Business Management: Don't Be Blinded By Success

I've learned a very valuable lesson this year following 3 back-to-back-to-back record breaking years (hence the name, Record Breaker).  Never be blinded by success.  It can be here today and gone tomorrow - especially in the field of medicine where most times, your biggest competitors are the state and big insurance companies.  Legislation can eat your lunch if you are uninformed and under-prepared.  That's really for another article, at another time.  For now, the lesson is to not be blinded by success.

Success is great.  Celebrate it, but do it again.  We had such huge success over the last 3 years, that it sort of masked some serious problems that needed our attention.  As my office's top manager, this is my responsibility - to not take my eye off the ball.  The first 4 months of this year were very bad.  We had a lot of catching up to do.  Along the way, we realized that we needed some new training and new processes.  We found that what got us here wasn't going to get us where we wanted to go.  We've had to slightly change the way we operate.  We've plugged some of the holes and we're working on plugging the rest.

Success in business deserves celebration today and then a short memory tomorrow.  Always re-assess your current situation and make sure you keep doing what it's going to take to get you where you want to be tomorrow.  Smart competitors will adjust to adapt to their failures and to try to beat you.  The legal environment may find ways to work against you.  Be ready.  Be over-prepared.  KEEP WINNING.  Being a Record Breaker is about on-going success.  It's about breaking through barriers.  It's about never quitting and it's absolutely about BREAKING RECORDS.  So, do what it takes to keep breaking records and DON'T BE BLINDED BY SUCCESS.

Incidentally, because we took the short-term blinders off, we've gotten back on track because that's what happens when you're on top of things.  We are now on pace to have an exceptionally good year and finish strong.  Record Breakers find a way to create success.

Get Hired In Spite of Your Weaknesses

In a recent blog post, Abdus Salam (http://better-jobs-advice.blogspot.com/) points out the importance of being ready for interviewers to ask you about your weaknesses.  He says to be straight-forward and honest.  While I most certainly agree with his point, my response is below.


Great advice. I happen to be responsible for hiring new associates and while weaknesses are important to know about, it's more important to understand that we all have them. If I'm asked about my weaknesses, I'll admit that I need a calendar and task list to be organized, otherwise all bets are off, but I'll also say that with those tools and my other strengths, I'm going to break records. Immediately redirecting to strengths and opportunities is a good way to keep interviewers on-point as to why they would be making a huge mistake not to hire you.



Take a loot at Salam's Better Jobs Advice blog.  It's really good and he makes extremely good points. 

When it comes to getting hired, always, always, always be honest when asked about your weaknesses, but do your best to keep the interviewer focused on your strengths and on the opportunities those are likely to bring to the company.

Negotiating Experience of the Day

Today I had a very nice meeting with a new sales rep for a major yellow pages publisher in my area.  This was a great opportunity for me to sharpen up on my negotiating skills.  So, I made note of all of the tactics she used on me (knowingly or not) and I used my own in response.  Here's what happened.

The tactics she used with me.

1.  Time Pressure - The book was closing tomorrow, so that I would have to decide today.  I did not decide today, so time pressure didn't work.

2.  She told me who else wanted the ad space that I was considering.  This happened to be someone that I know and respect.  So, instead of it making me feel pressure, it made me reconsider purchasing the ad space at all.  Backfire.

3.  She deferred to her higher authority to come up with a price.  I told her she would have to do better than that and get back with me.

4.  She tried to get more and more information from me.  I said as little as necessary because that information was a strength for me and could have been turned into a weakness if I shared it.

5.  She said she could keep the price the same instead of raising the rates in order to convince me to do the deal today.  I said that I might just pull out of that book all together.

6.  She offered to give me free ad space to sweeten the deal and convince me to say yes.  I accepted that with the condition that she would also give me better pricing and then I continued to hold out for a better offer.

What else did I do?

1.  I was completely disinterested.
2.  I was noticeably uncomfortable with the idea of signing another agreement.
3.  I was very quiet causing her to give me more information.
4.  I mentioned that my plan B was to completely stop advertising in her book.
5.  I deferred to my higher authority by saying that my CEO would have to approve anything that I agreed to.
6.  I reminded her of the last time that I pulled $35,000 of annual advertising dollars from her company just a few years ago and spent it at the competition.

My best guess is that first thing tomorrow morning, she will email me and offer all of the ads that I want, including the free ads, and come in at no more than $200 per month more than what I was already paying last year.  If that is the case, then I'll accept the deal after she reduces it $100 more per month.  We'll see.

Schizophrenic Economy?

Bloomberg Businessweek's August 2nd edition has an article about "The New Abnormal" economic climate.  It talks about Americans who are cutting back on some things, but splurging on others.  During a time of nearly 10% unemployment and foggy economic uncertainty, many people simply don't know what to do.  People worry about losing their jobs and about not being able to pay the electric bill.  Others are cutting back for that just-in-case situation, while some are cutting back in areas so that they can continue to spend in other areas.  The Dow hits extreme highs and extreme lows.  Economists can't seem to agree on the outlook in the short term or the long term.  News outlets are so politicized that the average person can't tell the difference between the truth or variations of the truth.  Instead, they blindly rely on MSNBC and Fox News to set them straight.  Record numbers of people are out of work and the news media focuses more on the 10% unemployed than the 90% still employed.  Train wrecks make the news.  That's just the way it is.  Now, the country is waiting and hoping that things will soon turn around, and they will turn around, but everyone is going to have to adapt and adjust.

Businesses that have down-sized are not going to just instantly increase staffing numbers because the economy turns around.  Instead, they are going to try as much as they can to get more efficient and need less people.  They are going to get more efficient in every area possible.  At the same time, people will need to adjust and adapt to their situations. When we get a raise or a promotion, we tend to adjust our lifestyles up.  Well, this will be necessary too when we need to adjust down due to pay cuts, demotions, lay offs, and terminations.  Everyone is going to have to adjust and everything is going to be uncertain for a long time to come.  It's not economic schizophrenia.  It's just shock and adjustment, but it's going to be OK.

