Issue 50

FOCUS on Business

Make a Mistake; You Might Learn Something return to top

Too often the fear of making a mistake keeps people from trying things or making decisions. They sit back and watch the world go by or wait to see what happens. They are observers to life. They are potential held back by “What if I make a mistake?”

Great Success Comes From Mistakes

No one who has ever achieved success has done so with a perfect record. Every deal hasn’t gone through. Every stock hasn’t made a million. Every sale hasn’t closed. No one wins all the time. No one always says the right thing. Every comedian doesn’t always get a laugh. Nothing in life is perfect. Making decisions and doing things are where our lessons come from. Not getting things perfect the first time, or the second, or the third, is how we learn. We don’t have to crash and burn every time either, but we do have to do something more than we’ve done before in order to grow and gain new skills and abilities. To reach beyond where we are today takes challenging ourselves and our pre-existing knowledge and boundaries. That means we will make mistakes.

The Biggest Mistakes: Not Trying, Not Doing, Not Acting

Our biggest mistakes come from what we don’t do. Few people will beat themselves up at the last moment of their lives for what they did. Our regrets come from the things we didn’t do. The “if only I had” scenarios are those that eat away at us more than the “I wish I hadn’t tried that.” Why? Because even when we try something and it goes wrong, we learn something. We may suffer the consequences in the short term and have some regrets, but later after we have overcome and moved on. We can look back at what we learned and see how we have grown from the experience, becoming more capable than we were before.

We use our life experiences, the good ones and particularly the TGWs (Things Gone Wrong) to push us to higher levels of achievement. Because we don’t want to repeat those TGWs, we look for new ways to do things. We’ve learned our lessons.

Leading the Way

One of my neighbor’s children was visiting one day, and with the eyes only children can have, asked “Why can you do anything?” I had to stop and ask what she meant. “Well, today we’ve baked a cake. Fixed my dress. Did my math and English homework. Painted a picture and a bunch of other things. And yesterday we did a lot of other stuff. Why can you do all of it?” My response: “Well, B. There are a lot of things I can’t do and I didn’t know if I could do all of the things we did. But I wasn’t afraid to try, then if I couldn’t do something, we could find help if we needed it. You can’t ever be afraid to try.”

Leading the way in anything is about two things:
1. Not being afraid to try.
2. Being willing to ask for help if you need it.

What’s the Worst Thing That Can Happen?

Sometimes we worry about the outcome of our failures and get caught up in the “What if I fail?” It is almost like being back in school and being afraid that you are going to make a complete fool of yourself in front of the ENTIRE GROUP OF REALLY POPULAR KIDS—WHAT IF THEY SEE ME? You can recall the most insecure moment of your high school days… and then magnify it by a factor of 10 or 100!

Your Name Synonymous with IDIOT

We’re adults, but sometimes there are those moments when it can feel like we are facing the peer pressure all over again. “What if they don’t like me?” “What if I say something wrong?” “What if (fill in the blank)?” Our minds immediately jump to the worst-case scenario of “If I make a mistake it will be the end of the world. Life as we know it will come to a screeching halt. The ultimate tragedy will occur. I’ll never be able to show my face again. I’ll lose my job and never be able to find another one. I’ll be a laughingstock. My name will become a synonym for IDIOT!”

Go Ahead! What Can Happen?

Look at the worst-case scenario. Say you make a mistake and it is in a work environment. Say it is of a magnitude that it costs the company BILLIONS of dollars. You lose your job and cost everyone else their jobs because you designed a product that had a major flaw that was manufactured and sold. Then it caused lots of customer lawsuits and recalls… and… and… and…You become a footnote in every product liability legal textbook around the world. You can always go on welfare, change your name, live under a bridge, beg on a street corner… OR write a book, appear on the talk show circuit, give inspirational talks, and make millions of dollars on how to detect defects in product designs and life after THE MAJOR CAREER MISTAKE!

So what can happen if you make a mistake? It is somewhere between nothing and a major worldwide disaster from which no one will ever recover. What will happen if you never try? Nothing, or something someone else decides to make happen for you that will be beyond your control.

It’s About Time: Employee Classification and Proper Time Records return to top

When it comes to employment risks, it may surprise most employers to know that the largest risks in employment practices are not currently associated with discrimination or sexual harassment. The most violations and the ever-increasing litigation deal with wage and hour laws including payment for breaks, meals, and overtime.

