Tag Archives: Hours

How Do You Define Roles and Responsibilities? Three Options

Situation: A small company is understaffed and finds it difficult to hire in the current environment. Employees struggle to meet both past and new responsibilities. There simply aren’t enough hours in the day to meet objectives. How do you clarify objectives so that the team can meet them? How do you define roles and responsibilities?

Advice from the CEOs:

  • Start by working with employees to create a list of current responsibilities for each employee, along with the estimated time required to fulfill each responsibility.
    • Within this list, classify each responsibility as “Must Do,” “Second Priority,” or “When we have time.”
    • Look at the hours in the day or week. Assess what is possible to do in the hours available, and what is not.
    • Discuss this with the team and ask whether they agree with both the assessment and priority list.
    • Discuss trade-offs and the availability of any resources with the company that may be currently underutilized.
  • Reassess the expectations of clients to determine whether everything that is being done must be done in the timeframe currently promised. This helps to define what is truly urgent and what is not.
  • Another way of stating the process is to:
    • Prioritize and delegate what can be done, or reallocate what can’t be done with current resources.
    • Look for ways to work smarter to get more done in the time and with available resources.
    • If lower priority items still can’t get completed in the available time either drop them or discuss options for accessing additional resources to complete them.

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How Do You Expand Your Customer Base? Six Solutions

Situation: A company produces a consumable product which provides its primary revenue stream. They have developed a new delivery system for the consumable that potentially competes with products sold by its largest distributor. As a defensive move, the CEO wants to expand its customer base. How do you expand your customer base?

Advice from the CEOs:

  • Take a lesson from Hewlett-Packard. HP’s primary revenue stream comes from ink, not the printers. They assume that their cartridges will be copied but design a new cartridge for each generation of equipment, with rapid equipment upgrades. By focusing on upgrades to the latest equipment, HP understands that if customers keep equipment for 3 years, they will likely use cloned cartridges.
  • If the company is going to alienate a key customer by selling the new technology, then they are going to be alienated. Don’t let them know in advance until the new technology is ready for launch.
  • There is no reason to alienate the large customer. Once the new technology is ready for the market, ask if they want to carry it. If the equipment is good, they may well say yes!
  • Given the concern about alienating this one large customer, start to develop other customers NOW, not later.
  • Currently the company does not serve the “mom and pop” market. Could money be made here? If they require technical support, charge for this. Use the software market model and sell single hours or bundles of hours of support.
    • Most questions will likely be elementary, as smaller customers will not be sophisticated users. Use current staff to handle service needs at one price. If higher levels are support are required, warn customers that this is more expensive.
  • The work that has been put into the new technology should qualify for the R&D Tax Credit.
    • This credit can be used against taxes payable. This may defer tax liability until the company starts to make money on the new technology.

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How Do You Shift Culture as the Company Grows? 12 Challenges & Countermeasures

Situation: A company has grown through its expertise consulting for other companies. For its next growth step the CEO and Board want to shift to a project basis. This entails several changes, from compensation to organization and focus. How do you shift culture as the company grows?

Advice from the CEOs:

  • Risks & Challenges
    • Biggest risk – dissatisfied employees who see less billable income per hour and may not see the “more hours” part of the picture.
    • The biggest personnel challenge will be those who have been with the company for many years, and who will see the most change – maybe not to their specific practices if they can bring in business, but on the project side.
    • Communication is a critical challenge, and also the best way to avoid landmines. Put a velvet glove on the presentation of the opportunity: “This is good news – we know that the low hanging fruit is now mostly gone, and that the remaining fruit is higher; to counter this we now have more options.” Carefully prepare communications to both management and consultant team members.
    • Another potential landmine – the impact on the company’s reputation if it blows up after a year. Set appropriate expectations – the company is introducing a new program rather than a wholesale rebranding.
  • Countermeasures to Mitigate the Risks
    • Maintain a structural option that preserves the old model for those who can bring in new projects and who prefer this model. For them, the new model is just an option that can help tide them over if there are gaps between the projects that they bring in.
    • Present the project option as new opportunity. Give more senior and experienced consultants priority in choosing whether to participate or not in new project work.
    • Plan and create the ability to assess the old consultancy model vs. the new project model. This will be especially important when individuals are spending part of their time in each area.
    • Create a set of metrics for each business – the consulting and project businesses – to measure whether they are on track. Identify and monitor the drivers for each business.
    • Keep the title Consultant on consultants’ business cards – Consultant, Sr. Consultant, etc. Allow them to continue to take pride in their role.
    • Move to the new model through a planned phase-in but retain the option to adjust the speed of transition between the old and new models. This will allow sensitivity to changes in the environment.
    • Don’t consider an immediate and complete rebranding – think in terms of introducing a new product under the company’s well-known brand. Plan a gradual transition of business to the new model. Introduce the new product as a new offering. As it picks up steam, gradually move brand identification and promise to the new model.
    • For the new project model, create incentives for project performance. Show team members that while the hourly rate may be less, if they perform as a team they will share the upside through project bonuses.

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