This is an opportunity to teach young people to be smarter with their money.  Teach high school kids financial and entrepreneurial skills.  Mandate finance classes for all college students - not just literature, algebra, govenerment, etc.  Make extern programs mandatory for all college degrees.  This is very successful in the healthcare fields.  It's free labor for business and on-the-job training for students.  Teach business ethics to young people today to prevent Enron and Worldcom tomorrow.  Teach people how to make personal budgets and avoid future credit crunches.

This is an opportunity.  We need to make the best of it.

What's Wrong With Generations X and Y?

I just attended a business conference with the most intelligent and highly educated speaker I think I have ever heard.  His name was Dr. John Howard, MD, MPH, JD, LLM.  I leaned over to my co-worker and told her that he was "the smartest guy in the room" by far.  He had some very interesting statistics about the make up of the workforce in this country and about where that make up was expected to go in the near future.  The thing that really didn't sit well with me was his facts on the Generation X and Generation Y portion of the workforce.

From 2000 to 2010 there was a 9% drop in the number of workers ages 35 to 44 (Generation X).  This is expected to continue thru the year 2020.  During this time, workers in other age categories will increase.  What the heck!

Generation X is made up of people born between 1965 and 1980, followed by Generation Y (born 1980-2000).  In the study presented by Dr. Howard, from 1992 to 2002, Generation X'ers desire for jobs with greater responsibility fell from 69% to 54%, while Generation Y's desire dropped to 60%.  So in other words, those in Generation Y are demanding higher level jobs at a higher rate than Generation X (although not by much).  And, this decline happened during the '90's.  What happened in the '90's that caused the younger generations to lose the motivation and drive for jobs with higher responsibilities?  And, why is it worse for Gen X than Gen Y?  What's wrong with responsibility and with being in charge?  These positions set the standard for business.   They set the rules of business.  They are some of the change agents of the world.

I'm a little frustrated that the younger generation is more likely to be my boss in the future than I am to be theirs (statistically - I'm definitely not in-line with my generation).  Now, look at these next figures.

According to this study, Generation X values are less aligned with the organization than any other generations (of the 4 generations since 1928).  Even Generation Y is more highly aligned with the organization's values than X.  Gen X is also near the bottom (very closely followed by Gen Y) when it comes to caring about the fate of the organization. 

What in the world is going on with people born between 1965 and 2000?  And, are we passing on this apparent apathy to our kids?  With this much apathy, it is my opinion that the "cream will rise to the top".  That's why those of you reading this need to be aware and take action.  Be more motivated than the average Gen X'er and Gen Y'er.  I think there is real opportunity for the 30 and 40-somethings to get into positions of authority and make a difference.  Get into the top of the class (so to speak).  That doesn't appear to be too hard unfortunately.  Take some initiative.  Don't be part of the 9% drop in workers from our generation over the next 10 years.  And if you can't get aligned with the values of the organization, then by all means, start your own!  Do something!

I hope that reading this makes you feel unsettled just like it does me.  My business conference had a lot of other information in it today, but the rest of it was a very distant second compared to Dr. Howard's presentation. 

Let's reverse this trend.

10 More Tips for Negotiations

This is part 2 in my series on negotiations.  These 10 tips will be helpful in any deal-making situation.

1. Always tell the truth.  If the other side ever catches you in a lie or finds that some "fact" you used to support your position is not accurate, it will sabotage your position completely.  If I find that someone misleads me, lies to me, or uses inaccurate information, I'll be a broken record on that point as often as possible to get a better deal.  My feelings will literally be hurt (as far as the other side knows) and I'll use it to my advantage.  Always be accurate.  Always tell the truth.

2. Dress like a person who is successful.  When you appear successful to your adversary, they will (often unknowingly) give you more respect.  Men - wear a dark suit, light colored shirt and a tie with red in it.  Women - wear a dark colored suit or dress.  Get a haircut.  Wear appropriate makeup.  Shave.  Use nice cuff links.  Shine your shoes.  Be the best dressed person in every meeting.  Dress like the deal is unimportant and be prepared to lose.  Dress for success and have success.

3. Put your information in writing.  People generally believe things that are in-writing.  Use charts and catchy headlines.  If you're product saves businesses thousands of dollars per month, show the other side the average dollars saved monthly.  Put it in writing.  If your customers are overwhelmingly and enthusiastically satisfied with your services, put their satisfaction scores in writing.  This will be far more powerful than just verbally saying so.

4. Cite your experts.  Tell people who else uses your services and who else recommends you.  This can be anyone in positions of authority.  Mayor, council person, doctor, lawyer, CEO, pastor, etc, etc, etc.  Anytime you can cite the strong opinions of a (even perceived) expert, you will be in a position of strength.

5. Get people to commit to things verbally and publicly.  Generally, when a person says something out loud, especially to a group of people or to someone they respect, they will be inclined to back that up with their actions.  For example, if you can get a potential client to tell a group something good about your product, he/she will be more likely to back that statement up with a purchase.

6. Make yourself well liked.  Try to use charisma.  When people like you, they are far more likely to do what you want and expect.  If you want someone to buy from you, you have a lot better chance if they like you than if they don't.

7. Never get angry.  Negative emotions are deal-killers.  He who gets angry, loses.

8. Put your strongest arguments either at the beginning or at the end.  These are the most memorable points of any presentation.  Putting them at the beginning can set the potential client up for agreeing with everything else you have to say.  Putting them at the end leaves the potential client with a strong feeling that will be hard to forget.  The very best thing to do is put your strongest point in the beginning and then reiterate it at the end.

9. The Power of Golf. The reason so many business deals are done on a golf course is because golf can be such a pleasant distraction.  When the buyer / client is in a positive frame of mind, a deal will be more likely.  It doesn't have to be golf.  It DOES have to be whatever the client finds to be a positive experience.

