Tuesday, June 17, 2008
Human Resources Outsourcing Maintains Double-Digit Growth
Effectively managing Human Resources has become a daunting and complex task for small to mid-market business owners. U.S. corporations must grapple with one of the most complicated systems of employment laws in the world. This includes a laundry list of unfriendly policies, including laws governing hiring and termination, family leave, sexual harassment, paying employees, leaves of absence, employee benefits, and workers' compensation. In just the first months of 2007, dozens of laws dealing with every subject from discrimination to wage deduction have been enacted.
Putting HR in Expert Hands
One solution for frustrated business owners is to turn to Human Resou rces Outsourcing. An HR Outsourcing firm allows companies to shift responsibility of nonessential jobs that can be handled easily, and inexpensively, by off-site experts. An HRO Firm can either specialize in a niche service, or in a wide range of management and strategic solutions. These broadly include:
" Labor Law Consulting " Management Training and Employee Development " Employment Paperwork Administration " Employee Benefits Packages and Administration " Risk Management and Safety Services " Payroll and Tax Services " Insurance Solutions, including Workers' Compensation and EPLI (Employee Practices Liability Insurance)
In a recent survey by the Society for Human Resource Management, or SHRM, professionals in the industry were asked their opinions on HR outsourcing. Reasons to consider outsourcing included saving money, focusing on strategy, improving compliance, improving accuracy, lacking experience in-house, taking advantage of technological advances, and offering services they could not offer.
In that same SHRM report, HR professionals said the top function outsourced was 401k administration, along with training, health care and employee benefits administration, payroll, staffing, background checks, recruitment and policy writing.
Once HR and other operations are outsourced, many companies experience a strong return on investment, according to a recent survey of American executives. The 2006 survey of executives at the IDC Midwest Conference in Chicago showed nearly 85 percent of the respondents saved as much as they spent on outsourcing, with 26.4 percent reporting a savings of twice as much. And the savings, according to nearly 95 percent of the respondents, went toward operational performance and innovation, which improved shareholder value.
According to IDC, a market intelligence firm based in Massachusetts, companies worldwide are expected to spend more than $103.3 billion just on Human Resource Outsourcing this year, up significantly from the $61.2 billion spent in 2002. In the U.S., HR Outsourcing is the fastest-growing segment of business process outsourcing (BPO) and is expected to grow annually at a rate of 16 percent.
The frustration brought on by the government's obtrusive standards can be offset by the value found in HR Outsourcing. As any business who has experienced the benefits of HR Outsourcing will say, they finally have the peace of mind and time to focus on the only thing in business that really matters: their bottom line.
The ISO9001 Audit
The current (year 2000) version of ISO90001 is clearly focussed on the definition of a Quality Management System. This is by convention the mechanism by which an organisation defines and manages the quality of its output delivery. This current document is the latest in a series of ISO Standards devoted to the topic, and shortly to be replaced by a 2008 version - but not just yet. These Standards can trace their direct history back to the middle of the last century, these having antecedents with origins certainly back to the early 20th Century.
Originating within the manufacturing industry, and until comparatively recently predominantly focussed there, their original objective was to control the manufacturing processes so as to correct the errors endemic within the ethos of working class operatives. It was a 'given' that product (and now service) errors occurred due to the nature and attitudes of the workers employed. Seldom was it considered possible that errors and omissions - i.e. defects, could be related to the management or management methods employed within the industry. Standards were therefore developed with the sole purpose of identifying and correcting failings before they became a problem for the customer, or servicing the customer need for corrective action after delivery. E.g. warrantee. The current ISO 9000 philosophy is founded on the strategy Plan Do Check Act, and for Act we can reasonably say 'Fix' - although this isn't how Act is normally explained in the publicity blurb. Clearly this is an implied acknowledgement of potential failure, rather than a strategy to avoid failure.
For those who doubt this is correct, consider how often you have heard the expression - it must be a Monday morning or Friday afternoon product. Maybe partly in jest, but originating from the concept that workers generally don't care, and systems have to be devised to put right what they, the workers, do wrong.
As the years have gone by, the Standards have developed and their presentation has changed to a less prescriptive form, but underneath lies the same concept, that all work is prone to error, and management planning must recognise this and act accordingly. The possibility that work of any kind could routinely be carried out 'error free' has no position within this standard or any other.
This failure to recognise what is both a major weakness and an opportunity is not confined to Standards makers, but is endemic in much of industry and commerce. A major supplier of domestic kitchen fitments has recently conceded that they have increased the investment in their after sales service operation - in other words, in the rectification processes following a new installation. The possibility that the money could have been spent solving the cause of the problem rather than correcting it does not seem to have been considered. Is it any wonder that organisations continue to believe that the ISO Standards are useful only in the context of enhancing the marketing image of the company?
How Can A Virtual Assistant Help You?
This simple reason can be summed up in this sentence: almost everybody has a practical reason to get them. A virtual assistant can work in practically any kind of industry. This all comes from the selection process that the client wants.
A virtual personal assistant can have different kinds of clients or employers.
Small to Medium Scale Businesses Most companies that gets virtual assistants are small to medium scale companies. These are shops and entrepreneurs that are either just starting or flourishing already. Startups have a lot of tasks that are better delegated to someone else, like website promotions, creative writing, forum posting, blogging and database management.
Medium scale businesses on the other hand, can also benefit with a VA working on the same tasks but with the addition of possible file management, support and assistance that a working business model could eventually need. Some outsourcing companies like Agents of Value, can help you screen and get the kind of personnel you want, easily and quickly.
Home-Based Businesses Then there are businesses that can range from handicraft makers to home bakers- businesses that operate right from their own homes. Since these businesses do not require an office and a building, it is most prudent and practical to hire a virtual assistant to meet their promotion and creative needs. Often, these creative tasks can be brochure designing, blogging and writing. With a VA working for the employers, they are free to do their specialized tasks and skills in their own time, while getting the promotion they need.
Professionals Professionals can be lawyers, real estate agents, doctors or accountants. In their line of work, they certainly will need an assistant that can help them sort out their files, data and schedule. In addition, more and more professionals today are setting up a website of their own, where their portfolio and credentials can achieve wider promotion and recognition. A virtual personal assistant can help with these and with so much more.
Large Companies Bigger companies are usually known to outsource skilled people for different projects and jobs. However if the job at hand only needs one to two persons, is specified and takes special skill, then hiring a virtual personal assistant may be much more practical. Several companies do this mainly because it is easier to manage at the fraction of the cost.
When a business starts to grow, it is a wise choice to keep your attention and energy into directing your business where you want it, not spending your time doing tasks that other people can do. Most often than not, these tasks like blogging, designing and writing can be better done by other people, especially if you think they are not your forte.
Continual Improvement with ISO 9001 - Perception or Reality
A common perception of the requirement 'continual improvement' contained within the ISO9001 Standard (8.5.1) is that in some way it relates to an improvement of product or service. Some more serious thought might reveal this to be a misinterpretation, as the document is not a product or service specification, but a system for controlling the quality of the product or service through the output. Title - ' ISO9001:2000 Quality management systems - Requirements'. So, in so far as the Standard relates to the organisations' output, it defines a control and assurance system that should provide a measure of conformance for the outgoing product. The improvement requirement refers to the manner in which this control is affected. |
Virtual Assistants are Saving Small Businesses Time and Money!
