Business & Management

Is this the “New Business Economy” or the “Back to Basics Economy”?

Customers are a primary relationship in for-profit businesses. In non-profit business, relationships are typically a bit more multi-dimensional since they include members (often of disparate categories) with whom relationships are very akin to the for-profit customers, as well as sponsors and donors who may also be members. Admittedly some of these boundary definitions blur, but in most non-profits and many for-profits as well, exhibitors and advertisers get added to the list of relationships for success. Many for-profits add investors to their list. Whether the organization is for- or non-profit, relationships almost always include employees and contractors. And, it’s rare that a business does not have relationships with suppliers. Yes, we’re discussing your business’ stakeholder groups and success of your business can be linked to your application of the three simple steps listed in the following business relationship success primer.
As our economy has changed we have seen many businesses come and go. It’s not uncommon to see a new “up-start” organization burst on the scene with pricing that is so unrealistically inexpensive that experienced buyers wonder how they can stay in business. Often the new organization, can’t sustain the pricing or the promised levels of service that accompany it. Sadly, to compete in this economy, many mature companies have made pricing and service adjustments and met the same fate.
Take a look at the business landscape now. Today’s thriving companies have placed relationships at the core of their success model. Your business relationship primer below will serve as a good reminder of how successful businesses operated in the “good old days”. Post the four simple steps in a visible location in case you are enticed to ignore what has always been true – business relationships can be your best guarantee to sustained success.

Your Business Relationship Primer
1. Meet their needs.
2. Establish a culture of trust.
3. Get their participation.
4. Keep the connection relevant.

Some of you will recognize these four simple primer statements as steps to success in the personal relationships you share with friends and spouses. That’s not surprising since this is an article about relationships. Although the focus here is on business relationships it turns out that there are vast similarities in both personal and business relationships.

1. Meet their needs.
Whether we’re considering relationships with customers, members, sponsors, donors, exhibitors, advertisers, employees, investors, contractors, or suppliers, meeting each group’s needs is paramount to sustain success. Each group must also meet the needs of our organization. For example, if we don’t supply a customer with what they need, we won’t get the relationship off the ground. Likewise, if the customer doesn’t supply our organization with what it needs, the relationship can’t begin. Since needs generally focus on product, service and/or exchange of resources such as money, the combination of these factors must work for both parties.

2. Establish a culture of trust.
Trust is foundational to all relationships. Admittedly, trust sometimes is a written agreement, but once documented, both parties can take comfort in the solidity of the relationship. How is that any different that a prenuptial agreement in which both parties care deeply for each other (we hope) and want to share their future?

3. Get their participation.
A level of participation between both parties must exist to maintain a successful relationship. Compare this concept to the personal and business relationships in your life. Do you really think you’ll continue to be a part of that civic organization if they don’t make you feel welcome and get you involved? You want to feel as though you “belong”. Will your customers stay loyal to your organization if you don’t appreciate them, get their feedback, give them great service and when possible, engage them in the relationship?
There are a myriad of ways to engage stakeholders. The popularity of corporate service projects is a prime example of stakeholder engagement. Your organization’s willingness to serve society and our community by participating in a service project such as building homes for the homeless, stocking a food shelf, or any of the countless choices available today, spotlights your organization’s values and commitment to citizenship in our society. Customers (or employees, contractors, exhibitors, suppliers, investors, etc.) gain a new appreciation of your organization and as a result of their engagement in the project, are more invested in the relationship.

4. Keep the connection relevant.
Participation in any relationship fosters allegiance. It opens doors to communication. The sharing of ideas and alternative solutions enhances the resourcefulness and inventiveness of your organization. And often that communication is the key to our third statement – relevancy.
Long-term relationships can only be sustained with relevancy at their core. Both parties must be relevant to even begin the relationship and work to retain relevancy. As an example, the customer must need your organization’s product or service. They must trust the product or service, and your organization. Your organization must need to sell your product or service to that customer. This age-old supply and demand theory still drives business and connects all manner of stakeholder groups to us in a cycle of success that continues to be significant today.

Business relationships can be your best guarantee to sustained success.

Perhaps the “new business economy” isn’t much different after all. Maybe it should be termed the “back to basics economy”. Celebrate and invest in relationships to sustain your business, your career, your investments and your future.

