3 Tips to Drawing up a Business Plan for your Startup

Starting up a business maybe exciting but it isn’t a piece of cake! You are bound to come across obstacles and problems, and that’s why a drawing up a business plan for your startup is useful, but missing even a few important points could turn it into a confusing puzzle.

Drawing up a Business Plan for your Startup

Big and small businesses need business plans to attract potential investors and keep their team updated. Don’t even think about venturing into the market without a business plan, if you can’t make one then ask a consultant to do so. Stay active and on top of the market game and under no circumstances let yourself slack off.

If you forget to include these key points, then you risk losing investors and turn your business plan into a puzzle with missing pieces. Nobody likes putting together an incomplete puzzle.

Let’s talk about the few things you miss when drawing up a business plan for your startup!

1. “What If” situations

Prepare for the worst and expect for the best. I think it’s obligatory that you draw up some hypothetical “what if” scenarios in the business plan. They should include anticipated problems and possible solutions; this approach will come handy especially when your company hits big money in profits. Here are some standard scenarios:

  1. “What if” one of the co-founder wants to leave? Is he allowed to sell his part of the business to anyone or current partners will be a priority.
  2. “What if” one of the partners dies?
  3. “What if” business needs another round of funding?

You could allow your devilish mind to conjure up hundreds of unfortunate situations. The more solutions you have, the higher the chance of survival for your business. This will make your business tougher and teach your team to be thick skinned.

2. Mind your Language

It’s funny how people forget the vital role language plays in our lives. I’ve seen too many people look past this and sadly they suffered its consequences. You might not think that it plays a huge role in the beginning of your startup, but trust me somewhere down this road you’ll thank me! Once your business starts flowing and you monitor results of capital investment in marketing, you will see why this actually matters.

Write whatever you speak. This means that use the language you use on a daily basis (in your business execution and interactions) on paper and in documents too.

For instance, let’s assume you handle digital marketing and PR separately. If your business plan is titled as “Marketing Plans”, this could be problematic especially when you try to gauge which channel is giving you more returns and which one needs better marketing budget.

So make life easier for yourself and be particular about wording and language. Make things simple and write in the same manner of speaking. Avoid using jargons or terminology that is out of your speaking routine.

Goals other than profits
Another missing piece to this business puzzle is additional goals to the ‘plan’. I’ve seen too many business plans ignore the inclusion of goals. Of course investors love to see sales growth patterns and revenues, but there’s more than just numbers and profitability.

3. What are some of these goals?

  1. Why are you in the market?
  2. How your product will change the way people think?
  3. How your product is making your customers life easier?

These goals will help your team stay focused and diligent. It will serve as a constant reminder to strive for betterment and this vision ensures quality control and talent within the market.

If you add three of these missing pieces to the puzzle, your business plan is complete. Now you’re ready to entertain investment and experience noticeable success in your business.

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Are You Doomed to Fail?

On the 5th of November Alan Jordan and Ron Immink will go on stage and deliver the log awaited Bookbuzz MBA in a day.

You can still book here.

The Network Always Wins

At Bookbuzz we are huge fans of Peter Hinssen. “The new normal” was one of our anchor books for quite a while.

We have been looking forward to his second book and it does not disappoint. It will become another anchor books in our stable when we work with clients.

VUCA

It touches on a 3 core topics that our clients are struggling with; VUCA (volatility, uncertainty, complexity, and ambiguity), innovation and organisational structures.

Are you doomed to fail?

We can safely say that some of the largest corporations are totally clueless about where to go next, suffer from horrible internal politics and inert boardroom cultures, and have given up the hope of transforming their bureaucracies. Companies are no longer smart enough, fast enough, or innovative enough to survive on their own.

New Normal

In “New Normal”, Hinssen talked about how digital will transform everything. That ship has now sailed. The consequence of digital is that everything gets connected. Which means that everything is networked. Once everything is networked, a lot of things happen. Everything goes faster and network dynamics come into play. Which brings you into the realm of complex adaptive systems.

