Monthly Archives: February 2011

Take Your Business to the Next Level

Is your business stuck in one place or, worse, sliding backwards?  Like humans, businesses have stages of development.  Each stage presents particular challenges and opportunities.  How you navigate these critical transition points will determine your business success and your personal satisfaction.

A company I worked with was eager to grow.  Management envisioned an ever-expanding business at the top of its field.  The company boosted the marketing with an active radio and print campaign.  It also advertised for and hired more staff to handle the workload.

After a few years, the expansion became a nightmare.  Client work backed up.   Many of the recent hires didn’t have the talent that the founding partners enjoyed.  It wasn’t satisfying for the partners to correct other people’s errors and fret about poor quality.

What happened?  The company tried to grow by simply doing more of what it was doing, adding more clients and adding more staff.  It didn’t develop the systems for recruitment and managing the work that it needed to support the next stage of growth.

The prescription for the company to break through the bottleneck is one that many firms can follow.

Hire the best for your core.

Identify the key roles in your business.  Use a recruitment process that will attract and select the best people to fill them.

In order to manage the company at a level of 25 people, the company needed four very highly qualified people.  Each needed an expert level of knowledge and the ability to motivate and supervise other team members.

The company had followed standard recruitment procedures.  The problem is that these average recruitment efforts yielded only average candidates.

For the critical hires, the company had to do better.  It refined its quality standards and upgraded the opportunities and rewards for the top positions.  Then, the partners networked with the best people in the field to find prospects who weren’t looking for jobs and used skill and style assessments to choose superior players.  Higher quality colleagues also rekindled the partners’ enjoyment of the business. Read more »

Value as a Motivator

Employees Are Motivated When They Feel Valuable and Important

Another method of motivation is to fill a basic human need – the need to feel valuable and important. Mary Kay Cosmetics has a reputation for motivating their sales force, and at the front of this effort are the many things they do to make their people feel special. Here are some ideas they use to make their employees feel special.

1. Listen to people. People feel important and perform better when they think their opinions are valued. Have a weekly production meeting including the project managers, estimators, owner and accounting staff. Progress on jobs, billings and a variety of issues should be discussed. Everyone has a report to give and everyone listens to each other. Each individual knows that their contribution really counts and so they are motivated to do their best.

You can see the importance of this concept and some ways to implement this in your business. There are also ways to extend this to the field. If each superintendent realizes the value of their performance to the success of the job and company they will be motivated to perform at a higher level. This can then extend to everyone working on the job. Having weekly tailgate meetings (which are often already required for safety discussions) gives workers an opportunity for input on how things could be done better.

2. Don’t give responsibility without authority. Giving employees responsibility will make them feel important, but only as long as long as they also have the authority to fulfill their responsibilities. This may be difficult, especially when your business is growing and you have to turn loose decisions you previously made. However, for the business to be successful this must happen, and if it is done right the employees will grow into the job.

3. Let people know you appreciate them. People are motivated when they know they are appreciated – plain and simple. There are a few little “tricks” you can use – such as noting the “hire date” of your employees and sending a card or some other action that is taken on the employee’s anniversary date with the company or on employee birthdays.

4. Put people on a first class basis. One way you can do this is to provide tools for your employees which will make their work easier and more efficient or which results in a more attractive finished product. Give office personnel the ability to enhance forms such as invoices and statements. Whenever they print these they will be reminded that this is a first class company; the type of company where they want to be. The same is true of tools in the field. If these are old or out-dated then employees will be frustrated. If you are on the lookout for new methods and tools, look objectively at their potential and then try out those which are promising then employees will feel that this is a progressive company, not one still working in the ‘Dark Ages.’ Employees do take pride in their work and if the client shows employees that their work is important enough to look “first-class” they will be motivated to perform.

Another way to make employees feel important is to tell the world they are important to you. You can show your client how to do this. You may publish a quarterly newsletter which is sent to clients and prospects as well as employees and vendors. One feature in the newsletter is an “employee of the month” type article with the employee’s picture and an article about that person.

Please contact us if you would like to learn more about instituting a comprehensive training process.  Thank you.

Fixed Assets, Entering as Journal Entries

When entering fixed assets using the 1-3 screen, the correct accounts should be used for debits and credits.  Typically, the accounts might be something like this:

Account Debit Credit
18010 – Ford Truck (Purchase Price) 20,000.00
28010 – Ford Truck Loan (principal only) 18,000.00
10000 – Checking (down payment) 2,000.00
_________ _________
Totals


20,000.00
20,000.00

The important things are that:  1) Debits = Credits;  2) there is an asset account which declares the actual asset value of the vehicle (purchase price) and a long-term liability account which declares the principal loan amount.

When a monthly payment is made again the loan, it would typically look like this:   This can be accomplished in the 1-1 screen by displaying the two debits in the grid.  Or is you really want to run it through A/P and pay an invoice, display the two debits in the grid of the A/P invoice screen.

Account Debit Credit
28010 –  Ford Truck Loan Payment 200.00
68010 –  Loan Interest 34.77
10000 –  Checking (actual check amount) 234.77
________ ________
Totals 234.77 234.77

When the asset is depreciated, your CPA should give you a journal entry to accomplish that.

