by Peter Hunter

     This article was originally published in The Productivity Institute (PI) Newsletter

Have you ever noticed when you are in traffic and in a hurry to get somewhere, it is almost impossible not to creep up closer to the person in front of you?  It is as if by this act of creeping, it is possible to make the car in front move faster so that we can get where we want to go quicker.
 
But, have you ever thought what happens when someone starts to creep up too close behind your own car.  Do you accelerate away smartly leaving them to catch up or do you slow down?
 
The fact is, we are all human beings and the human reaction to being pushed in one direction is to resist and (frequently) push back in the opposite direction.  (Remember what happens when a teenager is told to clean their room?)
 
If someone is trying to make us hurry up by driving too close, we will almost invariably resist by slowing down.   Even with this realization, we frequently still drive too close to the person in front when we want them to go faster and as a result become even more frustrated when they slow down.
 
In short, our own behaviour is creating the conditions for our failure.
 
Fifty Years ago there was an American Business Guru called Douglas McGregor who was in the vanguard of a growing band of enlightened management savants.  They appreciated this aspect of our behaviour and realised that most of the problems involving the lack of morale and performance at work are directly related to the way managers behave towards their respective workforce.
 
To explain how this works, McGregor coined the two terms, “Theory X” and “Theory Y”.
 
Theory X is the model that describes the management behaviour that creates problems.  Theory Y is the model that, recognising the problems created by the Theory X manager, creates the environment for the workforce that allows them the space they need to work as well as they can.
 
Here is an example that will help explain these models, Theory X management assumes that the workforce is lazy and ignorant and would rather do anything except work.  The job of the Theory X manager therefore is to drive the workforce to do their work, to create an environment in which it is so difficult for the workforce to avoid work that they have no option but to work. This is seen as the traditional role of the manager by both the manager and the work force.

Theory Y on the other hand, assumes that the workforce is skilled and experienced, is willing to share that experience and take pride in what they do.  The job of the Theory Y manager is therefore no longer to tell the workforce what he thinks they ought to be doing. Instead, it’s to create a positive work environment that will support the workforce, allow it to take pride in their efforts and thereby improve productivity.
 
The difference between the two models is the treatment of the workforce and the environment in which they work – both of which affects the motivation to do their jobs.
 
The problems occur when a creative and motivated workforce, is treated as if they are lazy and ignorant by a Theory X type of manager.  This is the predominant management behaviour, learned from our peers or from schools; how managers need to do to drive better workforce performance.
 
What Douglas McGregor shows us is that “Driving” performance is actually the management behaviour that causes poor performance and bad attitude.  This Theory Y lesson is: if you want to get there quicker, if you want to increase the performance of your own organisation, stop pushing the people who actually control your organisations ability to perform, the workforce and instead help support their efforts.  The results may be dramatic.
 
If you want to go faster, Slow down!
 
Try the Theory Y approach next time you are stuck in traffic.
 
The more space you give to the people in front the quicker they will go. When we slow down we give the driver of the car front more space. He will stop feeling as if he is being pushed and will therefore speed up.  By allowing the driver in front to feel that he is not being pushed we will get where we want to go quicker.
 
At work it is the same.  The less direction and control the manager imposes on the workforce, the better they will perform.
 
Give people the space they need to do their jobs.  You will be amazed at what happens.
 
Peter A Hunter
Author of Breaking the Mould.
www.BreakingTheMould.Co.UK
www.Hunter-Consultants.Co.UK

by John McGrann

   This article was originally published in The Productivity Institute (PI) Newsletter 

In these recessionary times, companies are focused on delivering more efficient services through Enterprise Resource Planning (ERP). Unfortunately, ERP proposals usually require investment and often meet resistance. When the resistance is from senior managers it is all the more challenging… 

I can think of no bigger weakness generally in the ERP world than the big hole between IT (Applications) and the Business - the home of lost ideas, issues, duties, roles, responsibilities, tasks, deliverables, improvements, productivity, solutions, resources, policies, communications etc.  Once a system goes live, often the momentum for improvement disappears with it.  The lack of knowledge about ERP systems further exacerbates this problem.  The answer to filling in the big hole is…ERP Super Users.

