Tag Archives: Business Strategy

Volunteerism is Good for your Business

Conversations with a Consultant, Quotes, Observations & Ironies, ,

Volunteering time or resources to those in need can have a profound effect on your business. This week is National Volunteer Week and we wanted to encourage anyone reading to give of yourself AND to recognize those that volunteer both for and in your organization. There are a multitude of ways that you or your company can help to those around you, and there are misconceptions around how much of your time it actually takes. People I have spoken with say they can’t give a day a week or even fixed hours every week to a cause and therefore don’t volunteer. It is not that these people don’t want to help, they just feel it may take too much from other important aspects of their life (family, work, etc). There are volunteer opportunities that can fit almost anyones schedule and the trick is to find the right ones for you.

Why to do this & How this helps a business

  1. Emotional advantages – Volunteering feels good. Knowing that what you have just done is helping someone (or some organization) work out a problem, provide services, or help someone else often provides a natural boost to the giver.
  2. Financial advantages – If you operate a business it can also help you grow. More than ever consumers support companies that support other causes aswell. In recent years there has even been a new business classification for this, have you heard of “B Corporations” (in addition to “C” & “S” “LL”corps)?  B-Corps are “profit” companies that are formed to provide a “Benefit” to a group or cause.   If your business tells people about causes you believe and support, people that believe in the same thing(s) become your marketing force.
  3. Leadership advantages – If you volunteer, people and employees around you are more likely to volunteer.
  4. Workforce development advantages – Employees like it, it makes them feel good about their place of work, which helps keep turnover down.

Hopefully many of you make it a habit to regularly thank those around you.  Thanking someone for contributions they make is the most effective way to build loyalty and recognition.  Loyalty and recognition leads to repetitive actions and isn’t that what you want from employees and volunteers?

Ways to volunteer

Church group – This one you already knew. Good people doing good work, what’s not to like.

Civic groups – so many to choose from.  School groups, town boards, faternal groups, soup kitchens, etc.  All do great work for different groups and sectors, pick one near and dear and run with it!

One time events – most fundraisers need hands and advertise for help.  For 10 years my wife and I have helped with the Boston Marathon.  It is a 6-8 hr commitment once a year.  Great fun with lots of memories.

Mentoring –  Meeting with someone periodically to help provide direction or clarify goals is needed at all levels.  Big Brothers/Sisters organizations, local gentrification/employement organizations or even through academic affiliates.  Helping someone avoid errors feels great and it is the right thing to do.  All you need to do is talk to people about something you are good at, how hard is that? Depending on your industry, working with schools/colleges on internship type programs may get others in your business involved too.  These programs are usually well organized and require a dedicated amount of time that you can plan for.

Healthcare – So many possibilities! Contact hospitals or Managed Care facilities for formal programs but you can also help by speaking to neighbors or community groups.  Do elders need rides to appointments or errands?  Meals on wheels ALWAYS needs help.  Companionship programs always need help.  There is a growing problem in many communities with funding for programs for the elderly AND a growing population of “elder orphans”.  Start asking questions and you’ll be amazed at what might be happening in your county.  Obviously there is a bit more preparedness and background checking for this option, but the need is real.  For me personally, volunteering in this area changed so much of how I looked at things.

Skill base – So many Non profits and small businesses need help.  Contact your local Charities or SCORE to see if they have a need for your expertise.  Many can use both onetime project help or ongoing access to your expertise.

Business Benefits

Setting a culture of Volunteerism in your company is shown to improve employee engagement and decrease attrition, each of which can have major economic impact to your organization.  It can also be great for Team Building.  I recommend companies that can afford to incorporate this into their Benefit Strategy as well as weaving in into your Brand Management.  Yes, there are costs associated with this and there are tax benefits of doing so.  In many cases there can be a great return on investment to the business.  If your company utilizes social media at all, there can also be great Marketing/Branding benefits of not only the company doing this but its employees also.

Example;  My wife’s company had a campaign where different departments would take a half day and go clean up a local beach or park.  They had to rent busses, pay employees, provide lunch while doing so, but it was great public relations for the company.  Employees loved doing it and before you knew it, 50 people were all using social media to tell their networks what they were doing.  Between those that saw it happening, those that were involved in it, and those Marketing it, that companies name and values had a lot of looks from this event. Good stuff!

Managing Volunteers and Expectations

As mentioned earlier, this week is National Volunteer Week.  Larger organizations may provide a lunch or dinner for the volunteer population, smaller organization may only afford coffee and donuts.  It is important to do something calling out what this group has done for you and the impact they have made for other people.  That is why most people volunteer, because they want to provide impact.  The more you can point the impact out and quantify it for them, the more likely they will continue to do so.  If they feel what they are doing is not helping or being recognized, they are far less likely to continue.  Not unlike any employee engagement.

I have always challenged my clients to manage this workforce like any other workforce they have.  Both positive and negative reinforcement is needed and managing expectations are a must.  If you welcome your volunteers to work or thank them at the end of the day, then do the same for paid workers.  If you would correct a paid worker for doing something incorrectly, correct a volunteer for the same action. I am not suggesting cracking the whip to get more productivity from volunteers.  But nearly every organization that has spoken to me about issues around “managing volunteers” doesn’t hold them to the same standards, and that is where the problems begin.  Be diplomatic, be polite, add more training time, but maintain your standards or you’ll have problems down the road.  You will be REALLY surprised what an effect this has on your entire workforce.

Tip –  Most importantly, thank them for doing something right periodically and each will be more loyal to you.

 

C.S.Simons Consulting provided over 200 hrs of skill based volunteer work last year and I hope to increase that this year.  It feels great to contribute to and build more sustainable local organizations and we challenge you to do the same.

Thanks to all the volunteers!

 

 

Succession Planning – the How, When, & Why

Conversations with a Consultant, Operations, , ,

All businesses will use at least one form of “Succession Planning” strategy during its lifetime.  This phrase can mean many things to a business owner.  Succession Planning  is subject to scale and scope of a business,  and like any strategy, the most effective ones are developed over time and employ specially designed resources.  Transitions are part of a businesses DNA, and unfortunately some are forced on a business before they are planned for.

One key tool to ensure business continuity and continued success for your business is a well designed Succession Plan.

Succession Planning quite simply is planning for the future and continued success of the business.  It insures the continuity of services of the business entity itself and likely includes planning with in each of the 4 Pillars we commonly talk about in our blogs                                                     (Products, People, Operations, & Marketing) . 

If a business losses ability to generate revenue due to change in ownership, loss of key people or suppliers or lack of consistency in their products, clearly it is not as successful as it could be.  Proactive management considers multiple scenarios that may effect revenue generation.  Common risks a Succession Plan identifies & addresses may be a sudden loss of a key leader, preparation for sale or retirement, or even rapid business growth.