Virtual assistants provide various services to small business owners to help with the tasks that are needed. Each Virtual assistant should be able to provide some basic services for their clients. These basic services would include tasks like: email management, customer service duties, organizing files and typing documents, data entry, making appointments, and customer follow-ups. Some well-trained and more experienced VA’s may offer specialized skills like: Website Designing/Updating, Accounting/Bookkeeping, Desktop Publishing, Power Point Presentations, or Writing & Editing. The list of services an experienced VA may offer is not limited to the above examples. Businesses are starting to use VA's rather than full time employees because they only pay them for the work they do. Business owners don't pay for office space and they don't pay for insurance or bonuses. Many small business owners want to run their own business and be successful, yet they do not have the experience or management skills to do that alone. That is where outsourcing specific workloads to a VA can save the business owner time and money so that the owner can focus on the areas of business they are experienced in thereby, allowing the owner to optimize their valuable time and resources. The following points illustrates how valuable a good VA can be to even the smallest business: 1) Better time management: Statistics suggest that owners of small business typically spend between seven to twenty five percent of their time handling employee-related paperwork issues which consume most of their productive time. But by outsourcing some or all of their employee-related functions - such as payroll, bookkeeping, business owners can focus on what they do best. And in the process they can improve productivity and even save some money. 2) Better efficiency: Business owners who do everything by themselves often suffer from lack of expert services. Expertise offers work done in less time. Studies prove that increasing the efficiency of operations is the propelling factor behind 58% of the outsourcing decisions of businesses. 3) Better Cost Control: By opting to outsource, companies can convert fixed costs into variable costs. So business owners can put money directly into revenue producing activities. This gives the business owner more control over his expenses both short-term and long-term.
So when a small business owner comes up against something he/she is unfamiliar with in our ever competitive business market, an experienced Virtual Assistant can make a big difference in how well a task is done and in how expensive it is to complete. Outsourcing could be the temporary fix to keep a small business owner in the game. Time is money and every dollar counts when a small business owner is struggling to survive.
Superior Quality
I have to emphasize at this point, that the purpose of this story isn't to point out that I like to spend money. In fact, as I get older, I'm becoming quite cheap - each penny becomes much harder to part with (I must admit at this point, that I did manage to "haggle" down the price slightly, but this was done more as a matter of principle than by any other motivation). The fact that the quality of this contractor's work has always been so high merited the additional cost, from our perspective.
I'm sure that at least one person reading this article will, by now, have noticed that I didn't mention getting any additional quotes from any other painting contractors. I didn't shop for the "best price" around. This is absolutely correct - I wasn't as concerned about competitive pricing as I was about superior service. This is our home, where we spend most of our free time, and we wanted it painted by the best painter we could find. We weren't looking for a commodity service; we were looking for a craftsman. When the work was completed, I didn't want to see (and wouldn't accept) paint spatters on my floors, over-run on the ceilings, or streaks on the walls.
I'm presenting this story as I think it serves as a good example of the business advantages associated with providing the highest quality goods and services. If you consider your business, which category does your company fall into? Do you focus on providing commodity services/products at cost-competitive prices, or do you focus on providing superior results?
While almost every organization commits to the latter (superior products and/or services), many organizations have great difficulty making inroads to realizing this objective. We continue to search for new ways to improve our competitive position in the marketplace; however we tend to focus more on competitive pricing and increased sales volume than on the results of our performance, often considering our quality failures as "part of doing business". In many cases, these failures are even considered as part of our budgeting process.
While the connection should be obvious, many organizations fail to realize the true impact of product and process performance on the overall performance of the organization. Quality problems destroy customer trust, which in turn reduces our sales volume and/or causes us to lower our prices. Quality problems erode our profit margins as a consequence of rework, warranty repairs and customer back-charges.
In contrast, superior performance creates a stronger brand image, builds customer loyalty, allows us to charge a fair price, and our profit margins become more robust, due to lower costs as a result of fewer quality problems. Increased sales are generated through referrals and word-of-mouth, instead of aggressive sales tactics and discounts. Instead of planning for poor quality, shouldn't we be focusing our resources on providing superior performance?
Just as a final note, as of this writing, the painting of our house has been completed. The results are wonderful, and have well exceeded our expectations. We both got what we wanted: the painter got paid what they believed they were worth and we got the results we wanted, when we wanted them. In my mind, this worked out as a bargain, and it was money well spent. Not only would I refer them to others, I will use them again.
Mark Randig is the President and Founder of MAS Solutions LLC., a Houston Texas based consulting firm that specializes in helping companies achieve breakthrough performance by focusing on Quality Enhancement and Productivity Improvement. To get your FREE copy of Mark's newsletter "The Quality Specialist", go to http://www.masquality.com
Pass Your Next Drug Test with Real Powdered Urine
Because they are cost efficient, fairly accurate and simple to administer, the urine test is the most common type of drug test used by employers. As you may already know, when an employer wants you to take a drug test, they will normally give you a short time frame to visit a drug testing lab and take the test. When you visit the drug testing laboratory, you will provide them with a sample of urine. After they analyze the sample you provided, they will send the results to your employer. Most laboratories will analyze your urine for five groups of drugs: amphetamines, cocaine, methamphetamines, marijuana and opiates.
So, if you know that your own actual urine will not pass a drug test, what can you do to avoid losing your job? The key is investing in a reliable product that will ensure you pass your next drug test. When choosing a product to help you safely pass a drug test, it's extremely important to understand one thing: synthetic urine is not a reliable product for passing any drug test! Although synthetic urine was once a viable way to pass a urine drug test, it no longer works. If you attempt to use synthetic urine to pass a urine test, the laboratory will quickly detect it and you could still end up losing your job.
As any ethical drug testing company will tell you, real powdered urine is the reliable way to pass a urine drug test. Because it is drug-free powdered urine from an actual human being, the laboratory's screening is unable to detect it. If you want to ensure that your job doesn't end up in jeopardy, skip the cheap synthetic urine and invest in a real powdered urine kit. By choosing real powdered urine, you can be completely confident when it's time for your next drug test!
What Happened to the Bird Flu Threat to Your Business?
Fortunately the worst case scenario is the least most likely to transpire. That is for the virus to mutate into a highly contagious strain, and for it to kill over 50% of people it infects (as is the case with the current bird-to-human only cases). The consequences of this would be catastrophic and the survivors would have to get used to a very different world. Ironically it is this doomsday approach which has prevented many businesses from taking any preventative steps whatsoever to prepare themselves. What's the point?
In fact the most likely scenario is not doomsday at all, there is definitely a point to preparing, the most likely scenario will be far less devastating.
Whilst it is true that virtually every person on the planet will at some point contract the pandemic flu, some 50% of those infected will not even know they have it, 40% will suffer from only mild discomfort (as with the ‘normal’ seasonal influenza), and only a small percentage of the rest who suffer severe discomfort will succumb to it, leading to perhaps at most a 1% to 2% fatality rate. This has been the case for previous pandemics in history such as the Spanish Flu pandemic of 1918. Additionally, the pandemic medical research and technology race-against-time we are witnessing may lessen those numbers still further.
Whilst even a 1% to 2% fatality rate is still catastrophic it will not fundamentally alter our society. In quantative terms, a company of 1000 people could expect to lose 10 to 20 staff over the 18 month duration of the pandemic, probably less of a loss in number terms than is the normal staff turnover rate. These relatively small numbers however disguise the crippling effects an outbreak would have on business, as plans must be in place to carry operations through weeks or months with a 50% or more personnel absenteeism rate, with even healthy staff off work due to fear, home quarantine and caring for others.
