Tag Archives: Work

Does It Make Sense to Promote a Relative? Four Perspectives

Situation: The CEO of a company has a niece working in the company on a project basis. The niece is has helped to develop a strategic plan and has performed well. She now wants to move from part-time to full-time and to receive a raise. Does it make sense to promote a relative?

Advice from the CEOs:

  • If you are pleased with the individual’s work, don’t worry about the family relationship – go ahead and hire her. This is especially true if she can play a significant role developing the strategic plan and help you to improve your sales organization.
  • Give this individual a set of responsibilities, a budget, and a time line to do the jobs you want done.
    Evaluate her performance just as you would any other employee. Don’t compromise your standards for a relative.
  • This may offer the opportunity to improve your sales. Have your niece work and travel with your sales people as a systems engineer. This will allow her the opportunity to learn your products, customers, and process – and will provide you with valuable input on how your sales team is performing.
  • You are really addressing two problems:
    • What is your niece’s passion? Don’t make work for her simply because she’s related and available. The work must serve your and the company’s needs.
    • Do you have holes in your business? Put your best people on these If your niece is one of these people, then give her a chance but don’t play favorites.

Does it Pay to Share an Employee? Four Points

Situation: A company has an excellent bookkeeper. However, during slow seasons cash is tight and the bookkeeper is not occupied full time. The CEO contacted a friend at another company, and that company has hired the bookkeeper for 10 hours / week. This is working well for both for both companies. Are there downsides to doing this? Does it pay to share an employee?

Advice from the CEOs:

  • If you share an employee, share at your cost – your fully burdened cost per hour. For the company using a piece of your employee, this may be a significant hourly cost, but is much less expensive than a consultant and lower risk than bringing on an unknown individual.
  • Keep a short term perspective – once the economy improves you will want the individual back full-time. Make sure that this is well understood by the other company.
  • Make sure that this is not a burden on your bookkeeper. Ask whether the individual can handle two bosses. It helps to fully segregate the individual’s time with time rules – for example, by day or half-day with clean break points in time worked for Company A vs. Company B.
  • Overall, the apparent benefits of this situation outweigh the challenges.

How Do You Assess the Value of a Consultant? Four Thoughts

Situation: A company has relationship with a consultant. The consultant has approached the company for additional work with a higher dollar value. How do you assess the value of the services that are being offered? How do you assess the value of a consultant?

Advice from the CEOs:

  • Consulting is a competitive market. Look at the work being offered and tell the consultant that while you appreciate the value of her services and the relationship that she has with the company, you want to talk to others to understand the market rate for the additional services being offered.
  • Are consultants or contractors really much different from employees? How do you determine value when you are hiring? You determine this based on skills and market pay rate for skills. You’ll need to some homework to determine appropriate rates, but otherwise do the same here.
  • Look at your budget and upcoming expenses. If the proposed work is more important than other planned expenses, decide on a dollar figure and tell the consultant that this is what you’re willing to spend. If the consultant can convincingly pitch a higher value, you’ll listen.
  • Is the relationship with the consultant important to you? Is the proposed work important? If both are the case, sit down with the consultant and help them to craft a better offer.

Have You Hired People with Disabilities? Six Suggestions

Situation: A company is expanding. Some jobs that need to be filled are either utilitarian or don’t require full mobility. Labor through agencies runs $20/hour including agency fees. The CEO considering hiring the disabled including wounded warriors for this work. Have you hired people with disabilities?

Advice from the CEOs:

  • In San Mateo County California there is a group called Community Gatepath. They assess the work and work requirements and the company pays for disabled services a fair price piece basis. This worked well for sample product with simple packaging.
  • National groups include SourceAmerica.org and the Small Business Association which can assist with any regulatory questions pertaining to hiring the disabled.
  • Working with Easter Seals one company hired high functioning disabled individuals. For everyone involved, it was a very positive experience.
  • If you are interested in hiring disabled veterans, organizations like Hire Heroes USA provides both resumes and assistance. Tax credits are available for hiring disabled veterans.
  • There may be issues around how disabled workers process information or how they handle emotional situations that are different from non-disabled workers. Sensitivity among those supervising is important.
  • Interview and investigate the sponsoring organization and arrangements. Make sure that they are set up well for your needs as well as those of the disabled workers.

How Do You Maintain Company Culture as You Expand? Six Ideas

Situation: A company wants to open a satellite office in a lower cost geography where they can provide current services at a reduced cost to improve margins. In doing this, the company wants to maintain the same culture and controls on quality of work that they enjoy in their home office. They also need to accurately forecast revenue for the new office. How do you maintain company culture as you expand, and how would you forecast revenue for the new office?

