Posted tagged ‘training’

The Real Risk in Risk Management

November 25, 2009

It’s not uncommon to find businesses all over this country talking about the impact the current economic environment is having on their operations.

Just yesterday, I was speaking with my good friend, John Fodera. John is a partner in Eisner, LLP’s audit and risk management services group. He spends his days discovering how to reduce risk and streamline operations, while making sure that his clients remain compliant with regulations a diverse as labor law to SEC requirements. Not surprisingly, he hears about the impact of the recession all of the time.

As our discussion progressed, it became apparent that John brings some fresh thinking to these conversations. One of the thoughts that we shared is that cutting staff is not always the best way to deal with a slowdown in business.

John explained that the “knee-jerk” reaction is always to reduce costs and sometimes this is truly appropriate. But, like any other challenge, there are always opportunities.

When companies are concerned about business, they are more apt to rethink the way that they approach the marketplace. Leadership will also find that staff will be more open to trying new approaches. This is typical when the risk of remaining with the status quo exceeds the risk of trying new things.

Reaching out to existing customers and discovering and sometimes re-discovering what is valued in one’s offerings – and what isn’t – can change what is being sold and how it is being presented to other potential clients.

When something is not valued, often, the cost associated with adding and delivering that capability can be stripped out. Suddenly, the product may actually be more valuable because a level of complexity is removed and the cost associated with developing, selling, delivering it and training others has been reduced. Out of such discussions, many competitive advantages and opportunities are born.

And in an age where technology is changing as rapidly as it is, an economic downturn can provide the impetus to create new ways to produce meaningful value.

As John would probably tell you, the real risk is when you are not rethinking your business.  But don’t take his word for it.

Just ask the people running the newspaper industry and the postal service.

Rethinking Overseas Technical Support

July 15, 2009

After nearly 25 years as a PC, I became a Mac late last month.

I didn’t make the switch so I could grow my hair long – bedsides it’s probably too late for that – and I discarded my tie in favor of open collars long ago. The Mac just seemed easier and besides, my son, Eli, was lobbying me to switch for quite some time.

And while the adjustment has been pretty stress free, there are some moments…which brings us to tonight’s tale.

Perhaps one of the most maligned groups in the IT world is the overseas tech support team. People say that those from across the globe may be more difficult to understand and culturally, are not in tune with an American’s way of thinking and approaching an issue. However, if my most recent experience is any indication, it may be time to reconsider this perspective.

My friend, Alan, at Microsoft tells me that the technical support world is changing. The shift is to more online chat – and less telephone conversation. There are a lot of reasons for this. Online chat allows supervisors to more quickly review calls for quality and the transcripts of these calls are much simpler to access.

Anyway, back to our story.

I had purchased an application for offline storage called Mozy. I had heard good things about it and one of my colleagues at a client was a strong proponent.

One of the differences in the Mac world is that when you click on an application icon, sometimes the only thing that opens is the thin ribbon for the application on top of the screen. In the case of Mozy, it also opens a screen to show you what it is backing up. My previous orientations with PCs had taught me that the screen that opens is indeed the application itself…so I never noticed the ribbon.

This led me to believe that the application’s client had never loaded and so I could never set preferences or schedule the backups. Naturally, I made a call to technical support.

I’m not writing about the fact that the two people that I worked with were courteous or knowledgeable or patient. What impressed me was that I received personalized, professional e-mails with new suggestions every day. It felt like these two professionals were focused solely on my issue – and that they were more committed to its resolution than I was.

It took a little more than a week for me to realize that the “problem” was likely not a problem and simply my unfamiliarity with the Mac interface. And while I learn new things about Apple each day, the most important thing that I may have learned is that international boundaries are likely not what separates quality from mediocrity. More appropriately, it is corporate culture, professional training, personal commitment, outstanding character traits and appropriate reward systems that are the differentiators.

So Sandeep and Mohammed, here is a shout out for an exceptional job. Well done – and thanks for this important reminder and lesson.

Building Your Team

February 8, 2009

Much appropriate discussion has taken place regarding President Obama’s vetting process in selecting his team. It remains unclear whether his appointees witheld information or that the process was flawed. For the most part, though, the people that he has chosen have been hailed as competent choices.

In implementing every strategy, finding the right people is essential. It is equally essential to know who should be part of the team and who should go. People need to be moved into the right position without doing too much damage to short-term performance. Beyond that, there must be goals, incentives, and performance measures that propel people in the right direction.

Here are some common traps that you should avoid.