Based on pandemic events throughout history, most experts agree that the next pandemic will last approximately 18 months and come in three distinct waves. Human nature is such that at the commencement of the pandemic, and to a lesser extent on commencement of each subsequent wave, fear and panic will grip society with most isolating themselves and their families from close contact with other members of the public. This ‘over-reaction’ was evidenced in the cities affected by the SARS outbreak of 2003, with many travellers reporting prejudices against them worldwide if it was known they had been in an infected area. As tragic as it was only 895 people died from SARS, far less than most of the other scourges which plague our modern society, medical or otherwise.
The Truth About Urine Drug Tests
While there are other forms of drug testing, the type that you will almost always face is urine drug testing. The process of urine drug testing is very straightforward. Once your organization informs you that you need to submit to a drug test, you will have to visit a drug testing laboratory within their specific window of time. After submitting a sample of your urine to the laboratory, it will be checked for the presence of opiates, marijuana, metahamphetamines, cocaine and amphetamines. Once the laboratory has finished it's analysis, your organization will receive a report showing whether you tested positive or negative for each substance.
Unfortunately, when faced with a drug test, many people try to figure out how long they need to stay clean. Although a quick Google search will return tens of thousands of websites with detection time tables, every single one is simply an estimate. Factors such as usage frequency and the composition of your body all play a role in the length of the detection period. This means your detection period is probably significantly different from the person that read this article before you.
The only guaranteed way to pass a urine drug test is with real powdered urine. Although unscrupulous companies that sell inferior products such as synthetic urine will lie and tell you otherwise, powdered urine from an actual, drug-free human is the only undetectable method for passing your next urine test. So, instead of driving yourself crazy trying to guess how long you need to stay clean or throwing money down the drain on a useless product, all you need to do is get a real powdered urine kit. This simple product will give you full peace of mind every single time that you're faced with a urine drug test!
Making Culture Your Ally in Clinical Information System Implementations
"We knew from the beginning one of our greatest challenges was overcoming a prevalent attitude of doubt within the organization as we moved to a paperless clinical information system. Once we showed quick wins and provided proof that we could make things better, we built a following among all the stakeholders at UIMC. By creating a passion for our mission, we transformed the way we deliver care, improving patient outcomes, reducing waste and variances, even improving our retention rate among physicians and nurses. And while everyone has embraced the new system, the principal beneficiaries are our patients," said UIMC's current Associate Vice Chancellor of Heath Affairs.
The case history described by Joy Keeler provides instructive insights into achieving success with CIS and tackling arguably the most challenging barrier of all – organizational culture. Instead of something to be feared, a renewed and revitalized culture can be your most important ally, as Joy Keeler discovered.
Of all the approaches we have practiced and observed over the last 25 years as consultants to the health care industry, we believe the following ten are the most powerful and most likely to lead to making organizational culture your ally vs. your worst nightmare.
1. Create Passion for the Vision, Mission, Values and Strategies Whatever your organization’s reasons for embarking on a CIS initiative, make sure that all key stakeholders know, understand, and embrace the objectives and can articulate "what we are doing and why we are doing it." Success for this huge undertaking will require a ubiquitous commitment to quality care…and many specific goals such as eliminating medical errors, waste, delays, unnecessary variance as well as improving patient satisfaction and your strategic positioning.
2. Measure Readiness Early …and Conduct Periodic Check-ups A formal assessment of your organization’s readiness for CIS will help you understand the major barriers you have to overcome. Assessing readiness and undertaking a readiness improvement effort is as vital for this type of initiative as physical training is for a marathon runner. Readiness can be measured in many ways, including: Technical Readiness, Workflow Readiness, Culture Readiness, Financial Readiness, and Project Management Readiness. We know this is a lot of "readiness," but it's a critical part of successful implementation.
3. Deal with Cultural Challenges Proactively Two very common cultural challenges (courtesy Dr. Jeffrey Rose, CMO, Cerner Corporation) include Infobia, or the fear of appearing incompetent using technology, and Archetypal Medical Tradition, which drives resistance to standards, guidelines, and outside scrutiny. Simply hoping that these challenges will go away by themselves is naïve – intervention in the form of education and skill-based training is required, which will only be possible if all key stakeholders are on board.
Make Concrete Blocks For A Living With A Solid Foundation
If you are looking for a good business,which you can start from home at low cost, making concrete blocks and other concrete products is a great opportunity.Starting with a part time business,using hand made molds,you can get going with as little as a few hundred dollars for supplies and materials.You can operate out of your garage then as business grows and you need more room you can expand to rented premises.The secret is to keep your costs as low as possible to start with.Too many businesses fail in the first year because they spend too much money unnecessarily on rents and equipment.Start with the necessities and add more as you grow in profitability.
Concrete products of all kinds are obviously heavy and bulky.To transport them for long distances is costly.As a local manufacturer you can supply these products to customers in your area for a lot less than a distant manufacturer can.Your savings in cost of transportation allow you to price your products very competitively.As a small operation working from your garage you have little overhead cost.No rent,no staff wages mean low production cost.Again this allows you to price very competitively and still make an excellent profit.
The only things needed to start up are sheet metal and plywood to make the molds. You can obtain plans with instructions on how to do this.To manufacture concrete blocks you will need Portland cement,gravel,sand and water. You can obtain all of these from local building supply storers and lumberyards.
With hand made molds one person can make 100 cement blocks in a days work. You simply fill the molds with the appropriate concrete mix then turn the blocks out to dry.This is pretty simple.Then as your business expands you will want to acquire a concrete block making machine which can turn out many more blocks per day than you can with hand molds.
You can buy concrete block making machines from various sources.They are very expensive and do a very good job.If you can afford it go ahead and buy one.It will greatly increase your productivity and will pay for itself.You can do it for much less however.You can build your own machine!Used auto parts and a few odds and ends along with some sheet metal are all you need for this.This is not a difficult project and plans are available.If you have welding skills you can do this part of the work yourself,otherwise a local welding shop can do it for you at fairly low cost.
Making your own machine is not really difficult if you have some mechanical skills. Your home built machine will make 800 cement blocks per day.A smaller,very simple hand operated machine can make 200 blocks per day and is quite easy to build.Operating these machines efficiently is a two person job.One worker runs the machine and the other takes the blocks from it and stacks them on racks to dry.Obviously you will also need sufficient space to stack hundreds of blocks.
When you are in the concrete block making business it is a no brainer to also turn out other concrete products which are in demand.Garden ornaments.bird baths, sundials,garden furniture,plant pots,window boxes,patio slabs,bricks are all in strong demand.You can make all of them from readily available plans with instructions.In time your small business which started in your garage can become a very large business and will make you a lot more money than you can hope to earn at most jobs.
Organizational Culture
Analysis; As organizational members cope with internal and external problems, they develop shared assumptions and norms of behavior that are taught to new members as the correct way to think, feel and act in relation to those problems (Daft, 2005).there are three types of organizational culture as identified by Cooke and Haffevry (1989) as cited by Marquis &Huston (2006). These include positive culture which is a constructive culture in which members are encouraged to interact with others and to approach tasks in a positive way that will help them meet there satisfactory needs. This culture is based on achievement, self actualization and encouragement of humanism and affirmative norms
The other two cultures are passive-aggressive and aggressive-defensive. In these cultures members interact in guarded and reactive ways and approach tasks in forceful ways to protect their status and security. These two cultures are based on approval, conventional, dependant and avoidance norms and oppositional, power, competitive and perfectionists’ norms, respectively. In my case, the culture of the institution is more passive aggressive and aggressive defensive. It all starts with the leader who must take an active role in creating the kind of organizational culture tat will ensure success. According to Marquis & Huston (2006), success I building a new structure often requires new leadership and/or the assistance by the use of outside analysis. This applies in our situation where the leader is already entrenched in the culture and is hard to change her staff.