Contact Rosealee Lee, CAE, CM at Rosealee.Lee@dctc.edu or by telephone at 651-423-8604.

Are Newspapers Dying?

As a marketer with a master’s degree in mass communications, I remember the days taking courses on creating newspaper copy, figuring out how to lay-out a newspaper, etc. But my primary question now is… “Are newspapers dying?”

According to the American Journalism Review, they are. We saw a decrease in newspaper report by 15 percent in 2008. There is life after newspapers. However, journalists need to adjust their thoughts about what type of work they are willing to do.

Not surprisingly, many end up in the marketing communications field, where the jobs are, with little education in marketing or no experience in the field. Often previous journalists end up working for a company writing company stories and news/press releases, the very thing they received hundreds of each week at the newspaper and had determine if any of it was worth printing.

Many reporters can apply their writing skills in marketing departments, although additional training in the field of marketing will be key if they plan on advancing in the departments. The ability to understand all facets of marketing as it relates to increasing sales of a company may be a little harder to grasp for former reporters who did not need to get involved in this aspect of business previously.

To find out more about the fate of many reporters, see the American Journalism Review article by Robert Hodierne at http://www.ajr.org/Article.asp?id=4679.

Communications as a Basis for Much Diversity in Business

As business professionals in an ever-growing diversity society, we need to be aware of the communication style differences in our clients and fellow colleagues.

Some of the primary factors affecting communications, which most of us will encounter in our careers, incude: general personality, age, culture, and disability – both physical and mental. Although this is not a complete list of factors, these are the ones I will discuss in this post.

Being aware of these differences in communications can assist each of us in how we understand others as well as how we interact with each other in our business lives.

Communications Differences Based on Personality

Experts indicate that there are four primary personality types that can affect one’s communications styles: Sanguine, Phlegmatic, Melancholy and Choleric.

The social butterfly, prone to spontaneity, is the best way I can define the sanguine personality type. This person is one who tends to extract energy from being around others.  Their conversation style is often very outgoing. Plus, they love to engage people through active listening and small talk.  The sanguine personality works well at keeping conversations going in teams, often filling voids of thought during brainstorming activities.

The phlegmatic personality type is often the person who is easy-going in the group, not seeking to be the center of attention. They work well with others and are thoughtful in their conversations, often pausing to clearly form what they are planning on saying. These people work best on teams which have a strong, direct communicator already in place. These personality styles tend to complement each other, balancing out a strong personality with a calmer one.

Full of emotion and often having a characteristic of being detail-oriented, as well as making decisions based on keeping order, the melancholy personality tends to be less direct in their communications. They move in a slower, more purposeful pace than the direct communicator. The team members who are sanguine are more apt to work best with the melancholy personalities.

Choleric personalities, of which I place my communications style, are more direct and “brassy” in their communications style. They often take over the leadership role in a group even if they didn’t intend to do so initially. The choleric person may be overwhelming for the other personality types because they are often talkative, putting too much detail in their conversations. In business, these are excellent individuals to spearhead projects and see them to completion.

Communications Style Differences Based On Disabilities

Our workforce is also becoming more diverse, providing more opportunities for people with various disabilities to hold important roles in their chosen careers.

Communication styles of people who have been diagnosed with a disability vary as much as their diagnoses do. Their personalities can also affect communications styles.

If a person has a physical disability, her communications style might be affected in any of the following areas. This list is however not exhausted.

  • Issues with the formation of words, sounds and complete sentences
  • Issues with non-verbal communications interpretation or execution (hand gestures, facial expression, body movement, execution of emotions)
  • Processing of communications (speed and context)
  • Use of sign language, interpreters, communicative language devices, or pictorials may be needed to communicate messages

If a person has an emotional, behavioral, sensory, social or mental diagnosis, her communications may be affected through:

  • May not be able to process another person’s communications completely
  • May not be able to process typical responses or requests
  • Possibility of escalating conversations
  • Inability to interpret non-verbal communications/signals
  • Social interactions which may be difficult for the person

When communicating with someone, maybe a client or a fellow colleague, who has a diagnosis that could affect her communications, it is best to assess the situation first and then determine the best approach for each person’s communications style. Ask yourself how you can better relate your message for the person based on their individual learning/communications style.