  • In this article we provide some very brief points on questions around the most common transitions Business owners may face.  Like many of our “Conversations Series” articles this is designed only as an overview and in bullet point fashion.  Future blogs will address these points more thoroughly or please contact me if you would like me to expand on specific points.                 LearnMore-Blue-Primary-16

 

Why undertake Succession Planning-

A good “Stress Test” for small business

Business growth has determined need to document processes and business knowledge

Improper hiring practices have created a gap in culture or brand execution

 

Succession Planning is..

  1.  A Leadership Development Strategy
  2.  A Risk Management Best Practice
  3.  A Sustainability Best Practice
  4.  Crucial for Knowledge Transfer

Types of Succession Planning

  •  Strategic Leader Development (Next Generation)
  •  Emergency or Interim Management (Sudden loss)
  •  Departure Defined (Sale, Retirement)

 

When is right to plan?

  • Business/Company is financially sustainable
  • Strategic Plan/Priorities are in place
  • Leadership and Management is involved and engaged
  • Performance appraisal plan is in place (pending scale)

When is the Wrong time to plan?

  • During a sudden loss (death/medical emergency, etc)
  • Ad-hoc leadership patterns are apparent
  • When economically challenged
  • Unstable labor base (high attrition, low engagement)

As mentioned the reasons why an organization may address this depends on there specific situation and needs.  We will outline the more common areas people have asked us for help.  The most proactive thinkers look for Leadership succession with in an organization.  Others are more Risk Management savvy and want to protect against a Leadership “Emergency”.  Organizations that find themselves in an Emergency situation often look for an  interim management (Outsourced) solution so here we point out keys to consider.  Lastly many are looking for a departure plan, “how to insure the ship will run when I retire”.  Here we give tips on what to considered and plan for.  If you are uncertain what your business needs are or where to even start, please reach out and C.S.Simons Consulting will be happy to provide some free direction to get you started.

Steps for Leadership succession
  1.  Identify future goals and challenges (strategic plan)
  2. Create model of needs, competencies, skills, experience
  3.  Identify potential successors and assess individual and organizational gaps to              determine developmental needs
  4.  Create individual and organizational development plans
  5.  Measure frequently and revisit models and plans as environment and priorities       shift
Emergency Succession Planning
  1. Identify critical executive functions and responsibilities
  2. Name and train a backup for each function
  3. Ensure that key relationships and contacts are documented
  4. Create and update a binder or digital file that includes key documents such as strategic /operational plans, annual and monthly calendars of organizational activities, etc.
  5. Create a board approved policy and procedure for Emergency Succession
Interim Management option considerations
  1.   Proprietary IP concerns/Legal concerns
  2.   Affordability
  3.  Knowledge transfer/Time to proficiency- Transition production curves
  4.  Minimum contracted time?  (3 months common)
  5.  Support structure with in business/company
Defined Departure issues
  1.   What are our vulnerabilities with departure of our Executive/Owner/Partner ?
  2.   Unique skills of this person … Can they be replaced?
  3.  The “Do-ability” of their job?/ Compensation needed for replacement?
  4.   Management Team strength?  Is an internal successor ready now?
  5.   Should we Consider a Merger/ Acquisition or Restructuring?

 

How to create a Succession Plan

  1.   Identify critical positions
  2.   Identify competencies
  3.   Identify Succession Management Strategies
  4.   Document and implement plan
  5.   Evaluate effectiveness

Some of these steps may seem overly simplistic (which is why they may be overlooked).   A Succession plan may be an insurance plan that is never needed (unplanned departure) or for a certain event like retirement that everyone works to achieve.  Planning to insure there is little interruption in the continuity of business functions, reputation and revenue will positively impact your current customer base, your employee population, and quite possibly your ability to sleep at night!

 

Carpe diem!

Why Businesses Fail? – Avoiding common statistics

Ask an Expert, , ,

From our “Ask an Expert” blog – John L. asks –
“You mentioned in your recent article (Why Marketing alone can’t save your business) that a business should focus more attention on fixing common reasons businesses fail before addressing Marketing. What are those issues you are referring to?”

Thank you for the question and reading our blog.  In that article we made the point of when people are searching for a Consultant, the current Google trend is to search for one that will get more business in the door opposed to how to fix a failing business.  My interviews with many Small business leaders shows that many owners may feel Top line revenue is the only thing needed to fix an ailing business, when in fact there is often much more to it than that.  Our concern is that people don’t always know what signs to look for or how to judge the strength of their businesses ability to generate revenue other than looking at a Marketing fix.

So what are the top reasons a business fails?  Our company has researched many different sources to find 2 common reasons.  I have presented this concept to MANY Business Bankers, Accounting groups, Accellerators and Chambers, who ALL agree with our approach.

The Top 2 reasons Business FAIL are:

  1.  Lack of Education – Business Acumen & Experience
  2.  Lack of Timely or Appropriate Funding
 Business Acumen is a combination of a variety of skills, experience, decision making and planning ability.  Many people have a specific expertise which may be enough to start a business, but other skills are needed to build a successful business and this creates a skills gap.  Not gaining or hiring for those skills can leave a gap in Business operations, which over time devalues a business.
Appropriate funding refers to funding at different phases of business growth.  Start up funds, seeking capital growth funds or credit line at appropriate times, and managing Revenue capabilities (or cost controls) that maintain budgeted margins.

Some common statistics –

50% of Small Business fail the First year

65% of Small Business fails within 3 years

~80% of Small Business fails with in 5 years

of those

 

80% of Start ups fail due to lack of Management Knowledge and skills

* SBA,D&B,US Census, Inc Magazine

 

92% of Small Business fails due to poor

Management Acumen

                    * Dunn & Bradstreet

Failure is 2X more likely due to Quality of Management than due to External Factors

                                                          *National Bankruptcy Annual Reports

90% of FAILED Business is due to lack of Quality Management.

of these:

48% classified as incompetence

42% classified as inexperienced

                                                                        *IMC (International Management Consultants)

These are pretty sobering statistics and speak to the point my business continually addresses which is;  there are multiple areas to build upon to strengthen and grow a business.  There is a growing need for people capable of Holistically Assessing and Planning.  Where does a business person start when they want to look at their own business you ask?  Start with these common traits we have found that support the 2 Most common reasons listed above.

Reasons a New Business FAILS

  • Lack of understanding the effort needed
  • Inadequate financing
  • Lack of planning
  • Unrealistic expectations of success & salary
  • Inability to commit
  • Unwillingness to take responsibility

A key problem for Start Up Business is that they don’t know what they don’t know.  Seeking the advice of people that can both Mentor & Lead them and their plan development helps significantly .