10. Always tell people what you want or expect.  If you want them to buy something, you have to say so.  If you want a better price, you have to say so.  Tell people what you want.  This is the very best way to get it.

You're Worth It!

Have you ever taken the time to just think about what you put your time into?  If so, spend some time comparing it to the things that you want - in life, in work, financially, family, etc, etc, etc.  How does the time you spend compare to the things you want?  You need to realize something very important:  You're going to get exactly what you're willing to put your time into.  So, where are you spending your time?

I want to be (for lack of better words) a famous management guru.  I also want to someday win a million dollars in a world class poker tournament.  I want my kids to be crazy smart and be more successful that I dream of even myself being.  I want my wife to think and say nice things about me when she thinks of me and talks to others (and I want her to mean it).  All of that stuff takes work (TIME).

What do you want?  Maybe you want to make more money.  Maybe you want to make A LOT more money.  Or, maybe you want to be a better cook, or a better student.  Maybe you want to be a better hunter, better coach, better mom or better dad.  You just might want to be better than the person in the office next to you.  OR - Maybe you want to be the best at something.  (Yes, I know - I've made my point.)

Personally, I think you should want to be the best at something.  I sure do.  I want to be the best at everything that I do.  Well then, figure out all the other places you're wasting your time and re-allocate that time to the things you want to be best at.  Then, work at being the very best in the world.  Don't sell yourself short either.  Believe me, you can be the best at something.

I'll get you started.  This is so easy - I promise you that you can get this done. 

Step 1:  Write Down Exactly and Specifically What You Want to be THE BEST AT.
Step 2:  Write down 5 or 10 ways you can make that happen.
Step 3:  Never, ever give up until you've accomplished your goals.
Step 4:  Give yourself a way of knowing when you've accomplished your goals. 
Step 5:  Reward yourself for getting it done.

Also, be reasonable.  Look, I want to be President of the United States, but they're not going to let that happen.  I also want to be Free Safety for the Dallas Cowboys, but I can't list all the reasons that's not going to happen.  However, I do want to make $350,000 per year.  I can make that happen, so I'm working the steps.  I do want to be on the cover of a business-related magazine.  I can make that happen too, so I'm working the steps.  I'm just putting the time in that it takes to get this done.  It's hard work, but the payoff is going to be huge.  And, I think I'm worth it.  And, so are you.

Finally, if you find yourself reading this and telling yourself reasons you can't do what you want, or reasons you can't have success in areas that I think you should, then stop it.  Start back over at the top and try again.  Don't shut yourself down.  There are plenty of people out there who will try to do that.  Don't help them.  Lots of people are going to tell you that you can't do stuff.  That's OK.  They're wrong anyways.  Don't make it true by buying into it.

For lots of people, this requires a complete paradigm shift in their lives, but you know what?  Make that shift.  Don't sell yourself short.  You're worth the success that you dream you should have and it's not too late either.  Carpe Diem - "Sieze the Day!"  Sieze it every day.

Are You Breaking Records or Nearing Disaster in Business

If your business was nearing disaster, would you even know before it's too late?  How would you be allerted to serious problems?  Would you rely on an employee to tell you?  Do you think your competitors are such good friends that they will give you a head's up?  Or, would you need to sort through piles of reports to find problems?  You need a systematic approach for identifying potential problems before they become total nightmares.

On the flip side of that, you also need a way to measure success and break records.  Although it feels good, and it certainly sounds good (at least to you), you can't just go with your gut.  Again - reports:  who has time and if you make time, will you really know what you're looking for?  Will all of the pieces make enough sense that you can do something valuable with it?

I can come up with hundreds of more questions just like the ones above, but the answer is somewhere else all together.  For those of you who were reading my blogs back in 2009, you will remember one called, "Record Breaking Business Tracking Systems".  http://chelmsmba.blogspot.com/2009/02/record-breaking-business-tracking.html  THIS IS THE ANSWER.

These are charts of graphs, often referred to as dashboards, that give you up-to-date reporting that will save your butt and make you a business hero.   With these dashboards, you will track everything that you would otherwise need a long report to figure out.  Someone will report the data and enter it into a simple Excel spreadsheet and the graphing add-in program will create your charts.

Here's the really important reason to use tracking systems.  When you see a drop in production and it lasts 3 weeks, you don't need to wait until 3 months to recognize it and solve the problem.  By then, it could be too late.  If you track new customers and you see that total new customers drops by 3 per week for the last 3 weeks, you give yourself a chance to turn it around before it gets totally out of control.

On the other hand, when something is working really well and you see the graph jump to a new high range, you get an opportunity to figure out how it happened and reinforce what works.

THESE TRACKING SYSTEMS ARE ABSOLUTELY CRITICAL TO BUSINESS SUCCESS!

You may be saying to yourself, "I get it, but I don't need graphs, besides it's just Excel.  Big deal."  You better believe it's a big deal.  It's the single biggest deal I know of to positively affect business growth.  Go back and re-read by previous blog about business tracking systems, then put some serious thought into the following question.

By how much do I want to beat my competition?

Promotions happen from growing the business and beating the competition.
Raises come from growing the business and beating the competition.
Recognition for being a great manager comes from growing the business and beating the compeition.

If you want help setting up your Record Breaking Business Tracking System, then I want to help you.  Contact me and we will work something out that makes sense for you.  I've written the manual on how to create these systems (literally).

Don't Lose Money

In the early part of 2008, I began reading a book called, "Rule #1" by Phil Town (see below).

THIS TURNED OUT TO BE A GREAT BOOK!  In his book, Town lays out a simple strategy for investing.  Well, as I was reading, I decided to create an Excel spreadsheet and try to apply the formulas that he teaches for evaluating, buying, and selling, stocks.  This spreadsheet was really just to test out the book - to see if it really worked.  Since I wasn't sure yet, I DID NOT INVEST MONEY IN THE STOCKS THAT I EVALUATED USING THESE FORMULAS.  Mistake?  Read on.