Advice from the CEOs:

  • Maintaining company culture is tricky as a company expands geographically. Assign one of your current managers, someone who buys into the company culture, to head the new office. Also maintain the same hiring and personnel management policies that you have at the home office.
  • As the biggest concern is cost efficiency, make sure that the office manager has clear objectives to realize anticipated savings.
  • Look for an incubator that can handle all the peripheral office details so your staff can focus on their work instead of managing facilities.
  • When it comes to revenue forecasting:
    • Given the lower costs associated with the new geography, look for opportunities to trade margin for longer contract commitment windows to improve revenue forecasting.
    • Both margin and delivery can be lumpy when opening a new location. Obtain a credit line to help you smooth the rough spots in your revenue stream.
    • Investigate deferred revenue options to spread revenue risk – right of first refusal on next generation projects in exchange for a lower cost per project to the customer.

How Do You Motivate Hourly Employees? Five Suggestions

Situation: A company pays employees based on skill level. Raises are given as an employee learns additional skills. In some cases, when they give an employee a raise, productivity drops. The company has tried other approaches including bonus systems and profit sharing but did not find these effective. How do you effectively motivate hourly employees?

Advice from the CEOs:

  • Before trying a new motivation scheme, find out what matters to your employees. It may not be either bonuses or profit sharing.
    • Develop and send out a questionnaire listing different factors – revenue sharing, bonuses, creativity, doing quality work – ask what matters to you? Get their feedback.
    • People work for respect – many studies have shown that as long as the payment offered is fair, salary is secondary.
  • Hire an advocate for your employees – a part-time HR person. An important role for this individual will be to determine what motivates employees, what they want from their jobs, and how improvements in both processes and the working environment can boost productivity.
  • What is the real issue: employee motivation, employee productivity or cost reduction?
    • If material waste is more expensive that labor – create metrics and rewards to reduce waste.
      • At companies that use the Toyota Production System employees receive points for process improvements. At the end of the year they receive a cash payout based on the points earned during the year.
      • Employees are rewarded publicly. The incentives are cash, recognition and respect. These companies find that recognition and respect trumps cash.
    • Depending upon your cost structure, it may be more productive to focus on scrap reduction. Bring in someone with experience who can find the sources of scrap. The effort will pay for itself rapidly.
  • During the hiring process, require educational attainment as evidence of the individual’s commitment.
    • Look for skills experience – machinist, etc. Match skills and experience to your needs. This will lead to faster learning curves and will help to reduce waste.

How Do You Create a Family Charter? Four Guidelines

Situation: The spouse of a CEO works in the business but has conflicts with other employees. This creates personal tension for the CEO. The CEO wants to explore a different role for the spouse, and also wants to create more balance at home. The CEO believes that working with the spouse to create a simple family charter with common values, vision and mission will help the two of them to find common needs and goals both at work and at home. How do you create a family charter?

Advice from the CEOs:

  • As you build a family charter, consider both your individual and your common views. Once you have established common ground with your spouse, you can bring children into the process to reinforce values and share creation of the vision.
    • In preparation for this discussion, both you and your spouse should start by thinking about what you each want. Once you have done this, compare notes and look for commonalities where you agree on what is important. These commonalities will form the core of your shared values, vision and mission.
  • Have lunch with your spouse once a month, just the two of you. Why? Because you are telling your spouse that they take precedence over your second spouse – your job, and you are taking time and attention from work to spend time one-on-one with your spouse. Do this monthly, but not always on the same day – make it more spontaneous and special.
  • Reinforce your family charter with regular family or one-on-one meetings with your spouse and children.
  • When having a conversation, focus on listening and don’t try to “fix” things.

How are You Planning for Baby Boomer Retirements? Six Considerations

Situation: A company has a number of key employees who are nearing retirement. These employees possess software skills and company knowledge which will be difficult to replace. How are you planning for baby boomer retirements, and what advice would you have for this company?

Advice from the CEOs:

  • Following the loss of investment value after the 2008 market crash, Baby Boomers may retire very differently from their parents. Many don’t have the savings to support themselves during retirement and may well work 10 years later than their parents did.
  • Brute economics will force Boomers to continue to work. However, Boomers may want to work their own hours and on their own terms as they age. The focus may switch to part-time jobs just to maintain cash flow.
  • One solution is to offer more flexible working arrangements that allow individuals to keep working but with more freedom to work as they wish.
  • To replace in-house talent, develop mentor and apprentice programs now to pass your knowledge base on to younger workers.
  • The Internet has significantly changed the picture. People considering retirement may relocate to less expensive regions but virtual employment or virtual office solutions can keep them working.
  • Rising health insurance costs and questions about the viability of Medicare under the Affordable Care Act are concerns for Baby Boomers. This is another factor that may keep them working.