 

Reasons Existing Business FAILS

  • Poor cash flow management
  • Seek funding too late
  • Absence of Performance Monitoring
  • Lack of target Audience research
  • Poor inventory management
  • Failure to identify your own Strengths Weaknesses (SWOT)
  • Insufficient professional resources

Anyone who has run an Organization (Profit or Non Profit) knows how many hats you have to wear.  There are so many obstacles that come up, you become seasoned in researching and solving your own problems.  The difference between a Pass or FAIL here we have found is often a combination of 3 things.

  1. Over confidence in your own assessment capabilities
  2. Misinformation
  3. Closed mindedness

 

In post mortem interviews with owners or Executive Directors, a common response is “I should have this, or I should have that”.  Retrospection shows the same 3 conclusions listed above.  There are many other complicating issues and each case is unique, but if you are in a position where you need to do something (and quickly) to “turn things around”,  I suggest looking (in addition to Marketing) at these issues to insure you can make the most of your revenue.

Last thought – If you are just looking to increase your profit line by a few points, improving internal efficiency can add as much to your profit line as adding to your Top line revenue.

To learn more about our unique Assessment and Efficiency Services  ContactUs-Gray-Primary-16

Carpe diem!

 

 

Why Marketing alone can’t save your business

Conversations with a Consultant, Marketing, , ,

During a recent google search, I found an interesting article that listed the top 50 questions asked to “Consultants in 2016”. Literally 48/50 were related to some form of Marketing, Social Media or SEO.  While those are very important reasons to look for an expert, I am concerned(and my business shows) that many businesses are missing out on other fundamental ways to help their business.   Given National closure rates are so high for Small/Medium Businesses, do people think Marketing will save their business?  What are the top reasons a business fails and how does Marketing help avoid that?

The number one concern a business owner should have is how to maximize their businesses ability to generate revenue.

Marketing is one of the 4 most important areas to develop and can not be overlooked.  But not developing the other three can jeopardize the sustainability of a business. I have seen too many instances where an organization improved efforts to increase the customer base through Marketing, only to find the business couldn’t capitalize on the new found popularity or volume.  If your first reaction to this is “that’s a good problem”, you are wrong.  It is a problem that may hurt your business more than it helps it.  To increase revenue in a sustainable way, you need to consider building on all 4 key areas.

The 4 key areas (we call them Pillars)

Products – People – Operations – Marketing

–M.O.R.E. Business Assesment©–  by C.S.SimonsConsulting

Case in point –
A classic example is the restaurant that creates a great coupon that is hard to say no to. People come in droves and crowd the restaurant. Tables are full, the Bar is crowded and there is a wait list as long as your arm.

Successful Marketing right?

Then things start to go wrong, the food comes out late, servers become overwhelmed, orders begin to get switched around and as a result the tables don’t turn. Then the customers at tables start to become frustrated and before you know it, they have such a bad experience, they don’t want to return. People waiting for a table end up waiting twice the time they were quoted.

Perhaps the house buys a drink or dessert to appease, this calms many people but that may not work on everyone.  Customers take out frustration on your staff.  Your staff takes out there frustration on each other.  All in all, it turns out to be a tough night for that restaurant.

But the pain continues because customers who want to vent are just getting started.

Customers proceed to tell there friends what a bad time they had when they’re at work or through social media and this can linger for some time.  So while the coupon brought increased sales initially, the other areas of the business that weren’t ready for this suffered.  The servers don’t make($) what they expected due to the restaurant failing, the kitchen crew is frustrated because they weren’t set up for that kind of business, and the product quality suffered due to the volume.  Marketing people call this a successful campaign and while sales were up temporarily, they then slumped even lower than before the coupon was sent out.  Damage has been done.

We all know this story, and it can happen in all industries.

This problem was created by an over emphasis on Marketing and not insuring that other important components needed were addressed.  Generally this is a type of ad hoc marketing, and don’t confuse it with “strategy”. A Business Strategist would not only look at ways to get more people through the door, but make sure the business was equipped to handled the increase.   I have literally seen Groupon tactics destroy businesses, they will get people to your business, but it is unlikely you will make money off the new business or create repeat customers (which is what every owner  that signs up for that service wants).  I am all for Marketing.  Marketing/Advertising is to increase demand or volume, just make sure your business can meet the demand you create.

So if Marketing won’t save my business, what should I look at?

FACT:

90% of business fail due to lack of quality management

                   48% due to incompetence

                        42% due to inexperienced leadership

   -International Management Consultants, USA

The SBA, SBDC, Dunn & Bradstreet, IRS &  Census bureau will also show similar statistics.

4 ways to achieve a sustainable growth in your revenue
  1. Learn to evaluate your business.  When you are in a position of growth, expansion or even for a limited promotion like the coupon in the case study above, make sure you look at the 4 key area’s needed to generate revenue for your business.  If any of those area’s slip during a period of increased advertising, understand it will jeopardize the results you had planned.  Maintaining product standards, Quality Assurance measures, and Brand management are the tip of the iceberg to insure daily execution.  Daily execution is what your customer base will judge you by and ultimately determines everything from customer loyalty to profitability.  Much more information on these 4 areas (Pillars)can be found on our website.
  2. Don’t confuse sales with growth.  Sustainable businesses create strategies that take all 4 areas and develop each of them to meet desired goals.  Top line sales don’t always translate to growth especially if you can’t sustain that level of revenue.   Training everyone in the company to focus on all 4 areas can lead to rapid, organic growth for a company that is sustainable.  In short, develop your people and they will develop the business.  Give them systems and tools that help them achieve their job.  When systems, tools, training, and goals are all focused on developing your products, then you have something to Market.  Never Market under the “Strategy” these others will “fall in line”.  This is a common mistake and they seldom do.
  3. Don’t over rely on online development.  Unless you are strictly E-Commerce.  As mentioned above, 98% of the questions searched about consultants were for Marketing based consultants.  Yet, Marketing usually doesn’t make the top 5 reasons why businesses close.  Marketing Consultants are important in today’s business world and C.S.Simons Consulting works with several extremely valuable Marketing experts, but there is more to developing your business than a Marketing Expert can offer.  They are part of the solution, not the whole solution.
  4. Know how the pieces connect.  The business “Pillars” I refer to have overlap and it can be confusing as to how they fit together to build a business.  Further more, what is needed to support each pillar can change by industry, by business size and even business age.  Knowing what is needed to get you to the next stage is the key to growth & sustainability.  If you think all your organization needs to grow is better or different Marketing, I strongly recommend you look at the other pieces of the puzzle to.                                                               LearnMore-Red-Primary-16

All businesses need to Market.  Many outsource this for a variety of reasons and many of them are good reasons.  The point is to understand the impact of the marketing tactics to the other sides of your business before they are launched.

If you really want to increase your revenue or strengthen your business make sure you are defended against the top reasons business fail in the first place!