I evaluated several stocks, but eventually narrowed my list down to 10 finalists.  They are listed below along with their stock price as of March 13, 2008.

Apple - AAPL                             $122.25
Amazon.com - AMZN                 $68.32
Dell Inc - DELL                           $19.85
Microsoft - MSFT                       $28.62
Wal-Mart - WMT                        $50.60
China Mobile LTD - CHL            $70.72
Qualcom - QCOM                       $40.25
Best But - BBY                            $40.61
Tradestation Group, Inc - TRAD  $10.04
Cisco Systems - CSCO                $24.95

Since March 2008, I think most people understand that markets around the world went into the tank.  With that said, if I had purchased those stocks and then sold them at their high point in the last 52 weeks, 7 out of the 10 stocks above would have made money.  Apple and Amazon could have made me rich.  The 52-week highs for those stocks were:

Apple - AAPL                                      $279.01

Amazon.com - AMZN                          $151.09
Dell Inc - DELL                                    $17.52
Microsoft - MSFT                                $31.58
Wal-Mart - WMT                                $56.27
China Mobile LTD - CHL                     $59.22
Qualcom - QCOM                               $49.80
Best But - BBY                                     $48.83
Tradestation Group, Inc - TRAD           $8.89
Cisco Systems - CSCO                        $27.24

So, for every dollar I would have invested in these stocks (including the losers), I would have made .51 cents profit.  That's a 51% return on investment (ROI) or put another way, a 25.5% ROI annually.  Where else can you get that kind of return?  Some might argue that the answer to that question is Gold, but that's another story all together.

This process doesn't happen without some work, but I'm eventually going to take the steps to evaluate more stocks based on today's financial situation.  I wouldn't do it without this book though.

By the way:  Rule #1 is "Don't Lose Money".

Metric Decision Making

One thing that I've come to understand about management is that it is far too easy to get caught up in emotions and "gut feelings" and when decision making comes from those things, it's very easy to get it wrong. Take firing someone as an example. I'm a top manager and as such, I've had more than my fair share of people who have taken shots at me. I've been insulted and undermined. I've dealt with passive aggressive individuals who were smiling to my face and stabbing me in the back. I've even worked with plenty of people who I just didn't really like very much. I can't just fire everyone that I don't like or who doesn't like me. Sure, if I give a directive to someone who understands and agrees to my face, but sabatoges me or my business when I'm gone, I'm absolutely going to send that guy packing. We need our team members to act like team mates and not like enemies. I think that's pretty well understood.

It's the emotional things that I really want to focus on though. If you don't particularly like someone, you might just have to get over it. Number 1: we dont make decisions based on likes and dislikes - period. Number 2: what if you get rid of a top-performer based on something personal and/or petty? What if you don't even realize that person is a top-performer? What if you don't even know what would define a top-performer? That's a serious problem.

You need metrics to help guide your decisions. You need to know how your employees perform compared to other employees in your company and to other people in other companies within your industry. This starts by knowing how your company performs compared to other companies. Do you know how much revenue each of your employees should generate in a work day. Do you even know how much they are generating at the present time? If not, that's a problem. You need to figure this out.

What about ratios too? Do you know how many people it takes to run your operation? Well, how many customers does each of your employees help per hour? 1? 2? 10? How many dollars does each of your employees generate? How many dollars per hour? Now, what if you don't particularly like someone because your personalities seem to always clash or because that person doesn't seem to want to do things "your way"? What if that person generates $1,000 per hour compared to your average employee who's doing it "your way" and generating $750 per hour? If that's the case, I think it's just about time for you to suck it up buddy.

Your not going to make decisions based on emotions and gut feelings when you can do a little work and find out some really solid metrics to help guide you. Without those metrics, you're going to lose someone who outperforms the rest of your team by 25% when you should be looking at the guy who produces $350 per hour instead.

This way of thinking will save your butt over and over again. It will help you decide which customers to dedicate most of your time to and which customers to stop spending time with at all. It will show you which products are selling the best, even if you don't particularly like them (which won't matter with metrics). As I've clearly shown you here, it will help you make smart hiring and firing decisions so that you don't lose valuable people and poor-performers. If you use your own numbers and compare them as many ways as you reasonably can, you'll be around a lot longer to keep making those smart decisions.

Metric Decision Making > Emotions & Gut Feelings.

Relationship Marketing

Everyone has heard the saying, "If it was fun, it wouldn't be called work". Why does that need to be true? The #1 job of a business is to get new customers. That's pretty fun isn't it? It can certainly take hard work too. Relationship marketing guarantees that the job of getting new customers gets to be fun. It's fun because you begin developing a network of marketing friends to work with every day. Who doesn't want to spend every day working with their friends?

The other thing about working with your friends is that friends usually want to help each other out. I know if I have an opportunity to help a friend, I'm going to do it every time. In marketing, working with friends can and should mean being able to share business referrals and contact lists among friends. If I know 5 people (friends) that could work well with my other friends, then I'm going to introduce those 5 friends to my other friends, and all of those friends would do the same thing for me. These friends get to know those friends and I get to know the friends of those friends, and then we all figure out how we can help each other because we are all friends now and we all want to help our friends while those friends are all helping us.

I know many of you reading this are saying to yourself, "but this is just networking, it's not a new idea." I agree that it's not a new idea, but you would be shocked to find out just how many people aren't thinking about it. I've had an opportunity to present this idea to some of my friends lately and most of them had not thought about it in this way before. I'm offering to do 2 important things for them: 1. I'm offering to do business with them myself. 2. I'm offering to open up my rolodex to them so they can develop business friends with people they never knew before. The key thing here is that they aren't having to do any cold-calling. Instead, they get to pick up the phone and honestly say, "Chris Helms told me I should talk to you." And, because it's a friends of mine, the answer will just about always be YES because friends like to help friends.

