Self monitoring systems are good for recognition

Performance Management is coming under critical fire because the complexity of some of the processes is beginning to over-ride the fundamental principles. However, as Hogan Armstrong knows, elements of Performance Management work well for both employees and managers. Hogan is an IT Service Engineer for a large multinational organization. He spends the majority of his working life away from his home office but his Self-Monitoring System lets both him and his manager know how he is performing. Any personal objective important enough to be included in a performance plan should be measurable in one way or another. One of Hogan's principal objectives is: "To follow up each service call after two working days to check system functionality and customer satisfaction. Where problems are revealed, I will take responsibility for immediately reporting the fault and initiating a remedy within 24 hours." This can be tracked objectively and simply. Hogan keeps a register of service calls, customer follow-up calls and Emails on the network that he can refer to and update. His manager also has access to the file at any time. Although some organizations have sophisticated Customer Relations Databases that contain this information and even flag up calls to be made each day, a simple paper system or spreadsheet can work just as effectively. The main guideline here is that these objectives are agreed and so your team-members ought to be motivated to monitor their own progress throughout the year. If objectives are important, which they should be, there ought to be a Self-Monitoring System for each objective that makes up-to-date information easily available to whoever needs it in the organization. In companies where Performance Management is well established, individuals and teams take great pride in displaying their Self-Monitoring Systems. To them it is a form of publicity. "If we are good at what we do, then everyone should know and there is more chance of us being recognized as key contributors to the organizational goals." In one clothing manufacturer's buying department, they were suffering from greater than average sickness absence. The manager knew this but the buying team was not aware that it was a problem. Now, because the manager recognized that sickness absence and managing the workload around this was his responsibility, he undertook to display a measure of "lost days" for his department. The chart simply had an anonymous line graph showing the number of days per week lost to sickness. Two weeks after displaying the chart, keeping it updated and not doing much else, the lost days in his department reduced to zero and stayed pretty much that way. This manager was originally very skeptical about Performance Management. After this experience he said "Surely if you pay attention to anything, it gets better". Absolutely right! And by displaying the "Lost Days" chart he was broadcasting to his team that sickness absence was a key issue for him as a manager. Without talking to him about it, they changed their behavior and helped him to meet his objectives.

Advantages of time management

The advantages of time management include reducing stress, gaining time, reducing avoidance, while promoting reviews and eliminating cramming. Another advantage is that managing time helps us to stay motivated while we avoid procrastination. The trick to successful time management is setting up goals that work, while having an awareness of those goals and prioritizing your list of goals. When you set up an effective time management plan, you are growing and upholding a personal commitment to yourself, with the ability to be more flexible. When you have a great time management plan, you are giving yourself an individual chance to, to generate a timetable that works to suit your busy caseload. When you create a good plan, you will soon find time to do all the things that matter most to you in life. In addition, when you have a good time management plan, you are saving your health. Plans have a schedule timed, which includes all the activities you are responsible to handle. Your Master Timetable should include all the most important activities you are responsible to handle. It is important that you modify this schedule according to your time changes. When you set up a Master Timetable, you will need to list the priorities first, and work your way down to the least important tasks. It is important that you follow as you write the tasks first listed. In other words, if you state on your Master Timetable that you need to write up some documents for your business, then do this task first and proceed to the next task. Try to avoid handling multitasking at once, unless it is your job and you are sufficient, and have laid out a time management plan. You will also need to include meals, sleep, family, friends, yourself, and other tasks if you they are a part of your time management. By setting up a Master Timetable, you can work out your time scheme by working through the list on the time chart. Try to avoid skipping a scheduled task, or procrastinating, since this will only delay your plan. It is important to keep in mind, that time is essential. When we waste time, we are wasting money. After you have laid out a suitable Schedule Timetable, you will soon learn that your motivation has increased, while your progress is moving ahead. In addition, you will soon find that your stress level is at a normal state. When you are not focused, or do not have a time management plan, you are only hurting yourself in the long run. Most people without a time management plan often suffer with poor health, insomnia, and other discomforting issues. Some people even find themselves in court waiting for the judge to say “You are now divorced.” So you can see that time management is important since it affects everyone around you, but most of all, it affects you. A final tip: Exercise and eating right plays an essential role to time management, since when you feel good, you work well under a management plan.

