| Business Growth News – November 2008
In this edition ...
Editor’s Highlights
This edition is all about the one thing that everyone can agree on ... the most important ingredient of business success ... LEADERSHIP.
Many articles ... one theme. If you can't get this part right, you can forget about the rest, or do yourself some serious damage, while damaging many of the people around you on the way!
If you've been placed in any position of responsibility, you owe it to yourself and those around you, including your customers, to learn and practice the art and science of leadership.
Now, while so many are crying that 'the sky is falling', could be your opportunity to shine. To 'seize the day' and 'make a difference'. What are you waiting for?
Work-life Balance Really Does Count
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New research shows that work-life balance is a key factor in attracting and retaining staff - even more important than salary.
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A
ustralians have the dubious honour of working the longest of any OECD country, with 20 to 25 per cent of people working more than 50 hours each week. Yet research by productivity consultancy Converge International shows that 47 per cent of workers rate work-life balance as 'very important' and another 32 per cent see it as 'important'.
Converge International’s CEO Dr Lindsay McMillan says an imbalance between work and life can result in declining quality of life, loss of community, erosion of relationships and resentment.
“If workplaces are to avoid harvesting this kind of negative atmosphere, they really need to take serious consideration of these trends and begin concerning themselves with negotiating and transforming the current pattern of ‘work-life collision’ into one of ‘work-life balance’,” he warns.
According to McMillan, introducing work-life balance strategies is particularly important in attracting and retaining Gen X and Y employees. “As a generalisation, Gen X and Y don’t have the same work ethic that their parents had. Work is only one part of their lifestyles and younger Australians are saying that work will not be the most important thing for them in the future.”
He adds: “Directors need to recognise that the nature of work has morphed into life. We no longer have the distinct eight hours of work and then play.”
Before implementing work-life balance strategies, McMillan says directors need to ask what culture they want to convey to the organisation. “It’s not enough to just spend the time and effort required to research appropriate work-life balance strategies, there needs to be a crucial shift within the organisation. Many workplaces fear such practices interrupt the day-to-day running of a business and that employees who take advantage of work-life balance strategies are lacking in commitment,” he says.
“For this reason, senior leaders in a business need to lead by example and there needs to be a champion of the cause. This shows all employees that they can switch over to work-life balance initiatives without risking their career progression.”
Indeed, McMillan says work-life balance programs can come with stigmas attached. “For example, some men may be viewed as less committed to the company because they embrace a work-life balance program.”
Extract from Company Directors, Issue 19, 7 October 2008, Pg. 5
Get the Facts About Managing Customer Facing Personnel
Thank you to those who have so far contributed to our ongoing research into the management of customer facing personnel.
This survey is open to everyone who manages customer facing personnel, and the results are available online to everyone who completes the survey, where you can interrogate the aggregate data and compare your practices with those of similar organisations.
If you’d like to know more about real practices in management, and how you and your business compare, go to http://www.surveymethods.com/EndUser.aspx?A98DE1F9ABE2FFF9
and follow the simple online instructions.
Top 10 Strategies of an Effective Boss
A survey of 4,035 senior Australian executives by management consulting firm Human Synergistics sought to distil the essence of successful leadership – and discovered some bad habits along the way. The Human Synergistics report, Transforming Leadership and Culture, concludes that 50.4 per cent of managers contribute to poor employee behaviour and negative workplace cultures. “Alarmingly, most managers still use a command and control leadership style and have no idea what impact their behaviour has on those around them,” the managing director of Human Synergistics Australia, Quentin Jones, says. “Few bosses have the leadership skills and patience to lead a constructive culture.” Human Synergistics identified the strategies typically employed by Australia’s most effective leaders.
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01 Communicate a desired state of affairs, a clear vision, and share your philosophy of management.
02 Display a set of behaviours that reflect the values and standards you want for the organisation.
03 Provide direction, guidance and create an environment where it is “safe” to learn.
04 Encourage people to be creative, challenge assumptions and see problems as opportunities.
05 Tell stories about successes, organisational “heroes”, and talk about people’s strengths.
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06 Focus on what is being done right, show interest in the work of others and how things get done, and notice excellence when and where is occurs.
07 Let people know when they have done well.
08Recognise desired behaviours and make an effort to increase their frequency. Offer new opportunities to people, give praise and celebrate others’ successes.
09 Let people participate in some decision-making to gain co-operation. Ensure decisions are understood and accepted, and influence others by being open to their influence.
