by Russell Cummings | Aug 12, 2010 | Business Tips, People
Like so many other areas of good business management getting the right plan in place for management of your human resources can increase profits dramatically if implemented correctly. Getting the right equipment for the job is accepted as essential if consistent quality production is to be maintained and it is with this same philosophy recruiting the right people into your organisation should be viewed.
This applies particularly to business sectors where we often hire fewer permanent employees but seem to have an endless parade of casual employees. Can we improve this situation by having a better plan? Yes!
The Mindshop recruitment process has been tested over many years, in a variety of industries and companies. It provides a simple yet comprehensive system for farm businesses to get the right people the first time. Consider the following: –
Person Specification
What type of person are you seeking? Do they need to be innovative, responsible, good with machinery or stock, or self-motivated? How will you test this at the interview?
Advertise
How are you going to attract the best applicants and discourage inappropriate ones? How can you use the advertisement to encourage your existing employees rather than de-motivate them? If you are not formally advertising then develop a statement that explains the sort of person you require and the qualities they must have. This is better then asking around the pub if anyone knows of anyone looking for work!
Interview Project
A way of minimising the risk of a recruitment mistake is to get the final applicants to undertake a project. An applicant for a storeman’s position can demonstrate their skills in the loading docks.
Reference Check
No one produces a reference or a referee that does not say what the applicant wants it/them to say. How can you use the reference check to find out the truth about the applicant?
Induction
Don’t throw your new employee into the deep end. Induction maximises the start up performance of a new employee. A little planning and a simple checklist is all that is needed.
The key to finding the best person is locating the person with the most appropriate core values. An advertisement in a USA paper for hotel said we don’t train our people to be nice we just hire nice people.
There is an imperative to bring out the core values of an applicant however in doing this through the normal recruitment process’s can create a number of traps
Solo Recruiting
Too often people recruit on their own. It’s very difficult to manage your own performance, plus, watch the reactions of the person you are interviewing. Never recruit on your own.
Lack of Preparation
People never make the time to effectively prepare for their recruitment interview. Part of the reason for this, is that they have done so many before, they have tricked themselves into believing they are good at it. Preparation is the key to success in any business activity, particularly recruitment.
Halo Effect
This occurs when your applicant makes mention of something you feel good about. Perhaps they are a member of a similar sporting club or group to you. As soon as you hear this common ground, then everything they say is biased in your mind. Be careful about the halo effect, it can lead you astray!
Lack of Follow Up
Too often, people ignore some of the basic business requirements of reference checking, offer letters and induction. The follow up in a recruitment process is as important as the initial planning and interviewing phase.
People assume that recruitment is an easy process, when in fact, it’s quite difficult to develop the key skills required to be effective in the recruitment process. This is especially hard when you only recruit once in a blue moon. Consider engaging the assistance of a professional to assist you in the process. They will charge a fee but it is usually money well spent.
However, a good system for recruitment coupled with sound implementation will go a long way to giving you the competitive edge that comes with having the right staff.
by Russell Cummings | Aug 11, 2010 | Business Tips, People, Planning, Strategy
People: Some people want to change, others resist it. Its sometimes necessary to admit that some team members have become a liability. If such people form the major part of a team, the team is doomed for failure. For this process to work the teams must be formed by the people who want change. In a family owned or small business selecting the right people can often be very difficult.
Products: The Pareto Rule is relevant here. “Twenty” percent of your products provide “eighty” percent of your sales. Twenty percent of our products provide eighty percent of your profit. Removing non performing products is essential if you want the right structure. Flexibility in production systems and an ability to diversify are critical to success in agriculture.
Customers: Again the Pareto Rule applies. Which twenty percent of your customers provide your sales, profit and repeat business? Which twenty percent provide eighty percent of your problems? Why invest time in these? Why not remove them? How many managers actually think about who they sell their products to?
Experience indicates that many businesses sell to customers who are tardy with payment (or even worse are “known” non-payers) or people that change the terms after delivery. Why do we sell to these people ? Select your customers wisely and build strong relationships with good customers that will stick with you in good times and bad. Do you have a customer care program to build relationships with your key customers? If not, then Why not?
Processes: The processes used in most businesses are rarely reviewed. Inefficiencies and waste creep in. To have the right structure, your processes need to be effective. Do you know what the key processes are in your business? How do they interact? Where are the inefficiencies? Where is the waste? Where are you under-utilising labour and resources? Where are you wasting inputs?
Processes also refer to the management processes in your business (not just the sales or production functions). Do you have an effective business planning process? How do you develop your marketing strategies? What are you Human Resource Management policies and strategies? These background or support processes are often more important than your production processes.
