Managing Change

Managing change in an organization is crucial if the business is to move forward with adapting any new structure or shift in business focus needed to realize its goals of growth and profit improvement.

Here are a few thoughts on areas management needs to focus on to implement and manage change in the organization.


1. Responsibility. 
Clearly management and communication of change rests at the senior levels of the organization. Employees have the responsibility to try and accept and help implement changes.

2. Involvement. 
Management should involve employees in the changes – it is never a good idea to just impose change from the top. Employees want to understand how they are impacted.

3. Understand.
Knowing where the organization is and understanding where you want to be at a specific time, why, and what steps are needed to achieve the goal are all critical steps.

4. Plan.
The organization must develop a plan that is achievable if management is going to be credible. The plan should set out stages for implementing change in phases that are not only achievable but measureable.


5. Communicate
This stage cannot be overly stressed. Clear communication of objectives, involvement of staff at the early stages, and empowering them will facilitate involvement and buy in for the company.

It is obvious to most business owners that people matter. Sometimes however the organization gets lost in plans and processes rather than facing the difficult and more important people issues. Making the initial steps to involve the entire organization starting at the top will help achieve success.

I’m always happy to hear your thoughts.

Increase your business value

This is a key issue if you intend to sell your business, but at any time, business owners should look for ways to maximize the value of their business.
Here are some steps that may help achieve that goal.





1. Get professional advice.
Maximizing the value of your business may be enhanced with advice from an outside professional whether you are preparing to sell or just interested in improving your profits.

2. Improve profits.
If the business is only breaking even it is unlikely the owner will receive a high offer when selling. Cash should be retained and re-invested in the business. This will strengthen the balance sheet and the health of the business.

3. Lower costs.
As sales grow look for ways to improve operations. Continue review of ways to improve processes and to renew equipment; if this is not a continuing plan, the business will lose value.

4. Plan.
A formal plan that includes well developed goals for the future will add credibility to any outsider considering the purchase of the business.

5. Differentiate.
Showcase your business to show how your product/service differs from competition. Sometimes testimonials from key customers help you stand out and demonstrates business stability.

Some of these steps may help build a stronger, more stable and valuable business.

Need Coaching?

As a business grows owners may be in a position of managing more and more areas of the business that they are less familiar with. The owner’s original background may be manufacturing but now oversees finance, sales and HR issues.

An experienced business advisor may help develop these skills and improve decision making as the business grows.

Here are a few examples of situations where a coach may help:

1. Development of managerial skills for owners or senior managers.

2. Refocusing management to a strategic vision and plan.

3. An objective business performance review of results against planned objectives.

4. Improving operations by reviewing decision making processes and staff communications.

An independent coach can facilitate change with some of these issues if the environment welcomes an outside, fresh perspective. If the process is not welcomed by all participants the results will be more than counterproductive so owners should proceed carefully to ensure success.

I hope these ideas are helpful. Let me know your thoughts:

gerry@polarisgroupmc.com

Managements Tips

It is not easy to manage a small business but here are a few tips that may help as reminders of key elements to think about to enhance success:






1. Prioritize Planning
Owners of make key decisions in the heat of the battle without a definite plan. This is especially important if the business is growing fast. A plan that outlines your current position in the market, your longer range goals, and potential roadblocks will help avoid potential disasters.

2. Monitor Competition
No matter the level of success, owners should be aware of competitor’s activity, strengths and weaknesses. Work to find ways to differentiate.

3. Grow with your Customers
Do not become too dependent on a few customers. Work closely with customers to exploit their needs but also expand the customer base to minimize risk of business loss if a key customer is lost.

4. Manage Margins
Growing the top line is nice but growing the bottom line is better. If a product or service is unprofitable it should be eliminated if possible.

5. Plan cash Flow
Owners should be keenly aware of cash flow and should not delegate cash flow management to an outside accountant. Track flow of cash in and out so you know your daily needs and can respond quickly to the marketplace if necessary.


