Business Reorganization After Growth

arrows-box-business-533189As your business becomes increasingly successful, certain aspects of your business will need to change and/or grow to keep up with your demand. Through TAB meeting discussions, I’ve seen this growth take the form of increasing your inventory to meet local demand, expanding to another location to meet national demand, providing more offerings to meet client interests, or outsourcing or hiring more staff to meet all of the above. If you keep hiring more employees, there will come a time when you need to reorganize your reporting structure or even your departments.

In anticipation for future growth, I encourage all business owners to create an organizational restructuring process to ensure your business expansion goes as smoothly as possible. Here are just a few topics you may want this process to cover:

Promoting vs. Hiring ­

When your business requires a new department, you will need to decide if it’s best to promote an existing employee or hire someone new to manage it. It may sound ideal to promote someone who already knows your business, but it could be best to hire someone from outside your business with a more precise set of skills. For example, your highly skilled and dedicated salesperson may not have the right qualifications to lead a new marketing department.

Training

If you do hope to promote from within, how will you prepare your employee for the tasks and responsibilities that come with a higher-level position? If you anticipate expansion in the coming months, I have seen many business owners see success with managers mentoring talented employees to prepare them to take on the same or similar position. An outside hire can learn the ins and outs of your business this same way.

Communication

To ensure everyone in your business is on the same page at every step of growth, you may also want to detail how to communicate to staff that the growth may affect their roles within the company. If big changes are coming and your employees aren’t aware of what they are, they may jump to the conclusion that their jobs or the business may be in trouble when in fact the opposite is true. Your success is their success, and clear communication of any changes in roles or responsibilities can greatly help the progress continue.

Once your organizational restructuring process has been developed and implemented, I encourage you to regularly monitor and reassess its effectiveness. Perhaps there’s an area that can be improved or wasn’t ideal for the type of growth your business experienced. Did you actually need to hire more in-house staff, or should you consider hiring contract workers in the future? It’s important to be flexible and allow your processes to grow and improve with your business.

If you would like to discover how other business owners have restructured as a result of growth, contact me today to discuss becoming a member of a TAB peer advisory board!

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How Do You Provide Employee Feedback?

pexels-photo-70292It’s a standard business practice among large corporations, and even smaller businesses: annual performance evaluations. Many businesses hold on to the tradition of conducting annual performance evaluations to review employee progress and goals. However, 30% of performance reviews decrease employee morale rather than improve it.

To ensure your employees receive constructive feedback in a receptive manner, here are a few other options for providing feedback you can consider:

Be Timely

I encourage business owners to provide constructive criticism as soon as their employees experience difficulties within their role. This way, they can take appropriate steps right away to improve their actions rather than continue down a slippery slope of poor performance, which can in turn negatively impact your business. For example, if one of your employees seems slightly too blunt with a client, consider speaking with them immediately after the meeting to discuss how to better communicate with clients.

This suggestion of providing timely feedback applies to providing praise as well. Although it may be appreciated at any time, your employees will have a precise image of how to continue their good work if they can clearly remember the work you’re commending.

Clearly Define Expectations

Before we hire employees, we have an idea of the tasks they’ll perform and the role they’ll serve in the business. Sometimes, especially in smaller businesses, the roles and responsibilities of an employee can shift quite quickly based on the needs of the business. If there’s been any change in the roles or responsibilities of an employee, it’s important that you communicate any changes in expectations that arise as a result of a shift in responsibilities.

You can improve your employees’ performance even further by discussing with them how to meet the expectations of their role rather than to simply assign the expectations. Much of business success is rooted in two-way communication.

Ask for Their Feedback

Although intimidation isn’t your intention, some employees believe receiving feedback to be a daunting ordeal. To help them be more receptive to feedback, try asking them to comment on themselves first. If they are already mindful of their workplace struggles, this allows them the opportunity to inform you of the steps they are already taking to improve. You can then offer further guidance, as needed. The goal of this method is for your employee to have a conversation with you rather than feel they’re being criticized.

To find out how you can better provide employee feedback or learn how other businesses approach it, contact me today to discuss joining a TAB advisory board!


You’ve Built A Wealth Of Business Expertise – Now What?

office-1209640_1920Many senior executives want to share the lessons they’ve learned from their 20+ years of experience at several large corporations, but with the changing landscape of corporate culture, these execs are being ‘pushed’ out or looking for new opportunities.

I’ve spoken to countless senior executives that have climbed the proverbial corporate ladder, and have been dedicated to progressively building their careers at a huge multinational for years, even decades. However, they are finding that the face of the company is changing and a younger group of individuals now reflect the corporate culture. Some are facing the possibility of being phased out, or are looking for ideas and direction for what may become the next chapter of their career.