In exchange, I get access to the rolodexes of all of my friends, then eventually to all of their friends' rolodexes as well. It's so much easier to do business with friends than with complete strangers. So, create friend-business relationships and do business with your friends every single day. The first step is to share this idea with your friends and get them on board. Next, exchange rolodexes and get to work.

Who are your current friends that you work with? Which of those friends could help some of your other friends? Start thinking about and referring to your current business contacts as business friends. Then, build that relationship up accordingly. Go out with your friends to do some joint marketing to your list of contacts and theirs. If we all help our friends and all of our friends help us, then we will have an exponentially greater opportunity for success.

Are you a Time Cyclist?

One of the hidden costs of business is the cost of doing something inefficiently. You may have a process that gets the job done, and getting the job done feels good. Most people love to complete tasks, but a successfully completed task is not the ultimate measurement for good work. No, the ultimate measurement of good work is when the task is done right with the least amount of steps, people, and other resources needed to do the job. For the purposes of this article, we will refer to efficiency as just that - using the least amount of steps, people, and other resources necessary to do the job right.

So, what is a time cyclist? This is someone who is concerned with doing everything as efficiently as possible. When a task can be done with fewer steps, it just make sense that it will take less time. Just the same, when fewer people need to be involved in any process, the total process time will be reduced because one person is more efficient that two or more. Finally - fewer other resources. These could be office supplies and other materials, software programs, computers, documents, as well as a number of other resources, depending on the particular task. If a new customer can fill out one form to obtain credit instead of two or more, wouldn't it make sense that the total time of filling out a credit application would be reduced? Doesn't it also seem to take less time by using Microsoft Outlook to send email, maintain calendar items, and organize important tasks instead of using your ISP for email, a desk calendar, and a paper to-do list?

Minimizing all of these categories of efficiency reduces the total Cycle Time of all of your company's tasks. And, considering the old adage that "time is money," doesn't it make sense that you would want to reduce the time of everything that you and everyone in your company does? Of course it does! If you're able to help more customers in a shorter amount of time, you make more money. If you're able to do more work with less employees, you make more money. If you're able to get more work done with fewer materials, you make more money. That's the idea of being a time cyclist - to make more money for your company by doing things better (more efficiently).

You should evaluate all of the processes in your organization or business unit for inefficiencies. Your aim is to reduce the total number of steps needed to do each task as well as the total number of people that need to be involved with each task. Everywhere possible, you need to consolidate tasks, remove wasteful steps, and eliminate unnecessary resources. Look at each step from the customer's perspective. How will those steps effect your customers? When your customers see you getting more efficient, they will be WOW'd because they will appreciate you taking less of their time at the same time that you are earning more of their money.

When evaluating processes, write up all of the steps, with great detail, and include the name of the job title who does each step. It's very important that each step goes in order of the person doing the task. In other words, it is very inefficient to go from one person, to another, and then back to the first person, and then to a third person, and then back to the second person, and so on. The most efficient way to do any job is to not only minimize the number of people involved with the task, but the number of times each person has to handle something as well.

Imagine that you're a customer who is calling your bank to inquire about your current savings account balance (because you haven't figured out yet that you can do this online) and the person who answers the phone transfers you to someone else, and then that person transfers you to their manager who can't access their computer, so the manager transfers you back to the original person who answered the phone because he can view his computer fine. Don't you feel like a frustrated pin ball. Wouldn't it have been so much better if the first person that answered the phone would have just answered your question? Absolutely!

And this is the job of the time cyclist - to find inefficient processes and fix them so that customers are happy and the company reduces wasteful costs that lead to greater profits. But, like I said, these are often the hidden costs of business. Don't count on employees to tell you when something can be made easier - especially if that means making their position obsolete. Also, don't expect them to take the time to speak up when something isn't working right, because they are spending too much time working around the problems (insert the "Sharpen the Saw" story here. Google "sharpen the saw" and you can read this story on efficiency.).

So, become a great Time Cyclist and you will save your company a tremendous load of money. This could even be the difference between an overall profit or loss to some companies, and it certainly will set you on a path to breaking records.

Get Promoted!

If you are the top manager in your organization, then share this information with everyone that works under you. However, if you are someone who strives to move up the organizational chain, then this article is for you. You may not be know this, but your managers want you to know this information (unless they're not doing their job effectively and they are worried about you taking it). Bad managers aside, your manager wants and needs you to work at a higher level - a level that makes their job easier and one that fits well inside of the organization. To get yourself promoted, you have to stand out from the rest of your co-workers and do what most of them will not do. You have to get noticed and make yourself known for being innovative, making good decisions, and for being someone who really cares about the business. You can do this by following these directives.

Set Personal Targets for Yourself
Many companies don't set targets for each individual position in the organization. You will though, and it will pay off. Figure out what your average production / performance has been in the past - daily, weekly, and monthly. Then, set yourself a high but attainable target and post that target at your workstation. You already know about business tracking systems, so you need to set one up for yourself. Create a graph of your production and track it weekly and monthly, at least. Your co-workers may be happy to show up to work and collect a pay check, but not you. You're going to set targets, track them, and work like crazy to reach them.

Recommend New or Modified Policies and Procedures
Everyone else does their job without really going the extra mile for the company. You will get promoted if you recognize outdated or flawed policies and procedures and you recommend a better way to do them. These kinds of policies and procedures exist in EVERY organization. You just have to keep a close eye out for them and don't hesitate to make suggestions to your manager.

Dress to Impress
If your company has a strict dress code, then it's important that you always adhere to that policy. However, if your company allows you to dress in any kind of business attire, then always dress to impress. A good rule-of-thumb is to be the best dressed person you meet each day. You're not dressing to intimidate or because you think there's a fashion show in town. Instead, you dress well enough to show your managers and the company that you care about your job and you respect your managers enough to show it. As part of this, always maintain a very neat and well-groomed appearance. Dressing to impress and being neatly groomed will get you noticed.