Carpe diem!

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How & When your Competition uses Consultants

Conversations with a Consultant, Operations, ,

Deciding whether to hire a Consultant can be challenging.  “Will they actually help the situation in the long run?” “Can’t we do this internally?”  Finding the right fit, the time of yours needed to get them up to speed,and insuring that everyone (in both organizations) is on the same path is a lot of work.  Not to mention that this will all reflect back on you, the decision maker, for years to come. These are all valid considerations but for many the process of securing the best consultant for the project is the largest sticking point.

Our survey shows that referrals from colleagues is the most popular method to hear about Consultants.  However many business owners tend to not ask colleagues about this for a variety of reasons, the primary being the competitive nature of small business and they may not want to bring up that they could use some help to business colleagues.

Help is here!

Here we will share observations and best practices on engaging consultants.  These have been collected 2 ways; through client interactions, and a survey conducted by C.S.Simons Consulting in 2015 of Small Businesses/Non Profits who have experience hiring Consultants (Firms or Independents). Our survey focused on when the businesses used a consultant and what they used them for.  Perhaps their experiences may help you.

Nearly 2/3rd s of the businesses in this survey relied on a Consultant with in the last 3 years

 

Who uses Consultants

This appears to be a common practice for businesses with less than 500 employees’ and longevity of over 6 years.  The 6th year is a milestone everyone looks for in business because the closure rate begins to drop after 5 years in business.   But even the businesses with greater than 25 years longevity in our survey showed strong support for using Consultants.  While each business listed here would use them for slightly different purposes, it was evident that there was a correlation between utilizing outside experts and business longevity.

Most common uses found in our survey;

Consultants providing an edge to Operational Effectiveness and Strategy were widely used followed closely by function experts that could be used as an “outsource” option like Accounting, Legal or Marketing.

  

How does your competition use them?

The best time to engage a Consultant is when business is going well.  This provides a very different perspective of the business and true advances can be made in efficiency, product design, or even opening up new marketing channels.  Consultants may also be used to gauge future Capital needs, Strategic Growth Planning or Board Development strategies.

 

When do you need a Consultant?
  • The most common time to engage is when there is a known problem or business seems OK, but it could be better.  The key is to find a Consultant who is capable of diagnosing the “root cause” of the problem(s) which are impacting the business.  In these situations many business people spend too much time diagnosing or misdiagnose the problem and then the situation can go from bad to worse.  To properly assess a situation a consultant may conduct Survey’s to measure loyalties (Customer or Employee), establishing Performance Monitors, or conducting Profitability Assessments to help manage product costs.
  • A Crisis situation is also a common time to call in a Consultant.  Here you need to find the right type of consultant(s) who can quickly assess and impact your situation before major changes take place.  Generally this type of problem will cost you much more money in the long run given the level of involvement you need from the consultant or resources needed.  Some Crisis situations are not avoidable and are thrust upon the business.  Labor issue’s, Regulatory issues, Public Relations crisis to name a few. Depending on the Industry this happens in, the general practice is to have a team of Consultants available to help correct the situation and insure business continuity.

Don’t be fooled by reality TV to think someone may come in and fix your business in 48 hrs!

How do you find the right one for your business?

Where does the problem exist?  One of the most common misconceptions that often lead to a higher expense is the belief that the consultant must be an expert in your industry. Yet over 60% of our survey respondents noted that Industry Experience was the most important factor when choosing a Consultant.  There are times Experts are needed and industry experience is valuable.  My point is to make sure you know what type of problem needs to be fixed before making that determination; Industry specific or general management/business practice.  The more observant as to where the problems are with in the business first and not what industry your are in, will get the problem solved quicker and more economically.  Many businesses over spend when hiring consultants because of this.  Assessment like this can be difficult for many businesses that don’t have tools or resources to do it adequately.  If that is the case, finding a good Business Analysis consultant may be the best first step.

3 Most Important points to consider

  • Do they have the right industry experience to impact your business?
  • Can they share Successes they have with this type of problems?
  • Delivery style that fits your organization?

The most important aspect to finding the “right” consultant firm for your business starts with the initial assessment/interview.  Consulting is a business of relationships and it is never about a quick sale.  This person should take a genuine concern for the situation and your people.  They NEED to be able to influence you and your people, if you don’t feel they add value from the first meeting, you may have the wrong person.  Be prepared to speak to more than one Consultant before choosing.  While both may suggest the same solution, HOW they achieve it for you or through your people may be very different. After Elvis has left the building it is you that will either look great for bringing them in or to be left have to deal with any fall out.

 

The best way to interview a Consultant?

 The single most important part of this process is looking at references or testimonies.  Experience and Knowledge base is important (and expected), but it’s the results and successes the consultant have brought for the client is really what should matter.  What a client has to say on how the consultant delivered the solution, how it was implemented and the ending quantifiable result is what you are looking for.  Websites should be used to gauge authenticity and can give insight on how the firm goes about achieving results with in their specialty.  The last important thing to look for is content.  Do they blog, have white papers or perform public speaking as a way to educate their followers.   Some create content for the sake of creating content.  It helps with Google and may look good but it may lack any real advice or insight.  Saying what has been said by 100 others recently may not add value to your situation.  Consulting is an industry of results.  Making attempts to educate, add value or guide is what you want to look for in your perspective Consultant. There should be an almost immediate impression that this person will solve your problem.

The “Simple” interview method-

  • Don’t feel you need to have the answers – Most of the time consultants are relied on for their analytical skills.  It is not uncommon when first engaging a Consultant to NOT know for what or where you want to use them.  Rely on them to run part of the first meeting and have a very open mind on the process.  Some business people feel they need to “manage” the relationship and always want it to be known they are the client.  Forming a “partner” mentality with the consultant is the best advice I could suggest.  I offer a Privacy Statement upfront with perspective clients.  It is important to feel you can show your consultant any piece of information that pertains to a problem.  The perspective Consultant should establish Trust quickly.  Then just see where the conversation goes.

 

A more organized interview method

  • Having pertinent documents assembled helps significantly.  Many perspective clients have sent me this information ahead of time (after Privacy Statement) which allows a much more focused meeting on what solutions could be offered.  If there are multiple people in the decision process, having them in the same room will often give the Consultant the most accurate picture of the problem to create a proposal from.

 

Contract?

I could go into great length as to how an agreement should look and why you want one to protect your organization, but for the purpose of this article please make sure to include these in your discussions and/or contract.  They protect both parties and detail outcomes.  Here are a few basics;

  • An accurate assessment of the situation to be addressed
  • What is the expected outcome(s)
  • Joint accountabilities
  • Detail any deliverables – systems, training, reports, etc
  • Measurements, Timelines and Milestones
  • Terms, Expenses, Fee’s – included and not included

 

Carpe diem!