Price: A key structural element is pricing. Many businesses know how to cost, most dont price correctly. The wrong price can mean lost sales or lost profit. Correct pricing is a key success factor. How do you determine the correct selling price for your product? What is your selling strategy? How can you maximise the market price for your commodity? These are important questions that need to be answered.
But where to start?
This is a common question from managers and owners. – Where do I start? How do prioritise working on my people, products, prices, processes, etc? Where do I put the most effort?
There is no unique answer to this question although many “consultants” will tell you exactly where you need to apply your focus. In reality, depending on your individual situation, you may need to address all of these issues.
Our recommendation is that you develop a one page strategic plan for your business. YES – ONE PAGE!!
This simple, innovative planning process will help you to take stock of your current situation, work out where you want to be and help you prioritise the actions and strategies that will get you there.
The key to success is in this last step – PRIORITISE THE ACTIONS. The MindShop process that drives the development of the one page plan is unique and so simple to implement.
The one page plan will focus you on the actions you need to take to get your business or organisation moving. It will help determine whether you need to focus on people, prices, products or processes issues. It will also help you easily develop solutions to complex problems by providing you with a logical problem solving process.
by Russell Cummings | Aug 6, 2010 | Business Tips, Marketing, People, Sales
For many businesses, the period of strong growth that has preceded the downturn, meant that sales skills and management did not get the attention that they deserved. As the economy slows, competition for scarce resources increases and sales are no back on the agenda – the shoe is now firmly on the other foot!
Selling in difficult times It is worth noting some key points raised by Neil Rackham (of SPIN Selling fame) in his article: “Selling tactics for difficult times”
There are several other reasons why business managers don’t plan:
- Only 50% of sales people have sold in difficult times – if you have a young sales force then this proportion will be much higher;
- In an economic downturn, sales cycles (from start to close) are typically 40% longer;
- Many people believe that in tough times, customers buy on price – this is a fallacy as most customers will buy on value, not price;
- Research has shown that during difficult times, customers will buy safety i.e.. the offering with the lowest risk. Often the perception is that the lowest risk option is to stay with the “status quo” i.e.. the current product, service and/or provider;
- Committees are often involved in making economic decisions in difficult times and group decision making usually favours lower risk;
- Buyers also realise that their decisions will come under more scrutiny in tougher economic times.
- This means that businesses and sales people will need to adjust their strategies in order to compete effectively and to survive in a depressed economy.
Sales Survivors
Rackham’s research indicated that many sales people struggle to adjust to the “new rules” of the downturn (just as many business owners and managers struggle). There is also a group that will adapt and survive (even thrive) in an economic downturn.
In his article, Rackham outlined the key characteristics of “the Strugglers” and “the Survivors” based on research undertaken in previous downturns. This is summarised in the table below.
| Strugglers |
Survivors |
| More calls, more demos |
Focused on best opportunities |
| Poor planning |
Good preparation and planning |
| Just a “talking brochure” |
Asks good questions |
| Shorter calls |
Longer/deeper calls |
| Nervous/ rushed |
Confident / In control |
| Low sales conversions |
High sales conversions |
Interestingly, research has shown that a key factor in the buying decision for customers was the “confidence” of the sales person.
Mike Boyle (sales guru from www.banjargroup.com.au) calls this “Sales Swagger” and it is an essential ingredient for good sales performance. Are your sales people confident when they sell? How can you help them to build confidence in themselves, your pricing and your products and services?
Improving your Sales Force
In a second article, Rackham expouses 5 top tips for building a world class sales force:
There are several other reasons why business managers don’t plan:
- Sales Supervisors are the key to success – lift the level of supervision not the level of sales person. You don’t need better sales people -you need better sales supervision;
- Fewer accounts = more sales – Research has shown that dramatic improvements in sales can come from reducing the number of opportunities that a salesperson will focus on by up to 30%. It’s the quality not quantity approach!
- Create Value – Your sales people must become “value creators” or “problem solvers” rather than “talking brochures”.
- Coaching brings results – ensure that your team has support at all levels from manager to supervisor to sales person. Effective coaching can often provide that external sounding board and third party accountability that can help to improve results.
- Integrate marketing and sales – There are usually 2 camps in most businesses: Marketing and Sales – and they are often at war! As they are both involved in revenue generation (at least that’s the plan!) to have them working independently is a great loss. Spend the time to set common targets, integrate teams and improve communication.
