Productivity

For many years I have been 100% behind creating an environment of employee security and ownership at the work place. I have believed and implemented that paying your staff well is imperative to building a long term, stronger company.

In talking with an economist professor the other day I was reminded about the saying of "Human Capital". Reminded that any companies greatest monthly expense should be the value of Dollars spent on employees. I have always endeavored to find the most capable and qualified candidate that given the right tools and training would enable my business to be more profitable.

I am constantly amazed how companies and management can so willingly dispose of not only talent, but costs in training staff. It does not matter the laws of the state or government that presides over a company, the laws and fundamentals of keeping staff far outweigh short term profits obtained by disposing of staff.

I once came across a company who fired their top sales person based on my issue. Since the sales persons commission payments were not capped by the company, the more product that the sales person sold, the more income that they achieved personally. The sales person had been so productive for the company that their monthly income had just hit a number greater than the CEO's monthly income. The CEO would not have another person in the company generate a greater income than themselves and so asked for the persons resignation.

It is easy to see the problem with the thinking of the management of this company, because the more product or service that the sales person sells, the better off the company and therefore the shareholders are. Getting rid of your best performing sales person is certainly not in the interest of the company, or the employee. Ask yourself if this type of closed mind thinking plagues your business operations and thinking. It might not be as obvious as this companies decision, but how often has your company disregarded "Human Capital"?

To come back to the point, of productivity, I believe that the above mentioned example is one of the many stories that have chiseled away at the confidence that the general employee has in any employer in the market place. Everyday the employer is withdrawing benefits, paying lower wages and demanding greater commitment. This has all left the labor market quite shell shocked, left without knowing how protected their job is. Remember for the family man, this leaves him not knowing whether he will be able to place food on the table for his family next week!

The stress of the insecure job market increase un-productivity!

An example of how security and feeling valued by your employer can make a difference can be found in the time where the Golden Gate bridge in San Francisco was built. After 23 employees fell to their death while working on the construction of the bridge, the employers at great cost put a catchment net under the construction workers in order to catch any employee before they fell to their death. No only did this net save the lives of 10 employees, but the performance of the employees increased considerably. The productivity improved to a point that they bridge was completed in 75% of the budgeted time period.

Creating a culture of security and opportunity will make your colleagues work much more effectively and create for greater profitability for the company as a whole.

Vision and infrastructure

"Where there is no vision!"

I have often commented to people about how the infrastructure of the first world makes such a great difference in our lives, making us so much more efficient in the use of time. When you need some water to quench your thirst, or wash your hands, you walk over to the faucet and turn the water on, and it flows. Imagine if you had to wake up 2 hours earlier each day in order to collect your daily water requirement?

Infrastructure plays such an important part in order for the economy to tick and move. Not only is infrastructure spending a big part of job creation in the short term, the longer term benefits from having an established infrastructure far out weigh with the number of jobs created, tax Dollars received from the greater earnings and company profits.

Infrastructure is not only building roads and bridges, but also telecommunications etc. Infrastructure is really the essentials needed in order to perform the services or build the products that are needed. Getting them from where they are made to where they are needed.

The question is why is infrastructure spending and development not high on the agenda or priorities of the global governments? It raises the question of the role of the government in the citizens life, the economy and social, moral positions. Governments seem to focus more on the results of business decay, like social benefits rather than the investment into the infrastructure required for tomorrow's economy and the needs of that economy.

We have been coming down from a quantitative easy by the Federal Bank, where they were in effective creating an environment of cheap lending, but they never took advantage of the low rates and high unemployment to build the infrastructure for the future.

As business owners in the economy, how are you preparing for the future?

What happens when you lose trust?

It was quite a BIG week in the news arena for the United States this week. The senseless and pointless killings this week have left many people in the country wondering why this continues to happen. Every life matters and this is why we live in a "democracy", why western culture and governments have built "democracies". We live under democratic governments because we all stand equal, we all have equal opportunities and due equal respect.

You see I believe that the other BIG piece of news goes hand in hand with the killings of these innocent people. The revelation this week by the FBI that Hilary Clinton has lied continuously about her activities and action as the Secretary of State. I believe that the two some what random pieces of news are related because it goes to prove how far we have gone from the ideals of democracy where all lives matter equally, but also where all lives pay the same consequence for the same actions.

If we live under democratic standards and rights, then each person is responsible for their actions individually, but also responsible for the overall populations movement. Secretary Clinton and the police officers reveal how this community view of responsibility has shifted to a point where many of our fellow citizens view themselves as not only higher is position and rights, but view others as less than themselves, and someone that can just be discarded. The actions undertaken by the FBI and police departments exposes the great divide seen by many people in this country. Not just economically divided or racially divided, but divided by those with power and influence and those without.

The problem is that those without are in the majority and they have lost their trust in the politicians and leaders of the country. We can see the lack of confidence in these people throughout the presidential election campaigns so far. The citizens of this country have lost faith and confidence that the people who have stepped up to lead those around them, have the morals, ethics and desire to do what is best for the country in whole. We are seeing an incredibly aggressive population voting for what many people are calling crazy, but this is based on the loss of trust.

The loss of trust causes the other person to constantly question motives, and second guess your decisions and actions. It stops us from acting rationally and retaliate towards those that have broken the trust. In business we build relationships with colleagues, clients, vendors and the general public, building a level of trust along the way. We need to maintain that level of trust in our company's products, services and culture that allows for those that trust in our company. Failure to do that will see them retaliate towards us, and with our connected world, who knows where the damage will end?
  

Sales

"Sales departments are not the most important focus of the company, the whole company, most importantly, is the sales department!"

I have become a more considerate consumer and buyer over the years. Having stood in the shoes of the person asking me to buy something, I have a lot more understanding of where they are coming from, which leads me to be more considerate. It does not mean that I will be pushed over, but I will communicate with the sales person in a manner that is not only respectful, but positive and re-enforcing.

Sales is not an easy job, and ultimately unfortunately does come down to numbers, because not everyone that you speak to is going to be open or even need your product when you choose to come a knocking. Just because a potential client does not require your product or service now, they more than likely will need it some time in the future, otherwise why would you be knocking on their door?

In sales, I have always felt that it is important for new sales people to listen to and learn from the management and successful sales people within an organization since they have already achieved a level of success in this unique industry and organization's products or services. The successful members have understood how to bring the product or service across to the client or customer in a way that convinces them of the need for the product or service. They have lived and breathed it as the foot soldiers and survived the bombardment from those that might not be quite as understanding as I have become. There is no purpose in new sales people trudging off to create their own path, no one knows where that one will lead, and it inevitably leads to much frustration and finally a resigned person, not only from a job, but personally resigned to the opportunity.

Training is vital and not only should be offered by the employer and management staff, but should be sought out by the employee. Training not only in product, but in the development of the whole person selling on behalf of the company. When I was involved in tennis, I always would say that teaching the strokes was the easy part, but teaching the player how to "Play tennis", that you would need to brain wash the player. You see, brain washing is required as the players needs to be trained to think instinctively in a certain way. As management, you need to train and retrain your sales staff to become a certain person that becomes the "little me" of the company.

Sales staff ultimately are a company's face and representation to the world, customers and prospective customers. Sales people should be invested into in such a manner that they react in situations, responding to customers and those outside the company, instinctively in a way that the management would have be done. However since the whole company is the sales department according to the earlier quote, investment into all employees is vital, making them the people that mirror the management.