Identify, select, develop and empower key business users who have an aptitude and passion for your ERP system.  ERP systems are enterprise systems and should be driven and owned by the Business and not by the technologists. ERP Super Users should strive to support and satisfy four objectives:
- Automation of business processes to improve productivity
- Information to enable better decision making
- Education of best practises and developments around ERP
- Transformation of how to do business using ERP as an enabler

An ERP Super User is a role within a job. It is not time consuming but the benefits can be huge. The ERP knowledge combined with the functional knowledge is a powerful combination. It is also a lot cheaper option than additional IT (Apps) resources or expensive external consultants.

So how can they fill in that hole? These are the key activities which can be undertaken by ERP Super Users that will drive greater value from your ERP system:

• Business Process - manager of the business processes for selected area. Working with IT (Apps) team to promote further automation and process streamlining
• Module owner / manager - controls access to own functional modules
• Change agent - a positive and active force for change programmes around ERP
• Educator - updating colleagues at all levels on the further capabilities, updates and potential of the ERP system
• Training - consulted on implementation training plans and ongoing training for current and new users
• Solutions - leading Business side and jointly delivering with IT (Apps) a cost benefit analysis for all significant spending on ERP
• Engagement model - regular meeting with appropriate levels on the IT (Apps) team to fix issues and planning around ERP
• Housekeeping - assuring housekeeping routines and data quality standards maintenance
• Custodianship model - supporting the clarity of roles and responsibilities of the Business side and IT (Apps) side in the ERP space
• Intranet Site - championing continuous improvement in the use of ERP and communicating updates to users
• Rapid reaction - coordinates the Business side on serious incidents and extraordinary requirements
• SMEs - Subject Matter Experts for the implementation team and for upgrades and major enhancements
• Support System - 1st line support and monitors active support tickets and expedites
• Super User group - member of the functional  Super User Group
• Reporting - working closely with the IT (Apps) team to meet functional reporting needs in the most cost effective way and controlling access to reporting tools

ERP Super Users combine their applications skills with business expertise in a cost effective way to drive greater value from Enterprise Resource Planning systems. They are a shining example of empowerment in an organisation. Once the big hole is filled in, it’s time to start building on secure ground.

And then, real strides in productivity and efficiency can be realized.

John McGrann  (MBA ACMA AIMC) describes himself as an ‘ Oracle Applications Manager’ and has a practical and professional approach with well developed business management, financial and applications skills, gained through working on a range of projects, change and support assignments for UK public sector and international private sector organisations.

www.DriveERP.com
John@DriveERP.com
+357 96-728265

by Bruce Newman

   This article was originally published in The Productivity Institute (PI) Newsletter

There are two aspects involving traffic to your website and blog: attracting visitors and retaining them once they arrive.  In this article, I will focus on strategies that will bring them to your site.  In a subsequent article, I will discuss various visitor retention strategies.  Both sets of strategies denote the importance of social media and utilizing productive strategies.

1. Provide constant, informative content.  This can be done across a wide variety of media – blogs, video, podcasts, etc., with the key criteria being that it must contain good, relevant content.  And, it must be original.  People receive few accolades (if any) for retweeting articles on Twitter.

2. Make comments.  Find industry leaders and leave meaningful comments on their blogs and articles.  Omit such inane comments as, “I learned a lot from your article”, which are very common and of little value.  In fact, they might negatively predispose people towards you.  Instead, spend a few minutes providing some thoughtful response or even a simple but well thought out question.  People will take note of your comments and may respond directly to you.  Most importantly, make sure that you always include your contact information and a link with your comments.

3. Use keywords.  I can’t stress enough the importance of keywords.  Make sure your articles use them – particularly in the titles or in any paragraphs that use bold or italicized text.  Simply put, search engines love them.  If you are not currently using keywords, start using them immediately.  There are several good programs out there you can use.  There are also many keyword “experts” available but be careful - they can charge megabucks and not deliver much value.  The cost of a good keyword service should be around $500.

4. Use social networking.  Remember, it’s not designed to sell – only to inform.  You will get a lot better response by providing the quality content mentioned above than by saying, “Buy my product or service”.  Social media is defined as the sharing of information within groups or organizations.  Join these groups and become active.  The more value you supply, the more people will become aware of your presence and what you have to offer.

