Give Your Team a "Time Out"!

Performance improvement is about improving work flow of operations. However, sometimes it is necessary to take a break and reflect. If you have ever gone to the gym or hired a trainer, you know that constant training, without rest days, leads to fatigue. Furthermore, if one continues at the same rate and without rest, then progress turns to regression.

The same concept holds true for operations improvement initiatives. Performance improvement efforts start to produce diminishing results if the team does not take a break from such activities. A good performance improvement should include "forced rest" a.k.a time-out build in to the process. Let me address the following two questions that I come across:

1. Where does one build time-outs in process?
2. How many time-outs are sufficient in any given cycle?

Let us take a look at these questions individually:

Performance improvement is a cyclical process. There is a start and there is a definite end before the cycle repeats. A typical cycle includes the following stages: Analysis, Re-engineering, Testing, and Implementation. Some organizations may have more stages, and others may have less; but these are the core stages in any performance improvement initiative.

Time-out, in this context, means to "reflect". A proper definition of a "time-out" would be:

"A period of compete intra-cycle disengagement"

Every stage within the performance improvement cycle has a process in its self that involves review of the current state, application of tools and techniques, an expected outcome as a result of the application of those tools and techniques, and an evaluation of the result. I would like to add here that the first and last processes mentioned here are not the "time out" periods we are referring to. Rather it is a period between the first and last "stages" of the entire cycle.

Let me simplify it a bit more. The core stages mentioned were: Analysis, Re-engineering, Testing, and Implementation. The time out should be inserted between "implementation" and "analysis" resulting in the cycle having an additional "forced" step: Analysis, Re-engineering, Testing, Implementation, and Time-Out.

This should now have provided an answer to the second question, i.e. 1 time out is sufficient per cycle.

So how many cycles are required in a given initiative? Well! this is a whole other topic, but let me end with this thought. Performance improvement also means to increase efficiency while reducing complexity. With an optimized process it is not possible to have a complicated process. Therefore, if a cycle introduces added complexity of a given process; then one needs to really take a time out!

Question of the week:
Do you build time-outs in your performance improvement initiatives?

Please comment on this and other posts.

Visit our site at www.skkservices.com

Till next time....

Sal
CEO & Senior Advisor
skk@skkservices.com

Talent Aquisition & Organizational Performance Improvement

Recently, at a conference of C-Level executives I was asked the following question:

"What contribution does the organization's Human Resource department make towards the performance improvement initiatives within the organization?"

This was a very interesting question. Why? Because many-a-times the Human Resource department of the company gets over looked as being an integral part of the company. Yes, the HR department is responsible for finding candidates, making offers, developing employee related policies and procedures, etc. -And one job that the HR Manager always gets involved (unwillingly) is the termination of employees. Aside from the above mentioned tasks (and a few others) the HR Manager is seldom brought in to operational meetings that relate to performance improvement initiatives within the organization.


In this blog, I will explain not only why is it important to keep the HR Manager involved in such discussions but also why such involvement by the HR Manager is a critical piece of the overall organizational performance improvement efforts.

The job of the HR department is a critical one. The HR Manager is the first line of defense against an organization's poor performance. Let me explain. One of the key functions of the HR department is to acquire the right talent for the organization so that the organization is able to reach its objectives "with ease". The most valuable assets of any organization is not its tables and chairs, nor is it the products or IP's; in fact it is it's workforce or in other words the organization's Human Capital.


The HR Department along with the operational folks need to hire the right type of people. However, it does not stop there. They not only need to hire the right people, but also need to align (staff) the abilities, i.e. strengths, accordingly with the job at hand. As any human resource (and hiring manager) will tell you "this is easier said than done".


companies that have a low turnover rate are able to retain talent due to proper planning and proactive staffing. Generally speaking, high turnover can be seen within organizations that have a reactive approach to hiring. This means that such organizations wait too long before they staff-up. When this happens they not only need people but also they need them fast (-and in some cases yesterday). In such environments, managers are being pressured to produce results faster and with limited resources. During the same time the HR Manager is working overtime, just trying to find the first "some what" good fit; but not neccessarily the "best fit". Needless to say, the requisition turnaround time is high and due diligence is not optimum. Reactive hiring usually results in low performance of the company because the wrong talent was placed or the talent acquired quit due to unrealistic expectations. Even worse, in some cases, wrongful termination lawsuits could bring the company to a screeching halt.


Therefore, in order to plan effectively, the HR Manager needs to be involved in some key operational meetings where the strategy for the business is being developed. If the HR Manager is aware of the business direction, then he/she can work proactively with the department managers to formulate a staffing plan in accordance with the strategic goals of the company. If this is done in advance, the HR department can then perform effective searches and present "the best fit" candidate to the hiring managers. In a proactive approach, ample time can be given to aligning the candidate's skills to the job; which eventually will affect the performance of the company.

If you think that this is not being realistic; that many jobs do not directly affect the performance of the organization, then consider this. A proposal for business comes via mail to the mail room. The person you hired was "just o.k.". You thought, that the mail room job is not that important, so anyone who can file will do. The person you hired was more interested in the clock out time and not so much in timely mail delivery or "information distribution". So, the delivery was delayed by a day. Unfortunately, the client wanted a 24 hr intent letter for this multi-million dollar project. This is only an example. The point here is, EVERY job is important; otherwise, why have the position?

It is unfortunate that many executives discount the role of HR and merely see it as an employee policy enforcement unit. As such many HR Managers are often left out of the critical initiatives of the company. Yet, they are held responsible for finding the right talent; and are often criticized for finding the wrong candidates.


