Jack D. Deal's Free and Inquiring Mind Applied; Change before you have to...831-457-8806

The Productive Executive

Effective executives concentrate their own time and energy as well as that of their organizations on doing one thing at a time, and on doing first things first. --Peter Drucker 

Quote of the Day from Peter Drucker...

It is the duty of the executive to remove ruthlessly anyone who consistently fails to perform with high distinction. --Peter Drucker

Surrogates, Rumors and Command and Control Management

	today the rumor mill has it that Good Ole Boy Joe is back and will give a speech today...and hopefully not take any questions... about 1 hour ago from web
	CNN: the latest CBS poll says of likely voters 36% say Sarah lacks experience while 47% say Obama lacks. about 21 hours ago from web
	what is obvious is that Burton and Axelrod aren't thinking at all... about 21 hours ago from web
	at some point as the spread in the polls widens, one has to ask the question, 'just what are Burton and Axelrod thinking?' about 21 hours ago from web
	Joe's vacation and Obama's increasingly sharp attacks on Sarah have led a number of commentator's to say "Sarah has gotten in their heads." about 21 hours ago from web
	how much longer can the Obama campaign braintrust keep taking hits and losing ground? and with momentum to boot? groan... about 21 hours ago from web
	on Friday the Obama campaign kicked off it's 'big push' to the finish and we Demos are wondering what 'big push?' groan... about 21 hours ago from web
	the surrogates are getting more desperate and Chairman Burton exerting less and less control over them...and it's really hurting Obama... about 21 hours ago from web

Why Command and Control Management is Failing Obama and Other Tales of Woe

	if the staff is weak and constantly fumbles then it creates an image of ineptitude...if the flubs continue it may become very problematic 04:37 PM August 31, 2008 from web
	it goes back to campaign staff and especially managers; big edge McCain... 04:35 PM August 31, 2008 from web
	what we disgruntled Demos have to ask is just how did McCain flip the game to become the reformer and change agent? whassup? 04:34 PM August 31, 2008 from web
	we wouldn't be sweating like this if Obama had picked Hillary...picking Hillary would have cinched it, now Sarah might outshine Joe... 04:32 PM August 31, 2008 from web
	funny how a politico like Biden would never get to a VP position in a real company... 04:29 PM August 31, 2008 from web
	since I gave up all hope, I feel a whole lot better... 04:28 PM August 31, 2008 from web
	all the barbs at Sarah but she hasn't looked Goofy like Joe...advantage Sarah... 04:26 PM August 31, 2008 from web
	to win, Obama has to 1) fire Burton 2) muzzle Biden and 3) start taking McCain-Palin seriously... 04:24 PM August 31, 2008 from web
	Obama better not start acting like Biden or it's over... 04:23 PM August 31, 2008 from web
	maybe Hillary wouldn't have made the gaffes Biden has...maybe not...groan some more... 04:12 PM August 31, 2008 from web
	my neighbors will vote for Nader but many Demos in Indiana, Michigan, Pennsylvania, Florida, Missouri and Colorado will go McCainn now... 04:11 PM August 31, 2008 from web

The Payback for Fearing Fear and How Dysfunctional Can Also Describe Organizations

	Biden certainly may be afraid of Sarah but for Obama to give any hint that he is afraid of her is metaphorical hari kari;commander in chief? about 1 hour ago from web
	as to the O'Reilly interview with Obama, why did Burton wait until now? it looks odd and could be construed that Obama is scared of Sarah about 1 hour ago from web
	here is McCain looking forward and explaining his tax plan and Obama is trying to counter Sarah...what is wrong with this, Chairman Burton? about 1 hour ago from web
	right now on the Yahoo homepage, the lead article is 'McCain sketches blueprint for taxes and spending' below that 'Obama counters Sarah' about 1 hour ago from web
	that's right; Obama faces the increasing possibility that he will lose because of a dysfunctional campaign run by incompetent staff...groan about 1 hour ago from web
	thanks to Burton and Axelrod, Obama is now relegated to a campaign that is largely trying to 'counter' Sarah; the campaign is dysfunctional about 1 hour ago from web
	why did Burton let Obama go on the O'Reilly show where he got skewered on the surge? groan...Obama's answer was terrible...thanks Burton! about 1 hour ago from web
	how can Burton and Axelrod call Sarah inexperienced on the one hand and then set up a campaign to 'counter' her? groan...it looks weak... about 1 hour ago from web

Win the Battle but Lose The War and Why That Strategy Really Doesn't Make You Feel Any Better

	when we Demos, led by Burton and Axelrod, attack guns, babies, mothers, God and war heroes; we win in the Bay Area but lose the Midwest... 22 minutes ago from web
	if Ron Owen and others feel attacking God is smart; just remember there are schools in the Midwest that have prayers and no one complains... 24 minutes ago from web
	amazingly some of my Demo pals still think there is no way we can lose; no matter what, Obama will win...duh 24 minutes ago from web
	now Burton and Axelrod are forced to alter stategy and get off course all because Burton and Axlelrod hated Hillary...groan... 26 minutes ago from web
	where in the whole Sarah roll out have we Demos been able to realistically counter her? nowhere, zero, zip, nada and advantage McCain... 27 minutes ago from web
	somebody in the McCain campaign set the trap for Burton and Axelrod and they blindly fell right in...attacking mothers and God is crazy... 28 minutes ago from web
	folks in the Midwest see things a bit differently than here in the Bay Area and by attacking God, guns, mothers and babies we Demos lose big 30 minutes ago from web
	the truth is, Sarah has stolen Obama's media show and Burton et al better figure out a strategy instead of 'countering' her...groan and duh 31 minutes ago from web
	go ahead Burton, keep belittling Sarah and see if she doesn't ace the soccer mom vote in Western Pennsylvania, and Ohio, and Michigan...duh 32 minutes ago from web

Why Firing is Sometimes the Only Way to Get Back on Track

	and we need to have Obama say to the rank and file, like Donna Brazile, to shut up or you can raise the ire of the middle... about 17 hours ago from web
	rumor has it that Burton secretly is a groupie at those Texas Hold 'Em poker tournaments...so far, it is just a rumor... 10:57 PM August 31, 2008 from web
	of course if you agree with the Burton perspective, the only one that can make bigger gaffes is Hillary... 10:55 PM August 31, 2008 from web
	probably meet "What Me Worry?" Burton there...he's the disheveled one ordering triples... 10:53 PM August 31, 2008 from web
	time to head down to the local cantina...the wife keeps replaying Sarah clips... 10:52 PM August 31, 2008 from web
	hey, no need to worry...Burton's not worried...or is he? come on and tell us, Mr. Big City Guy... 10:50 PM August 31, 2008 from web
	former DNC chair Fowler's remarks are especially unfortunate since Bush won't speak and McCain's convention refocus is a media coup... 10:49 PM August 31, 2008 from web
	former DNC chair Don Fowler apologized for saying Gustav's landfall on the same day as the RNC suggests God is on the Demo side...groan 10:45 PM August 31, 2008 from web

Why Strategy is King and Why Obama Desperately Needs Some

	jackddeal CNN.com's lead story is Sarah hometown, also that Oprah refuses to interview Sarah and then denies it...where is Obama, Chairman Burton? less than 5 seconds ago from web
	jackddeal Sarah, the game changing political sensation of the century brought to you by Demo Chairman Burton and his crony Rip 'Em Up Axelrod... less than 5 seconds ago from web
	jackddeal the poor strategy of Burton has simply put the whole election in jeopardy from the Demo point of view...Sarah just amplified the effect... less than 5 seconds ago from web
	jackddeal now that Chairman Burton and Axelrod are succeeding in boxing us Demos in; how to get out is becoming more problematic...groan... less than 5 seconds ago from web
	jackddeal what's really ticking some of us off is that none of this was necessary... less than 5 seconds ago from web
	jackddeal everybody in Silicon Valley knows strategy is king but apparently no one here relayed that message to Chairman Burton and dimwit Axelrod less than 5 seconds ago from web
	jackddeal funny how cutting in and out on the Ron Owen show all the talk is about Sarah and McCain; no one is talking about Obama...some Demo strategy less than 5 seconds ago from web
	when we Demos, led by Burton and Axelrod, attack guns, babies, mothers, God and war heroes; we win in the Bay Area but lose the Midwest... 22 minutes ago from web
	if Ron Owen and others feel attacking God is smart; just remember there are schools in the Midwest that have prayers and no one complains... 24 minutes ago from web
	amazingly some of my Demo pals still think there is no way we can lose; no matter what, Obama will win...duh 24 minutes ago from web
	now Burton and Axelrod are forced to alter stategy and get off course all because Burton and Axlelrod hated Hillary...groan... 26 minutes ago from web
	where in the whole Sarah roll out have we Demos been able to realistically counter her? nowhere, zero, zip, nada and advantage McCain... 27 minutes ago from web
	somebody in the McCain campaign set the trap for Burton and Axelrod and they blindly fell right in...attacking mothers and God is crazy... 28 minutes ago from web
	folks in the Midwest see things a bit differently than here in the Bay Area and by attacking God, guns, mothers and babies we Demos lose big 30 minutes ago from web
	the truth is, Sarah has stolen Obama's media show and Burton et al better figure out a strategy instead of 'countering' her...groan and duh 31 minutes ago from web

How Weak Management is Counterproductive or Why Do Demos Ignore Commonfolk?

	jackddeal it's not just that "trigger happy" Burton has blown it but no Demo yet has been able to counter anything she has said; why? less than 5 seconds ago from web
	jackddeal how can Ron talk about the language on a myspace account and then ask us to be calm and civil and rational? et tu Ron? less than 5 seconds ago from web
	jackddeal Ron Owen was even talking about the four letter words on the myspace account of Sarah's future son-in-law...really Ron, et tu? less than 5 seconds ago from web
	jackddeal shouldn't the Demos be driving the agenda and debate and not focusing on Sarah's looks and children? less than 5 seconds ago from web
	jackddeal Burton and Axelrod have insisted on giving away advantage after advantage...so Biden now speaks to respond to Sarah...groan... less than 5 seconds ago from web
	jackddeal Donna Brazile is upset, angry and pettily critical because McCain not only picked a woman but a smart one...smarter than Good Ole Boy Joe... less than 5 seconds ago from web
	jackddeal pleading with us common partyfolk to be more civil sort of bypasses those that created the mess in the first place...causation? groan... less than 5 seconds ago from web
	jackddeal if Ron Owen of KGO wants to place blame for the campaign stupidities we have done, he has to start with Burton and Axelrod... less than 5 seconds ago from web
	jackddeal Ron Owens advises us to take the high road and not criticize Sarah but talk issues...didn't all this mess start with Burton and Axelrod? less than 5 seconds ago from web

Decision Making and Outcomes for Organizational Strategies and Other Political Oddities

	sadly, it can be attributed to long strings of bad decisions which come directly from having inadequate input and information...groan 10:14 PM August 31, 2008 from web
	if the media favored Obama during the Hillary fight, maybe it was because they disliked Hillary and not loved Obama...what reversed that? 08:24 PM August 31, 2008 from web
	when gas hits $5 a gallon, Sarah will remind us Joe voted against the Alaska pipeline, which supplies 20% of domestic consumption...groan 08:23 PM August 31, 2008 from web
	and just where does the good Chairman Burton think the campaign is going? hope and an awful lot of faith... 08:21 PM August 31, 2008 from web
	Joe calls her good looking after Chairman Burton said her experience didn't count because it was small town, which doesn't count...groan... 08:19 PM August 31, 2008 from web
	Joe calls Sarah good looking and Sarah says Joe voted against the Alaska pipeline...groan... 08:07 PM August 31, 2008 from web
	service? really? servicing who? country first or self and partisanship first? ohmygod...groan... 07:54 PM August 31, 2008 from web
	this is all great fun and precisely the reason politics is increasingly irrelevant...our VP Joe is a case in point...fossils, anyone? 07:53 PM August 31, 2008 from web
	send our looters to Angola? how about some inept campaign staffers as well? Burton and Dean get the first tickets...groan.... 07:52 PM August 31, 2008 from web

The Death of Small Rental Offices and Stores

The total cost of renting a small office or small store is going up.   

Taxes are up.   Triple Net, maintenance, parking fees and other fees associated with commercial rentals are up.

Commuting costs to and from work are up.   Gas is up.  Some customers in some markets may have to choose between going to Your Store and going to Wal-Mart.  Or not going to any store and buying what they want online.   

Meals at work are up.  Childcare, up.  Business attire, up.  Utilities, up.  Furnishings and decor, up.  Janitorial and cleaning, up.  Employees and office help, up.    