5. Join and participate in forums.  A good friend of mine constantly posted to a technical forum, offering quality suggestions and content.  As a result, he received several job offers from companies seeking his expertise – and they approached him.  (He’s also very good.)

6. Offer something for free.  It could be an e-book, a free consultation, information, a contest or survey results (if they participate), etc.  As long as people perceive - and receive - value, you will accomplish two things: first, you will generate buzz and help distinguish yourself as a thought leader and two, you will generate traffic and probably new business.

Building traffic to your website or blog can be a time-consuming and frustrating process.  Furthermore, it rarely happens immediately as it’s truly a gradual process.  However, if done properly and consistently, it should ensure a steadily increasing stream of traffic – and results.

Bruce Newman is the Vice President at The Productivity Institute, LLC, an acknowledged leader in locating, evaluating and matching the specific areas of expertise of consultants to the needs of its clients.  Bruce has started writing and giving talks on the power of social media and how to harness it to improve brand awareness and sales. He is also the editor of the Productivity Institute Newsletter, a free content-is-king newsletter and thought leader.  Follow him on LinkedIn, Twitter and the Productivity Institute blog.

by Jason Klees

   This article was originally published in The Productivity Institute (PI) Newsletter

A strange thing is happening during this recession….. We are not taking advantage of the opportunity that lies in front of us.  Donald Trump and Warren Buffett, both considered to be successful in their businesses, are known to buy low and sell high.  Here at home, my wife is known to take advantage of a “sale.”  A conversation overheard at our house goes something like this: “Honey, do you like my new shoes?  I got them ON SALE.”  Donald Trump is taking advantage of declining prices in real estate to develop more properties that he can put his name on (preferably in big gold letters).  Warren Buffett is taking advantage of the decrease in the cost of materials and services and the increased availability of skilled laborers and capacity for production to invest in companies that are poised for growth and profit.  Buffett’s method is to research not only a company’s P&L statement but to also look at their management structure and culture.

Yet, in stark contrast of these successful people who are known for their ability to produce substantial ROI (my wife included!), look at today’s large company organizational behavior which demands to produce more using less while providing a less than fertile environment for the fruits of their labor to flourish, grow, and ultimately harvest.  Their observed behavior is to slash training and development budgets to the bare minimum required to maintain regulatory compliance; increase the stress on the employees to the breaking point, and let go expensive, higher paid top performers while retaining cheaper moderate to mediocre performers.  Performance bonuses have been decreased or eliminated altogether - further reducing the incentive to put up with the increased environmental stress and produce top results.  In other words, not only are they failing to plant and nurture seedlings during this time – they are also spraying Round Up on the fruit they still have left in their organization.  And I haven’t even mentioned the threat of federal regulation dictating “acceptable” levels of compensation!

Instead, what we should be doing is using George Costanza Theory.  In the popular TV show Seinfeld, was an episode where George, the unemployed, no girlfriend, still-living-in-his-parent’s-home-adult-child decides to use “opposite theory”.  He figures if he does the opposite of what he would normally be inclined to do, he will yield different results.  We learn by the end of the episode that George lands a good job, has a hot girlfriend, and is looking for his own place to live!

Using this theory in our organizational behavior would look like:  increasing opportunities for employee development – after all if you want to do more with less, then the “less people” need to know how to do “more” and do it well (not just well enough) - to allow growth of the company and a successful harvest (increased profit, growth, stock price etc).  This increase in development would foster a higher level of loyalty, trust, and maybe even morale in this tough economic climate.  The ROI would not only be high quality products and services created/demonstrated by the employees but also in the decreased costs of stress that show up in our workplace compensation claims, Employee Assistance Programs, and sabotage/espionage incidents.

Your companies and clients should be increasing technical skills training, increasing business acumen training, and increasing employee recognition programs during this time of decreased spending and recession.  These can be done in a fiscally responsible manner without breaking the bank. In others words, take advantage of the things “On Sale”.  In order to successfully implement, managers need to know “how” and therefore there should be an increase in leadership development.  And with the increased performance of the company should come awards in the total compensation package (not just salary) providing further incentive to perform and rewarding “sticking it out” during the tough times.

