Tag Archives: successful strategies

Don’t Be a Good Place to Work – Aim for Great

Is your organisation a great place to work? Going from good to great could unlock huge benefits and it’s not as hard as you think.

great place to work
Photo by Helena Lopes from Pexels

This article was written by Jim Beretta. This article was  originally published on Customer Attraction and LinkedIn.  

What is one of the best ways to grow a successful business? That is a constant dilemma for CEOs. Of course you have to have a great product or service. Your pricing has to make sense. You must be timely when attempting to solve your customer’s pain. You must build a memorable brand and communicate your brand story.

There are lots of elements in the secret sauce of creating a successful company. A company that people want to work with and to work for. And what is the purpose of starting a company or growing a company? Who are you serving: customer, stakeholders, employees? It is a bit of a chicken and egg question.

But there is a big difference between being an okay company, a good company and a great company. And becoming a great company to work for should be one of the CEO’s top priorities. You want your employees out there saying: “This is a great place to work!”.

When you are a great place to work, the effort and cost of hiring comes way down. You are able to attract top talent and retain them, and that is half the battle.

Start with Management

Your managers are the one of the keys to making your company a place where your employees are happy to come to work everyday. Give them responsibilities, accountabilities, manage to their objectives and cut them loose. Don’t micro-manage them. Set the expectation that they will in turn, do the same for their own staff. No one wants to be micro-managed and successful managers don’t have the time.

Get Picky: Put Recruitment Effort into Hiring the Right Employees

Look for people with passion. Passion for anything! Trained and supported, people with fire in their belly will transfer that go-getter attitude to your workplace. Look for patterns of initiative in past roles, school or community work. Skills can be taught. Experience can be acquired. Invest in your staff for the long term. They will return that investment many fold.

Get Comfortable Hiring Millennials

No matter what you read or hear, Millennials are not really that different from any other demographic group. They have their challenges, but in my experience, those are far outweighed by what they have to offer. Embrace their characteristics and turn them into assets.

Figure out where a Millennial might shine in your organization, give them challenges, stretch their goals and watch them lead. By 2020 this population will make up 50 per cent of the workforce. Put effort into hiring, training and retaining this cohort and this is your competitive advantage.

Treat Your Employees Well

One of our local large employers has a “First Day” policy. Your first day on the job at this company was a celebration. They made it an experience. It was part of the corporate culture of being employee-focused. Did it help them attract employees? Absolutely it did; who would not want to work with a company that celebrated their employees?

Another company in our region allows you to bring your pet to work. Is this problem free? Doubtfully, but for them, the benefits must outweigh the costs, I think, as I share the elevator with a poodle.

Company Culture

There’s something important we’ve forgotten about work: how to have fun. Your employees need a place of trust, of balance, with a sense of humor. We’ve forgotten that work is, or could be, or rather, should be, a community. Employees spend at least one-third of their lives at work.

Workplaces need to remember that their employees have lives outside of work and not grudgingly acknowledge it, but celebrate it. Their families, their partners, their hobbies and pastimes and their volunteer communities. They are proud of these and you should be too.

Brand

We are more brand-aware today than ever before. We all have brand affinities, we wear icons on our clothing, we talk about brand preferences and are acutely aware of brands when we shop or when we choose not support certain brands. CEOs need to think about their corporate brand and brand citizenry.

When employees can be invested, excited, and proud to tell people where they work, they’ll be more inclined to stick around for the ride and tell everyone they know about it.

Connection

Our employees need a connection to the big picture. They need to understand the mission and the vision for the company and how that translates into the goals, and to answer the question “Why are we doing this”? They need to know where their own work fits into realising the company goals and how what they do everyday supports their managers and the CEO.

On the question of who you are serving when you start or grow a company, I am going to go with employees. Without great staff, without motivated employees, there is no innovation, invention and loyalty. Your customers and stakeholders know this and if they don’t, they will. And isn’t that the reputation you want.

Jim Beretta is a strategic marketer and President and CEO of Customer Attraction. He consults companies, manufacturers, associations, technology start-ups and governments across North America and Europe.