This means that a smaller retail store must sell higher ticket items as there is just not enough shelf space to sell discounted items.   And most small retail spaces are too small for service businesses like restaurants or beauty salons. 

Being too small means one can't squeeze out enough margin and ultimately profit, the lifeblood of any business.   Cash flow-wise the office and store rental numbers don't match; hence the old expression 'working to pay rent'.   The business model is flawed. 

Increasingly many small businesses and professionals are realizing it is not necessary for them to have a physical presence where they must meet always meet customers and clients.   There are alternatives.

These smaller businesses that once were located at a specific physical location now locate themselves at a specific location online.    

In downtown San Jose, California it is not uncommon to see an outside business sign that is a website address.  In San Jose at least the line between real and virtual is becoming thinner and thinner. 

Have you recently heard someone tell you on the phone, "go to our website and it explains everything?" 

The drop in local commerce is due in part to an increase in web-based commerce.   As web sales pass the 10% of total sales mark, it is certainly expected by almost everyone that this number will increase.   

As consumers continue to search for product and service information they will replace "local" as the baseline for their purchasing decisions.   The concept of local has changed.

As cultures and values change, so do priorities.  In some circles it is more acceptable to not have a physical office and less acceptable to have a weak web presence.   For many, it is worse to have a bad Google footprint than not to have a "physical" sit-down office.

Besides, a small office makes one look small.   Small stores look small.   A BIG web presence makes one look BIG.  Where is the better ROI?  In a Search world, which makes more sense?

So it is not surprising to see half empty small office buildings and half empty strip malls.   The question is will small business market pressures prevent the rebound of small rental offices and stores?   

The real test will be on the boom side of the cycle after the downturn.

If the small office and small store rentals don't rebound in the next upturn, many of these niche businesses will become web-based and no longer have or need a physical presence. 

The rest cannot adapt to compete and will simply fade away.    

The efficacy of web based commercial applications has given the small store owner an opportunity to compete in larger non geocentric markets.    The savings on these web based storefronts and offices versus physical rental offices and storefronts is significant.   

For the cost of a small rental office one can put up a somewhat extensive e-commerce site including search marketing.   These new, smaller companies can afford to purchase services like search marketing when their rent-paying competitors cannot. 

Big advantage web; big advantage in those that can invest in search marketing.    

As the costs increase and the advantages decrease, small office and small store rentals become more problematic and difficult when projecting future margins.

The higher the fixed costs the higher the volume of business needed to pay for those fixed costs; only so much volume can be squeezed out of each foot.   

At some point, profits are also squeezed out.

The looming picture for the future is one of being able to drive relevant traffic to one's website.   For many companies how they do this will determine their level of success; not the local physical foot traffic.    

The old adage: Location, Location, Location takes new meaning in a search society.  Being found now has a very different implication.   For many small and medium sized businesses, their location is no longer physical.

Why Greenfolk are Great Customers and How to Get on their Eco Side

	jackddeal these Greenfolk can be very good customers so why not give them what they want or at least in the manner they want it? Good business? less than 5 seconds ago from web
	jackddeal others want both a paper and digital receipt; if you are in business you know the type...ha! less than 5 seconds ago from web
	jackddeal they stop all unsolicited mail and plan their trips to save gas. These kinds of customers will absolutely love your paperless company less than 5 seconds ago from web
	jackddeal these 'Greens' ask their grocery store to have a 'recycle receipt' box at the checkout counter less than 5 seconds ago from web
	jackddeal Greenfolk also know paper kills trees and the paper industry is one of the dirtiest industries on the planet. less than 5 seconds ago from web
	jackddeal These Greenfolk live what they feel and they get upset if they see you throwing a can or piece of cardboard in the regular trash... less than 5 seconds ago from web
	jackddeal Many customers and clients also prefer paperless. Ecology and 'going green' has become an obsession in many areas of the world. less than 5 seconds ago from web
	jackddeal paperless payroll is actually an employee benefit as employees don't have to wait for their checks or drive to a bank or ATM to deposit it less than 5 seconds ago from web
	jackddeal your company can almost eliminate payroll related paper by doing direct deposits and allowing employees private online access less than 5 seconds ago from web
	jackddeal anywhere your company is not legally required to have paper might be a good area to eliminate paper less than 5 seconds ago from web
	jackddeal Paper such as authorizations, invoices, receipts, bids, contracts, etc. are often required by law... less than 5 seconds ago from web
	jackddeal By eliminating paper one can reduce different types of fixed expenses that take up both time and money. less than 5 seconds ago from web

Need customers? Right now someone somewhere needs your products and services but they cannot find you. See my search research blogs at http://www.jddeal.com/blog/search_marketing or http://www.freeandinquiringmind.typepad.com

Need customers? Right now someone somewhere needs your products and services but they cannot find you. See my search research blogs at http://www.jddeal.com/blog/search_marketing or http://www.freeandinquiringmind.typepad.com Contact JD Deal Local Search Marketing at 831-457-8806 or reply to this ad.

Wingwalkers Baking Company www.wingwalkersbakingcompany.com bakes delicious cinnamon roll, coffee and cream, walnut and ginger and coco-choco chip cookies.  Distributorship inquiries welcome. 

Cruz'n Cellular 266 Mt. Hermon Road Q, Scotts Valley, CA 831-430-0663 Verizon,  AT&T, T-Mobile Sprint-Nextel, Sirius Radio, Metro, Unlocking Sevices and Payments.  Sales, service and cell phone consulting.

The Professional Touch Quality Auto Body Repair, Serving Scotts Valley and Santa Cruz since 1985, 203 - B Mt. Hermon Rd, Scotts Valley Karl Ryan owner www.proftouch.com

Jungletraders furniture, masks, statues from ancient African hardwoods like Rhodesian Teak and Lebombo Hardwood located at 5400 Scotts Valley Drive Suite B, Scotts Valley, CA  www.jungletraders.com

Bamboo Giant Nursery www.bamboogiant.com Bamboo adds privacy, tranquility and style in your home office.  5601 Freedom Blvd. in Aptos, California

Gizdich Ranch www.gizdich-ranch.com at 55 Peckham Rd. in Watsonville California.  Pick your own and see a real working ranch.  831-722-1056

How many people need what you have but can't find you? Use a Promotional Interview to drive traffic to your website, position yourself as an "expert" in your field or niche, improve your first impression and enhance your overall image.  JD Deal Local Search Marketing  831-457-8806.

Management Training

Management Training

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Reply to: serv-6777959craigslist.org
Date: 2008-05-12, 11:58AM PDT

Customized management training based on your needs. Categories include delegation and accountability, recruiting, employee reviews, leadership, assertiveness, strategies, compensation, benefits, incentives, stress reduction and perceptual and behavioral self-improvement. One-on-one or group setting. Reply to this ad or contact JD Deal Business Consulting 831-457-8806.

• Location: Santa Cruz
• it's NOT ok to contact this poster with services or other commercial interests

PostingID: 795952

Business Intelligence, Espionage and Spying on Your Competition

Business Intelligence, Espionage and Spying on Your Competition

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Reply to: [email protected]
Date: 2008-05-08, 6:21AM PDT

You know who they are but you can't figure our what they are doing. If you knew you might be able to gain some competitive advantages but not knowing is the problem. Google my article "Business Intelligence and Business Espionage or Why Don't We Just Call It Spying?" for more information. We focus on process, management and strategy; hire a private investigator PI if you want to know gossip. No hacking, scams, tricks or anything illegal; our focus is business. To find out how you can learn more about your competitors reply to this ad or contact JD Deal Business Consulting and Zuniweb.com 831-457-8806.

• Location: Santa Cruz
• it's NOT ok to contact this poster with services or other commercial interests

PostingID: 672705

Business Meeting Training

Business Meeting Training

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Reply to: [email protected]
Date: 2008-05-07, 5:27PM PDT

Think you could be getting more out of your business meetings? Do you wonder how some companies use their business meeting to gain a competitive advantage? Need to put some new life in some tired meeting legs? For more info Google my article "The Business Meeting Revisited: Waste of Time or Key Strategic Tool?" If you feel you could be getting more from your business meetings reply to this ad or call Deal Business Consulting at 831-457-8806.

• Location: Santa Cruz
• it's NOT ok to contact this poster with services or other commercial interests

PostingID: 718

The Worst Time to Sell Your Business is When Your Profits are Down

Julie and Michael owned their music business for over 25 years.   Like all businesses they have had their ups and downs but in general business was pretty good.   They had no formal exit strategy but eventually planned to sell their business and retire. 

Over the years their business had grown slowly but surely; an incremental growth that was fueled by hard work and careful reinvestment back into the business.   All appeared to be going their way up until the past few years. 

Sales unexpectedly began to go flat and many of their more expensive items were not selling.   They still sold sheet music and guitar picks and the cheaper items; but drum sets and pianos were simply not moving. 

Still, they were optimistic that things would improve.   They still had good foot traffic in the store and the local schools kept sending music students to rent instruments.   But more and more Julie and Michael could see their working capital was tied up in high ticket items that did not sell. 

Finally one of their better customers did not purchase their youngest child's instrument from Julie and Michael.   Frustrated and alarmed, Julie called the customer and asked what the problem was. 

The customer replied there was no problem but his budget was especially strained with buying braces and a new car.   He added that once he knew what instrument his kid needed he simply bought it on the Internet for about 20% less.   

That 20% was part of the margin Julie and Michael were getting as the difference between wholesale and retail.    

Julie and Michael were victims of the "look at it here but buy it cheaper on the Internet" syndrome.   E-commerce technologies had opened up the distribution channels and e-commerce based companies were willing to sell the same products at less than standard retail; after all, these e-commerce companies didn't have the overhead of a large retail store. 

Stunned and disappointed, Julie and Michael decided to sell their business before things got even worse.   They put their business up for sale and were certain someone younger that loved music would buy their labor of love.   In the first three months they had no serious inquiries so they lowered the price.   

After six months they had an inquiry from a serious but astute buyer.   The buyer examined their financials and stated the business had been in decline and needed a "miracle turnaround" to make it work.   In the end the buyer offered them a third of what they were asking and then simply walked away. 

Julie and Michael's problem was their original business model and business plan were now obsolete.   Even a not so bright prospect could see that things had been going downhill and more of the same could be expected.   

Since the business had little potential and was showing declining profits, no one was interested.   Buyers are interested in what's in it for them, not the sweat equity that goes into building up a business.   

In the end Julie and Michael did sell but certainly not on their terms.   They ended up selling the equity in their inventory and not the business per se; sort of a liquidation fire sale.  And needless to say at a lower price they had ever imagined. 

Julie and Michael were dejected.   They had spent the better part of their working lives building their "baby" business only to see their equity drained as profits declined. 

In fact, they learned that for the past several years they had been paying themselves not from profits but from their already earned equity.   

In hindsight, Julie and Michael learned they waited about three years too late to sell.   But human nature being what it is they weren't interested in selling when times were good; they waited until they became somewhat desperate.      

The lesson Julie and Michael learned too late was sell while the business valuation is at its highest.

Changing Oil and Changing Times: The Independent Auto Repair Service Dilemma

If you see fewer auto repair shops in your area then you are witnessing a trend that is spreading throughout the auto repair industry.   The small independent auto repair shop is getting squeezed by both the dealers and the 'backyarders' creating shrinking margins and putting many auto repair independents out of business. 

The global problem is the auto repair and service market has been shrinking in the last ten or fifteen years.   Technology has made cars much more reliable with fewer breakdowns, repairs and scheduled maintenances.   

Many manufacturers offer some sort of 100,000 mile warranty meaning that the independent will get little chance to work on that car for the first 5-10 years it is owned.   

As new car sales margins have gone down, VW, Chevrolet, Toyota and other manufacturers are looking to their service departments to make up the difference.   

Additionally many dealers such as Porsche and Saab have been adding other value added benefits such as a loaner car while repairs are being made.   Independents are now being forced to give courtesy rides to customers in an effort to keep up with the dealers since customers now expect this service.

Furthermore dealers such as Mercedes and Ford are now directly offering specials on services making their dealer prices comparable to independent repair shop prices.

But it's not just competitive pricing that is worrying the independents. 

The battle for skilled labor is also being won by the dealers: the dealers have always competed for skilled labor and now have become even more aggressive.  With fewer young people entering the auto repair profession and opting instead for careers such as health and technology, the total talent pool of the top skilled auto technicians is shrinking.   

Increasingly it is becoming harder for independents to hire and retain these highly skilled employees.   As an automotive technician, would you rather work for Audi or Joe's Garage? 