Branding and employee communication

In the I-HR newsletter, moderator Beth N. Carvin asked if the idea of branding could be used effectively to improve productivity and retention. This is an expanded version of my response to her question: Yes, I think you can use the idea of branding as a tool for improving employee productivity and retention. Let's approach it from the perspective of a manager communicating with his or her subordinates. If the manager sets out to build a positive reputation over time and over a series of messages, then we might say he or she is embarking on a branding exercise. It's an attempt to create the trust and goodwill necessary to have messages both accepted and acted upon. Marketers branding products do essentially the same thing: send out a series of messages designed to build a positive reputation over time. And, when messages to employees generate trust and goodwill, then communication sent after that can be used communication to increase productivity and retention. For example, in publishing employee newsletters for my corporate clients, I've always emphasized the need to provide articles and information of value to readers (the employees). By doing that, employees come to see their company newsletter as a useful resource, and not management propaganda. That, in turn, opens the door to asking employees to do or not do certain things (safety measures, for instance), and getting a positive response from them. In a sense, referring to this process of building trust and goodwill as branding might be just a semantic exercise. However, I think that when we put a name to a process, we make it easier to comprehend and follow. And, that may be the real value of referring to branding in the context of employee communication. Let's also look at this issue in a broader sense, too, because it's important to remember the different roles of communication in productivity and retention. Three generic types of communication figure in our thinking: instructional, contextual, and motivational. Instructional communication provides information that helps others do their jobs more efficiently. Contextual communication provides the bigger picture, which should help recipients do their jobs more effectively. And motivational communication shows recipients the benefits of responding as we've requested. To build trust and goodwill, the instructional communication should be accurate, timely, and functional. The people who receive our messages should be able to act on them, and know they can act on them with confidence. The contextual communication should be relevant and helpful. It should put the issue into a framework that helps others understand how specific tasks or issues fit into the strategic flow. And, the motivational communication should focus on them, not on you. It should show them the importance of their contributions. In summary, think of branding as the process of building trust and goodwill, a process that makes it possible to increase productivity and retention through communication.

Why try factoring

When you engage in factoring or selling your accounts receivable, you're accepting less money for an asset than you might expect to get for it. But there are great reasons for factoring and here are 10 of them: 1. The ready cash you'll get by factoring will help your company to grow. If you have $2000 ready cash in the bank, but you've invoiced for $100,000 down the line this will lead to $75,000. Think about it: the ability to hire more necessary staff, buy needed equipment, and have stock on hand could make a real difference to your business. 2. Ready cash can help you pay your suppliers sooner, helping you negotiate discounts and have a larger credit line than you had before. 3. Factoring your current invoices gives you the capital to take on large, deadline-oriented contracts and orders that you'd otherwise have to pass up because of slow cash flow. 4. Those large accounts are worth money. Having cash on hand now allows you to offer longer payment terms to the new large accounts. 5. Out of marketing comes business. With ready cash you can get from factoring, you can buy billboards, newspaper and radio ads, and even have direct mail campaigns for those timely marketing campaigns. 6. If you've invoiced too much and now are finding yourself in a cash crunch, factoring will help you to meet your current expenses right away, reducing the chance of not being able to pay your bills. Nothing is worse for your company than not meeting payroll; you lose your best employees, and the ones who stay are probably going to be seeking other employment. 7. You can improve your balance sheet with working capital without incurring debt. 8. Pay off limited lines of credit, or lines of credit that are costing you too much in interest and fees. 9. Factoring out slow debts allows you to skip the unpleasantness of making payment collection calls; instead, the factoring company does this for you. 10. If you factor out part of your accounts receivable, the factoring company will give you a free analysis and comparison of what payment terms and credit amounts your customers really qualify for. This is invaluable information for conducting business in the future. In addition to these ten great reasons to try factoring your accounts, there are a few reasons never to factor your accounts. If you're concerned about late and slow payments without a good reason such as; you've given a thirty-day due date to someone and they take forty days to pay, then factoring is not a good idea. Instead, you should change your business practices to give a shorter due date. If you think your customer won't pay, factoring their invoice out is dishonest, and will win you no points with a factoring company. Do you really want to ensure you have a bad reputation with people who trust you with a large amount of their capital? If you're in a dispute with a customer and you decide factoring out your invoice is a way out, you're wrong. The customer could simply refuse to pay the factoring company and then sue you, or worse, tell everyone else what a horrible company you run. Face your disputes head on. If you are dissatisfied with the customer, don't do business with them again. Factoring to sustain a non-profitable business without some hope of profitability in the future is a sure way to drive your self into bankruptcy. Instead, you should let your business die a dignified death. Factoring so that you can remove cash from your business is a bad idea, akin to taking out a dozen credit cards so you'll have money now. When you engage in factoring, you're essentially agreeing to a profit loss; you should only do this if you stand to make more money in the long run.