Culture also determines how the organization meets goals and deals with outsiders. The right cultural values can help the organization respond rapidly to customer needs or the moves of a competitor. Culture can encourage employee commitment to the core purpose of the organization, its specific goals and the basic means used to accomplish the goals (Daft, 2006).
5 Reasons to Setup Shop as a Sole Proprietorship
This obsessing over more sophisticated (and expensive!) entity options is too bad, however. New small business owners can count at least five great reasons to start a small business as a sole proprietorship.
Reason 1: Simple Setup
As compared to incorporating or forming a limited liability company, sole proprietorships are a breeze. All you really need to do is start. That's it.
Note: State and local governments usually want you to get a business license so they can begin taxing your new business. But getting a business license in many cases is pretty easy. Check the phone book or call your local state or municipal government offices.
Reason 2: Easier Accounting
If you run your business as a sole proprietorship, you keep your accounting truly easy. If you're the only worker, you won't even have to do payroll. Not having to do payroll saves tons of time, lots of money, and means you avoid doing between five and ten payroll tax returns a year: quarterly federal and state returns, the annual federal unemployment tax return, W-2s, and so forth.
What's more, you won't have to prepare balance sheets as part of your business tax return. Your sole proprietorship's income and deductions will typically be reported inside your individual tax return on a single page of paper.
In comparison, corporations and partnerships often do have to prepare balance sheets for their tax returns and a boatload of other supporting schedules. Commonly a corporate tax return runs between ten and twenty pages in length. Yikes.
Reason 3: Minor Children as Tax Shelters
If you employ your minor children in your business, a sole proprietorship offers up one of the sweetest small business shelters there is. Wages you pay your teenage kids count as business tax deductions--which saves you income taxes and self-employment taxes. But the amounts your minor children earn probably aren't taxable to them for either income tax or Social Security and Medicare taxes purposes if they make less than the standard deduction amount.
Note: The standard deduction amount equals $5450 in 2008. In the years after 2008, the standard deduction increases because of inflation.
The ability to employ minor children, take the tax deduction on your tax return, and then let the kids avoid income and payroll taxes could save your family almost $3,000 in taxes per year per kid working in the family business. Wow.
A final caution: The children need to be doing real work for a realistic salary.
Reason 4: Easy Deductibility of Health Insurance
Sole proprietors can more easily take a deduction for family health insurance. The rules are a wee bit tricky. The family can't be benefiting from subsidized health insurance from, say, a previous employer (like the military) or the spouse's current employer. And you get the medical insurance deduction only to the extent your business makes money.
Why I'm Not Participating in the Recession
Don’t worry this is not an economic treatise about the definitions and causes of economic downturns sometimes called recessions. Rather, it is an explanation of how we can think about these events differently and, when these circumstances surround us, how we can improve our results regardless of what the media tells us.
While regional, national or global level economic indicators can show that an economy is slowing down, that people are losing their jobs and the like, I believe that for individuals, a recession is little more than a change in circumstances that we can choose to participate in . . . or not. I would argue that recessions don’t even exist for us as individuals, unless we allow them to.
Recessions and Our Response
First, if you are reading this and have lost your job or are facing significant changes in your situation due to the events being labeled "recession", please don’t get angry with my comments, but continue reading with an open mind. Use these ideas to be proactive in dealing with the opportunity you are now facing.
The media and/or politicians may say we are in a recession. And yet, businesses are still buying products and services (though perhaps a bit less than ‘normal’) and businesses are still hiring employees and moving forward.
The key for you and your business is to be the one who gets a larger percentage of the orders or the interviews or job offers that are available. In this proactive way you can choose to recognize that recessions are macro not micro events. You have a choice about how you will view the event the media calls "recession."
What I’m saying is that times might be a little tougher and that it might not be as easy as it used to be (or will be again), but so what? You can succeed through a better plan and a bit of persistence. When things are a little tougher, it simply separates out those who are prepared to work harder and more creatively.
Our Best Response
After you have readjusted your views on what a recession is, and how you can most proactively view those circumstances, your next actions should be focused on the source of your income and profits: Your Customers.
You may call them something else: Clients, Patients, Students, Participants, Users, or Participants. Or you may be thinking, "Kevin I work inside the organization, I don’t deal with our paying Customers." That’s fine, you still have Customers. Other departments, the people who you give your work to, the people who give you work, all of these people are your internal Customers. (If you "only" have internal Customers, read on, apply the points and wait for a special message for you before I close.)
Whatever you call them and whoever they are, your Customers are your personal recession buster – but only if you focus on them more completely, deeply and consistently than ever. Think about it this way – your Customers are the source of all revenue for your organization; your Customers write your paycheck. It makes sense to build and deepen your relationships with them always, but that is never more true than in times where they are buying less and probably distracted by the economy themselves.
Connectivity with business partners.
EDI: What is it?
EDI is simply the sending and receiving of information using computer technology
Benefits of EDI!
• Reduced postage costs, expenses in general
• Speed. Because information is moved faster and with greater accuracy, time spent communicating with suppliers is decreased
• Elimination of paper documents
• Elimination of labor-intensive tasks such as data entry
• Greater accuracy of information
• Better tracking
The efficiency of EDI has made it a condition of doing business in numerous industries, including retail, grocery, warehousing, transportation, health care, education, real estate, and government. Companies or trading partners can exchange standard business documents as needed using EDI as long as both have made the preparations to do so. Some examples of the type of documents are purchase orders, invoices, shipping schedule, inventory inquiry, and many more.
EDI is not limited by differences in companies or communication methods. Instead, EDI bridges the information gap that exists between companies using different computer systems. EDI can’t be activated with a flip of the switch as many procedures must be carried out in preparation for exchanging EDI data with a trading partner.
There are typically two ways of communicating the data between trading partners. Usually the trading partner will designate the method of either a VAN or Direct Connect.
VAN (Value Added Network)
A Van is a third-party service that transmits and stores data in the "electronic mailbox" until it is picked up by the appropriate party. Since the EDI message contains addressing information, the VAN routes the message to the mailbox of the recipient. Until recently, it was considered the most secure method of transferring data. Communication via a VAN can sometimes become quite costly. Most VAN providers charge monthly for the services that they provide based on the number of kilo-characters transmitted.
Direct Connection
Unlike a VAN, a direct connection allows you to pass the data straight to the receiving party. There are a few types of direct connection like, VPN (Virtual Private Network), FTP (File Transfer Protocol), and EDIINT (EDI over the internet) usually EDIINT is done in conjunction with AS2 software which encrypts the data before sending it over the internet.
AS2: A new standard for data exchanges
AS2 (Applicability Statement 2) is the draft specification standard by which vendor applications communicate EDI or other business-to-business data (such as EDI and XML) over the Internet using HTTP, a standard used by the World Wide Web. AS2 provides security for the transport payload through digital signatures and data encryption and ensures reliable, non-repudiable delivery through the use of receipts. AS2 communications can securely transfer not only EDI documents but also documents in various formats such as X12, SML and Microsoft word. Due to the high level of security and cost-effectiveness, several businesses including major retailers such as Wal-Mart and Kohn’s have mad the move to AS2.
