| |
| |
|
Management Information |
|
|
|
People Are Our Most Important Asset!
How many times have you heard or uttered this phrase in the last 5 years or so. As a "reformed accountant" this phrase makes me cringe more than any other business euphemism being espoused today. What exactly is an asset? The dictionary defines an asset as "A valuable item that is owned". From an accounting standpoint an asset might be a desk, building, computer, or a truck. The one thing almost all assets have in common is that they are depreciated, or used up by the company until they are worthless. Then they are discarded. Now you can understand why that phrase makes me cringe. Certainly there are exceptions to the "use and discard" rule. Land, securities, or even artwork are examples of assets that appreciate in value and are worth more over time than they were when they were first acquired. But is that how you are treating your employees? Many companies today seem to be using employees up. Employees are hired, placed in service, perform at maximum capacity for as long as possible, and then when they are no longer viable, they are discarded and replaced. Just like a disposable asset. Oddly enough, it seems to me that there really is a correlation between how companies treat their equipment and how they treat their employees. When times are going well, companies spend money on their equipment. They run routine maintenance; they keep the equipment well oiled; they buy upgrades and add-ons; and they do their best to ensure that the equipment is in the best working order possible. Then market conditions change and the company suddenly finds itself in more difficult times. What do they do? They try to control expenses by reducing or eliminating any expense that does not show an immediate payback. Instead of getting preventive maintenance on their equipment every 30 days, it is stretched out to 90 days. Instead of upgrading the equipment with new add-ons companies try to make due without the enhancements. Instead of keeping the equipment well oiled, they cut the staff that performed the job, just to save the dollars. The result of these cost cutting initiatives is fairly clear as well. In the short term the expenses are reduced and profits preserved. But after a few months, the cost containment process begins to show it's true impact as equipment shows wear and tear, breaks down, or does not have the capability to perform the job as now required. Similarly with employees we see the same pattern. When times are good companies spend money to hire the right employees through careful screening processes. They spend money to train employees on both technical and soft skills to improve their performance. And they reward employee performance through pay increases and fringe benefits. When the business gets more difficult the cutting starts with training, followed quickly by pay and benefits, and eventually manpower itself. In the short term, profits are preserved, but after a few months, the employees find themselves without training on new products. Process enhancements that would improve long-term productivity are set aside due to the short term costs of implementation. Companies begin to work their employees harder, without the grease and preventive maintenance required to ensure their productivity. Managers push harder for production with less staff. More coercion is used because managers know that employees have few choices but to put up with the demands being made on them. Bad bosses use bad economic conditions as an excuse to treat their people shabbily. Just like with equipment, the costs are contained in the short term at the expense of the long-term value of the "asset". Employees are used up and then discarded just like equipment that was not properly maintained. And who suffers the most in the long term from this shortsighted policy? Oddly enough, it's not the employees that suffer the most, but the company itself. Why? Because when the economy turns again, employees remember how they were treated. They remember the lack of compassion, understanding, and leadership from their company. They quickly begin to focus their efforts on new jobs with a new company, leaving the old indignities behind. Indeed, the company really does lose its most important assets -its' people. So, what is the answer, you ask? How does a leadership team maintain its most important asset when finances are tough? The answer lies in keeping your management and leadership focused on their people. And by providing leadership training for the team that includes how to maintain morale and provide inspirational leadership without spending a lot of dollars. If you really expect your people to be your most important asset, then it's important to invest in their future, by investing in them and in the people that lead them. Spend those dollars wisely and watch the payback as your most important assets, your people, grow in value. David Meyer, owner of Coaching for Tomorrow, has more than 25 years of management and leadership experience, having worked for companies such as Nobil Shoes, McDonough, Allied Stores, MCI and Nextel Communications. His mantra, "You Win With People" is based on the deep-seated belief that hiring, developing, and promoting the right people can lead to organizational and financial success. As a management and leadership coach, David works to instill that same passion in his clients by helping them understand the importance of strong leadership, strong teamwork, and strong players. David has a Bachelor's in Business Administration from Elmhurst College and has been certified by both ACTION International as a Business Coach and the Coach Training Alliance. He also has received his CTM from Toastmasters. He is an Officer in the Denver Coach Federation and a facilitator/trainer for the Coach Training Alliance and ACTION International of Colorado. He is also a co-author of the book Creating Workplace Community: Motivation. Married with two adult daughters, David is active in his local Kiwanis club and Crossroads Community Church. He enjoys reading, golf, scuba diving, and Civil War reenacting. www.coachingfortomorrow.