Mary L. Erlain's Blog, page 32

Delegation – A Key Success Factor

There are many reasons entrepreneurs state for not delegating – It takes too much time to explain or I can do it faster and better myself or This is too critical to delegate. Unfortunately, if you allow these reasons to guide your approach to delegation, your business will never grow to its fullest potential.

A fundamental law of nature that’s every bit as absolute as other scientific laws of nature is the law that Bandwidth is finite – you only have so much time in the day. Another way to say it is Bandwidth does not increase based on need – no matter how much you want it to. This situation exists in businesses of all sizes – from the solo entrepreneur to Fortune 100 companies. To overcome this condition, one must learn and practice the art of delegation.

Delegation, not Abdication  

Many executives delegate like this. They say, “James, would you take on this project? It has to be done by next Thursday. Thanks.” That’s it. Then, when the job comes back incomplete, they are infuriated. What happened? They left out accountability. They neglected the structure for making sure things happened according to plan.

Delegation means more than simply giving assignments to others. It means giving another party a certain degree of discretion that’s not inherent in their role – the right to make decisions that are officially tied to your role and for which you are ultimately responsible.

Another way to think about delegation…

For the solo entrepreneur is “Outsource everything but your core competence.” Here’s an example – You’re a management consultant and you need a new logo. You could do it yourself because your computer came with Photoshop and you like to do graphics or you could hire a graphic designer to do it for you. Look at the economics – Your billing rate is $150 per hour. It takes you three hours to do a logo. The designer is charging $150 for the logo design. Not delegating this task cost at least $300 more – why “at least?” – because if you engaged in business development or networking during those three hours, you might lave landed a lucrative project worth far more than $300.

This example illustrates the reason why you should delegate or outsource – It frees up your time to do what only you can do – that’s your highest value contribution.

Looking at the act of delegation in a company larger than one person…

There are six essential components to think about when delegating:

Give the job to someone who can get it done – This doesn’t mean that person has all the skills for execution, but that they are able to martial the right resources. 
Communicate precise conditions of satisfaction – Time frame, outcomes, budget constraints, etc.; all must be spelled out. Anything less creates conditions for failure.
Work out a plan – Depending on the project’s complexity, the first step may be the creation of a plan. The plan should include resources, approach or methodology, timeline, measures, and milestones. Even simple projects require a plan.
Set up a structure for accountability – If the project is to take place over the next six weeks, schedule an interim meeting two weeks from now. Or establish a weekly conference call or an emailed status report. Provide some mechanism where you can jointly evaluate progress and make mid-course corrections. This helps keep the project, and the people, on track.
Outline the range of authority – Describe the level of initiative you expect the subordinate to take in terms of problem-solving. You may ask subordinates to do one of the following when they encounter unexpected problems:

“Ask me what you should do.”
“Recommend a solution, then I will tell you what to do.”
“Act, and then let me know immediately what you have done.”
“Take initiative, and report only routinely.”


Get buy-in – Often time frames are dictated by external circumstances. Still, your delegate must sign on for the task at hand. If you say, “This must be done by next Tuesday,” they have to agree that it is possible. Ask instead. “Can you have this by Tuesday?” Whenever possible, have your delegate set the timeline and create the plan. You need only provide guidance and sign off.

Not everything can be delegated…

Here’s a few things that should not be delegated:

performance feedback
disciplinary actions
politically sensitive tasks
confrontations arising from interpersonal conflict

The only point to delegating something is if it frees you for things that create greater value. Don’t give away the hiring function if you are spending your time fiddling with the corporate web site. Don’t hire a Sales VP, if you are spending your time on purchasing. The greatest leverage you have is in leading your company. Spend your time on that.

Michael Shapiro, E Group Partners, Inc.

The post Delegation – A Key Success Factor appeared first on Peak Development.