The Issues

Employers are at risk for a number of reasons, which include failure to properly identify employees who are eligible for overtime and a lack of diligence in payroll and recordkeeping processes to mitigate claims that employees were not paid for time worked or were ineligible to be paid as they claim. Further, many employers simply do not understand the Fair Labor Standards Act and overtime rules at the federal and state level and how they apply. They may “follow” practices learned at past employers, “industry” practices, or simply “run the business their way.”

The Trend and Payouts

While the Fair Labor Standards Act was created in 1938, the Department of Labor (DOL) sought to clarify the overtime exemptions and make it easier for employers to determine who was eligible and who wasn’t in 2004. At that time the DOL raised the salary threshold for automatic overtime qualification and made a few other guidance clarifications. Instead of decreasing the number of overtime litigation cases as it had intended, these changes had the opposite effect. Since 2004, the lawsuits related to wage and hour violations have been increasing steadily with no indication that the trend will be ending.

Some speculate that the 2004 changes made employees as well as employers more informed and aware of the rules. With employees more informed and many states with what are viewed as “employee friendly” statutes, wage and hour claims are on the rise.

The top ten class action wage and hour settlement cases for 2006 totaled about $514 million, with Citigroup Global Markets settling the largest wage and hour litigation ($98 million) according to the Annual Workplace Class Action Litigation Report 2007.  With the ability of plaintiffs to file class action suits, companies of all sizes are extremely vulnerable to the impact of business process and operational failures that lead to non-compliance with regard to overtime and other aspects of salaries and wages.

Big Bucks, Small Business

Yes, the class action litigation cases were big business and big bucks. The large businesses who make mistakes in employee classifications and who have cases made against them for failure to pay overtime or other wages usually have deep pockets. Even when, as in most cases, their business insurance doesn’t cover these types of litigation losses the businesses will not be forced into closing their doors to settle the financial obligations. The question for businesses that are not in the same size category (e.g., the small business) is this: What would happen to the business if we are sued for violations related to wage and hour laws? Are we following the overtime laws? Do we have sufficient documentation of how we determined who is or isn’t eligible for overtime and the hours people are working? Do we have payroll records to show what time we are paying our employees for breaks, overtime, and so on? Do we even know the rules?

First Step: Know the Rules

The first step for every employer is to know the rules, both state and federal. Understand if you are in worker-friendly state or an employer-friendly state, and the implications to your business. Know if your state is a work-day or work-week overtime rule. Understand how the laws have been interpreted in your state; for instance, in California the state Supreme Court interpreted in April 2006 that the premiums owed to employees for missed meals and rest periods were to be categorized as “wages” and not “penalties.”  What is the difference? Well the wages are subject to a three year statue of limitations, penalties are subject to a one year statute…The differences add up financially.

Second Step: Accurate Records

The importance of accurate records cannot be overemphasized. Timesheets and written policies and procedures are critical to the company being able to demonstrate that sufficient level of effort has gone into compliance and that there is documentation of what was reported, tracked, and paid. The ability to show that there are policies, procedures, and oversight that are consistent with both state and federal laws, as well as the means to provide support for the payroll calculations and practices, will be the difference between winning and losing any litigation—should it come to that point.

Mitigation and Prevention: Proper Understanding

With a proper understanding of the underlying laws and requirements comes an ability to keep the business out of trouble, or at least to mitigate it. By having a business that is aware of the requirements and is engaged in the process of compliance, then incidents of non-compliance will be significantly reduced if not fully eliminated. The environment for compliance is created and supported throughout the organization. It won’t preclude members of the organization from circumventing the system for off the books work, that is truly up to management and the culture of the organization. But the organization that intends to comply will have a significantly better chance, than one that has no plan, process, or clue about what is required.

  Seyfarth Shaw Law Firm. Fourth Annual Workplace Class Action Litigation Report. Chicago: Author, 2008.
  California Labor Code Section 226.7, which states "If an employer fails to provide an employee a meal period or rest period in accordance with an applicable order of the Industrial Welfare Commission, the employer shall pay the employee one additional hour of pay at the employee’s regular rate of compensation for each work day that the meal or rest period is not provided."