Stay Out of the Gossip and Rumor Mill
All companies have employees who spend far too much of their time and energy with gossip and rumors. Good managers hate this and you must avoid it. You need to be known as someone who rises above such things. If a co-worker wants to talk to you about rumors or gossip, don't hesitate to tell them that you would rather not get into it. Just stay out of it.

Write up Your Post
The best way to move up in the organization is by writing up your current job so that it can easily be given to someone else. With a clearly written job description that includes all of the steps that you take to do all of your daily tasks, you can even train your replacement. This makes your manager's job easier because she won't have to spend time in training. It also shows your managers that you think about the business as a whole and not just about your business unit. They will know that whatever position you hold, it will be a high-performing and efficient position, that will be a success for the organization. Writing up positions is the job of the manager, so show your company that you are willing and able to take on that role.

Always Follow Policy
The surest way to not get promoted is to not follow policy. Having to be warned and written up will stick with you. So much of company policy is just common sense. Get to work on time, clock out for lunch breaks, don't falsify time-keeping and other records, etc, etc, etc. Policy exists so that managers can focus on the core functions of the business and not have to waste time baby sitting the staff. As a person who wants a promotion, you won't need baby sitting, but in spite of the common sense nature of policy, others surely will and you will be their boss someday.

Be a Super-Nice Person
Speaking of common sense, you need to be aware that people want to be around those who they find to be interesting, fun, and nice. Like it or not, it really does matter if people don't like you. When you're not likable, your probably also not promotable. This is quite simple. Smile a lot. Give professional compliments to others. Shake peoples' hands. Tell people when their doing a good job. Say nice things about your co-workers to their managers and say nice things about your managers to their managers. Being likable is a common sense principle of influence, so use this to your advantage and be a nice person.

If you do these things, you deserve a promotion. If you do it and you find that it's not working, it's probably because you forgot one simple thing - be sure your managers know these things about you. Show them your graph. Give them the write-up of your post. Submit a summary of policy you recommended at your next performance review. If you've done these things, you're dressing to impress, you're a super-nice person, and you clearly follow all company policies, then all that's left is to ASK. Remember: you have to ask for the things that you want, so ask for the promotion. If you don't get it right then, you will surely plant the seed in the minds of your managers and that seed will grow until you do get promoted.

Decision Making is Not a Popularity Contest

"When I've heard all I need to make a decision, I don't take a vote. I make a decision."
- Ronald Reagan

As a manager, when a decision you make doesn't work out quite the way you planned, who's going to be held responsible for it? You are. If you only make decisions based on others' approval, do you think those other people are going to be around if the decision turns out badly? Of course not. So, why should your decisions be a popularity contest? So often, I've seen managers who don't want to make decisions without the approval of others around them. This is because they aren't confident in their decision-making ability, they fall to the pressure of other strong-minded individuals, and/or they just don't want to take risks that are part of big decisions. Management exists because someone has to take the lead in business. So lead. Don't let your decision making be part of a popularity contest. Here's how it's done.

1. Identify the problem or the area of opportunity that a decision must be made on.

2. Talk to those who are involved in this specific area. The purpose of these discussions are to gather all of the available information from the perspective of staff - not to gain approval.

3. Review any other available data that could be helpful in making your decision.

4. Measure the potential financial impact of the decision - positive or negative.

5. Decide and put the plan into action.

The point is simple: all you need to make your decisions is relevant information. Once you have all of the available relevant information, you then must decide, act, and don't look back. All of your decisions will not be popular with everyone that you work with and they don't need to be. They just need to be good decisions based on relevant data. Don't get lost in popularity contests and don't get bogged down in the fear of big decisions. To be certain, important decisions bring with them various levels of risk. That's part of the deal, but you are in a position to lead by making these decisions. So, don't leave them up to the consensus of others who won't be around if the deal goes bad.

I want to note that I'm not suggesting that managers should ignore the good advice of others around them. Good advice is part of the information-gathering process. I'm just saying that it's up to you how you use it. Never ignore good information.

Finally - when you make smart decisions based on relevant data and the deal goes as planned, who do you think should get credit? This is a 2-way street. A leader who is able to make tough decisions, based on all of the available, relevant data, deserves all the credit - especially considering that you'll take all the blame if it goes bad. And, if you allow your decisions to be part of some group consensus, expect to be lonely when the group was wrong. Be strong and lead with good decisions.

Covert Customer Loss

Smart companies budget their marketing, advertising, and sales costs, and these costs can be significant, but even greater when they don't produce the desired results. Take the following example into consideration.

Say you spend $15,000 per month in total marketing, advertising, and sales costs. For this, you expect to get 100 new customers per month. That's $150 per new customer (assume this is a great deal with a high return-on-investment). What if you only attract 80 new customers? Now your cost is almost $188 per customer. Many companies have relatively low profit margins which means when your cost per new customer increases by $38, like in this example, your margins are swallowed up in the new customer loss. Incidentally, another way to look at this is that with only 80 new customers, you lost $3,000 in advertising costs (because they were ineffective) plus all of the sales revenue that you hoped to receive from those lost 20 new customers. Assuming a 10% margin, each of the 20 lost new customers would have brought the company $165, for a total of $3,300. That's a total loss of $6,300 per month, and over $75,000 per year if this continues. Wait just a minute!

$75,000? We should probably take a deeper look into why our marketing, advertising, and sales budget was so ineffective. So, you go back and find that your ads are perfectly designed and perfectly located in the perfect geographic areas and media to make a perfect impact. Your sales team is doing a perfect job attracting new customers and your marketing plan was written perfectly to maximize the company's tools in each of the promotional areas.