There other possible scenarios, such as when the interest and principal change every month.  To implement that, you would need a schedule from the lending institution showing the principal and interest monthly over the life of the loan.  This summary covers the basic idea.  Please let me know if you have a specific different circumstance you want to implement.

Please contact us if you would like to learn more about instituting a comprehensive training process.  Thank you.

Security

Companies eager to tighten up their information security perimeters should focus not on technology but on teaching their employees how to say ‘no’ per ex-hacker gone good Kevin Mitnick.

Mitnick became a cyberspace legend after his success in penetrating networks at major telecommunications firms — including Pacific Bell and Motorola, Nokia, Fujitsu, Novell and NEC — led the FBI on a 15-year manhunt that ended when his 1995 capture put him behind bars for nearly four years. Older and seemingly wiser, he now uses his skills for good as a Los Angeles-based security consultant, stopping in Australia briefly to address the crowd at the annual Toshiba event.

Many companies invest heavily in security technologies to protect their networks, but Mitnick was quick to point out that even the tightest technological barriers never stopped him; rather, some carefully planned social engineering – or even a bit of Dumpster diving in one’s spare time — can often be far more effective at penetrating the weakest security link at most companies: their people.

“What you can find in the trash is simply amazing,” said Mitnick, holding up a “souvenir” from his earlier days: a printed directory listing the name, phone number, email address, direct reports and other information about every employee in the company. “People throw out notes, drafts of letters, printouts of project documentation they’re working on. In some cases they even write down passwords and access information, or calendars that list every person that person has talked to or met with”.

This information provides invaluable assistance to bad guys keen to worm their way into a company by, say, impersonating an employee and calling the internal help desk, or dropping into the site and pretending to be a business associate. Because people hate to say no even when they’re suspicious of a well-presented stranger, Mitnick says, smooth talking has gotten many a hacker far closer to a target company’s network than days of brute-force technological attacks.

Modern technology is an enabler for such attacks: if a hacker can worm his way into a conference room for just a few minutes, for example, an wireless access point can be plugged into an out-of-the way network access point, providing an open back door into the network even when the hacker is parked outside the building.

The solution to such security vulnerabilities is easy to understand, but often hard to implement: develop clear security policies for issues such as treatment of strangers, handling of information and access to physical facilities by visitors. In suspicious circumstances, teach employees to fall back on those policies rather than trying to ad-lib their response or give in to their natural reticence to accommodate the hacker’s requests.

Even a simple request for contact details, so that a company employee might call back the person requesting assistance, can be enough to make many hackers turn tail and run.

“We can’t expect our employees to be human lie detectors,” Mitnick said. “One of the most difficult challenges in corporate cultures is getting people to modify their politeness norms. Social psychology has found that people should generally pay attention to their own discomfort; if something doesn’t feel right, or it’s nagging at their gut, they’d better check it out. They’re not always going to remember a security policy, but what you want is to come up with some very simple protocols that will trigger employees to refer to security policy. The only people who are going to object to this are the bad guys”.

Please contact us if you would like to learn more about instituting a comprehensive training process.  Thank you.

Responsibility as a Motivator

Giving Employees Control And Responsibility For Their Production

It’s one thing to show someone the historical data on what happened – it is a giant step forward when you can give them the tools they need to effectively control the outcome. One of the most effective tools you can provide to employees is Scheduling.

First of all, scheduling gives everyone more control over the job. By having the ability to see what impacts changes will have on the schedule the project manager now has the tools to make decisions that are logical and likely to generate the desired results. The benefit of this in motivating employees goes beyond the monetary one, although a job that is managed properly to finish faster will usually be more profitable and this will provide even more motivation to someone whose compensation depends on profit.

Beyond that, however, scheduling can give employees the sense of control that will provide a motivation of its own. It is hard to be motivated to work harder or smarter if you are out of control. A good example of motivating employees by giving them more control is through communications with Subcontractors. If you have ever watched a fellow contractor spend half his time on the phone – being interrupted every few minutes so he can call a sub and let them know he needs them on the job (frantically) then you know what being out of control does. Watch for these people – they are the ones who call everyone on Sunday night. And compounding the problem is that they spend so much time, energy and concentration on these calls that they do not have enough left for more important tasks – these urgent (last minute) items have them permanently occupied.

But if you use Scheduling, you now have an easy-to-use method of projecting when those subs are needed and a communication tool that puts the project manager back in control of the project. Give them a project schedule at the beginning of the project. Then update them on a weekly or semi-monthly basis. Faxing reminders/notices to individual subcontractors a few days before they are needed on the project. You may then wish to follow up with a reminder call the day before the schedule shows them starting work on the job. This will ensure that they are ready and available when needed on the job.

And something else has happened – we have raised the “level” of that person’s job. By removing the busywork of all of those calls we have freed up some time that can be spent on the more important tasks in the day – the proper analysis of what is happening on the job. Instead of a day filled with frantic and basically uninteresting calls, this person now has a job that requires a little more thought and is certainly a much better job.

Please contact us if you would like to learn more about instituting a comprehensive training process.  Thank you.