Communications Style Differences Based On Age

Even though the communications of the various defined “generations” can vary from person to person, experts feel there are some commonalities in communications styles within one’s defined generation. These similarities can be due to the events and changes in society in which group members were exposed during their lives.

Traditionalist or older adults may have lived during World War II. They tend to have some difficulty with adoption of technology and prefer face-to-face communications vs. emails. Since traditionalists strive for order, a change in a typical process may need to be explained thoroughly. The traditionalist brings a wealth of life experience to the company and business relationships.

A baby boomer, although not a stranger to technology, tends to prefer verbal communications vs. communications driven by technology. Since people in this generation tend to be hard workers like the traditionalists generation, they tend to work great on teams. However, their expectations of fellow colleagues in their companies or on teams can be high and baby boomers get discouraged when others don’t live up to their benchmark of work levels. The baby boomer often encourages the younger generations in the companies to communicate more professionally and through face-to-face interactions. This is especially important as younger adults are often having increasing problems with interpersonal communications.

Gen Xers are quicker to adapt to new technology than generations before them, enjoying communications in emails. Their communication style tends to be more direct and purposeful. Since this generation tends to be more independent and enjoy flexibility, participation on teams can be more difficult for Gen Xers. Being more visual in their learning styles, Gen Xers prefer visual direction in their work assignments vs. detailed and lengthy reading and guidelines.

Millennials or Gen Yers enjoy technology. Their communications tend to be in short, with quick emails and texting. Since their world has been more diverse, they are more comfortable than other generations with one’s diversity. Talking down to this generation will get the speaker nowhere. Use of visuals with less text is important to reach this group with information. On a team, the millennial will be innovative but won’t be the first one writing an extensive report. 

Communications Style Differences Based On Culture Barriers

With a growing number of people with diverse cultures as part of our workforce and client base, we need to be familiar with the differing communication styles. This knowledge will us to better interact with our colleagues and customers.

The way one communicates is greatly affected by the culture one is raised in. Edward Hall, a noted interculturalist, was quoted as saying “culture is communications” because it helps a people understand the expected behavior and how one should communicate with one another.

In general, interculturalists have pinpointed areas of differences in cultural communications which business professionals should be aware of:

1. Indirect/High Context – People in indirect/high context cultures tend to place more emphasis on non-verbal communications and rely less on words to convey the meaning of the idea they want to get across to another person. The society often is more homogenous.

Direct/Low Context – On the other hand, people in direct/low context cultures, such as in mainstream U.S., have developed a more direct communications style. Because of these differences, emphasis is placed on words and often these words are interpreted literally.

2. Saving or Losing Face – In a culture where “saving-face” (to preserve one’s good reputation or dignity when something has happened to hurt it) is less important, saying no or providing criticism is usual. Saving-face cultures often avoid confrontation, with preservation of harmony overriding the truth of a situation.

 3. The Task Vs. The Person: In some cultures, communications starts with the task or activity which needs to be done first and foremost. However, in other cultures, the person and the task are connected. So when conducting the important business at hand, like completing a team project or group discussion, small talk often comes first to establish a relationship and then the task is handled.

4. Verbal vs. Non-Verbal Communications: Many of us know that in mainstream U.S. culture, over 70% of the message conveyed to another, through face-to-face communication, is non-verbal. This involves hand gestures, use and length of eye contact with another person, body movements, tones and volume of voice, facial expression, personal space, and touching. This even plays into the concept of time, such as being on time or late to business gatherings.

Growing Business in a Diverse World

The best way to help one become better at communications, when dealing with a diverse workforce or client base, is to reinforce of the basics of interpersonal communications: listening, questioning, encouraging/reinforcing, giving information, responding and comforting/reassuring. By developing these skills, we can all become better communicators!

What Is The Best Way To Start A Business?

            This is an excellent question and like a lot of questions on this blog, may require multiple answers!  People start businesses many different ways and they are starting them at a record pace.  I read somewhere that in July of this year (2010) over 540,000 businesses started in the US!  That number is staggering, and that is why I think this question was asked. 

            To begin, it is my belief that there is no actual “best” way of starting a business.  People have started a business in a day with no prior thought or planning.  Some of these businesses go on to be great successes and some of these businesses fail miserably.  Other people start businesses with years of planning and preparation.  Some of these businesses go on to great success, and some of these businesses fail miserably.  Any way you can think of to start a business has had its share of successes and failures. 

