Monday, September 17, 2007
Why We Have "Slackers"
According to a recent survey only 25% of employees admit that they work as productively as possible. The survey showed that another 25% felt they could do 50% more while half of the workers surveyed openly admitted they could increase their productivity by an average of 26%.The top five reasons given for this lack of maximum productivity were: lack of supervision, insufficient training, exclusion from the decision-making process, no reward for good performance, and no opportunity for advancement.
Not every company experiences a loss of performance to the same degree. Some organizations will suffer a greater loss while other organizations will find their employees better connected tothe vision of their organization and their role in fulfilling that vision.
A separate survey revealed that in organizations where management felt their employees werethe most connected and productive were typically the organizations where employees felt the least connected -- therefore having lower productivity.
By examining the five reasons given by the admittedly unproductive employees, one can quickly derive and implement low- or no-cost ways to connect employees for an improved bottom line.
Is supervision the problem?
Find out by going to the online story by clicking here.
Labels: Behaviors
Saturday, September 15, 2007
Are you a dead fish?
Malcolm Muggeridge is quoted as saying that only dead fish swimwith the stream. I was reminded of this truth yesterday as we enjoy the beautiful summer day by taking a walk for the neighborhood. A small stream flows under our street a few yards down from our house.The afternoon sun illuminated a small portion of the stream where between the surface and the bottom a school of small fish provided some intellectual entertainment. Dozens of these fish no more than 2 inches long were swimming aggressively against the current as if their life depended on it. One might think their ultimate destination was upstream. The truth is their journey was going to take them down stream where they eventually would join the Great Lakes.
It seems logical that they could get to the Great Lakes quicker if they would turn around and use the same energy to swim downstream. However as I watched them it became apparent that by swimming upstream the current was slowly taking them to their destination, and in the process their actions were making them much stronger. Undoubtedly by the time these small fish reach Lake Erie they will have built the stamina and strength to deal with the adversities that await them, particularly from the large fish we could not even fit in this small stream.
Such is life in the business world. Some go with the flow, doing what others do, doing it the way others do it, and become surprised when their results are less than stellar.
Others go against the flow. They take chances that no one else will take, giving them results that others will not achieve.
This is the case with Sam Walton. When there was a cry that discounters needed to upscale their product lines and store presentations, Sam bucked the trend. He not only stuck with what he was currently doing, he looked for ways to cut the glitz and glamour of his already modest stores. The result speaks for itself. The fish that went with the stream died, without realizing that once the flow started to carry them they were already dead.
As you look at the results of your current efforts, and feel you want to improve them, look at the way the stream is flowing -- and go the other way.
© 2007 Max Impact, Rochester Hills, Michigan. All rights reserved.
Labels: Anecdote, Attitude, Story, Strategy, Wal-Mart
Tuesday, September 4, 2007
Kmart and Sears: Defying Bottom-line Gravity
Every once in awhile someone comes along to rewrites the accepted rules of their business. Henry Ford rewrote the rules of auto making when he decided to have partially assembled cars move through stationary workers, reversing the accepted way of manufacturing large products.
In 1879, Franklin Woolworth opposed retail rules with his concept of pricing an entire store at a single discounted price – 5 cents. When the store failed to attract customers, closing a few weeks after opening, retail critics said it was proof the concept of a low-priced retail operation would never work.
Woolworth would defy their opinions when he opened a second store later that year, adding a second price, 10 cents. The new store was a hit and led to 1,000s of stores under the Woolworth banner and dozens of copycats.
Today, Eddie Lampert is boggling analysts by completely ignoring the leading retail indicator, comp-store sales (a comparison of sales this year to last year in stores open at least a year), and growing his company anyway! Lampert led Kmart Corporation out of bankruptcy, craftily building a cash reserve large enough to purchase rival Sears. Both companies were losing market share at the time of the merger, leading analysts to comment that Lampert would sell the real estate assets of the new company and then liquidate it. As comp-store sales continued to decline, analysts were positive realty sell-off was the only salvation for the company.
Now four-years later the company continues to produce a steady stream of comp-store decreases, although the double-digit drops have calmed to single digits. Although analysts continue to scratch their heads, Lampert’s once again building a bankroll as profits are up significantly. Lampert’s position is that producing fewer sales at a higher margin is a recipe for success.
Lampert’s secret to success
Lampert secret to success defies another business belief of traditional management. Lampert is running a discount organization with no discount experience. Traditional logic states plainly that someone is unable to run a company without a working knowledge of that industry.
Malcolm Forbes once said, “Education’s purpose is to replace an empty mind with an open mind.” Lampert knew finances, how to generate profits, and how to produce cash reserves. Yet Lampert’s mind was empty to retailing. As he learned from the best minds at Kmart and Sears, Lampert was able to maintain an open mind as a fertile field for developing a strategy to rejuvenate the company.
Malcolm Forbes once said, “Education’s purpose is to replace an empty mind with an open mind.” Lampert knew finances, how to generate profits, and how to produce cash reserves. Yet Lampert’s mind was empty to retailing. As he learned from the best minds at Kmart and Sears, Lampert was able to maintain an open mind as a fertile field for developing a strategy to rejuvenate the company.
His plan, replace low-gross sales with high-gross sales. His formula generates fewer transactions, but still enough transactions to offset expenses. It is almost the exact opposite of the Wal-Mart philosophy. Or is it? Could it be that Lampert is simply refining the Wal-Mart concept?
Consider that Lampert has seriously reduced the number of temporary price reductions, just like Wal-Mart – but with higher entry price points.
Relating Eddie’s success to you
Lampert’s success is only unusual because others do not key into their need for learning. Here are some important points to consider:
- Recognize your shortcomings. Sure you know your products, but do you need help understanding the sales or negotiation process? Perhaps you know how to do your job, but do you have the skills to teach others how to tap into their own talent? Surround yourself with experts.
- Don’t be afraid of admitting you need to know more. Nobody is so smart they cannot learn more or benefit from the fresh viewpoint of another. Set pride aside and find help in the form of a mentor or professional coach.
- Think differently. Sometimes success is simply a matter of turning a deaf ear to the experts and go with you gut. If you try it, you have to believe in yourself or you will give up too soon. Woolworth’s first store failed. He believed he was right and proved himself on the second try. Success takes confidence and time.
Summary
Only time will tell if Lampert is correct – and if he is in the same league as Ford and Woolworth. Regardless, we can all learn from his success and use his lessons for our own benefit.
© 2007 Max Impact, Rochester Hills, MI, USA
© 2007 Max Impact, Rochester Hills, MI, USA
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