Networks make things complex (and faster)

Information, intelligence and innovation flow fast through networks.The dynamics in the era of networks seem to be very close to the world of complex adaptive systems structures and organisms found in nature. The key to understanding complex adaptive networks is to focus on understanding the nature of the connections, the strength of the relationships, and the intensity of the information flow in a network.

  • Complex systems don’t have a master plan—they evolve, they emerge
  • Complex systems are built on connectivity.
  • Complexity arises from the interrelationship, interaction, and interconnectivity of all the elements within a system and between a system and its environment.R
  • Complex systems evolve in coevolution.
  • A complex system exists within an environment, but it is part of that environment.
  • Complex systems are not perfect. They are suboptimal.
  • A complex adaptive system does not have to be perfect in order to thrive within its environment.
  • Complex systems are not designed for optimal efficiency, but are based on the concept of perfect enough.
  • Complex systems favour variety and diversity. The greater the amount of variety and diversity within the system, the stronger that system can become.
  • Complex systems are self-organising. There is no hierarchy of command and control in a complex adaptive system.
  • Complex systems evolve on the edge of chaos.

Culture is too slow

A while ago we wrote a post, talking about culture being too slow and that organisational structure is the key to success. Hinssen brings it a lot further then that. You need to become fluid. Fluid strategy, fluid people, fluid organisation. Using network dynamics, the theory of relativity, adaptive and complex system theory, biology, cities, religion (Shiva), Schumpeter (creative destruction), silicon valley, start ups, Taleb (anti-fragile) and entropy.

Become fluid

The key message; the static structures of today will have to be reinvented for the age of fluidity. To deal with VUCA we will have to learn the aerodynamics of the era of networks, and understand how to build organisations that can thrive in a world that speeds up. Companies will have to get in touch with their inner innovation networks, understand how to turn them into fluidity, and avoid becoming rigid corporate structures. If your market is a network, you need to become a network. A fluid, networked, flat, agile organisation.

Anchor book

The reason it will become a Bookbuzz anchor book in our sessions with clients, is because it touched on so many books we have covered:

Generation N

He classifies the millennial not as generation Einstein, Y, E, Z or G (=gaming, those for whom the world is too slow), but generation N. The networked generation.

So what do you need to do?

Network

If your markets are turning into networks, your organisation needs to turn into a network. The hierarchical network is the least important network. In a world of six degrees of separation, nobody care about your title, they care about what you do.

Vacine

You need to apply VACINE

  • velocity
  • agility
  • creativity
  • innovation
  • network
  • experimentation

You need to fail forward

Failure is a manifestation of learning and exploration. If you aren’t experiencing failure, then you are making a far worse mistake: you are being driven by the desire to avoid it. And, for leaders especially, this strategy—trying to avoid failure by outthinking it—dooms you to fail. It makes you rigid and that is business suicide.

You need to stay at the edge of chaos

For example, Netflix deliberately and “unexpectedly” sabotages its own systems with the Chaos Monkey algorithm, which kills processes randomly. It haphazardly disables production instances to make sure that they can survive common types of failure without any customer impact. So, by being constantly under fire, its processes grow stronger. And the more frequently failure occurs, the more the organisation learns.

You need to know the the clock speed of your company

The phrase “Here today, gone tomorrow” has been replaced by “ Here today, gone today. There is an accelerating external clock. So he asks the key question. “What is the internal clock speed of your company?” How fast does it cope with change? Inside your organisation, how quickly does an idea evolve from a brainstorm into a marketable service or product? Internal clock speed itself is irrelevant nowadays. All that matters is whether you’re moving faster than your market: Is your internal clock outpacing the external clock?

You have to find your hidden innovation network

The first thing most large companies will have to do is to rediscover their hidden innovation network and unlock its potential. Industrial Age structures, mechanisms, and strategies aren’t helping them win the hearts and minds of networked workers and customers.

