People Smartz Blog

Recently I read a blog by a member of a large international coaching organization.  In the blog, the writer quoted W Edwards Deming (a guru of quality management and credited with the rise of Japan as a world powerhouse in manufacturing after WW2).

According to the writer, in the quote, Deming said that “that 94% of all failures in a business are the result of the “systems” in the business and only 6% of the failures are caused by the people in the business.”

I agree with Deming, however I disagree with the blog writer (who even managed to spell Deming's name incorrectly) who basically then went on to use this quote to explain why systems over people will create “leverage” in the organization.

The basic fault with the article was that it was designed to promote a systematic version of business coaching that is more concerned with short term gains rather than long term ones.  It is designed to encourage people to take a one size fits all approach to a business without taking into account the individual aspects of; or the people in, their business.  In short, it was an article designed to inform about how to save time, create a picture of short term success and promote their product.

Now, I’ll be up front and say that my blog is designed to raise the profile of my business.  I believe you were probably aware of this when you started reading; however my approach here is to ask you to think about the relationship between people and systems.

I believe that a business’s success is a result of the direct relationship between efficient systems and the people running them.  Systems are not the end, they are the beginning of the real process – that of creating a long term viable business.

See if you agree with the following comments:

• People run the systems, not the other way around.
• People make decisions, not the systems (the system can guide them in the right direction but in the end it is the people who make the decision). 
• People create relationships with People, not with systems. 
• A business succeeds because of the drive of the people running it – the systems make sure they are all on the same road.

I am not writing here saying that systems are not important.  In fact I believe they are important tools in maintaining consistency and quality, setting expectations and ensuring your business succeeds.  The more systemized a business is, the more likely it is to succeed.  Not because it is systemized, but because the systems create the time to concentrate on the important factors of business success. 

The important word in the previous paragraph is “tool”. Because that is what a system is - a tool that assists you, and your team, to achieve business success.  Imagine telling a carpenter that he didn’t build the shelf, the power drill did? Would he or she accept that? No way!  It is the same with your business, you need the systems as a tool towards the end product – and success for your business is the end product.

But regardless of the systems you have in place, it is important to have the right people to run them. This means becoming very good at knowing who the right people are in terms of attitude, skills and abilities.   Simply getting the right person in your organization, training them and working with them is probably one of the most important roles of a business owner or manager.

I know of one coaching organization that is so systemized in its recruiting approach that it advocates placing an answering machine on the phone, asking people to sell why they should get the job to the answering machine and then inviting the best answers to a “group interview” (Don't believe me - drop me a line and I'll give you the title of the book!)  The designers of this "system" know business owners are time poor, they know that saving time is attractive - so they have come up with a system designed to “save time” not to select the right person.  Ask yourself would such a system really work for your business?  Would you be confident of selecting the right person?

In the last week, I have received a call from a client of one of the bigger coaching groups.  They are looking for a business coach who is “people” rather than “system” orientated. 

They commented that they had commenced coaching on the same week as another business run by a couple they are friendly with.  They were in different capital cities, using a different coach from the same international coaching franchise.

The funny thing is that they had compared notes and found that the things they were being asked to do, the information they were being given and the advice they were being given was exactly the same – even to the point of them receiving exactly the same fax one day before a coaches visit on the same week of their program!  What’s more, they both saw red when advised that all future coaching sessions would be over the phone to “save them time” – and that advice was given in the same week! 

Maybe they were similar business you say?  No - one was retail and the other light manufacturing, one had 120 employees, the other 15.  One had been established less than a year, the other more than 10.  In short, they were being coached via a system with no tailoring for their individual needs.  Both companies are now in the process of finding a new coach.  Why - because it was the system that was coaching them, not the coach.

To end this article, I would like to go back to W Edwards Deming.  In his book “Out of Crisis”, he advocated a 14 point plan to save US industry in the 1980’s.  While Deming was a big (read this to mean big) believer in systems, he was criticized for providing a set of goals (his 14 points) without providing any tools to make them happen.  When asked about this by managers his reply was “You’re the manager, you work it out”. 