Running Your Business During An Economic Down Time

The business experiences its ups and downs. This has been true where political and social unrest meets up with a pandemic. Not all businesses are struggling, many are booming. If your business is experiencing stress…

Here are a few things I’ve seen work in the past:

Be open with your employees. Don’t keep them in the dark as to business conditions. Too many “closed-door” meetings can really spook a company’s workforce.
Ask your employees for suggestions. Make them part of the “solutions team”. They will often know where corners can be cut or duplicate procedures eliminated. Your employees are not just your employees but your business partners. There’s no one who wants to see you stay afloat more than your employees.
If you have to make workforce cuts, do it rationally and compassionately. Of course, you hate laying people off – you’re not a “bad” person – you’re a business person with the responsibility for keeping the enterprise going.
Work with your vendors. They’re in the same position you are. Instead of taking 60 days to pay an invoice, offer part now and part later. Again it’s being straight with all of your stakeholders.

I’m not advocating 100%, unfiltered information, but something that will communicate an authentic disclosure and a willingness/desire to work together. These are opportunities to forge stronger relationships with existing stakeholders and new ones with others.

Michael Shapiro, E Group Partners, Inc.

The post Running Your Business During An Economic Down Time appeared first on Peak Development.

Is Coaching Effective?

Some research findings… You be the judge.

Research by the International Personnel Management Association (IPMA), the results of which were published in January 2001. They concluded that “ordinary training typically increased productivity by 22%, while training combined with life coaching increased productivity by 88%”


“Between 25 percent and 40 percent of Fortune 500 companies use executive coaches” Recent survey by The Hay Group, an International Human Resources consultancy


Michigan-based Triad Performance Technologies, Inc. studied and evaluated the effects of a coaching intervention on a group of regional and district sales managers within a large telecom organization. The third-party research study cites a 10:1 return on investment in less than one year.

The study found that the following business outcomes were directly attributable to the coaching intervention:

Top-performing staff, who were considering leaving the organization, were retained, resulting in reduced turnover, increased revenue, and improved customer satisfaction.

A positive work environment was created, focusing on strategic account development and higher sales volume.

Customer revenues and customer satisfaction were improved due to fully staffed and fully functioning territories.

Revenues were increased, due to managers improving their performance and exceeding their goals.

“..business coaching, a trend that’s exploding among small businesses and entrepreneurs nationwide. It’s estimated that up to 20% of American small businesses are using them, up from 4% just four years ago.”- Chicago Business


“Employees at Nortel Networks estimate that coaching earned the company a 529 percent “return on investment and significant intangible benefits to the business,” according to calculations prepared by Merrill C. Anderson, a professor of clinical education at Drake University.” –Psychology Today Jan. 2003


Results of a coaching poll of mostly FORTUNE 1000 companies: The respondents were executives from large companies who had participated in either “improvement” or “growth” oriented coaching for 6-12 months. The survey demonstrated that the participants valued the coaching at 6X the cost paid by their company. So, an $18,000 executive coaching program investment generated value at approximately $108,000.-Fortune Magazine (Fortune 2/19/01)

Michael Shapiro – E Group Partners, Inc.

The post Is Coaching Effective? appeared first on Peak Development.

Converting a Gripe into a Goal

Redefining Problems to Make Them Solvable

How gratifying is it to listen to people’s gripes?

Often, complaints are presented to the listener as overwhelming troubles. By the very nature of how they are presented, they sound insurmountable.

“There is no such thing as an unsolvable problem,” says Vistage speaker Mike Murray. “But there are ways of defining a problem that make it unsolvable.”

Often, it’s the way we frame a problem that makes it appear to be impossible to tackle. When we redefine it, we open new mental pathways to solutions.

Murray has come up with a system that walks people through the process of turning a gripe into a goal.

The Five-Minute Gripe-to-Goal Solution

You can start simply. Murray recommends distilling the concern or issue into one sentence.

“Whatever situation comes to mind, write one sentence about it,” he says. The sentence must begin with one of the following phrases:

“My frustration is that …”
“My gripe is …”
“My difficulty is …”

Next, take the same situation and describe it again. This time, your sentence must begin this way:

“My real concern is …”

“Any time you have a concern, you also have a wish,” explains Murray. “So take that concern and write about it as a wish.” The sentence should begin this way:

“What I’m really wishing for is …”

Having thought through your wish, you are now prepared to state your wish as a goal.