A company's performance is directly related to its Human Capital. The right employee, in the right job can produce millions in revenue. At the same time the wrong talent can reek havoc at the bottom line of the company. Therefore, staff requirements need to be planned ahead of time, and the HR Department needs to be kept in the loop of the major initiatives so that they can acquire and retain the "best" person for the job. -And this is why HR does play a vital role in a company's performance.


Question: How involved is your HR department in strategic planning initiatives within your company?





Do you Need help with Performance Improvement within your organization? Give us call at 866-361-1275 (toll free)



Till Next time....



Salman Khan

CEO & Senior Advisor

skk@skkservices.com

www.skkservices.com

Project Management Office; A Quick Start Guide

This weeks topic will be on Project Management; specifically on the indicators that tell you (as a business) that it is time to set up a Project Management Office, What does a PMO mean, how to go about implementing it, and finally how to ensure that the PMO is effective and efficient.

So lets get started.

1. What is a PMO:

A project is different than operations because projects have a specific beginning and end. Project Management is the application of tools and techniques to ensure that projects get executed the right way and yield the desired results.

A PMO (Project Management Office) is a business unit within an organization that manages a group of individual projects or multiple programs within the organization and monitors and ensure the delivery of the projects or programs.

2. Indicators for the need of a PMO:

The typical indicators of the need for a PMO are:

• Initiatives in the organization are not ending as planned
• There are significant cost over runs
• Lack of control of the tasks within initiatives
• Frustration and confusion among the workforce on the purpose of various initiatives
• Unexpected reactions to implementations

There are many other indicators. However the ones mentioned above are the more predominant.

3. Implementing a PMO; the correct way:

A PMO is not a one person business unit. A PMO is a little more involved than just having one Project Manager within one's organization.

Having clarified that point, the implementation of a PMO involves:

1. Verification of the indicators
2. Management buy-in
3. PMO implementation structure identification
4. Budget allocation
5. Resources identification
6. Workforce buy-in
7. Inauguration
8. Execution

A brief explanation of the above points are as follows:

First the indicators need to be verified to ensure the need for a PMO. This is usually done under the direction of Management. Depending on the organization size, a task force can be created to conduct an analysis and present its findings to the Management or the Management (typically including the CEO, COO, CFO and CIO) can conduct this analysis themselves as well.

Once the indicators have been validated, it is important for the Executive Management (and/or Board) to fully support the implementation of a PMO. It is important to clarify that implementing the PMO will increase costs in the short-term; however the cost will decrease and benefits will increase once the PMO has been established and has gone through a maturity cycle.

Next, the Management needs to decide what powers to give the PMO. This involves understanding the company structure and then deciding how much authority the Project Managers will have over the functional managers.

The structure will determine the budget that needs to be allocated. Some organizations first establish a budget and then conduct the Matrix Identification exercise (i.e. the power of the PMO). There is nothing wrong with this just as long as the organization understands that it PMO success is directly proportional to the budget allocated.

Workforce buy-in involves educating the worksorce on the benefits of a PMO. A PMO typically increases the workload for employees as they will need to perform additional functions during their work to satisfy the PMO requirements as it related to their tasks. Resistance to this can be significantly reduced with the proper training and incentives.

The official launch of the PMO, which includes a PMO Director and several Project Managers, is conducted by an official internal memo and/or press release. This step gives the PMO legitimacy within the organization and should not be skipped.

Finally the PMO goes into the execution phase where it implements Project Management Best Practices as well as the tools needed for running the PMO.

4. Ensuring PMO Success:

This is a very critical piece within the whole PMO implementation process. It is very important to understand that the PMO "will" receive a lot a resistance from the workforce. -And when this happens the Management needs to be strong and re-enforce the longterm objectives and the reasons for the PMO.

Many-a-times, the Executive Management will crumble at the first sign of resistance. When this happens, the effectiveness of the PMO plummets and will never be able to effectively function.

Therefore, the PMO Director and the Management must follow the steps in point #3 (above) to ensure that the resistance has been identified and that at least 80% buy-in has been obtained. Unfortunately, there will always be some people in the workforce that will never accept the PMO and its objectives. This is where the PMO Director's skills as a strong communicator will be put to test.

In summation, a PMO can ensure smooth operations by successful project delivery. However, the way the PMO is formed, implemented, and executed will determine its own success.

Question:

Have you seen the indicators for a PMO in your company? Have you implemented a PMO and if so what have you experienced?

If you need more information on this topic please contact Sal at skk@skkservices.com or visit www.skkservices.com

You can see into the future. Strategy for guranteeing success.

Hello Everyone,
This week's topic is on ensuring success through iterative feedback and monitoring. Most often than none ventures, projects, implementations, and other initiatives fail because the leadership fails to implement proactive monitoring and feedback into the process.

The following is a practical tip/strategy that anyone can implement to ensure success in their tasks. The easiest, quickest, and the least complicated method to implement iterative feedback and monitoring within tasks is to:

1. Identify the feedback indicators
2. Choose the iteration frequency

Identifying the feedback indicator means to select the unit of measure by which one will determine if the progress is going as planned or not. The unit of measure is dependant on the task that is being performed. In many cases it is as simple as asking "Are you satisfied thus far?" or "Is there resistance". In other cases it could be the measure of the rate of implementation against a deliverable timeline.

Once the unit of measure has been identified, then the next step is to determine the frequency of the iteration. This means determining how often will the unit of measure be checked. This can be by day, week, or level of production, etc. For example, one may want to check the feedback indicator every week, every time 10 units are rolled out, or every time a milestone is reached, and so on.

Yes, I compare implementing iterative monitoring and feedback to the ability of seeing into the future because if one implements iterative monitoring and feedback processes, one can gauge how the tasks are progressing and can predict the outcome with a high degree of certainty; provided that the two factors mentioned above have been accurately identified and implemented.