Dancing with the One that Brung Ya return to top

Loyalty.  Trust.  Integrity.  Some may say these concepts are as old-fashioned as handshake deals and the old saying of “Dancing with the One that Brung Ya”.  The old way of talking about being loyal to the person who brought you to the party, who introduced you into the group, who facilitated a business deal.  It has a very important meaning:  Don’t forget those who helped you get your foot in the door and helped you get started.

There are many, many times when the student will surpass the teacher, when the mentor will be left behind by the protégé in skill, in success. That doesn’t mean the student or the protégé must leave behind the one who brought them to the dance originally.  When the roles begin to reverse, it is time for the protégé, the student, to reach back and say “thank you,” to extend the same courtesy and to extend invitations to the parties being held.

It doesn’t mean doing deals where the person or organization isn’t capable of executing.  It doesn’t mean offering crumbs from the table.  It means recognizing and giving credit to those who gave you opportunities to learn, to grow, and to advance.

There is another meaning to “dancing with the one that brung ya”.  Have you ever been involved in a deal which was originated by one individual or company only to have that company cut out of the final deal?  You know what I mean.  Someone comes up with the idea, for example, to create an investor forum which would provide access to capital markets.  This forum would bring together various parties and introduce them to each other.  It would share the concept, get the momentum going.  What happens next?  Some of the people who “signed up” for the concept go off to start their own.  This undercuts the success of the entire concept because getting momentum for multiple groups starting simultaneously is nearly impossible.  The “separatists” undermine the entire concept and it becomes ”Well, it wasn’t that great an idea any way.”

Another perspective on the “dance” theme occurs when starting a business.  Two or more parties come together to pool resources and expertise.  A third party withholds his/her expertise, resources, and time waiting to see if the new business is going to work.  The other parties can’t make it work without the third party’s efforts.  Self-fulfilling expectations – “I’ll wait to see if it is going to work before I’ll put any effort into making it work,” and sure enough, it doesn’t. …I’m not willing to dance with the ones who are bringing me.

It is to be expected that one enters into a new relationship with caution, whether it is business or personal.  To take time and care in investing our selves, our resources, our time, is the logical behavior.  Once we are in a relationship, it is wise to continue to monitor and to ensure that we are still well treated.  It is also wise to continue to treat those with whom we are in relationship with respect, with loyalty, and as we would expect to be treated.  And hopefully, we don’t expect to be left behind.

Tools Required - Capability Imperative return to top

Every task requires the right tools.  Building a successful business is a task like no other.  It requires a comprehensive set of tools which fit the task.  Using one tool when another is required often leads to unanticipated consequences.  Having the right tool isn't sufficient - it is also necessary to know when, where, and how to use it.

Tools Are Tools, Not Solutions

The best tool used in the wrong situation can't generate the same results as using the right tool for the right task.  One example of possible tool/task mismatch is the implementation of new software, whether accounting, business process, or any other type.  Software applications are invaluable tools, but the only problems they can fix are those related to information flow, processing, data gathering, and reporting.  They do not address the real issues of the business activities.  They don't deal with the underlying processes or management decisions which generate the data and financial results.

Automating Inefficiency – Software and Other “Tools”

The implementation of new accounting software is one instance which illustrates this point.  Many organizations identify improved reporting as a means of generating better results; when you get more information you can manage the business better.  This is often an appropriate tool for improving business and individual performance.  However, accounting software can generate vastly different amounts and types of information depending upon how it is structured.  So, even if you get the "right" accounting software, an ability to set it up to support your organization's needs can still leave you in the dark.  Right tool, right task, and an inability to wield the tool appropriately spell disaster.

Problem Identification – The Sharpest Tool

The most valuable tool any organization can possess is the ability to identify its problems.  Many organizations are in a continuous tool acquisition mode.  They constantly seek the "ideal" tool to fix "the problem", throw money at symptoms, and fail to get to the root cause of business issues.    Further, the problem must be well-defined and the root cause understood for any tool to have an impact.

One Problem, Many Options

Once the scope of the problem is known, it is necessary to generate a range of possible strategies to be evaluated based upon the cost, organizational constraints - including the internal capabilities - and the possible benefits achieved by each.  Problem definition and analysis enables the organization to obtain and deploy the “right” tool set and learn to use it to the best effect - thus ending the eternal quest for the "magic bullet".  The biggest, newest, flavor-of-the-month tool may not be the "answer".  It may be that the answer lies in understanding how to deploy and fully utilize the tools you have already acquired.