And to end, another quote from Deming – “A system must be managed. It will not manage itself” (The New Economics for Industry, Government, Education (1993))

Seems even the quality guru, Deming, believed that business was about a relationship between people and systems....

I can only say that business coaching and consulting is the same.  Think about this next time you look for a business consultant or coach – regardless of their specialty area!

P.S.  I have made several comments and criticisms in this article, If you would like details of where this information has come from (i.e. links, books etc.) please contact me and I will be happy to provide (except where it would break client confidentiality).

 

 

 

 

People Smartz is proud to have been accredited as an approved consultant for the Jobs Assist Program.

The Queensland State Government is providing grants through approved Consultants for the delivery of advisory and mentoring services to businesses with 10 or more (full time equivalent) employees under the Jobs Assist programme.

The Department of Employment, Economic Development & Innovations (DEEDI) is providing the support intended to help businesses weather the current economic conditions. The financial loss and consequent unemployment caused by business failures is well understood. DEEDI is generously providing funding wherever such assistance is beneficial to sustaining businesses and the retention of employees.

Consulting assistance worth up to $8000 to each eligible business is provided in two stages:

Stage 1  -  For the purpose of diagnosing the issues impacting upon an existing business and to develop an Action Plan to help owners addresses strategies and activities which improve the business model.

Stage 2  -  For the purpose of engaging a consultant to mentor and provide expert advice with implementation of the priority tasks identified in the Action Plan. The outcomes sought are increased efficiencies, business sustainability and an increase in overall productivity.

Eligibility Criteria

The businesses accepting the assistance must meet the following criteria:

• Employ 10 or more full time (equivalent) employees;
• Have an established operating base in Queensland;
• Have an ABN and be registered for GST; and either
• Be located within a Local Priority Employment Area under the Federal Government Keep Australia Working Strategy; OR
• Fall within key sectors considered critical or of strategic importance to the State, region, industry or sectorial supply chain.

 To find out more about eligibility or to apply please contact us for more information today!

Contact

 

The HR Coach Research Institute has released its latest quarterly research into employment confidence in the business sector.

The research indicates that positive signs are beginning to enter into the minds of business owners and preparations are being made for an economic recovery. Because of this there is a focus on short term business improvement strategies in readiness for the growth. 

The following is quoted from the results of the research:

"The Institute has identified that in anticipation of an economic rebound, businesses are moving into preparation mode.

The top 3 critical issues facing business have remained the same over the past year – Lack of Work or Sales, Cash-Flow and the Economic Climate.

With an improving expectation of growth in sales and profitability, businesses are looking to resource this trend with increased participation of employees as well as the recruitment of new employees. Concern in relation to finding and keeping talent could see an increase in wages bills – both through an increase in hours of part time employees, and rates of pay for full time employees. This may address the labour underutilization rates that have increased in the past year.

With a low expectation of investment in capital expenditure, businesses are maintaining a short term view in relation to return on investment strategies. This will drive business improvement strategies; building on core business rather than innovation.

As internal organisational confidence continues to decline, businesses will need to focus on internal processes. Businesses will most likely be addressing orientations, workplace and legislative policies in the coming months. This may trigger a resurgence of quality management systems in the market."

The full report on this research is available from the People Smartz Members area. To download - click on the link below:

HR Quarterly Index - October 2009

It should come as no surprise that the latest research is indicating that Australian businesses are "under threat due to the increasing complex economic and labour market".

The latest white paper released by the HR Coach Research Institute talks to the maturation in professional services to Australian businesses in most professional areas (for example legal, accounting, sales and IT).  Titled "The Business of the HR Crisis", it discusses the effect a lack of effective people management practices is having over an estimated 651,000 businesses.

