Saturday morning blog post.

It's Saturday morning, the sun is shining and I've just got back from one of my most creative daily events - the dog walk.

The three most common subjects for my dog walking time:

1. People issues
2. How to add even more value for our customers
3. Nothing - just trying to be aware (probably the most valuable)

Today's subject?  Being present in the sunshine and watching spring arrive.  The great thing about times like this is that ideas tend to just arrive.  Which brings me back to why I am writing a blog post - I had an idea about how to change the code behind the blog that would display it better in a Google search.  I've made the change so now it's time to wait for Google to do it's bit - could be hours, days or weeks so I'll just have to be patient!

5 factors underpinning employee engagement

I recently had lunch with Gary Miles from the Roffey Park Institute (www.roffeypark.com) discussing their work around employee engagemant.  Much of this was carried out with very large organisations but I am convinced that it is just as relevant to much smaller companies.  Just because a company is small it doesnt mean it's HR issues are any less complex.

Roffey Park carried out a research project last year to explore how key drivers affect employees in their day to day work and what the ultimate outcome is for organisations.  The drivers being considered were leadership, management, communications and culture (drivers of engagement) and the more tangible outputs of employee engagement such as discretionary effort, energy, well-being and productivity.

The findings highlight that at the heart of employee engagement is a two-way relationship between the employee and the organisation. Key factors identified were:

• The sense employees have that their relationships with their employers are fair and equitable, including the extent to which employees feel supported in their work.
• How employees relate to their job roles, including the pride they take in their work, their sense of delivering a valuable service and how stimulating their work is.
• Whether employees feel that they are respected and trusted and that their contribution is valued.
• Whether they believe they are communicated to well and trust their leaders.
• The quality of interpersonal relationships between colleagues, in how enjoyable and productive they are.  

If thsi is a subject close to your heart then I recommend that you take a look at their study - The Human Voice of Employee Engagement

Time to get an HR system that works for you ....

Institute of Directors article  '...... In January, a report by consultancy Mercer found that while 65 per cent of HR professionals across Europe, the Middle East and Africa perceived themselves as strategic partners to the business, just 15 per cent of the activities they carried out related directly to strategy. Despite claiming otherwise, HR professionals were spending most of their time on compliance and auditing, HR services and record-keeping-tasks just about as far from the centre of the organisation as it's possible to imagine. ....'

Read more - Does HR add strategic value?

Brilliant at the basics of business 100:

Just had the IoD magazine hit my desk and out fell a neat little pocket book by Nicholas Bate (http://www.strategicedge.co.uk/) - 'Brilliant At The Basics of Business 100:'  I can't find a reference to it on his website but it's worth asking for a copy.  100 little pearls of wisdom to flick through as you wait on hold while making sales calls!

We have a 'DOH' list here at Centurion - things that are so obvious they can easily be forgotten.  I'm convinced that it never hurts to revisit the obvious.

10 ways to boost your sales

Tips & tricks - how to get the most from your efforts as a sales person. If you read this blog post, please do so on the understanding that it is largely here to remind me what I believe in and then to make me do it!

Have a plan and work at it every day
Top sales people know their targets, what they have got to do to achieve them and then focus on doing it. No chatting about reality TV programme at the coffee machine. They plan, set goals and constantly ask themselves “How can I achieve my goals today?”
Prospect for new clients every day
Sales is like a bucket with a hole in the bottom! If you stop filling the bucket, it will soon be empty. It doesn't matter how you fill the bucket - cold calling, networking, referrals, events, PR, marketing, direct mail or white papers - it needs to be topped up every day.

Be genuinely interested in your clients
It's hard to get motivated on the 47th call of the day, but if you can’t get interested in your client, then they wont be interested in you. Being genuinely interested in your client's business is a great way to differentiate yourself.

Ask great questions
Great questions come from two things: The first is being genuinely interested. The second is planning and preparation. Sometimes you have to rehearse your questions - this doesn't mean that you read from a script though. Make a record of your clients’ answers so you can build up a profile of them. Focus on this one area of your business over the next few weeks and it could well make a big difference to your sales pipeline.

Listen to understand
Two ears, one mouth - too many sales people work the other way around! Most sales people filter what they hear, listening for what they want to hear. For this reason, many totally mis crucial pieces of information because it wasn’t what they were wanting to hear at that time. This can kill a sale.