The dealers are picking up the best 'mechanics' or as they are known today, 'technicians.'   A top  end dealer technician can make $100,000 a year with benefits while an independent shop owner would have to gross over a $1,000,000 a year to make that and still have to pay for their own benefits and social  security.   

Because of these economic realities many independent owners are now closing their shops and going to work for GM, Nissan and other dealers.   

This puts the independent auto repair shop at a distinct disadvantage when diagnosing and repairing difficult drivability, fuel injection, electronic and computer related problems.   

Additionally, if a diagnosis is made and a part needs replacing the dealer will have it in stock, not only verifying the diagnosis but greatly speeding up the repair time and increasing customer satisfaction.   Big advantage Cadillac and Mercedes.

But it's not just a skilled employee war.   Techs cannot fix cars without information and there has been a long and ongoing dispute between the dealers/manufacturers and independents over technical information access and diagnostic tools.   

The manufacturers claim that their technical information is proprietary while the independents claim the information should be available to anyone that owns or fixes that make of car.   

If the dealers wanted to they could stop all outside repairs on their vehicles but the problem is there are not enough dealerships to service all geographic areas, especially smaller towns and less populated areas.   So the manufacturer/dealer gives out some information but not all, often charging the independent repair shops for this information.   

Not only does the independent have to buy some parts from the dealer, but also some of the technical information as well.  Big advantage Honda and Dodge.   

Some independent owners simply watch their business steadily decline over the years as they go out of business.   Younger independent owners are willing to work harder and for less financial reward hoping industry conditions will eventually improve.      

In essence the independent auto repair industry has matured and is now in a decline.   Some consolidation is going on but much of the repair work has either disappeared or is now being done by the dealers, auto repair chains or one person 'backyard' shops.      

The opportunities are there for those that want to work hard but those opportunities are increasingly limited.   In a declining market, only those independents that can develop new competitive strategies will survive and thrive.   

As with all mature and declining markets there will be new opportunities for those owners that can adapt and make the changes.   Those independent auto repair shop owners that don't modernize, strategize and compete will go the way of the Edsel and Model T.

Reactive vs. Strategic or Who Really Cares if Your Company is a Dinosaur?

It happens in business, it happens in politics, it happens in life.   There are those that wait for things to happen and there are those that make things happen.   

There are those that are in control and those that are controlled.   

There are those that have concluded it is easier and more enlightening to let things go and let things happen as they do.   Perhaps secretly they want to become Buddhist monks and pledge a life of poverty.   

Clearly fatalistic, their idea is it is better to "wing it" and keep costs and stress down by not worrying about strategy.   Or worry about much of anything.  And it works, at least in the short term when things are busy and rolling merrily along.   

Because in business if you are good at what you do, it's not so difficult to start small and stay small.   In fact, in many ways it's easier; lower overhead, fewer headaches, less investment and certainly less risk.    

But staying small is not very interesting, does not scale, does not take advantage of opportunities and in the end is only minimally profitable.   Many of these small owners would actually be better off working for someone else.       

But not so with larger companies.  Larger companies cannot exist without a strategy unless they are a first mover or in a new market.   The survival of the fittest simply means those larger companies that are less competitive now will evolve into market bottom feeders and have regular cash flow crises later. 

This begs the question of is it easier to deal with a series of cash flow crises than develop a strategy that avoids these crises?   

This should be clear to anyone that is putting forth the energy and resources to run a company.    It should also be clear to anyone that has ever dealt with a company cash flow crisis.   

The obvious conclusion is that strategy puts your company in a position to win; simple reaction means that you are doing what everyone else is doing and that makes it almost impossible to win.  In business these companies are called 'dinosaurs' and the business landscape is filled with their fossils.         

In markets that are increasingly competitive and global, the playing fields have been leveled.  No longer is geography or demographics necessarily a key competitive advantage.   

In fact, technology has given the advantage to those that use it and that potential exists even in depressed areas.  Today, a company can locate almost anywhere and ship to almost anywhere.   

Perhaps our resistance comes from our limited psychology making us become defensive about why we simply react.   We humans are filled with pettiness and we often obstinately insist on defending our past decisions; a 'spinned' distortion of past reality is a behavioral trait that seems to be almost universal.   To 'spin' the vernacular; it is us. 

"We have always done well without a strategy and there is no reason to change that now."

So if something falls outside our simple mental framework we often dismiss it as foolish or 'not applicable here'.   We wish it away and in fact away it goes.   And we pat ourselves on the back for being so clever.   Aren't we the smart ones?

"Why take the hard road and strategize when we can simply sit back and let it roll off our backs?   Besides, if one is small, it can't make that much difference anyway."

What is surprising is that all this really should be clear to anyone in business today.   Strategic planning and positioning brings competitive advantages to those that use these tools but not to those that don't. 

As a vertical market or "space" becomes saturated with competitors, most will be doing similar things.   Most blend into the competitive background and have little or no chance of standing out, which is not a problem unless supply exceeds demand.   When supply exceeds demand, those that react simply get a decreasing piece of the pie.      

For many companies there is a good alternative and that is to simply lower expectations by concluding "we aren't good enough to deserve better."   If this is your company just be sure to adjust your budget numbers accordingly especially that number in the lower right hand corner.   

Actually it should not even be embarrassing because the markets don't care whether your company does well or not.   If you don't have an updated strategy there is no need to be embarrassed.  Technically there is nothing to be embarrassed about; no worries.   

Because if you don't care enough to develop your strategy, why should anyone else care?

How to Manage Employee Personal Problems in the Workplace

We humans are complex beasts.   We live, love, hate, befriend, stress, grieve, excite, depress, yearn and everything in between.   To make matters worse, we are a potpourri; a hodgepodge buffet of everything so that the best and worst can even occur within the same psyche.   

We are in both an incredibly fantastic web of neurons and a real mess.
   
Will Rogers said he never met a man he didn't like.   He could have easily said the reverse.  Paradox, ambiguity, confusion, uncertainty and foolish pride just stir the pot.
 
We try our best to generalize, stereotype, and simplify but we human beasts defy attempts to 'get figured out'.  The same system that allows us to create and accomplish extraordinary feats also allows us to fail and anguish in misery and yet still call it a learning experience or positive cognitive exercise.
 
Additionally we bring our mixed bag of social evolution and personal circumstance to the workplace.   When we walk into the office or punch in we are still the same person even though we may flip the 'work switch' or 'put on the office face.'
   
When pain and stress enters our personal lives it can spill over into the workplace.  The result can be a sour attitude, reduced productivity, lack of cooperation, lack of focus, etc.   

Under ideal circumstances we should come to work, be happy we are employed, focus on our tasks and responsibilities and make the business agenda our agenda.   At least during work hours.
   
The demands of the workplace and the demands on our personal lives are putting greater pressures on us and forcing us to look at how we cope and try to maintain a balance.   

And throughout it all the frazzled manager has to manage and 'keep the ship afloat.'   So you might question are there not some employee tricks and strategies the good manager uses that the bad manager does not?
   
Good managers know personal problems can make a productive worker useless.  The astute manager does not take serious personal problems lightly. 

They also know many employees have potential that will never be realized because of personal problems.   Some people choose self destructive lifestyles that create a steady stream of problems.
 
Some even will find relief, meaning and comfort in going to work.   These employees bring little value to the company and the best approach is to avoid hiring such character types and consider firing the ones you do have.  It's just not fair to your good people.
   
The good managers know that when an employee has a major personal problem it may be impossible for them to focus on work.    They consider giving the employee time off to handle the problem.   

Lovers and teenagers are frequently found in this category; being a successful manager is not so much a question of being a sensitive manager as learning how to be a productive one.
 
Good managers know their people.  If an employee is showing a big shift in affect or behavior, the manager takes them aside and discreetly asks if there is a problem.   Slight shifts in behavior are normal and we all have them.   But major behavioral shifts are not normal and can signify a more fundamental problem.
   
Good managers show genuine interest, avoid gossip and respect confidentiality.  And they avoid playing the hero.  Most employees can work out their own personal problems on their own.  That is not to say an expression of concern by the manager is not appreciated...

And make it clear that at work business comes first.   Without the means to support a family things go sour quickly.  As members of a team each employee has to carry their own load...

Good managers also understand that an employee's personal problems are not the manager's personal concern.  The concern happens when these problems affect the workplace.
 
Good managers give the employee time to work through their problems but set a time limit.  Some personal problems can never be resolved and the manager should then consider the employee's appropriateness for the position.  The company cannot be expected to wait forever.
   
Consequently good managers support their employee's efforts to solve or resolve their own problems.   If their company does not offer employee counseling benefits the good manager at least considers allowing the employee time off.
 
And finally, the good manager takes care of herself.   As a manager, who is going to hold your hand when you need help?

Business Intelligence and Business Espionage or Why Don't We Just Call It Spying?

The nasty word 'spying' conjures up images of hidden cameras, microphones and James Bond.  "Hey, watcha doin', spying on me"?  For some reason one is supposed to feel very much intimidated by being spied upon.  A big social issue in the United States is how much surveillance should be "allowed" by government and business?

Certainly in business big thefts do occur.  Employees sell trade secrets, foreign spies dig through dumpsters and hackers break into computer networks.  But for most businesses, all that is Hollywood, James Bond and Technobabble.
   
What isn't Hollywood is that all businesses need to know certain information and data such as their current market position.  To obtain this information one has to have data about the competition, something many competitors will not give out freely or willingly.
 
But no need to bother Mr. Bond at the roulette table as most of the information you need can be had by simply looking. 

Seek and ye shall find or, if it sounds more intriguing, you can call it spying. Most of the information you need is available but you just need a way to access it.
 
First you have to know clearly what information you need.  If the information is not relevant, it isn't of value.  Once you know what is needed you can develop a plan.
 
Go first for the easiest and quickest which is the Internet.  What you need to know may be posted on a website or blog.   Easy, fast and efficient.  Google and Yahoo the business and personal names of your competitors.   Try some other search engines or meta search sites but start with the big two.
 
Make a digital file folder where you can put the information and keep it handy and available.   A spy's worst nightmare is to have important information but not know where it came from.
 
After going online, pick up your phone.  The phone is a great way to find specific information quickly.  When you need a specific bit of information, try phoning. 

It's also a good way to help you 'fill in the dots' when trying to determine a competitor's strategy.  Always make sure you look at pricing and staffing; simply looking at pricing and strategy often reveals strategy.
   
Surprisingly, many employees will freely tell you whatever you want to know.   Learn from this and make sure your people don't dish out confidential information.   Make sure you know what your people are saying and they know what not to say.
 
If you are looking at a competitor's strategy, put the pieces you can get and see if you can fill in the blanks and connect the dots to form the strategic plan.   Look at each competitor as a project and build your intelligence over time.   You will be amazed at what you can learn in several months.
   
You will also be amazed at how quickly information can become obsolete.  The rule is everything changes and the relevancy of your information dates from your last update so keep working on it whenever you can.  Online it is called a 'refresh'.

Oh, and by the way, while you just happen to have your five senses directly focused why not see if you can learn something too.  Maybe it's a marketing trick or sales approach or different way of packaging your product and service. 

If you find a better way of doing things, do it.  He who hesitates here is lost in mediocrity...or someplace like that.
 
Now that we have opened up Pandora's Box you might as well jump in.  Jumping is the key to successful entrepreneurship.  Call it curiosity or call it spying or call it whatever you like but knowledge is power and knowledge can give you an edge.

And if you really think about it, what's not to like about having an edge?

The Quality Line or If Your Customer Doesn't Perceive It, Does It Matter?

You get what you pay for is the consumer's mantra.   Common sense knows that if it costs less it is more likely of inferior quality.   

Unfortunately quality is relative and subjective and even unwieldy.  For that reason and common sense the value the customer puts on quality is where the quality line should be drawn.

Still it is not rocket science here; a rather straightforward case of supply and demand.  If the consumer cannot tell the difference in an improvement, why do it?  No need to guess. 

Often it is a simple matter of asking.  Think for a minute...when was the last time you asked?  Do you only ask when there is a complaint?
      
On some level every business must deal with quality.   Every business strategy determines just where the quality line goes -- high, low or in-between.   

Where this line is placed often determines the difference between success and failure.  The key dynamic is profitability; place the quality line at the wrong level and profitability goes down.
 
Customers may leave a business for poor quality but they can also go to a competitor for the same quality but better price.  In one sense this is the easiest quality question to answer: just ask your customers.   Just ask what your customers want and what do they need.   

Wants and needs change constantly so you must keep asking the question...even put it in your operating business plan.
   
Sometimes wants and needs are the same...but often they are not.  As part of your ongoing dialogue it is important to know just how much your customer is willing to pay for quality.   If your customer wants it but cannot afford it, you must figure this into your strategy.
 
