The Ten Commandments of people management
Sometimes parting the Red Sea seems easier than creating an environment where staff work hard, well and happily.
By Bridget Gourlay
Be it restructuring a company, hiring to open a new branch or wrestling with the tricky issues of redundancies, dealing with humans can be a nightmare that makes you yearn for the simpleness of an entry level job where watering the cubicle’s pot plant once a week was your greatest management responsibility. Sometimes parting the Red Sea seems easier than creating an environment where staff work hard and well, yet happily.
Elephant Training and HR Limited general manager, Angela Atkins uses her 14 years’ experience to ordain these ten commandments of human resources for both management and HR staff themselves, so everyone can stress less about the wonderful, but slightly daunting world of dealing with people.
1. Thou shalt have a flexible HR or people plan
Atkins says every business should know what the three to five key people issues will be for the next year, and have some strategies in place on how they are going to deal with those.
This might be retention of key people, recruiting for growth, developing key skills or upskilling managers. “But your plan should be flexible because people issues often change! To help the business achieve strategic goals through people, you should realise people issues can change quite quickly. Don’t be so set in a plan that it can’t be re-arranged,” Atkins says.
We plan, God laughs. From the 2IC starting up on his own, to the team leader being head-hunted, to the accountant getting pregnant and going on maternity leave, Atkins stresses the importance of flexibility.
2. Thou shalt ask thy executive team challenging questions about their people
“Often you’ve got a management team from specific areas — an IT person or the financial controller. If no one’s actually asking questions about the people side then you’re in trouble. That’s where HR adds value and challenges thinking,” Atkins says. “All the senior management team should be thinking about how plans for the company will impact on the people.”
3. Thou shalt not use jargon
“You don’t need to use big words to make HR sound more credible,” Atkins advises. People understand simple language and waffling on about “talent pipeline” and “bench-strength” is confusing and isolating. Speak English.
4. Thou shalt hire an HR team that makes the HR process effective and simple
No one wants a convoluted system to stress out about.A good HR team will have quick and easy processes for hiring new employees, induction, developing skills, setting goals, reviewing performance, dealing with performance issues or misconduct and termination when employees leave.
5. Thou shalt hire an HR team who make managers lives easier by simplifying processes, not complicating them
That’s what they’re paid for.
6. Thou shalt not sit in thy office all day
Both the HR team and management team should be approachable for employees to come and discuss issues with, Atkins says. “Get out into the business — go to morning tea, the after work drinks. Be a friendly face.” The entire point of being in HR or management is that you are supposed to be a people person. Creating an open and pleasant atmosphere is part of your job.
7. Thou shalt keep thy HR knowledge up to date
Like any other industry, human resource management is constantly developing and being off the eight ball can be a disaster. Atkins advises attending meetings and reading the research the Human Resources Institute of New Zealand (HRINZ) offers. “It’s so important to keep up with legislation changes, knowing what’s going on the industry you are in and with HR practises in general.”
8. Thou shalt hire HR staff with business acumen
Hire HR people with business acumen so they know where you’re coming from. A good HR person shouldn’t just know about HR — they must also understand business so they can help the business grow in all facets.
9. Thou shalt drive the culture in conjunction with the HR team
“It’s the culture of the company that people relate to, that’s what makes a difference and that’s why people want to stay,” Atkins says. Everyone knows that employees who enjoy their jobs work harder and stay with the company longer, building knowledge and experience bases. Hiring new staff all the time requires extra training and all the expense and time that goes with that. “This culture needs to come from every manager in the business and not just HR,” Atkins advises. Employees need to feel their managers care.
10. Thou shalt help others to help themselves
Empowering people to take responsibility for themselves goes down so much better than acting like the HR police, Atkins says. Discussing with managers what support they need but in the end making them responsible for managing their teams is far more productive than HR trying to do this themselves.
The Ten Commandments of finance
Bow down before the balance sheet you heathens, lest you anger the finance gods, whose wrath spells certain doom.
By Melinda Collins
Money can be a modern day paradox — the more you try and acquire it, the more elusive it can become.It has been the global currency of barter since the emergence of ancient cities and empires and is the currency by which business success or failure is measured on. In short, financial competency is simply essential. Yet, despite its cardinal nature, it seems few know how to manage it.
Financial literacy, or lack thereof, is one of the most common and visible links between success and failure within the business landscape.
The well-being of our businesses is linked inextricably to the well being of our finances. In recognition of this correlation, we have enlisted the knowledge and expertise of E3 Business Accountants managing director Jamie Tulloch to put together the 10 commandments of finance to survive and thrive in business. With more than 25 years of experience in the finance industry, Tulloch is qualified for his commentary.