Some of the conclusions in the white paper include:

• The effects of uncertainty on the confidence of employers and strategic direction;
• The increasing management fatigue beginning to be seen due to down-sizing of workplaces
• The effect on small businesses of not being able to attract or retain employees
• The effect of struggling with paperwork and compliance
• The compounding effect of industrial relations and Health and Safety legislation changes.

The cost of labour is the biggest cost on most businesses.  This cost is exacerbated by the inability for business to have access to effect people management advice and solutions.  This white paper discusses this in detail and delivers a conclusion which is not only interesting but in line with our People Smartz philosophy that "People Drive Results".

I highly recommend downloading the full white paper and would be interested in hearing your comments through our forum. If you don't have a membership (it's free), please register.

> Download the White Paper

> The People Smartz Forum

Sometimes the fundamentals of business are the same whether you are looking internally or externally. Unfortunately sometimes we don't realise it!

We work hard on making sure our customers know what they can expect of us, when we will do things, when we will do it by, who will do it etc.  We put this information into writing and ensure that their expectations of us are clear.  If we have expectations of them, we make them clear as well - for example, when we expect them to pay the invoice by!  It makes sense and makes for good and happy customers!

The same can be said for our own team members.  Often when dealing with performance issues in business, what I see is a mis-understanding in regards to what is expected of the team member with a differing expectations on both sides of the equation.

So like with our customers we need to work on expectations with our team.  So how do we do this?

First, there is the basic aspects of establishing the expectations of their behaviours and performance.  These are the sort of things that are covered in employment agreements, position descriptions, policies and procedures. Not only do they cover the idea of what the job is, they also lay out the your expectations of what is acceptable in regards to dealing with other team members, management, customers and others.  To have these documents in place puts you one step ahead in the expectation management game.

The next step is ensuring you have good strong two-way communications structures in your business.  Regular meetings with your team and feedback sessions (formal or informal) are good ways to begin this process.  Having a regular, proactive and systematic performance management and development systems also aids your aims in this area by putting in place forward looking goals and targets for your team.

Ensure your team are aware of your goals for the business.  Unless it is commercially sensitive, don't leave them in the dark about where you are taking the business and make sure they know how they can help you achieve this. Think about how you can bring them into the game.

Finally - do you know their expectations of you??  What is it they want out of work?  What gets them to work every day?  By finding out about these expectations, you can find ways to encourage them to achieve their own goals - its not only about your success, its about their's as well....  

So think about how you can become an expectation manager with your team!

Contact us if you would like any information on how People Smartz can assist you and your team achieve your expectations!

Contact
 

Over the last couple of days I have been assisting a business owner with a problem that had happened with one of his team members.

Now I will not be going into detail about the situation, that would be breaking confidentiality - but I will share one thing that occurred to me while I was with them.

Many years ago, I read (and attended a course on)  Stephen Covey's Seven Habits of Highly Effective People.  One of the seven habits was "First seek to understand and then be understood". 

Well, this situation would probably have been helped if both sides had taken the time to follow this habit!  I am not saying that either side was at fault, the truth is that if they had taken the time to understand what the other was saying, they would have found they were saying basically the same thing!  In other words they were disagreeing over something they agreed on!

Some sort of conflict can arise in any relationship - we all know that.  In business, when they occur and the business owner is involved they can take a momentum of their own if not handled promptly.  This was an example of one such occasion.

The first rule I explain to business owners in these situations is to keep their mouth shut and "listen".  This is followed by asking questions to ensure they understand what is going on in the mind of the team member and then act to correct the misunderstanding or incorrect performance.

This approach has the advantage of defusing situations, opening dialogue and giving team members the opportunity to feel they have been listened to.  It also gives the business owner (or manager) the ability to get their side understood in a more effective manner by helping them clear away the "noise".

It is an approach which is, in essence - "Seek first to understand and then be understood".  From my experience, I can tell you - it works!

People Smartz can assist you with your team, helping productivity and efficiency and introducing good "habits" to your organisation.  Contact us today to find out how we can help you and your team.

You will have seen me write before that the two things business owners need more than any thing else is cash flow and time.