- However, in my experience, in many businesses there is only one camp because “marketing” is usually missing – not because they are integrated. Often businesses have a “marketing department” but it doesn’t do any marketing (apart from a Yellow Pages ad and new business cards) because their primary role is sales, not marketing. By not calling “a spade, a spade”, there is no focus on sales and performance usually suffers.
In conclusion, now is the time to look hard at your Sales Team. Are they “Sales People” or “Order Takers” ?
Make the changes necessary in sales management and systems and especially make sure that you and your team become “Problem Solvers” and sell the value behind what you do.
by Russell Cummings | Aug 5, 2010 | Business Tips, Leadership, People
The first list is from Warren Bennis, a professor of Business Administration at the University of Southern California and the best selling author of “On Becoming a Leader” and many other books on leadership.
Warren Bennis’s Ingredients for Leadership
| Concept |
What it means |
| Guiding Vision |
You have a clear concept of what you want to do —
professionally and personally |
| Passion |
You love what you do |
| Integrity |
You know your strengths and weaknesses and are true to your principles |
| Trust |
You have earned people’s trust |
| Daring |
You are willing to take risks |
| Curiosity |
You want to keep learning |
Our experience is that the strongest attribute that a leader can have is a clearly defined vision and the ability to communicate that vision and get your staff and community to be willing followers and allies to you in achieving that vision.
Source: Warren Bennis, On Becoming a Leader.
Henry Ford, Walt Disney, Sir Winston Churchill and Martin Luther King all had the ability to communicate their personal vision.
Martin Luther Kings famous speech expressing his dream is well worth repeating.
1. “I say to you today, my friends, that in spite of the difficulties and frustrations of the moment I still have a dream. It is a dream deeply rooted in the American dream.
2. I have a dream that one day the nation will rise up and live out of the true meaning of its creed: ” We hold these truths to be self-evident: that all men are created equal.”
3. I have a dream that one day on the red hill of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.
4. I have a dream that one day even the State of Mississippi, a desert state sweltering in the heat of injustice and oppression, will be transformed into an oasis of freedom and justice.
5. I have a dream that my four children will one day live in a nation where they will not be judged by the colour of their skin but by the content of their character.”
How many of us could articulate our vision to our staff as effectively as that?
Now we will visit Stephen Covey’s list of Leadership characteristics.
Stephen Covey’s Eight Discernable Characteristics of Principal-Centered Leadership
| Characteristics |
What it means |
| Continual learning |
Seek training, take classes, listen, ask questions |
| Service orientation |
See life as a mission, not as a career |
| Radiate positive energy |
You are cheerful, pleasant, happy, optimistic, positive, enthusiastic and hopeful |
| Believe in other people |
Don’t label, don’t overreact, don’t carry grudges or prejudge people |
| Synergize |
You are productive and “smart working” |
| Lead a balanced life |
You are temperate, wise, sensible, physically active, socially active, and well read |
| See life as an adventure |
You are courageous, unflappable, totally flexible explorer |
| Balance your physical, mental, emotional, and spiritual characteristics |
You engage in exercise, reading, writing, creative problem solving, you pray, meditate, and watch what you eat |
Source: “Principle-Centered Leadership” by Stephen Covey.
Now you can rate yourself against the issues that have been highlighted above. As in all these things there are no definitive right or wrong attributes that fit great leaders.
Peter Drucker, known as a great respected authority on leadership and still active in coaching and teaching the subject in his nineties stated that there are no set fundamental traits for great leaders.
We are all individuals, however in my opinion the key issues are to be able to “command and not demand respect” and to be able to listen effectively and have empathy for the other persons point of view. Its all about relationships.
Article written by Bill Winter, Mindshop Facilitator
by Russell Cummings | Aug 4, 2010 | Business Tips, People
How to build trust, initiative, responsibility and ownership
Many people refuse to delegate to others because they feel it takes too much time and effort and they could do the job better themselves. But effectively delegating to others is perhaps the single most powerful “high leverage” activity there is. High leverage, in this case, is all about spending your time on activities that directly relate to achieving your personal & business goals.
Transferring responsibility to other skilled and higher trained people enables you to give your energies to other high-leverage activities to which you are best suited.
Delegation means growth, both for the individuals and for your business. Most Small Business Owners who have watched their business grow and develop in the initial stages find it difficult to “let go”, but most choose delegation after they realise they do can’t do it all by themselves any longer.
Stewardship delegation focuses on results instead of methods. It gives people a choice of methods and makes them responsible for the results. It takes more time and patience in the beginning, but it will save a lot of time in the long run.
