Do Business Well

Perhaps one of the best examples of caring for employees is Raymond Ackerman, who credits part of his success to his good relationship with them. He has always attempted to pay the highest wages and provide the best working conditions in the retail business. He celebrated his sixtieth birthday by sending cake to every one of Pick ‘n Pay’s 27 000 employees!

Keep out the red tape where possible - high achievers are intensely demotivated by it. If you nit-pick about unimportant aspects like taking leave you are on a losing wicket. Continue Reading »

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Many managers say they would like to define the right outcomes and then let each person find his or her own route, but they can’t. Some outcomes, they say, defy definition. And if you can’t define the right outcomes then you have to try to define the right steps. It’s the only way to avoid chaos, they say.

From some angles this perspective is actually quite sympathetic. First, some outcomes are indeed difficult to define. Sales, profit, or even student grades lend themselves to easy measurement. But customer satisfaction doesn‘t, nor does employee morale. Yet both of these are critical to excellent performance in many roles. Continue Reading »

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Employees must follow certain required steps for all aspects of their role that deal with accuracy or safety.

Take banking as an example. A bank performs many different functions, but in the long run it has value for its customers only if it handles their money accurately and safely. Therefore the foundation of every role within the bank, whether it be trader, investment adviser, or teller, is the need to do it accurately and safely. To show employees exactly what it means to be “accurate” or “safe,” the banking industry has defined regulatory steps, and each bank has its own internal guidelines. The bank’s employees must adhere to these. Continue Reading »

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#2: WHAT IS RIGHT FOR YOUR COMPANY?

Make sure that the outcomes you define for your people are in line with your company’s current strategy. Again, this sounds like motherhood and apple pie. But with the dizzying pace of change in today’s business world, it is sometimes hard for managers to keep track.

The key distinction here is between “mission” and “strategy.” A Company’s mission should remain constant, providing meaning and focus for generations of employees. A company’s strategy is simply the most effective way to execute that mission. It should change according to the demands of the contemporary business climate. Continue Reading »

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If you are a manager, you may want to try this exercise. On the left-hand side of a blank sheet of paper write down the names of the people who report to you in descending order of productivity, the most productive at the top, the least productive at the bottom. On the right-hand side, write down the same names, but this time in descending order of “time you spend with them,” the most time at the top, the least time at the bottom. Now draw straight lines joining the names on the left with the appropriate names on the right. Continue Reading »

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“What can the company do to create a friendly climate for great managers?”

We have said that an employee may join a company because of its prestige and reputation, but that his relationship with his immediate manager determines how long he stays and how productive he is while he is there. We have said that the manager is the critical player in turning each employee’s talent into performance. We have said that managers trump companies. Continue Reading »

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Compensation Concepts

Most honest individuals will put in a decent day’s work with little more motivation than a reasonable wage. You’ll probably want more than that from your people. I know that nothing tickles me more than to see an employee use his opportunity with our company to grow and prosper. However, to get these results, you must provide motivation.

The better you know your people the better you’ll know how to motivate them. There are certain key things you can do, though, that will result in employees consistently going the extra mile. Continue Reading »

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Another important aspect of the change in your company from survival oriented to management oriented is the way in which you establish goals and monitor them. The following questions are designed to take you through a process of developing a new set of goals for your company:

1. What do you want the company to do for you in the next twenty years? Ten years? Five years? Twelve months? Are you primarily interested in the income stream that can be generated? Is wealth building as opposed to income generation your most important desire? Possibly you’d prefer a lighter work schedule, even if it meant less income. Will you be happy if you aren’t growing? Is it a high priority for you to broaden markets?

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There are many situations that may cause you to seriously consider selling out. Among these are the obvious such as age, ill health, a decision to move your family to a new area, burnout, family pressure, or just the desire to move on to something new.

When selling becomes a serious option, you need at least nine months to find a buyer and consummate the sale. For even better results, plan to take two years. Here are the steps you should follow to obtain the highest price for your enterprise.

1. Change the way you do your bookkeeping one to two years before the sale. There are many different ways to prepare your income and financial statements that are legal and ethical. When selling the business is not a consideration, your priorities are probably determined by taxes or banks. You’re either trying to limit your profits to reduce tax exposure or maximize profits to prove creditworthiness.

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In 1950, W. Edwards Deming was invited to Japan to help bring Japanese industry back to its feet. Although his management methods revolutionized Japanese quality and productivity, he did not gain full recognition in the United States until recently. One of the tenets of his philosophy is that workers who are prone to be fearful and anxious cannot perform effectively.

Many employees operate in a climate of fear. The result is stress, low productivity, medical and personal problems. In the absence of actual physical danger, what are employees afraid of?

Fear generally comes out of a feeling of powerlessness. Someone (the boss) or something (the organization) has control over crucial aspects of a person’s life. Uncertain job security, performance appraisals, loss of status, failure to meet goals—all of these contribute to an employee’s malaise. Continue Reading »

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