You need to unfreeze your own thinking first

For anyone in a large corporation, in an Industrial Age construct, we wish you all the best in unfreezing your company, your structures, and, perhaps most important, your own thinking. Bookbuzz can help you do that.

Bookbuzz MBA in day

We will be covering this book at the upcoming Bookbuzz MBA in a day. Your opportunity to get a full overview of the latest business thinking from hundreds of the latest business books. Book here.

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5 Reasons Cloud Communication Is Vital For Business Prosperity

There is more to running a successful business than just having a good niche in the supply and demand market. Keeping customers satisfied and maintaining a high level of quality customer service is the key factor in how many customers come back. But what allows a good business to meet these demands in a highly competitive and global market? In today’s market economy, technology is the make or break point. Having up to date technology that is easy to use will keep your business running smoothly and more optimal. Today’s up to date technology is cloud based communication systems.

What Are Cloud Based Communication Systems?

Communication systems that utilize the internet as opposed to a computer’s hard drive for accessing programs and data are known as cloud based communication systems. These cloud based systems basically do all their work in the ‘cloud’. This process is known as cloud computing. Cloud computing can take place over various systems; some can be accessed through applications from purchased subscriptions such as Google Apps, Microsoft Office 365 etc. Further, you can smoothly integrate Office 365 with cloud based phone system to enhance your peer-to-peer and clientele communications. Others can take place from a custom created application designed and implemented by the company for everyone within the network to access.

A few of the more commonly used business cloud computing technologies are:

  • Software as a Service (SaaS): these are purchased subscriptions
  • Platform as a Service (PaaS): these are the custom made ones
  • Infrastructure as a Service (IaaS): these can be rented out from much larger corporations such as Google or Microsoft.

Cloud communication systems are a huge business in and of themselves, generating billions of dollars a year. Here are 5 reasons why you should consider looking into a unified cloud communication system for your business like many others already have.

Advanced Features are More Affordable

Advanced features are often the most sought after in the industry as these features integrate your business’ technological capability. By providing easy access to integrated capacities such as conferencing, presence, phone, messaging, and even mobility, you are putting your business at a greater advantage over others in your market area. Buyers do need to know up front that some cloud based systems utilize storage of some data in the devices there on-site so some mobility issues may need some working through. However, the best unified communications systems are those that are 100% cloud-based with no on-site data storage. This means no on-site IT maintenance.

All Communications Can Be Managed Online

Unified cloud communications system is the term used to incorporate all aspects of technology used in running your business. Unified cloud communications systems allow online portals for easier access from off-site IT specialists to address any troubleshooting needs. Online portals allow greater productivity and help to keep costs low because IT functions are able to be delegated and streamlined in a much more simple and efficient manner. Employees are also empowered to have a greater level of control, maintaining their devices and making communication for all involved much less complicated.

The User Holds the Power

Users covet the ability to have flexible access and more control when it comes to the tools they need to maintain a high level of professionalism with their colleagues and their clients. Being able to have the same resources in and away from the office increases dexterity of the business as a whole and productivity levels of all involved. Not all cloud based systems are able to offer this level of flexibility. Only the 100% cloud based telephone system are designed with the user in mind and not the devices.This also allows technicians to troubleshoot most problems “in the air” rather than on the actual device.

Minimize Downtime Risks

The coined phrase, “time is money and money is time,” rings true for every business. Utilizing a unified cloud communications system reduces lost time from downed systems that may otherwise be experienced from on-site repair needs, power outages, severe weather or other emergency related downtime. This strategic type of entrepreneurial foresight puts the business with a unified cloud communication system at a major advantage over the competition; not only in time saved, but also the costs to address these on-site risks.

On-site Systems Are Cost Burdensome and Complicated

On-site systems require the use of on-site IT staff for maintenance and repair work. These added operational costs decrease a profit margin. The increased risk of communication errors and the technology to become obsolete quicker make choosing a cloud based system over an on-site system the simple and economical choice.