Stewardship delegation involves a clear, up-front mutual understanding and commitment regarding expectations in five areas:
1. Desired Results
Create a clear, mutual understanding of what needs to be accomplished, focusing on what, not how. Focus on the results, not the methods. Spend time. Be patient. Visualise the desired result. Have the person see it, describe it, get them to feel it. Make a quality statement of what the results will look like and by when they will be accomplished.
2. Guidelines
- Identify the parameters within the staff member should operate;
- Keep them as few as possible;
- Include restrictions so that they don’t violate traditional practice and values;
- Identify the failure paths so they don’t reinvent the wheel;
- Let people learn from your mistakes, so everyone saves time;
- Keep the responsibility for results with them – to do whatever is necessary within the guidelines.
3. Resources
Identify what resources are available to them. Who will support them? What are the human, financial, technical or organisational resources that are available to them?
4. Accountability
Set up the standards of performance that will be used in evaluating the results and the specific times when reporting and evaluation will take place.
5. Consequences
Specify what will happen, both good and bad, as a result of the evaluation. This would include: financial rewards, promotion, job assignments, responsibility; and effect of non performance, dismissal etc
Trusting others to do the job and the Five Levels of Initiative
One of the reasons why people find it difficult to delegate fully, is they are afraid the job won’t get done to their satisfaction. The key here is to identify the level of initiative the person is able to be entrusted with before deciding how to delegate.
Also, in any job, there may be areas that are absolutely critical to the success of the project or task that require a lot of experience. Parameters can be agreed upon to ensure that a lower level of initiative is required (ie 2,3 or 4).
There are five levels of initiative to consider.
1. Wait till told
This is the lowest level of delegation. This is the “Gofer” situation which might involve a new employee with very little experience. They typically need constant supervision to learn the ropes.
2. Ask – before you do anything
As the employee becomes familiar with their job, they begin to take initiative. However, they still need affirmation on what they can do, but not how.
3. Recommend
Employees are able to assess the situation to provide recommendations in order to get the job done. Confidence grows in they ability to handle the task appropriately and you can give them more freedom in developing their own ideas as to how to achieve the desired results.
4. Do It – report back immediately
If it is not critical that actions be approved before hand then ratifying the decision will ensure that corrective action can be taken soon after the event.
5. Do It – report routinely
This is the highest level of delegation where employees are given plenty of scope and freedom to decide how to achieve the desired results. Typically leaders of teams are at this position of responsibility and have demonstrated their ability to make good decisions.
~Trust ~
Trust is the highest form of human motivation. It brings out the very best in people. But it takes time and patience and necessarily involves training and developing people so that their competency can rise to that level of trust.
The key is to develop the individual by entrusting them with higher and higher levels of initiative when they are ready to do so.
Next Steps:
Good Reading: If you would like to find out more about how to communicate effectively with your employees and others, we recommend Stephen Covey’s Seven Habits of Highly Effective People.
by Russell Cummings | Aug 3, 2010 | Business Tips, Leadership, People
What makes the difference between a successful business person and one who struggles to get by? Of course there is no single factor as there are many skills that a business owner must possess if they are to realise their goals.
One of these factors is to first have a goal, it may seem obvious, but in order for one to ‘get there’ one must first decide where there is. I am constantly reminded of this simple fact through my consultancy work with businesses of all sizes where I see those who can best define their outcomes are generally the most successful.
However having a vision is not enough, successful people work hard on constant improvement. They know they have influence over their destiny whatever the prevailing conditions. They know that by changing their actions or improving their skills in certain areas they can succeed whatever is happening around them. People who readily accept responsibility for their outcomes can be recognised in the way they speak. For example, you will hear them say things like ‘I misjudged the market and bought more stock than I could handle’ or ‘I found that my skills weren’t sufficient to handle the negotiation’. These people have what I will refer to as an ‘Internal Locus of Control’. They are influenced but not controlled by external factors. They take responsibility for the outcomes.
Conversely, if you hear people say things like ‘I would have been successful but the markets turned sour’ or ‘I got caught by the GST and had to sell the business” they have an ‘External Locus of Control’. Put simply they blame other people for their failures. Of course those who have an external locus are generally the ones who find it difficult to change. It’s always someone else’s fault or responsibility. They tend to be problem focused, while a person with an internal locus is solution focused. It is through their desire for continuous improvement that successful people see opportunity where others see barriers.
In which category would you place yourself? Listen to those around you and see if you can tell if they have and internal or external locus of control. Listen to your own self talk and note how many times a day you blame something or someone else for outcomes in your business.
There is an ancient saying, ‘For a forest to be green each tree must be green’ so why not consider adopting an internal approach to business management and enjoy the satisfaction that comes from knowing that you can influence the outcome whatever the challenges.