Know your clients
Few people know their clients well enough. This can lose business because if you don't have enough understanding how can you truly help your client.

The information you need could well include size, markets, customers, projects, turnover, values, mission, individuals, individual drivers, future growth plans, exit strategies etc. When you’ve gleaned this information, store it in a single, simple-to-access database that you and your colleagues can easily return to.

Sell solutions, not products
If you’ve ever had problems with trying to get clients to commit or had deals that seemed ‘on’ then went sour, then you were probably selling products not solutions.
As a rule, we shouldn't discuss specific products or solutions until we know our clients’ explicit needs. And these needs should be stated by the client, not you!

Target your perfect customer
Outline your perfect customer on a piece of paper… in detail. Check that there are enough of them to build your business to the size that you want to build it to. Work out how to reach them, and get to work! And don’t tie yourself to customers you don’t want anymore, as you’ll never find the time to approach those you do want.

Be proactive, confident and professional
The key word here is professional - not cocky! Set yourself high standards and strive to maintain them in everything you do. Another popular way of stating this is to be a player not a victim.

Never stop learning
Seek out people that you admire, who take responsibility for their own success. Find out what they believe in, understand how they behave and what they did to achieve their success. Then decide how you can use that information to improve what you do.

This post was based on an article written for Sage ACT! by Gavin Ingham (http://www.gaviningham.net) with a few twists of my own.

Now please excuse me because my bucket needs filling....

The cost of complexity (aka KISS)

Human beings seem to like making things complicated, but when it comes to business systems this can be bad news.

System reviews often start with a simple, but pressing, requirement eg.

• get a better idea of what sales are being worked on;
• what marketing works;
• store all information centrally.

Then best practice says you should:

1. list your requirements;
2. assess what is available to meet those requirements;
3. meet with a shortlist of vendors;
4. evaluate and make your decision;
5. implement.

I don't disagree with any of the above but the work involved must be in proportion. There are traps to fall into at each stage:

1. List your requirements - if you sit down with a blank sheet of paper you will almost certainly produce a lists of 'must haves', 'wants' & 'would likes'. It's worth understanding the three categories as the longer the list, the more complex & costly the finished system.
2. Assess what is available to meet the requirements - if stage 1 went well then you have a good solid list. If you spend too long looking at the options then you will generate a mountain of information that will take even longer to filter through. Three or four options should usually be enough and please consider your budget at this stage. If a system is too expensive then it probably isn't right for you.
3. Meet with a shortlist of vendors - it sounds silly but the most common trap here is to have a short list that isn't short. If you invite 15 vendors to the party then nobody gets what they need - least of all you.
4. Evaluate and make your decision - if there is an obvious choice then that's OK, you don't need to look to make it more complicated. If it's not obvious, then a team meeting, a white board and simple scoring system might do the trick. List your requirements and score each system as to how well it meets them - 1 = doesn't, 5 = completely. This will highlight where you need more info and may give you an answer. Please don't rely on the vendor to do this exercise as they may be biased!
5. Implement - This is where it is crucial to keep the list from stage 1 handy. Systems people call it 'project creep' - new requirements added along the way will cause sleepless nights as well as cost and time over runs. Set your goals, make sure everyone sticks to them and have some measurable objectives if possible.

There is always a reason why an IT project goes wrong and being over ambitious or complex is up there at the top of the list.

Making existing IT work for you

Most indicators show that the economy has turned and that we are in the early stages of a recovery. Companies are thinking about investing again to make sure they are in the best possible position to capitalise on the upturn.

With reduced headcount in many companies, business software needs to work harder to make up the difference. This often leads to a search for replacement systems but managers need to make sure that there is a real compelling reason for a change.

I am advising my clients to document what they need from their systems and make sure that existing systems can not do it. It can cost more than three times as much to implement a new system as it does to upgrade or modify existing ones. Sometimes, all that is needed is a bit of training which is a real saving compared to the upheaval of implementing a new system.

However, if there are compelling reasons to change, then investment is required. Whether you upgrade or replace it should be turned into a really positive event.

10:10 - some ideas are so simple!

Centurion has just signed up to 10:10 (http://www.1010global.org/uk) and made a commitment to reduce our energy usage by 10% over the coming year. Our recent office move has given us a head start as we are now in a much more energy efficient building so we are looking at fine tuning.

