Posts tagged as:

Operational Excellence

In a Recession: Recognize & Retain Your Star Performers, Part V

July 13, 2009 · 0 comments by Terry Lauter Comp

in Compensation, Economy, Management, Performance Appraisal

By now, it’s a foregone conclusion: Top performers should not be taken for granted or lumped into the mix, and then rewarded like the many “average” performers each organization has on the payroll roster. This truism applies even for continuing or enhancing cash compensation components, when many businesses have limited financial resources.

Therefore, savvy leaders are focusing on new and creative means of tweaking their total rewards to keep the super stars motivated to take their personal performance to new heights. In the last few posts, we’ve been offering up some ideas to jump-start your movement in this direction. Ideally, you’ll consider new and different low or no cost rewards, as well as modifications to your salary and incentive programs. But here’s a thought, as you’re trying to make sense of the total plan and its inherent out-of-pocket cost:

Don’t worry about the fact that you may be paying above market for your super stars. If they are truly delivering more for less, your payroll efficiency will be high. In other words if you have 4 or 5 higher-compensated stars doing the work of 7 or 8 average performers, it is still a win for the individual and the organization.

Under more normal business conditions, we tend to place great emphasis on market competitiveness and benchmarking jobs in the external world. In today’s environment, it may well make sense to worry less about that data, and think more about your total outlay for getting the job done. In other words, your increased dollars might be allocated to fewer people, but that’s okay as long as the results are there. In our brave new world, getting more with less is not just “allowable”, it makes good business sense.

What do you think? Is payroll efficiency a good way to measure your compensation effectiveness in a recession?

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“Getting Real” in Today’s Economy

June 24, 2009 · 0 comments by Terry Lauter Comp

in Business Strategies, Economy, Employee Communication, Management, Supervisory/Leadership Training

comm We’ve all seen the headlines, and heard the very real reports of salary freezes, forced time-off, and 401(k) matching “vacations”, not to mention lay-offs and closures. Clearly, many companies and their employees have been significantly impacted by this current recession. While we are beginning to see light at the end of the tunnel, experts say that we can still expect some months before the employment picture improves significantly. Still, there is no better time than NOW to start thinking about lessons learned this time around, and how we can be better positioned for economic downturns in the future.

What have we learned? One lesson that comes quickly to mind is that most organizations have simply not prioritized educating their employees about the financial realities of their business and their compensation and benefits costs. Organizational leaders may have any number of compelling reasons for this omission, but the truth is that they are all excuses. Sacrificing the urgent for the important usually catches up with us, and catch up it has.

So… better late than never! Here are a few things you can do in 2009 to start turning the tide. A well-informed workforce is not only important because people will be less apt to complain, it is essential because these are the people who will provide the engine for your turn-around. In this era of reality-entertainment driven by a hunger for authenticity, it’s time to get real. Take the time to clearly and honestly communicate:

Your short-term financial goals for the business
The specific things individuals in different roles can do to drive goal achievement
Where you have made significant cuts in expenses, and why
Why you are continuing to invest in people via your compensation plan, and how much money you spend in that plan annually
Why you are continuing to fund Benefits, and how much you spend on those programs

These are just a few of the facts that employees definitely need to learn. Unfortunately, it wasn’t urgent until now. What else is more important than ever before? Take the time this year to “get real” with your team. It’s that important!

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Working Smart: Focusing on the Vital Few

May 22, 2009

We all see so much wasted time at work, that I am always amazed to hear that the U.S. is one of the most productive nations in the world. Busy-ness seems to be replacing effectiveness as people go to endless meetings and spend hours sending and receiving emails.
Every once in awhile, I have to remind [...]

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What is Your Unmatched Customer Value Proposition?

May 21, 2009

Have you noticed that it is getting harder and harder to compete in today’s marketplace? As customers demand and expect more, we must ensure that we offer an unmatched value proposition to our target customers. In the book, “The Discipline of Market Leaders,” the authors explain that there are 3 key value proposition models and [...]

Simplify Your Mission, Vision and Values

May 20, 2009

A large number of companies develop their mission, vision and values as part of their organization’s strategic planning efforts. Unfortunately, many of them fail to achieve a solid return for their efforts. Three reasons for this are: (1) they are unclear about the difference between mission and vision; (2) they fail to engage their employees [...]

Peter Drucker Nailed It!

May 13, 2009

Several years ago, I had the privilege of hearing Peter Drucker, the “Father of Modern Management,” speak. At the time, he was already very old and nearly deaf, and didn’t seem to realize he was almost speaking in a whisper. The audience, however, was in total awe…and you could have heard a pin drop. I’ve [...]

Be a Value Builder

May 8, 2009

Several years ago, I was reviewing some Audio Tech Book Summaries and learned that organizations tend to fall into 4 operating profiles. These profiles are largely influenced by the Chief Executive.
The first profile is Underperformer and this is the worst. In this case, the organization lacks adequate focus on revenue growth or cost savings.
The second [...]

Key Business Strategies to Fuel Your Growth

May 6, 2009

Some organizations seem to operate without a business strategy, while others have way too many. We have guided many of our clients to focus on a half dozen, specifically:

Focus on profitable growth. Seems pretty basic, but it’s amazing how many companies experience declining profits, while their businesses are actually growing!
Start with the market and work [...]

What Can the Grateful Dead Teach Us About Business?

May 4, 2009

Each morning, when I turn on my computer, I am greeted by a new inspirational quote. Most of these are thought-provoking and I have saved hundreds of these gems over the years.
Surprisingly, one of my favorite quotes comes from Jerry Garcia of the famous 60s Rock Band: The Grateful Dead. I’ve seen a number of acts over [...]

What are the Characteristics of Truly Great Organizations?

April 29, 2009

One of my all-time favorite movies is “City Slickers.” In one of the scenes, Mitch asks Curly about the secret of life and Curly holds up his finger and states that it is just 1 thing (and Mitch will have to figure this 1 thing out).
It’s different in the corporate world. The secret to becoming [...]

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Operational Excellence

In a Recession: Recognize & Retain Your Star Performers, Part V

What is Your Unmatched Customer Value Proposition?

Simplify Your Mission, Vision and Values

Peter Drucker Nailed It!

What Can the Grateful Dead Teach Us About Business?

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