            So if there is no “best” way, is there a smart way to start a business?  This question I can answer.  If you are thinking of becoming an entrepreneur or BizOwner (you might want to read my definition of a BizOwner) then I can in fact give you a step by step approach to starting a business the smart way!  Here are the steps to starting a business the smart way:

1)      Make sure you have what it takes (traits, skills, and knowledge) to start and grow a business (become a BizOwner), and make a formal decision that you really do have what it takes to be a BizOwner.

2)      Verify the business model of your business is sound and that you can sell products and services at the prices you want to charge. 

3)      Create a short Business Plan for the business you want to start.  I would recommend the 20 Question Business Plan model.  It works well in my classes and a handful of bankers and investors that have seen it like it a lot.

4)      Make a formal decision on the business you want to start and make a formal commitment to the growth of the business.

5)      Take care of the details.  This included starting your business legally, develop a financial tracking system, taking care of all tax issues, and making sure all laws of the federal and state governments are handled.

6)      Develop the CAP habit and make sure you work your CAP each week.  CAP stands for Customer Acquisition Plan.  You might want to read my other blog post titled “Every Small Business needs a CAP!”

7)      Build you business one SOLID customer at a time.  There is a difference between customers and solid customers.  A SOLID customer is a customer that refers you to others, is a walking testimonial for your business, and will not leave you at the first sign of competition or a lower price.  The growth and success of your business depends on the number of SOLID customers your business has!

That’s it, a seven step approach to starting a business the smart way.  It appears I have not covered these seven steps enough, so I would encourage you to check this blog frequently or even sign up for the RSS feed.  Thanks for reading!

If you would like to comment on the blog or contact me, the best way is by e-mail at

Bob.voss@dctc.edu

How Do I Raise Money to Start a New Business?

            This is really a big question and is going to require a whole lot of posts.  There are two main ways, and a lot of smaller ways, of raising money for a new business.  The two main ways are debt financing and equity financing.  Debt financing means you borrow the money to start your business and equity financing means you sell ownership in your business to raise the necessary capital.

When most people think of borrowing money they think in terms of banks.  Many start ups go to banks thinking they would just borrow the money to get their business off the ground.  What they soon find out is that banks are not in the risk business, and since starting a business is risky, not many start ups get bank loans.  In all cases, you need a credit score of 680 to even get in the door.  Then you will have to sign personal guarantees and also put up collateral or assets to cover the loan.  Having the loan guaranteed by the SBA may help, but you will be paying fees and a higher interest rate to get it.  Check out how much documentation is required and how long it will take to get it all together, you might be surprised at all you will have to show to get a loan. 

Equity financing is used a lot by start-ups because you don’t have to go through all the paperwork, you don’t need a high credit score, and with many investors (angels) you get someone who can also help and give advice to your business. The problem with equity financing is that you give up ownership by selling off stock (if you are a Corporation or an Inc.) or membership units (if you are an LLC).  There are good and bad investors.  Just make sure you get good ones that really can help your business grow.  A bad investor can be like a cancer in your business.  Stay as far away from them as possible!  Also, you need to be aware that giving up too much ownership may mean you are not in control anymore.  There are numerous cases of a founder giving up too much ownership (especially at the early stages of the business), losing control, and getting booted out of their own business!

Which way should you choose to raise money?  Most people, if they can borrow the money, prefer to go the debt route.  Unfortunately most small business can’t borrow the money so they are forced into equity financing.  This is exactly what happened to me.  Over a seven year period I did over 200 investor presentations.  It was a lot of work, but since I liked to sell and was good at it, I was successful at raising money that way.  At the beginning it was really tough.  I did 24 investor presentations before I got my first check.  These 24 presentations and 24 “No’s” gave me the best possible education in how to raise money.  Like all things, the more you do something the easier it gets.

We really do have a lot to cover in this area!  More to follow!  If you have any questions or comments, be sure to e-mail me at bob.voss@dctc.edu.

Finding an Ideal Job

Questions to Ask if You Are Looking for A Better Job

Often I am asked by my students as they are approaching graduation, “where should I begin looking for a job?” My response tends to be, “what would be your ideal job?”