The benefits of utilizing a cloud communications system is a game changer. Increased productivity, decreased overhead costs, higher customer service as a result of more effective technology all help to give your business the competitive edge.

Businesses have changed over the years from when our parents and grandparents were in the market world. The use of rapidly evolving tech is what continues to propel businesses into the future. How far do you want your business to go?

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3 Questions to Ask Your Inner Leader

Business, in today’s world, is more about bringing people together than ever before. With such global interconnectedness, advanced technologies and high-speed communications, leaders have been relinquished of some of the leg-work that has vanished with the past. Similarly, our world has shifted away from mainstream culture toward niche markets and tight-knit communities.

Combine the two, and leaders now face a new objective: to support team players in their endeavours whilst keeping an eye on the prize. What’s the prize?: infiltrating the niche markets that now have more access to your company’s product than ever before.

As a leader upholding your business’s vision, you play a central role in connecting the many ways that innovative employees might contribute to building networks of support to your company’s overarching goals.

With this shifting role of the leader, it might be time to reassess your inner leader to see if he is up to the challenge. Here are 7 questions to ask yourself, to keep your inner leader on-track for the 21st century:

1) Are you investing in the relationships between you and those you lead?

Every day, the lines between the personal and professional, the virtual and the actual, get blurrier. Online social networks like LinkedIn and Google+ provide virtual platforms for our professional lives; e-mail inboxes are meccas for both casual conversation and official exchanges. As the boundaries of workplace culture transform, you don’t want to be stuck behind hard lines of what we once thought of as professionalism. Now more than ever, good relationships between co-workers make for good business.

2) Are you open to learning and listening?

As small networks and communities come into focus as targets for business, it is crucial to remain open-minded and open-eared. Business leaders are no longer working for the masses: Our visions, goals and products are now intended to reach specific groups of people with unique and tailored concerns, visions and goals of their own.

Not only do business leaders need to listen to their audiences, but likewise to their team members. In today’s world, perspective is everything. Where there is a consumer who wants a triple-shot non-dairy cappuccino with fair trade nutmeg served in a mason jar, there is someone who knows just how to give it to them. You cannot be everything, so use the resources you have by staying open-minded and listening to those you lead.

3. Are you taking risks?

While these fast-changing technologies and sub-cultures are daunting at times, they also provide us with some wiggle room for taking chances. Today, it’s the innovative who succeed big, because they are willing to risk a certain amount of failure. Think about your comfort zone, and the willingness of those you lead to take risks, to see if you’re taking advantage of the trial-and-error mentality of this technological age.

Most importantly, don’t let your inner leader get bored or complacent. Ask yourself questions that make you think about your decision-making strategies, your motivational skills and your ability to conjure up support for your own business endeavours and those of your team members. Ask your inner leader to consider new ideas and perspectives that will bring people together to succeed.

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Award Winning – What’s the Point?

This was my thought process prior to today – what is the point of awards and do they really benefit my business? I have seen many businesses flaunt their award winning this and their award for that and even some businesses who claim that they are award winning without stating what their award is for.

Well I have now joined the ranks of the award winners myself – not for export, not for sales and not even for the amount of businesses I have grown. This wonderful scene on the left is the winner of the Tourism NI Picture Perfect award for 2015!

Whilst not really relevant to the benefits I provide for my clients – it has changed my perception about them. It is my belief that benefits coming from awards fall into 2 main areas, independence and recognition.

Independence

Awards are really only of value if they come from an independent and reputable source – “employee of the week” or awards based on the size of your membership fee creates only scepticism and doubt over your product or service. But if your awarding body ticks the independence box it brings great credibility to your business.

Recognition

It’s great to be recognised and this was a major influence in my change of heart. I always believed I had “a decent eye” but when the judges chose my image, it confirmed my belief. You may believe your product or service is excellent but your potential clients are more likely to take someone else’s word for it. This recognition can also have a major influence upon your staff, building confidence and pride and these have a major impact on productivity.