The next step is to determine just where your current quality line is.   Regardless of whether you have a conscious plan or an 'unconscious' plan, you do have a quality line.   

Those businesses that have a clear idea of where that line should be can then try to bridge the gap.   Simply by taking a hard look at where you are and where you should be creates awareness and focus.   
One good exercise is to determine just where your competitor's put their quality line.   

What results are they getting and how is their quality line perceived?   Are they providing you with an opportunity to take some of their market share?
By looking into your industry's quality issues you can see that improved quality almost always involves increased costs. 

Before adding costs make sure the increase in perceived benefit will be apparent.   Since all costs go to your bottom line, make sure you are getting a good return on that investment; always remembering that in a competitive environment there is little margin to be had.
 
One cost control plan is simply looking for all the ways to reduce costs.   Another is to look at doing things that enhance quality at little or no cost.

Employee input is important to monitor; especially with those employees that have direct customer contact.   Do you have ways to reward employees who contribute to quality improvement?  Do you have low cost ways of rewarding good performance?
 
The astute owner or astute employee is always on the 'prowl' for new quality improvement ideas.   This includes looking for ways to apply quality concepts from different vertical as well as horizontal markets. 

But since the rate of change often seems to be accelerating, what may be working today may not work very well tomorrow.   So today's ownership and management must keep a sharp focus on shifting trends.
 
The competitive nature of business changes so rapidly there is no rest for the quality weary.    By constantly working the balance between quality and costs the modern manager can improve the bottom line and become more competitive.
 
There seems to be no end to the drive for improvement and cost reductions.   Where quality lies in the matrix is one of the biggest business decisions ownership and management make about the company's bottom line.

Micromanagers and Their Fading Bottom Line or Where Did the Productivity Go?

I recently received this e-mail: "I work for City Government and the City Council has been throwing the word "Micromanage" around in the Council meetings. Since there is an election coming up, they all seem to have their own idea of what the word "Micromanage" means (of which some are way off base). What is micromanaging and what is not?"

Micromanaging has become a hot buzzword. I use it, my clients use it, and now government is beginning to use it. As stated in the above the term can be misused. Perhaps it is time to better define the concept.

Micromanaging is usually synonymous with the "old way of doing things." "Dinosaur" managers use the micromanagement approach. The term essentially means to supervise every small step in the workflow process -- hence the 'micro.'

This method worked fairly well in the 'old' production days when assembly line workers were uneducated and unskilled. These workers normally did one routine step and that was it. They made few or no decisions. They had a minimum production quota.

Their breaks were monitored, their lunches were monitored and of course the time clock was monitored. Time was viewed as what was 'bought' by the company.

Close supervision or micromanaging ensured that production levels were met. Management literally had to tell employees what to do and watch them to make sure they did it.

This system worked well when workflow was simple. As the business world became more complex, micromanaging became less effective. Time was not what the company bought and the worker sold. Productivity became the key.

As processes became more complex, workers were required to gain greater skills. Skilled workers became more in demand and could go elsewhere if not treated properly. Skilled workers eventually found micromanagers offensive and more importantly optional.

After 2000 it seems companies became more results oriented.  In an increasingly competitive business environment they had to.    As time became even less of a factor in the results equation, motivation and innovation began to be understood as the real forces in productivity results.

Workers became employees and then associates and team members. Employees began to be viewed as assets and not just expenses. Employers began to understand that employees could provide the greatest competitive advantage as well as the number one management headache. In short, employees could make or break the company.

Managers began to understand that good management meant maximizing employee productivity and this could no longer be accomplished by micromanaging. Managers began to understand that knowing their people and helping them do their best was the best way to reach superior production levels.

Instead of being an obstacle, managers began to understand it was their job to remove obstacles and time constraints have been one of the last obstacles to fall.

Today's managers understand they must constantly assess and improve their workplace processes. They understand that accountability is much more than putting in time and punching the clock.

They no longer insist on telling their employees how to do something because often the employee knows more about what they are doing than the manager.

Also managers have learned that employees can not only solve workplace problems but also can create and innovate. The employee that creates and innovates does not appreciate being treated like the assembly line worker of the past. Many skilled employees feel their micromanagers do not appreciate their contributions.

Micromanaging was a process that worked reasonably well when the work was simple and the bottom line was simple. As work became more complex micromanaging lost its effectiveness. In today's workplace, micromanaging is responsible for many bad bottom lines, poor performances and bankruptcies.

With all the negatives, what's to like about micromanaging?

Corporate Culture: A Tale of Two Contrasting Companies

Corporate culture is loosely defined as the attitudes, behaviors and personalities that make up a company. In other words, it is how we view our work, ourselves, and how that qualifies and determines our look and feel. Culture is us. 

If we accept this general definition, the next thought is: how does it apply? 'Yeah, we know what it is - but what does it do?'

Sometimes fate puts us in funny positions and in this instance my case studies involved two similar businesses, about the same size, and in the same industry and at the same time.  Both were struggling financially.

Upon my initial analyses, both businesses had good growth potential and would be profitable.  Both had very similar problems and both had owners that were ego-driven hard workers.

There was never a question in either company of the willingness to work hard. There was, however, a great deal of difference in the willingness to do what needed to be done.
 
After the initial analyses and employee interviews it was clear that both owners were holding their businesses back. Both owners acknowledged they were a problem in their own companies.

The owner of Company A became convinced he was such a problem that, for his business to grow, he paradoxically had to leave it. He turned his decision-making and management over to me and several key employees.
   
The owner of Company B also acknowledged he was part of the problem, but decided that by working harder, he could overcome the problems he created.

The first thing we did at company A was to fire some minimal employees and hire some better ones and give them added responsibilities. 

The absentee owner of Company A expressed his concern at doing this but accepted it. He understood there was no alternative.

We made some tough decisions and at every opportunity there was praise from me on their efforts.  They made mistakes but the mistakes tended to be small ones so they learned from their mistakes and moved on.

After several months at Company A, some very interesting developments occurred: (a) a fierce company loyalty developed among all employees; (b) they would not let the absentee owner make any decisions;

(c) my intervention became less and less necessary - all employees constantly discussed how to improve productivity and deliver more value to the customer;

d) profitability increased to the point that all employees got raises;(e) morale steadily improved; (f) Company A began to gain market share.

Company B took a different route.

The owner did not want to fire any minimal employees because he had become a friend and "father-figure" to them. The owner began to work longer and longer hours. He began to distrust his best people.

After several months, some interesting developments occurred in Company B: (a) the stress level of all employees went up; (b) several key people quit;

(c) Company B was not able to attract good employees; (d) employees began to resent the micromanagement style and looked for ways to get back at the company;

(e) more and more intervention was necessary on my part to keep the status quo; (f) profitability decreased and customers were lost.

Six months later, the results were not surprising. Company A was growing steadily, morale was high and their employees were the highest paid in the industry. Employees enjoyed coming to work and worked very hard. They constantly were looking for ways to improve and look for new customers and markets.

Company B downsized and filed for Chapter 11. Employees were discouraged and many began looking elsewhere for work. Customers noticed that Company B was in trouble and took their business elsewhere.

Several years later the ego driven owner of Company A sold out and received a handsome sum for his efforts.  About that same time Company B folded and the ego driven owner cashed out about even.
   
It is ironic how the same force that creates a company can tear it down.

Customer Complaints or It's Not Just the Whine and Please Anymore

If you sell a product or service you will get complaints.   

Resolution is the word used when we describe the process of successfully handling those complaints.  The complaint process you set up determines how successfully your company resolves complaints.
   
The first step is to develop an attitude that complaints are problems that often are a symptom of some type of flaw or defect.  Because it can be very subjective, complaint resolution is not always a matter of right or wrong. 

Some complaints are groundless but others can reveal internal problems that may be costing your company.
 
Time is a key in dealing with any complaint.   In general, complaints that are dealt with rapidly tend to get resolved rapidly.   A rapidly resolved complaint is a cheaper complaint.   

Quick responses can often avoid confrontation and confrontations are seldom good for business.
 
First, listen to the complainer's side of the story.   Put special emphasis on how they feel.  This can provide another perspective on your business.   Even though it may be difficult, try to show empathy even if you do not admit guilt.
 
Ask them what you can do to make them happy.   Often their solution is the cheapest and it might give you insight on how to fix a business defect.  Also they really can't complain if you follow their suggestion.   

Who can complain when you give them what they want?
 
Determine how the problem happened and how it can be prevented.  Don't jump to conclusions before you have all the facts.   

Don't assume the customer is crazy or wrong just because they complain; keep an open mind to the remote possibility that by golly it just might be your fault.
 
Don't take it personally...look at the issues objectively and control your emotions.   This can be difficult if someone is questioning your integrity and calling your mother nasty names.
 
The fact is customers can be jerks.   Some appear to get their jollies by complaining and giving you a hard time.  Whatever you do or say is not enough.  They hold their noses as if they can't stand the smell, even though they are smelling their own feet.
 
You know the kind; they want to get into an argument with you about why the manufacturer doesn't make just what they want.
 
It's not as if these jerks have anything else in their depraved, petty lives they could be doing other than pestering you. 

Why in the world is this nitwit arguing with you about the engineering of a product and all you do is carry it?  Get a life, pea brain.

You can't control the fact that some people are jerks.  All you can do is control how you react to jerks.  If you get upset and angry then you lose.  The jerk has won.
 
Words might also be hurtful but the reaction to them can be controlled. Take it with a grain of salt and for your sanity maybe deflect it with some humor.
 
"Why sir, let me see if I can get their engineering department on the phone right now to address your concerns though I think they are all asleep in China right now."  Nitwits.
 
Laugh it off and don't get jaded.  Don't let the jerk determine how you will react to the next customer.   That is what we see in today's marketplace; too many distressed and depressed employees.
   
But most people are OK; they just want to be treated fairly whereas the jerk wants to be treated special.   How about a 75% surcharge on all parts and labor for the 'jerk factor.'
 
We all get behind these jerks in the check out line.   They want to argue with the poor clerk over something the clerk has no control.  But fortunately most of us aren't that way because if we were no one would ever make it out of the store.
 
There also comes a point in every business' development when they have to simply say "we chose to not do business with you because we always lose money whenever we deal with you.  Besides, you are a big jerk and a pain in the posterior.  Have a nice day."

Is there a law against it?

This one simple tactic can do more to reduce headaches and improve the bottom line than any complaint resolution process.  Maybe it's time you just stood up and fired all jerk customers.
    
Handling that complaint professionally can make your business run more smoothly and keep your hard earned customers...if you get really skilled at dealing with complaints you might even bring in some new business.
 
Just make sure to stay close to the chase and take the pulse of your customers regularly.   After all, most customers don't complain, they just go somewhere else.

Workplace Humor or When Was the Last Time You Had Fun at Work?

Business is serious stuff.
 
Costs must not exceed revenues.  Employees must be hired, fired, reviewed, evaluated, compensated and motivated.  Managers must walk the tightrope of viewing employees both as resources and costs.  The competition is brutal.
 
What does it say about a business when we walk in and find stressed, grumpy, resentful employees?   Isn't image, look and feel the responsibility of management?
 
Employees do what they are told and reflect the company image they are told to reflect.  Image is the responsibility of management.  So is humor.

Unfortunately the message employees often get is that the company is no fun.  With such high stakes the atmosphere can get overly serious: "if we don't get this contract we all should start to look for another job." 

"If we don't find a way to compete with that big chain we are toast." 

"All our best customers are going to our cheaper competitors."

These are serious issues...everyday serious issues.  Bread and butter problems are not funny.  These issues aren't funny so why the humor?
 
Consider the normal reaction when a manager tells an employee 'unless we get more sales, we won't make payroll next week.'  More often than not the reaction is one of simple worry.
 
The manager mistakenly feels that if he makes the employee feel badly enough then the employee will become motivated as if the payroll problems were the employee's problem.
 
In reality the manager is simply spreading his worry.   The next customer that comes in will read the worry in the employee's face.   The customer may not know the specifics but they clearly see there is a lot of tension.  They can see it.
 
What is not always clear to managers is how the bottom line correlates with attitude and company culture.

When employees hang their heads it is usually a good indicator of the company's performance.  The impression depressed employees give is one of trouble or internal problems.
   
Yet the hard facts of cash flow and competition cannot be ignored.  Where is the trade off?  Where is the magic mix?  Is there a happy median?
 
The bad news is there are no quick fixes for the business seriousness syndrome.  The really bad news is it takes some cognitive restructuring or reframing of old attitudes to develop a better sense of humor.
 
In order to change perception attitude has to change and that is not an easy task.  People are stubborn and in fact attitudinal change is almost always is a very difficult chore.
 