To illustrate this with an example, if one is implementing a new process within Operations and using the iterative monitoring and feedback techniques one find out that there is much resistance then one can conclude that if the present course is not altered in a way to reduce resistance then the change will most likely fail. The same holds true for the opposite; that is if the monitoring and feedback indicators show that the change is being received and implemented with little resistance then success is ensured.

Therefore, do not discount implementing iterative monitoring and feedback within initiatives. It could be the difference between success and failure.

Question of the week:
Do you implement iterative monitoring and feedback within your initiatives? If yes, then what have you noticed? If not, what have your results been?

Till next time...

Sal
www.skkservices.com

Ensuring a Successful Process Change Implementation

Instituting change in an organization is not an easy task. Generally speaking, the larger the organization, the harder it is to manage change and ensure its success. However, in my experience I have seen small organizations struggle with change.

Change Management is a whole other topic in its self that has its own intricate processes. In this blog we will look at a larger issue of successful implementations of changes versus those that fail; why do they fail, and how to avoid from failing.

Successful process change implementation is dependant on the following two criteria:

1. Communication
2. Speed to delivery

Let us examine each one individually. However, let me first set the context of process improvement. In this blog, by process improvement we are talking about taking an existing process within an organization and improving upon it whereby changes are make to the process flow resulting in the process being optimized.

1. Communication:
Typically when any process that requires improvement has been identified it is because the stakeholders have determined a need. When the process (needing improvement) has been identified, there is usually a discussion among the stakeholders about what is wrong and how to improve it. This communication usually decreases with time as the process improvement begins; resulting in the process improvement being dragged on beyond its scheduled completion date.

The cause of this type of behavior of the change process is due to the lack of communication among the stakeholders. Slow or negligent communication causes people to forget and/or lose focus of the main driving factor for the change in process.

The solution is to establish a communication plan that routinely informs the stakeholder about why the process is being improved, how it is being improved, where in the process doe the change implementation stands, etc., In other words keeping the discussion and awareness of the process change alive.

2. Speed To Delivery:
The second factor in failed process improvement initiatives is unnecessary extensions of the time line for implementation. Speed to delivery is defined as the amount of time required from the inception of change to implementation of the enhanced process.

Common causes to slow down the speed to delivery is improper or non-action by stakeholders, poor communication, and lack of enthusiasm/urgency.

Improper action means to conduct activities that are not related to the process improvement initiative. Poor communication has been mentioned above. -And lack of urgency means that the stakeholders do not give the process that is being changed the attention it truly deserves.

To correct this issue and to instill the sense of urgency, stakeholder communication should be optimized. The communication should remind the stakeholders of the significance and reasoning for the change.

In summation, successful process change can be implemented by keeping the motivation/energy high. This is done by continuously communication and encouraging a sense of urgency by reminding everyone the reason for the process improvement efforts.

Question:
Do you agree with this blog? If you Dis-agree, please state why?

Till next time....

Sal
http://www.skkservices.com/

What can you excpet during a performance improvement implementation?

This week we will look at the various stages that organization experiences during performance improvement initiatives. I will show you what you can expect; what does it mean; and how to deal with what you are experiencing.


Using the very famous "Stages of Competence" i.e. the Competence Model as comparison, I will demonstrate exactly what happens from inception to implementation.


The origin of the Competence Model rises from the field of psychology and deals with how people learn and progress. According to the model there are four stages, and they are:


1. Unconscious Incompetence
2. Conscious Incompetence
3. Conscious Competence
4. Unconscious Competence


Let us now examine each stage as it relates to implementing performance improvement and organizational optimization.

1. Unconscious Incompetence

You are at the beginning of the process improvement initiative. At this stage the stakeholders are in the dark and don't know if there is anything wrong with the process. Therefore, at this early stage of implementation, time will need to spent on mapping the existing processes and gathering knowledge via interviewing stakeholders involved.


2. Conscious Incompetence

Once the present state of the process has been captured, awareness has been established. This means that at this stage of performance improvement initiative, the stakeholders are now aware that the process could be improved. However, the root cause has not been discovered. In other words, the stakeholders are not sure what is wrong. Therefore, at this stage of the implementation time will need to be spent on dissecting the process to its simplest form. This exercise will also yield in the identification of the key performance indicators of the process.


3. Conscious Incompetence

At the third of the performance improvement implementation the root cause has been identified and isolated; a solution has been created that will result in a "measurable" improvement of the process. In this stage of the implementation, the new process will be implemented as well. However, the process (at the stage) is very new and needs to be learned and adopted by the stakeholders. Therefore, a process acclamation period is established. Training and awareness efforts are conducted as well.


4. Unconscious Competence

This is the final stage within the performance improvement implementation effort. At this stage, the stakeholders are very familiar with the improved process. The improved the process is now reached first level of maturity. This means that the process is now a part of the work flow. It has been adopted by the stakeholders and is considered part of the operations of the company.



In summation, we can see from the various stages that take place during performance improvements initiatives that it is important to understand what happens, when does it happen, what to expect, and how to deal with it. Each stage has its unique challenges. Having this knowledge has helped many people navigate their way through the difficult waters of process improvement implementation initiatives within organizations.


Question:

After reading the blog, do you agree with the analysis here? Have you experienced the same stages of competence in your organization?


Please subscribe to this blog so that you are alerted every time a new topic is posted. Also visit our site at http://www.skkservices.com/

Thank you.

Salman Khan (Sal)

Optimizing your day: 3 Steps to getting things done.

Have you ever went to work or spent time on your day off and toward the end of the day said to yourself that "wow...where did the day go? I did not get anything done today!"

Sometimes it is alright to play hookie...yes even at work, provided you have been productive in the past. However, if you continue to not perform (or get things done), then soon you will find yourself without a job /work.