XML: A New Standard for Document Exchange and Application Integration
What is XML?
XML stands for "Extensible Markup Language. XML was developed by an XML Working Group in 1996 and became a formal specification in February 1998. XML is now an industry standard that enables accurate, flexible, information rich data exchange.
XML allows the flexible development of user-defined document types. XML is not a programming language, and you don’t have to be a programmer to use it or learn it. XML makes it easy for a computer to generate data, read data and ensure that the data structure is unambiguous. It provides a robust, non-proprietary, persistent and verifiable file format for the storage and transmission of text and data both on and off the Web.
XML is extensible, meaning that it is designed so that its capabilities can be expanded. XML is also platform-independent, meaning that data can be exchanged across the internet or from application to application, regardless of the operating system/application used.
Why is XML important?
XML is commonly used in enterprise application integration, linking legacy systems to newer systems such as intranets and Web sites. XML makes it easy to send data from any application to any internet or desktop application (application-to-application integration).
In order to appreciate XML, it is important to understand why it was created. XML was created so that richly structured documents could be used over the web. The adaptability and functionality of XML lends itself to many uses.
XML: A New Standard for Document Exchange and Application Integration
XML has the potential to become the method for exchanging data because it is easy to use, extensible (its capabilities can be expanded as needed) and platform-independent reasons and because XML document trading is more cost-effective than other means for exchanging data, XML is becoming the buzz word in the 3PL industry as the new standard format for trading documents electronically.
Who is using XML?
Distributors are beginning to use XML to trade documents such as Transfer Orders (shipments), Shipment Confirmations (shipment acknowledgements), Receipt Authorizations (inbound receipts), Receipts (receipt acknowledgements) and Product Master Updates with their fulfillment centers (3PL Warehouses). With the use of XML and applications that make use of internet connectivity, it is possible for 3PL’s and their customers to be "linked together" so that these documents can be traded seamlessly. At the distributor’s order processing center, the user generates the order and sends it as an XML document. In even as little as seconds, the order is received into the 3PL’s WMS system without any user interface – meaning that the user does not have to import a file into their system to create the order.
EDI and XML
The big question is, "Is traditional EDI obsolete?" There are advantages and disadvantages to both, so therein lay the debate. At this time, though, the answer is "Far from it."
"When the largest company in the world won’t do business with you unless you do EDI; when the US health industry makes it mandatory to use EDI; when the world’s energy companies are using EDI; when institutions that are sending people into space are using EDI; when Universities are sending students’ records in EDI; and when a Department of Defense, with the largest budget ever, has an EDI system in place, then surely one can’t say EDI is obsolete."*
In reality, XML and EDI are not mutually exclusive. "XML actually complements EDI. Any technology that promotes e-commerce is good for EDI."*
However, flexibility and speed are the key factors that make XML a viable alternative to traditional EDI. It allows multi-point or many-to-many integration required in an elaborate trading partner network. Unlike traditional EDI, where information movement between companies is predominantly through batch transfers, XML fosters cost-effective, real time data exchange.
In addition, there are moves to enable traditional EDI documents to travel inside XML, as well as proposals to replace the existing traditional EDI formats with XML ones**.
Probably the biggest effect on traditional EDI is the rise of standardization attempts for XML business documents and transactions. The standard jointly sponsored by OASIS and United Nations/CEFACT is ebXML (Electronic Business XML) which provides Schemas for the common commercial transaction document types.**
Why Does Turnover Take Place?
And then comes the most insidious issue of them all - treating people as objects rather than people. The truth is that from time to time we all fall into this trap to one degree or another. I’m talking about how we regard people. Again, use your own experience as your best example. Have you ever had someone say something kind or positive to you, but you sensed that they were being "phony"? They used the right words, but you could tell their words were insincere? Did you believe the words or your sense of the person? No questions about it – we believe our sense of things and people. When we are faced with someone who says one thing but means another, does our respect for that person increase, decrease or stay the same? Clearly it decreases. Not only do we rely on our sense of the person – our intuition – but we form opinions about them based on our insights. Have you ever worked for someone who you lost respect for? Did you stay at that job very long? When people treat other people as objects, turnover occurs.
Purpose, integrity, developing people, effective communications, and regarding people as people are all leadership issues. Exceptional leadership inspires the best effort in others, and when people give their best effort, the result is a high performance organization.
When you and your organization have a clearly defined Purpose, you attract and retain the talent you need. When you and your organization have integrity, you build trust and loyalty. When you and your organization are committed to developing people, people become the best they can be. When you and your organization communicate effectively, conflict and tension diminish and cooperation increases. When you and your organization work to treat people as people, they appreciate it and reciprocate. Turnover isn’t a problem - it’s a symptom caused by leadership problems. Fortunately, the problems can be solved, and you have the power to make that difference. Strive to become the best leader you can be.
The 5 Dangerous Business Trends
When I tell startups that a good rule of thumb for them to follow is to invest up to 20) 2. Unbalanced Experience (30) 4. Lack of Experience (11) It makes sense to avoid the usual pitfalls before working on improving your income. Because the biggest challenge to small businesses today is Incompetence. That does not mean the business owner is stupid, just that they don't have the proper business education to keep them out of trouble. Hard on the heels of Incompetence (46), Complacency (12), in the specified field of business, and finally, Neglect, Fraud, or Disaster (1 of all business failures are caused by a basic misunderstanding about what it takes to run a business. Take a look at this list and burn it in your memory. These are the leading causes of failure in businesses today. Notice that being stupid is not on that list. The good news is that incompetence can be beaten out of you with knowledge and experience.
Unbalanced Experience The second major cause of failure is unbalanced experience. If you just got out of dental school and are extremely talented in your craft, that's great but if you don't have a head for business, then you may not be ready to take on that challenge at this time. Let's look at a few of the causes of unbalanced experience. These are usually caused by ad hoc business practices or inconsistent application of policies and procedures.
Complacency Complacency usually occurs during the mid phase of the business cycle when owners and mangers are doing well but not keeping up with current trends and competitive measures. They are simply coasting. Usually these businesses are doing a marginal job at marketing but relying on their credibility and history.
What You Need to Know About Insurance Drug Tests
Even though it's easy enough to answer no to a question on an application with lots of other questions, what do you do when an insurance company informs you that you will need to submit to a drug test to qualify for their coverage? While your first instinct may be to panic and start drinking any water you can get your hands on, "effective methods" for passing drug tests that your friends told you about are not the way you should be preparing for your drug test. While everyone has heard or read plenty of home remedies for passing a urine drug test, they all have one thing in common: they're not reliable. In fact, the majority of them don't work at all. While your friend may swear that drinking four gallons of a specific type of juice six days before a drug test will ensure that you pass, there is simply no way of guaranteeing that these "methods" will actually work. Even if you put aside the fact that most of these ideas are simply misinformation, the truth is that what may accidentally work for one person will most likely not work for another. The reason for this is that everyone's usage and body are different, so it's impossible to precisely calculate an individual's drug testing detection period.