 

Business PhotoC.S.Simons Consulting specializes in Management & Business Strategy, offering 25 years of successes for you to benefit from.  Offering a Shared Risk Platform – Results Guaranteed or you won’t be billed!

If you would like to discuss this in greater detail or would like to see more                                               results from the survey mentioned;

ContactUs-Gray-Primary-16

 

 

 

 

Can YOU beat earnings with lower revenue?

Marketing, Operations, People, Products, Quotes, Observations & Ironies, , , ,

Ironically, today’s earnings report from Wal-Mart proves the point I made in my Blog      “Low earnings /Low Profits – What to do?”

I have a love/hate relationship with Wal-Mart.  I often shop their begrudgingly. I would prefer to support a local business, but when I am buying toothpaste my choices are generally a Wal-Mart, Chain Drug Store, or grocery store.  There really aren’t too many local businesses to buy toothpaste from.  Wal-Mart is cheaper, and there are always other items that I get while there.  They save me time and money and there for they are a value.  I support local when possible, but frankly I couldn’t afford to buy as many things if I shopped only local and I am a typical American who wants as much stuff as possible.

Yesterday Walmart announced that 2015 Q4 revenue was down, and they expect very little sales growth for all of 2016.  Same store sales were reported to increase less than 1% in 2015. To insure they can meet or beat earnings, they have decreased operation costs and reinvested in Human Capital, choosing to focus on culture over new market channels.

Announcing the closure of 269 stores worldwide and releasing close to 10,000 workers will surely get a lot of attention.  But Wal-Mart is focusing the narrative on developing its Culture.   Wal-Mart is investing by raising the wages of it workers. This is very strategic since they have a history of Legal and Public Relations issues around wages and practices.  Improving employee engagement will help drive business into their well established retail presence.  I support this strategy, but I think they have a lot of work to do besides raising wages.

Walmart recognizes that the growth of online shopping has impacted brick and mortar and they have already begun testing new strategies to target these areas.  Experiments in the Grocery offerings (Organic Product selection & home delivery), introducing their price matching app (which is awesome), the ever expanding electronics section, and the “No Questions return policy” to name a few will go along way to exceed customer expectations and build loyalty.

So…… sales are stagnant, they are giving nearly everyone a raise, and adding to their operational costs….how is this a good plan?

Well to start, the Thursday announcement also mentioned that they beat earnings and brought in a higher dividend than forecast.  Earnings came in at $1.49/ share on a projected $1.46 and quarterly dividend was .50 on a projected .49.  At the open of today their stock is down ~4% and they have fallen ~27% over the last 12 months.

But they still had a 2% increase in dividends and profit!

What would your business do in this situation?  Can you bring in a higher profit while loosing expected revenue?  Would you give a raise to help increase store sales?

Proper planning, strategy, and vision makes the difference.

Carpe diem!

Low Earnings / Low Profits? What to DO?

Conversations with a Consultant, Operations, , , ,

Stop – Breathe – Plan

Financial Earnings have been reported lower for 8 quarters in a row for the S&P 500(source). Many economists are weary of another recession even though there are some positive signs.  But at the very least Janet Yellens recent announcement of a “mixed picture” ahead speaks to a challenging 2016 and most Financial Advisors are warning of a volatile year.   Large companies are having to do more with less to maintain their budgeted profit lines and meet earnings projections.

Because of this, Big Business has….

  • less overall revenue
  • less people to do the work
  • less quality
  • less R&D
  • less room for error
  • less money to reinvest in smaller businesses

 

Wall street has had to make changes because they need to keep investors satisfied,..

..but Main Street USA needs to do this to stay open!

It is one thing to look at efficiency to help shave money off production or operating costs, but making adjustments due to drastic loss of Top line revenue or disintegrating Market channels is a different problem that will effect the future of your business.

Sound familiar?

There is no difference between what the larger companies are experiencing verses small businesses or Non Profits.  It is simply a matter of scale, everybody has to do more with less while maintaining stakeholders.  Everybody is concerned how these changes will be noticed by their customer base or how it will effect loyalty and future revenues.

But in order to keep things moving, something has to change!

This is not a preferred business strategy, it is a reaction to the economic situation most industries are experiencing.  Large companies arguably have more “fat” to trim when necessary but small companies like “mom and pops” or even Non profits run lean as possible anyways.

To compete with this environment companies are continually searching for ways to maintain quality, customer counts and funding.

Here are 5 Key Differentiators in a business handling this well.
  1. Proactive Strategic Planning.  Too often smaller companies view this as “Crisis” management that happens after the fact rather than as a precautionary planning tool.
  2. Getting a “fresh eyes” mindset to business operations, utilizing efficiency experts, workforce development, and sometimes even a “blow it up” mentality.  If you can’t afford outside help, then utilize analysis tools like a SWOT or PEST to help with direction.
  3. Courageous Leadership.  Do the decision makers have the courage to take calculated risks with business operations or market shifts.  This is scary stuff, but once there is enough data, you need to make a decision.  Make sure you have the right data or input from a reputable source.
  4. Understanding CHANGE Management.  Once you have started something, a change will come, but is it the one you want?  Knowing how to control Change and calculate outcomes takes a proven formula and a savvy leader.  Contact me for segments of my white paper entitled “5 Pillars of Change Management” it will define the key components needed to control Change in your organization.  LearnMore-Light-Primary-16
  5. Having Business Intelligence about your customers/doners/followers.   Savvy companies know who is buying their products and what it takes to get them to buy. Knowing the Attitudes & Motivators is key business intelligence that makes for a much more targeted decision about your audience.  Too often a business focuses on who they want to buy rather than who IS buying their product(s).

Avoid being in a position to make decisions that will hurt your business, its customers and your employees because of lower earnings.  If you feel you need help, call an expert.  You have worked too hard to have to cut what is important.

Stop – Breathe – Plan – Call

Carpe diem!

 

Non Profits & Small Business – How to plan a Communications Strategy

Conversations with a Consultant, Marketing, , , , ,

Content Management, Frequency, and Target Audience are but a few of the components in a Communications Plan.  Non Profit(s) and Small Businesses need to be very strategic on what messaging they need and which tactics to use when creating a Marketing Campaign due to the amount of time needed and financial investment it takes for these to work.

Knowing the attitudes and motivators of your buyers/supporters/followers has a direct impact on measuring  a plans effectiveness.   The following are excerpts from a white paper published by C.S.Simons Consulting  in 2012 designed as a FREE resource for those businesses who recognize the need for better effectiveness in their communications but have limited funds to hire a professional Marketing firm.  There is also 2 worksheets available to expedite your Communication Planning, feel free to contact me if you would like a copies.