Sometimes not getting stuff done is unintentional and the circumstances may be our of your control. However, 9 of 10 times this is not the case. When people don't get stuff done, it is because they got distracted or lost focus on their own accord.

Below are 3 steps that anyone can follow to help get things done.

Step 1: Write it down

The very first and fundamental step is to write down what you are planning to do. What you create is called an "activity list". Set aside 15-20 minutes everyday in the morning, when you begin your work, to write down what you intend to get accomplished today.

Step 2: Prioritize your work

List items on your to-do list in the order you would like to get them done and place a number in front of each item. Use a new sheet of paper if you need to.

Step 3: Follow the plan

As you progress through your day, refer to your activity list. Go through the list in the order you marked it.

It is not uncommon to get new "things to do" on your list and/or for the priority of the tasks to change. If you get a new task, just add it to the list, and prioritize it. Then, re-prioritize your existing tasks if you need to.

If you keep referring to your activity list often through out the day, you will have something tangible to reflect your progress for the day.

The other benefit to writing your daily is that the following day you already know what needs to be done at that time.

Now, there are man products that are out there in the marketplace for you to buy that will aide in keeping focus on your daily activities. I would like to mentioned that he SKK Planning System is also one such inexpensive tool that has helped and continues to help many people focus their activities.

Question of the Week:

I welcome comments on the blog. Also, my questions to you are: Do you follow a daily planning routine? If yes, tell us your experience. Do you use a planner? If so, which one?

Regards


Sal

http://www.skkservices.com/

3 Rules of Optimized Communications

Today's blog is about some basic communication strategies to ensure that the right message gets to the right person.

Projects and business relationships fail because of improper communications. I guess this holds true for personal relationships as well. However, as this is a blog focused on business optimization strategies, we will keep personal stuff for another time.

Communications can be in the form of written or verbal. Communications can be informally structured or they can be formal such as an inter-office memo or press release. Regardless of the communication type there exists some common features. In any communication at there is a sender, receiver, and a message.

Rule #1: Identify the right method of communication
Not everyone likes to receive information in the same medium. Some may prefer face-to-face, while others may prefer an email. Therefore, whether you are communicating with a vendor or internally with managers or employees identify who responds to what type of medium. Create a spreadsheet that has a group or persons name and write the preferred method of communication.

Now in large organizations or projects you may want to identify communication methods on an individual basis for decision makers and have group-wide methods of communication for the rest.

Rule #2: Say it so that you cannot be misunderstood
The message is equally important as the type of communication. Get to the point. Many times emails or phone messages go on and on and the receiver ends up more confused then before. Communication is all about getting the other person to receive what you intended to deliver.

Therefore, start your communication with "the purpose of the message". State in clear terms why you are calling or writing. After the main purpose of the message then go in to any background story. However, if you have a long story, you must re-state your "point" at the end again. This is done so that there is no room for misunderstanding.

Rule #3: Follow-up
Some communications require a follow-up. This is so that the message and its intent is re-enforced to the receiver. Many-a-times, important decision communications will not be followed up and this results in the wrong decision being made.

One would think that if the message is clear and written or stated in a way that the chances for misunderstanding would be negligible. Unfortunately, human nature is to interpret what one wants to hear. Therefore, I recommend that for certain critical communications, a follow-up is very important.

In conclusion, identify who should receive what type of communication and in which medium; state the point of your communication; and finally if the communications is critical, always follow-up.

QUESTION:
Please comment to this post by answering: Are there communication issues in your company or project? If yes, what are the root causes? If no, what do you attribute the success to?

Thank You

Sal
http://www.skkservices.com/

Optimize Solution development, delivery, and effectiveness

This week's blog will focus on a four step process to optimize Solution development, delivery, and effectiveness using the APPS Methodology.

A.P.P.S stands for Analyze, Process, Plan, Solve.

These are four very simple ways to improve solution delivery and effectiveness. However, optimizing solutions, solution delivery, and solutions effectiveness is not just about applying these four steps; it is all about the creating the right mix of each.

What is the right mix? Is it a standard formula?

These are both good questions, but before I answer those I would like to explain what each process entails.

1. Analyze:

This is the first step to solution delivery. Analyze means to find out what is the current state. This step is about gathering data and creating information from the data that will help you identify a baseline of the situation for which you are in the process of solution delivery.

A baseline is a realistic and reasonable reference to the present state against which future progress will be measured.

To Analyze means to ask relevant questions e.g. how long have you been in business, how many products do you have, what are your sales figures, how many customers do you have, etc.

Basically you want to ask questions that give you hard data and not generalization (or soft data).

You also want to identify the goals and objectives here so that you know where you want to go, i.e. what results you are trying to achieve. In other words what will the solution solve?

2. Process

If you recall in the previous step we motioned collecting data to make information. Information is a derivative of data. This means that data by its self does not mean anything. However, once organized, it becomes information. Action is based on information. Therefore, we can see here that results and quality of data are directly related.

The common mistake people make here is that they jump from Analysis to solution. Process means to research and make sense of the information. It means to validate the information and ensure that data is the right data.

An example would be of researching external sources for industry information like stats and trends, talking to others who have experienced the same, are the goals realistic, is the time frame realistic?, etc.

3. Plan

Once you have analyzed and processed, the next step is to create a plan of action, which is also known as the solution. Creating a plan involves planning activities where you device strategies to take you from point A to point B. Creating a plan leads to a solution. Think of a plan as a map. A map that will guide you towards the results that you set out to accomplish in the first place.

The ingredients to the plan are the information you collected from the analysis and process phases. This is not as simple as it sounds. Creating plans can be a very time consuming activity. Depending on the solution you are trying to produce, it may involve creating models, experimentation, surveys, etc.