Keep in mind that the "tool kit" available for use in improving your organization may be the people within your organization.  If the organization is properly staffed - with qualified, capable, knowledgeable, and experienced team members - the combined intelligence of this group, when properly utilized, contains tremendous capacity to improve results.

Unfortunately, the tool that is most often overlooked is existing team members - individually and collectively.  The habits, assumptions, perceptions, and lack of an ability to maintain a core understanding of the spectrum of "talent" within the existing organization often is the prevailing constraint on organizational success.

Organizations expend substantial resources in recruiting, screening, and hiring individuals who add to the organization’s capabilities.  Often applicants are incorporated into databases which allow the organization to identify critical skills, experience, and credentials.  Once those individuals become part of the organization; once they are absorbed into the internal structures, the visibility of skills, knowledge, experience, and abilities often disappears or becomes "discounted" due to "close proximity" or "familiarity".

Organizations which fail to maintain the visibility and functionality of software and other technology tools and lose sight of the talent already within the organization seem to be doomed to perpetually seek the "holy grail" of “tools”.  That is an expensive and costly process which all too often leads to impaired competitive capability and rising costs of doing business.

Having the right tools is important.  Being able to maximize the return on any tools you have is imperative.  Whether the tools in your tool kit are people, technology, or any thing else, knowing "how-to" is the ultimate determinant of success.

Lea Strickland to Key Note Profitability and Sustainability Conference in Monterrey Mexico return to top

Lea Strickland, MBA CMA CFM CBM, President/CEO of F.O.C.U.S. Resources will be the keynote speaker in Monterrey, Mexico on March 7, 2008.  Ms. Strickland will be speaking on “Profitability and Sustainability – From Sales Efforts to Bottom-line Results” to an audience of senior executives from industrial and manufacturing organizations with operations in over 25 countries.

Ms. Strickland was selected to speak based upon her extensive experience, resume and credentials - working with companies on profitability and business process initiatives.  Her innovative business programs including CAP (Commercialization Advancement Process)™, START (Strategic, Targets, Alignment, Results, and Tactics)™, and many others have been provided in seminar and workshop formats in the United States and are now being offered internationally.

Old-fashioned Business return to top

Sometimes you get ahead by stepping back and doing things the “old-fashioned” way, – you go faster and farther than you expected.  For instance, it is quicker and more immediate to send an e-mail, but taking the time to generate a hand-written note and put it in the mail in a hand-addressed envelope says you are making time to do something special.

I have to confess that I have done (and continue to do) things both ways.  I frequently send an e-mail thank you or acknowledgement.  But I also like to take the time to send the occasional hand-written note.  More and more I find I like the connection that is generated by writing the note.  Perhaps it is just the way my mind works, but I know I can backspace and correct or adjust anything in an e-mail before I send it.  Yes, I can do the same with a note; a note, however, is more tangible.  Once the ink hits the paper it is there – I either send it as it is or invest in another piece of paper or a card and do it over.

Again, perhaps it is just me, but I don’t like to throw away paper, so before I put pen to paper I try to make sure what I am going to say has meaning, is accurate, is legibly written, and is spelled correctly.  After all there is no spell check for a piece of paper with hand-written words.

There are other things that are “old-fashioned” such as handshake deals, doing business within your “community” circle, and the like.  Each has its time and place and purpose.  Some can still be used to good effect; some can place you or your business at significant risk.

Have you ever heard that you shouldn’t do business with anyone with whom you couldn’t do a handshake deal?  I have, many times, and I believe it is true.  Written agreements can’t prevent bad things from happening, but they certainly can serve as a means for resolving issues and defining the consequences when things go wrong.  In our busy world, the only constant is change.  You may start out doing business on a handshake with someone you can trust, but there is no guarantee that person will be there tomorrow to complete the deal, so written agreements have become compulsory.

Many a handshake deal has been done within the circle of friends, acquaintances, and people other people know.  Again this can be a tremendous advantage when seeking prospects, customers, and allies.  It can also limit your perspective and options.

I like doing business with those I know.  In the book, Who’s That Sitting At My Desk, Jan Yager coins the term “workship” to refer to those relationships that begin while working and haven’t quite progressed to friendship but are more than interchangeable co-worker relationships.  The degree of knowledge you have about someone depends in part on the length of time and the situations in common.  Doing business is all about forming “workships” and networking beyond your immediate circle.