Really? Then what happened? All of this perfect effort achieved a 20% loss in new customers. I'll tell you what happened. Your receptionist turned away new customers when they called because she didn't understand how valuable that call was. Your on-site staff wanted to leave early a few nights so they weren't available to help the new customers. Your phone was busy when the new customers called, so they just called the next number listed in the yellow pages. Your staff underwhelmed new customers by their lack of customer focus or by their lack of product knowledge. You had some crazy policy or procedure that unknowingly limited new customers and nobody told you about the problem. When the customer called, your phone sales staff wasn't trained well enough to close the deal.

And. . . all of this stuff happened right under your nose. It happened in the evening when you were no longer in the office. It happened during the afternoon when you were really busy working in the business. It happened because you and your management team didn't have or make time to ensure that it did not happen. This is one other very important reason for you to spend more time working ON the business than IN the business. It's another reason that you must focus your effort on training, not only your staff, but their managers as well. You need to set up "secret shopper" phone calls to find out what's being said on the phone. Send "secret shoppers" into the office / store to find out how the on-site sales team operates. You must find all of the areas of covert customer loss that kill your business right under your nose.

When you don't know that all of these things are happening (and believe me, they are happening), you spend more time on advertising. You fire your sales team, you re-work your otherwise effective marketing plan. You spend valuable time and money on all of the wrong things and then as a result, you continue to get the same poor returns.

Be aware of your company's areas of covert customer loss. Find them, and you will see the result of your otherwise excellent plan, people, and marketing materials.

Blown Away

I had a recent experience at a local tanning salon, named MAX TAN, that literally blew me away, from the perspective of customer service. It made such a huge impression on me that I feel compelled to write about it. The lesson you will learn is so simple: remember names and address customers by name. Here's the story. . .

I last visited this tanning salon 5 years ago. When I decided to go back 5 years later, I walked in and the manager, who was there 5 years ago, said, "Hi Chris". It stopped me in my tracks. I couldn't believe it. He remembered my name after 5 years. He walked around the corner from a hallway, made eye contact with me, and addressed me by name without hesitation. I have to admit that although I recognized him, I couldn't remember his name. He made a dramatic impact on me (and I teach this stuff!). Of course, I asked him, "How did you do that?" He didn't have any tricks. He said that he just remembered. Every day since then, he has addressed me by name and I always remember the 5 year thing. What an impression!

The other great thing about this company is that every person who works there addresses me by name - even some of the people who I have never met or been introduced to. One of the employees even opened the door for me when I left there today. This company truly gets CUSTOMER SERVICE. What does it cost them to use my name? Zero! Guess how many people I've told? Before writing this article - at least 10. That's the best marketing a company can ever hope to get - a customer's enthusiastic testimonial and recommendation.

As an additional note on this company's overall service, their salon is always ridiculously clean, the employees are always smiling and making eye contact, they price their services reasonably and give customers multiple options for the various levels of available tanning agreements. They are simply unbeatable.

As a business manager, or as a person who simply wants to make a great impression on others, take a lesson from MAX TAN. Address people by name. Do whatever it takes to remember names. There are books available on remembering names. Get one if that's what it takes. Take pictures (with consent) of your customers to attach to their profile in your company database. Whatever it takes, address customers by name. You will blow them away.

Don't Get Mad at the Money

As I've said before, customers who complain are a valuable opportunity for a company. Unfortunately, many times, when customers do complain, staff get upset or even angry. They take it personal because they don't realize what a great opportunity that complaint can be. It will give them an opportunity to evaluate and improve systems, products, staff, and services. You need to train your employees to accept complaints and learn from them. Even more, you need to train them to thank customers for complaining and giving them an opportunity to improve.

In my office, when a customer has a complaint that hasn't been handled to their satisfaction by another employee or supervisor, I always speak with that customer and make them happy if it is at all in my power to do so. What I usually find is that one of my employees has followed policy the way they were trained to do, but the situation warrants breaking policy to make the customer happy. Some policies are meant to be broken on a case-by-case basis. After all, policies are for staff - not for customers. I'm not talking about very important company policies like the ones that address following laws or that prevent workplace injuries. I'm just talking about "smaller" policies. For example, my doctor's office has a policy of needing to personally meet with patients who need certain forms filled out. Well, if that patient (customer) is going to be late getting back to work if she has to wait long for the doctor, maybe we can just interrupt the doctor and get the formed filled out right then. We have another policy of taking our last patient 30 minutes before we close. However, if a new patient were to come in 15 minutes before closing time, it's a good idea to help them out and get an account started so that we can see them again tomorrow. These are less important policies that are meant primarily to maintain order and give all associates a frame work for how to operate. They are not policies for customers, so customers don't need to care about them.

When a customer talks to me and I "over-rule" one of my employees, that person will sometimes be upset with me because I didn't "back them up". I just tell them that making customers happy is the top priority for all associates at all levels of the organization. I'm a brick wall when staff complain about customers. Customers = Money. So, I say, "Don't get mad at the money."

Train your staff to make customers happy and empower them to break policy on a case-by-case basis, to make customers happy. At least encourage them to talk to their supervisor about finding a solution that can make the customer happy. Complaints are a valuable opportunity for creating happy customers that refer other customers.

Don't get mad at the money. Instead, make customers happy so they will tell all of their friends about how you went above and beyond to take care of their needs.

Working ON the Business

As a top manager or business owner, the way you spend your time at work will determine the impact you have on the business - either positive or negative. You can not allow yourself to get buried in the day-to-day tasks of your organization. If you, for example, answer phones, stock shelves, purchase inventory, or do other work that could be handled by someone else, you are hurting your business because you aren't serving your primary purpose of growing the business. When you spend most of your time working in the business, it's like you're a hamster on a wheel - you're working really hard and getting no where.