It is important to understand that humor is a process not a destination.   Humor requires ongoing creativity and lots of attention.  And some lighthearted kidlike energy.   After all, humor is supposed to be fun, no?
   
What's the worst that can happen?   Without humor, the worst is already happening.
 
Think about beginning your next business meeting with a touch of humor. Do something humorous and different.   Hand out toys if you can't think of anything else.  Liven up! 

Make the attendees do something that involves their direct participation.  Take a minute to have few chuckles before getting down to all your serious business.  Make fun of a tense situation to help ease the stress.
 
Employees know when their jobs are on the line.  Making them feel worse accomplishes nothing except lowering morale.  Making them laugh lessens their tensions, improves focus and may just improve productivity.
 
Laughing certainly helps morale.  Try a little humor.  'If we all die in the Big One that will take care of the tax problem.'

Use humor to lower communication barriers when you are dealing with something very serious.  'I would be getting sunburned in Tulum right now if we hadn't lost that shipment'.

Use humor to reinforce the bond between you and your customers, suppliers and staff.   Customers like to be perceived as humans and not just accounts.  When you use lighthearted humor with people they tend to view you in a more positive light don't feel they are only a transaction.
 
Do happy employees create happy customers?  Are your people happy?

So just how is your company look and feel doing these days?  Do you project a positive image with friendly, loose, relaxed, focused and upbeat employees?  Are all your people Sad Sacks?
   
Humor is one of the highest, personal and complex of all behaviors.  But at the same time there really is no need to make it out to be more than it is.   It's all really quite simple.  Humor is life; humor is fun.

Ask yourself, is your work fun?

Is Fast Growth Always Better than Slow Growth?

Growth is what it is all about.   Companies that do not grow do not make money.   There is a direct correlation between growth and making money. 

Historically growth has most often been expensive and somewhat illusory hence the willingness to accept as much growth as fast as possible. 

Anyone that has ever tried to grow a stagnating business knows how hard getting any growth can be so few can resist the lure of fast growth. 

But there negatives associated with fast growth.  Some businesses would be better off to avoid the temptation of fast growth and instead look at steady incremental growth: incremental versus exponential. 

At this point the hope would be the owner would grow incrementally with the company.   

A quick self assessment of where you are and where you want to go needs to be made.  From this assessment you can determine your capability for growth as well as indications for the best strategy to take.   

One characteristic of fast growth companies is that they have to make decisions at an accelerated pace.  Often these decisions need to be made on the spot with little information.  Mistakes are not allowed.    

The key indicators here are what do you have in place right now and what will you need to put in place to complete your business plan. 

The critical call on decision making is what will be the reliability of the company's day to day decision making as it grows and expands. 

During fast growth the status quo or "business as usual" is set aside and everything becomes stressed and strained.  It is vital to your company that you have good decision making strategies and staff to carry them out.      
            
Sooner hopefully than later you will have carefully reviewed your markets.  If you markets show little opportunity there may be little chance for growth unless you diversify. 

Look at your markets carefully and see if and where there are potential growth opportunities.   

Growth industries are best but some declining industries offer growth opportunities as well.   If your market potential is there, then proceed to customer value.
 
Look to what customer value you give and how that works in your competitive environment.   Run that out on a timeline and attempt to anticipate your customer's future needs. 

Can you create enough value to generate a profit?  Again, focus on the market opportunities for growth.

As with any business venture there is risk and fast growth comes with risks.  The key is to identify these risks and determine if they are acceptable.   

The biggest risk for fast growers is cash flow...do your growth strategy projections keep you solvent as you grow?

On some bank loan financial projections one is required to include available cash on hand column to guarantee liquidity.   This is because sales don't always mean growth and the temptation to grow quickly through financing is a trap that has caught many an unsuspecting entrepreneur off guard.   

It is important to make these projections to insure the company will remain solvent and have enough cash on hand to meet daily and weekly obligations.  Part of this juggling act is volume versus capacity. 

Volume versus capacity is one of the trickiest juggling acts in fast growing businesses.   Once you get the increased volume, can you handle it or will the quality of your product or service deteriorate making your business less competitive?   

Can you meet the anticipated demand?   If your sales slow, will your fixed costs be too high? Do you have to make changes in your business infrastructure and if so, what will that cost?   
            
Employees and staffing are probably the fast growers biggest headaches.  Fast growing businesses require employees that are focused and productive.   

Fast growing businesses are a good deal more stressful, but also more challenging, rewarding and fun to some employees but too much work for others. 

If you decide to grow quickly, assess your employees and see where each fits.  You most likely will face the problem that not all employees are suited for fast growth. 

Getting and keeping good employees is much more important in a fast grower...make sure your pay and benefits provide good incentives.   
            
Growers grab for any advantage they can and technology offers a world of advantages.  The idea is how to leverage technology to make your business more effective and efficient.   

What are the technology costs and can your people do with technology?    

The whole business attitude is different in fast-growers.   There's an excitement, thrill and upbeat buzz of activity, but not for all.   Do your people see growth as stress or excitement?

Even though more fast growth opportunities exist than ever before, only a relatively small percentage of businesses are in a fast growth mode.
    
Run multiple scenarios so you will begin to understand the peculiar dynamics of fast growth so you can see if growth is friend or foe.  Fast growth may in fact be for you, but look before you leap!

Offshore Outsourcing: If It Sounds Too Good to Be True, Try a Little Due Diligence

Like many Silicon Valley entrepreneurs Joe had a dream.  Joe's dream had been incubating for a decade and he was finally ready to move.   He had his infrastructure set, his marketing plan complete and he had done his homework.  Joe's dream was a plan ready to be executed. 

Like many others, Joe's dream involved selling his products by e-commerce on the Internet.    As we mapped out Joe's strategy we also did some preliminary budgeting, especially for the e-commerce site.  I knew a good site could run $5,000 up if designed from the ground up.   Many e-commerce services, such as those offered by Yahoo, run from about $30 a month up.  Not bad but not much flash.  Since Joe was in the design industry, flash was important.

We had even whiteboarded out how he could sell online and each transaction would be automated into QuickBooks and his profit and loss reports.   As his profits rose exponentially his biggest concern was how to keep track of his profits.  I cautioned Joe about reality but did not want to dampen his dream.  It was his passion. 

Joe's current business would support him through this transition but his available working capital was limited since he rented a rather large office and production floor.   His high overhead was one reason he wanted to sell online.   But with limited capital he had to make every dollar he spent work. 

When I last spoke with Joe we had pretty much nailed it all down for his new online e-commerce venture and except for some of the marketing collateral, he had a viable plan.  I left for another project, Joe to his good fortune and did not hear back from him for several months. 

When he called he apologized for not having been up and running.  I laughed and said it's his business, not mine so no need to apologize.   He said he had the bright idea of going offshore to India to get a cheaper deal on an e-commerce website design.   He did contract with an Indian firm for a little less than half what a Silicon Valley e-commerce designer would charge. 

Joe paid the full amount by credit card before the work had begun.   Mistake number one but for Joe it was 'cheap'; it wasn't even for him a matter of price vs. cost.  For almost two months they strung him along but in the end produced nothing and refused to return his money.

What could Joe do?  He could file a fraud complaint with his credit card company and they could pursue it through the credit card system.   But if in fact the web design company was simply a front, then they will scam all they can and when the law gets too close just shut their scam down and reopen under another name and another merchant account.  For Joe to pursue his case in India would probably cost him more than the fraudulent web design fees he paid.   

Eventually Joe may get his credit card company to shut down the fraudulent merchant account but these scams are set up to shut down and restart.  How do you go after a non-existent company in another country with lax laws?   Unfortunately it's a bit late after the fraudulent transaction has occurred.   

Joe will recover.  He will work extra hard to replace his working capital but the whole scam will prove a costly one.  It will set his project back two or three months and in e-commerce time is money.   

Joe clearly made several mistakes in trying to save money.  Had he only made just an initial payment his loss would not have been so much.   Joe was impressed with a fancy website and fancy fake demos.  Had he done a bit more research on his scam outsourcer he would have seen the light quicker.   

But Joe was a bit greedy and felt he could leverage his investment and get more Return on Investment (ROI).   He learned the hard way.  There are probably several hundred companies within 20 miles of Joe's factory that could have done the job for him.  True, at two or three times the price but the actual cost would be less.  Joe's mistake was not taking a little more time and examining a good development plan with a reputable company.   This process is commonly known as 'due diligence'. 

Joe learned that a great scam is not only too good to be true but a 100% loss.

How to Keep Your Written Work from Being Copied and Plagiarized

It's happened to most of us that write and if it hasn't happened to you yet it will.  It's only a factor of time and exposure. 

Someone has stolen your labor intensive work and put their name on it.  Or, taken your work and rearranged the paragraphs and put their name on it.   Or, taken all your good ideas and reshuffled the words and put their name on it.  Or any combination of the above. 

If you publish and distribute on the web you may have hundreds of articles on a large number of websites, blogs and article databases.  That's a lot of exposure.   If I google the articles name I might find one that has not given proper credit.  Usually they are novices and correct the problem.   This type of plagiarism is easy and simple. 

It's also a question of monetary gain.  My own personal cases of plagiarism did not amount to any monetary gain.  Nobody sold my content and made money.  So if that is the case, back off and let it go.  Notify the infringer and let it go. If big money is involved, talk to a lawyer. 

But there are several ways I have found to protect myself.  The first is that if I am going to put the article in a public place in the public domain, I want to post the article on my website first.  This is proof it is mine. 

The next is a bit more involved and it has to do with the content structure.   

When I first started writing business articles I wrote nuts and bolts types of articles; what is a balance sheet, what is direct marketing, etc.  The problem with these types of articles is that they can be rearranged rather easily and become a 'new' article.  There is actually software out there now that purports to do just that. 

That's right.  There is software out there that can take linear, step by step nuts and bolts articles and rearrange them so someone else can put their name on them.   

And of course people can do the same thing.   From one hundred dollars down you can buy an article on just about anything from someone else and put your name on it.  The only problem is the quality is so bad you may want to use a pen name, which defeats the whole purpose in the first place. 

Fortunately this rearranging software only works on content that can be broken up easily.  What if the content can't be broken up easily?  What if the thread or train of thought of the article is such that it can't be reshuffled and still make sense?   What if the text has lots of fragments and subtly intertwined expressions?  Ha...just think of the headache of taking it apart and rearranging it.  The truth is it takes so much time and is such a pain that it's easier to just write the article from scratch.  Go figure...

I also try to spice up my content with slang, offbeat expressions, punctuation and whatever else happens to be handy.  Poke, jab, kid, enrage, prod, insult do anything outside the linear behavioral model and your content becomes very difficult to repackage as well as livelier and more interesting.   

My strong suspicion is that a lot of these rewrite and write services are offshore, especially in India where English is spoken.   So if you add a lot of local zip and slang to your content they won't know that is.   It has to be straightforward and linear for them; otherwise they can't do it. 

Here's an example.  I'm writing an article about the Revolutionary American flag with the snake on it that says 'Don't Tread on Me'.  The title I chose was" 'Don't Tread on Me' Snake Motto is Foundation for the Modern Free and Inquiring Mind."

Rearranged, it going to have a lot of rough spots.  It's even a tough title as it is...

In the text I open up freely and let it go.  The bodacious and frolicking text is very hard to duplicate and repackage.  I also consciously try to make the story thread or trail a convoluted and unpredictable one.  It can only go this way or it makes no sense.  At this point I have probably beaten all the copiers.  They of course can take the general idea of the article, but to get another article they will have to write their own. 

And so it goes.  We all get copied and we all get mad.  I just try to make it harder to copy.  With fragments.  Lots of fragments.  Don't forget the fragments. 

Think fragments.  Mucho fragments...

Humor on the Job: Is Your Work Fun?

Business is serious stuff.  Costs must not exceed revenues.  Employees must be hired, fired, reviewed, evaluated, compensated and motivated.  Managers must walk the tightrope of viewing employees both as resources and costs. 

Why is it that when we call or walk into a business we often find stressed, grumpy, resentful employees?  Why do employees often say their jobs are not fun? 

Part of the answer may be in the true seriousness of the workplace.  Economic stability, careers and retirement are on the line.  Maybe the atmosphere has gotten a little too serious: 'if we don't get this contract we all should start to look for another job,' ' If we don't find a way to compete with that big chain we are toast', and 'All our best customers are going to our cheaper competitors'.   These are serious issues...everyday serious issues. 

What is the normal reaction when a manager tells an employee 'unless we get more sales, we won't make payroll next week.'  More often than not the reaction is one of simple worry. 

