Sunday, October 21, 2007

The one project missing from your strategic plan.

The one project missing from your strategic plan.
It's a given for your business: you want next year to be
different than this year. And so all kinds of projects and
tasks end up on your to-do list. Marketing, office
structures, product/offer creation, client care, technology.

Very important, this doing of things. Without action, very
little manifests, no matter how clear your intentions are.

And yet, will next year look different? What's more, you
may find yourself spinning your wheels some, lackluster,
running the gerbil wheel.

What gives? Is it too much action?

Not exactly. It's just that something's missing.

You need a learning project.

Every business is either developing, or dying. Now,
'developing' doesn't always mean 'growth'- but it does mean
changing, living, becoming a new version of itself.
Otherwise stagnancy sets in, after which comes dying, and
death.

Want to avoid that kind of stagnant business death? Then,
add a learning focus to your strategic planning.

A learning focus is when you identify some aspect of your
business that you're really curious about, and with which
you want to have a healthier, more robust, more functional
relationship.

Some examples of past learning projects at Heart of
Business.

- Money. I declared one year to be the year I was going to
learn about money. And that was my focus. The Heart of
Money Transformational Journey was the course that was born
from that.

- Systems and structures. Another year, I declared to be
the year of learning about systems and structures. How do
systems really work, and how can they be implemented to
support the business, without dehumanizing it?

- The current focus. Teamwork and leadership. I had always
struggled with incorporating assistants or collaborators
with Heart of Business, Inc. This past year I declared that
I wanted to learn about healthy teamwork and leadership.

Before action comes learning.

Without first taking the time to learn, it's really hard to
know what will be effective action. Kinda obvious, I know,
but it's really easy to slide over this and just want to
jump in with both feet.

I'm a big fan of just jumping in. And yet, when the stakes
are high, or when you care about something a lot, even just
starting a learning project before jumping can save you a
lot of grief afterwards.

So, how do you select a learning project? And, more
importantly, what do you -do- with a learning project?
Well, let me share what I've learned with you.

Keys to Learning Projects

* Many from one. One business. Many needs. What are all the
things you are striving to do in the business? Make a list?
What are all the areas in your business where you are
struggling? Make a list.

Here are some ideas to spark your brainstorm: money,
accounting, delegation, systems, marketing, sales,
technology, writing, websites, blogging, dealing with upset
customers, leading teleclasses, product creation, strategic
planning, setting goals...

Any other areas of business you're struggling with? Take a
few minutes and jot them down onto the list.

* One from the many.

There may be a lot of things that your business needs, but
just pick one. And make it your intention and focus over
the course of the year to get comfortable and familiar with
it. To learn about it.

* Now, learn!

With a learning project or focus, you don't set
outcome-based goals for yourself. There isn't a big to-do
list, or that many measurable results that you set. It's
about setting an intention and learning.

First, set the intention to have beginner's mind, and to
take the pressure of creating specific results off yourself.

Second, canvas your resources. Make a list of books to
read, websites or blogs to connect with, people to
interview or otherwise. Start with one book, and making a
lunch or tea date with one person.

Third, once you've gained some familiarity with it, I would
suggest even looking for a class to take, some place where
you can be guided to integrate your self-learning.

Slow down on some of your to-do's, and add a 'to-learn'
project to your list for the year. And don't be surprised
if at the end of the year you've accomplished some very
concrete outcomes, even without planning for them.

You'll find that instead of recycling the same problem over
and over again, the next will find you and your business in
new territory in a very satisfying way.


----------------------------------------------------
Mark Silver is the author of Unveiling the Heart of Your
Business: How Money, Marketing and Sales can Deepen Your
Heart, Heal the World, and Still Add to Your Bottom Line.
He has helped hundreds of small business owners around the
globe succeed in business without lousing their hearts. Get
three free chapters of the book online:
http://www.heartofbusiness.com

The Real Cost of Hiring Average Performers

The Real Cost of Hiring Average Performers
Are you always trying to hire top performers?