Talent And Motivation Are Critical To The Success Of Your Business

Individuals of great talent can have a significant and disproportionate bottom line impact in jobs that are highly complex…

talent
By Dirima/ Shutterstock

According to McKinsey’s global talent survey.  Talent will increase productivity by 800 per cent in jobs that are very highly complex, but by just 125 per cent in high complexity jobs and just 50 per cent in low complexity jobs.

Very high complexity jobs include software developers and high level managers. Low complexity jobs are unskilled or semi-skilled labour such as assembly line workers.

This doesn’t mean the entire team needs to be highly talented.  A highly talented engineer can produce the work of nine average engineers in the same amount of time. 

Even ensuring one in five are highly talented will lift the average productivity of the team in high complexity jobs. It will also significantly reduce the time it takes to complete a project. 

As the late Steve Jobs once famously said after noting that his best engineers were 50 to 100 time more effective than his worst, “Go after the cream of the cream. A small team of A+ players can run circles around a giant team of B and C players.”

Disproportionate Impact

Talented individuals can have a significant and disproportionate bottom line impact in jobs that are highly complex, so, rather unsurprisingly, the competition for talent in those industries is fierce. Almost one third of senior leaders surveyed by McKinsey cited ‘finding talent’ as their most significant managerial challenge. 

And with a predicted shortfall of up to 18 million high skill workers in the United States and Europe by 2020 (and 23 million in China), that is to be expected. 

Based on the labour market sizes, this means 1 in 10 high complexity jobs in Europe and the US, and 1 in 6 in China will go unfilled.  Companies in complex industries will not be able to fill a significant percentage of the high skill jobs at all, let alone fill them with the most talented individuals.

Against this backdrop of significant talent shortage, you might assume businesses were highly skilled at seeking out and retaining talent. And you’d be dead wrong.  According to the McKinsey survey 82 per cent of Fortune 500 executives don’t think their companies recruit highly talented people and just 7 per cent agree with the proposition that their companies retain high performers.

No Engagement, No Talent

Big companies, by and large, are just not good at attracting and keeping talent. This is likely due to a lack of engagement.  A talented individual can work anywhere and usually knows it. If they are not motivated by the job, or engaged with it, they will probably leave.

Gallup conducts an annual survey of employee engagement for US employees.  While the numbers are improving, according to the latest results, more than half (53 per cent) of US workers are disengaged with their work or workplace and an additional 13 per cent were actively disengaged.

A disengaged worker is turning up and doing the minimum required but will leave the company for a slightly better offer.  An actively disengaged worker has a miserable work experience and would quit tomorrow if they had any other choice. These statistics match up to other surveys which suggest about three in four workers are actively looking for another job at any given time.

According to Gallup data, businesses that are in the top quartile for engagement achieve earnings per share growth that is four times that of their competitors in the bottom quartile.  They also experience better retention, fewer accidents and 21 per cent higher profitability.  Attracting and retaining talent by keeping them engaged is a license to print money.  But doing that is far from easy.

According to McKinsey, the key is to correctly identify the roles adding the most value.  Sometimes this is easy. Maybe it’s the engineer who checks in the most code or the salesperson who sells the most but usually its not that obvious.  Companies need to look below the surface for long term value.  Is the code bug-free?  Are the sales repeat business?  Is it actually a brilliant code tester adding the value or an incredible sales engineer?

Honesty Over Money – Honestly!

Once those roles are accurately identified the organisation needs to focus 95 per cent of its retention efforts on engaging and retaining those key individuals.  But it isn’t just about money, according to the McKinsey and Gallup surveys, money is the least important of the four primary motivators for retaining high value talent. 

The other three in order of importance are having inspirational and empowering leaders, working for a company with a reputation for honesty and integrity and having a job that makes a difference (has impact).

In short, don’t employee psychopathic leaders, develop an industry-wide reputation for honesty and integrity, doing something that makes a difference and treat your employees the way you would like to be treated and you will be a long way down the path to attracting and retaining the kind of people who can attach booster rockets the size of a SpaceX Falcon Heavy to your bottom line.