What is clear is that a business' bottom line and balance sheet correlate closely with their attitude or company culture.  When employees hang their heads it is usually a good indicator of the company's performance.  The impression depressed employees give is one of trouble or internal problems. 

Yet the hard facts of cash flow and competition cannot be ignored.  There are no quick fixes to this business seriousness syndrome.  The following are a few suggestions on how to make that happen:

• Begin meetings with a touch of humor.  Hand out toys if you can't think of anything else.
• Make fun of a tense situation to help ease the stress.  'If we all die that will take care of the tax problem.'
• Project a positive image with friendly, loose,  relaxed and upbeat employees.
• Use humor to lower communication barriers when you are dealing with something very serious. 
• Use humor to reinforce the bond between you and your customers, suppliers and staff.   Customers like to be perceived as humans and not just accounts.
• Humor helps a business become a fun place to work.

Humor is one of the highest and most complex of all behaviors.  Humor not only makes good business sense but is one of the great spices of life.   

Ask yourself, is your work fun?

Jack D. Deal

Mad Madalyn's Management Mania: Exploitation, Office Manager, Embezzlement, Murder, Gold Coins, New Zealand

     

We often look to cause and effect for the answer to the question 'why?'  This is one that I've thought on for a number of years and can't quite seem to resolve…

An old friend was raised in a conservative, fundamentalist family.  As a rebellion to his upbringing, he studied philosophy and psychology and eventually came into contact with Madalyn Murray O'Hair, the famous atheist that challenged prayer in schools in the famous Supreme Court Case in 1963.  The good folk of

Austin

,

Texas

referred to her as Mad Madalyn.   She was always in the local newspapers doing something outrageous...

My friend made several trips to

Austin

and the

American

Atheist

Center

.  O'Hair eventually offered him a job as office manager for the Center.  He understood that working for a 'cause' organization would require long hours with meager pay but he believed in the cause and moved to

Austin

.

He lived simply so the minimum wage pay was enough for him to get by.  His 40 hour week soon ballooned to 60, 80 and 100 hours.   O'Hair kept giving him more work.    Even without benefits and half the minimum wage he gladly put in his long hours.  He would go home to sleep and fix most of his 'meals' at work.  He became sleep deprived and malnourished but it was all in the name of the 'cause'.  He told me that others before him had done the same.  It was expected by Mad Madalyn...

Incredibly this continued for years as he took on more and more responsibility.  When his landlord raised his rent, he asked Mad Madalyn for a raise citing his long list of responsibilities and long hours as a justification.   Madalyn escorted him to the door and told him not to come back.   My friend could easily be replaced as there were many others willing to 'work for the cause.'   And maybe even for less money...

She replaced him and the cycle continued.  Eventually, she hired a manager that had a criminal background but was willing to work cheaply for the cause.  He worked for the cause but mostly for himself and managed to embezzle $50,000 in the process.

But not to worry...there were always more willing to work for the cause.   She just found another office manager and the cycle continued.

But one day she just disappeared.   Employees could not find her and a list of creditors showed the Center was in deep financial trouble.   Most people on the inside thought she had left the

U.S.

with her son and granddaughter and gone to

New Zealand

, a plan she had spoken of before.   And so she remained incognito with only an occasional article questioning what beach resort she had retired to.

And then piece by piece, it began to unravel.

The police began to pursue an ex office manager and the trail began to warm.  After a number of months and speculation, the case broke.   The office manager and some of his criminal cronies had kidnapped the O'Hairs and held them for ransom, eventually getting $500,000 in gold coins that had come from the 'cause.'   After they had gotten the coins, which were stored in a storage locker, they killed the O'Hairs, chopped them up and buried them in a shallow grave on a south

Texas

ranch.

At one point I conducted a four hour taped interview with O'Hair.   She came across as intelligent, insightful, and committed to ridding the world of the evils of religion.   She made no apology for the way she treated her employees.

If there is a moral to the story it's that short term employee exploitation can bring short term results but watch out for long term exploitation...ha.

If Mad Madalyn were alive today, would she admit her management style was flawed? 

Or would she say, 'hey, you, you're not going to church on Sunday...why can't you work?'

Managing Personal Problems in the Workplace

     We humans are complex beasts.   We live, love, hate, befriend, stress, grieve, excite, depress, yearn and everything in between.   Whether we like it or not, agree or disagree, we are given what we are given.   To make matters worse, we are a potpourri; a hodgepodge buffet of everything so that the best and worst can even occur in the same psyche.   We are in short; an incredibly complex web of neurons and a real mess.   

     Will Rogers said he never met a man he didn't like.   He could have said the reverse.  Paradox, ambiguity, confusion, turmoil, uncertainty, motivation, pride, ego and strong sense of community just stir the pot.  We try our best to generalize, stereotype, and simplify but we human beasts defy attempts to 'get figured out'.  The same system that allows us to create and accomplish extraordinary feats also allows us to fail and anguish in misery and yet still call it a learning experience or cognitive excercise. 

     And of course we bring our mixed bag of social evolution and personal circumstance to the workplace.   When we walk into the office or punch in we are still the same person even though we may flip the 'work switch' or 'put on the office face.'   

     When pain and stress enter our lives it spills over into the workplace.   The result can be a sour attitude, reduced productivity, lack of cooperation, lack of focus, etc.   Under ideal circumstances we should come to work, be happy we are employed, focus on our tasks and responsibilities and make the business agenda our agenda.   At least during work hours.   

     The demands of the workplace and the demands on our personal lives are putting greater pressures on us and forcing us to look at how we cope and try to maintain a balance.   And throughout it all the manager has to manage and 'keep the ship afloat.'   So you might question are there not some tricks and strategies the good manager  uses that the bad manager does not?   Here are a few concepts:

1)  Managers know personal problems can make a productive worker useless.  The astute manager does not take serious personal problems lightly.   

2) Many employees have potential that will never be realized because of personal problems.   Some people choose lifestyles that create a steady stream of problems.  Some even will find relief, meaning and comfort in going to work.   These employees bring little value to the company and the best approach is to avoid hiring such character types.   And consider firing the ones you do have.  It's just not fair to your good people.   

3) When an employee has a major personal problem it may be impossible for them to focus on work.   Consider giving them time off to handle the problem.   Lovers and teenagers are frequently found in this category.   This is not so much knowing how to be a sensitive manager as a productive one. 

4) Get to know your people and request they get to know theirs.   If an employee is showing a big shift in affect or behavior, ask if there is a problem.   Slight shifts in behavior are normal and we all have them.   But major shifts are not and can signify a more fundamental problem.   Try to show genuine interest, which as a manager is part of your job description.   Avoid gossip and respect confidentiality.   

5) Avoid playing the hero.  Most employees can work out their own personal problems on their own.  That is not to say an expression of concern is not appreciated...

6) Work on your own managerial people skills so you become a better observer. 

7) Make it clear that business comes first.   Without the means to support a family things go sour quickly.  As members of the team you owe it to your colleagues to carry your load...

8) Understand that an employee's personal problems are not  your concern.   Your concern happens when these problems affect the workplace.

9) Give the employee time to work through their problems but set a limit.  Some personal problems can never be resolved and the manager should then consider the employee's appropriateness for the position. 

10) Support your employee's efforts to solve or resolve their problems.   If your company does not offer counseling benefits you could consider allowing the employee time off to go.   

11) Think of your people as profit centers and not costs.   

     And finally, take care of yourself.   As manager, who will hold your hand when you need help? 

Jack D. Deal

The Independent Vs. Dependent Employee: Twilight Zone, Paycheck, Work History, Exploitations, Workflow, Contrasts, Job Description

pendent vs. Independent Employee
Conceptual extremes help us build a framework for better understanding. The two extremes in this article are human extremes -- opposites that we all have seen and experienced.

Of course the real world is not so kind as to give us neatly bound packages of understanding. There are too many gray areas, too many twilight zones and just plain holes in our limited capabilities. Trying to put something like the human mind in a framework is not only futile but also agonizingly frustrating. Employees are people and people are complex beings. As we look across various types of behaviors and attitudes it is important we try to begin to make some sense. Dependence and Independence are admittedly labels. Despite all the asterisks, here are some observations on dependent and independent employees:

• The dependent employee feels entitled to a paycheck. The independent employee feels he earns a paycheck by bringing value to the company.
• Dependent employees are happy with the status quo while independents are on the prowl for improvement and opportunity.
• Dependent employees downplay their lost opportunities of the past; independents have taken advantage of opportunities many times.
• Dependent employees come to work because they have to; independent employees are interested, driven and optimistic.
• Dependent employees see us vs. them; independent employees see us and us.
• Dependent employees are defensive; independent employees are interested in increased responsibilities.
• Dependent employees feel they are constantly being exploited; independent employees know value.
• The dependent employee is mired in the status quo; the independent employee is challenged and has suggestions and ideas.
• The dependent employee views his work history as a series of exploitations and bad luck; the independent employee sees his planned career as the realization of personal ambition.
• The dependent employee has years of experience; the independent employee has years of self-improvement.
• The dependent employee's goals are vacation and retirement; the independent employee's goal is success.
• The dependent employee allows personal problems to interfere with work performance; the independent employee takes care of his personal life so he can focus when working.
• The dependent employee disrupts workflow when upset or unhappy; the independent employee states the problem to management and offers to help resolve it.
• Dependent employees shun anything outside their job description; independent employees make good sound decisions that are in the company's best interest.

Perhaps the contrasts are a bit exaggerated. Yet the point still is very clear -- those employees that are mean-spirited and selfish bring the company little value. A clear thinking, motivated independent employee will constantly have the company's best interest at heart. These two extremes are worlds apart and bring very different business results!

Jack D. Deal

The Male Manager and Pre-Menstrual Syndrome (PMS)

As a male it is not easy writing about PMS. There are many females, especially those local to the Bay Area, that would say 'don't even try!' There are some that would say things like 'men have their own PMS and menopause'. And so on. But just because a topic is a difficult one does not mean that it should be avoided. And over the years I have seen PMS become a workplace issue. My thoughts and observations come strictly from a business perspective and not from a personal bias. For the record, my mother, my sister and my wife are all women. If my comments are viewed as simplistic please consider that my comments are by a male for male managers. I have not personally encountered problems with female managers addressing a PMS issue with female employees although I am certain that it has occurred. Female managers, as well as female employees, are much more open to addressing PMS as a workplace issue.

It has been my experience that PMS is different for each woman -- some women feel there is no such thing, some are incapacitated and others have a 'good month and then a bad month'. PMS involves a 'cycle of life' and this cycle can be very different from woman to woman. Even the medical community is not in agreement about PMS. Is PMS a monthly form of disability? Should employers recognize PMS and plan their schedules and workflow around it? Is PMS something that is private and something that is 'no business' of the employer? I have heard many different opinions. Unfortunately for male managers, no one has developed a workable 'PMS strategy' in the workplace.

PMS in the workplace comes in three basic forms with negative implications: absenteeism, reduced productivity and disruptions. Male managers often do not consider that PMS may be an issue. When I am speaking with a male manager, and the discussion involves a female employee's absenteeism, loss of production or disruptions, one of the questions I ask is 'how often do these problems occur?' This is a question I ask about all employees -- male or female. The male manager will think, pull out statistics, scratch his head and say 'about once a month around this time.' And not even consider that PMS may be involved.

When I bring up this possibility the male manager's typical response is avoidance -- it can't be, we can't talk about it, we don't want to know about it, etc. The problem with avoidance is that it provides no rationale for absenteeism, low production or disruptions. If a female employee does have a PMS problem and management will not acknowledge that problem then the employee can be assessed as being lazy, not interested or a troublemaker. This is not fair to the female employee.

How a male manager addresses PMS is the real question. One thing is clear -- avoidance is not the solution. From the workplace perspective the avoidance of PMS is a male problem. Females tend to speak about PMS much more openly -- even to males. Males often 'don't want to talk about that.'

What is a male manager to do? As with most management issues the answer is conditional and situational. There is no formula. However, I have seen some methods to resolve the avoidance problem.

Depending on the situation, a female employee or female manager can be of great help. Having a female speak about PMS to another female employee is not so much a 'woman thing' as it is a 'man thing'. Care has to be taken here about confidentiality and other ethical management issues. When a male manager acknowledges the problem but feels helpless the first thing I ask is -- is there another female that can help?

Once the problem is acknowledged the solution is much easier. Managers can reassign workload, give time off, give compensatory time off, etc. This can also be done when teams manage themselves. Again, the real negatives occur when the problem cannot be acknowledged.

