People Smartz Blog

Today I was almost involved in an accident in my car.

I was driving along the road, the last of three cars travelling along a suburban street.  Up ahead was a side street with one car waiting to turn out and another waiting to turn into it.

Unexpectantly, the first of the two cars ahead of me suddenly stopped to let these two cars exit and enter the side street.

Taken by surprise, both I and the driver of the second car braked hard.  Unfortunately, the second car was unable to stop in time and drove straight into the rear of the first car, which then crashed into both the cars turning.  Luckily, I was travelling far enough behind to avoid being physically involved and my car was undamaged - something I can not say for the other 4 cars involved.  

More importantly, no one was injured in the accident.

Now what has this got to do with a blog about business you might ask?

Well, it teaches us a lesson in why it is important to manage expectations in your business - when you don't, the unexpected happens!

We have road laws that control how traffic behaves, signs that indicate who is required to give way or stop, speed limits and many other things that are provided to ensure we are safe and consistent on the road.  Today's accident occurred (in my opinion), because someone decided that they would do the "unexpected".

Simply, he stopped to allow traffic that legally did not have the right of way to turn.  As he stated after, he thought he was "doing the right thing" and that "they could be waiting for ages".  

The problem was that this was not a behaviour those travelling behind were expecting - we were expecting him to follow the rules.  He hadn't even thought that others would be expecting him to do something different!

Now we have said before in this blog that the number one thing we see when asked to assist businesses with issues that develop with people is that there is an inconsistent approach to expectation management.  

When expectations aren't clear or not understood, then problems occur.  In the case of the car accident, the expectations were clear, but the understanding was not - the driver did not understand the need to stick to rules, he did not understand the effect that his actions may have (I am sure he does now!)

So there is a lesson to be learnt from today's event - how you deliver and ensure understanding of your and your businesses expectations is important in ensuring your business remains on track - without any "accidents".

This is were tools such as position descriptions, employment agreements, codes of conduct, processes and procedures become very important.  They lay out the basic "expectations" of the business in regards to behaviours, customer and peer interaction, business development etc.  If these are clear and easily understood, you are a long way along the track to ensuring a smooth running business.

In line with this is ensuring that you have strong systems to communicate formally and informally with your team.  This includes performance management systems and the way you pass on important information.  Regardless of the size of the business, these systems in themselves can be designed to improve both individual and business performance.

Equally important is the demonstrated behaviour of owners and managers of your business. By ensuring your own actions are line with these expectations, you are providing an example to your team.

If you would like to improve the performance of your team, first look to how you manage your expectations - For many years, we at People Smartz, have been assisting in ensuring that businesses run smoothly through the strong development of these expectation management tools and behaviours. Call us today to assist you!

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For the last two years, we have released many blogs posts on the unfair dismissal laws contained in the Fair Work Act.

Earlier this month, Fair Work Australia released its latest quarterly report.  It contains some interesting numbers in regards to unfair dismissal claims and the Fair Dismissal Code for Small Business

With unfair dismissals, the tribunal received 3219 unfair dismissal applications in the quarter. The overwhelming majority of these (2564), were settled at or before conciliation. The tribunal made decisions on only 64 dismissal claims in the quarter, finding 24 were unfair and 40 fair.  Only 18 claims resulted in a decision awarding compensation to the ex-employee.

Employees are now much more aware of their rights under the act and claims are on the rise.  Many of our clients are reporting that claims made against them have been frivolous and they have settled "just to make it go away".  The numbers released this month certainly seem to uphold what they are telling us!  

From the numbers presented by Fair Work Australia, The Fair Dismissal Code for Small Business is not working!  While 609 applications related to a small business employee, only two were rejected because the dismissal was consistent with the code. 
We believe this is a worry - if followed, the code is designed to protect a small business from unfair dismissal claims.  At People Smartz, our experience is telling us that, if they know about the code at all, most businesses are finding it difficult to understand - after all, it is basically a corporate process that they need to follow!

We believe that small businesses are generally finding it difficult to work with these laws and over time the issues they present are compounding.  The latest set of numbers from Fair Work Australia seem to indicate this is correct!

Given the current state of Australia's workplace laws, small businesses need to ensure they have the systems in place to protect them against unfair dismissal claims.  This includes having appropriate systems in place to manage poor performance and terminate staff.  

