Diagnosis: There is a Problem

Doctor-Diagnosing-WEBWhen you have a cold, it is easy to diagnose the problem from the symptoms you suffer. You cough, your head is stuffy and you have no energy. In business, there may be clues that a problem exists. However, diagnoses may not be as evident as what happens when we contract the common cold. The good news is that information abounds on solving problems. There are even problem solving models that act as a guide if one doesn’t know where to begin on solving a problem. So let’s look at some steps that can help solve business problems.

To begin, someone in the organization has to have a clue that a problem exits. Of course, more than likely the symptoms show up first, for example, poor sales, a lack of productivity, staffing problems and maybe even chaos. However, seeing the symptoms doesn’t always guarantee the diagnosis. Diagnosing business problems takes a few steps.

  1. Recognition that a problem exists is first. Leaders who put their heads in the sand and ignore problems are part of the problem and of course, this causes the problem to fester. Business failure can follow. Therefore, this is an important step.

Business

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Anticipating Problems

Einstein-Quote-WEBOne constant in business is problems. There are two kinds of problems, the predictable and the unpredictable. Unpredictable problems are events such as earthquakes, illnesses, death, storms, and the like. Yet, even considering some of these, we all know that we have the possibility of becoming ill or running into weather that can change our plans especially if we are traveling and this is particularly true if we are traveling at certain times of the year. Having disaster plans in place can at least alleviate some of the consequences of major, unpredictable disasters. So how can businesses better anticipate other problems in order to be proactive in either preventing them or solving them more quickly and efficiently when they do occur? Here are some ideas to consider.

1.
Trends

Studying trends in marketing, sales, economics, and the like helps leadership to create plans that include changes. Therefore, when these changes begin to occur, the organization is better able to adapt, stay on track and prevent the main problem from becoming worse and additional problems from developing.

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Resistance to Change

StopWEBChange can instill fear in the hearts of employees. A strong communication plan can help alleviate those fears. However, this presents a quandary for CEOs. Leadership often debates how much communication is too much. Given the chaos that a lack of communication can cause, over communicating is rarely a problem. This is especially true in the face of drastic organizational change such as mergers and acquisitions, leadership change or market shifts.

The CEO who takes on a more protective stance as opposed to a bolder, builder stance will only fan the flames of fear. Employees will shut down, taking the success of the change down with them. Change is essential for growth. Therefore, in the face of change, it is important for the CEO’s role to be that of a change agent. Leaders always need to be more builder-like and confident in how they approach change. Further, they need to be extremely good at managing the expectations from growth. This helps make change more bearable. Moreover, creating a plan to manage change and getting all employees involved in building that plan will take the fear out of change and illustrate or model to employees that change is indeed manageable.

The wise CEO develops a culture that embraces change. This requires that the CEO be intentional in communicating all aspects of what the company is going through, while being willing to share not only the good things about that change but the challenges and the obstacles that change will create. To ensure that this is the case in your organization, here are some critical questions to ask.

  • Is there a builder-like mindset in alignment with the protector-like mindset?
  • Do managers meet one-on-one with direct reports weekly?
  • Does the CEO address the company once a month to share insights?
  • Do employees feel comfortable bringing up different views?

Resolving the Challenge of Resistance to Change

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Opportunities for 2014

Look-for-Opps150WEBOpportunities will abound in 2014. As the title of this article indicates, it is about how we can make 2014 and every year a success by taking advantage of opportunities. Notice though, the title doesn’t have the word “new” in it. Why is this?

As part of my executive coaching business, I offer ESL Business Coaching. As you no doubt know, ESL is an acronym for English as a Second Language. I have the opportunity to view many perspectives from people who are native to countries such as Chile, China, Cuba, India, Israel, Japan, Mexico, South America, The Middle East and Romania. Here’s an example of opportunity from their perspectives.

One of my Japanese clients works all day at his job. Once a week, he drives 30 miles to our session from work. Our sessions last from 6:00pm to 8:15pm. When we finish at 8:15, he then drives the 30 miles back to his job so that he can participate in conference calls with his co-workers in Japan. During one of our sessions, I offered that because her works so many hours every day, he is losing the opportunity to see his two children grow up. He agreed, but indicated that he must remain loyal to his employer as the company provides a living for him and his family. Clearly a different mindset than we Americans project. The discussion turned to the opportunity to find another position where he isn’t required to work so many hours. He will be going back to Japan soon and he confessed that he must also remain with this company as the job market is so tight in Japan and the opportunity to switch jobs is not as prevalent as here in the United States.