Words of Warning

IMG_3827Awards are like my image – a snapshot, a moment in time and all because your product or service is award winning in 2015 there is no guarantee that it will be in the future. Plaques and certificates fade and gather dust and if left hanging around your receptions and marketing material without being up to date will lose their effectiveness and lustre. So if you are not striving for those awards annually make sure they don’t hang around as a sign post of past glory days.

So bring on the perfect picture award 2016!

As always I appreciate your comments, your feedback and the sharing of any of my blogs.

The Business Therapist – making your business better.

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Affordable Internet Security Tips for Small Businesses

When you’re a business owner, you hold the responsibility of ensuring that all of your data remains protected. If a security breach occurs, it could mean the loss of customers and important data, or even the reputation of your business plummeting beyond repair. Hackers can steal the identity of your customers, employees or even yourself, so it’s important to know how to properly secure your business’ data.

Security mishaps are not uncommon, even amongst the largest companies, but avoiding them can be quite simple. Even common activities, such as using an unsecured WiFi network, can be the beginning of a major security breach. Here are a few affordable internet security tips that could save your company a lot of trouble.

Start With Your Accounts

One of the most common ways people leave themselves open to cyberattacks is by forgetting to, or being unaware of how they should, secure their online accounts. The main problem lies in the passwords that are used. Sometimes they are too basic and easy for others to guess, or they are being used for more than one account.

Each of your passwords should be changed every few months and consist of numbers, uppercase and lowercase letters, and symbols (whenever possible). They should also be at least eight characters long and be sure to exclude any personal information (any name associated with your company would make a weak password, for example). If you have a lot of passwords and remembering them all is difficult, you might want to consider using specific phrases combined with numbers as your passwords.

There’s also the option of saving your passwords on a service, such as Blur, which will save your login details for websites and even create strong passwords for you if you choose. Blur encrypts the information stored and also syncs them to all of your devices. Another useful feature Blur has to offer is the ability to mask your email address when filling in online forms.

Though Blur is a great option, you are sharing your personal information with a company by using it and security vulnerabilities are a possibility as well. However, even if you don’t store your passwords on Blur, you can still take advantage of the other internet security features it has to offer, which can definitely help you to protect your business.

Lastly, when dealing with company accounts, you might have to share login details at times. When doing so, you might want to consider using LastPass Enterprise, which will assist you with securely sharing passwords and accounts with your employees and business associates.

Secure Your Internet Connection(s)

It’s not always possible to avoid public WiFi, especially if you tend to travel somewhat often, but every time any of your devices connects to an unsecured network, you’re leaving the information of your company open to hackers. Unfortunately they can hang out nearby and access anyone’s device that is connected to the internet without encryption.

Luckily you can encrypt your connection, which will keep your business much safer whenever you or your employees are using the internet. To do this, you’ll need a Virtual Private Network (VPN). Using a VPN not only encrypts your connection, but it will also mask your location by hiding your IP address, as well as unblock geo-restricted content online (which is very useful when traveling).

According to SecureThoughts.com, ExpressVPN in particular offers the most secure connection and the best customer support out of all the other VPN services available. ExpressVPN is priced at $12.95 per month, but can be purchased for as little as $8.32 per month if you pay for 12 months upfront, making it a very affordable option to secure all of your devices that connect to the internet.

Use an Anti-Virus Program

Even the most tech savvy can inadvertently download or acquire malware on their computer or mobile device. Since it’s likely that you’ll be using the internet a lot while managing your business, it’s wise to use an anti-virus program. Some of these programs will warn you if a website if suspected of containing malware, but most importantly, they will allow you to scan your device for viruses that could wreak havoc if left unchecked.

Depending on the anti-virus program you choose, you might also be able to utilize anti-theft features, which will help you to locate your device if it’s stolen or missing or even wipe the data off of it so it doesn’t fall into the wrong hands. As far as options go, there are many anti-virus programs to choose from, which can be free if you don’t decide to upgrade for additional features. Be sure to install them on all of your devices that connect to the internet and complete a full virus scan at least once a month.