Why develop a strategy around a Communications Plan?
  • Planning contributes greatly to success.
  • Increases effectiveness of messaging
  • Identifies key users and followers
  • Engagement, engagement, engagement
  • Keeps entire organization focused on Strategic initiatives

What is Strategic Communication?

 Strategic communication is planned and accomplishes a specific outcome.  It is essentially a project plan for everything you may need to “Market” a product, service or business effort. Designing one will ask the right questions of you as to how you want it presented(see below).  It is designed ahead of time so your company controls the exposure and narrative that puts your product/service/effort in the best light to the people or businesses you want to see it.  Otherwise you risk the reputation and message being delivered.  Below is a checklist to help you organize a Communication Plan of your own.

  • Strategic communication is targeted to a particular audience or audiences utilizing known demographics about your customer.
  • Strategic communication is designed and delivered to produce a desired result
  • Strategic communication aims for results with the best possible use of time and resources.

Strategic communications should be tracked, with measurable performance.

Some key questions to consider at the start of the process are:
  • Where are you now and where do you want to be?
  • What will you need to do to get there?
  • What role can communication, education and training play to achieve your goals?
  • How will you learn from your experiences?

 

 Be careful! – what to avoid
  1. Communication is part of the entire Policy and Strategy implementation process.   To implement a Communication Strategy there are many projects to be prepared and undertaken. There must be an understanding of what your customer wants from you, who your customer is and where to find them.  Demographics, Attitudes and Motivators is how it is referred to with in the Marketing world.  These are addressed first prior to forming a Communications Strategy around how to effectively have that group pay attention to you.  Most business people or Executive Directors would agree with this yet this stage often receives little attention until much later on.  Often communication is considered only after plans, polices or projects are prepared which strongly reduces the potential for successful project implementation.
  2. Ad hoc communication is not effective.   There is an enormous difference between communication strategically planned and that without strategic planning.  It will miss the target audience or deliver the wrong message.  You may have very little time to get the attention of your audience, so every little effort needs to be effective.

 

FREE Checklist for planning a Communication Strategy

 Message: This will comprise a combination, of WHO you are trying to speak to, and WHAT you want them to remember or HOW you want them to act.

Timeframes & Frequency: You have to clarify if you are designing a communication strategy with long term goals, a communication plan with short term goals or a communication plan for a specific project. A Strategic Communication Plan will likely utilize all three types of communication plans and is a comprehensive approach for long term messaging.

Target Audience:  To create a master strategy, match the goals of your strategic plan to groups identified in the recent membership survey.  The membership survey results provide detailed information on demographics such as age, proximity to lake, length of membership, and communication preferences.  Use this information to choose which medium to communicate to each demographic.  To broadcast a particular message, many organizations choose multiple mediums and alter their message slightly to improve connection with a particular demographic. Much of a communication program success relies upon the content connecting with its target audience.

Budgeting:  You must consider costs when planning a single event or campaign style communication.  This needs to be in the planning phase to insure its completion.  Too often plans don’t become reality because the finances weren’t thought of ahead of time.  Include time of any staff in your estimation even though it is part of a different line item.  When you want to determine the success of a tactic, all costs must be considered.  Include any print materials, ad space, postage, graphic design, sponsorships, office supply and smallwares (table, chairs, poster board, raffle prizes, etc)

Content:  The body of the communication and the vehicle for reaction.  Utilize demographic information to “speak in a language” that the reader will understand.  Incorporate grabbing headlines, pictures or graphs whenever possible as this is a proven to increase attention and action.

Tools & Format;  what method or medium would be best suited to deliver message and achieve results.  Consider the target audience, and how to best reach them based on prior success.  If trying to reach a new target audience, which design works best for the market? Is capital expense needed for a first impression?   Is graphic designing needed for a mailing or email blast?  Print ready advertisement design?  Pictures needed for social media or press release?

Instrumental style communication – You need to be conscious of whether you are dealing with a communication campaign that is organized to raise the interest of the public, politicians and other special groups for a particular issue, or to generate support for policies or plans.

 Interactive style communication – A plan is for establishing active dialogue with certain groups and fully involving them in planning, implementing or evaluating (Feasibility study)

 Maintenance and Accountability;  to assist with daily management of any communication campaign, the creation of tools to help monitor message, frequency, placements and responsibility should be utilized.  Examples of such tools are provided in the tools section of this report.

 5 considerations for Successful communications
  1. When implementing, regularly check how feasible the plan is, and what disasters may occur.
  2. What will affect the success of the message? Which stakeholder is it designed for?
  3.  Be flexible in adapting the plan in case of shortages in money or time.
  4. What will people’s reaction be – What do they want in the communication?
  5. If the communication is announcing an event or action item, how much time is given for members to react?

 

When to use a campaign and when to use single source messaging

A campaign can be designed for virtually any application, after all, more is often better when done right.  The primary goal behind a multi-tactic campaign is to leverage each individual tactic/method to achieve greater impact with the desired message.

Some occasions for use of a campaign

  • To educate a population on a particular subject
  • To tell a story of your brand
  • Establish a dialogue
  • To create recognition of a subject
  • Public Relations
  • To display a style or belief system

Single source messaging which is a one time event through standard media such as direct mail, email, website or online posting and is designed as a “one and done”.  It doesn’t have a direct connection to either the message that LSPA has agreed to or a direct connection to the mission of the organization.  While it is important and informational, it may not lead to a call for action like those in a campaign will from its recipients.

Some occasions for use of single source messaging

  • Scheduled events
  • Confirmation of expected information
  • Thank You’s
  • Annual Reports
How Non Profits can identify the role for a Communication Plan

 To identify the role of communication it is necessary to ask:

  • What is the current Knowledge, Attitude and Practices (behaviors) of the target groups and stakeholders involved?
  • What reactions do you want the target groups and stakeholders have?

It is also important to clarify what are the desired changes in the people involved in this issue:

  • Is it to change the attitudes of people and/or organizations
  • change the mind sets – the way people look at a certain issue
  • change the way people feel about an issuer
  • change behavior? (more difficult)

To assess the role of communication in this change process it is necessary to understand if the problem is due to:

  • A lack of awareness that the issue is important
  • Negative attitudes towards the issue or the solutions
  • Lack of skills or “know how” to make a change

In these cases the different states of knowledge, attitudes and practices need different communication solutions, and communication may be used as a sole instrument.

 Frequently made mistakes in communication planning

 The objective of the communication activity is not properly defined or is too vague

  • The objectives are too ambitious to achieve
  • There is lack of knowledge of what is precisely wanted from the target groups and what is required to achieve the result:
    • e.g. is knowledge needed? new skills and practices?  
    •   e.g. do we need an attitude change from them?
  • Communication goals are set to change other people’s behavior and values without understanding how the behavior change can take place
  • The fact that people need social, economic or other benefits for any kind of behavior change is not considered when objectives are defined
  • Indicators are not defined for the communication targets/objectives, making evaluation of the outcome difficult.