4. Solve

The last step is where the "road meets the rubber" as they say. Now that you have your plan, you must implement it. This may be an obvious "next step", however, this is where people fail the most. To solve means to put your plan into action.

If you have done a thorough analysis, have processed the information diligently, and planned with the solution in mind, then there should be no reason for failure. In fact your solution will be highly optimized and will yield exponential results.

This above four steps are what is required for solution development, solution delivery, and solution effectiveness.

Now to answer the two questions:

What is the right mix?

Unfortunately there are no industry standards which define the "right mix". Having said that fortunately for us there are models, studies, and countless examples inferring that the effort involved in an "effective" solution delivery is usually only between 10%-30% of the overall effort involved in creating the solution, i.e. the analysis, process, and plan phases take a total effort of anywhere between 70%-90% of the overall effort.

Is there a standard formula?

Again, the answer is no. Each industry and each solution is a result of a unique combination of analysis, process, plan, and solve phases involved in solution development, delivery, and effectiveness. However, as mentioned before, there are guidelines and solution delivery models. It is important to know that the competitive advantage, which is the result of a unique combination of each process (analyze, process, plan, solve) is attributed to effective and optimized solution development and delivery techniques.

Till next time

Salman K Khan (Sal)
http://www.skkservices.com/

Risk Mitigation 101: Always have alternatives

Risk mitigation is a process whereby one identifies all possible adverse events (risks) relating to a certain action or event and then creating strategies to reduce the impact should the risk event occur.

Risk mitigation is all about planning ahead. Regardless of the action/event e.g. implementing a new procedure, performing a seminar, making a sales call, etc; risk identification and mitigation is an important step to ensure a favourable outcome.

Let us take an example. Assume Acme Corporation (a fictitious company) is in the process of implementing a new procedure that will increase performance within the operations. This new procedure involves altering the work flow of customer paperwork relating to a certain product of Acme Corporation. Acme is planning to introduce a change whereby the present path of the customers paperwork which is from Dept A to Dept C to Dept E will be altered to a more efficient routing which would be Dept. A to Dept. E and bypassing Dept. C all together.

Acme is now in the implementation phase of the new work flow. Sounds simple enough. However, if Acme does not pause here to identify what could possibly go wrong with the implementation and if they do not create solutions to those events, should they occur, then even simple implementation project can turn in to a nightmare.

For example, Acme customers may be used to dealing with a person from Dept. C, how would the company deal with customer complaints or inquiries? Should a threshold be determined before reverting to the old work flow? Should a complaint resolution process be defined?

Another example could be Dept A may need to learn new skills for this new work flow. What would happen if they encounter a process that usually handled by a Dept C person? What is there are critical vendors that do not like the new procedure after it has been implemented? It would be very difficult for Acme to deal with such scenarios "on the fly".

Sales people can also apply this same principle of risk mitigation preparedness. For example sales people would create strategies for various rejections, i.e. what actions would a sales person take should the customer say X, Y, or Z in response to the product, price, quality etc.?

Therefore planning ahead, identifying issues that could negatively impact the outcome, and creating alternatives should be part of any planned action and/or event to not only ensure success but to make the process smooth.

Sal
www.skkservices.com

How successful people handle failure

So often I hear people hoping and praying that they don't fail. Why are so many people fearful of failure? Everyone, at some point experiences failure. Some once while others more than once.

Successful people (or companies) do not fear failure. They know that failure is just an event. They know that when this event occurs, they should not ignore it. They analyze the circumstances and get to the root cause of the failure. They take corrective actions and, most importantly, they do not stay idle too long and move beyond this event.

Failure is a key ingredient to success. The point to remember here is not to act in a way that invites failure, but to acknowledge the event when it happens and to take steps to ensure a better outcome. Now, failure is an event and for some this event may occur more than once. Continue to actively analyze and apply corrective actions.

One should do his or her best in whatever one does in life (or business). Put forth a sincere effort. -And if, whatever one does, does not work; then learn from it and don't do it again. Try something else. If failure happens again, then learn from it again, and try something different again. Just because one ad campaign fails or a few employees do not work out, or some one cheats you, this does not mean you pack up and go home. On the contrary; analyze what happened, determine the root cause of the problem, and make improvements to ensure the same thing does not happen again.

Successful people do not sit idle. They do not repeat their mistakes. They learn from their mistakes and move forward.

"When one door closes another door
opens; but we so often look so long and so regretfully upon the closed door,
that we do not see the ones which open for us." - Alexander Graham
Bell

Growth startegies based on customer feedback

Have you ever received a customer survey from a company after you have purchased a product or service? Odds are that you have received a feedback survey in some shape or form.

Surveys could be formal or informal. Formal surveys ask you give a rating of sorts. While informal surveys are usually verbal. Most large companies offer formal surveys, while many small businesses take informal surveys. Obviously there may be exceptions to this, but generally this is the case.

Surveys are a great way for a company to find ways to improve there delivery of products and services. However, many companies do not know how to read the scores and what actions to take based on the results.

In this blog I will show how to read the scores and what actions to take with both existing customers and prospects in order to directly affect company growth.

A company's growth is directly tied to the satisfaction of its customers. There are three basic customer satisfaction scores: High, Medium, and Low.

High Score:
Receiving a high score in customer satisfaction means that your customers are likely to buy from you again; recommend your products and services; and you are very likely to close sales with prospects with little effort.

What this means to your company is that your company needs to continue to provide a high level of service to existing customers. Your existing customers are not only generating repeat business but also acting as your marketing arm. The company would also see the costs for closing new prospects decline. The difference would directly impact to your bottom line in a positive way.

Medium Score:
A medium score is no reason to rejoice. However, you should be grateful that is was not a low score. A medium score can be interrupted in a way that your existing customers are undecided on whether to award you repeat business; they are also not sure that they would recommend your product or service to others.