Ask yourself, is my company / client doing any of the following:
• Slashing training budgets, delaying training programs, or viewing development as a luxury?
• Simply freezing acquisitions and open positions instead of identifying the needed talent and strengths of positions / employees?
• Placing an emphasis on likeability rather than performance value of employees?  You know this when you hear the statement someone “is well liked in the organization” before the statements of performance or value add to the organization…
• Reducing or eliminating employee recognition (or decreasing the importance of it) – which results in little to no sense of recognition of the employees?

Then they are spraying Round Up during a time when they should be nurturing/fertilizing the fruit to harvest!  It’s time to implement George Costanza Theory!

Jason Klees is just a simple guy from the mountains of North Carolina.  Though not an experienced farmer, he knows enough that spraying Round Up on your fruits will kill them.  Jason is a training and development specialist with the bulk of his career being in Operations as well as Human Resource departments for Fortune 100 companies. An avid follower of Stephen Covey, Jason really believes that if we live in Quadrant II, we can prevent more of the problems that we would otherwise have to solve later.  You can read more about Jason and follow his postings on LinkedIn.

by Patrick Seaton

   This article was originally published in The Productivity Institute (PI) Newsletter

Business owners understand the need to introduce long-term improvement initiatives into their organization.  The pay-off that some companies are experiencing is astounding.  Unfortunately, not every company has found the same success.  Subsequently, they give up somewhere in the middle of the journey with lots of money invested and little to show for the investment.  At the same time, the employees have chalked up the improvement initiative as another “program of the month.”

A periodic review of your company’s major processes (called Process Analysis) identifies:
• Who are the people involved in each process,
• If the process has changed since the last time it was analyzed,
• If the process should be modified because of recent changes in your company,
• Where your bottlenecks, pain points, and areas of waste exist in current processes,
• If there is a need to update/revamp/reengineer the process, and
• What improvements could/should be made to improve productivity.

A very important message that you give your staff during a session is “I care about what you do, how effective you are in your job, and how you think things could be improved.”  Additionally, after the process analysis session, the company has stronger reasons and justification for implementing process changes (the actual process improvement activity).

Some situations involving process analysis are listed below.  Perhaps you have similar situations in your company.

1. Need a Fresh Eye
Jody and Brenda are a husband/wife management team and have owned their framing shop for over 10 years.  Their order fulfillment process has changed over the years, but always as a reaction to specific situations.  Jody’s sales are consistent, but his costs are rising, meaning less profit for the business.  He saw the need to streamline his order fulfillment process and remove bottlenecks so he could be more productive.  However, he wanted a fresh eye to look at the process, since he was so close to the process.

After mapping out the process and analyzing where it was working well, where it was rather clumsy, and where the bottlenecks existed (mostly because of a lack of discipline to be proactive on Jody’s part), Jody was able to see exactly where his problems were.  Based on this analysis, Jody revised his workshop’s layout to improve workflow and he changed some inefficient procedures.  Ten years to create but only four hours to visualize the current state and define ways to improve the situation.

2. Defining a Process
Tim is a writer/editor who recently starting his own marketing consulting company. 

Tim felt he wasted time with potential prospects as they worked their way through the quoting process.  Those that didn’t ultimately take his services often ate up substantial time before coming to a decision.  Tim wanted to see how his process could be changed to minimize his time commitment during the quote phase, while still answering the prospect’s questions – moving them toward a decision.

Using process analysis, Tim realized where his trouble spots were and had specific ways to correct the situations.  The reality was that his process didn’t have enough check points and confirmation points.  He didn’t have enough feedback from the prospect early on in the process to know if the services/quotes offered were getting favorable reviews or not.  Until Tim stepped back and visualized the whole process, he had not realized how little feedback he was receiving. 

3. Unofficial Process
Nick works for a plastics company.  They run many jobs in a day and try very diligently to meet the customers’ demands.  Their schedule is created today for the next day and then distributed to people in the plant.  Everything is fine until there is a schedule change – which can happen several times a day.  The customer calls and needs parts sooner, materials aren’t in-house when the job is ready to run, or materials come in today for a job that should have been run the previous day.  Those changes call for setup adjustments and a redistribution of staff.