Workships are about gradually expanding our “inner circle” on a conditional basis.  They are about making a connection on a meaningful level.  Getting the opportunity to grow beyond your existing circle requires making a connection that is meaningful and shows you value the other person.  Yes, it’s a bit like the handwritten thank you note, a bit old fashioned.  It isn’t about rushing into a networking event and expecting immediate “connection” and entrance into the trusted circle of business associates.   Growing your circle of workships means leveraging the “old-fashioned” and the “modern”.  It means networking and following up with a personal touch.

Let’s take a moment to understand the modern aspects of business – the networking events, both free and pay for entry.  They both have a place in doing business.  They both require “participation.”

It has been said there are two ways to succeed when networking.  The first is simply to show up.  The second and more successful is to show up prepared.  Part of showing up prepared is doing some old-fashioned giving first.  Be prepared to help others achieve their objectives and follow through.

Many times you will attend networking events fully prepared, only to find no DIRECT benefit from the event.  This is the time to kick it into another gear and look for INDIRECT opportunities – finding someone you can help now without expectation (but definitely hope) that there will be reciprocity later.  The old adage of what goes around comes around definitely applies – both to the good and the bad.  Reach out and help someone else and see what comes around.

Networking enables you to meet a large number of people who may or may not be prospective clients or buyers of your product or service.  They are all potential workships.  Go to networking events, but don’t leave it there.  Take action – follow-up.  Get their attention with some old-fashioned relationship building skills.

Hey, may I borrow a pen?

More of the Same return to top

Over and over I see businesses trying to get different results from doing more of the same.  Sales are down?  Add more sales people. Profits are off?  Cut costs and lay off.  Competitors are slashing prices?  Follow suit.

Businesses must be strategic in their decision making.  Automatically taking the same actions which have worked in the past or are "traditional" approaches to dealing with adverse business conditions can be costly or even deadly to your business.

Reaction can be turned into pro-action if you establish a process for quick analysis and alternative identification and assessment within your organization.  This doesn't mean instituting processes which lead to analysis paralysis, but it does mean seeking out data to do more than close your eyes and pray that you guessed correctly.

Pro-action means having information about your organization’s performance over prior periods and in recent weeks.  It means understanding the sources of your organization’s results on a day-to-day, week-to-week basis. When you know the internal and external drivers and factors contributing to the success of your business, you are able to put environmental change(s) into the perspective of their potential impact on your business and act quickly.  You don’t need to rely on what someone else does or adopt a typical reactive stance.

Businesses knowledgeable about their internal operations and the impact of those operations on profitability and market position are more nimble in response to changing conditions.  Underpinning that knowledge must be a clear strategic plan which enables the business to change tactics and remain on track to reach stated objectives.

It is mandatory for any business to maintain an arsenal of options to keep it on target to achieve objectives, regardless of competitive, economic, or market changes. How you develop those competitive weapons depends upon the core competencies and ability to execute that you organization possesses.

How do you change from a reactive to a proactive stance?

1. Educate yourself to understand financial statements.
2. Know your organization's capabilities and how they generate financial results.
3. Develop comprehensive internal reports and performance measures that can serve as early warning signals to trigger changes in tactics.
4. Establish accountability for early notice on issues – you want to know when things aren’t working or getting the expected results as soon as anyone in your organization knows!  Don’t encourage waiting until it is too late to adjust tactics.
5. Reward the communication of good and bad news…Encourage a willingness to let you know when something isn’t going to happen according to plan so you can adapt – add resources, communicate to the customer about a delay, and so on – and you can set your business up to take action before an issue escalates into a failure to achieve results.
6. Define roles and establish accountability for individuals and groups – clearly communicate expectations and have measurable criteria to determine whether or not goals are reached
7. Align the organization’s priorities by establishing no more than three objectives to be achieved by the organization as a whole; connect individual performance deliverables to the organization’s goals
8. Establish an environment where not making a decision is acknowledged as a decision – one not to take action and let the cards fall as they may
9. Develop decision-making skills in your organization by delegating authority to make decisions and take action – don’t take the training wheels off before someone is ready, but begin by mentoring team members in decision-making and how to establish when taking an action (even if it doesn’t work as expected ) is better than letting “fate” have a hand
10. Reward decision-making and action – through acknowledgement - recognize the effort if not the result.

Copyright © 2008 F.O.C.U.S. Resource, Inc.