There are no easy answers. Like most difficult problems awareness is the first step -- simply creating awareness can bring improved results. For businesses trying to become more 'human organizations' it is important to consider human needs. PMS is part of the life cycle -- not just a 'female' problem. For the male manager, it is important to realize female employees deserve the consideration!

Jack D. Deal

Break Even Point

Jack D. Deal

The break-even point is defined as the point where sales or revenues equal expenses. There is no profit made or loss incurred at the break-even point. This figure is important for anyone that manages a business since the break-even point is the lower limit of profit when setting prices and determining margins. Obviously the break-even point becomes very important when calculating a strategy for net profit.

The break-even margin is a ratio that shows the gross-margin factor for a break-even condition. The formula is total expenses divided by net revenues multiplied by 100 to get a percentage. This ratio is helpful when setting prices, with competitive bidding and when negotiating contracts with vendors and accounts.

The dynamics of the break-even point and the break-even margin show managers the impact of their decisions. In purchasing, costs can be lowered by bulk purchasing, negotiating price/ terms or finding new suppliers. Revenues can be improved by increasing value to the customer or offering non-price concessions. It must be remembered that increasing profits by simply increasing margins is a risky strategy. Unless the consumer perceives higher value, increased prices may negatively impact sales.  . The customer ultimately decides benefit, value and sales.

When looking at break-evens it is also helpful to look at fixed and variable costs. Fixed overhead is steady and can be factored in quite accurately. Variable costs are not as simple to calculate but in many industries variable costs follow certain percentages or ratios so they are easier to project.

It is also helpful to look at break-evens on a daily, weekly, monthly and yearly basis. Many construction companies base their bids on when they hit their yearly break-even. Once that point is reached they can make their bidding more competitive to stay busy and profitable.

I have found if very useful to let personnel know the break-even figures. This gives them a very clear picture of expenses and what it actually takes to run the business. Sharing break-even figures also reduces the perception that ownership is getting rich off of the employee's.

If you do not know your break-even point ask your accountant to show you. Some bookkeepers are able to add the break-even point to their reports. If you think finding out the obvious is not worth the effort, just consider how many businesses have failed because they did not know their break-even point.

Jack D. Deal

---

Micromanagers and Their Fading Bottom Line

Jack D. Deal

I recently received this e-mail: "I work for City Government and the City Council has been throwing the word "Micromanage" around in the Council meetings. Since there is an election coming up, they all seem to have their own idea of what the word "Micromanage" means (of which some are way off base). What is micromanaging and what is not?"

Micromanaging has become a hot buzzword. I use it, my clients use it, and now government is beginning to use it. As stated in the above the term can be misused. Perhaps it is time to better define the concept.

Micromanaging is usually synonymous with the "old way of doing things." "Dinosaur" managers use the micromanagement approach. The term essentially means to supervise every small step in the workflow process -- hence the 'micro.' This method worked fairly well in the 'old' production days when assembly line workers were uneducated and unskilled. These workers normally did one routine step and that was it. They made few or no decisions. They had a minimum production quota. Their breaks were monitored, their lunches were monitored and of course the time clock was the tracker. Time was viewed as what was 'bought' by the company. Close supervision or micromanaging ensured that production levels were met. Management literally had to tell employees what to do and watch them to make sure they did it.

This system worked well when workflow was simple. As the business world became more complex, micromanaging became less effective. Time was not what the company bought and the worker sold. Productivity became the key. As processes became more complex, workers were required to gain greater skills. Skilled workers became more in demand and could go elsewhere if they were not treated properly. Skilled workers eventually found micromanagers offensive and crude.

After 2000 it seems companies became more results oriented.  In an increasingly compeitive business environment they had to.    As time became even less of a factor in the results equation, motivation and innovation began to be understood as real forces in production results. Workers became employees and then associates or team members. Employees began to be viewed as assets and not just expenses. Employers began to understand that employees could provide the greatest competitive advantage as well as the number one management headache. In short, employees could make or break the company.

Managers began to understand that good management meant maximizing employee productivity. This could no longer be accomplished by micromanaging. Managers began to understand that knowing their people and helping them do their best was the best way to reach superior production levels. Instead of being an obstacle, managers began to understand it was their job to remove obstacles. Time constraints have been one of the last obstacles to fall.

Today's managers understand they must constantly assess and improve their workplace processes and mechanisms. They understand that accountability is much more than putting in time and punching the clock. They no longer insist on telling their employees how to do something because often the employee knows more about what they are doing than the manager. Also they have learned that employees can not only solve workplace problems but also can create and innovate. The employee that creates and innovates does not appreciate being treated like the assembly line worker of the past. Skilled employees feel micromanagers do not appreciate their contributions.

Micromanaging was a process that worked reasonably well when the work was simple. The bottom line was there. As work became more complex micromanaging lost its effectiveness. In today's workplace, micromanaging is responsible for many bad bottom lines, poor performances and bankruptcies.

Jack D. Deal

Breakthrough Employees

There are employees and then there are breakthrough employees. Once in a blue moon the average company hires someone that can make a dramatic difference in the business. This is usually done in the routine hiring process – someone retires, quits or is fired and a person is hired to take their place.

Sometimes the company acknowledges the presence of a breakthrough employee but very often does not. Co-workers and micromanagers will drive off a breakthrough employee by considering them a threat to the status quo and their own narrow self-interests.

There is no doubt that the right kind of employee can bring huge value to a company. Highly successful companies often build their success around this type of employee. The breakthrough employee:

1. Can help a company make a 'quantum' leap. This means that this type of employee can help a company reach the next level of its strategy.
2. Wants to work in an environment where their skills and knowledge are appreciated and used.
3. Constantly speaks of improvement, opportunity and what is possible. They will 'jump ship' quickly if the company does not meet their needs. Breakthrough employees will tend to go toward opportunities and a good opportunity goes a long way toward keeping them.
4. Considers mere compliance to standards a bad joke that does not apply to them.
5. Has little sympathy with those that just do enough to get a paycheck.
6. Can quickly raise standards. This is another reason co-workers may resent their presence. Envious co-workers often conspire to make it difficult to co-exist.
7. Brings experience and new ideas and are not afraid to share them. Their feeling is –"if we can do it a better way, why not?"
8. Has ambition and thrives on a sense of accomplishment. They have the 'fire in the belly'.
9. Looks for ways to learn new skills and gain knowledge.
10. Can add freshness and zip into a dulled, compliant staff.
11. Can come 'out of the blue' in search of opportunity and employment.
12. Is generally optimistic that positive results can occur.
13. Is open to innovation and sees change as a way to grow.
14. Knows their true value to a company and knows they should be well treated and well compensated.
15. Dislikes anything, including micromanagers that get in their way. If enough obstacles are present they will perceive a lack of opportunity and go elsewhere.

Breakthrough employees are one of the quickest ways to get rapid improvement and growth in a company. Awareness of the breakthrough employee is paramount. Many companies discover breakthrough employees yet let them slip through the cracks to competitors. Although uncommon, the breakthrough employee is not extinct or even rare. But like the value of an uncut diamond, someone has to see the potential!

Jack D. Deal

People Skills

Jack D. Deal

When owners and managers listen to me conduct an interview they are often impressed. They think I’ve got all these tricks, techniques and shortcuts to finding out what people think. When they ask me how I do it I usually answer something about doing thousands of interviews and people skills.

Few things are as important in business as people skills. Lack of people skills can cause a good business to flounder and never get off the ground. Strength in people skills can give a small market player a big market potential. People skills are sometimes thought of as the ability to get people to do what you want them to do. This is simply manipulation. Manipulation worked pretty well in the early days of the industrial revolution when employees used their bodies more than their brains. It was a simpler time when customers were less sophisticated and employees less demanding.

Business is usually a series of human contacts. Those that are skilled at human contact often get better results than those that are not. Notice the distinction in getting results and manipulating results. As the human animal evolves to a higher level of social being so too must those that deal with humans on a business basis. Dinosaurs always go extinct.

I first became truly aware of people skills in my travelling days. I usually traveled alone and as a consequence I was ‘forced’ to meet new people in new lands with sometimes a new language. After a time I began to develop a ‘traveler’s profile’: a profile of those that had traveled, often alone, that had a perception and a experience level that others did not. It was as though the travel experience could be seen in their personality.

Then when I entered social work and counseling it became apparent that some of my colleagues and coworkers possessed highly developed people skills. They seemed to be able to ‘read’ people with the greatest of ease – almost as second nature. They had the ability to speak with someone for several minutes and come away with a very accurate impression of that individual. Yet they were not psychoanalysts or psychologists. Professional ‘mind people’ may take years to gain understanding of a psyche.

How did these non-professionals do it? Were they born with this aptitude or did they develop this skill? Why did some of my most intelligent colleagues have the least developed people skills?

To get some answers I began to play a game that I still continue today. In a crowd – it doesn’t matter where – I would see individuals and guess what they were like without speaking to them. I would notice mannerisms, expressions, how they related to others around them and so on. As my skills sharpened I began to look at people skills in greater depth. Some keys that I found were:

1. Interest. Those with highly developed people skills are interested in people.
2. Curiosity. To develop people skills one has to pursue the human animal in its habitat. That means finding out why people perceive and act the way they do. This is easier than it sounds – I get bored thinking too much about myself.
3. Objectivity. My travels taught me the ‘simplest’ person can come up with the greatest insight. We all take our perceptions and prejudices to the dance – those that have highly developed people skills recognize their weaknesses and check them at the door. (Mine are beautiful young women who feel the world owes them for being so beautiful and arrogant men that have nothing to be arrogant about.)
4. Practice. Like any skill people skills can be sharpened. This means working and living with high human contact.
5. Observant. The nuances of the human psyche are many. In a one-hour interview with thousands of spoken words there may be one or two key phrases. Key phrases and expressions often provide a window to the individual. Those that aren’t looking, don’t notice or are lazy do not pick up the subtleties.
6. Transposition. Those that have great people skills can put themselves in others’ shoes. The ability to look through someone else’s eyes is pivotal. This is sometimes called understanding.
7. General knowledge. Those with people skills know a lot about what humans do and experience. This enables them to relate to people on many different levels. This ability extends to being able to relate to many different types of people.
8. Focus. This involves listening, watching and taking in all the cues we humans are capable of giving out.
9. Awareness of differences and similarities. It seems the more we are alike the more different we are. Or vice-versa?
10. Ambiguity is part of the human condition and those with people skills understand this. People are not all black and white. There are many shaded areas and to understand humans is to understand the shades of perception. Those with developed people skills do not attempt to ‘force’ people into well-defined categories.
11. The Big Picture. To really understand a person we must look at their experiences over a lifetime. Cause and effect is not always easily discernible – the skilled people person looks at patterns over a lifetime.

It is generally assumed that people skills beyond courtesy and politeness cannot be taught. This is only partially true. People skills cannot be taught quickly. People skills must be honed over many, many years. Experience, focus and interest are three key dynamics. As more business processes like technology become standardized the prediction is that people skills will play an even larger role in tomorrow’s business environment. Those businesses that demonstrate a high level of people skills will have a definite competitive advantage.

Jack D. Deal

Interviewer Perception and the Employment Interview

I recently interviewed on radio a high tech human resources guru from

Silicon Valley

. During one segment of the show we had been talking about appropriate dress for a high tech job position. At one of the commercial breaks he mentioned he had done recruiting at a small high tech company that had adopted 'grunge' as its corporate identity. He had interviewees that had torn clothing, matted hair and no shoes.

It was a strange set of interviews, he confided, but for better or worse the company had set the standard. A suit and tie were definitely not appropriate. Later in the show we discussed in more detail what sorts of things were appropriate.

Having been involved in thousands of interviews I thought I had seen it all: alcohol, facial tattoos, free use of obscenities, etc. Still, the question of an interviewer's perception is an interesting one so I began to jot down a few notes.

The perceptual experts tell us we have 6 seconds to make a first impression. That is the visual side of perception. Personal hygiene, with the possible exception of some high tech grungers, strikes me first. If hair is dirty, clothes unkempt and shoes soiled then the perception, mine included, is that the individual does not take care of himself or herself. If they can't take care of themselves when going to an interview -- what will they do when hired? What does it say about an interviewee if they do not care about personal appearance?

Beyond the physical, I think we get a more personal picture in the first two minutes of an interview. These are often awkward moments 'hi, how are you, thanks for coming, good to see you', etc. These initial moments are a good indicator of an individual's behavior when dealing with the unknown and determining their level of people skills. This initial chit-chat also sets the stage for the rest of the interview.

In the

United States

, we shake hands, especially in a business context.  If I get a weak touch, strongman grip, or vertical yanking then I will perceive the individual tends to the extreme. I may be wrong, but for the applicant the interviewer's perception is reality.