At this level a company should focus on its post sales support process. Just because a sales has been made and a product or service has been delivered, it does not mean that service stops. Determine from customers what corrective actions could be taken to move your score higher. Then follow through and implement those corrective measures. Inform prospects of the new measures in place to gain their confidence.

Low Score:
A this level your existing customers wished that they never signed on with you; not only will they not be a source of repeat business but will voice their dissatisfaction to prospects as well. Your

A this stage the company needs to take drastic measure to improve its products and services. A simultaneous approach will need to be implemented, i.e. improve services with current and active customers, increase post sales support by using incentives based methods, and the company will need to improve its image in the market place to attract new prospects.

In conclusion know the score; track the score; and adopt an appropriate strategy based on the score.

Till next time

Sal

http://www.salmankkhan.com/

How to develop a scorecard?

Everyday business owners and career professionals are faced with making decisions. Some decision are easier, while others are a bit complicated. For complicated decision does one "go with their gut or feeling"? or is there a better, more reliable approach?

One reliable method is the use of "scorecards". Scorecards are used to tabulate results to make an effective decision on the best solution (or course of action) when dealing with multiple decision factors.

Scorecards are very common in large organizations. However, recently implementing the scorecard methodology has become increasingly popular among small and mid-sized businesses. So, how does one assemble and effective scorecard?

The final scorecard product, in many organizations, looks like a table drawn on paper with many rows and columns. The number of rows and columns depend on the number of solutions one is deciding between as well as the number of decision factors.

Let us build a scorecard:

1. Start by writing down the names of the items you are deciding among, e.g. Company A, Company B, Company C.

2. Write down your decisions factors, e.g. Customer Service, Local, Public Company, etc.

3. Draw a table with rows and columns. The number of rows should be equal to the number of items you are deciding between (See #1)

4. The number of columns should be equal to the number of decision factors you are deciding between (See #2)

5. Once you have created your table you will need to add a weight (number) each decision factor i.e. how importance, from 1 to 10, do you place on each decision factor, e.g. Having good customer service for you may be 8, while having the company local is 10, etc.

6. After weighting the decision factors, you then tally the scores. In this example the highest score wins, and therefore your calculated decision should be to opt for the solution that has the highest score.

The scorecard method replaces the "gut feeling" approach and ensures a calculated and well though out decision process.

How to obtain Competitive Advantage

Ask yourself the following question:

"Am I the envy of my competitors?"

If the answer is anything other than a resounding "YES" then there is a high likelihood of the company not having a competitive advantage in the market place.

I define competitive advantage as:

"A unique combination of all known attributes, universal or derived, that attribute towards superior performance."

Having competitive advantage is a good start. However, competitive advantage needs to be sustainable if success is desired. Companies gain competitive advantage by utilizing one or more of the following:

1. Price
2. Breadth of Products and Services
3. Operations
4. Marketing
5. Workforce
6. Client Servicing

Price:

Price positioning is often a commonly used strategy where there is a lot of competition. Many companies constantly monitor their competition's prices and not only try to match but beat prices. Consumers are winners in this scenario but many times quality suffers. Customer loyalty is the lowest. Walmart is a good example.

Breadth of Products and Services:

A company can obtain competitive advantage by offering a variety of products in the same category. Rather than being specialist, the company gains advantage by being a generalist. Proctor & Gamble is a good example.

Operations:

How the company operates its business and streamlines its operations can be also a very big competitive advantage. Many companies continue to optimize operations and limit activities that do not produce the desired results. Toyota is a good example.

Marketing:

Product and service placement can also attribute towards a company's competitive advantage. Traditional media advertising, Internet only, targeting the high net worth, frequency of the campaign, etc. are a few ways companies can gain advantage over their competition. McDonald's is a good example.

Workforce:

The quality and capability of human capital of a company can also be a competitive advantage. Companies that value one's workforce and provide the right tools necessary to support the activities of their staff many-a-times gain competitive advantage over their competition. Google is a good example.

Client Servicing:

Processes and activities focused on customer issues be a great competitive advantage. This generates customer satisfaction and loyalty for the long run. Starbucks is a good example.

Use this information and identify your competive advantage.

Good Luck.

Tiill next time....

Sal

http://www.salmankkhan.coom/

http://salmankkhan.blogspot.com/

Economic recession worries got you down? Solution: Initiate

Recently all one sees and hears on media is "recession, recession, recession". Now I am speaking in for the US Market, but there is also a global recession in the works.

Let’s just get to the point. Recession is upon us or coming soon. What does this mean for the entrepreneur or small business owner? Contrary to what you may think that recession is bad...this is a great time for your business. Look at the tremendous opportunity in the market place. Recession weeds out the wanna-be's. The people who truly believe in their product and service will be the ones standing.

So how do you ensure your survival? The answer is very simple, which is that you must initiate and be proactive.

You must move away from waiting and hoping for business and start moving towards creating a need/desire for your product/service.

You can start to make calls everyday. Start with your existing customers. Call them or go visit them in person. Spend time with them. Improve on your existing relationship. Find out about their short-term and long-term needs. Ask them about their industry trends. Find ways to align your product/service inline with their needs. This will generate value and when the value surpasses the need, it turns into a "want". -And once that happens all you have to do is to ink the deal.

Extend your approach to prospects as well. Make a proactive effort to make a new prospect appointment each week (every day would be ideal). Visit the prospect. Build a relationship. Find out about their needs and wants. Prior to the visit research their industry trend. Find a way to align your product/service with their needs in order to convert their need in to a "want" thereby heightening value of your product/service.

Do this everyday and often and you will insure your success in this economic recession. You can also match needs and wants of the various people in your network, i.e. match your clients with prospects and vise-a-verse.