Backup Your Data

If by chance your business’ data becomes compromised, you might end up losing a lot of important information. Backing up all of your data will allow you to restore your files if this ever occurs. For this purpose, you’ll want to back up all of your crucial files as soon as possible.

When you do, be sure to store the backup on more than one device or piece of hardware (such as an external hard drive, thumb drive, or SD card). If you need help doing this, refer to your operating systems’ website for instructions. You can also store your files on cloud based storage services like Dropbox if you choose.

Either way, don’t forget to keep backups of your company’s website as well (tutorials should be available on your web hosts’ page)!

Internet Security

Keeping your business secure online doesn’t have to hard to do, nor expensive. When you utilize the aforementioned tips, your business will be much more secure overall. Though gaining complete immunity from security breaches is never guaranteed, implementing online security measures will make it rare for cyberattacks towards your business to occur.

Most importantly, don’t forget to educate and train your employees about these internet security tips in order to better protect the personal information of both you and your customers. Great business practices are what create repeat customers after all!

Many of us dream of starting a small business, and thanks to SmallBusinessCan.com, those in the process of starting or managing their own business have a great resource to rely on. I appreciate SmallBusinessCan.com allowing me to publish this article on their blog. When you’re done reading, I recommend you read one of their many helpful posts, such as “Online Business Data Tools for Small Business.”

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Reward to Retain: The Effects of Loyalty Schemes in the Insurance Industry

Three quarters of people would change insurers to a company offering the same product at the same price – as long as they gave them loyalty schemes too.

The figures were revealed in a major survey carried out by M&S for Business that looked into the way companies in the financial sector attract new customers – and keep them.

As well as surveying customers it spoke to insurance industry figures to try and discover what makes a successful acquisition and retention strategy.
While 95 per cent of respondents said price was one of the most important factors when deciding what policy to buy, only 55 per cent said price was the sole reason. It suggests that in such a competitive industry a loyalty or reward scheme to add value to a policy could improve chances of take-up.
Experts agreed and most insurers quizzed said they already ran some sort of reward scheme.

But the survey also revealed that almost half (45 per cent) of respondents did not know if their insurer offered a reward scheme or not.
It suggests that communicating the scheme on offer to customers is just as important as the scheme itself.

Increase Customer Acquisition

The report concludes: “Implementing a reward scheme for loyalty, referrals or signing up to an insurance policy is a great way to increase customer acquisition, retention and satisfaction. However, it is important that the offering is relevant to the individual and offered at the right time.

“Allowing customers to earn points and rewards makes them feel involved with your brand and gives them the feeling that your service is worth more than that of the competition. As with any relationship in life, the one between business and consumer needs to be nurtured and approached delicately.

“That is why research and planning are imperative to the success of a reward scheme. If you get it right, you can build relationships and create brand advocates who will stay with you for a lifetime.”

Encourage Customer Retention

Stuart Lawrence, Head of M&S for Business said: “We know that the insurance industry is one of the sectors where it can be most difficult to encourage customer retention. With insurance usually being an annual purchase and most people hunting for the best priced policies, it can be hard for an insurance company to offer a unique service.

“With this in mind, we have carried out some research to discover what qualifies as a successful customer acquisition and retention strategy within the industry and found that reward schemes are something that is seen as value for a customer.

“We feel that the results of this research are transferable to other sectors within the financial industry and provide an interesting insight into a customer’s perception.”

To look at the complete findings, visit M&S for Business’ website.

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How Can Leaders Spark Passion in Their Employees?

If passion was a skill, or a certification, employers would have one half of the interview process taken care of. Unfortunately, passion at a former job does not necessarily mean there will be passion at one’s current job. Conversely, a lack of passion at a former job does not mean that one does not have the possibility of finding the most meaningful position they have ever had at a future job. So how can leaders spark passion in their employees?