“Therefore my goal is to …”

“Your goal may be identical to your wish, or it might be: ‘What would I settle for from my wish?

Therefore my goal is HOW to …,’

and that becomes a definition of your problem.”

“You haven’t adequately addressed the problem until you’ve defined the problem as a goal to be reached, Murray says.

Remember: Any solution that does not take you to your goal is not — by definition — a solution.

Putting the Gripe-to-Goal Plan into Action

Murray says this reframing exercise helps to refocus problems for yourself — and for your employees.

“Have your employees fill out the “Turning My Gripe into a Goal” worksheet taking them through this exercise before they come into your office. That way, you will start your conversations with identified goals you can work with,” Murray recommends.

Or, keep copies of the form at your desk to help you walk the employee through the exercise while in your office.

“If your employees don’t get any constructive response to the frustrations of trying to meet those goals, they may turn to harmful goals,” warns Murray.

“When there is a gap between what you hoped, needed, wanted, assumed, expected and desired and what is, a lot of frustration — and even anger — can surface. When those feelings in an employee are not listened to and addressed, the employee may engage in harmful and destructive behaviors.”

By Michael Shapiro, E Group Partners, Inc.

The post Converting a Gripe into a Goal appeared first on Peak Development.

Have to have a difficult conversation? Think CPR

To help hit the right target when you need to have a “difficult” conversation with an employee,  use the acronym “CPR.” The first time a problem comes up, talk about the Content, what just happened: “You drank too much at the luncheon, became inebriated, started talking too loud, made fun of our clients, and embarrassed the company.” The content of a problem typically deals with a single event.

The next time the problem occurs, talk Pattern, what has been happening over time. “This is the second time this has occurred. You agreed it wouldn’t happen again, and I’m concerned that I can’t count on you to keep a promise.” Pattern issues acknowledge that problems have histories and that histories make a difference.

As the problem continues, talk about Relationship, what’s happening to us. Relationship concerns are far bigger than either the content or the pattern. The issue is not that others have disappointed you repeatedly; it’s that the string of disappointments has caused you to lose trust in them. You doubt their competency, you don’t respect or trust their promises, and it’s affecting how you treat one another. “This is starting to put a strain on how we work together. I feel like I have to nag you to keep you in line, and I don’t like doing that. My fear is that I can’t trust you to keep the agreements you make.”

If your real concern is around the relationship and you discuss only the pattern of behavior, you’re likely to be dissatisfied with the outcome, and you’ll have the same conversation again later.

Michael Shapiro, E Group Partners, Inc.

The post Have to have a difficult conversation? Think CPR appeared first on Peak Development.

Can Your Company Pass a Human Capital Stress Test?

In the past, the Federal Government required many of the country’s biggest banks to assess the viability of the capital the banks held. One of the reasons the Fed did this was to evaluate the processes and systems in place surrounding their assets. For a bank, cash is their lifeblood. So what does this have to do with Human Capital?

In most entrepreneurial companies, the employees – Human Capital – are one of the most important assets. According to an article by Will Helmlinger of The Resource Development Group, “the cost to replace one Customer Service Representative earning $18,000 annually is nearly $58,000”. A study evaluating the effects of the US Family Medical Leave Act found that “turnover costs for a manager average 150% of salary, including tangible costs of hiring new workers and relocation, and intangible costs such as the new worker’s inefficiency and lost productivity while the job is vacant.”

Consider also, that being in a state of rapid change – either increasing or decreasing – challenges a company’s ability to maintain an effective culture and workforce. While there hasn’t been a lot of growth these days, there has been more than enough downsizing. There’s no doubt that being laid off is bad. In a different way, being left at the company takes its toll too – the worry that you’ll be next, the uncertainty of how your job has changed, and the disconnect from real information coming from management.