Instead of wasting your time trying to follow the steps of an illogical home drug testing remedy, the simple way to successfully pass a drug test is with real powdered urine. While synthetic urine can be quickly detected by drug testing laboratories, there is no way for labs to detect clean powdered urine from a real person. Trying to pass a drug test with synthetic urine or a "home remedy" is as crazy as thinking you're going to win the lottery tomorrow. However, by choosing to use real powdered urine to pass your insurance drug test, you can ensure that you won't be denied life or medical insurance as a result of a failed a drug test.
Coaching Skills Training: The 3 principles of coaching
Firstly they concentrate wholly on the people they coach in order to raise their levels of awareness. Secondly they use encouragement and support to make sure that the people they coach take responsibility for moving their own issues forward. Thirdly they are open and honest and genuinely want to see others succeed and in this way they quickly build strong relationships of trust. Taking each of these in turn.
Raising awareness
By looking in our bathroom mirror we can raise our awareness of how we look and use this information to improve our performance in 'looking good'. Just by being more aware of what is going on as we undertake certain tasks and activities leads to natural performance improvements.
Maybe you've had that feeling of driving along the road and suddenly being unsure of whether you have passed your turning or not. When this happens it's because we're performing on 'auto- pilot', in other words, we are not consciously aware of what we are doing. This situation can be remedied simply by raising awareness again. The next time you're driving concentrate on how often this daydreaming happens. Paradoxically, because of your awareness and concentration it won't happen at all.
Generating responsibility
Coaches also want people to take responsibility for tackling their own problems and developing their own abilities. Insecure managers often get a sense of satisfaction from always rescuing other the people. They believe the other person will feel good because they have unloaded a problem and they will feel good themselves because they've helped someone out. But these same managers have massive pending trays groaning under the weight of other people's problems. If we solve a problem on one occasion, the chances are it's us they'll come looking for when new problems occur. When we take responsibility for someone else's situation we have failed to develop that person and have simply reinforced their sense of dependence. Over time, this may lead to feeling resentful and frustrated.
Building trust
Finally, effective coaches see the virtuous circle of establishing trust. They realism that by raising awareness and generating responsibility they are providing people with a platform to perform at higher levels. During this process, trust in the coaching process deepens and answers to coaching questions become more open and candid.
In this way our coaching will help them to become more aware and responsible and so it goes on.
Raising awareness, generating responsibility and building trust are the key principles of effective coaching.
Flexible Working – What it Means For Your Business
Who has the right to apply?
Any employee can apply informally and ask for flexible working hours; whether or not you approve an informal request like this is entirely down to your company’s flexible working policy. But only two kinds of people have a legal right to apply: employees with young or disabled children, and employees who are caring for infirm or disabled adults. Currently, parents with children aged six or under have the right to apply, but from April 2009, this right will be extended to parents with children who are sixteen or under.
An employee must have been working for a company for at least 26 weeks before they can apply for flexible working. For those with a legal right to apply, only one application can be made every 12 months.
What are some of the options for flexible working?
There are numerous flexible working options, and it is important to consider which of them can practically be applied for your business. Some of the most common are:
- Flexible hours. An employee works full or part time hours, but when these hours are worked is fully negotiable. An employee could start and finish two hours later than usual, for example. -Zero hours contract. A contract that has no fixed hours. The employee works only when there are specific tasks to complete. -Work from home. An arrangement where an employee works partly or fully from home. -Job Share. The full time role of a single employee is shared between two or more people on a part time basis.
How do I handle a flexible working request?
Just like any other negotiation with your employees, it is important to follow the correct legal process when handling an application for flexible working. Failure to do so could leave you vulnerable to litigation, so make sure you draw up proper legal documents and follow a clear procedure when considering flexible working for a member of staff.
As part of your flexible working policy, make sure that the employee puts in a written request clearly stating their reasons and the kind of flexible working that they would like to apply for. You should deliver a first reply within 14 days. If you approve their application, you should inform them in writing and draw up a revised contract of employment. If they are going to work from home, you need to agree how their work will be monitored e.g. through daily task lists and timesheets, weekly meetings, and so on.
I Want to Win! - The Power and Pitfalls of Competition
As a younger person my competitive nature led me to want to win every game of HORSE, Scrabble, Euchre; every foot race or contest that I entered; and score the highest on every test. While I was taught to be (and think I mostly was) a good sport, my focus was most always on winning. And looking back, I can point to both the power and the pitfalls of this competitive nature.
I married someone much less competitive, and I have a son who takes more after his mother than me in this area. I also spend my time with people and organizations who are trying to improve their results. These facts have kept me pondering and exploring competition throughout my life.
This exploration and self-examination as well as a lifetime of observations have led to some specific beliefs about competition:
Everyone is competitive at some level and in some ways. The intensity of your competitive feelings drives your thoughts about competition. Your thoughts about competition and your competitors influence your behavior. Your behavior leads to your results. Competition as a GIFT
Since competition can impact our results, it makes sense to me to view it as a gift that we have been given. How we use and direct our competitive nature is determined by four components that make up the word GIFT.
Goals – competition is defined by goals. The goals you choose are critical to harnessing the power of competition. Having a goal – a profit target, grade, score or time – sets the stage for competition, regardless of who you are competing against. Consider your goals from the perspective of how they stoke your competitiveness.
Intent – your intent will determine how you compete. If your intent is to win at all costs, your behaviors will be different than if you want to do your best, or improve since your last effort. If my intent in a board game (or life) is only to win, my thoughts and behaviors will be different than if my intent is to improve on past performance. Both intents produce a result – one might produce a better, healthier and more sustainable long-term result. This concept of intent is an important one to consider in relationship to competition.
Focus – who you are competing against. You can view yourself, others, other teams or other companies as your competition. If you see the person in the next cubicle as your competition, you may not share information or resources. You may be less likely to build relationships. Why would you want/need to? They are the competition, after all! If you think of another department, another shift, or another region as the competition, you certainly may build great team pride and unity, and yet work at cross purposes with those other groups. Why? Because you want to win! Where ever you place your focus determines who you are competing against. This is a critical component in the results you will achieve. Think carefully about who the competition really is before ramping up your competitive juices. Do not misunderstand this point. There is nothing wrong with internal competition, just make sure the focus is on overall goal achievement not just winning for the sake of winning.
Measuring Hospital Quality: Composite Measures
Clinical Outcomes: Ultimately it is the outcome that matters most. The patient’s goal in accessing healthcare services is to Risk adjusted healthcare quality measures such as inpatient mortality rate, readmission rate, complication rate are commonly accepted indicators of quality outcome success.
Clinical Process: Effective clinical processes are essential to achieving superior healthcare quality outcomes. At a minimum, current publicly reported "core measures" that have been adopted for Acute Myocardial Infarction, Heart Failure, and Pneumonia, as well as the Surgical Care Improvement Project (SCIP) measures should be considered. Evidence based physician order sets and clinical care plans provide a rich assortment of additional quality process measures.
Resource Utilization: "Too little" or "too much" care can adversely affect outcomes. Measures such as risk adjusted average length of stay, Intensive Care Unit average length of stay, and cost per case are examples of effective resource utilization indicators.
Top performing organizations not only define and measure healthcare quality, they ask the question: "How are we doing?" We believe that the best way to answer that question is to compare your organization's results to those of "Top Performers." There are a number of organizations that provide excellent health care industry clinical quality and financial benchmark information. Through benchmarking, organizations are able to identify their strengths and weaknesses, and develop strategies to address and overcome healthcare quality gaps.