How to cultivate the trust factor in business

In today’s highly competitive economy, it is difficult to maintain a significant market advantage based on your professional skills alone. Developing trusting relationships with your clients is vital to your business success as well. No matter what business you are in, the most powerful value-added contribution you can make to any business relationship is the trust factor. The trust factor is even more critical in today’s business climate with the level of trust in Corporate America continuing to be at an all-time low, and suspicion of “all things corporate” remaining on the rise. To make matters worse, large corporations and small businesses alike continue to use antiquated techniques, such as gizmos and gadgets, to try to win over new clients. When instead, they should be trying to address the heart of the matter by utilizing trust-building techniques that will most effectively resonate with consumers and new prospects. Clients and prospects are in search of trust in their business relationships, but building trust and credibility does not happen overnight. To cultivate trust, it takes the risk of being open with clients and prospects. This enables them to perceive you as a real person—one with strengths and weaknesses that come into play as the relationship develops. When trust is reciprocal, you will find that your confidence in others is rewarded by their support and reinforcement of what you also stand for as a business entity. What is Trust What is trust? Trust can be defined as a firm belief in the honesty of another and the absence of suspicion regarding his motives or practices. The concept of trust in business dealings is simple: Build on an individual’s confidence in you and eliminate fear as an operating principle. Letting Go of Fear Let go of fear, which restricts your ability to relate to others. Letting go frees you of behavioral constraints that can immobilize your emotional and professional development. Fear of rejection, fear of failure, fear of success, fear of being hurt, fear of the unknown—all these are roadblocks to developing and growing a trusting relationship with clients. Let go of your fear of losing an account or not having the right answers. Leave all your fears at the client or prospect’s doorstep. Other critical steps in cultivating trust are knowing who you are and knowing your potential value to your clients. The relationship that forms because of this can have a tremendous impact on your sales. People don’t just buy from anyone. They buy from people they can trust. The rapport and credibility you can establish with the trust factor go a long way toward building a client’s confidence in your ability to meet his business needs. Trust has both an active and a passive component in a business relationship. The active feeling of trust is confidence in the leadership, veracity, and reliability of the other party, based on a track record of performance. The passive feeling of trust is the absence of worry or suspicion. This absence is sometimes unrecognized and frequently taken for granted in our most productive relationships. Building Trust With Care So how do you build trust with clients? First, you need to care about them. Obviously your clients care about your knowledge, expertise, and accomplishments. However, they care even more about the level of concern you have for them. Successful trust building hinges on four actions: engaging, listening, framing, and committing. The trust factor can be realized once we understand these components of trust and incorporate them in our daily lives. Engaging clients and prospects occurs when you show genuine concern and interest in their business and its problems. Maintain good eye contact and body posture. Good eye contact signifies openness and honesty. And your body language and other forms of nonverbal communication speak volumes about your attitude toward them. By the same token, you want to be cognizant of your client’s or prospect’s eye contact and body language. Listening with understanding and empathy is possible if you think client focus first. Let the client tell his story. Put yourself in his shoes when you listen to his business concerns, purpose, vision, and desires. Show approval or understanding by nodding your head and smiling during the conversation. Separate the process of taking in information from the process of judging it. Just suspend your judgment and focus on the client. Framing what the client or prospect has said is the third action in trust building. Make sure you have formed an accurate understanding of his problems and concerns. Confirm what you think you heard by asking open-ended questions such as “What do you mean by that?” or “Help me to understood the major production problems you are experiencing.” After you have clarified the problems, start to frame them in order of importance. By identifying the areas in which you can help the client, you offer him clarity in his own mind and continue to build his trust. Committing is the final action for developing the trust factormunicate enthusiastically your plan of action for solving the client’s problems. Help the client see what it will take to achieve the end result. Presumably, what you have said up to this point has been important, but what you do now—how you commit—is even more important. Remember the old adage “Action speaks louder than words.” Show you want this client’s business long termplete assignments and projects on budget and on time. Then follow up with clients periodically to see how your partnership is faring. In the final analysis, trust stems from keeping our word. If we say we will be there for our clients, then we should honor that commitment by being there. Trust results from putting the client’s best interest before our own, from being dependable, from being open and forthcoming with relevant information. It is impossible to overestimate the power of the trust factor in our professional lives. Truly, trust is the basis of all enduring, long-term business relationships.