Nick wanted help formalizing their scheduling process, specifically in the schedule changes area.  Schedule changes are part of their culture and show their ability to be flexible, but the aftermath of schedule changes was frustrating and inefficient.

Process analysis helped denote a much clearer process for making the needed changes and communicating those changes to the workforce.  The process became an official process for the company and could then be measured for effectiveness.

——————————————————–

Process analysis sessions are a tremendous way for companies to open communication lines in an organization.  People want stable processes that allow them to work efficiently and effectively.  The vast majority of employees prefer a stable workplace grounded in sensible, streamlined processes instead of chaotic settings and situations.

Successful companies manage the exceptions and let the mainstream work flow through their documented, efficient processes.  Without solid processes or regular review of their processes, everything can end up being an exception and eating up valuable time across the company.

Benefits:
1. Lower costs by eliminating unnecessary steps and waste from processes
2. Increase productivity by making sure that processes only include people who contribute to a process – allowing them more time to work on other tasks
3. Improve morale by opening communication lines, minimizing stress and frustration for those who are the process players, and validating employees’ contributions to the organization’s major processes
4. Develop management by giving them a vehicle for streamlining workflow so that resources are maximized and productivity is improved

Best Practices:
1. Conduct a process analysis session for your major processes every 6 to 9 months
2. Make sure that the process champion and process sponsor participate in the session
3. Use a facilitator from outside the area (or organization) to bring fresh perspectives and unbiased suggestions to the group

Until next month!

by John McGrann

   This article was originally published in The Productivity Institute (PI) Newsletter
 
In any company there are two primary aspects to reporting: the definition and the technology.

The definition refers to reports required by customers, usually residing under the direction of the business managers. For example, Finance teams define what reporting is required to meet statutory and regulatory requirements. They define what information is included, who receives the report and when the report needs to be delivered to the customer.  The IT team is responsible for advising on, developing and supporting the technology used to meet the needs of business reporting. The IT role is to focus on how reports are delivered effectively and efficiently using the most appropriate reporting tools.

Often companies have no clear strategy for reporting with the results being incomplete and an inefficient use of resources.  This problem is further complicated when too many people become involved in any aspect of the report.  Nevertheless, the bulk of the problems arise during when determining what the report content and who will be responsible for its development.

Reporting tools may include:
• Standard reports – out of the box and reliable
• Financial reports - user defined, usually from an additional financial reporting package
• Customised reports - costly and high maintenance
• Ad hoc queries - risky but quick; often from within a database
• Business Intelligence.- when a full strategic analysis is required.  This can be very costly.

Security

The ability to create these reports requires access to live production systems and databases, sensitive HR, Contracts, Projects and Payroll data.  A significant amount of work may be required to ensure that the security and integrity of that data is maintained.  Access to this data and reports must be closely restricted to authorized personnel.  IT plays an important part in this role since it should manage access for users, databases, and applications’ security, menus, responsibilities and functions

Skills, Costs and Strategies

In the likely case that the business side lacks the requisite skills to develop the reports, expertise must come from elsewhere – usually from IT or from an outside consultant.  Good communications and a mutual understanding of the requirements are essential for a successful outcome. The aim should be to meet all current and future support, development and reporting needs of customers with the current established numbers of analysts and absorbing new requirements by eliminating wasted efforts.

Summary

There are huge potential benefits to successfully manage report generation and delivering correct, timely useful management information in a more efficient manner than the ad hoc supplementary tools often used in organizations.  Having the required information readily accessible and in an extremely useful format can greatly enhance decision making and profitability.

John McGrann  (MBA ACMA AIMC) describes himself as an ‘ Oracle Applications Manager’ and has a practical and professional approach with well developed business management, financial and applications skills, gained through working on a range of projects, change and support assignments for UK public sector and international private sector organisations.

www.DriveERP.com
John@DriveERP.com
+357 96-728265

by Bruce Newman

   This article was originally published in The Productivity Institute (PI) Newsletter

In our last Productivity Institute (PI) newsletter, one title attracted the most attention by far: A Violinist In The Metro – Washington, DC, despite being the last one listed.  In exploring what made this response so popular, we asked this question to many people in LinkedIn and received almost 80 responses.