Benchmarked performance ratings can then be considered individually, and rolled up to measure overall quality performance for individual categories (e.g. Outcomes vs. Resource Utilization,) conditions (e.g. pneumonia vs. AMI,) individual hospitals within a health delivery system, or a system - wide composite score.
Many Top Performers establish quality performance goals, and compensate their leaders on degree of goal achievement. As a culture of quality and patient safety evolves, patient and physician satisfaction increases, market share and revenues rise, and financial performance improves dramatically.
Gap Analysis: Intersect Investments (continued)
In this scenario, the lack of effective two-way communication is the origin for the many of the problems within IIS. If Janet Angelo, Executive Vice President of Marketing and Sales, intends to meet the 12 month period of performance, her plan must make two-way communication imperative to keep all Intersect Investment employees informed. A sense of security and involvement among the sales team employees will decrease the turnover rate. This is Lyn Chen responsibility to ensure that the men and women in her department are continuously informed of the company’s current situation.
The "unfreezing" stage of the organization cannot be completed unless Janet creates the motivation to change. In so doing, IIS employees are encouraged to replace old behaviors and attitudes with those desired by Frank Jeffers. Senior leadership can begin the unfreezing process by disconfirming the usefulness or appropriateness of employees’ present behaviors or attitudes. In other words, employees need to become dissatisfied with the old way of doing things (Kinicki & Kreitner, 2004). Benchmarking is a technique that can help Janet unfreeze IIS by providing information about other companies within the industry.
Intersect Investments has a great deal to accomplish in 12 months. There are several obstacles in almost every department. Acting and observing must be promoted to ensure that IIS is proceeding correctly. Resolutions can create additional setbacks. IIS must retain situational awareness; senior leadership must be actively participating in the transformation by welcoming feedback from the rank and file employees allowing for an offensive stature. IIS will first attend to the various problems with the sales staff, and how to increase customer intimacy.
Robert Smith was born in New York in 1956. He has spent more than 12 years working as a professor at New York University. He is always fond of helping students with academic writing. Now he spends most of his time with his family and shares his experience where you can find online critical thinking writing services and custom research proposal writing.
Making Sense: A Virtual Assistant Is Practical
Inexpensive Rates One of the key things any employer and any company thinks about when hiring is expenses for skilled labor. Having a personal assistant on an affordable budget is definitely a plus for any company. Outsourced VA rates can be so competitive that one has only need to worry about interviewing the right personal assistant for him/her instead of worrying about the rates.
Same or Equal Work Quality A clinching factor in any business deal, the quality of work coming from virtual personal assistants is often impressive and at par with other professionals. This is because they are screened and tested to fit the client's needs with regards to the work at hand.
A lot of talented and educated people are not able to got to an office everyday for various reasons. Having a "virtual" office where work can be done is a lot more practical and inexpensive. Think of it as doing away with office and building maintenance.
No Employee Tax Management Virtual assistants are independent professionals. This means that you do not have to manage and plan a tax system when you employ them. This frees you from additional work. Plus, they are contractual, meaning that they can be there as long as you need them, no annual contracts and hassle of the sort you are accustomed to in a traditional nine to five workplace.
Avoid the Office Drama We all know this one. A closed office environment, a staff made up of different types of people and a case of mismanagement can all lead up to some unwanted scenarios. Arguments and conflicts are inevitable in an office working environment.
Luckily, virtual personal assistants does away with that. Since communication with your assistant is done electronically, working is smoother, faster and drama-free. In addition, virtual personal assistants are known to be polite and communicative, aiming to accomplish the work you give them.
Hundreds, no, thousands of professionals, business-owners and site owners are satisfied and impressed with their choice of virtual personal assistants because of the reasons just stated. They fully know that they are not just hiring grunt work and man power but skilled individuals that excel at their own fields. This is the current focus of some outsourcing companies like Agents of Value, to create a connection to skilled persons and clients who needs them.
Looking at this emerging business model, it makes perfect sense: its a business arrangement made faster, made more efficient, and made more time-friendly, accommodating both employers and employee. It is truly the employment model that fits today's technology and generation.
Using the Media as a Strategic Alliance
What is published on those pages becomes regarded as truth, or at least it holds an inkling of truth. The stories on those pages are often the topics of morning radio shows, of people chatting at work, and among friends. In short, the stories that make it to print have an impact on consumers.
So therein exists a very effective form of collaboration marketing. With the media, you are building the trust of consumers, who will in turn be more likely to buy your product or service. The trick is to get the newsmakers to write about you and your business, and that starts with news releases. In accomplishing that, you will form a strategic alliance with you and the media.
Many businesses today have incorporated communication plans into their marketing strategies. A large part of these plans involve attaining the media, as an alliance begins with writing news releases to local and/or national publications. The key to success here is to have well written releases. And if all else fails, have a well written release. Yes, it's that important. The media receives countless press releases each day and if it is not in the correct form, or if you have a made a huge mistake, your release is gone to the trash.
Hiring a communications firm to write them for you is a great idea. They will also have a large media list with specific contact information for publications in your area and around the country. Getting your release to the right person is important. These contacts can be found on your own in most cases, although it make take a lot of work and you may have to make your way through many gatekeepers to find them. There are online services where if you subscribe, you will have access to their media lists. However, some of these sites can be hundreds of dollars to obtain.
If you are going to give it a go yourself, here are a few key things to remember in writing a news release. Never call members of the press members of the press. It is thought of as a negative term these days. So, at the top of your page it should read 'News Release', not Press Release. If the content of your release is time sensitive, then the words - for immediate release' should be in the second line. This will tell the media that the info in the release has an upcoming expiration date. If it can be used for a while, then it should read 'for release at will.' This will give your release a longer shelf life and it has a better chance of seeing its way to print. Be sure to include your contact information. Keep paragraphs very short, one or two sentences. Keep the entire news release to one page when possible.
Consistency is going to play an important role in this strategy. Forming a strategic alliance with the media will be a key in your collaboration marketing plan. Some will choose to send releases media once a month for an elongated period of time. Some plans span 3 months, while others choose a more secure year or more. Of course, not all releases will turn into articles because big news happens and you will get sent to the bottom of the pile. But chances are if you consistently send your releases, you'll see your name in print.
Copyright (c) 2008 Christian Fea
Ten Tips for Weathering a Recession
Naturally, the answer will depend on your business model, B2B, B2C, and so on. But, in principle, for the entrepreneur, the 'cash last' approach should always be the first priority, either in a start up situation or for a growing business.
The following are my tried and tested methods for tightening the company belt:
1. Sweat your assets! Only replace hardware when you absolutely need to. Even if items are fully depreciated, as long as they function, keep them.
2. Keep stock moving. Even if you have to cut price, the worst thing you can do is let stock become obsolete.
3. Talk to creditors and free up cashflow. Arranging or extending credit can free up a lot of cash and this can help with…
4. Tactical, below the line marketing. Despite recessionary concerns, keep up your marketing activity. Simple, price-based offers on cheap leaflets distributed locally or other cost-effective methods are often adequate for keeping you on your customers’ radar. Businesses still need to spend and consumers still need to buy - sometimes as a tonic to help deal with the recession.
5. Build up a cash reserve. Arrange short-term finance options early. The last thing you want is to run out of cash so put facilities in place from a range of affordable sources - even if they are a little dearer than longer-term debt, better to have the option than to go 'cap in hand to the bank'.
6. Work on a skeleton crew. If necessary, look to reduce staff hours to those that are core to your business. It may be unpopular but hopefully some of your staff will see it as a short-term measure to ensure longer-term survival and growth.
