Tag Archives: Concerns

How Do You Improve Morale and Performance in a Professional Services Company? Four Observations

Situation: The CEO of a professional service company says that his employees have been through a lot of stress over the last few years. He wants to improve company morale to boost performance and is interested in how others have done this. How do you improve morale and performance in a professional services company?

Advice from the CEOs:

  • Manage Morale and Employee Feedback – In times of economic change and adjustment, it is important to have a good handle on what employees are thinking about their jobs and the company as a whole. The use of anonymous surveys administered via computer or a neutral 3rd party generally yields more objective and honest feedback than 1-on-1s with the CEO. They offer employees an opportunity to anonymously share their concerns, and to offer constructive feedback on how to boost company performance.
  • NOW is the time to act – whether the economy is positioned for a rebound or another dip. Employees have dealt with a lot over the last few years and may be starting to look at opportunities outside the company. Therefore, it is important, right now, to put programs in place to:
    • Retain high performing employees, and
    • Communicate to employees what the company is doing to position itself for growth so that they see a bright future for both the company and themselves as employees within the company.
  • Professional services are people-to-people businesses. Focus on relationship building to increase market presence. Recognize and reward employees for their efforts to build new relationships with clients. Use these as examples to inspire other employees.
  • Many more women have entered and become an important component of the workforce. Conduct group meetings to compare the experiences of male and female sales people in relationship selling situations. These will differ between purchase decision makers in different markets and situations where one gender vs. the other predominates. Sharing experiences offers the potential to learn from and to support each other as well as to improve performance. Ask employees how these meetings should be conducted and whether they prefer same or mixed gender meetings.

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Customer Service and Customer Satisfaction: What’s the Difference? Two Points

Situation: A CEO and his team have been having a debate about the difference between customer service and customer satisfaction. How do others work with their teams to improve both customer service and customer satisfaction? Is there a difference between the two and, if so, what is it?

Advice from the CEOs:

  • Customer service has to be clearly defined.
    • The objective of customer service is for the customer to have a positive experience.
    • Customer service is addressing the needs and concerns of your customers in a timely fashion to create a competitive advantage and higher perceived value for a company’s products or services.
    • Customer service is a process that can be taught and trained.
  • Customer satisfaction has to be measurable.
    • Customer satisfaction is listening to what the customer has to say, addressing their issues, and providing a resolution that meets their needs and expectations.
    • It is a measure of comfort, confidence and trust.
    • There is a difference between being proactive and being reactive – work with each to assure that the customer is pleased with their experience, product and/or service.
    • To test this, record and analyze responses to the question “How did we serve you?”

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How Do You Find and Train Staff for Satellite Offices? Five Points

Situation: A company plans to grow from a single site to additional distant sites. The CEO has two concerns: how to bring in the new people, and how to preserve the culture that they have developed as they build new sites. How do you find and train staff for satellite offices?

Advice from the CEOs:

  • First, how does the company currently identify customer targets?
    • Typically the company targets specific personnel within a potential client who will be decision makers or influencers on the company’s projects. Market developers then build relationships with these individuals.
  • Points of focus in selecting employees in other geographic areas.
    • What will be the office configuration? Likely 3-4 individuals, including an engineer, office manager and project manager.
    • Promote the company as the preferred place to work in the new locations. Offer signing bonuses for employees who identify and bring in new people, as well as for the new employees.
  • Does the company anticipate that maintaining company culture will be a challenge as the company expands? Yes.
    • Train new employees in the home office for one month to help them understand the culture. Immerse them in a project so that they experience the work ethic.
    • Have current personnel serve short term stints in the new offices. This will help to build consistency of service and delivery between the offices.
  • What is the best way to recover from a service challenge?
    • Occasionally we all make mistakes. Don’t miss the opportunity that “service recovery” presents to strengthen relationships with clients.
    • A competent and timely response to a problem situation can create an indelible impression on the client.
  • What else can the company do to improve its marketing?
    • Assure that there is an existing cost calculator in each remote site. This speeds response without having to wait for decisions from the main office.
    • Install a traffic plug-in on the webpage for each remote site and feature this on the site webpage. This allows current and potential customers to schedule their visits to their convenience.

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How Do You Delegate on a Team Basis? Four Options

Situation: A CEO wants to develop a collection of skills within her team as an alternative to just having individuals with skills. For example, her role means that she must travel frequently, often for over a week at a time. How can she develop a system to temporarily reallocate the time of the team to cover her responsibilities while she’s away. How do you delegate on a team basis?