Many companies have a mission statement that expresses their objective of offering the best customer service or the highest quality product. Whatever the objective, without a passionate employee, companies will never really attain that promise.

In seeking new employees, employers must determine if there is a shortage of talent in the market, and if the salaries they offer are competitive enough to recruit the type of passionate employees they need to grow their business. Thankfully, employers have resources they can use when selling the benefits of their companies to prospective employees.

One key tool in an employer’s toolbox to market to potential employees is word of mouth recommendations from friends, neighbors, and other employees. This is an especially successful recruitment method when one is targeting the 18 to 29-year-old demographic.

Importance of Culture

A good leader understands the importance of the culture they create in the workplace and how important that culture is for current employees as well as potential employees.

Take the case of Dan Price, founder and CEO of Gravity Payments in Seattle who recently announced that he was taking a cut in his own pay, and every employee’s starting salary would be $70,000 per year.

But, just a few weeks after the big announcement, two of Price’s “most valuable” employees quit proving that salary alone is not all that sparks a passionate employee.

A Gallup survey of employees in the United States and Canada showed that only 29 percent of those surveyed felt engaged in the workplace with 18 percent specifically reporting that they were disengaged. The survey went on to show that 26 percent of the respondents said that engagement and meaningful work was the most important factor that contributed to their job satisfaction. Based on that survey only about one third of the workforce feel engaged in their current positions.

So, how does one bridge that disconnect and create a culture of employee recognition? Creating an atmosphere that grows passion is something that can be learned and implemented by simply listening to what employees are saying.

The Need for Motivation

Disengaged employees need motivation from their leaders. Strong leaders make sure that every employee, regardless of their job title, knows how important their job is to the overall success of the business. That knowledge makes an employee proud of their contribution, and passionate about the role they play.

A strong leader also can ignite passion through open communication within their organization.

J.W. Marriott, executive chairman of Marriott International, explains this concept through an encounter with President Eisenhower. At the time, Marriott was a young student at the U.S. Navy Supply Corps School, and he asked the president a question about policy. The president asked him, “What do you think, Bill?”

Marriott says those four words are the most important for any leader to use to be successful. An employee who knows he has a voice is far more likely to find his work meaningful.

A group of people who spend 40 hours a week together are going to see each other on both good days and bad days. Most employees understand the boss has bad days, too. But, good leaders realize that the way they handle the bad days can be even more inspiring than how they handle the good ones.

In the end it is really a very simple equation, engaged employees are passionate employees. Passionate employees love coming to work. Having a passionate team who is invested as much as management is in the overall success of the business is not just a great idea to consider. It is a great necessity to create.

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Six Signs Your HR Department is Overworked

The HR department is at the heart of every company, so it is vital they are able to work at their peak levels. Unfortunately, demanding too much from overworked HR staff means the quality of service could slip, creating problems in the hiring process, or even when it comes to employee happiness. Here are six signs your HR department is overworked as well as how you can ease the burden.

Long Hours or Late Starts

One of the warning signs of an overworked HR department is when employees are staying longer than normal, or arriving late on a regular basis. Not being able to function in the mornings, or being forced to stay late, often highlights stress when it comes to day-to-day tasks.

Missed Deadlines

A tangible sign of overworked HR employees is repeatedly missed deadlines. If staff are struggling to profile candidates before the interview stage or handle payroll on time, they may simply have too much on their plates. Outsourcing some tasks like identify verification or background checks to a third party service could relieve some of this stress, freeing the HR department up for other vital jobs.

Complaints from Other Employees

If other staff are complaining about the timeliness of quality of your HR department, look into whether they need a break, or a chance to catch up on overdue projects.

Frustrated HR Staff

When in doubt, simply talk to HR staff directly to get their input. HR employees who are frustrated about their workloads and tell you they are struggling to complete daily tasks are almost certainly overworked. Strategize with them about how best to reduce stress.