10 Work to develop your employees. Be concerned with their learning and development.
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Extract from BRW October 9-15 2008, Pg. 54
Read further about leadership and management or call us on 08 9271 7661 for a comprehensive diagnosis and proposal to ensure your valuable personnel are being effectively deployed.
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Leadership is the Key to Profits
The top 10 per cent of leaders make nearly double the profit of average-to-good leaders, while poor leaders lose money and drive customers away from their company, recent research has found.
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Average-to-good leaders (the middle 80 per cent) make a reasonable profit, while the difference in profitability results between an average-to-good leader and a leader in the top 10 per cent is staggering.
Michael Bunting, managing director of WorkSmart Australia, said Australians were marginally below the global average in leadership capability. “So they are not showing exceptional leadership, but are also not showing poor leadership,” he said.
“If we look at the data around extraordinary leadership versus good/average leadership and its impact on performance and competitiveness, it would point to the real need for leadership development in Australia to be taken more seriously if Australia wants to become globally more competitive.”
Bunting, who runs leadership workshops in Sydney and Melbourne, said "... research indicates that Australians value honesty in their leaders above all else, and put an extremely high value on good relationships in the workplace. This presents a big challenge to the leaders we have worked with. How does one remain consistently honest and maintain good relationships and harmony?”
“So the challenge for the Australian leader is to find ways to build relationships at exactly the same time as remaining totally honest about performance issues, people’s career prospects, company problems, etc.”
Jim Kouzes, who co-authored The Leadership Challenge, and conducted the above mentioned research into leadership, said good leaders demonstrate five practices: modelling the way; inspiring a shared vision; challenging established processes; enabling others to act; and encouraging the heart.
“It’s a matter of how frequently leaders engage in these behaviours. The more frequently one clarifies values, sets a positive example, envisions the future, enlists others, searches for opportunities, takes risks and learns, strengthens others, fosters collaboration, recognises individuals and celebrates successes … the more impact they’ll have. The less they do them, the less impact,” he said.
Extract from Human Resources, 30 September 2008, Pg. 5
Read further about leadership and management or call us on 08 9271 7661 for a comprehensive diagnosis and proposal to ensure your valuable personnel are being effectively deployed.
Business Owner's Biggest Concerns
BALANCED PERSPECTIVE
Despite the skills shortage and a troubled economy, business is maintaining a cool-headed outlook, the inaugural BRW-ANZ report, The Private Business Sector in Australia, shows.
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The skills shortage remains the biggest challenge facing private businesses despite the pressures of a slowing economy and reduced cash flow, the inaugural BRW-ANZ report, The Private Business Sector in Australia, has found.
The report, which is based on a national survey of more than 500 private business owners and operators, says the skills shortage is a leading concern for just over half of businesses (50.4 %), followed by difficulties achieving business expansion (46%), poor cash-flow (44%) and increased pressure on margins (40%).
The skills shortage is not a new issue, with many businesses having struggled to attract and retain skilled employees for three years. “There is a total unavailability of sufficiently skilled staff in regional cities like Darwin,” one respondent notes, adding that “the mining sector has sucked out the skill reservoirs”.
| Attracting and rataining good staff |
50.4 |
| Expanding the business |
45.6 |
| Cash flow |
43.6 |
| Margins |
40.4 |
| Staff perfromance and development |
38.8 |
| Government regulation |
38.1 |
| Sales and marketing |
35.8 |
| Technology, systems, e-commerce |
28.9 |
| Corporate culture |
28.5 |
| Exit strategies |
22.3 |
| Competition |
21.6 |
| Source: BRW/ANZ |
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The credit crunch has presented new issues for private businesses, many of which have never experienced a downturn in the economy.
Almost 40% of private business owners say they are experiencing changes to the conditions of their capital lending facilities, such as increased requirements for collateral and a tightening of
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terms, conditions and covenants on their borrowing and leasing arrangements.
Accessing adequate capital for expansion is also a leading concern for many respondents, with about a third saying they would consider growth through acquisitions if funding were more readily available.
Despite the economic pressures, a modest 15% of respondents are pessimistic about the performance of the Australian economy to hold steady and 7% are optimistic about the year ahead. Private businesses are more optimistic about the outlook over the next three years, with 25% expecting the economy to be in a more positive position.
Seeking professional financial advice throughout this period will be a priority for many private businesses.
The survey shows that the conventional channels of advice, such as accountants, bankers and lawyers continue to be the most popular. More than half of respondents say their accountants have been crucial to the success to their businesses, with 92% claiming to have used their services during the past year.