Today's blog is all about the later - time.  Now in researching today's blog, I found many documents, reviews, white papers about time management - making lists or setting goals.  While it was tempting, this is not what this blog is about!

From my experience, business owners are always on the move, busy working on this part of the business or that, making everything work on a day to day basis.  This is how it was when he or she first started the business on their own and what they have become used to.

But in order to grow a business, the owner needs to move out of the day to day - if they do not devote some time to the future, then they will be forever stuck in today. 

Time is often the first area a coach needs to begin with a business owner.  For it is the creation of time that creates opportunities for business growth and increasing cash flow...

So how does a busy person find more time?  Well simply it is not possible to find more time!  It is a scarce resource with only a certain amount of it available - and the time you do have has many conflicting priorities pulling on it!

If time is scarce, then it is time to start looking for ways to make your use of time more efficient.  For many business owners, identifying the work they do which could be done by others (or not done at all) is often the first step in this process.  It is all about looking for the way your business can run more effectively, whether by using others, automating a process or just changing the way you do things.

This is not a hard process to begin yourself - if you can find the time to do it!  Bit of a Catch 22 isn't?

So if you want to grow and develop your business, start thinking about time - not in terms of lists but in terms of outcomes, effectiveness and how you can devote some of it to the future.  People Smartz Coaches can assist you in the process by providing you with an experienced perspective of your and your peoples activities. Contact us

This will be a short blog entry but probably the most important you will read!

Australia's new IR Laws come with a kick.  If you are non compliant you can be fined and forced to pay back pay, credit accruals, pay additional superannuation guarantee payments and additional pay roll tax - and that is only the start of the list!

Here are some examples of the ramifications if your business is found to be non-compliant:

• Non Compliance with Modern Award Conditions - a fine of $33,000 for a company for each breach plus the cost of back wages etc to the employee.
• Non Compliance with National Employment Standards - a fine of $33,000 for a company for each breach plus the cost of making up the breach to the employee.
• Avoidance of Employment Obligations (Sham Contracting) a fine of $33,000 for a company for each breach plus back taxes plus superannuation guarantee payments plus possible implications for payroll tax.
• Unfair Dismissal - back wages if found to be an unfair dismissal plus possible superannuation to the employee.  in addition, legal costs and lost opportunity costs in regards to time and effort to defend the claim.  Cost = many 000's of $$$.

The cost of being compliant is minimal compared to the costs of being caught out! 

Contact us today to arrange for a Free Compliance Assessment for your business.

So why do I need a business coach? Why do I need a HR Coach?  Why do I need a coach at all?

These questions are fired at me fairly regularly and I would like to take the time today to explain why!

First - Coaching is not consulting. Consulting implies that you identify a problem that a client has and you propose a solution. Coaching is more about assisting your to help yourself.

There are many other reasons for working with a business coach, but here are just a few:

1. Working with a coach is an investment in you and your business.  Your business is about your future and you need to have your time and energy concentrated on the important areas of growing your business.
2. The purpose of working with a coach is to guide and encourage you to achieve your goals. A coach will insist on excellence and guide you towards the desired outcomes through the development of a well structured and tailor made business plan. 
3. A coach will help you identify the areas of waste in your business, where your time is being used ineffectively and assist you in correcting these areas.
4. A good coach will have experience in identifying the right people for your team.  The individual's fit into the team is as important as their technical skills.
5. Your coach will look to assist you in developing your sales funnel through targeted sales and marketing processes and activities.
6. Because coaching is not consulting it is more cost effective by building the internal resources within your company.

There are many coaches out there with their own specialities.  Some concentrate on sales, others on marketing, others on strategic direction.  The choices is yours about which is the most suitable for your business.

People Smartz believes that regardless of the specialty area, it is the people involved that produce the results.  This is why our coaching is designed to identify the ways your business can achieve success through people. With People Smartz Coaching you are investing in you and your team - not a process.

For more information - contact us today.

> Learn more about People Smartz Coaching Programs