At People Smartz, we are experienced in assisting our clients to put such systems in place.  For many years, we have had in place a review process for small business called a "People and Business Review".  This is designed to review what is in place in your business and assist you to identify the changes you need to make to protect your business.  Why not book yours today?

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Recently, Australia's newspapers have been full of the story regarding the Sexual Harassment claim against the CEO of David Jones.

These stories have highlighted the risks businesses have regarding harassment in the workplace. However, the purpose of this posting is not to discuss the David Jones case - it is to highlight the fact that we are now approaching that time of year where such complaints increase.

Yes it nearing the end of the year.  We are entering party season - a great time to unwind, rub shoulders with workmates etc.  This can be a fun time!

But end of year parties have a very serious side as many of these antics lead to "regrets" after.

Recent research in Australia found that 70% of people believed that hitting the booze led to a more "personal" feeling amongst staff.  Nearly a quarter of females interviewed admitted that their boss had made a pass at them at an office party. 

Such behaviours can present many problems for businesses, particularly if the "antics" involved lead to a complaint from a member of staff regarding the behaviour of another.

It would be easy to say "no office party" or "its too risky", but sometimes the advantages of holding the party far outweigh the negatives.  The decision to have or not have one is one for the business alone. 

I would recommend a level headed approach to this years Xmas party - making sure the party is well planned and your staff are aware of the required behaviours before hand.  This way you can have the fun while managing the risk!

To help you plan for your businesses party, download our Christmas Checklist today.

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).

 

 

 

 

In my travels around businesses, I speak to a lot of businesses owners.  One of the most frequent responses I get when speaking to them about the new industrial relations laws is the title of this blog.

“We don’t need to worry about that” is a refrain that I hear quite alot.  The basic premise is that if they haven’t had a problem before, then they will not have one in the future.

As far as the industrial relations laws are concerned, thinking this way is not a smart move for business owners and managers.  Over the last couple of months, I have seen an increase in the number of businesses calling me for assistance after having received a letter from the Fair Work Ombudsman regarding a complaint from an employee.  On nearly every occasion, the business concerned had, until now, a belief that “We don’t have to worry about that”.

In a recent article, Judith Radisich from the Council of Small Businesses of Australia, in a response to a survey of small businesses said the following: “I am surprised that a higher proportion of small business respondents did not report complying with IR and OH&S laws takes up a higher proportion of their “people” time.  Perhaps the main reason for this is that survey respondents don’t spend much time on compliance because the laws are simply too complex and virtually impossible to get on top of for most small business owners”.  So, yet another reason for businesses to say “We don’t have to worry about that” – it is simply too hard to say otherwise!

One business I am currently working with has received two complaint letters and has been requested to provide payroll records.  The danger for this company is that the complaint, if found correct, could result in a large amount of back pay being ordered that the company cannot afford to pay.  Now the owners are not bad people, they have not set out to deliberately underpay their staff and are quite distressed that they may have.  But even they admit that they thought “We don’t have to worry about that”.

The fact is that we have recently gone through one of the biggest revamps of industrial relations in a long time.  When this is combined with an active workplace ombudsman (The Fair Work Ombudsman) with the power to order back pay, award fines and commence prosecutions then you have to wonder whether businesses can really afford to say “We don’t need to worry about that”.

Happy New Year!

Listening to the news last night here in Brisbane, the reports were on many new laws/changes being introduced in the new year.  Bus Fares were going up, politicians were going to be paid more etc.

But there was not one mention of some of the most wide spread changes to the working lives of Australians.  Effective today, Australia's new system of modern awards and the National Employment Standards (NES) will now govern the way businesses employ and manage their staff.

Over the past 6-8 months, I (and many others) have been seeking to raise awareness of these changes and urging businesses to prepare.

Today, the time for preparation is over - from today it is time to act......

If you haven't already identified your new award, it is time to do it.

If you haven't looked at the New Employment Standards (NES), it is time to do it.

If you haven't already identified the changes to your employment practices that will need to be made, it is time to do it.

If you haven't already put in place policies and procedures to protect your business, it is time to do it.

If you haven't already ensured your employment agreements are consistent with the new laws, awards and standards, it is time to do it.

If you haven't got appropriate processes in place to mitigate risk in areas such as harassment, discrimination, Health and Safety etc, it is time to do it.