There is little doubt that today’s rapidly changing, globally competitive environment often requires a shift in mindset and competencies, and a growing number of senior executives in their 50s are evaluating their value and long-term growth plans. These professionals were hired by large multinationals when in their 20s and have enjoyed travelling the world, solving business issues, creating new processes and plans, organizing teams, going to tradeshows and conferences, and engaging in high-stake meetings with their colleagues in Asia. Where do they go from here?

When you have fully invested in your career and have a wealth of knowledge, the question is how can you share your wisdom and help others reach their goals?

If you are interested in learning about an opportunity to leverage your business expertise and provide guidance to business owners while giving you the freedom to work at your own pace, build equity, meet local business owners and become part of your business community, check out this website or simply contact me to discuss your situation.


The Best Managers are the Best Communicators

As a business owner, you dedicate much of your time to communicating with your clients. While this is crucial for your business, equally important is communicating with your employees. Internal communication touches every aspect of your business from announcing the onboarding of a new client, to introducing a new product to your business line. No matter the size, industry, or type of company you own, I recommend having an internal communications process embedded in everything you do.

An internal communications process allows for the exchange of information between all members of your organization, which will save you time and money. In fact, companies with effective internal communications processes experience 47% higher total returns than those that are not effective at communicating.

I’ve outlined below 3 key elements to help you establish an effective internal communications process.

  1. Have the Right Mechanisms in Place to Keep Employees Informed

Your internal communication mechanisms must be strategic, in order to be targeted and the most beneficial. Consider your company’s current mechanisms, from the methods of communication it uses, to the way your company engages with and seeks feedback from your staff, to the way it measures if the mechanism is successful and identifies any issues for future change.

Choosing what mechanisms to use depends on your size and budget. If your company has multiple locations, you may decide to invest in passive, large-scale communication options to disseminate information. Creating an intranet (a private network only available to a company’s staff) is one great option. If your business is smaller, consider using more conventional communication channels such as an internal newsletter, e-blast, Director’s blog, or notice board. I have even seen some companies benefit from using social networking sites as their primary means of internal communication. More directed options could include Breakfast Briefs for front-line staff, a monthly Director Communications Day, scheduled Director Q&A drop-ins, or Lunch & Learns.

No matter what mechanism(s) you choose, the bottom line is that employees have access to a platform where they can receive important company information so they stay abreast of the information they need to do their job.

  1. Creating a Two-Way Loop

Having great communication mechanisms in place is vital, but ensuring that they consistently generate engagement between management and employees is a key step. It is imperative that business owners and managers actively respond to feedback received and ensure a loop is created, as opposed to a top-down form of communication. By acting on the honest feedback reported by employees encourages more of the same – staff telling it “like it is”.

  1. Measuring the Mechanisms

To ensure that the communication mechanisms you choose are working effectively, incorporating measurement indicators, such as scheduled weekly face-to-face meetings with actionable items reported for follow-up, anonymous employee surveys offered at quarterly or annual company all-staff meetings, or through specific activity surveys through the intranet, could help identify gaps, what is or isn’t working, and what methods of communication work best for your employees.

Regardless of which avenues you choose, the main goal is to ensure employees have several effective paths available to them where they can communicate with senior management and feel heard.

Communicating with your employees is essential for the productivity of your business. Does your company have an internal communications process in place?


The Roles They Are A-Changin’

changes-aheadAs a business owner, you know how important it is to keep things fresh and innovative in your workplace, but when making changes, you’ll need to consider how your plans might impact your employees.

If you are in the process of job redesign where employees are assigned new roles that play into their strengths and contribute to a more successful business, these changes can be stressful to your employees. If someone has been hired for a particular job and then he or she is suddenly expected to perform a different role in the organization, tension and stress can result.

A recent report found that 46% of 1,018 Canadian employees recently surveyed had taken time off work or noticed other employees taking sick leave following workplace changes, a common symptom of a stressed-out workplace.

I’ve outlined below a few tips on how you can shift roles in your organization without contributing to employee stress:

  1. Share your vision.

Why are you doing this? What is this change going to accomplish for your organization? Sharing this vision with employees will allow them to understand exactly why this is happening, and help them find their part in it.

  1. Keep the lines of communication open in regards to role change.

Ask employees how they feel they can contribute to a new role and encourage conversation. By doing this, you can evaluate each employee’s strengths and weaknesses, while giving them an opportunity to work in a new role they would truly enjoy.

Make sure employees stay up to date as things begin to shift. For example, when you have made some final role decisions, send out an email to all staff informing them of the new structure. Keeping everyone in the know will ensure a smooth transition process.

  1. When your employees begin their new role, make sure they feel supported.

Assuming a new role can be challenging, especially if the employee doesn’t have a lot of previous experience in the position. Positive reinforcement can go a long way, as employees are less likely to experience stress when they report a positive and supportive workplace culture.

In today’s workplace, you need to keep things fresh, but maintain a balance against a backdrop of inclusiveness and communication. Learning how to handle change effectively is what will keep your team on the right path to growing your business.