Advice from the CEOs:

  • If the team functions on a high level, this is not really a problem. They will step up.
    • Plan for the time frame during which the CEO will be away.
    • List all responsibilities to be covered and set priorities for response. Focus on the highest priorities first. Delegate them or use them as cross-training opportunities for team members.
    • Meet with team ahead of time. Go over what has to be covered. Ask who can cover this, and delegate first, second and third responders – not just a single individual. This is important so that they know that they are backed up as well. Ask: What concerns or questions do you have? Have the team develop solutions.
    • Where processes are involved, break down the process. Create a decision tree and work with the team on how to make decisions with resources available.
    • Set priorities for the time away before leaving. Ask the team how they would handle situations and coach them if they are not sure. Identify resources for them to use if needed.
  • Use the model that a special forces team uses to train and prepare for missions:
    • Know each other’s strengths and weaknesses.
    • Know how to back each other up.
    • Set up situations that are likely to arise and rehearse.
  • Another good model is engineering decision trees.
    • Create decision trees for how frequently occurring situations are handled to help team members determine the proper course of action and how to utilize which resources to respond to these situations.
  • Note the difference between reactive and proactive responsibilities.
    • Train the team to respond to reactive situations.
    • Schedule proactive responsibilities around planned time away to facilitate involvement in these as necessary.
    • Flexibility is critical.

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How Do You Move from Informal to Formal Processes? Five Keys

Situation: A company is growing its sales capabilities and adding staff. The CEO wants to improve the company’s ability to generate new business. To date they have relied on informal channels to generate referrals. How do move from informal to formal processes?

Advice from the CEOs:

  • Establish as standard practice that all personnel ask for referrals in normal communications with:
    • Clients
    • Sales associates of partner firms
    • Individuals who are trusted advisors of potential clients – lawyers, CPAs, financial advisors.
  • Different groups – CPAs, lawyers, financial advisors, etc. – have different interests and potential fears about making referrals. In conversations with individuals from each group, ask why they make referrals, how they are serving their own clients, and what potentially concerns them the most about making a referral.
    • Once this data has been collected, develop proof statements for each audience that address their needs and concerns. These may be different between different audiences.
  • Do the same with new clients, as they become clients. Ask why they chose your firm, and what most appealed to them about the firm. Make this part of the initial client services interview. Collect this data and create proof statements about company performance that will appeal to other potential clients.
    • Note that the responses from brand new clients may be significantly different from those of clients who have been with the company for a year or more. The latter group knows the company, and this will color their vision. Responses of new clients will be more germane to the needs of prospects.
  • Create a system to track frequency of contact with key referral sources. This system will identify, among other things:
    • Contact name, contact information
    • Contact history (contacts to the individual by the firm)
    • Referrals received from the contact
  • After contacting an individual who has been referred, always communicate promptly back to the referrer that the company has made the contact and the results. Always say thanks. Provide the referrer comfort that they will not be shut out.

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Must a Family Business Always be “Family”? Five Suggestions

Situation: The CEO of a business that has been in place for several generations is frustrated by the challenges of working with family members. Relatives are involved in top positions, but frequently place personal concerns above the priorities of the business. This leads to tense situations where other family members, not in the business, will intervene to support their close relatives without appreciating the conditions facing the business. Must a family business always be “family”?

Advice from the CEOs:

  • For the business to thrive, you must match skills and talent to available positions – not just the “best” family member fit for the position.
  • Understanding that it is difficult for one family member to communicate negative news to another family member, consider hiring a consultant or HR company to evaluate and be the go-between in determining best family fit, or family/non-family choices for open positions.
  • If the company involved unionized employees, and some family member employees are union members, this may complicate your choices. Seek outside non-union counsel to help you evaluate situations and navigate solutions.
  • Hire a professional facilitator to assist in running company planning meetings which involve family members. A facilitator can approach the situation from a neutral standpoint, and does not carry the personal history of brother-sister or close relationships within the company. Choose an individual with experience with family-owned companies who can build a company vision that goes beyond personal relationships and concerns. This individual can also help navigate the operational situations facing the company.
  • Look at both your organization and ownership structure versus applicable regulations and licensing requirements. This may present new alternatives for you to consider.

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What is Your Experience Outsourcing to Eastern Europe? Five Factors

Situation: A company is in contact with an Eastern European company that seeks outsourced business from the US. The CEO seeks guidance on challenges managing as well as formalizing this relationship. What is your experience outsourcing to Eastern Europe?

