your current business situation, and build upon that by reviewing the values, vision and mission of the organization.

Reviews of this nature should take place on a regular basis, and many organizations do just that during their annual strategic planning exercises.

The first step is to perform a SWOT analysis. This is a simple analysis of “inventory” beginning with the listing the internal strengths or advantages as well as weaknesses or vulnerabilities. Then, look at the external opportunities (possibilities) and compare them to the external threats (dangers) facing the organization.

The second step is to develop a list of values that the company “lives” by. Values are core beliefs. They pass the test of time; they are who the company is. Values provide a solid footing for daily performance. They provide a foundation for testing reality and for decision making.

Companies without values tend to suffer accordingly. Enron will be remembered for all time for illegal actions, the focus on profit, for the lies told by leadership, for cooking the books, for the destruction of the life savings of thousands of good, hard working employees.

Having, reviewing and enforcing values are the responsibility of everyone in the organization.

The third step is the creation of a vision statement. Vision establishes the “big” objective of the company. Unfortunately, too many organizations lack a vision; many that have it do not share it with the employees. Without something to target, organizations drift.

Not having a vision is like going to a trip in your car without having any idea as to where you want to end up. Not only is it hard to get excited about the journey, you don’t have any idea as to how you can contribute to the effort.

The fourth step is to develop a mission statement. This simple, declarative statement describes how your organization will interact with internal and external clients and the rest of the world as it moves towards its vision.

In her book The Path, author Laurie Beth Jones states that a good mission statement should have three qualities to it. First, it should be so simple that a twelve-year old could understand and repeat it. Second, it can be repeated by memory, even if someone was holding a gun to your head. Third, it should be no more than a single sentence long.

As an example, Abraham Lincoln had a very simple mission statement: “To preserve the union.” Franklin D. Roosevelt’s mission was “to end the Depression.”

Developing meaningful documents such as a SWOT analysis, values, vision, and mission statements take time, and will often be updated as the organization grows and changes.

The time spent on the creation of these foundation elements of a business will help it to whether both good and tough times, regardless of the economic conditions that exist at that moment.

Ken Keller, 661.295.6892

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.

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Better Business in 8 Hours

Posted on July 10, 2008 by Super Job For You

Many people in business believe that “everything either works for you or against you.” There is no middle ground for those that want to have a better business, and one very decisive way to do a simple yet effective analysis is to decide specifically what is working for you or what is working against you.

This type of analysis, if followed by action, can quickly improve any business. In less than a week business results will begin to show. Since fewer resources will be used, the business will become more profitable and more efficient.

First Hour
Take 45 minutes to decide what the goals of the organization are for the next year, the next six months, the next quarter and the next month. Break down the monthly goals to weekly, then further break them down to daily. There should be no more than five goals in any period of time; three is actually a better number. Take the final 15 minutes and decide what goal will be owned by which person in the organization.

Second Hour
Make a list of all the positions in the company and vendors, including any independent contractors used. Position by position, supplier by supplier; determine whether or not the contributions made and the results delivered are positive or negative. There can be no middle ground. When in doubt, the answer is they are not helping the business.

After completing the position and vendor analysis, make a plan to eliminate those positions and suppliers not contributing to the goals of the organization. Next to the positions and organizations noted as not contributing, make a list of the appropriate action to be taken, name the person responsible and the date that the action will be completed.

Third Hour
Based on what was completed at the end of the second hour, review, revise and update the organizational chart of the company. If changes are to be made, make a note as to when the new reporting structure will take effect as well as those responsible for implementation.

Fourth Hour
Take a long hard look at the vision of the organization. Does one exist? If not, now is the time to create one. Does the existing vision still work? Either it does or it doesn’t. If it doesn’t, change it. Review the mission statement of the organization. Does it still apply? If it does, create an action plan with dates to ensure everyone in the organization understands it regardless of their position or title.

Fifth Hour
Create a list of all current marketing activities. Next to each program, determine if that program or effort is bringing in the desired results. Either it is or it isn’t. Once that action is done, make a second list of only those marketing investments that are effective. Count that list and at the half way mark, draw a line; those programs that are above the line will continue to be used, those below the line are to be eliminated. In less than one hour the marketing plan for the year has been established based on what actually works best.

Sixth Hour
Rank each customer from highest to lowest revenue; rank a second time using profitability (highest total profitability to lowest). There should be a natural correlation between the two variables (revenue and profitability). Those that generate low revenue are hurting the business just as those providing minimal profitability. Make plans to eliminate those customers who are more costly than they are worth, or plan to raise prices to improve revenue and profitability immediately. Write down the date when this will take place next to the name of the customer.

Seventh Hour
Review the financial statements, taking time to focus on expenses. Is the expense necessary or is it simply “nice to have?” Eliminate the nice to have as those costs non essential and are working against profitability. Where did costs increase in the last year? Why did those costs climb? Can services and supplies be comparison shopped to reduce costs? Contact vendors (see second hour) and ask them for help to decrease costs going forward.

Last Hour
One of the most effective productivity and communication tools ever devised is the twelve month calendar, which will be created this hour. Start by listing all company holidays, significant marketing events including trade shows and sales meetings, staff meetings, advertising campaigns and associated deadlines. Once the format is established, and it is used on a consistent basis, it is easy to update and the NITMA (no one ever tells me anything) excuse can be eliminated. “If it is not on the calendar, it won’t take place” should be the company mantra starting right now.

To be sure, these activities will take a full day. But at the end of the day, a much better business, more focused, more directed and more efficient, will emerge.

Ken Keller, 661.295.6892

www.ExecutiveForums.com/kkeller

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