Our results – which include our summarizations and direct quotes - are listed below.  Based on these results, we would like to extend an offer to you.  That offer is in bold and follows the responses.

The list of titles in our previous issue:

• Why Even Good Marketing Fails – And How To Fix It
• The Problem Of Self Examination
• Knowledge Management Systems: It’s Not What You Know… 
• It’s All In The Details
• People Drive ERP Systems’ Performance
• Defining A Company’s Identity 
• A Violinist In The Metro — Washington, D.C.

The responses to why the violinist stands out:

What does “A Violinist In The Metro” have to do with productivity? I think many people would find the connection so strange that they would have little choice but to find out!

It is a human interest story; something we can visualize.  It also has some mystery.  With these words comes an image of poor violinist playing in the underground to get on living or you just imagine violinist who didn’t find his place in high echelon of musicians elite, all of this emotionalize and you feel sympathy to this poor guy.

It’s the only title one that’s not business related.  The other titles are business jargon centric.

It’s out of context from the business nature of the newsletter.  Would it have stood out if it was in an eclectic collection of essays?

Fluff comes first – like desert, Dilbert and horoscopes. I like the pleasant stuff at the beginning of my reading.

It piques curiosity, especially since it goes against the grain of your newsletter’s typical topics and focus.

The other articles are too technical or something I need to think about.  This article is easy to read.

I instinctively gravitate toward articles that promise to engage me, especially if there’s a human element involved. The headline “A Violinist in The Metro…” does just that. It suggests a story with a twist. I would turn to it first. The other headlines are more generic. They don’t leap off the page at me.

The successful business strategy books “Who moved my cheese?” and “Our iceberg is melting” use parables that are more easy to digest than dry academic research.

It’s a welcome distraction from all the problems of business and life.  Newspapers and magazines have long realized the importance of this type of article.

People were curious to see how that related to the focus of the newsletter.

You can tell from the first paragraph if the other articles will be of interest to you.  In the Violinist, you can’t. The Violinist heading leaves you wondering what’s next, the other headings tell you too much and don’t leave you wondering.

I think it is because it has a personal side. Even in a regular newspaper, if you read it online and it lists the top ten most popular articles, the ones about people (especially something a little unusual) always win out over drier subjects.

It’s real, not theory.

The other articles seem to be business only, and it feels refreshing to have a little human interest at the end.

Into that mix is inserted a topic on music in public transportation. A cognitive dissonance was created which actually compelled more people to click-through.

Our Offer:

Based on our title feedback, we are now seeking 2 – 3 people who would like to write a monthly “light” piece for our newsletter.  If the article has a moral or some type of “catch” at the end, similarly to the “violinist”, that would be highly desirable.  Each subsequent issue will contain at least one such type of article which will appear before our almost 8,000 subscribers along with your picture and blurb. If you are interested, please contact us at newsletter@prodinst.com.

Bruce Newman is the Vice President at The Productivity Institute, LLC, an acknowledged leader in locating, evaluating and matching the specific areas of expertise of consultants to the needs of its clients.  Bruce also specializes in evaluating companies to improve their productivity and positive cashflow using CFNA. He is also the editor of the Productivity Institute Newsletter, a free content-is-king newsletter and thought leader.  Follow him on LinkedIn, Twitter and the Productivity Institute blog.

by Bruce Newman

   This article was originally published in The Productivity Institute (PI) Newsletter

Hiring the right consultant has always been a difficult responsibility.  Hire the wrong person and it can hinder a project’s outcome, often resulting in additional costs, decreased morale and rework – along with the hiring person receiving much criticism.  Hire an outstanding consultant and receive little credit for a well designed, appropriately budgeted and timely project that significantly improves productivity. 

In a recent survey by The Productivity Institute, respondents were asked how much time they spent on each search.  46.3% of respondents reported spending 5 or more days doing a consultant search.  This inordinate amount of time reflects the importance of hiring the right consultant.  This percentage jumped to 63.5% when including searches of 2 – 5 days.