Rapid Increase in Company Size

You might be excited your company is growing rapidly and bringing in new employees, but make sure your HR department expands to match. If your company is getting bigger, the same HR department won’t be able to cope with the added work without getting burned out.

Budget Cuts in the HR Department

Downsizing is a necessary process for some companies, but major budget cuts to human resources may cause big problems down the road. Check in after any budget cuts to ensure that HR staff can still cope and are not getting overworked.

Keeping an eye out for these warning signs can help you spot an overworked HR department before major problems crop up. Along with hiring additional employees and adjusting deadlines, outsourcing work can provide the department with a solution as well. Using an online employment background check system like PeopleFacts could be a good way to get work spread out.

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How to Motivate Under Performers

Even the greatest company can fail if its employees are under performing. Morale, confidence, skill level and more can all have a drastic effect on an employee’s performance. Underperforming does not necessarily mean that the employee is poor at their job. It can have just as much to do with management and the company as a whole as it can with the individual. In order to help motivate under performers excel at their job, follow these steps.

Understand why they’re underperforming

The best way to tackle any problem is by understanding the cause of it. Every employee is different, and each has their own problems with varying impacts. Get an unbiased overview of the person’s behavior and work from someone like a manager or fellow co worker. In addition to obtaining some useful and unbiased information on the employee, you may also get some insight as to why they may be underperforming. For instance, a coworker could mention that the employee has been very distracted lately due to issues at home, or they’re having difficulties understanding a new software.

HR software can also be perfect to understanding just how the employee is truly performing. It allows you to see a breakdown of their performance through analytics involving their met goals, current projects and more.

Open lines of communication and provide encouragement

Once you’ve gathered some information, it’s time to sit down and have a conversation with the employee about their performance. Start off by letting them understand how valuable they are to the company and what they’ve achieved there so far. Many employees simply don’t feel like they’re appreciated, and even merely hearing these words from their boss can have a very positive effect on their work. If anything, it will likely provide them with some drive to try to improve.

Explain all of the details that you’ve collected on their performance, and offer a helping hand in rectifying the situation. If you haven’t collected enough information to pinpoint why they’re underperforming, discuss why both you and they believe this may be happening. There could be more than one reason. For instance, if you believe they’re frustrated over not understanding a new software, offer some helpful resources for learning about it, or suggest they work alongside someone else who knows the software very well for a while. They may then suggest that the reason they’ve been getting frustrated with the software is due to hardware issues in their work laptop. This could be fixed with repairs or a new computer.

Set clear goals and provide coaching

Some employees aren’t aware that their performance is lacking, and some employers and managers simply don’t provide clear goals for their employees. Lay down some clear performance goals for the employee, and offer some coaching to help them improve. Be wary of employees who refuse coaching or any sort of help. If they don’t want to equip themselves with the proper tools and resources to improve, they may not be worth keeping around.

Follow up

Just like how employees may under perform when they believe their work isn’t being appreciated, employees who are working to improve also benefit from fairly regular follow ups as well as praise and acknowledgment when they are visibly improving.

Reward improvement, analyze further performance issues

At the end of a reasonable time period of coaching and work, analyze how the employee has done overall. If they have made great strides in improvement, reward them in some way. Show them that their work has paid off, and assure them that hard work and great performance are recognized, even when mistakes are made along the way. If the employee hasn’t improved much or has stayed the same in their performance, you’ll need to evaluate whether they’re worth keeping around. Are the improvement methods ineffective, or is the employee simply not putting much effort into it? Is it worth it to try to continue with other improvement methods, or is it best to let the person go and try to find someone else for the job? Put deep consideration into this as firing someone can have a very large effect on everyone in the company.

Most people have it in them to be good employees. It just takes a little hard work, patience and understanding to help under performers achieve great things in your company. There will be instances where you may be forced to let someone go, but these tips will prevent you from losing a valuable employee and doing undue damage to the company or even someone’s life.

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