April 4, 2011
By Wayne Mates
What are human resources? Is it a necessary department and how should it operate? How has it evolved into the evil empire it is today?
In the not too distant past, human resources did not exist. There was a department called Personnel. The office of Personnel was responsible for hiring and paying employees. It also had the responsibility of tracking benefits, pensions and not much else. Two historic pieces of legislation changed all this. The first was the Civil Rights Act of 1964 that created the US Equal Employment Opportunity Commission (link). The second was the Americans with Disabilities Act which was passed in 1990.
When you cease to dream you cease to live. ~Malcolm Forbes
As with much federal legislation, bureaucracies were created to promulgate regulations and enforce them. Included in this are inspections of various business records, processes and procedures to ensure that all businesses follow the law. The agencies also handle complaints and have the authority to fine companies that are not in compliance. All that sounds good. The government keeps employees safe from discrimination and workers can rest assured that their companies are following the laws. Theory is a wonderful thing until it bumps into reality.
And this is where human resources (HR) now come in. Companies, in order to follow the law and protect themselves, created departments to create processes aligned with the laws and to ensure that companies operate in full compliance with the law. Unfortunately, this is where many companies fail. HR is tasked with protecting a company from its own failures by creating policies that will keep the company in compliance with the law. These policies are also designed to keep rogue managers from sabotaging the company by inadvertently or overtly breaking the law and causing employee lawsuits and fines from federal agencies.
Another area that HR is tasked with is handling employee complaints. The object is not to identify rogue managers and misbehavior as much as it is to show the company is working to provide solutions. In the process, they hope to avoid lawsuits by convincing the employee that the company has done everything it can to right a wrong. The unfortunate truth is that although a manager may get their hand slapped, they will find a way to get even with the employee that complained by making work life miserable. The employee will eventually quit or the manager will have “documented” employee “failures” and the employee will be fired.
Let’s look at terminology for a moment. Human resources, human capital. When I think of a resource, I think of commodity or parts or a building or money. I don’t think of people. The business class in America has reduced people to a resource to be used as they see fit to produce their product or service. When a resource has reached the end of its’ useful life it is removed from the process. In these terms, the companies are no longer looking at employees as people. Instead, they are a commodity to move around, assigned different duties and when no longer needed, terminated. People have become simply a tool of business and the people and real human side is left out of the equation. Can you imagine Malcolm Forbes putting labels on his employees calling them “Capitalist Tool”?
Is this right or wrong? I don’t think there are any simple answers to this question. As a country, we have eliminated many acts of discrimination. But, we have forced businesses into being defensive in their reaction to the authority of the government at a cost to our economy. That is an area I don’t have the expertise to address. Perhaps, this will start am open dialogue among experts.
Happy Entrepreneuring!!
Filed under Hiring and Managing People, News by on Apr 4th, 2011. Comment. 
April 11, 2011
This is a guest post by fellow entrepreneur Bob Reiss
I define bootstrapping as “pursuing success with limited resources and with the help of others.” By limited resources I mean a shortage of money or knowledge. Here are some tips and ideas to help solve these shortfalls for small and wannabe entrepreneurial business owners. These ideas are particularly apropos in today’s environment.
Barter
Barter, one of the world’s oldest forms of commerce, is thriving today because it allows companies to trade their products or services for other needed products or services with little or no cash involved. You can utilize your excess goods, manufacturing capacity or time to obtain needed things of every imaginable variety. Bartering can also help you reach and acquire new customers through satisfied trading partners that, if pleased, will buy again with cash and provide good word of mouth to others.
Most barter today is done through exchanges that match up the traders for a fee. You can learn more about the details and find a barter exchange near you by doing a simple online search or visiting the International Reciprocal Trade Association.
Free Consulting
SCORE is a government agency with the mission to provide resources and expertise to maximize the success of existing and emerging small businesses. All SCORE counselors are volunteers, mostly retired executives who want to give back. There is no charge, and everyone who calls gets an appointment. There are more than 370 chapters in the U.S. SCORE does not loan money, but it will advise you on how to get it. Visit the website to find your local office.
The Small Business Development Center is another government agency that basically does the same thing as SCORE but with paid employees and even more educational classes. There are more than 1,000 centers in the U.S. Like SCORE counseling, SBDC counseling is also free.
Mentors
Mentors are experienced, successful businesspeople who are willing to help entrepreneurs get started and grow at no charge. A good one can be the key to success for an emerging company. Mentors can be found in myriad places: family, former teachers, suppliers, the local Chamber of Commerce, people you admire, etc. If you find a good one, be sure always to keep him or her in the loop and say thank you.