Are Your Folks Getting Offers from Others? Five Thoughts

Situation: A company’s employees are increasingly getting offers from other companies. They believe that they have a good team, a good work environment and offer a competitive pay and benefit package. However, they are concerned that the job market in Silicon Valley is heating up. How do you keep your employees on-board when they start receiving offers from others?

Advice from the CEOs:

  • Make sure that your wage and benefit scale continues to be competitive. The Silicon Valley Index, published by Assets Unlimited in Campbell, is the best local survey covering Silicon Valley and the San Francisco technology market.
  • Survey after survey finds that compensation is basically a hygiene factor – it has to be good enough so that needs are satisfied, but it isn’t one of the more important factors in retention. The Gallup Organization has determined that respect, challenging responsibilities, and personal recognition are much more important factors in employee retention. Be sure that you are actively involving your key personnel as leaders in formulating and updating your processes, and that there are plenty of opportunities for recognition and celebration for your staff.
  • If you are generating a profit, share this with the employees as an incentive. This may well be better spent in fun and team-building activities like a weekend in Tahoe for a team, or supporting their creative needs by sponsoring their efforts in engineering design competitions. Whatever is appropriate for your company, involve your employees in setting company performance goals and give them a voice in determining how achievement should be rewarded. Making them part of the process builds better long-term loyalty.
  • On the sales side, establish a reward incentive structure for bringing in new business for the company to prompt field personnel to develop and exercise their business development skills.
  • Whatever you and your team decide, be sure that your choices support your overall strategic plan.

Why Do You Need Uberinfluencers? Four Factors

Interview with Skip Brand, CEO, Martini Media Network

Situation: Thanks to the rise of social media, the 10-20 million individuals who were the influencers with the most purchasing power have increased to 70 million. Within the influencer group, there is a sub group deemed “uberinfluencers” who have the most influence. How do marketers reach the uberinfluencers and why are they so important?

Advice from Skip Brand:

  • Uberinfluencers increasingly spend more time online, are twice as likely to make a purchase, and spend three times as much per acquisition when they do purchase. Also, they always share new product experiences with friends and family via different social media (Facebook, Twitter, Blog’s, etc). For the first time, consumers control a brand’s reputation and are able to set the brand’s tone and image. This is why marketers need to focus more dollars to get in front of this audience.
    • Uberinfluencers spend more time online than the general US population. They are brand savvy, digital savvy and socially networked.
    • They have diverse and specific interests and leverage the Internet extensively to connect with their passion areas. Niche sites appeal to this audience because of the specificity and existence of community. If you better understand where these people spend their time at work and play –you are better positioned to leverage their influence.
  • The company that wants to reach and leverage these uberinfluencers needs to be scalable, exciting and relevant.
    • For this audience, small is beautiful and also scalable. Let’s use the example of golf, a passion for many uberinfluencers. Your site should feature the highest quality courses and equipment if you want to reach 50% or more of this target audience. It must be easy to navigate, provide enough information to make them feel comfortable about product selection, and have a social component to help them broadcast your message.
    • Uberinfluencers spend time on sites that are exciting, engaging and which have a single share of voice. This means one focused ad per page instead of multiple ads.
    • Particularly in a recessionary market the site must work diligently to maintain relevance by continually enhancing site content to provide a fresh experience with every visit.
    • Marketers should put uberinfluencers at the center of their media buy and strategy.
  • To attract and leverage this audience you must maintain a maniacal focus. Reach out to them using social networking tools, which find uberinfluencers where they work and play on the web. Let’s illustrate this with an example.
    • Let’s say that your uberinfluencer is a digital media executive. You will find them on social networking sites because they are living what they are doing. Put the right message in front of them. If they buy they will spend more, but it’s even better if they tell 10 friends about you.
  • Once you start figuring out the keys that attract uberinfluencers, they will start telling each other about you and news of your product will spread across the web, in turn maximizing your revenue!

You can contact Skip Brand at skip.brand@martini-corp.com

Key Words: Strategy, Sales, Marketing, Uberinfluencer, Social, Network, Media, Purchase, Opinion, Influence, Online, Work, Play, Hobby, Niche, Scalable, Exciting, Relevant, Focus, Viral