1. Thou shalt study the basics of accountancy
Understand what is debit, what is credit and what accrual accounting actually means. Accounting should be the preceeding framework of any business, Tulloch says. When you’re going to play the business game, you need to know how to keep score. “If you don’t understand the very basics, stop now or get training.”
2. Thou shalt know what goes into a profit and loss report and why
The profit and loss report indicates how your revenue is transformed into the net income, or your revenue after expenses have been taken off. Quite simply, it tells if your business is profitable or not. “It should be called a profit or loss report as it is either one or the other when it comes to the numbers at the bottom.”
3. Thou shalt understand how cashflow projection works, as opposed to profit and loss
A cashflow projection predicts your cash balances into the future. Profit does not equate to cash, giving the cashflow projection greater insight into the liquidity of the business. “You might have a great looking profit in your profit and loss report, but no money in the bank,” Tulloch says. “Your cashflow report will tell you where all the cash has gone.”
4. Thou shalt be able to read and understand a balance sheet and what it is actually telling you
A balance sheet is a summary of the financial balances of a business. Assets, liabilities and ownership equity are listed as of a specific date. In short, the balance sheet is a snapshot of a company’s financial condition. “The balance sheet lists all your assets and liabilities so you know the net wealth of your business.”
5. Thou shalt know the profit drivers in your business
Profit drivers are business factors that impact very significantly on your bottom line. In a retail environment, a key profit driver may be add-on sales. Focusing on these add-on purchases, while not increasing the amount of customers, can increase profit. “Profit drivers are not always understood and often the profit is not proportionate to sales. Ironically increasing sales can reduce your profits if the profit drivers are out of alignment.”
6. Thou shalt understand what comprises your gross profit and gross profit percentage
Gross profit is the difference between revenue and the cost of making the product or providing the service which earned it, not including operating expenses. The percentage represents the proportion of the dollar the company banks as gross profit. A gross profit of 35 percent means the company is making 35 cents in every dollar, before operating expenses are taken out. If the month by month figure is increasing, business is good and vice versa. “The gross profit is the engine room of your business,” Tulloch says. “If the gross profit is down (either dollar or percentage wise), then the rest of your business will quickly fall into bad shape.”
7. Thou shalt understand the relationship between your gross profit and net profit
Net profit is your gross profit minus your overheads and tax. Generally referred to as the bottom line, it is the total amount of profit a company has made after all other expenses have been taken into consideration. “If your gross profit is strong, your net profit should follow, provided you keep tight control on expenses.”
8. Thou shalt benchmark your business against similar businesses
Know where your business is weak and where it is strong. Just as you would investigate prices elsewhere for goods you are selling, you should investigate the performance of similar businesses. Tracking your own business can assist you in deciding what areas you need to work on. “Why not aim to be one of the top performers in your business category or sector? The financial performance figures of your competitors are available (albeit not by name), so use them to track your own performance.”
9. Thou shalt have the discipline to produce accurate monthly financial reports that tell the whole story
Failing to plan is planning to fail. Monthly financial reports allow you to know exactly where your business is at any given point. They allow you to make educated business decisions and can illustrate trends between years or quieter times of the year, to allow you to more accurately project future income. “If you treat this exercise as less than ‘mission critical’ then you will lose financial control of your business.”
10. Thou shalt stay close to your bank and accountant
Spend good money with professional advisors but only if they know about business. Ensure from the offset you choose the right accountant and bank to suit your needs. Check credentials and areas of specialising before taking on an accountant. Overall determine your accountacy needs and seek someone you feel suits.
“Your bank has what you need to run your business — cash,” Tulloch says. “Use the bank’s cash with the aim of doubling it within three years. “Check the credentials of your accountant — does he or she really know about the hard school of business, or is he or she just a nice, pleasant bean counter.”
The Ten Commandments of communication
Although not quite cast in stone, these are the rules for mastering the art of concise communication.
By Kate Pierson
Communication is translated verbally, visually and through various channels of interaction. Subject to revolutionary changes, communication has been dressed up in hyperboles, dressed down with colloquials and dramatically revolutionised through the proliferation of technology and social networking.
Mastering the art of concise communication is about delivering a message that will reach and be consumed by the recipient in the way it which was intended. In business, communication relates to internal and external relationships and is a critical tool for business growth, efficiency and stability.
These 10 commandments on professional communication have been inspired by the expertise, advice and experiences of Erin Jamieson, co-founder and partner of Convergence Communications, which positions itself as the South Island’s leading strategic communications company.
Working with a range of leading brands and clients, Jamieson has more than 17 years experience in the field of strategic planning and communications. In this time, Jamieson has taught others how to speak the language of effective communication.