Since marketing and sales - the program I teach in at DCTC - tends to offer a wide variety of positions to business professionals, it is the better question to ask.

To help soon-to-be grads think about their ideal jobs, I give them the following questions to help prepare for the job search:

My Ideal Job Includes Worksheet 

Instructions:  This worksheet will not tell you where to find your ideal job, but it will help you define points to keep in mind during your job search.  When making entries, include information that supports the jobs you are most likely to seek within your major area of study.

Occupation-Specific Information

Major area of study:

  • Special experience or training that related to or supports my major:
  • Job titles related to this major that interest me or are likely objectives:

Skills:

  • My top three adaptive skills that support the jobs in my major area of study:
  • My top three transferable skills that support the jobs in my major area of study:
  • My top five job-related skills that I particularly enjoy using or am particularly good at:

Personal Values:

  • What values do you want to incorporate into your work?

Earnings:

  • What is the minimum salary you would accept?
  • What is a reasonable salary range to expect for the types of jobs for which you are qualified?
  • From $____________________(low) to $_____________________(high).

Level of Responsibility:

  • The higher you go in an organization, the more responsibility you have.  Do you want to supervise others?  Can you manage a department?  More?
  • What level of responsibility do you plan to seek?
  • What level of responsibility are you willing to accept or begin with?

Geographic Location:

  • Are you willing to relocate? (Yes or No) ________If so, what specific regions of the country  (or cities) have you targeted?
  • If you are not willing to relocate, are you willing to accept the limitations this may have on finding your  job? (Yes or No) ______What limitations do you expect as a result?

Special Knowledge and Interests:

  • What special knowledge or skills have you gained from previous training, education, jobs, hobbies, or other life experiences?  (Include only those skills that are particularly well developed).
  • What are your special interests?  (Include only interests that are particularly important to you).

Work Environment/Organization Size and Type:

  • What type of work environment would you prefer?  (Include criteria that are particularly important to you).
  • In what size organization do you prefer to work?
  • Do you prefer to work for the government, a not-for-profit or similar type of organization, or a business?  Would you rather be self-employed?

Types of People:

  • What types of people would you prefer to work with?
  • What type of person would you like your boss to be?

Your Education. . . Continued

If you’re reading this article, you’re probably completely aware of the need for professional development on an ongoing basis. You “get” how important it is to be a lifelong learner in order to stay competitive in today’s business world. This was the topic of a great article that also features some of our students. Click here for a great read http://digital.mn-meetings.com/mn-meetings/2011Spring#pg49

New Social Media Platform – Is Privacy Going Away?

People choose to share pictures from smartphone with others within 150 foot radius

New public photo-sharing app for Android and iPhone called Color allows anyone with the same app to view your photos as long as the person is within 150 feet of you.

The Color app allows users to take pictures or videos with their smartphones. Then these visuals are uploaded to the Color app network. Finally, your pictures and videos are immediately available for viewing from anyone within 150 feet. In other words, they are accessible to the public.  

Say you are at an event and you take a picture of someone – friend or stranger alike – suddenly that picture can be made available to anyone else at the event whether the person in the picture wants you to share it or not.

Also, after using the app near another person with the same Color app, that person may start appearing on your contacts list. Color can be your access point to meet someone new or perhaps even allow fellow co-workers or your boss to see what you did this weekend – good or bad.

The Color app uses a GPS to determine a user’s location. Plus it uses the camera to identify similar lighting, and the microphone to pick up surrounding noise to more perfectly determine a user’s location.

What is called into question with the Color app is privacy. As videos, pictures, and even the ability to share the immediate location of a person taking a new picture become available to those closely surrounding us, are we allowing people to track and record our every move?

Why would a marketer comment on this app? Well, clever marketers know that social media platforms are great ways to sell our products and services.

I was brainstorming how a marketer would use this app. Perhaps to sell product lines in a retail store? A marketer can create buzz by taking pictures of merchandise or of a person using a new product? Then, suddenly, people around or directly outside the store can be drawn into that product’s location for immediately viewing!

A restaurant owner may find she could draw more people in by taking a picture using her Color app which shows a celebration with great food currently being served. Those outside the restaurant may be drawn into the establishment immediately.

I guess we all need to determine how valuable or useful apps like these are as well as how much privacy we wish to retain in our society before downloading the app to our smartphones. It is left up to you.