Motivation

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Chaos is a Friend of Mine

Money TunnelThe quote in the above title, is by the singer-songwriter, Bob Dylan. Chaos can be a friend in business as well. OK, when your head stops spinning, continue reading. CEOs start businesses because they are good at something. They think they can do something better than others. Or, they see a need in the market and fill that need. The point is that there are a myriad of reasons people start their own business. However, a new business is a world of struggle.

A new business struggles to define roles, identify a target audience, refine and sometimes reinvent products and services. These are the very causes of chaos. Other causes of chaos are gossip, lack of teamwork, selfish agendas, a lack of establishing expectations and failure to manage expectations that have been established. The same chaos can occur in established organizations as well. Moving from one stage of growth to the next is another major contributor to chaos. Here are two specific times this occurs.

CEO

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Recovering From Lost Expertise

people puzzle WEBAccording to a recent study by the Society for Human Resource Management (SHRM), turnover varies by industry with the food & service industry along with the arts and entertainment industries and retail having the highest turnover with an average of 28% between them. Those having the lowest turnover are high-tech, government, associations and utilities. The average among these industries is only 9%. When calculating losses due to turnover, organizations must consider why they have turnover. For example, according to SHRM’s study, hospitality, arts/entertainment and retail may have seasonal or cyclical turnover. Some industries pay lower than others and the first offer of even a small increase in pay will lure employees away. If yours is an industry where the skill gap is growing, turnover can be a critical factor in organizational growth.

Another cause of high turnover is employee morale. Feelings of being undervalued can often trigger low morale. The CEO will find it more difficult to interact with each employee on an individual basis as the company grows and more employees come on board. Therefore, it becomes essential for a CEO to stay vigilant about how managers align employee performance around company goals. This one act alone will help clear the field of those who are not on board with organizational goals and ensure a better fit for jobs leading to higher morale and better retention.

CEO, Business Growth

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Core Values Lead to Competitive Success

Core ValuesWEBThere must be something in the water. The CEOs of two organizations, one a financial institution and one a marketing company conveyed to me that they do not believe in having mission and core value statements. Neither company is doing well. The financial institution has a fractured executive team due to a recent merger and the marketing company has been bleeding revenues heavily for the past two years. Coincidence? Maybe, maybe not. Mission and vision statements are valuable. Core values are priceless.

Core values are a company’s essential and enduring tenets – a set of general guiding principles, not to be confused with specific cultural or operating practices. It’s what people believe, deep down in their fundamental belief system.

Typically, a business leader starts the company, finds customers, hires people and before long, a real company is born. In the beginning stages of growth, there aren’t a lot of people and the energy and presence of the leader is enough to fuel the company’s growth. The leader acts a certain way with customers and sometimes talks about how important integrity, for example, is when hiring new people.

As the company grows beyond the leader’s span of control, not everyone is able to feed off the CEO’s energy any longer, nor can the CEO have direct contact with each employee. By the time a company grows to 20 or more employees, if solid values are not set in place, behavior issues will so inundate the organization that the CEO will wish for a much smaller organization. Here’s how to establish your company’s core values.

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Are You Taking Training Seriously?

Trg Budget WEBAs a former corporate trainer, I know well that during tough economic times, the budget for training is often the first cut and the last to be restored. Many organizations do not see the value in having a training department, a trainer or even the relevance in hiring an outside trainer. Without training, your organization is likely to experience the following.

High Turnover: Untrained employees lead to poor performance, broken processes, frustration and good people leaving.

Inefficiencies: Having poorly or untrained employees operating machinery leads to poor maintenance, leading to expensive repairs or replacement costs, overruns, a negative impact on your customers and even disastrous safety issues.

Culture Impact: A lack of training or poorly executed training will eventually erode culture. This happens because people are not performing quality work, respect and values are lost. This affects every facet of the organization including customer service. Soon your hard won customers will be seeking a company to work with where they are valued and respected.

Financial Set Backs: All of the above circumstances will produce a negative impact on your bottom line. No organization that can afford to allow such circumstances to develop.

Critical Questions

The way you answer the following questions, will determine how seriously you take training.

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