The Most Significant Capital Challenge for Businesses

Puzzle2 WebThe answer may surprise you…
If you were asked to name the most significant capital challenge for businesses today, you might answer:Dwindling market share

Reduced profits
Need to shrink overhead
Strategic workforce cuts
Surviving the downturn

The Society for Human Resource Management (SHRM) engaged the Hay Group to conduct an online survey covering 13 human capital issues. Findings cited are 6,024 global and national companies in over 32 different industries including Agriculture, Aerospace, Entertainment, Healthcare, Hospitality, Publishing, Retail, Wholesale and Utilities. Company grouping sizes were:

  • Small 100 – 1000 employees
  • Medium 1001 – 10,000 employees
  • Large 10,001 – 75,000 employees
  • Jumbo > 75,001 employees

Executives surveyed consisted of Human Resource (HR) and other executives such as CEOs, COOs, CFOs and CAOs.

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The Early Bird...

You’ve heard the old saying, “The early bird gets the worm.” The newer version goes like this: “The early bird gets the worm, but the second mouse gets the cheese.” When it comes to hiring, earlier is better, particularly in our current hiring market.

If you want the “cream of the crop” for your company, give credence to another familiar term:

Hire Slow – Fire Fast. Now is the time to begin your hiring strategies and take the time to hire slow, and here’s why.

The country is flooded with good talent. Top talent that got caught up in the “lay off, let’s cut back, don’t spend anymore money than we have to” frenzy. It’s true that people are often out of jobs due to circumstances they created; but the worm has turned (pun intended) and lots of good talent got caught in the cross fire of today’s circumstances.

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Some Challenges of Change

Resistance to change among top executives during a change may come because someone has his or her own agenda, it may be a fear of change, it may be due to a fear of loss such as the loss of one’s job, or of losing power.  Another challenge is the client’s experience with previous changes, particularly if the experience was a negative one. Resistance to change can be put into three general categories. These categories are technical, holding onto the status quo, especially if a lot of money is involved having reached that status quo and efforts to maintain it; political, the loss of power; and cultural, the desire to stick to current systems and procedures.

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How Strong is Your Bench?

Will your business be ready the next time there is a crisis?

Being caught in a weak position when a crisis hits is something no one wants. The time to make sure your company will weather whatever the future holds is now. With careful, targeted recruitment and internal development, you can stack your bench with talented people who may have been out of reach just a few short years ago.
The time is now to look at positions that are the most difficult to fill or that have a high likelihood of becoming empty and assess your current leadership lineup to see who might fill these vulnerable slots. Start with the ones that have a deep impact on the business and would be the most difficult to do without. If losing someone would mean scrambling to find a replacement as soon as possible, there should be a highly qualified understudy in the wings.

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Is There a Guarantee in Your Future?

 A couple of weeks ago, I attended a meeting of professional consultants. One discussion centered on a question a client might ask a consultant and that is, “Can you guarantee your work?” The consultant initiating this discussion stated that the reply always given is, “Can you guarantee that you’ll do everything I recommend you do?”  It’s unlikely that a client will do everything the consultant advises and even more unlikely that the client’s employees, including the executive team, will do everything the consultant or even the CEO advises. Given such circumstances, is a consultant foolish to offer money back or any level of guarantee?
In conducting some brief, non-scientific, research for this article, I found that consultants offer a variety of guarantees.

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Talent, Time and Place

Talent Time and Place

Talent Team WEBThis year, how are you going to fill the bill for your organization to provide  innovative products and services, high performing work teams and higher profitability? Today, market demands are changing at a head-spinning rate. This requires your organization to have greater flexibility. Stakeholders are looking for greater ROI, the need for talent with specialized skills and employees who want meaningful work are examples of other changes affecting businesses. Is your organization keeping pace? Are the right people in the right positions to meet the needs of conducting, leading and implementing the strategic changes needed to beat the competition?

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Rebuilding Teambuilding

DivRow WebBuilding a team from scratch is a rare privilege that few CEOs get to experience. Inheriting an executive team is more the norm. The functioning state of a team can be ubiquitous.  A newly acquired team could be at any stage of the forming, storming, or norming process. It could consist mostly of people who like to take action, or people who are skeptical. It could include a majority of those who like to analyze every detail, or those who chase the next shiny, new management fashion, process, or business trend.  Not every leader has the ability of accurately judging others. How can a CEO build on such chaos?

It used to be that teambuilding was composed of exercises just to help everyone get along and tolerate one another. For example, one exercise might be for each team member to tell two truths and a lie about oneself. Then, everyone else has to guess which fact is the lie. Another exercise is to tell the team about some item you brought with you and explain why you brought it and what it means to you thus providing “deep” insight into your psyche or personality. Obviously, this is a facetious observation. The point is that while these types of exercises might have their place and purpose, cultivating a highly functioning team with true insight and understanding requires a more scientific approach.  

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Culture Club

Culture Club was a rock group popular in the 1980s. The group originated in the UK. However, they were able to compose and deliver music that had a broad appeal. Companies facing a merger or acquisition face this same challenge in needing a culture with a broad appeal. 

Culture has been defined as the sustainable competitive advantage that an organization can control. Culture surrounds the raw competency of an organization. In other words, how the organization does what it does and how well it does it. So how is culture manufactured and where does it originate within an organization?  

Boy George was the leading influence in establishing the culture of the successful group and in setting certain fashion trends. The culture of an organization is often created from the top leadership. However, surprisingly enough, it can come from other areas within the company. For example, oftentimes middle management can create the culture. This can result when top management is weak. Weak leadership can even be dangerous within leadership itself. For example, many of you will no doubt remember the Daimler-Chrysler merger.

 

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