Advice from the CEOs:

  • Location in Eastern Europe is important. There have been concerns with both corruption and IP protection in Russia. Some other Eastern European are more aligned with US/European values and farther up the ramp as outsource partners.
  • Experience of other US companies suggests that your spec must be written much more tightly than if you were doing the work here. If you can’t write a tight spec on the work, don’t outsource it!
  • Contract outsourced work on a fixed fee basis with the bulk of payment due on completion. This helps to assure that you receive timely delivery and the quality of work required.
  • Set up thresholds for the circumstances to engage an outsource partner.
    • Say one US worker is economically worth 5 foreign workers in your domain. Do you have enough work to support this?
    • Determine who will manage the outsourced work. A European is fine, as long as they have experience managing outsourced work.
    • Someone on your team will become their Project Manager. This can be VERY time consuming.
  • Consider setting up an offshore company to shelter some of the revenue from the outsourced work.
    • You want to locate the offshore company in a tax-free country, and to have them handle the funds connected with the outsourced work.
    • The contact in the tax-free country will likely be an accountant, lawyer or both. There are many reputable individuals who do this in tax-free countries, but be sure to check references and background carefully.

Key Words: Outsource, Eastern Europe, Challenges, Manage, Relationship, Experience, Concerns, Alignment, IP, Corruption, Contract, Protect, Spec, Fee Basis, Delivery, Quality, Parameters, Tax Shelter

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How Do You Resolve a Conflict Involving a New Employee? Four Considerations

Situation: A company has hired a new employee with excellent skills who reports to a Director. This person is a self starter who prefers little supervision. Friction is starting to develop between the new employee and the Director. How do you resolve this conflict?

Advice from the CEOs:

  • This person was hired for their talent. However a successful hire takes account of talent, but also role, cultural fit, organizational placement and the needs of the company.
    • For example, if this person is strong in operations but they are now in client services, is this the right role?
    • Similarly, if the culture of the office emphasizes teamwork, collaboration and support, is this the right culture for this individual?
  • Be cautious before tweaking the org chart to create a new role for this person..
    • Consider both your current staff and the new person. You may be creating additional conflict if your actions appear as favoritism.
    • The dominant factor is YOUR plan. If the employee is wrong, replace the employee.
  • If an employee can’t get along with others it is a difficult situation to repair.
  • When you meet with the employee what should be said?
    • First, don’t try to solve the situation before you have a clear strategy.
    • Question and listen. “You’ve been with us a short time, and I want to check in with you. What do you think of your role?” Let the employee talk, probe for clarification of what is said. Take note of what is said. Acknowledge any requests but indicate that you will put them under advisement.
    • Do the same in discussion with the Director.
    • The key is that you are in control. Look at your objectives, and where you fit resources best within the org chart. Once you have your plan, communicate it.

Key Words: New Employee, Conflict, Friction, Talent, Role, Fit, Organization, Company, Needs, Strengths, Skills, Report, Personality, Act, Direct, Concerns, Boundaries, Response, Conversation

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How Do You Negotiate a Tricky Merger? Five Thoughts

Situation: A company is considering a merger. The other firm competes with customers who account for 25% of the company’s current revenue. How do you maximize the value of this merger to the company while mitigating the negative impact on current business?

Advice from the CEOs:

  • The maximum risk from the combination is loss of 25% of current revenue. The merger makes sense if you believe you will gain upside which more than counters this risk.
  • Both companies have brand equity. Maintain both brands and to continue to promote them. Maintaining both brands will buy you time to replace business which is potentially at risk.
  • Talk to customers and get their perceptions of the pros and cons of the potential combination. Ask about any concerns that they may have. Understanding the pros, cons and concerns will help you to mitigate negative fall-out.
  • Legally, in a 50/50 split, the Chairman will call the shots. You will have little recourse to counter the Chairman if he decides to fire you. This individual has built his company through previous mergers. Visit and break bread with those who were principals of these companies at the time they were merged or acquired. This will tell you a great deal about the individual with whom you entrusting your future. You will also learn what the others did during their mergers to help plan your own moves.
  • Give yourself a back door or Golden Parachute after six months if the merger does not go as you anticipate.

Key Words: Merger, Competition, Value, Mitigate, Upside, Risk, Market, Access, Brand, Equity, Customers, Pros, Cons, Concerns, Control, History, Golden Parachute

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