My guess is that you would enthusiastically say "yes!"

But, in reality...and I mean be honest with yourself...what
percentage of new hires actually turn out be top
performers? I'll bet it's a lot less than you were shooting
for.

There are a lot of reasons why this happens, and for those
of you who know me and read my blogs and articles, you know
that I am a strong believer in using pre-hire assessments
to know you are "really" hiring.

But, in this article, I am going to focus on how much it
costs you when you hire average performers versus top
performers. You will be blown away when you see this.

My hope is that it wakes you up and you say, "I've got to
make sure I really do hire top performers...not just talk
the talk."

OK, here we go...

A study (1) was done some time ago that resulted in a model
that employers can use to calculate just how much it costs
when you have less than top performers.

For example, if you are looking at your management and
professional workers, the study found that top performers
produced 48% more than average workers! That means if the
average salary of a manager or professional employee is
$60,000, it's costing you 48%, or $28,000 a year, by hiring
an average worker instead of a top performer! Let's say you
are a small company with only 10 people at this level-that
mean the potential exposure to your bottom line could be up
to $280,000 per year if you only have average employees!

That could have a devastating effect on your ability to
stay in business long term.

It gets even worse if some of your employees at this level
are less-than-average-performers (non-producers). They
produce 96% less than your top employees! For each of
these, your cost using the same average salary above would
be a whopping $57,600!

What about your skilled workers?

Well, for skilled workers, the study found that the top
performer is 32% more productive than the average performer
and 64% more productive than the non-producer!

And, if you have unskilled or semi-skilled workers, the top
performers outperformed the average worker by 19% and the
non-performer by 38%!

The following summarizes these numbers:

**Management / Professional Workers**

'Average' workers output = 48% more than 'Non-producers'
'Superior' workers output = 48% more than 'Average'
'Superior' workers output = 96% more than 'Non-producers'

**Skilled Workers**

'Average' workers output = 32% more than 'Non-producers'
'Superior' workers output = 32% more than 'Average'
'Superior' workers output = 64% more than 'Non-producers'

**Unskilled / Semi-Unskilled / Semi-skilled Workers**

'Average' workers output = 19% more than 'Non-producers'
'Superior' workers output = 19% more than 'Average'
'Superior' workers output = 38% more than 'Non-producers'

Let's look at an example of how this plays out for a small
company with:

* 50 Unskilled / Semi-skilled workers with an average
annual wage of $20,000
* 25 Skilled Workers with an average annual wage of $40,000
* 10 Managers with an average annual wage of $60,000

The cost of having 'Average' versus 'Superior' performers
using the assumptions about their average salary would look
like the following:

Unskilled -- ($20,000 x 19%) x 50 = $190,000
Skilled -- ($40,000 x 32%) x 25 = $320,000
Management -- ($60,000 x 48%) x 10 = $288,000

Total Potential Exposure = $190,000 + $320,000 + $288,000 =
$798,000 or 31% of the total payroll!

What these numbers tell you is that unless you are hiring
top performers, you are pouring money down the drain. No
matter if your company is large or small, the potential
impact to your bottom line can be huge. It's even larger if
some of your employees are 'non-producers'.

Every time you replace an average performer with a top
performer, you have a positive, measurable financial impact
on your bottom line. Your challenge is to make every effort
you can, whether it's hiring, promoting, or developing
people, to focus on choosing top performers.

So, what can you do today to help you assure you
dramatically improve the odds of hiring top performers?

Hire or promote people who fit the job and the company.
What does this mean? I'm talking about using assessment
tools to help you determine just how closely a candidate
comes to meeting the profile of your top performers already
on the job. I'm not just talking about their skills,
education, prior work history and the other pieces on their
resume...I'm talking about their fit with the job and with
the company based on the following:

* their learning style, which is tied to their cognitive
abilities

* their core behavioral traits (this is different from what
they say about their personality using tools like DISC and
Myers-Briggs--which should never be used for hiring because
they have never been validated for predicting success in
the job)

* their occupational interests.