For more information or to download Color, simply go to Color.com.

Every Small Business Needs a CAP!

By Bob Voss, Business Entrepreneur Instructor

Dakota County Technical College

Let me explain what a CAP is. CAP stands for Customer Acquisition Plan. As a small business owner and teacher of entrepreneurship, I firmly believe that every small business needs a plan to consistently and habitually go after new customers. Unfortunately, most small business owners only think about doing something to get new business when times get tough and sales are down.  They then spring into action trying to lure new customers. This is the wrong time to try and get more business.

No matter how good you are or how much you offer, new business takes time to grow. The planting analogy is a perfect way to understand how a CAP works. Think of going after a new customer as planting a seed. The more seeds you plant, the better the harvest you can expect. But seeds do not grow overnight—they take time. In most cases, you have to go back to the place you planted the seed to cultivate and water to make it grow.

Very few people buy the first time they see something. People take time to make a buying decision, and most people need to be exposed to something three to five times before they even start to think about a purchase. 

Sixteen years ago, a very good friend of mine decided to start a financial consulting business. Before he launched his new business, he met with a wise mentor to ask for advice. The wise mentor told him this: “Spend at least four hours a week doing nothing but finding new customers. This is easy to do at the beginning of a business, but even if you have more work than you can handle, do not let anything interrupt this four-hour period. Pick a time that you can commit to every week, and for that period do nothing but go after new business. If you do this, I guarantee your business will succeed!”

Well, my friend followed the advice of his wise mentor. Now, 16 years later, he still spends from 8:30 a.m. to 12:30 p.m. every Friday morning going after new business. We all know how fickle the financial industry is, but through all the ups and downs, my friend’s business not only survived, but also thrived. If you ask my friend the reason for his success, he will tell you the story of his wise mentor. He will also tell you that making a habit of spending four hours a week finding new customers was the best advice he ever received. 

A marketing plan is an essential part of all business plans. Most people think of a marketing plan as spending money to get your name “out there” to potential customers. They think that marketing and advertising are the same thing—and the only way to market and advertise is to spend money.

When I look at all the businesses students in my classes have started, I find that there is lot more prospecting taking place than marketing. Most small businesses have very limited budgets to spend on marketing. They do, however, have time and energy to spend on prospecting.

I am so sold on the CAP process that just last year I changed the marketing plan section of my college Business Plan class to a CAP section, which includes both marketing and prospecting.

Let me give you two examples of a CAP. One of my students, a young plumber working out of his house, developed a CAP where he spends a minimum of four hours per week knocking on doors of houses within a five-mile radius of his home. If no one is home, he leaves a simple yet valuable checklist for the homeowner. If someone is home, he introduces himself and asks if the person has any plumbing concerns. Over the course of a year, he will have been to every home in the five-square-mile area where he lives.

The second person is a photographer who doubles as a single mom with four kids. Her CAP involves putting all the kids in the van and, for four to six hours a week, she drops off a simple brochure and business card (printed herself) in the newspaper tubes attached to area mailboxes. Her kids love it because they get to be part of the process of helping mom. Every week, she gets two to four calls—and from those calls books one or two sittings.

CAPS don’t have to be complicated; they just have to become a habit. If you want your small business to succeed, start the CAP habit immediately and let nothing get in the way of going after new customers.

If you would like to learn more about CAPs, or get the inside scoop on business entrepreneurship, please feel free to e-mail me at bob.voss@dctc.edu—or visit www.dctc.edu

What Happened to Loyalty?

Inspiring allegiance and dedication in your workforce

 by Scott Gunderson, Business & Management Department Chair

Dakota County Technical College

 As you know, Brett Favre finally decided to retire from the Minnesota Vikings—much to the chagrin of Green Bay Packer fans, me included. Some of us  remember Brett signing with the team in the 90s and how he said—and I quote, “I will retire as a Green Bay Packer.”

 I recall saying to myself, “Now that’s loyalty!”  We are in an age of free agents and transitional workforces, but you can still ask yourself why Brett apparently stabbed Packer fans in the back? It’s simple: He was loyal to himself and his own goals—not because of the money, but because he had a passion for football.

 Looking closer, we can wonder if Brett was the one who turned his back on Packer fans, or was Packer leadership simply peering into the future without seeing No. 4 anywhere on the horizon?