Manage your project on time every time

As both an active project manager and a project management trainer, people often ask me what are the fundamental aspects to successful project management. Whilst there have been many great books written on the subject, I always summarise what I believe to be the best practices at the heart of good project management. Define the scope and objectives For any project to be successful you need to understand what the project is supposed to achieve. Suppose your boss asks you to organise a campaign to get the employees to donate blood. Is the aim of this to get as much blood donated to the local blood bank? Or, is it to raise the profile of the company in the local community? Deciding what the real objective is will help you to determine how you go about planning and managing the project. The project manager also needs to define the scope of the project. Is the organisation of transport to take staff to the blood bank within the scope of the project? Or, should staff make their own way there? Deciding which activities are within the scope or out of scope of the project has a big impact on the amount of work which needs to be performed during the project. An understanding of who are the stakeholders is also crucial if you are going to enlist their support and understand what each person expects to be delivered from the project. Once you've defined the scope and objectives, you will need to get the stakeholders to review them and agree to them as well as agreeing who should be on the list of stakeholders. Define the deliverables To achieve the desired outcome from the project, you must define what things (or products) are to be delivered by the end of the project. If your project is an advertising campaign for a new chocolate bar, then one of the deliverables might be the artwork for a newspaper advert. So, you need to decide what tangible things are to be delivered and document in enough detail what these things are. At the end of the day, someone will end up doing the work to produce the deliverable, so it needs to be clearly and unambiguously described. Once you have defined the deliverables, you will need to have the key stakeholders review the work and get them to agree that this accurately and unambiguously reflects what they expect to be delivered from the project. Once they have agreed, you can begin to plan the project. Not defining the deliverables in enough detail or clarity is often a reason why projects go wrong. Project planning This is the time when you define how you will achieve the desired outcome of the project embodied within the objectives and definition of deliverables. Planning requires that the project manager decides which people, resources and budget are required to complete the project. You will need to decide if you will break up your project into manageable phases, decide which products will be delivered in each phase, and decide the composition of your project team. Since you have already defined the deliverables, you must decide what activities are required to produce each deliverable. You can use techniques such as Work Breakdown Structures (WBS) to help you to achieve this. You will need to estimate the time and effort required to complete each activity, dependencies between related activities and decide on a realistic schedule to complete the activities. It's always a good idea to involve the project team in estimating how long the activities will take since they will be the ones actually doing the work. Capture all of this into the project plan document. You also need to get the key stakeholders to review and agree to this plan. When developing the project plan, a project manager is often under pressure to produce a plan which meets the (unrealistic) expectations of some of the stakeholders. It is important here that the project manager comes up with a realistic schedule - one which he/she thinks is realistic to achieve. You will be doing nobody a favour if you succumb to pressure and agree to deliver the project in a totally unrealistic schedule. Communication Even the best made project plans are useless unless they have been communicated effectively to the project team. Everyone on the team needs to know exactly what is expected of them, what their responsibilities are, and what they are accountable for. I once worked on a project where the project manager sat in his office surrounded by big colour print outs of his latest plans. The problem was, nobody on his team knew what the tasks and milestones were because he hadn't shared the plan with them. Needless to say the project hit all kinds of problems with people going