If you haven't got a engagement plan for the unions relevant to your business, it is time to do it.

If you haven't got a plan for "good faith bargaining" and consulting with your staff, it is time to do it.

If you haven't looked into how to introduce flexibility into your business through "individual flexibility agreements", it is time to do it.

Not a bad list is it?  And this is only the start! 

For more information, visit the members section of our website today!

End of year/Christmas Office parties - a great time to unwind, rub shoulders with workmates and other great antics.  They can be a fun time!

But end of year parties have a very serious side as many of these antics lead to "regrets" after.

Recent research in Australia found that 70% of people believed that hitting the booze led to a more "personal" feeling amongst staff.  Nearly a quarter of females interviewed admitted that their boss had made a pass at them at an office party.

Such behaviours can present many problems for businesses, particularly if the "antics" involved lead to a complaint from a member of staff regarding the behaviour of another.

It would be easy to say "no office party" or "its too risky", but sometimes the advantages of holding the party far outweigh the negatives.  The decision to have or not have one is one for the business alone. 

I would recommend a level headed approach to this years Xmas party - making sure the party is well planned and your staff are aware of the required behaviours before hand.  This way you can have the fun while managing the risk!

To help you plan for your businesses party, download our Christmas Checklist today from our members section.

Laws regarding the use of Independent Contractors have been around for quite a few years now.  These laws are designed to provide increased protection against employers who try and avoid their employment obligations by using what are called "Sham" agreements.

Independent contractors run their own business and should be free to negotiate their fees and working arrangements.  They may provide their services to any number of clients.

Employees have set minimum entitlements (payment of wages, annual leave, personal leave etc) and are subject to the control and direction of their employer.

A "sham" agreement occurs when an employer deliberately disguises an employment relationship as an independent contracting arrangement in order to avoid paying an employee his or her entitlements.  It is possible that an employer who makes arrangements in this way could be fined up to $33,000. 

Many businesses I work with enter into independent contractors agreements in order to "benefit" both the business and the person doing the work. There is no intention to deceive or avoid obligations - just an intention to "do the right thing by all" by improving the return to the "employee" and to save the company money.

Unfortunately, this could be opening up a minefield for the business and the independent contractor.  If the arrangement has been made with the intention of avoiding obligations on the businesses part, it can result in fines, back taxes and other costly penalties.  There can also be tax ramifications for the independent contractor.

When reviewing whether the working relationship is one of employment or independent contract, the Fair Work Ombudsman will look at the circumstances.  Things such as how the work is performed, who bears the commercial risk, whether the work is results based or not, who sets the hours of work, whether the individual has a right to delegate work and who provides the equipment used are some of the many factors which can be taken into account.

I strongly recommend to my clients before entering into independent contractors arrangements that they closely review the relationship they are forming.  While the benefits of utilising independent contractors are significant, if not structured properly, they also introduce an element of risk to the business.

People Smartz is able to assist businesses with the process of employing independent contractors.  If you have, or are considering, independent contractors in your business - contact us today.

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The Australian Industrial Relations Commission has been releasing over the last couple of months the new Modern Awards to cover employment within Australia from 1 January 2010 .

The process is continuing and by the time January 1 comes along, all employees under $108,000 per annum will be covered by one of the new modern awards.  This includes professional occupations who previously had not been covered by an award - some of them under a new "catch-all" award created for the purpose of ensuring they are covered.

While not all the awards have been released, a list of the one's released so far (with a copy available for download) is available from http://www.airc.gov.au/awardmod/fullbench/awards.htm

I would strongly recommend that you review this list and download the award applicable to your industry.  From 1 January 2010, when the awards become effective, you will be required to be complying with the award applicable to your business.  The time to start preparing is now not on 31 December!

The businesses I am working with on preparing for the new awards vary in the amount of work they need to do to prepare for the changes.  It really does depend on the individual business.....

If you want to know more, as well as a suggested list of activities you can undertake to help yourself prepare for the changes - visit out website by clicking below and downloading our information sheet.

Australia's New IR Laws - Information Sheet

If you have any questions about the changes, please feel free to contact us or post a question on our forum page!  Our forum is also hosting a discussion on what effects you believe the new laws are going to have on your business - why not give us your thoughts today!

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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!

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