 

For more on this subject or to discuss additional ways to help your organizations Ability to Generate Revenue, contact C.S.Simons Consulting.

 

Carpe diem!

 

 

Non Profits & Small Business – 3 Keys to Finance Basics

Conversations with a Consultant, Operations, , , ,

Businesses of all sizes will eventually need to prepare and manage three basic financial statements.  They are included in any comprehensive Business Plan and I will show you how they are commonly used for business strategy and routine Operations Management decisions.  These are the Profit & Loss Statement (P&L), the Balance Sheet, and the Cash Flow Statement.  I admit these can be both intimidating and confusing yet the sooner a business can use these as a compass the sooner they can be financially independent.

They will be asked for by any Business Analyst, Loan Officer, or Financial Advisor of your business so what are they?

Defined

Profit & Loss Statement (P&L) –  Also called an income statement.  This is a consolidated record showing how much you have spent (expenses) and how much you have made in revenue.  The two are calculated showing what your net income is over a specific period of time.  The period of time these show may depend on the industry you are in and typically are either by calander months, fiscal period(typically 28 days), or weekly.  It is also very common to have quarterly P&L showing a consolidated series of numbers that help you determine if it is time to sound the alarm or not.

Balance Sheet – This is a dashboard of your companies overall health.  It provides a summary of the businesses assets, liabilities and net worth.  Essentially the balance sheet tells you what you own and what you owe.  Assets are resources your business controls such as cash, equipment, buildings, furniture, inventory and money owed to you.  Your Liabilities will be the obligations you owe to others such as payroll, taxes,  Accounts payables or loans.  Your net worth is what is left over.

Cash Flow Statement –  This report demonstrates how cash has flowed in and out of your business over that time period.  Typical software programs to produce all of these would be Quicken or  Peachtree if you do your numbers your self (opposed to an Accounting Firm) or for smaller or really savvy businesses Excel works just fine.

How you use them – the 101

P&L – Depending on the scope of your business the P&L Statement can be very complicated or extremely simple.  The key is to have it inclusive of money going in and out of the business over a set period of time.  All expenses should be categorized so that at a glance you can tell why and where they are up or down from a previous period or the “forecast” budgeted amount .  Similar with revenue.  The more information the better because this tool will not only help track history, but it will help you predict future spending in most areas.  The expenses are commonly broken down into two categories; “Controllable and Non Controllable”.  Examples of non controllable expenses would be rent, loans & taxes.  Controllables are pretty much anything you can say “NO” to (much more on that another time).  This report will subtract the expenses from the revenues and show your “net profit” at the bottom.  This is a very important report for the Operations Management team to utilize and if used properly it can be very effective in containing costs and contribute to a positive cash flow for the company.   But it is not all inclusive and needs to be used in conjunction with the other two forms.

Tip – A “best practice” I have all my clients do is when using a P&L is to have all expenses broken down as a percentage of total revenue that is expected.  Manage by using the percentages and not necessarily the dollars on the form.  Ex:  (Forecasted Revenue is always 100%).  Say labor is expected to be 15% of your revenue $.  Then lets say Revenue is down a little.  The manager can either adjust labor or not during that month.  Well if labor comes in at 14% of  projected revenue, you may still be ok in that category.  If labor comes in at 20% because the manager did not use the P&L to make adjustments, then you have lost money.  Same goes for every line on the P&L.  The more information you have, the better your daily decsions could be!

Balance Sheet –  This report is generally broken into a few areas.  Assests will be broken into categories depending on how accessible they are or how quickly you may expect to use them.  “Current or Fixed”  is common terminology.  Current assets, often referred to as “Liquid” means you could use it today if needed (cash, accounts receivables, or short term investments) and are usually listed first.  Followed by Fixed assets which may be a building or equipment you own.  While you could free up money invested in these it may take some time to access it.  Under Fixed assets you are likely to find “Depreciation” which is the amount of money estimated to be used up from the fixed assets. Meaning,  if you had to sell them today, what would they actually be worth?  If you subtract the depreciation from the Fixed assets you will determine how much is available or “net Assets”

Liabilities are listed next and they are everything that the business owes to someone else.  Accounts payable, taxes, loans, wages, etc.  Similar to assets these are also categorized by time frames, although Liabilities are listed by due dates.  If your business has a invoice that has 90 days on it, it won’t be listed on your P&L, but will be listed on your balance sheet.

Both the assets and the liabilities are then subtracted from the assets to determine a businesses “Net worth” or “Owner Equity”.  In short it is a snapshot of what you would have left if you had to sell the business today after you paid everything off that you owed.  Most would agree, it is a good idea to keep an eye on this figure!

Cash Flow Sheet –  depending what type of business you are will determine the frequency in which you use this report.  Any organization that may have an unpredictable revenue stream will rely on it more frequently.  As one Non Profit client put it, “this report essentially shows you how much air you have left”.  This report will not only list what cash is expect to come in and go out of the business, but it calculates a time frame of how long the business could continue should things change drastically.  Generally measured in days weeks or months depending on the size of the Balance Sheet numbers.  In a larger corporate environment this is only reviewed by the most senior level Executives but for Small Businesses and Non Profits, who tend to live “day to day” this can be a helpful report to review quarterly.  Because using just a P&L, like so many companies do, can be deceiving.  It may look like you made money during a specific period but other expenses not appearing on a monthly P&L may come to terms.  Remember the 90 day invoice I mentioned earlier?  Well that may also need to be paid which can throw off your cash accounts.  A Cash Flow sheet would show what will be due and help you plan for it so you don’t become over extended.  As mentioned this is particularly important for many small or seasonal based businesses and pretty much all Non Profits.

As mentioned most software packages on the market will take a lot of the work out of creating these important reports for you.  All it takes is a small time investment to load all the information on a daily basis.  If you prefer to hire an Accounting Firm to get you started, I work with several I would be happy to recommend.  I guarantee that using these standard Financial tools will improve your businesses ability to generate revenue.

For more business basics click here for information on our Business Boot Camp Workshop

Carpe diem!

Ask an Expert – Creating a “Hiring model”

Ask an Expert, Conversations with a Consultant, Operations, People, , , ,

Stephanie asked-

“I need to hire for a new retail venture in 2016.  When I heard you speak, you referred to a “Model” to use when recruiting.  Where can I find those?”

The “model” needs to be created by you specifically for a position or department.  It is a fairly easy process to develop and one that will pay off in the long run.  It helps build a sustainable workforce well suited to help generate revenue.    A hiring model captures the key strengths and attitudes (skills, personality, work experience and even core values) of an ideal candidate for a particular position.  Stephanie you need to literally make a list ahead of time of what will be needed by a candidate to succeed at this job in your environment.  You can then formulate questions for you or your team (open ended ofcourse) to ask during the interview or simply use the “model” as a litmus test when reviewing a candidate.