We have always looked to minimise our impact and 10:10 will provide us with a great focal point. One area to get attention is our business mileage and as a starting point we needed to know the mileage for last year. This proved to be harder to do that I expected so we are about to improve our expense management system. Managing expenses online, using breatheHR, will give us the tools to monitor mileage and reduce admin.

As a business we are driven to create strong client relationships so it is important for us to meet with clients. However, we plan to use our IT systems to help reduce the need to travel. We have provided online support for a number of years are are adding online 1-1 bite sized training and even online installation services.

Where is all our data held?

Most companies have all the data they need to make informed decisions - it's just not in a format that can be accessed or used.

I had a great conversation a while back with a friend & business colleague about email - is it data or is it a bucket that has data in it? This may seem like a technicality but in my view it is essential to realise that it is a bucket!

How many emails do we all get in a day - 50, 100, more? Many are junk but some contain nuggets of data that are valuable. We need this data to make informed decisions. Most people store useful / important email in some sort of file structure - typically in Outlook folders. On the face of it this is great, but it falls apart when we want to access the data contained within the email. We can search by sender, subject or content - if we know where to look (maybe it is in folders that I don't have access to) and can guess at some of the words used. I would claim that unless you are really organised, or have time on your hands, much of the useful data contained in filed email is lost.

Document management systems have long been heralded as the key to a paperless office but they are expensive, difficult to set up and maintain. They can however provide a solution to the issue of managing data in emails (much more than managing a filing system for email).

We have been looking at ways to open up the document management tools to SMEs that don't have a huge budget and are really excited to have found KnowledgeTree.

KnowledgeTree provide affordable, easy to use systems to manage documents, promote collaboration, reduce paper and most importantly release data held in documents. We are just finalising our plans and will have more information about KnowledgeTree available shortly.

With information comes light.

I heard a senior executive from Facebook say this recently and it has stuck with me. Taking this saying and stretching it to its limits was an interesting exercise (sad I know, but my excuse is that I was stuck on a packed commuter train heading home from London).

If information brings light
then
knowledge must be an open door with the light shining through and the conviction to walk towards it
leading to
understanding as one recognises the source of the light.

To run a business we must have information but, to take informed decisions, we need to turn it into knowledge and act on that knowledge. Only after acting do we stand a chance of understanding.

Decision Making

How many decisions do we take in our business life? Many are taken without thought, as part of our daily workload. Some demand more attention and have a greater impact. There are only two outcomes to the decision making process - 'do something' or 'do nothing'. When I say 'do nothing' I include 'get more research', procrastinate and all the other things that result in no action being taken.

How any businesses consistently monitor the results of 'do something' decisions? The best businesses always measure outcomes and adjust decisions accordingly.

When it comes to 'do nothing' decisions, very few businesses consider the outcome. However, how can we as business people improve our decision making process if we don't do this? If we decide to not invest in a new server, we should measure what that decision is costing us (or not costing us). If a decision is taken to not invest in an ageing product then we must recognise that a drop in sales is possibly the reaction to that decision.

For the last couple of years it's been easy to take 'do nothing' decisions but if we were wrong then the consequences will show up sooner or later. Isn't it better to monitor the results of all high impact decisions (both 'do something' and 'do nothing') so that we can adjust our actions quickly?

I like the idea that there are no wrong decisions, only right decisions that are not reversed quick enough.

Snow stop play (2)

Back in February I wrote a post suggesting that work needn't stop because of a little bit of snow. Well here we are again - the broadcasters are advising people not to travel unless absolutely necessary. But what is 'absolutely necessary'? If you run your own business and have to make every moment count, then surely travel is absolutely necessary. One of my guys was due to see a client this morning and spent 1 1/2 hours trying to get there before turning around. A fantastic effort that meant a lot to me and the client. However, everybody needs to make individual decision based on their own circumstances.

What ever the weather, a good plan and capable systems really can help. We are by no means the best prepared but work goes on at Centurion. The office is not maned, but our phones are redirected so the few clients that are working can still be supported. We are working from home with access to email and CRM. Online training has happened this morning and client work continues all be it at a slightly slower pace. I can even go into our HR system, breatheHR, and prepare for next weeks performance reviews.

This sort of event is going to get more frequent so we, as responsible managers, need to constantly improve our processes. There are things that I have learnt over the last two days that I want to change for next time. We need to share the information about how to redirect the phones for instance.

Life goes on - and it does look very pretty outside!