1. Thou shalt always tell the truth
In business, an unwavering commitment to professional integrity that guides and governs your internal and external relationships, will serve you in good stead.
The ubiquitous presence of multi-dimensional technology has brought the world to consumer fingertips and the desire for instant gratification has been born. Gone are the days when information was subjected to limitations imposed by time or distance — ‘breaking news’ is now just that. This means telling the truth in the moment is imperative, particularly when confronting a crisis.
You can be sure that following the development of a ‘newsworthy story’ in which you and your business are playing the protagonist, a representation of the facts will also follow suit. And, needless to say, the truth and nothing but the truth should come from you. Because if an alternate version of events is delivered to the public or your customer base through a long line of Chinese whispers, it’s likely the tale being told will became a tall one and in the process your reputation may be assaulted by any misguided conclusions that are drawn.
2. Thou shalt keep thy staff and stakeholders fully formed
Unless you are staying mum to respect commercial sensitivities, ensuring the lines of communication remain open between staff, stakeholders and business associates, is the key to creating a united front in the face of adversity. “This means that in a crisis, you need to be ready to go as soon as you can,” Jamieson says.
It’s not just the materialisation of a potential crisis that calls for effective communication though; offering the core constituents of your business an open door policy in the workplace nurtures an interactive and more productive organisation. Leading by example on the communication front sets a precedent and provides an exemplar on which staff can model themselves.
3. Thou shalt return journalists’ calls
As a mouthpiece for messages, journalists have a duty to deliver. Be it a crisis or a celebration, if an event or an occasion has the X factor, journalists will always pick up the story’s scent. They can work with you, or against you, in these instances and the former should always be your preference, particularly when a situation spells controversy.
Remember, a public interest story will always be picked up by the media radar and it will be represented through your own dictation of the facts or a third party narration. “It’s okay to say you have nothing to tell them at that particular time, but do call them back,” Jamieson advises.
4. Thou shalt not ignore social media
Its presence may have been dubbed a fleeting fad, but interactive platforms like MySpace, Bebo and Twitter are firmly cemented on the social scene and show no sign of vacating the online premises. In fact, Facebook has a family of half a billion fans. Like it or not, social media has become a cost-effective strategic tool for businesses to connect with their commercial culture. So, to keep up with the professional play, why not jump on the Bebo bandwagon and learn to talk the Twitter talk? It’s likely the lingo adopted by these communities will benefit the relationships you have with your demographic culture.
5. Thou shalt ensure consistency in thy marketing collateral and brand presence
Treat your professional property, ie, the brand iconography, aesthetics and image you utilise to represent and define you and your company, with the same protective instinct you would your home or other material possessions. “Maintain, update and look after it because impressions count — this is what you may be measured on by your customer,” Jamieson says.
6. Thou shalt seek advice from experts
If your communications skills are sound but you would like to revisit the fundamentals or integrate new skills into the mix, consult an external expert who can help you grow and enhance your communication vocabulary.
7. Thou shalt be bold
It is comfortable to function within the parameters of what is familiar, but exercising your creative streak when it comes to communicating with your clients will command their attention. Seek advice and creative sustenance along the way from organisations like the Canterbury Development Corporation and New Zealand Trade and Enterprise. “Don’t be afraid to take risks,” Jamieson says.
8. Thou shalt not be afraid to employ people smarter than you
The expression “two heads are better than one” is apt here. It’s about recognising that a collaborative communication effort can breathe new life into vintage practises. Truth is, when the same structures and strategies are employed, the tendency to do more of the same can see your customers visiting your competitors for some variety. When the time calls for a revitalisation of the old, introducing compatible personalities into the mix means you can preserve the professional formula that has worked well for you, but colour your communication canvass with more modern messages.
9. Thou shalt learn from others’ trends
Observing your external surroundings is not about plagiarising or poaching ideas from others, it is aligned with surveying, understanding and absorbing information you can apply to your communication campaigns with your own sense of style. Move beyond the mainstream media and go in pursuit of those with autonomy and liberation in their freedom of expression. They may be harvesting and experimenting with ideas that have strong magnetism when it comes to attracting attention, but are yet to be introduced into your commercial sphere.
10. Thou shalt communicate with ethics in mind
Whatever business path you pursue, be sure to take the moral high ground on the way. When you are communicating in a competitive market saturated with comparable commodities, you may feel territorial over the sales space you are trying to inhabit, but let your conscience be your guide. Acting with integrity during promotional periods and campaigns and avoiding defamatory accusations will preserve your reputation, demonstrate a sense of professional accountability and ensure public perception of your business is favourable.
“Take an ethical view on what you do and an ethical approach to everything you do,” Jamieson says. Consult the Public Relations Institute of New Zealand website at www.prinz.org.nz for guidance in this area.