Let me break these areas down further and show you how I have used them on Hiring Models and or looked for them during Interviews.  Be sure to read my 3 tips at the end!

Skills –

Hiring Model -really look at what is needed to get the job done proficiently.  Skills simply illustrate someones capabilities and knowledge base.  If you need a person to be extremely detailed, don’t just look for that skill listed in their work experiences, look for it IN the person.

Examples (customer service, computers, time management, organizational, communication, detailed, analytical, etc)

Interview – perhaps their work isn’t a great example of what they can provide. Lets say they also volunteer and run large events for a charity or church, that takes a lot of organization, attention to detail and coordinating,  so they may very well be capable of performing what you need.  That person may have not brought this experience up because it didn’t seem relevant to the job to them or they thought bringing up religion opened the wrong door.    So listen to what they offer in “icebreaker” questions, because you often get great information you can follow up on.  Asking someone to “tell me about yourself” can provide you very useful information that is technically unsolicited (which protects the interviewer).  People often have many skills that may not be used in past work experiences but may help your business.  You challenge in the interview is to find them!

-The better you know what it takes to complete a given job, and the better you can break it down to a set of skills, the higher the chances of finding someone who can excel at their job.

Personality & Attitude-

Hiring Model  – culture is important and culture isn’t found in your book of Policies and Procedures, it is found in the heart of the business on a daily basis.  Personalities help drive your culture and diverse personalities can either strengthen or break down the teams dynamic.  Personalities and attitudes are an important part of your businesses ability to generate revenue.   We have all been on those teams where either someone else on it became our best friend or we found a person that we couldn’t stand and made us want to leave the job .  So how does it fit in the Hiring Model?  Well if you are adding to an existing team,  you need to have an understanding of the interpersonal dynamics on your team.  What type of person do they want to work with?  While it has nothing to do with completing the job, it has a lot to do with how comfortable that person will be with the existing group of workers.  If the person is uncomfortable or makes others uncomfortable, quality and productivity may go down and turnover may go up.  I am not suggesting clones, but similar or complementing styles.  Building a new team for a new venture like Stephanie mentioned is a great time to build a synergistic team because you are hiring everyone at the same time.   Read a case study where this had a huge impact.

Interview – One great way to assess this is to have a “key” employee(s) interview the candidate also.  If all parties think they can work with this person,  you can feel much more comfortable with the “fit”.  Lastly, as a manager you do not manage peoples personalities you manage or correct their behaviors.   You only get one chance to make a decision based on someones personality and that is in the Hiring process.  Terminating based on personality can get a business owner into legal hot water.

Work Experience –

Hiring Model – this one really depends on what job you need filled.  Regulatory or certified level employee’s need a certain level of experience to show they can perform and are competent.   But for most positions, if you focus on a candidates experience you are really focusing on the level of training the past job(s) provided this person and the management staff of each location.  I have seen people work their way through levels of management that weren’t really qualified to even be a supervisor on my team.  Titles are nice but don’t hire primarily on the titles someone has attained.  Many hiring managers falsely assume that experience implies competence.  Competency is what you really need to look for in this category.  In forming your Hiring Mode think about two things;

  1. What do you need this person to be competent at?  Which of the skills you listed will this person need to use most frequently?  Pick the top 2 or 3 and focus on those.
  2. think of the Top companies you may want to see candidates from, or key positions that are similar to what you have available.  You will find particular companies that share Hiring, Training & Development styles with your company, and those typically provide good candidates.

 

Interview – Form questions around how they got those jobs, what they felt they learned while doing them, and how those experiences help them be a better employee today.  Quiz them a little in areas they need to know to do this job to help gauge competency.  Usually in this area you can also get a good sense of what they are like to work with by asking questions around co workers or how they responded to a supervisors feedback.

When assessing professional experiences I always look for progression.  Do they aspire to move up the ladder?  or are they comfortable doing the same thing day in and day out?It is important to match this to your position yet ambition is important to a degree in all candidates because you need your new hire to have ambition in there new position.  Do they seek resources when faced with a challenge or take an easy way out like “just do as I am told” or my favorite “not my job”.  Clearly you need to insure their level of ambition is realistic also, someone who thinks they will be promoted next month may not be what you need!  History WILL repeat itself here I promise.

I strongly recommend questioning about jobs they have had that may not even be pertinent to what you want this person to do.  Ask “how they achieved, why they wanted that, what did they take away from it” and you may be very surprised in what you find.  But do not disqualify someone just because of certian job experiences, this can be a huge mistake for an interviewer.  Sometimes great people have to accept jobs at mediocre companies and often large companies hire and promote people for the wrong reasons, it is just to hard to tell which it is on an application you are looking at.

Lastly, consider how long it may take in the positions listed from a candidate to be competent and what the persons next roll was.  Ultimately think of what accomplishments you would like your candidate to have as it relates to there Work Experiences as a gauge.

Values –

Hiring Model– probably the single most important part of a Hiring model in my opinion.  What are the core values of your company ?  Core values should be a guiding force behind all hiring and firing in your company.  You may have 3 or 15 of these, figuring our which ones may be most beneficial to the position you are hiring for can help build a great  Hiring model.

Some examples of commonly found “Core Values”.

  •  If hiring for a service based position, you may want a person to exhibit “Loyalty” or “Passion to serve others”.
  • Someone who will be working with the public and excepting cash needs to be “Customer Focused” yet firm enough  to “Protect company interests” in the event of a small confrontation.
  • Someone in sales needs to demonstrate “Patience” yet assertive and “Willingness to listen” is critical to close a sale.

If you don’t have these printed on your wall somewhere, jot down single words or small phrases ahead of time to help you keep focused during an interview and give others a better idea of what type of person you are looking for.  Another method that works is to have a tick sheet with you when you interview.  Have all the Core Values as column headers.  Every time you feel someone exhibited that value in your interview(s), mark it down to review later.   Get people talking and telling stories about work, school, or even volunteer work  and you will probably find common links.  The more you hear a particular value the more genuine it usually is.

3 tips on matching your model employee to candidates

  1. Sometimes the best employees are the ones with little “work experience” and huge similarities with the values, personality, and attitude you need in this position.  
  2. Skills can be taught, and I would rather teach someone how to do it then someone else doing it.
  3. Training on Values, Attitude, and Personality won’t happen.  People generally don’t learn these, they only conform to company policy.  Having a natural fit will benefit the workplace greatly.  Assuming you have the means (time, resources, systems, etc) to provide skills train, this can help you build a sustainable workforce the helps generate revenue for your business.

Questions?