Lies, damned lies and statistics

Lies, damned lies and statistics, the phrase attributed to Benjamin Disraeli (though not found in his work), could be applied to the Office of National Statistics reporting for UK GDP. I'm not suggesting that there had been any underhand dealings going on but rather a desire to be over cautious that the press capitalised on

You may remember that the ONS reported UK GDP to have fallen by 0.4% in the third quarter of 2009. This caused a public (press?) outcry against the government - why weren't they doing more? At the time I remember reading minor reports that the figures were likely to be revised up towards the end of the year for very valid reasons. But, being British, the bad news was over played.

So now that it is the end of the year, it seems that the true figure for the third quarter looks more likely to have been a fall of 0.1% and may even have been neutral. See "Office for National Statistics data suggests recession already over."

What has this got to do with running a small business? Two things - first, business morale took a further battering which we really didn't need and second there is a lesson about how to turn information into knowledge. The ONS knew the factors affecting the calculations accuracy and alerted us to the possible update, but the press decided to largely ignore this.

With any management information, if one relies on the headline figure and doesn't bother to understand the surrounding information, a bad decision can be taken. Every manager needs a set of key performance indicators (information) but they must be applied with understanding (knowledge).

Getting the focus right when implementing a new system

When a new system is being implemented there are three elements that must be balanced:

1. Functionality - what it needs to do;
2. Speed – how quickly do you want it in place;
3. Price – what is the budget.

It's easy to say that we want everything, now, and at a rock bottom price but that's not the real world. It's also a recipe for a failed implementation.

In most cases, the answer is a blend of the three but the mix will determine how your project proceeds. For example, a project focused on price will almost certainly result in less functionality being delivered, whereas a focus on functionality will take longer to deliver and probably cost more. No implementation is the same so consider the triangle (right) and think about where your priorities are.

We find that there are 4 broad categories of implementation:

Balanced - requiring “a little of all of them”, is where most of our clients actually sit. They want a balance between a solution that is implemented quickly, but is somewhat tailored to their needs, with enough training to get both users and administrators up and running with a minimum of stress, effort, and delay.

Speed - A focus on speed means getting the system as fast as you can. This does not necessarily mean sacrificing functionality or quality, but can result in a higher cost. It may involve several consultants working together on a system. Speed focused implementations need careful project management.

Functionality - The functionality focus typically suits organisations that want the system configured to their specific needs, detailed user and administration training, and have lots of data to be migrated from one or more legacy systems.

Price - A focus on price looks for all options to keeping the cost down. This includes absolute out-of the-box functionality, and training to give administrators enough information to continue the learning process themselves in the use, setup and administration of the system, and to train the end users themselves.

The best route to understanding the right mix for your implementation is to meet with the vendor and discuss the options, your in-house skills and how critical the system will be. It's also worth pointing out that the mix will change from system to system and should not be a company standard

One version of the truth.

How many times have you questioned the information you use to run your business? That nagging feeling that a part of the management information might not be correct or you see the same information from two sources that doesn't agree. Would you expect sales information in your CRM system to match the invoicing totals in your accounts system? Probably, but there are legitimate reasons why it may not.

Businesses often have the same or similar data stored in different places and whilst this isn't ideal, it's not necessarily a bad thing. What it does mean is that greater care needs to be taken when compiling data. Time needs to be taken to understand the way each system holds data and to get a real understanding of the reporting tools provided.

Information overload

When I first started working as a management accountant I learnt that it was no good having loads of data unless you could turn that into information. But even information is pointless if you can't use it. For example - it's no use having all the data about your sales opportunities if you can't turn that into a report that helps you manage the sales pipeline. But even the best pipeline report is useless if it takes you hours or days to produce.

I was reminded this week that the information trail goes even further:

Data becomes Information,
Information leads to Knowledge
Knowledge develops Understanding
Understanding gives Wisdom

Data is raw and has no meaning;
Information is data that has been given meaning;
Knowledge is where information sources are gathered so that it becomes useful;
Understanding happens when knowledge becomes embedded and you can take action;
Wisdom is much higher. It allows us to determine the difference between right and wrong.

In business, nothing less than understanding is truly useful and wouldn't it be nice to have a bit of wisdom!

