Tag Archives: Tool

How Do You Navigate Communication Style Differences? Four Points

Situation: A CEO seeks advice on how other CEOs work with employees who have significantly different styles of communication. He suspects that this is a source of conflict between employees and wants to reduce that conflict. How do you encourage employees to be more open and receptive to other employees? How do you navigate communication style differences?

Advice from the CEOs:

  • Conduct regular personnel reviews. In reviews work with the individual to develop personal growth plans in addition to professional development objectives.
    • It may be necessary to create enough stress in an interview situation to prompt the real personality to show.
    • Recognize that sometimes an employee who meets professional goals can still be a poor fit for the team. This can impact other, productive team members. Don’t be afraid to fire a bad hire.
  • How much can you expect to mold another person’s communication style?
    • There must be personal motivation to change – the impetus must come from within.
    • To prompt the conversation acknowledge that something isn’t working – or isn’t as effective as expected.
    • Communicate to the individual that the consequences of not changing are potentially worse than the effort to change.
  • Breed adaptive communication skills throughout the organization.
    • Use an assessment tool to start the conversation and align tasks.
    • In dealing with an individual who is confrontational, probe to determine what is motivating the individual’s question or position on an issue. Does the individual genuinely need additional information or are they using a wall of questions as a roadblock to moving on?
    • Work with the individual to organize their answers or input into a plan.
  • Communicate values and goals as they pertain to individual contribution and appreciate the impact of different departments’ actions on each other.
    • Be flexible – some people need more definition and reinforcement than others.
    • Understand that changes and transitions in the company’s focus can shift roles.
    • Review each individual’s role periodically to insure that it fits the company vision. This can increase the individual’s understanding of how they are contributing to moving the company forward.

[like]

How Do You Best Use Cash Flow Statements? Five Points

Situation: A CEO is familiar with and regularly uses income statements and balance sheets in financial discussions and planning. However, cash flow statements present more challenges, particularly when comparing cash flow over time. A second question is whether cash flow statements are more important to C versus S corporations. How do you best use cash flow statements?

Advice from the CEOs:

  • Most companies use the P&L and Balance Sheet to “stay on top” of the business on a short-term basis. However, these statements do not provide detailed insight into where cash is coming from and where it goes.
  • The cash flow statement represents a tracking tool to highlight trends and make projections about important changes in financial flows. All three financial statements are used to plan and monitor performance against the company’s financial targets. However, the cash flow statement is the most meaningful of the three, regardless of business size.
  • If 1/3 of a company’s expenditures is fixed cost how does this impact planning?
    • Carefully watch changes in volume over time and the impact on cash flow before deciding to expand.
    • When deciding whether to commit new resources it may be wiser to allow finances to be stretched for a while or even to turn down some marginal business opportunities before committing to a new layer of expenses.
  • The cash flow statement is not really affected by the corporate structure, since its three areas of focus – operations, investment, and financing – are common to all three.
  • Business is getting more complex. It really pays to understand the key elements that drive the business, and their impact on cash.

[like]

How Do You Enhance Your Customer Service Model? Four Thoughts

Situation: A company wants to up its game by focusing on service. They are evaluating different options to provide customized services to gain a sustainable differentiating advantage over their competition. How do you enhance your customer service model?

Advice from the CEOs:

  • In the gaming industry one CEO sees an effective model focusing on higher level customer service. The top games have allowed user customization using generic customization tools. This allows the provider of the tool kit to serve a larger number of users using a single tool kit to provide a wide variety of gaming options.
  • Another example from the gaming industry focuses on middleware developers. These developers create an interactive knowledge base for customer self-service. The knowledge base is monitored by the host company, and misleading or potentially harmful input is excluded. The benefit is that this enlists clients to provide their input on customer service as well as product development.
  • Another CEO sees this as a useful way to drive down customer service costs by providing more tools and fewer bodies to perform the customer service task. The model’s objective is for the customer not to need personalized service, but to be able to develop solutions on their own using a flexible took kit. The host company gains additional advantage because their user agreement allows them to take the best models used by clients to spark their own product development.
  • A fourth CEO sees lasting value in developing close relationships with customers. They have developed tools that allow the customer to solve simple customer service tasks but require company assistance for the more sophisticated solutions. The company, in exchange for this added expense, learns from the customer interactions.

[like]

Do Balanced Scorecards Aid Decision-Making? Three Factors

Situation: A company is investigating Balanced Scorecards as a management tool.  They want to get the perspective of others who have used Balanced Scorecards on how these are used and where they are effective and ineffective. Do Balanced Scorecards aid decision-making?

Advice from the CEOs:

  • To make good decisions in times of uncertainty one needs readily available up-to-date information on the key drivers of the business. Balanced Scorecards answer four important questions:
    • How does the customer view us? (Customer metrics)
    • At what must we excel? (Key Performance Indicators and Internal Business Processes)
    • How do we continue to improve and create value? (Learning/Growth & HR metrics)
    • How do we look to our investors? (Financial metrics)
  • To effectively use Balanced Scorecards employees must be empowered to make necessary changes, and there must be an effective system for prioritizing efforts – so that when a company has multiple opportunities they can decide what to do first, second, and so on.
  • Empowering people to make a necessary change
    • To improve project estimating systems, identify those who are best at estimating project timelines and costs. Have them develop a template of their process, focusing on how they complete projects on schedule. Implement this template across your estimating function.
    • To improve project on-time completion, shift the development focus to calendar and, if necessary, narrow specs to hit the deadlines.
    • To focus scope of work issues, decide test procedures up-front then work on deliverables that will determine whether requirements have been met. From this, develop project assumptions and budgets. Create a template that focuses on internal best practices and clones these for other projects.
  • Queuing Systems & Priorities
    • Define the vision of success. Then drill down to what’s most important. Look at impact of different options on the organization and performance. Finally, force this issue – if we can only do three projects what will they be?

[like]

What Are Best Practices Hiring Out of College? Four Thoughts

Situation: A Silicon Valley company finds it difficult to find good candidates locally, and also to attract qualified distant candidates to the Bay Area. They want to explore hiring talented individuals out of local colleges and developing them within the company. What are best practices hiring right out of college?

Advice from the CEOs:

  • Hiring out of college or graduate school is a good way to find long-term hires who can grow into positions. It is less useful if your need is for experienced and tenured individuals who can immediately get up to speed in a position of significant responsibility.
  • As in any hiring situation, you should review your hiring process before you start to hire. Many companies hire locally based on who applies or who’s a friend of a friend, rather than making an effort to recruit the best candidates.
    • What is your infrastructure? Do you have a system for identifying candidates who best fit your culture and needs? Do you have personnel who can mentor a new college hire, or are you willing to devote significant time to this?
    • An alternative is to hire consultants to develop a recruiting process or to mentor the new hire in specific areas of development during their first year or two on the job.
  • One CEO sponsors an annual competition at Santa Clara University for papers in his company’s field. This has won him considerable support at the school, and gives him access to promising students, several of whom he has hired. An advantage of this program is that the company gets to know the individuals and the quality of their work before making a commitment to offer them either an internship or a full-time position.
  • Be cautious using candidate assessment tools with college hires. An individual’s profile may shift significantly once they start working because there is a significant shift in priorities once an individual leaves student life.

[like]