Here is my recommendation for a Human Capital Stress Test:

Review your employee’s job descriptions – with your employee. Acknowledge how their job or role may have changed.
Review your company’s performance evaluation system. If you’re still doing annual reviews, call it your annual chat because there’s no way to address performance over the course of a year. At best, you may cover the past month or two. I recommend at the very least, doing quarterly reviews. More importantly, is to create a culture of feedback – both good and bad – that occurs throughout the year.
Take a look at your organization. Are there holes left by departed workers? If new people are filling these roles, do they have, and know that they have the authority to do the job.
Lastly, look at the way information is communicated to your employees. Does the word of bad news spread because you’ve been in a succession of closed-door meetings. Your employees would rather know the reality of the situation than be “protected” from it until the very last minute.

If you take these steps and acknowledge the value you have invested in Human Capital, then when the economy does rebound, and it will, you won’t be starting from scratch to hire and train a competent workforce.

Michael Shapiro , E Group Partners, Inc.

 

 

The post Can Your Company Pass a Human Capital Stress Test? appeared first on Peak Development.

Getting started in your business…

Or Don’t Spend a Dollar When a Dime Will Do

Starting small is a slower path, but it’s also a safer way of building both sustainable business and a long career as an entrepreneur. Plenty of well-known companies have started small. Space inside Kinko’s first store was reportedly so tight that founder Paul Orfalea had to roll the copier outside to make room for customers. Ben Cohen and Jerry Greenfield delivered pints of their ice cream to local grocery stores in a beat-up VW Squareback wagon. 

How Starting Small Can Help You Succeed:

It can limit the size of your mistakes.
Starting small will force you to learn resource frugality – preventing inefficiencies from entering your operation.
It can give you a competitive advantage.
Your lack of funds may force you to redirect your venture in a positive direction.
It allows you to maintain a higher percentage of ownership.
It will keep the shut-down costs low.

You must convince yourself you can do more with less. Be willing to scrounge, beg, barter, or trade to get space, materials, equipment, or services. 

Getting Space: In the beginning, you should acquire prime real estate only when it’s essential to the business model – not to support your ego. 

Getting Machinery and Equipment: Instead of buying new, see what you can find at a discounter, secondhand shop, flea market, or rummage sale. Examine carefully whether you really need specific equipment, then decide whether to buy or lease.

Marketing: Many very successful Web sites have found nontraditional marketing approaches to be highly effective. If more traditional marketing is needed, try to cut expenses as much as possible. You should be constantly thinking about no-cost ways to market your company. 

Controlling Expenses: Fly only coach, stay at budget hotels, and rent only compact cars. Sam Walton controlled expenses by instituting a rule that expenses should never exceed one percent of the company’s purchases.

Finding Initial Capital: There are several rules to follow when gathering initial capital for your venture.

Here are three:

Dip only modestly into your nest egg.
Debt is a common source of capital for many companies.
If you need to borrow a small amount of money, try not to get it from friends or family members because there would be too much emotion tied up in the money.

Michael Shapiro, E Group Partners,Inc.

The post Getting started in your business… appeared first on Peak Development.

Buried in Resumes???

One might think that filling a job vacancy in this economy is a piece of cake – so many people out of work – how hard could it be? Well… a client called the other day from Salt Lake City. He needed to replace an IT Director who left suddenly due to a bad accident.

Several days ago, he put a job posting up on CareerBuilder and Monster. Now he had almost 300 resumes to consider and the clock was ticking loudly – corporate wanted a decision made within 3 days. He had no idea how to approach the task in such a short time frame.

Here’s the system I recommended he use… By far it’s not the only system – It’s just one that’s worked for me.

Print all the resumes. I know it’s a terrible waste of paper and ink but compared to the drain on your eyes, back, and neck trying to read them all on-screen, it’s a fair trade-off.
The first thing to look at is the location – where does the candidate live. Most likely you won’t want to bring in out of town candidates – too costly either for you or the applicant – so out of town or country go immediately to the “NO” pile. Local candidates read on.
The next thing to look at is the appearance and appropriate professionalism of the resume itself. You are looking at an example of the kind of work this person would do for you if hired. Some more resumes will go to the “NO” pile.
If there’s an education or credential requirement, go straight to that section of the resume. There’s no point in spending time on candidates who aren’t fully qualified.
Now it’s time to read the content. Is the experience relevant? Has the person “hopped” jobs? Do the dates leave any questionable gaps? At this point, write questions on the resume then classify it as belonging in either the “A”, “B”, or “NO” pile. Don’t agonize – you can change it later as the bar gets raised and what you initially thought was an “A” becomes a “B”. Remember, “A” is fully qualified and very interesting. “B” is good in most areas but lacks something.
Now that you’ve made it through all the resumes, turn your attention to the “A” pile. Read them again. Rank them in order of 1 – 12. Above 12 goes to the “B” pile. You’re now ready for the phone screen. 3 or 4 will fall out here. What’s left is your interview pool.