Ever heard of the phrase "only the strong shall survive" or "survival of the fittest". This is the time to show what you are made of. All the businesses that are waiting for stuff to happen will have a hard time to live through this phase. If you are proactive in imitating contacts then your chances will much better.

Till next time!

Sal
www.salmankkhan.com

Tips to align yourself and your presentation with the client and their needs

I am frequented by many sales persons and therefore I get to see the differences between a good sales person and a great sales person.

This blog will focus on how to approach your prospects and align your self with not only them but also their needs. I will discuss "practical" techniques on strategic client alignment. Through out this blog I plan to use prospect and client interchangeably.

Let’s start with the don'ts. The best advice I can give you is do not approach the prospect and start to ramble on about your product and/or service. Also, do not appear to listen; but actually listen to their needs. -And whatever you do, do not force the product on the prospect. This will leave a bad feeling with them and will guarantee no repeat business or referrals.

Now, let’s focus on the do's.

Always be cheerful, greet your client with a smile. Look sharp, and where permissible have a firm yet comfortable handshake. If you are wearing a jacket, make sure you open the button when you are making your presentation and NEVER cross your arms during the presentation.

Do establish a repertoire with the prospect. This means take a few minutes to ask them about their day, talk about anything EXCEPT politics and religion (unless you are selling in that industry of course).

Conduct a needs analysis by asking them their pain points. Repeat their concerns to them so that both of you are on the same page. Expose other areas of improvement, but do not be critical. Make sure you address this matter as objectively as possible.

Empathize with the prospect, but do not side with their problems. Acknowledge the problems and offer sincere empathy.

If you feel that your product/service will satisfy their need, and then offer solutions to their pain points. For each of their issues, specifically address how the product or service will provide the solution. Do not move to the next point till the prospect has agreed or understood the solution that the product/service offers.

You will notice that with such an approach you will create a value for your product. When the value is established and the "need" turns into a "want", price is not an obstacle.

Till next time....

Sal
http://www.salmankkhan.com

Research, research, and research some more!

The other day I heard on TV that Donald Trump learned his success strategies from his father, who was a very successful real estate developer himself. According to the program it was stated that the reason Trump's father was successful (and the one of the important factors to Trump's own success) was that he always made it a point to find out the cost of everything. This gave him a lot of leverage in negotiating with contractors.

So the question is that does this principle apply to all industries? The answer is most definitely yes. Not only does this principle apply to all industries but it applies to all areas of life and work. It is even more relevant when dealing with not only vendors but also clients.

Before you make that call to a prospect make time to research that prospects business and industry information. You should plan to make "research" a regular task in your approach planning.

If your prospect/client is a publically traded company then the research is easy. Just go on their website and read up on the company, any latest news, etc. Go to the public library or a book store and scan through some industry related publications, trade magazines. Scan through the news paper or web for industry or company related news published on blogs and other non-traditional news medium. You can also subscribe to sites that offer public company research such as Bloomberg, Hoovers, etc.

If your prospect is private then you can still do industry research. You can contact their local chamber of commerce and find out about them i.e. if they are a member. If they have a site, you can scan for information there as well. As with publically traded firms, scan their industry related trade journals and other publications.

In summation, do your homework. Be prepared to talk intelligently about the prospect/client's industry and other news that affects their business. A little prep time will make you stand out from your competition.

Till next time...

Sal
www.salmankkhan.com

Managing Customer Expectations

As we engage a client and get busy on working with them, many-a-times we lose sight of the real reason the client hired us or bought our product. Everyone is guilty of this at some point in their career.

Here is a quick tip to help you keep your customers needs (expectations) always in front of you. When you are successful in converting your prospect into a client, then start by writing a quick thank you note in which you not only thank them for their business but also outline their expectations.

This small action can be the difference between a one-time client or a long-term client relationship. Regardless whether you are selling a product or a service, writing this letter allows you to register the customer's expectation from dealing with you. This also instills confidence in your customer and shows that you have understood their needs.

However, the most important benefit of this action is that should there be a difference in what you heard and what the customer wanted (expectation) then you have managed to capture this at a very early stage in the relationship and averted ill-feelings and dissatisfaction down the road.

Till next time

Sal

Remain True To Your Core

Many entrepreneurs and small business owners tend to do everything themselves. Though this strategy may save some money upfront, more times than often this route ends up costing more in the long run.

As business owners you must devote all your efforts to your core activities in which you are an expert. Don't try to do everything yourself. For example if you are in the insurance industry and sell car insurance, go sell car insurance. Leave the bookkeeping to an accountant; the website to a web developer, etc.

Now-a-days there are many inexpensive sources to find all the needs for your business at very reasonable costs. As you begin to let go of activities that take you away from your core expertise you will notice that you are more focused on activities that help you grow you business. You will have more time. Also, for the items that you outsource to vendors you will receive quality work. This will also have a positive impact on your business.

So, learn to let go and look at the long term benefits rather than the short-term costs.

Till next time

Sal
www.salmankkhan.com

How to get to the beginning?

In order for one to be successful one must begin. From a child to an adult every person knows what they would like. However, adults (like children) , do not know how to take that first step in order to get what they want. In other words they don't know where to begin.

Many intelligent and gifted people have failed to make it big, because they could not begin. It was not that they did not know what to do; rather they failed to take the first step. They failed to start simply because they could not determine the place to begin. Instead they kept planning and planning, till time left them behind.

One of my favorite quotes is by Mark Twain who stated:

"The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.”

This is very true. Here I will show you a simple exercise to breaking down your goal in to smaller, manageable, and actionable tasks. If you practice this and do this exercise when planning your goals, you will have a greater chance of success in finding out the right place to begin in order to reach your goal.