Special Offers to Key Customers
It is difficult for small companies to sell to large customers in any environment. An effective way to overcome this challenge is to offer your target an exclusive: your product, a package, a design, a channel of distribution–something special and different from the competition. The exclusive can also be time-sensitive. In return, you can ask for distribution in all of the company’s outlets, free ads, better payment terms or any other goody important to you.
Suppliers
Almost every company needs reliable suppliers. They can contribute to the quality of your business with on-time delivery or innovation and solve some of your financial problems by giving you extended terms. Some suppliers may even be willing to invest in your company. The best suppliers can help make you more competitive and reliable. To gain supplier cooperation, treat suppliers fairly and pay all of their bills on time.
Publicity
Getting coverage about you, your company or your product in print, on TV, on radio or on the web can be more credible than a paid ad. You need not be an expert to get such media coverage. Remember that the writer’s job is to write, and they all need stories. Why not yours? Start by approaching your local media with interesting facts or anecdotes about yourself, your product or service and how you started the company. Writers usually prefer the passion of the company founder to a pitch from a professional publicist.
Outsourcing
Outsourcing can convert the fixed costs of full-time employees to the variable costs incurred only when you need them. This is a major cash-saving strategy that also can yield better quality and know-how as well as access in the case of sales reps. The myth about outsourcing is that you lose control. You may actually have more control because if a vendor doesn’t do a good job, you can just find another. You need not sacrifice control by outsourcing. Another myth is that outsourcing means sending work overseas. This does not have to be true. Anything not done in house is outsourced, whether you get it done down the street, in another state or in another country.
Building Trust
If you are trusted, customers will want to do business with you, employees will be motivated, and lenders and investors are more apt to give you money. You build trust by refusing to compromise on doing the right thing and conducting business ethically. Trust relentlessly pursued can pay great dividends.
Selling
Selling is “persuading someone to take an action favorable to all parties.” There is no selling gene. Selling is an acquired skill best honed with experience. Everyone in the company should be selling with the CEO being the most important seller. There is no cash outlay for selling except for travel. You can do it.
Your attitude is a crucial success factor, so keep your passion high. Don’t let fear of failure hold you back. Keep your ego under control, take care of yourself, rebound quickly from setbacks and always watch the cash.
Bob Reiss, is the author of Bootstrapping 101: Tips to Build Your Business with Limited Cash and Free Outside Help. To read more tips for small business success, entrepreneurs can follow his weekly blog. Bob has written a 22 page E-Guide to learn everything you ever wanted to know about Sales Reps. Click HERE for more details and to order your Free copy.
Bob Reiss has been involved in 16 start-ups, is a three-time INC 500 winner, a graduate of Columbia University and Harvard Business School, and the subject of two Harvard case studies. He is a frequent speaker at university entrepreneurial classes.
Read more: http://www.articlesbase.com/entrepreneurship-articles/bootstrapping-to-save-cash-a-concept-made-for-small-business-entrepreneurs-4541843.html#ixzz1JGYmiYpR
Under Creative Commons License: Attribution
Filed under News by on Apr 11th, 2011. Comment.
April 18, 2011
By Wayne Mates
Last July, I wrote a post about management styles. It focused on the styles managers use with their employees. Today, I am going to start exploring bad management and some of the ways managers alienate their staff. It certainly is not a complete list. There are many more ways, but this short list provides some insight into bad management. If you recognize yourself as having these symptoms, you need to learn to manage better. It is far easier for you to change your style than it is to constantly replace staff who have moved on because of your style. Let’s look at some behaviors you need to avoid.
• Asking for input, but disregarding it – Do you often ask, “What do you think?” without really caring what the answer is going to be? Is it like asking, “How are you?” Do you conduct feedback surveys? Do you set up project teams or committees to resolve issues? Do you do any or all of these and then ignore the response you receive and do things the way you want to in spite of getting feedback or solutions to problems?
If you do, your employees will start wondering, “why bother if the boss isn’t going to listen to me anyway?” Do you really understand how that over time paying lip service to your employees’ ideas and thoughts demoralizes them? After a few times of getting this treatment, your employees are going to start to disengage from you and your company.