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Problem-Solving Success Tip: Test Your Assumptions About Everything Test your assumptions about everything.Assumptions have a way of creeping into all parts of a problem-solving project. The High Cost of Employee Turnover Among Project Managers Imagine for a moment this scenario from a frustrated Senior Manager of a large pharmaceutical organization: "Our organization has experienced a large turnover among project managers in the past year. This creates problems providing ongoing quality and service to our stakeholders. Change Management: Avoid Havoc In Very Uncertain Times Escalating gas prices.. Steps in Using the Critical Incident Technique STEPS IN USING THE CRITICAL INCIDENT TECHNIQUE:1) The incident. Read, review, or assume roles. Forget The Sandwich Technique Do you remember being told to use the "sandwich" technique when you needed to reprimand someone? Let me give you an example:"Fred, I'm really pleased with how you've been progressing since you joined us and you're doing a great job. However you're not getting your reports in on time and we're missing deadlines. Its All In The Systems Have you ever noticed french fries taste the same at every McDonald's? The same can be said for Subway and its Italian BMT. How do these fast food icons replicate themselves at nearly 40,000 locations when some eateries struggle to get it right in a single restaurant? The answer is simple: it's all in the systems. How to Meet Quality Standards with ISO 9001 In today's hectic business environment, it is vital that we are all on the same page, right? But how do we know if we meet those standards? Business owners and executives can avoid the uncertainty, and that's where ISO 9001 certification comes in.Standardizing Quality SystemsThe ISO, or International Organization for Standardization, was established in 1947 to develop international standards for everything from electronics to management systems. Culture Management and Creativity Many concepts in the fields of managing creativity are very much applicable to culture management in general. The same concepts that foster creativity and innovation also maximise human capital potential, increase productivity, reduce costs and maintain competitive advantage etc. MANAGING CRISIS; when you're too good at it When you are acclaimed for excellence during times of crisis you may not feel so good in a non-crisis environment. You may not shine so bright, perform so well, be quite so acclaimed. Budgets that Damage - The Downsides of Making the Numbers In my organisational career, I had budgets from the age of 22 to 47. I lived and breathed them and many times, budgets, the gospel that they were, caused havoc, albeit within the corporate retailer framework that I worked. Motor Vehicle Policy and Your Employee Risks It is becoming more common for employers to require employees to use their personnel motor vehicles for business use. Reimbursement for business use is commonly by way of a kilometre/mileage allowance or a general motor vehicle allowance for the year. Managing the Human Resource Project We obtain strategic results by aligning HR mission, vision and values. The following overview highlights a macro approach to project management. How to Enhance Quality in Your Business Every business must strive to provide quality products and services to customers. To achieve that objective the company must draw well thought out policies and procedures to ensure 100% achievement of the targets. Behavioral Interview Questions You Can Use Monday Morning If past behavior is the best way to determine future behavior then behavioral interviewing is a requirement for anyone serious about hiring top talent. This skill isn't something that should be taken lightly, but everyone's got to start somewhere. I Said Pareto Chart? Not Potato Chart! Does this sound familiar? You were hired for the new management position. You were tasked to turn the numbers around. Business Opportunity - Leverage Your Employees! As a business asset, they don't sit well on the P&L statement. They aren't valuable like a piece of machinery, or an office block. Interviewing Applicants Can Be Hazardous to Your Wealth 1st Fact: Interviewing applicants is the most common way companies decide whom to hire.2nd Fact: Research proves most interviewers do lousy at predicting if an applicant will succeed - or flop - if hired. Allowing Employees Responsibility Merely assigning a task with detailed instructions is not effective delegation. An employee cannot grow without the freedom to make decisions on how the job should be done. Successful Business Decision Making Some people make decisions without any difficulty, while others struggle. Are you having trouble making a decision? Do you feel overwhelmed by all the choices you have, and aren't sure how to pick just one? No matter how big or small those decisions might be, I can teach you how to strategically:-- Define your decision and come up with alternatives-- Determine what criteria you'll need to help you make the decision-- Make the decision"If we wait for the moment when everything, absolutely everything is ready, we shall never begin. Budgets! Budgets! There I've said it. For some the most hated and feared word in business.
|
| Article List | Index | Site Map |
|
All logos, trademarks and articles on this site are property and copyright of their respective owner(s).
The comments are property of their posters, all the rest is Copyright © 2006 CanadaSEEK.com - All Rights Reserved. |