In my mind, it’s not rocket science. It is, however, a systematic way to create criteria for a process of elimination.

Michael Shapiro, E Group Partners, Inc.

The post Buried in Resumes??? appeared first on Peak Development.

Four Ways To Uncover If A Candidate Is a Good Fit For Your Company

Wouldn’t it be nice to ask one question that uncovers at least four areas of your candidate’s general personality, giving you an idea of their overall behaviors, traits, and values?

Well, you can. On your next interview, guide the conversation towards personality and ask, “Tell me about a time when a co-worker gave you advice.”

This one question will uncover four pieces of vital information about the candidate:

Are they open to criticism or constructive feedback? Listen closely to the response and hear if the candidate was able to grasp the feedback. Or if they became uncomfortable and got defensive. This could be a sign of inflexibility when future differences occur.


Are they receptive to change? Did the candidate view the suggestion constructively? If they say that they didn’t realize they had that trait, or that they worked on it or changed the behavior afterward, you can have more confidence about their openness to dialogue and their receptiveness to any future concerns.


How independent are they? The candidate’s answer can be interpreted in a number of ways. If they were embarrassed by the advice and wanted to change to fit the role, they may be a follower. If they didn’t agree with the advice, it could signal an independent, free spirit who likes to do things their own way. Or it could mean they are prideful and vain. Listen closely to the rest of the conversation and put the answer into context.


How much do they respect their co-workers? If they took the advice of their co-worker, it could mean a belief in strong ties and the trust that comes from a team effort.

Asking targeted follow-up questions will enable you to find out even more about the candidate. For example:



How did the co-worker initially bring up the feedback?
What was the candidate’s initial reaction?
Did they agree with the co-worker?
Looking back, what do they think about the conversation?

By asking these questions, you now have a much clearer picture of whether these characteristics complement what you are looking for in a candidate.

Michael Shapiro, E Group Partners, Inc.

The post Four Ways To Uncover If A Candidate Is a Good Fit For Your Company appeared first on Peak Development.

“I’ve led a good life”

This was a statement a 70-something said to me regarding my question of why she is out and about instead of sheltering at home. I thought it was an interesting perspective that seems to validate why I see so many 70-somethings and older eating out, shopping, socializing, walking, working, etc. I do not believe that this generation is irresponsible. They have been through many challenges in life and have learned to pivot and prevail through tough times. I also realize that many are required to work to get by.

Consider the number of challenges they have faced since their childhood. Wars, recessions, political upheavals of all kinds, etc. They have prevailed through all of them. I believe they embody the Chinese character for risk. The character on the left is danger and the character on the right is opportunity. Life has been a balance of mitigating the danger while seizing the opportunities in life’s ongoing risks. We have much to learn from this group!

And, they have adapted again using technology. Travel bans and state orders have kept them away from their family and friends. What do they do? ZOOM, FaceTime, etc.! They are using Smartphones, tablets, and computers. In short order, they are reconnecting. Many of us never gave them credit or had faith in their ability to learn, but they have, and in greater numbers than ever before. Knowing they have increased health risks; our Traditionalists and older Boomers are using online shopping and delivery services to get their daily needs met.

In an article dated February 2016 from The Star, Magic abounds when daycare, seniors home share roof, “And they say their young charges have just as much to gain as the seniors.”

Maybe we do too!

Reach out to a 70 or 80-something and have a chat about their perspective on our challenging times. You will be better for it.

 

 

 

 

 

 

The post “I’ve led a good life” appeared first on Peak Development.