How have you successfully restructured your business?


The Right Plan Needs the Right Combination

network-1989137_1920.jpgWith the New Year now well underway, many business owners are just putting the final touches on their business plans.  That doesn’t mean, however, that adjustments can’t be made to ensure your goals can be reached in 2017.

As a business advisor for many years, when it comes to planning, I tend to come across two types of approaches: the visionary and the executor.  Both approaches have their pros and cons, but as I’ll explain, a combination is what you, as a business owner, should strive for, especially throughout the business planning process.

A visionary knows where they want to go.  They have a “big picture” vision and are often concerned with growing the company by setting goals.  However, they lack tactical deployment and detailed plan as to how to attain this vision.  They tend to not pay much attention to the processes in which their goals are met.

On the other hand, an executor’s primary concern is detail-related.  They set high performance standards but fail to align those tactics to the “big picture” of growing the business because they’re so focused on processes.

As a business owner, do these two approaches sound familiar?  Whether you’re a visionary or executor, I recommend the following steps as a way to bring both visionary and executor together when developing your plan.

  1. Have a Vision

Think “big picture.”  Have a solid idea of your current state of affairs, determine what changes you would like to make, and consider how much you want to grow and in what areas of the business.  Some examples of this might be that you want to increase revenue in your X division by 10% , perhaps you want to acquire a smaller business this year to expand your national reach,  or you want to offer an automated solution to your XX customers.

  1. Dig into the Details

Now that you know what goal you want to achieve, create a plan outlining in detail how you are going to get there. If your goal is to acquire a smaller company this year, then it makes sense that part of your plan will involve searching for available companies.  The devil is in the details as they say, so capture as much detail here so the plan can be easily executed on.

At this point you’ll also need to allocate budgets accordingly and introduce the means or tactics in which the budget will apply to.

  1. Review your progress

As with anything in business, monitor your results.  Regular progress meetings should be conducted to get an accurate picture of how your business is progressing. Most importantly, ensure you are consistently making modifications to ensure success.

A carefully thought-out plan that contains both a big picture vision and accompanying details required for implementation is crucial for success.   Ensure you share the plan with your employees so they are aware of the role they play in its execution.

While your business plan is somewhat of a blueprint, having a vision of where you want to go and how you are going to get there will position your business for success.

 


The Business of Letting Go

8095592977_85b9c8e0bcOne of the biggest challenges I have seen many small business owners struggle with is that of delegation. Most owners started their businesses on their own being the person who does everything and so letting go or delegating can be difficult from many angles. Let’s face it, if you continue to do everything, then why do you have staff and how can you ever hope to grow your business?

Delegation means letting go of the day-to-day tasks associated with that responsibility, but by no means does it mean completely letting go of that responsibility. In other words, if you have hired a sales person to take on the responsibility of sales for your company, although you may not be making the sales calls, you do need to ensure that your sales person has the right sales processes, sales metrics and that they are in fact the right person for the role.

Without the right processes, metrics and people in place, it’s likely the onus will fall back on you to get things done. Sounds familiar? Letting go isn’t easy, but having a proper delegation structure in place will allow you to focus your energy and resources on building a successful business. Here are my recommendations for effective delegation:

1) Have the right processes

Ensure you have the right processes in place to ensure that the task or responsibility will be done correctly and in accordance with your standards. For example, if you are delegating writing you will need to ensure what type of writing, how much time the writing should take, what structure the writing must have, what approvals are required, what source materials, and how the writing must be started. The process needs to be written down, explained to the person who you are delegating it to, and followed up with by you to ensure the process is being followed.

2) Measure your success

The only way you can truly know if the process is working right is to measure its effectiveness and subsequent success. To measure the success of the objective, you may want to consider KPIs as they are an effective way of measuring key business objectives, as are analytics. There are numerous measurement tools available, so finding the one appropriate for your business is important. Whatever metric you choose should be spelled out and communicated to the person taking on the delegated task or project. They need to understand that they are being measured in their responsibilities.

3) Have the right people

In a previous blog, I discussed the importance of building a solid team. Ensuring you have the right people working for you means that you can delegate appropriate tasks with the confidence they will be completed accurately and efficiently. Trust and communication are two qualities that can make or break a business. In my many years as a business advisor, I’ve witnessed numerous business owners cycle through employees simply because they had the wrong person in the role who was not fully capable of handling the responsibilities despite having the right processes and metrics in place. Invest wisely in securing the right team. With the right team in place, you’ll experience no hesitation in delegating important tasks and responsibilities.

Delegating is what most business owners crave – you want someone or something to take the huge responsibility of doing it all yourself off your shoulders. Have no fear, by ensuring you have the right processes, metrics and people in place will mean you can lessen your load, and free up the much-needed time to do what you have always wanted to do: focus on building your business.