• Micromanaging – This should be banned from the American workplace. Assuming that your employees have the appropriate, training, clear expectations for completing assignments, they should be allowed to complete them without your interference, constant nagging or asking of status reports. Very few people go to work each day with the attitude of “I am going to do a poor job!” Give your people the leeway to succeed or fail based upon their experience. Most people I know are going to raise their hand and ask for help if they are stumbling or not sure how to handle an issue or a problem. Quit looking over their shoulder!!
• Being directive – or being bossy. Do you walk into a room, someone’s office or pick up the phone and start issuing orders with unreasonable expectations? Do you disregard what people are currently working on to pull them off and assign them a task that may be more important without explaining the reason for it? Do you often say I want this completed by the end of the day or by noon or by the end of the week without giving thought to the actual time it might take to complete the project? Are you a little Napoleon flaunting your authority because you can? Just watch the turnover start happening as your employees begin looking for other work!!
• Failure to recognize a job well done – Your employee has completed an assignment and gone above and beyond to get it done. You look at their work and instead of complimenting them on a job well done, you just say, “Good, now I need you to work on this other task!” Or worse, you complain that they used the wrong font in the work and nitpick the little stuff. Get real and get a life. You will lose the respect of your staff very quickly this way.
“Sometimes I wonder whether the world is being run by smart people who are putting us on or by imbeciles who really mean it.” ~ Mark Twain
I have more and will share them with you in other posts. In the meantime, take a hard look at yourself if you see any of these shortcomings in yourself. Consider taking a course in effective management or positive reinforcement. Your staff will appreciate it and know you have their interests at heart.
Happy Entrepreneuring!!
Filed under Hiring and Managing People, News by on Apr 18th, 2011. 3 Comments.
April 25, 2011
by Wayne Mates
I have been asked numerous times over the past few months for a road map or blueprint to a successful start up. The map or blueprint is simple and done correctly can practically guarantee success. The execution is the hard part! Several months ago I published my road map. I am republishing it here. Over the next few months, I will cover several of these topics in more detail. Enjoy the original article titled:
6 Easy (??) Steps to Starting a Business
Since I posted the article last week about whether entrepreneurs can be trained, I’ve had a request to post what I think is essential to get a new enterprise off the ground. Early on I posted the 8 Pillars of a Profitable Business. It is relevant, but not the necessary steps to starting an entrepreneurial enterprise. So here we go; 6 steps to lead you to success.
1. Get a job!! Go to work and get experience. If you want to be successful go to work in the industry. You will gain valuable insight and experience. Spend a year or two or three learning everything you can on someone else’s money. Learn what is being done right and wrong. What would you do differently to set you apart from the competition? Why? Do you still want to be in this industry? Do you still want to go into business? Consider this a paid internship or being paid to gain inside information.
2. Develop Your Team! While you are learning figure out what skills you will need. If you don’t have them, who does? Talk to people whose skills can complement yours. Ask yourself what it will take to be successful in your startup. You can cultivate these relationships initially without revealing your plans. As you get closer to “go” day, share your ideas and see if they will join you.
3. Create a Team of Advisors!! You don’t have experience yet so know where you can turn for advice. Who will your mentors be? Select from different areas like sales, accounting, legal or marketing. These folks become your official or unofficial Board of Advisors. You can also tap SCORE, retired business owners that will help you.
4. Business Plan!! Shouldn’t this be first, you ask? Nope. After going through steps 1-3, you have the knowledge, expert advisors and team to refine your ideas and create a solid plan. Your business plan will clarify how you will make your business successful. You can anticipate pitfalls, your market and the processes you will need. When it is completed, it will help you get the investment needed to launch.
5. Find Your Investors!! Time to raise capital. Overestimate what you think you need because if you don’t hit your projections, you will most certainly need more money. And, if you don’t hit your projections, it will be harder to raise more money. Try banks (if you have collateral), the Small Business Association, angel investors, family (be careful) or reach into your own pocket. Limit what you put in because it is likely you will need to forego an income for the first 6 months or a year before drawing from the business.
6. Launchtime!! Now you are ready to go. You have the foundation for a successful business. The rest is up to you, your team and your advisors. But, mostly success rests on your shoulders. Religiously track sales, revenue and expenses to be sure your business is tracking your business plan. Stay focused on where you have to be this week and this month. Don’t worry about long term, yet. Just focus on immediate goals and results. Nothing else matters.
There you have it, 6 Easy (??) Steps to Starting Your Own Business.
Happy Entrepreneuring!!
Filed under Start Up by on Apr 25th, 2011. 1 Comment.
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