Bankers are seen as less important, with 46% of respondents saying they have been crucial to the success of their businesses. Although 70% used a lawyer in the past year, just 41 % believe the service has been important for their businesses, only 24% of businesses report using a financial planner during the past year.
Quality “no strings attached” advice is the most highly valued quality of business advisers, followed by honesty, integrity and flexibility. Less important attributes include good communication skills and accuracy. Only 3% consider cost an important factor when choosing a business service provider.
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Extract from BRW, October 2 -8 2008, Pg. 47
Read further about leadership and management or call us on 08 9271 7661 for a comprehensive diagnosis and proposal to ensure your valuable personnel are being effectively deployed.
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Defining Tomorrow's Leaders
| Leaders of tomorrow’s global companies will have a very different mindset from those of today. |
To compete effectively in global markets, Australian business leaders will need to continue to increase their knowledge and understanding of the changing international scene and the inter-relationship between business, society and the environment.
A recent global report has found that there will be increasing pressure on corporate executive teams place a far greater emphasis on the impact of global companies on social and political systems, the natural environment and the global economy. This requires a refocus on a wider definition of corporate success.
Leaders of tomorrow’s global companies will have a different mindset from those of today, the report found. For example, leaders in the future will have a wider and deeper perspective of how they define the focus of business.
Read more about this article …
Extract from Human Resources, 30 September 2008, Pages 12 -13.
Read further about leadership and management or call us on 08 9271 7661 for a comprehensive diagnosis and proposal to ensure your valuable personnel are being effectively deployed.
From Manager to Peak Performance Leader
| The impact that executives have on the performance of an organisation cannot be underestimated. Indeed, if they are not making a significant impact, why do you have them there? |
By enhancing the performance of the individual executive, the performance of the team and direct reports will be correspondingly enhanced, and the multiplier effects will benefit your business in remarkable ways.
But where do these busy people find the time to make such improvements?
Edensilk recognises that executives prefer to enhance their management skills without having to undertake formal or structured training programmes that often take them away from their workplace for substantial periods of time. Our approach is designed to integrate with each individual's personal and business situation in a way which brings about lasting changes for them and their organisation.
Who is it for?
Executive Coaching is suitable for ALL people who supervise others in the workplace. This ranges from the CEO (or business Owner) to the workshop supervisor. It's about working one-on-one and in groups - with executives, managers and professionals - using contemporary management and adult learning techniques.
Find out how to managers are transformed into peak performance leaders ...
Read further about leadership and management or call us on 08 9271 7661 for a comprehensive diagnosis and proposal to ensure your valuable personnel are being effectively deployed.
How to Keep High Earners?
| In a recent survey of more than 100 high salary earners, Six Figures found that there were three key drivers associated with changing jobs or career – leadership, career prospects and salary, in that order. |
"Calibre of leadership has a major impact on whether your top senior people stay or go,” says director Kelly Magowan. “Unfortunately, it’s an issue that many organisations fail to address.”
“High earners are, by nature, very focussed on being challenged. Opportunities for mentoring, moving into new roles across divisions, moving up, business coaching, overseas secondments and so on all help to keep staff engaged. Career progression does not necessarily have to be up – it can be lateral. It’s around providing your executives with stimulating work opportunities.”
Remuneration is increasingly being used as a tool for retention. “At executive level, an award of shares rights or options is becoming common,” says Guerdon Associates executives, the total value is generally equal to their current equity, bonus and benefits. However, most larger companies require the new employee to be in service for some time before the full value vests.”
Companies are also increasing annual bonuses for excellent performance, but paying a proportion of this as shares or share rights which vest after one, two or three years. This way, the most valuable employees have  the largest amount of equity locked away as an incentive to stay put. The danger is that if a company has not performed particularly well, bonuses will be well scrutinised by shareholders.
Effective succession planning can also provide a crucial edge. “Research indicates that internal appointees are more successful in the longer-term than external appointees,” says Robinson. “Also, Australians have yet to acknowledge the value of establishing and nurturing alumni. Good employees who leave may be in a position to return in future, or refer talent to you.”
Extract from Company Directors, October 08, Pg. 48.
Read further about leadership and management or call us on 08 9271 7661 for a comprehensive diagnosis and proposal to ensure your valuable personnel are being effectively deployed.
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Published by Edensilk Pty Ltd. Editor: Paul Curtis. © 2001-2008. All material is copyright. Extracts may be used when 'Edensilk's Business Growth News' is acknowledged as the source including reference to www.edensilk.com.au No liability is accepted for the application of ideas expressed within these articles |
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