5 Keys to Unlocking Successful Integrated Business Planning

Many companies still struggle with executing a strategic integrated business planning (IBP) process that effectively integrates demand planning, supply planning, and financial planning.

Successful Integrated Business Planning

Most simply put, the process should drive decisions on how to best meet demand (customer/consumer sales for existing and new products) within supply constraints in order to optimise financial return. Yet answers to the questions of each planning component of IBP (See Figure 1) can be dramatically different, and lead to very different results if addressed in silos versus an integrated fashion.

Put more bluntly, companies that successfully execute IBP achieve greater operational and financial benefits than those that do not. A key requirement for that success is collaboration, including a disciplined, repeatable process that drives integrated decision making, and a balanced scorecard for performance measurement.

Integrated Business Planning_Slide 2

Figure 1: Components of Integrated Business Planning

Based on our experience, we at The Hackett Group believe unlocking IBP can deliver the following competitive advantages and benefits:

  • Visibility into the financial implications of decisions and actions related to demand and supply.
  • Significant cost improvements driven by a more efficient and effective supply chain.
  • Improved top-line revenue growth.
  • Inventory deployment improvements, e.g. “the right product in the right place at the right time” based on customer demand, which reduce excess deployment costs.
  • Increased customer satisfaction as a result of more accurate demand planning and inventory availability which reduce out of stocks and back order issues.

However, with all the evidence that implementing IBP leads to important benefits in an increasingly competitive environment, why do many companies continue to miss out on the potential rewards of IBP?

We believe there are five keys questions that companies can use to open the doors to an effective and efficient IBP process. The first two questions deal with the market place and competitive environment in which the business operates, while the final three questions help assess internal improvement opportunities based on best practices for process, people, and data, systems and technology capabilities tied to IBP.

  1. What are the big-picture IBP trends in the marketplace?

Here are three examples of what leading companies are doing:

  • Streamlined annual planning and budgeting processes.
  • Balanced scorecards, with cascading metrics.
  • Unified data models and better integration of technology platforms to support advanced planning and analytic capabilities.
  1. How do our supply chain cost and metrics compare to other companies?

Benchmarking can serve as a useful tool for measuring performance against the competition. Armed with valuable key performance metrics for cost, process and resources, supply chain leaders are equipped to make critical decisions and address areas of opportunity.

As an example, the metric “Demand/supply planning costs per $1000 revenue” is an excellent indicator of overall efficiency (see Figure 2):

Demand & Supply Costs

Figure 2: Demand/supply planning costs per $1000 revenue across industries. Source: APQC 

  1. Are optimal planning processes in place throughout the organisation?

Establishing a best-in-class IBP process is the foundation for maximising the efficiency and effectiveness of any organisation. Example best practices include:

  • IBP goals and objectives are clear and well understood.
  • The IBP process evaluates gap resolution and business optimisation options.
  • Materials and reports supporting IBP are exception based. 
  1. Do we have the right people at all levels of the organisation, to own the plan, make decisions, and ultimately be held accountable for the plan’s execution?

Equally as important as the right processes, is having the right organisational talent and accountability mechanisms in place. Example best practices include:

  • Adequately staffed resources with required knowledge and skills.
  • Clear ownership and accountability.
  • Discipline to adhere to decisions made as part of the IBP process.
  1. Finally, are we equipped with the appropriate technology (tools and systems) necessary to fully support integrated business?

To enhance supply chain technology capabilities that both support and optimise the integrated business planning process, best-in-class organisations successfully employ supply chain systems and tools to maximise their IBP process.

Importantly, the firm must have the tools and systems needed to bring together and reconcile demand, supply, and financial plans in order to identify gaps and imbalances.

Read the full Hackett Group Supply Chain Insight Report here to learn more trends, best practices, and metrics which help supply chain successfully transition to Integrated Business Planning

Hanna Hamburger, a Director in the Strategy & Operations practice at The Hackett Group, has over 25 years of industry and consulting experience. She has worked extensively with consumer products and retail companies as well as life sciences companies in the areas of sales, marketing and supply chain process, technology and tools, and organisation performance improvement. A longer version of this article is available on The Hackett Group’s website.