Using this information along with reference checks and
background checks will dramatically improve your chances of
hiring top producers who fit your company's culture and the
job--really important for productivity and retention.

In fact studies have shown that without doing these things,
you only have a 15% chance of hiring the right person
versus at least a 75% chance if you use these tools.

After all employees who are top producers and who enjoy the
company, their fellow workers, and their job will find it
hard to think about leaving.

If you are going to use assessment tools, make sure the
tools you select are continuously being tested for their
validity and reliability in predicting success on the job.
This is critical! Even the Department of Labor says so!

Follow this method in your hiring and promoting process and
you will prevent losing real dollars. The increase in
productivity per employee and the reduction in expenses due
to costly turnovers will result in a stronger and stronger
bottom line over time.

(1) Source: "The validity and utility of selection methods
in personnel psychology: Practical and theoretical
implications of 85 years of research findings"
Psychological Bulletin, Sept 1998, Vol. 124, No. 2, pp
262-274.


----------------------------------------------------
Mike is an internationally recognized expert at helping
employers meet their business objectives by teaching them
how to get the right people into the right seat on their
bus. Employers face continuing challenges in hiring,
developing and retaining their best employees. Mike guides
his clients through this maze. To experience how this is
done, sign up for a free job analysis survey for one of
your open positions at http://www.eSessements.com .

Are You considering the Possibilities or the Probabilities?

Are You considering the Possibilities or the Probabilities?
During a recent conversation with a client of ours the
direction of the conversation turned to the area of "what
if". I remember when my kids were small and they use to
always ask me "what if this happens?" or "what are we going
to do if the roof caves in", etc. It seems some people
continue on the thought pattern of "what if" for a
multitude of issues in their lives.

For instance, someone could be experiencing a great moment
or relationship in their lives. Then for some reason
thoughts enter their minds about "what if someone better
comes along" or "this isn't real" or "I don't deserve this
now". What is the reason that keeps people from enjoying
and feeling worthy of the great things in life?

What are you thinking about concerning the many
opportunities in your life? Are you thinking about the
possibilities or the probabilities involved with them?
Albert Einstein was teaching at Oxford in the early 1940s.
He had just given a physics exam to a group of students and
his teaching assistant asked him if he really gave the same
exact exam from the previous year to the same students.
Einstein answered "Yes, I gave them the same exam, but the
answers have changed!"

What answers are changing for you from last year? Are the
things happening now in your life something you would have
considered a possibility or a probability a year ago?
Whenever we let ourselves plan and consider a possibility
and write it down as a goal or a plan there is a better
than 90% chance of it actually happening. If we let
probabilities dictate the direction of our dreams and
lives, things like "might or could", then nothing gets done
or moves forward.

Take some time today to write out some possibilities for
yourself. Let your imagination go toward places and things
you never gave yourself permission to go before. In
reality, what has happened more in your life-the
possibilities or the probabilities? If you said the
probabilities it might be because you have never given the
possibilities room to breathe in your life.

The most successful people around are always thinking about
possible business opportunities. They don't waste their
time with what will probably happen if this deal doesn't
happen or product doesn't work out. They look at what is
possible to do next.

Many times people are just too caught up in their own
little world to consider other possibilities to a challenge
that someone on the outside might be able to help them
with. An observer with a keen eye can often spot the most
lucrative possibilities and let the probabilities take a
one way vacation to never-never land.

To find your observer, look for someone that is trained as
a consultant or coach and is not necessarily in your usual
business setting. Sometimes the people that are caught up
in your same world will have the same exact outlooks. This
might not be exactly what you need to see the possibilities
in new opportunities in business and life.


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© 2007 Pro Power Services, Inc
ABOUT THE AUTHORS
D.J. and Sherri Frost are Healing Arts Business Growth
Specialists helping holistic practitioners grow their
businesses. To get their FREE eCourse: 7 Critical Skills to
Attract More Money, More Clients and a Soul-Satisfying
Lifestyle, visit their site at http://www.ProPowerNow.com
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