  • Keeping the existing team too long. By the end of the 90 day period, the leader should have a clear understanding of his team and their individual capabilities. By the end of six months, it is appropriate to communicate your proposed personnel changes to HR and your boss. In certain STaRS situations such as a turnaround, these decisions may be required sooner.
  • Fixing the airplane in mid-flight. It is very dangerous to repair an airplane in mid-flight. Develop options such as hiring additional people and allowing them time to learn the ropes, and/or explore whether people down the command chain can take over.
  • Losing good people. When you shake the tree, good people can fall out too. Always look for ways to signal to top performers that you recognize their capabilities and want them to remain.
  • Undertaking team building before the core team is in place. Premature team building exercises may strengthen bonds between staff that will ultimately be displaced. This does not mean that you should not meet as a group, however.
  • Making implementation-dependent decisions too early. Weigh the benefits of moving quickly on major initiatives against the lost opportunity of gaining buy-in from people who will be brought on board later.
  • Trying to do it all yourself. Remember, that restructuring a team involves emotional, legal, and company policy complications. Do not take this on by yourself. A solid HR person is indispensable.

To assess your existing team, establish criteria. These criteria may include competence, planning ahead and risk mitigation capabilities, judgment, professionalism, energy, focus, relationships, and trust. Match these criteria against the circumstances and requirements of the job and evaluate them accordingly.

Regardless of all of the analysis or perhaps, even as a result of it, we will discover that there are certain performers who are not in the right job or simply do not belong in the organization. These are people who are not achieving their performance goals or are failing to exercise leadership effectively. An effective leader must address this situation as well.

Failure to do so exhibits false kindness. While it may be easier to leave these professionals in their roles, doing so harms the leader, other staff, and the whole company. Additionally, it sends a message that non-performance is acceptable in the company.

An employee may not be effective in the job because of any of six reasons. The person lacks the ability, was improperly trained or oriented, has the wrong attitude, demonstrates the wrong behaviors, lacks the required skills, or lacks experience.

To remedy these situations, there are four options. You can train the employee, coach him or her, shift the person to another position, or let the person go. There is a way to determine what the appropriate remedy for each situation is.

  • If it is a matter of skills, training is the appropriate remedy.
  • Attitude related issues may be remedied by discovering what is causing the difficulty, and then addressing the issue while coaching and motivating the employee.
  • Correcting behavioral issues requires coaching and patience. Behaviors shift over time. In order for the supervisor to determine whether that amount of effort should be expended, s/he must determine whether the employee adds significant value in other areas.
  • If the person lacks sufficient experience, it may be possible to shift the employee to a position where her/his experience level is appropriate.
  • If the person lacks the ability, that individual should be let go. No amount of training, coaching, or shifting will allow him or her to make a meaningful contribution. If there is a need to let the person go, do so respectfully and in accordance with the management philosophy that you wish to inculcate. Direct reports will form a lasting impression based on how this part of the job is managed.

Strategy is most effectively implemented when there is a compensation and reward system designed to focus people. Typically, strategic goals will be distributed among functional departments and then further distributed among each department’s employees as employee goals. Performance is encouraged through effective incentives and clear criteria for measuring performance.

A blend of push and pull tools may be employed to reach strategic goals. Push tools, such as compensation plans, performance measurement systems, annual budgets, and the like motivate people through authority, loyalty, fear, and the expectation of rewards for productive work. Pull Tools, such as a compelling vision, motivate people by inspiring them and enrolling them in a new future. Methodical and risk aversive employees are more likely motivated by push tools while high energy performers respond better to pull tools. It is important that an effective mix be developed that rewards collective (where interdependent work is most important) and individual (where independent work is most important) performance.

How Buyers Buy Professional Services

January 8, 2009

The editors of RainToday.com, an excellent site for those who market and sell professional services, recently released their 2009 benchmark study on how clients buy professional services. In their nine minute podcast, they talked about the top 5 ways buyers find their professional service providers.

The research involved asking 200 buyers of professional services (law, accounting, consulting, technology, training, among a whole range of services). The sizes of the buying firms were small to a billion dollars in revenue. The survey identified 27 different methods by which buyers choose professional services.

Here are the top five:

(1)   Referrals from colleagues (79% of respondents)

(2)   Referrals from other service providers (75%)

(3)   Personal recognition or awareness of the buyer / brand / reputation (73%)

(4)   In person seminars (66%)

(5)   Presentation at a conference

Here’s what the findings mean to me.

(1)   Your own client base is your greatest source of leads. It tells me that I’d better have the kind of support that keeps them happy and I’d better find opportunities to keep talking with them.

(2)   People in the industry talk. Sounds like it would be prudent to look after our professional relationships

(3)   Having a presence is important and being known is very important. This means that speaking engagements, writing articles and sharing and helping others is critical toward developing a prominent brand.

If you’d like some unique ideas about seminars, drop me a note at david_blumenthal@msn.com and we’ll set aside some time to talk about some unusual and really effective seminar development approaches taht will generate immediate opportunities.