Keeping the green shoots alive through winter

Whilst there are still two polarised views about the economy, many people I speak to are seeing a pick up in their business. Let’s face it, most small businesses have had a tough time over the past year and any sign of improvement is very welcome. For many companies an upturn sees a wave of pent up demand heading their way – the customer always needed your product but was unwilling or unable to pay for it.

To ride this wave you have you have three choices:

1. Carry on as you are but paddle faster – sooner or later you will fall off the wave. Or worse, it will overtake you..
2. Get another person to paddle with you – who wants to recruit right now when there are so many pessimists predicting a ‘w’ recession.
3. Work on improving your technique – match investment with income and build a better platform for the future.

Now is the time to look at how you are working and question if it is the most efficient way. This covers both what you are doing and how you do it.

In the HR world it is a good time to review how your organisation manages admin heavy processes. Is there away to automate tasks, leaving you to manage the people not the paperwork? HR professionals need to be out there building confidence in their teams rather than doing admin.

Sales and marketing people can always improve processes. We sales people hate to be tied down to a system but grudgingly admit that things work best when we are. I for one need to go through my sales pipeline to remove those deals that never seem to close – it was worth chasing them when I had the time but now I’ve got enough ‘winners’ to work on.

Biggest employer in the world.

I've just been looking at the results of the 2009 Fortune Global 500 and it's quite sobering. The biggest employer in the world is Wal-Mart with 2.1 million employees! Can you imagine handing out the payslips?

Slightly more sobering - if you sort the results by the biggest losses our very own Royal Bank of Scotland comes in second with a stonking loss of $43.1billion. The 'winner' is Fannie mae with a massive $58.7 billion loss.

Top 6 most profitable companies in the world? All oil or gas providers.

Have a look at http://money.cnn.com/magazines/fortune/global500/2009/index.html for more big numbers.

Who manages your diary?

I haven't met a CEO of a small business that hasn't got too much to do. Diary management is always a big topic and most people develop their own methods to suit the way they like to work. However, sometimes the way a diary is run has more to do with what others want - colleagues, clients & peers - rather than what is important to us.

I am always intrigued by the way that peers can affect how we run our businesses. I occasionally speak to CEOs who suggest we get our PAs to talk and arrange a meeting - I tell them that I don't have one and then suggest a date & time. They believe that this is the way it should be done but it often comes down to the fact that they don't have good access to the system they use - paper or electronic. They give the impression that it is not their job and are shocked that my diary is mine to manage. I take the view that if a meeting is worth arranging it should be booked then and there with little fuss.

Our CRM system is used by every employee and all meetings are recorded - both companies that I am involved with use the same system. Every employee sees my diary and can / must enter meetings when they need me involved. They are used to this and are very considerate but I have an office manager who juggles activities for me when needed. On school run days the system tells me when to leave and I try to get personal activities logged where relevant. I have access at home and on the move but as all employees can see my diary it is easy to call in and organise events.

This approach wouldn't work if every employee had their own diary but I haven't been in that situation since starting Centurion 15 years ago. I can see that sharing diaries may be scary at first but I personally couldn't manage without it.

Invest in systems support

I have just taken on a new client whose system has been unsupported for the last year. I first spoke to them at the end of 2008 when they asked us to quote for supporting their business critical CRM system. However other more urgent issues got prioritised and it is only now that they have taken up my proposal.

It is all to easy to drop support for business systems now that we are all looking to reduce expenditure. However this can be a false economy. In many respects software support is like insurance - you don't need it until something serious happens.

People that know me will say that I am the first to recommend saving unnecessary costs. So I suggest asking yourself a number of key questions:

• How critical is the system?
• Can I manage without it?
• What would happen if I am without the system?
• How many users and processes would be effected?
• What is the cost of support compared to the cost of down time?
• Are we pushing the limits of what the system can do?
• Do I have good internal resource to manage the system?
• Does this resource have the right skills and time to apply them?
  

I would also suggest that there are a number of less relevant but still important questions such as:

• Did I use support last year? - that is no guarantee that you wont need it this year. You probably pay for fully comprehensive car insurance and are glad you didn't use it last year.
• Am I planning to replace the system soon? If it is currently a critical system that you can not do without then support should be maintained.
• What is the cheapest support option I can get? Cheap is not always cheerful.

There are certain situations where costs have to be dramatically reduced in a hurry and I am not talking about these. However, in most circumstances system support should be viewed as an investment to manage a business risk. Talk to your provider to get the most out of a support contract and they should respond by working with you to get the most out of your system.