These are just a few ideas that may merit consideration and I hope they are useful in helping owners manage their business. Let me have your thoughts.

gerry@polarisgroupmc.com

Incentives to Keep Key Managers

There is a key role for incentives in managing and retaining key executives for the company. Here are some reasons for and examples of how to structure effective incentive programs for management.


1. You want to retain key management personnel for a number of reasons. High turnover destabilizes the company and can have severe effects on moral of employees and the bottom line.
2. You want to retain high performing managers to enhance your own company’s growth potential. Keep key managers from moving to competition.
3. Good managers don’t expect a bonus without achievement but don’t set the bar so high as to be unachievable. That becomes a disincentive to achieve.
4. Set goals that help improve your bottom line; achieving new sales records is not a priority if the costs exceed the benefit. Sales executives should be just as concerned about profitable sales as the CFO.
5. Pay executives for overachieving by sharing profits. As profits goals are exceeded rewards can continue to be major incentives if shared fairly. Reward contribution.
6. Be competitive but unique and allow key employees to participate in goal setting. When they are part of setting the goals they are more likely to increase efforts to reach the bar.
7. Conduct periodic reviews to ensure all incentive participants know where they stand. Let’s not have surprise results announced at year end….good or bad.
8. Be completely transparent. If goals are profit based show actual revenue/profit results so that there is a clear understanding of achievements.
9. Roll plans forward and allow incremental bonuses for achievements in consecutive years. That’s a great way to keep a key person from leaving; that extra bonus for additional achievement may be too juicy to walk away from.
10. Stock options are often used as a tool for key employee retention. The chance to be a part of ownership can be major motivator. However recent issues in corporate governance have tended to dilute and weaken some incentives. Try to strive for balance without risking responsibilities to shareholders.

Incentives are important tool to maintain a motivated and dedicated management team and a well-designed plan can bear fruit over the long term.

Those are a few on my thoughts. Let me know what you think.
Gerry@polarisgroupmc.com

Are you a Successful Leader?

Leadership is learned behavior that becomes stronger over time. The process of making decisions comes from an accumulations of experience. The most successful leaders are instinctual decision makers who are more tolerant of pressures associated with decision making and leading the business.

Here are a few traits of successful leaders:

1. Allow subordinates the opportunity to speak freely.
Leaders sometimes intimidate colleagues and subordinates with their position and power when they enter a room. Successful leaders deflect attention away from themselves and encourage others to voice their opinion. They are always approachable.

2. Make Decisions
Successful leaders are expert decision makers. The facilitate dialogue and empower colleagues to reach decisions. They “make things happen”

3. Communicate Expectations
Successful leaders are great communicators particularly with respect to performance expectations. They clearly communicate organization core values and mission statements so that objectives are properly executed.

4. Measure and reward Performance
Great leaders have a strong pulse on the business and on those individuals who lead with strong performance. Successful leaders never take consistent performers for granted and always reward performance appropriately.

5. Use talent effectively.
Successful leaders know their talent pool and how to use it. They facilitate growth in individuals and deploy their skills to maximize their contribution to the business.

6. Avoid Procrastination
Successful leaders tackle issues head-on and know how to get to the core of the issue. They don’t procrastinate and move quickly to solve problems or empower colleagues to make decisions.

There are a few examples of traits successful leaders demonstrate; there are many more. I hope as business leaders your colleagues see these traits in your leadership.

Know your Competitive Advantage?

It is important in building your business to understand your strengths and where you can increase your competitive advantage and produce better results.

What gives you a competitive advantage?
It is your ability to bring together every attribute of your business, to work seamlessly to deliver a standard of excellence your competitors cannot achieve.

How can I assess my organization's competitive advantage?
Check your pulse by asking yourself key questions about your products vs competition; your market share, ability to attract key contracts and customers.

Are you ahead of or lagging competition?
If ahead, you want to maintain that gap and if lagging you want to close the difference in performance. One major way to improve and stand out is to ensure your key brands or services offer unique attributes that competition cannot offer.

Strategically it may be time to invest in a positioning review. A great source to help you through this process is Ed Roach, The Branding Expert. I highly recommend his service.

Contact Ed at:

Ed Roach
ed@thebrandingexperts.ca