Start by taking a piece of blank sheet of paper. Write your goal on the top center.

Next ask yourself how you would get to your goal, i.e. what "task" would you need to do get to that goal. Now write it down underneath the goal.

Next Ask your self the same question for the task you just listed and write down the second tasks under the first task.

Continue to repeat the process i.e. ask the question for each task you list till you cannot go any further. You can stop when you reach the task that is obvious or logical, i.e. you do not need to write it down in order to execute it, e.g. "wake up in the morning!"

That last task that you wrote is your beginning point. Start there and then move up the chain till you reach your goal!

Remember that if you don't start you will never finish!

Good Luck.

Till next time.

Sal
http://www.salmankkhan.com/

After Sales Service

Many of the clients that I come across fail to service their clients after they have made the sale. As a result they lose touch with their clients or even worse only approach them when they need to make another sale.

The number one way to increase revenue is NOT through new markets or clients, it is by cross selling to your existing clients. Therefore, it is imperative to keep in touch with your clients. It does not matter if you have additional products to sell to the client or not. At the very least by keeping in touch with your clients you will gain their trust and confidence and they may become your best sales tool, i.e. your "revenue catalyst"!

So how do you keep in touch with your clients without adding a lot more work on you and at the same time not smothering your clients. First, relax. You have already made the sale. So back off a little. Start by sending out a thank you card. If you get a chance, note their birthdays and send flowers or cards. Call them once in a while, just to say hello. -And where possible help them with their business needs and wants.

Simple steps like the ones mentioned above can make a huge difference in the eyes of your customer.

A little work now, will go a long way in the future.

Good Luck.

Till next time!

Sal
www.salmankkhan.com

Get out of your comfort zone to reach new hieghts!

Are you ready to take your business to new heights?

People who are successful have become so by operating out of their comfort levels. They take calculated risks; they work longer, harder, and smarter. Successful people do not wait for things to be perfect for them in order to go out and make more money or climb that corporate ladder!

Success comes by making things happen; by actively going out and doing that what others find difficult or "too much" to do. Successful people do not whine and over analyze the circumstances; they just go out and do what it takes!

Let me give you an example. One cannot watch TV with out a fitness commercial that shows super hot, hard, and sculpted bodies. What is the difference between those people and those who are out of shape? The difference is that the people on the commercial went that extra mile, ran longer, ate right, and went beyond their personal comfort zone. I can bet you it is not contraption that they are marketing that has anything significant to do with their physical appearance.

It does not matter what activity you are doing, if you do not go that extra mile, you will never be great at it.

Look at successful people in your industry. What makes them different? Why did they have so much success and not you? If you are say that that person was at the right place at the right time, you don't have as much money as he/she did, etc. etc....then you have already failed at your business and have failed to realize that that person was a mover and shaker. That person probably woke up earlier, went long distances to satisfy his customer, and took that extra time to understand his prospect and market, made plans, and so on.

That person could have easily opted to be an average... a one of many. -But that person decided that he/she did not want to be "just like the rest" and understood that it took extra effort to stand out!

I am sure there are many things on your to-do list that you want to do; you know that by doing such things you will stand out....but each time you come to that task, you procrastinate...you make excuses...it not the right time, oh! It won't work; I will do it tomorrow...etc. STOP! Just do it. Get up and make that call you were afraid to, go out when others in your field are staying in. Make that extra effort.

Make it a habit and you will never be complacent again, as you would have tasted the sweet nectar of success and one you have tasted what success feels like you would not want to go back to tasting the bitterness of failure!

Good Luck

Till next time....

Sal
www.salmankkhan.com

Aim High and Prosper

Hello Everyone.

Yes! Sal is back blogging. For my first topic of the year I would like to talk about the power of aiming high!

As you begin the new year and write your goals for the year, I would encourage you to "think big!". The bigger your goal...the better of you will be. For example:

If you an insurance sales person, you could say I will sell 30% more policies this year OR you can say I will increase my service territory, product lines. I will not only sell more policies to new customers, but increase my cross sales to existing clients as well. I will create a network of referral agents etc.

Similarly, if you are in the food and beverage business and operate a restaurant you can plan on increasing your bookings, or you can think big by saying this year I will open more locations, maybe start a franchise, etc.

Or, you maybe a real estate agent and would like to close one sale a month in this economy. However, a better goal could be to explore complementary products that you could market; start your own investment group.

These are just some examples. Do not focus on the goals I wrote above rather focus on the concept that I am preaching, which is to THINK BIG!

Still having problems thinking big? Don't worry, you are not alone. Many people fail to adequately fail to grasp the concept. People seem to not get past constraints like finances, personal situations etc. So try this, imagine you had no constraints (yes...a perfect world scenario); where would you take your career or business?

That's it! Now you are thinking big!

If you think small you will make small progress. Conversely if you think big you will see that in the same time frame you will make huge progress. Even if you do not reach your goals, the amount of distance you cover will be greater than the smaller goal you were planning.

Mind over Matter! Yes! It does work!

Let me prove it to you by a simple example. If your health permits, stand up straight or sit down upright with your legs extended away from your body and toes pointed up. Extend your arms straight so they are parallel to the floor. Now, with your arms extending outwards and without bending your knees touch the tips of your finger to your toes and hold for 30 seconds. Do you feel a stretch? Is is easy or hard? I bet its not easy.

Now return to the starting position and imagine yourself touching an imaginary button that is located beyond the tips of your toes. Do you see it? See it! Feel its presence! -And now do the same exercise; you will notice that you reached further than the previous attempt!

This is because you looked beyond! You thought bigger! You aimed high!

It is like that in life as well as in business. So as you plan your goals for 2008! THINK BIG!

Till next time....

Sal
www.salmankkhan.com