 Here’s my point. Many employers inadvertently cultivate disloyalty and disengagement in their employees, fueling bad attitudes and poor performance. This negative approach often drives good employees—the star performers and rainmakers—to leave the company because they don’t see a management structure that understands that contributing to employee success naturally promotes organizational success. In other words, you have to give a little to get a little.

 In my previous life as an operations manager, I had a good many supervisors. I remember one day when one of those supervisors refused to give an employee the day off because no one else was available to fill the shift. The employee came to me and complained about what he saw as a raw deal.

 After researching the situation, I found that the employee worked more voluntary overtime than anyone else in the company. This employee was consistently stepping up for the company and coming through in the clutch.  So how did we reward him? We denied him the day off.

 If I stood by and did nothing, I felt that the employee might just call in “sick,” leaving us in a worse predicament than if we had granted the day off in the first place. I also thought that the employee would most likely discontinue volunteering for overtime in the future. 

I’m guessing that you have encountered similar situations. The good news in this story is that the employee got the day off after all, and our supervisory staff learned a valuable lesson—you have to give a little to get a little.

 Too often, especially in a harsh economy, we can take the easy route and only look out for ourselves. This downturn will eventually turn around, but if we undervalue our employees and fail to show them the loyalty they deserve, we will find that it’s very difficult to turn them around. 

 One learning point the downturn has brought to light is that we have become a spoiled society. We constantly think, ME! ME! ME!—quite often at the expense of other people. The anniversary of the September 11 terrorist attacks just passed, causing me to remember how we came together as a country. For some companies, the current hard times are taking a terrible toll. Are we coming together as we did in the aftermath of 9/11, or are we just looking out for ourselves?

 I’m not advocating that a company go bankrupt because its leadership won’t make the tough decisions needed to ensure the organization’s survival. I am saying that we have more ways to weather this storm than just coming down hard on our employees, which could ultimately capsize a company just as effectively as a poor economy. 

 How can you tell if you have a culture of loyalty in your business? Watch what happens when your ship, i.e., your company, starts taking on water. Are your employees bailing out on the next available lifeboat, or are they busy bailing water to keep your ship afloat?

 At DCTC, we are seeing workers with 20 and 30 years of experience who are jobless even though their companies are still in existence. I am a proponent of the idea that seniority does not guarantee a job, results do. Having said that, what motivates a company to let good, experienced employees go? Some would say that those workers cost the most to keep on, but I contend that such an approach is shortsighted.

 Folks who stay with an organization for 20 and 30 years are the Baby Boomers who believe strongly in loyalty. They gave their best effort as a rule and took on extra shifts to help when needed. If we let them go and the economy rebounds as it surely will, how will we replace that lost knowledge, experience and loyalty? 

 What follow are some recommendations that employers should consider:

  1. Trust your employees first—and they will trust you. If you think providing tuition reimbursement will prompt an employee to leave for another job, what does that say about your approach to loyalty?
  2. Involve your employees in decisions that may affect staffing decisions. I have talked with many dislocated people who said they would have worked for short periods without pay to save their jobs.
  3. Meet your employees halfway. Remember that even though they work for you, your employees want to know their company is working to protect them. Where would any business be without loyal employees? More to the point, where do businesses end up that are not loyal to their employees?
  4. When an employee makes an honest mistake, even a costly mistake, ask yourself if you contributed to the mistake by not providing proper training or support.
  5.  Challenge employees and keep them engaged. Let them know the truth about the challenges the company is going through.  You may be surprised that they may have the ideas you are looking for.

 I have always trusted first and take people at their word. It’s up to them to cause me to think otherwise. Of course, I have been burned on more than one occasion, and maybe Brett Favre is a good example. But I’m thinking that I might just have the last laugh, because selfishness has no part in my life, any company or on the field—or, in my case now, in the classroom.

 Maybe I’m old school, or cut from a different mold. I do know that I’m an idealist. I believe that selfless behavior breeds selfless behavior. Selfish behavior breeds selfish behavior.

 If you would like to challenge my views, or would like answers to questions about the DCTC Business, Management for Technical Professionals and Supervisory Management or Individualized Studies programs, please contact me at scott.gunderson@dctc.edu.  

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