7. Look to reduce general establishment costs: Use recharged print cartridges, reduce call charges using SKYPE, shop around for cheaper substitutes on key materials - don't be afraid to push your suppliers.
8. Restructure longer-term debt if necessary: lenders are generally happy as long as debt is being serviced and if you’re talking to them, they are reassured of your professional approach to management. A little restructuring is always an option to free up some cash.
9. Where possible, defray overheads. Let out spare office capacity to other businesses, consider joint advertising with partner businesses, share key services and use DIY alternatives for repair and maintenance issues.
10. Longer term, look to move your business model to a lower cost base. By analysing the key costs of the business and the revenue they generate, it is possible to rationalise and focus on core business. Even if it is painful to cut some things out, business is about adapting to the prevailing conditions.
Some of these expedients require you to make some difficult decisions, but it is a route to survival. Ultimately, a leaner, fitter business will emerge, all the more competitive for having weathered the storm. Your only question will be ‘why didn’t I do these things sooner?’
Characteristics of Small Business Definition
First, the business must be independent: For that matter, a subsidiary or a branch can’t be considering as independent business.
Second, the business is not dominant in the industry it’s operating in: Part of ‘Monopolistic Competition’ definition can be used to characterize the parameter - There are many sellers and they believe that their actions will not materially affect their competitors.
Third, firm size (number of employees): This parameter is obviously the most popular among scholars for defining small business; nonetheless its use varies dramatically. If you’re in U.S. then an employer of up to 500 employees will still be consider as small business, contrary to U.S. in Europe most countries use the limit of 50 employees to define business as small. Taking into account that across the world ninety percent of the operating businesses are employing less then 20 employees, it seems that 50 employees is a more suitable limit. Moreover, business with more than 50 employees is employing operational and managerial techniques, which become more and more similar to those of large businesses. Characterize the upper limit brings us half way; in order for us to go all the way, lower limit should be characterize as well. A rule of thumb in that regard is that business with less then five-to-ten employees don’t even have the minimum operational and managerial structure, which can be treated as small business, any business with less then five employees is inadequate for any analysis, and should be named micro-business.
Fourth, firm age: The use of firm age by scholars meant to characterize the minimal period of time needed for a business in order to form some operational and managerial backbone, otherwise, there was a risk that data collected for statistical analysis wont be suitable. Biggadike (1979), supported by Miller and Camp (1985), conclude that a new venture needs in average eight years for achieving profitability. The barrier of eight years should be analyzed depending on several factors, such as the industry that the firm operates in or the initial capital raise for starting the new venture. Moreover, Biggadike based his definition on the basis of the period needed to generate profitability, which is only one among numerous measures of performance. Taking all into account, a conservative estimation will be that business can be still considering as new if the period from establishment is two-to-five years.
One-Stop 6-Part Comprehensive Business Plan Template
Before embarking upon any business, a good entrepreneur will need to "blue-print" win-win-win business & marketing strategies to ensure business continuity and growth.
This is the most crucial component of your business ... even before you start. It provides the fundamental framework & blue print of your business in 6 sections, mapping out your business goals, marketing strategies, operations framework, organization structure, financial viability & business expansion or exit strategies.
There are many complex Business Planning Software sold in the market, which you will need depending on the scale of your business. A simple checklist as below is a good start for you to build upon. One major benefit for crafting your own business plan be it using Business Planning Software templates or developing your own, is that it helps to tune your thought process in exploring the essence of your business.
BusinessFast4ward Business Plan Template
1) Goals with a Timeline - Measurable, reasonable and achievable over a set time period
2) Your Marketing Plan with a Timeline
* Viability studies - Porter's 5 factors, P.E.S.T. analysis, S.W.O.T. analysis, Target Segment analysis, Product Life Cycle analysis, Value Proposition of products, Competitive Advantage Model, Product Growth Directions, BCG Matrix
* Market Planning - Marketing Mix (4Ps) strategy, Internet Marketing, Integrated Marketing Communications, Marketing Implementation plan, Marketing Budget plan
* Monitor & Review plan
3) Your Operations Plan with a Timeline
* Business Structure, Scope, Regulatory Issues, Plant & Equipment, Production Arrangement, Distribution & Warehousing Arrangements, Credit Terms, Quality Control, Location, Business opening hrs, Commencement Date
* Stand Operation Procedures (S.O.P.) for each business function
* Monitor & Review Plan
4) The Organisation Plan with a Timeline
* Organisation Structure, Skills required, Talent management strategy, Business Succession plan
* Monitor & Review Plan
5) The Financial Viability Plan with a Timeline
* Financial Statement Forecast, Breakeven Analysis, Capital Spending plan, Required investments and spending, Ways to raise $, Additional $ source
* Financial Contingency Plan
* Monitor & Review Plan
6) Business Strategies
* Business Succession planning
* Business Exit strategies
It is important to note that a well crafted smart Business Plan is the first step to solicit funds from Bankers or Venture Capitalists should the need arise.
Your new or existing business must be planned adopting the broad basis in consideration of sustainability, scalability and contingency. Sustainability implies consideration of realistic sustainable longevity of the business. You should also plan well ahead for your business growth, ensuring that the business is expandable via scalability, like the famous "LEGO" blocks. Contingency is the most ignored part of most businesses, be it in unforeseen man-made emergencies like terrorism, or natural disasters and calamities like hurricanes, earthquakes and floods, or simply, unexpected financial crisis.
Hence, the rule of thumb to drafting a good business plan is to adopt a conservative approach both in planning financial and manpower resources. However, also learn to strike a balance and permeate that innovative and curious mindset when drafting your business plan.
Monday, June 16, 2008
An Overview Of Benefits Management
The role definition
Benefits Management is an exercise or rather a project in itself. The aim is to precisely define the desired outcome from a new project or suggested change in an already established project, and is particularly important when working out the investment rational.
The requirement definition
With the role statement defined, the next step in sequence seeks answer to the need of the concept i.e. why is Benefits Management required? To answer this question, let’s first attempt figuring out another important clause – the clause of existence. Why do businesses ever exist, or why do entrepreneurs take the chance of establishing a new business, or why are resources dedicated towards the various projects? In absolutely raw terms, this happens because all are interested in booking profits. However, despite such a clearly established objective, this doesn’t always happen. A number of projects simply fail and even a larger number end up under performing. Why?…because of lack of planning, in terms of the precise benefits expected.
The essentials
There are four key essential aspects of the appropriate benefits management program, without which the efficacy would certainly be questionable. The first fundamental aspect relates to the quantification of the output and thus the derivable benefits. Outcomes would certainly vary with the program definition, however in all circumstances; outcomes ought to be measurable, even if in approximate terms, to enable improvised performance analysis. While defining benefits, both tangible & intangible outputs, ought to be taken into account, for example: in addition to the deliverables, which can be numerically accounted for, crucial subjective aspects like enhanced customer satisfaction should also be marked relevant.
The second essential aspect aligns the project benefits with the business goals. All concerned parties should agree with the expected outcome and thus mutually work towards the realisation of the same goal. The stated is almost mandatory; as only this would help prioritisation at required levels and deal with probable issues of resource allocation. This combined work model, in fact, is one of the key outputs of a successfully visualised and managed program.
The third equally important aspect essentially relates to the definition of realistically achievable benefits. This would not only help successful realisation, but also enable periodic checks for desired continuity.