This significant period of time in the hiring process reflects both caution and three necessary steps. These steps include: locating consultants, checking their credentials and experience, and somehow assessing their knowledge.  All too often it does not include assessing their communication skills and ability to work with others – which most companies consider the two most important traits, as also reported by our survey.  In lieu of these steps, it is easy to understand how personal referrals often shortcut this entire process, though sometimes with very detrimental results. 

All three steps can be very time consuming.  Locating consultants is usually accomplished through recruiters, personal or business references, going to the websites of the relevant organizations and online searches.  Unfortunately, this can result in the receipt of many resumes and business overviews, each of which needs to be closely evaluated.  Even more troubling is determining accurate evaluation criteria.  Without extensive experience and knowledge, a limited skill set can easily be hidden by a candidate’s good salesmanship.  Knowing exactly what skills and characteristics you are searching for prior to evaluating consultants will greatly increase your chances of selecting an excellent consultant.

The benefits provided by outstanding consultants are both short and long term in duration.  An excellent design or service can benefit a company for many years.  One analogy is to compare their work to a building foundation.  If that foundation is solid and broad, more and more stories can be added to it.  Conversely, a poor foundation is unstable and every addition that is built upon it weakens the entire structure, making it more prone to collapse.  When evaluating a consultant’s performance, it is important to assess the long term benefit of their work, particularly in today’s economically troubled and competitive marketplace.

Assessing the expertise of consultants can be extremely difficult.  Determining which criteria to assess and how to impartially apply it is problematic, particularly when applying it only at one specific instance of time.  Regular reviews are much more accurate since they provide a long-term view of the consultant.  Our survey also showed that personal referrals are the fourth most important background factor when considering a consultant.  In fact, many companies mistakenly hire consultants based on these referrals and do not apply these applicants to the same criteria as other potential consultants – which can be disastrous.

In summary, with a median search time of almost five days, companies are expending significant resources in time and money in the locating and evaluation of consultants.  This is understandable since there are several factors to consider and the decisions they make can enhance or adversely affect their company’s positive cash flow and productivity – along with their own careers.

Bruce Newman is the Vice President at The Productivity Institute, LLC, an acknowledged leader in locating, evaluating and matching the specific areas of expertise of consultants to the needs of its clients.  Bruce also specializes in evaluating companies to improve their productivity and positive cashflow. He is also the editor of the Productivity Institute Newsletter, a free content-is-king newsletter (circ. 6,000+) and a thought leader.  Follow him on LinkedIn, Twitter and the Productivity Institute blog.

by Bruce Newman

   This article was originally published in The Productivity Institute (PI) Newsletter

It has almost always been the accepted norm that the most important characteristic when hiring consultants was their knowledge. This was certainly true in the 1970’s through early 2000 when the key characteristic of most candidates was their knowledge and experience.  Other aspects of a candidate were often deemed secondary.

In a recent survey by The Productivity Institute, respondents were asked to select the three characteristics they deemed most important when hiring a consultant. Surprisingly, the most important deciding characteristic that over 53% of the respondents selected was excellent communication skills, surpassing such traditionally predictable areas as honesty and technical knowledge.  Other characteristics in the PI survey included: professionalism, knowledge, integrity, availability, reliability and several others.  Yet, communication skills easily outdistanced them.  This is very significant. 

Selecting and hiring a consultant is not an easy process or decision; yet, it is crucial for companies to make wise choices, particularly when a consultant can have a direct impact on a company’s productivity.  It is for this reason that The Productivity Institute, LLC, assists organizations in locating and retaining outstanding consultants whose skills and results are excellent.

The ability to work with others was the second most important consulting characteristic, having been selected by 45% of the respondents.  The ability to work with others and good communication skills go hand in hand and allows consultants to fully understand a project’s scope and goals while keeping all project stakeholders appraised of the project’s progress.

These two characteristics surpassed the third most important consulting characteristic: experience. Apparently, in this challenging economy, interpersonal and social skills have become every bit as important (if not more so) than technical skills and experience.  Companies have become aware that successful consulting also requires excellent communications.  Just possessing the appropriate knowledge and experience is no longer adequate. This is quite a departure from the 80’s and early 90’s where the importance of social and interpersonal skills were usually minimized in the selection of consultants.