As the top manager or owner, you need to spend the vast majority of your time working on the business. When you work ON the business, you are doing things that grow the company in many different ways, from creating policies and procedures, to devising strategy for getting new customers. Some tasks that you should be doing instead of the day-to-day tasks of the operation are:

1. Writing and modifying policies and procedures.
2. Writing marketing and strategic plans.
3. Creating budgets and reviewing financial statements.
4. Talking to customers to get their feedback on ways to improve the business.
5. Training others to do the day-to-day tasks of the organization.
6. Reviewing sales reports.
7. Reviewing your chart of graphs to find problems and opportunities.
8. Training people to do the training of others.
9. Delegating assignments and following up on their completion.
10. Working with suppliers to get better deals.
11. Talking to established clients and future prospects.
12. Talking to your staff to find out what problems they are having and identify areas needing improvement.
13. Creating new products for sale.
14. Building alliances with complimentary products and services.
15. Finding ways to get more efficient.

These important tasks can not be left to someone else. You are ultimately responsible for the success or failure of you operation. Jefferey Fox suggests (and I agree) that you first need to hire a office / business manager and a marketing / sales person. You will be able to delegate many key tasks to these positions which will save you the time you need to work on the business. While these people will also be charged with doing their part to work on the business, their key responsibilities will be to work in the business and ensure that your priorities are handled effectively.

Working ON the business is the only way for you to grow the business to the level that you envision in your own mind. Start delegating the day-to-day tasks of the organization and do the things needed to grow your business.

Management Fire Fighters

A management fire fighter is someone who is great at fixing problems. In fact, they know exactly what to do in most problem situations. Everytime a customer complains, the management fire fighter is there to fix the problem. Everytime a staff member has a problem, the management fire fighter knows the solution. That problem can happen over and over again, and the management fire fighter will never forget the solution. The management fire fighter will handle problems as often as they occur, even if a subordinate manager is there to help. The management fire fighter doesn't need to waste any time teaching others how to solve problems, because solving problems is his job. To the management fire fighter, fixing problems feels good. It makes that manager feel very useful. And, while the management fire fighter feels really good about always being able to fix every problem over and over and over again, he is also damaging the business.

As a manager, everytime you have an opportunity to solve a problem, you should take extra time to write it up. Writing it up means identifying the problem, determining its root cause, and implementing a solution - all in writing. After its all written up, you then need to train those involved, with your new written solution, so that the problem never happens again.

Many times, organizational problems occur due to a lack of policy or inadequate existing policy. When you find this, you must recommend and implement new or revised written policy and then distribute it throughout the organization. Policy is another form of written solution to problems. In absence of solid, written policy, people will make up their own rules. While they probably think these unwritten rules make sense, they very well may not fit into the bigger picture. It is the manager's job to make sure employees do not need to create their own rules.

Similar to written policies, managers need to also implement written, step-by-step procedures for how to do each job. It doesn't matter if only one person is involved in a process or if multiple people are involved, written routing procedures will crystallize the task and make it more simple. Written routing procedures are also excellent training tools. Managers can literally teach each step of the process, one-at-a-time, to make sure each new associate is able to do their job successfully. Finally, written routing procedures can be made more efficient because when working the procedures, you can find ways to make each procedure more simple or to combine processes so that the cycle time is at its lowest. Shortened time cycles can give an organization a decided strength advantage over the competition.

The last way a management fire fighter damages the business is by not training other managers how to do the job right and how to train others to do the job right. Instead, the manager should always have the direct supervisor involved in the solution, writing up the problem, creating policy, fine-tuning routing procedures, and training staff. When you are able to delegate future problem-solving to your subordinate managers, your time will be free to make big-picture decisions and grow the business instead of hurting the business.

So, don't play the role of management fire fighter. There is absolutely no value in fixing every problem over and over again. Write it up. Implement effective policy. Create routing procedures. Shorten time cycles. Train managers. Focus on the big picture.

Management No-No's

As a manager, you must be held to a higher standard than that of those who report to you. No - you must hold yourself to a higher standard. If you don't, then how can you ever expect anything that resembles excellence from your staff? Clearly, you can't. So, let me point out some things that I have seen managers do that you should never do.

1. Don't have a personal vendetta against anyone. It is unacceptable for you to "be out to get someone". I see this mostly when managers feel insecure about their own performance or when they fear that someone under them might take their job. First of all, nobody should ever be able to "take" your job. When you chronically under-perform, you are giving your job away to someone who can do better. So, work hard, be smart, do excellent work, and treat people with dignity and respect. If you find yourself being "out to get someone," don't be surprised if it is you who is gotten.

2. Don't place blame on someone else, or as I like to say it, "throw someone under the bus". As the manager, you are ultimately responsible for everything that you are responsible for. If someone under you messes up, it was your job to have trained them not to make that mistake in the first place. If you did train them, and they continually make that mistake, then it is your job to put them in a more fitting position, or to free up their time to find a better position elsewhere. Placing blame is a sign of weakness in managers. It is unnecessary. Instead, find a solution for problems and fix bad situations.

3. Don't be messy and disorganized. I once heard someone say that if you want to know something about a manager, take a look at their desk. Stacks of paper usually mean unfinished business. Papers scattered all around the desk and office usually means forgotten and thus unfinished business. A messy work area creates a very poor image of the manager and as a manager, you want people to think highly of you, don't you?

4. Don't make excuses for poor performance. First of all, nobody's perfect. Mistakes happen. Own up to them and figure out a way to avoid them in the future. Also, instead of excuses, promote how you will make sure performance will improve. A sign of a good manager is the ability to acknowledge areas of poor performance and fix them. Don't waste anyone's time giving excuses. Just fix it and move on.

5. Don't be a sniper. I hate hearing constant negativity being thrown at people, policies, situation, etc. Managers can not constantly criticize others. They can't use meetings to "throw others under the bus". They can't constantly criticize company policy (especially to their subordinates) and they can't criticize the boss publicly. Snipers always find time for negativity. They always find time for criticism. This just makes me want to take a deeper look at them and see what problems they're causing.

Be a good manager and avoid these no-no's. If you fit into any of the above categories, there's a better than zero chance that you won't get to stay there for long. Be nice. Be positive. Be professional and organized. Be a problem-solver and not a problem-maker.