off and doing the activities which they deemed important rather than doing the activities assigned by the project manager. Tracking and reporting project progress Once your project is underway and you have an agreed plan, you will need to constantly monitor the actual progress of the project against the planned progress. To do this, you will need to get reports of progress from the project team members who are actually doing the work. You will need to record any variations between the actual and planned cost, schedule and scope. You will need to report any variations to your manager and key stakeholders and take corrective actions if the variations get too large. There are lots of ways in which you can adjust the plan in order to get the project back on track (rearrange the order of tasks, assign tasks in parallel if the variation is small, or add more staff to the project or reduce the scope if the variation is very large). All projects require the project manager to constantly juggle three things: cost, scope and schedule. If the project manager increases one of these, then one of the other elements will inevitably need to be changed as well. So, for a project which is running behind schedule to recover so it can be delivered to it's original planned schedule, the budget might be increased by employing more staff (although this invariably never achieves the desired result of reducing the time left to complete the project), or the scope will need to be reduced. It is the juggling of these three elements - known as the project triangle - that typically causes a project manager to tear their hair out in frustration! Change management All projects change in some way. Often, a key stakeholder in the middle of a project will change their mind about what the project needs to deliver. On projects of longer duration, the business environment has often changed since the start of the project, so assumptions made at the beginning of the project may no longer be valid. This often results in the scope or deliverables of the project needing to be changed. If a project manager simply accepted all of these changes into the project, the project would inevitably be delivered late (and perhaps would never ever be completed) and would inevitably go over budget. By managing changes, the project manager can make decisions about whether or not to incorporate the changes immediately or in the future, or to reject them. This increases the chances of project success because the project manager controls how the changes are incorporated, can allocate resources accordingly and can plan when and how the changes are made. Not managing changes effectively is often cited as a major reason why projects fail. Risk management Risks are any events which can adversely affect the successful outcome of the project. I've worked on projects where some of the risks have included: staff lacking the technical skills to perform the work properly, hardware not being delivered on time, the control room being at risk of flooding in a major thunderstorm and many others. Risks will vary from project to project but it is important to identify the main risks to a project as soon as possible and to plan the actions necessary to avoid the risk, or, if the risk cannot be avoided, to at least mitigate the risk in order to lessen its impact if it does occur. This is what is known as risk management. Do you manage all risks? No, because there could be too many to manage, and not all risks have the same impact. So a simple way is to identify as many risks as you can, work out how likely each risk is to occur on a scale of 1 to 3 (3 being the worst), estimate its impact on the project on a scale of 1 to 3 (3 being the worst), then multiply the two numbers together. The result is the risk weighting. A high risk weighting is the most severe risk. Just manage the top ten risks i. e. the ones with the highest risk weighting. Constantly review the risks and constantly be on the lookout for new risks since they have a habit of jumping up at unforeseen moments. Not managing risks effectively is also often cited as a major reason why projects fail. Summary So, in a nutshell, these best practices are the main things that I would expect all project managers to do. They are applicable on all projects big or small. Project management is not rocket science. Applying best practices on your project cannot guarantee that your project comes in under budget, on time and exceeds all the expectations of the stakeholders, but applying them will certainly give you a much better chance of delivering your project successfully than if you don't apply them on your project.