I usually begin by asking the applicant to give me a thumbnail sketch of their skills and abilities. Most qualified applicants can usually give a synopsis in a minute or two. This is not a difficult question but it does require a variety of skills to pull it off. If the applicant cannot state what they can do then the implication is they cannot do anything. Obviously this may be true with some applicants and not with others. But perception is perception.

Gradually I get around to what they are looking for. Amazingly, some answer they do not know. If they appear truthful, a 'don't know' response can be seen as being honest. Most of the time, it implies the applicant has no ambition or has not thought very much. Here reality creates the perception and it's a negative.

What I normally want to hear is they are looking for an opportunity and challenge. This means that at some point the applicant will have 'smoke coming out of their smokestack'. This is an indicator of ambition, drive, work ethic, etc. If they are looking for security and stability and no smoke I often perceive they are in it just for the paycheck.

I let the applicant do the talking and I just ask a series of questions. Near the end of the interview I usually ask them if they have any questions about the company. Amazingly again, many applicants say no, even when they know virtually nothing about their potential future employer! What I perceive is a good response is one or two insightful questions. Going into a long series of intricate questions is just as bad as not having any questions at all.

There are several areas that send flags up at different points in the interview. If they jump right on salary and benefits I know they are more interested in what the company can do for them then what they can do for the company. If they speak poorly about their past employers then I know they would probably do the same with my company. If they tell me secrets or confidential information about their past employers, I know they will do the same to me. The best predictor of future behavior is past behavior.

I am used to applicants being nervous but experienced interviewers can get applicants to relax. The sole purpose of the interview is to find out if the applicant will be appropriate for the company. This seems too obvious! Yet many applicants do not understand this simple concept. We have a very short period of time to determine if the applicant is appropriate to become 'one of our family'. And why would we ever hire an obvious problem?

Those of us that conduct interviews are people too. We have our perceptions: the good, bad and ugly.

The difference is we decide who gets hired.

How to Develop a Marketing Plan to Recruit Employees

Jack D. Deal

Your company can grow and prosper with the right employees without spending a ton on recruiting costs. To do this, you'll need a Recruitment Plan -- just like a marketing plan--but this is marketing to potential employees! The first step in developing and using a Recruitment Plan is to target your market (applicants). Ask and record the answers (involve as many of your current employees as possible to get the best results) to the following questions:

• What are our company/department objectives for the year? This is your mission statement or a paraphrase of it.
• What makes us attractive to potential employees? Ask your employees the following questions to stimulate the discussion: "Why would someone want to work here?"; "Why did you come to work here?"; "Why do you stay?"
• Who are our potential employees? Based on all you now know about the employees you need-- are they new to the workforce, retired, students, veterans, people with disabilities, teachers, salespeople, accountants? Think about what walks of life your successful employees have come from.

Once you identify who your potential employees are, ask:

• Where would we find them?
• What do the employees we need value and need? Ask your current employees what's important to them about their position and what is important to them about working for your company. It's likely to be the same things that'll be important to the employees you're seeking to hire.
• What are 10 benefits to them of working with us? When your employees talk about "work" with potential employees, they should have an inventory of things to discuss beyond whether they like it or not.
• Who is our competition for the kind of employees we need? You have competition from companies who have proactive employee recruiting programs. Because everyone should be involved in recruiting new employees, all of your existing employees should know who the competition is and what they do well to attract employees. Learn from your competition.

REMEMBER: to grow your company and be successful, you need to seek the employees you need all the time, not just when you have an opening!

Jack D. Deal

When In Doubt, Side With Skill...

We humans are creatures of habit. That is why 90% of all businesses are not growing or improving. The obvious conclusion is that if we get out of our habits we also get out of the 90% and get into the 10%. Skill is one of the ways we can accomplish this.

I am prejudiced, biased and narrow-minded when it comes to skill. Nothing can replace it. Drive, ambition, experience, motivation, and all the other positive attributes cannot replace skill. These positive human traits can help reduce the effects of no skills but they cannot replace skill.   

I like a little broader definition of skill -- skill is the set of knowledge and abilities that produce a desired result. The results are the critical point. Skill is useless unless it brings results.

Here are some key points when considering the skill level in your company:

1. Sort out the differences between skill and work ethic. Work ethic is the desire. Skill is the result.
2. Skill might be cheaper. Supervision and management costs may offset any perceived labor savings. Look first to production and performance levels and work backward to estimate actual costs.
3. Skill produces higher quality. This means fewer rejects, comebacks and dissatisfied customers.
4. When the skilled supervise the unskilled, the skilled production level drops. This can sometimes make a substantial difference.
5. The skilled often prefer not to work with the unskilled. The skilled prefer to work with peers so they can stay sharp and continually learn.
6. Skill allows for the possibilities of providing different or improved value to your customers or clients. Skill promotes diversification and diversification can bring additional revenue streams.
7. The skilled feel they often are wasting their potential. This can make them very unhappy. They are most unhappy when feeling they are in a dead end position and that management does not care. No one cares. Except for the competitor that sees this type of employee as a breakthrough employee and strives to create opportunities to attract and keep such an employee.
8. Skilled employees project a more competent and positive image in the marketplace.
9. Skilled employees create fewer internal disruptions. The skilled find disruptions both annoying, distracting and costly. Continual disruptions eventually drive away the skilled.
10. Skill allows increased capacity without corresponding overhead. Skill should usually be viewed as a variable cost.
11. The skilled are the only employees that will realistically reach high levels of performance.
12. Assessing skill level should be a weekly process. Each employee should be tracked and the business' needs assessed. The best question I have found is "What does the company really need?"
13. Reward skill with compensation, benefits and status. I find it very easy to look skill in the eye and say 'thank you.' And mean it from the heart.
14. Skilled employees love to be appreciated. Yes you have to do all the compensation/benefits things to stay competitive. Skilled employees appreciate and admire those that acknowledge their value.
15. Skilled employees did not get that way by chance. They search out ways to learn and improve. In today's business environment skilled employees are demanding learning opportunities. Companies that ignore this point will attract less skilled employees and become less competitive. Companies that understand the learning/skill relationship will be the profitable companies of the next century.
16. The value of skill in the workplace is increasing. Skill and knowledge have all but replaced bulk, strength and volume. Very few industries will be able to ignore skill in the workplace. Skill as a business dynamic will continue to be an increasingly competitive dynamic, a major competitive distinction and more pervasive throughout the organization.

Value follows skill and revenue streams follow value. Skill is the critical component in the value formula. If all things are equal, side with skill.

When Those We Trust Disappoint Us

Recently I needed some work done by a colleague of mine. I had done a lot of pro bono or free work for him and now I needed him to do some work for me. When the job was completed he presented me with a full retail bill. The work he did was what he had promised -- but nothing more. He had returned my favors by making me pay full price. After paying I began to wonder -- was I missing something here?

About a week later another colleague asked me to do some pro bono work. As I had some extra time, I did it. Several days later he called me saying he wanted to refer one of his clients to me. His client was a computer programming company that had management issues and he did not feel competent to do the work since he was a systems integrator. He also stated he wanted a percentage of my fee as compensation. After our conversation I began to wonder -- was I missing something here?

These two individuals are not dummies. They both are intelligent and educated. They both run moderately successful businesses. And maybe that's the key -- moderately successful. They must treat their customers, employees and vendors just like they treated me -- squeezing down to the last nickel. Perhaps they viewed me as super successful since I tend to not get worked up over relatively small amounts of money. I also noticed that these two individuals had something in common: they worry all the time.

They worry if they're busy or if they're slow. They worry if the vendors are charging too much or too little. They worry if it's tax time or if it's not. They worry that each nickel in assets they own is threatened. They even worry if they aren't worried!

This oddity struck me and it kept my focus when I met them next. With each they were clenching their teeth, telling me how busy yet how bad things were, worried that they were not being as successful as they really should be. Their smiles were forced and the voices strained.

Then it all began to make sense. They did not see that by taking advantage of me I might not be as willing to help them the next time they had their hand out. Not only that, if they were to get in a real bind -- which they will -- they may not be able to count on my ability to tell them what they should do. Or help them at all!

These two are not evil or even bad. They are actually decent people that have somehow lost control of that which made them decent. They have traded their basic understanding of business dynamics for a transitory figure that temporarily pops up under the net profit column. Their philosophy has become simple if not simplistic -- If it does not bring swift and significant gain it really does not matter.

And for business people that is sad. We who do not have the security of getting a hand out must rely on the strength of the relationships we can forge in the dog-eat-dog world of unbridled competition. We love the hunt but we know we can so easily be hunted as well. Perhaps it is just such a fear that makes my two colleagues oblivious to decency.

So now I take deep breath when I think of these two. I hope they find some degree of happiness in the midst of all their anxiety. If the ulcers don't get them then the coronaries will.

I am proud to say that despite it all I really bear no ongoing resentment. Fortunately they need me a lot more than I need them. Thankfully the cost-benefit imbalance was not that significant and in a real sense I certainly did get my money's worth. These are two individuals that I might have been convinced to help out in a larger context. Learning bad lessons can certainly be cost effective in the long run by avoiding the bigger mistakes.

And I truly hope they are happy. Hopefully the tag of 'moderately successful' will not be too painful. As hard as they work and as much as they worry they deserve all the happiness and success they can get!   Just not from me...

When Should You Not Rehire A Skilled Employee?

It should be clear that employees make or break a business. In most businesses recruiting and keeping good employees determines the business' success. In the process of building a solid staff inevitably skilled employees threaten to quit or actually do quit. It is these skilled employees we are examining here. The employees you fire for incompetence, bad work ethic, poor performance are not the focus here: you simply get rid of a bad employee and do not rehire them.

But skilled employees that deliver value, sometimes great value, are another matter. The correct business decision becomes more vague and difficult. Sometimes it is very appropriate to rehire an employee; for example, returning from school or from a job where they increased skills.  In the points that follow remember the topic is situational -- what you should do depends on the situation and circumstances you face.

The issues here are about employees that deliver value but also deliver problems. The following are some key points in considering how to approach this issue:

1. If an employee quits, make certain you get a 'quit form'. Even if you don't have this form in your company's word processor you can get a handwritten statement. Make certain you get name, date and last day. Otherwise the employee can state they did not quit, had asked for a leave of absence, etc., and demand their old job back. You will likely get their old problems back too.
2. Notice is not required by law unless it is stipulated in a contract. (Beware of employees that have a history of not giving notice.)
3. After an employee leaves and you have taken care of paychecks, vacation pay, credit cards, pagers, etc., make an immediate determination if you want to rehire them again. Time often distorts perception so you will not want to make a knee-jerk decision when the time comes. Assume they will walk in the next day and want their old job back. Do not be caught off guard!
4. If any person, including an ex-employee, wants to apply for a position with your company you cannot deny them that right. This is a constitutional right protected by every court in the land. Deny them the chance to apply and you will soon hear from their lawyer. Allowing them the chance to reapply and rehiring them are two very different things. Have an ex-employee fill out an application like anyone else. Tell them you will review the application. You must keep all applications on file for one year.
5. Many skilled workers have 'attitudes' or in some way do not fit in with the rest of the team. You cannot deny employment solely based on attitude since attitude cannot be accurately defined. Be very careful of what you do and don't say. Assess the situation. If the value does not far outweigh the problems then do not reconsider them for rehire. Simply state that the application is on file for future consideration.
6. Do not believe that people can make miraculous improvements. Maybe that happens in Hollywood or the tabloids but it seldom does in the real world. If a drunken ex-employee tells you they have been sober for 6 weeks congratulate but do not believe they are cured. Humans are very slow to change -- especially the big changes.
7. Consider a rehire if they might be appropriate part-time or on-call. This way the business can use their skills only when needed and avoid high fixed labor costs.
8. Consider a conditional rehire. You can set the conditions. For example, you must be here every day at 8:00 or do not bother coming in. Get them to agree to the conditions. Just make certain other equal job classifications have the same requirements or the conditions can be construed as discrimination.
9. Pay, benefits, etc should align with the policies in your personnel manual. You are not required to bridge benefits unless your manual requires it. In my personal view employees that jump ship for greener pastures should 're-earn' their benefits. This makes other employees think twice as well. If there are no consequences for leaving and returning it is your bompany's fault.
10. Consult your attorney if you are not sure what to do. Remember that attorneys are very good at legalities and but often not so good at management.

There are obviously no set rules for an employee rehire but by focussing on the issues you can help or at least not hurt your business. I have seen employees leave and come back with great success. I have also seen a problem employee leave, be rehired and ultimately cause more damage.

If you ever use your good judgement and good decision-making skills, use them when rehiring a skilled employee!