One common aspect of good project management is the ability of all key parties to regularly and effectively communicate with each other. In many cases, it is the critical factor in determining the success or failure of a project.  It is revealing by this survey that this level of importance has been extended to the hiring of consultants.  

In this frightening economy, where consultants are playing a more important and visible role than ever before, the Human Factors have become a more important decision criterion than they ever had been before. The consultants most in demand are those who are skilled listeners, speakers and team players. For businesses to survive and to thrive in this oppressive economic environment, they are looking for consultants who can play more of a coordinating and leadership role. Consultants have become much more than ‘brains for hire’.

Bruce Newman is the Vice President at The Productivity Institute, LLC, an acknowledged leader in the areas of selecting consultants and improving productivity. He is also the editor of the Productivity Institute Newsletter, a free content-is-king newsletter (circ. 5,400+) and a thought leader.  Follow him on LinkedIn, Twitter, Facebook and the Productivity Institute blog.

by Greg Chartier, PH.D., SPHR

   This article was originally published in The Productivity Institute (PI) Newsletter

I’ve been enjoying my crocuses for the last week or so and my daffodils are just on the cusp of blooming.  Spring is here, the signs that foretell the approach of nice weather are clear. You know the expression, “spring turns a young mans’ fancy to romance.”

While it’s not as clear, there are signs that the economy is recovering as well.  There seems to be more confidence, the stock market was up, recently and the times are not good, I can see some hopeful signs of improvement.  While I don’t think that these economic signs will turn our heads to romance, I do think it’s not too soon to think about what I should be doing to be ready for the good economic times to come.

Engaged Employees

An engaged employee is on that is truly connected to the workplace, one that is truly interested in their company and concerned about its success.  They are employees who regularly and consistently do the “right” thing, for the company, for the customer and for themselves.

Over the past ten years, there has been a great deal of discussion about engaged employees and there is ample evidence that they are more customer oriented, less likely to quit, have less workplace accidents and are more productive.  This is especially important in this economic environment.  I believe that:

• There is a skill shortage.  It’s hard to find the people you want to hire.
• The shortage is not going to get better anytime soon.
• Workforce productivity is more important than ever.
• Replacing employees is very expensive.
• Retention is the key value for engagement.

If, as I believe, these workplace dynamics will drive successful firms in the coming decades, then:

• Your strength will be the competitive advantage your engaged employees give you.
• Your customers will stick with you because of your employees.
• Replacing valuable employees will be more difficult and expensive than ever.

We replace capital equipment after a certain time period.  We calculate replacement cost, maintenance cost and pay back.  We calculate ROI and break even.  Human capital maintenance includes systems, services and initiatives that make you more attractive to current and prospective employees.

As a result, there are some things we have to do to get ready:

• Employees have to contribute more to the company.
• Managers need to do a better job engaging their employees.
• Our Human Resources has to add value to the bottom line.

In order to engage our employees we need to focus on four things:

• Engaged employees respond to a meaningful challenge.  Connect them to our mission, our customers, and our value to the community.
• Engaged employees are looking for us to set high expectations, to raise the bar.
• Engaged employees are looking for clarification. How can we adjust their roles to better fit their talents?
• Engaged employees are looking for us to measure their achievements.  Measurement aligns expectations and outcomes; it builds a sense of achievement.

Now is the time to begin to get ready for the coming economic recovery.  Take advantage of these times to prepare your workforce, your managers and yourself to be engaged.

Greg Chartier is Principal of The Office of Gregory J Chartier, a Human Resources Consulting firm and is a well-known management consultant, educator and speaker.  His practice consists of two broad areas:  Human Resources management and outsourcing for firms of less than 100 employees and Management Training. His business experience includes management positions with Pfizer, The Chase Manhattan Bank, The Bank of New York and Johnson and Johnson.  He is also a Board Member of the Job Service Employers Council (JSEC) of the New York State Department of Labor.  Greg can be reached at greg.chartier@att.net and by phone at 914-548-1689.