Monday, 29 March 2010

A Question of Leadership?

In a week or so Gordon Brown will take a short drive up the Mall and ask the Queen to dissolve Parliament and call a General Election. From that moment on we will be hearing an awful lot about leadership.
In business we are often being told about how important leadership is, the problem being that the debate on how to lead often becomes blurred with discussions about the style of famous leaders or even about heroism which, although a related topic, is a quality that is not often required when attending a management meeting on a wet Monday morning.
Like most things to do with management, leadership has been so thoroughly complicated by theorists that many people turn off when it is discussed, prefering to keep their head down and hope they are doing it right.
This is a mistake as, even if you can't aspire to the leadership levels of Churchill, Montgomery or even Richard Branson you will be surprised how effective a leader you can be if you follow 3 simple rules.

1. Be Visible
You can't lead if you aren't seen around the business so for goodness sake, forget about the e-mail inbox and get your walking shoes on. If your not used to it this will be uncomfortable at first both for you and your staff but discipline yourself to do it at least once a week and you'll soon get the hang of it. It's helpful if you have a question ready to get a conversation going try 'What are you working on' for instance.

2. Be Polite
This might seem an odd one, you are running a business not a charm school after all, but I am a great believer that managers that scream and shout are more diminished in the eyes of their staff after each outburst. Just like a chain being as strong as its weakest link a manager is as good as the way he or she treats the most junior employee. Politeness, particularly when the pressure is on, is not a sign of being soft, still less of weakness, it is a sign that you are in control both of the situation as well as yourself.

3. Make That Decision
Sadly too many managers think that if they put off making a choice between 2 conflicting proposals, or delay getting back to someone with a negative answer about that pay rise they asked for, they will avoid a row and somehow keep the peace. Well, they might but they will also lose the respect of the people they are trying not to offend, which is much worse. As long as you observe rule No 2 when you give your reply you will at least be regarded as someone who doesn't shy away from tough decisions.

There is obviously much more to leadership than these 3 basic principles but you will be surprised at the results you can achieve by giving them a try. In doing so you will be setting an example to others and creating an atmosphere in your business where your team will feel valued and want to do their best for you, that is the sign of true leadership.

Wednesday, 10 February 2010

How to manage a pay freeze and maintain morale

Having just come to the end, we hope, of the big freeze on the weather front a recent survey has suggested that HR professionals may have to consider a freeze of a very different but, if anything, less pleasant kind concerning pay. A recent study published by the Labour Research Department (LRD) states that a larger proportion of its database of 2,000 companies than ever before were either implementing a wage freeze or seriously considering one.

Whilst a firm control of the labour bill should always be high on the HR agenda a wage freeze is something that is always viewed with trepidation and with good reason even in the spirit of realism encouraged by these economic times. In my experience however and surprising though it may seem, if you plan and carry out a wage freeze whilst paying attention to some simple rules you stand a good chance of not only making a major contribution to controlling costs but you also may even earn the thanks of the wider workforce for the way you carry it out. A feeling that ‘everyone is in this thing together’ may even restore the morale of your hard pressed employees. Here is my 3 point plan for successfully handling this difficult subject:

1. Communication

Never is clear and straightforward communication with staff more important than when the issue concerns pay and benefits. Everyone should be well aware of the financial situation in your Company on a monthly or (at least) quarterly basis. If things aren’t going well then your staff should be told, otherwise any news of a pay freeze will be met with a mixture of incomprehension and hostility. Staff that are regularly briefed about market conditions and future prospects still won’t like having their pay pegged back but will at least give you credit for keeping them in the loop. They may even have some alternative suggestions of their own to add to the debate (see below).

2. Look at the Whole

However much staff may understand the need for a pay freeze they will resent any indication that others in the business are somehow getting around it by landing benefits or perks not available to them. That is why you must ensure that the credibility of your actions is not undermined by a Director taking delivery of a new Company car or news of the sales department treating favoured clients to corporate hospitality at Twickenham or Wembley. Even the redecoration of the Board room at a time like this can set off a chorus of ‘them ‘n’ us’ grumbles so you must have your antennae more highly tuned than usual to avoid these sort of gaffes. Everyone must be persuaded that the overall health of the Company depends on putting aside personal wish lists however valid they may seem to the individual. More than ever it will be up to you to ensure that the business thinks and acts as one unit.

3. Find Opportunities

Good HR people can find positives in the most unpromising situations and this is no exception. If you have an ideas scheme then, during this period, make sure it is focused on targeting rewards directly at cost saving ideas. Why not use your staff forum to consider areas of cost savings throughout the business or even set up a cross departmental group to specifically consider what regular day to day savings in energy usage, materials and consumables could be made. Remember, staff at the chalk face often see opportunities for improvements and savings far more clearly than you. You could even consider adopting the ISO 14001: 2004 Environmental Management System as a Company objective as it addresses many energy saving issues that will save money and promote the ‘Green’ agenda.


If you are able to handle your pay freeze with these factors in mind you will be in a good position to turn what would otherwise be a beleaguered and downbeat atmosphere into something more positive and forward looking. Good luck.

Monday, 25 January 2010

Morale and how to achieve it

At the weekend I allowed myself an excursion to watch my team, Notts County, of league 2 (the old 4th division to you and me) play premiership Wigan in the 4th round of the FA Cup. Anyone with even a passing interest in football would be aware of the trials and tribulations surrounding the oldest league club in the world: a multi million £ takeover which proved to be a mirage, talk of another sale, mounting debts and doubts over whether the wage bill could be met, rumour and counter rumour swirling around the club. You would think that all this would affect the work performance of those key members of staff, the players wouldn't you? Well it certainly didn't show on Saturday as Notts raced into a 2-0 lead and were only just denied a historic win by the fluke of a last minute equaliser (OK, I'm biased).
The point here though is that, despite all the uncertainty about their future as well as whether they would actually be paid this month the team still delivered. If you are in the position of having to steer your business though uncertain times and tight budgets you could maybe take inspiration on how to do it from Notts County's caretaker manager Dave Kevan. Throughout his time in charge he has asked the team to concentrate on their own performance and contribution, not on what is going on elsewhere. He has turned the rather beleaguered atmosphere at the club into a positive by using it to bond the team in a 'we're all in it together' kind of way. Above all, he has led by example, refusing to be drawn on speculation about the clubs future and by being cheerful and optimistic, setting the standard and challenging others to meet it. In short he has proved himself to be a real leader, the kind every business could do with in difficult times.

Monday, 27 July 2009

Lifes A Beach

'Lifes a beach?' Well holidays can be, especially if you get into a state not just about where you go but whether to go at all.
Naturally, if you employ no staff then a holiday break can seem unnecessary and even dangerous but with all the mobile media at our disposal today even you should be prepared to give yourself a short break safe in the knowledge that you are extremely unlikely to miss that all important sales call.
If you do employ staff in your own small business then the holidays you take, or whether you take them, says a lot about your management style and what you think of the people you employ.
If you take no holiday at all or only dare venture a few miles away on a 'long weekend' in order that you can come back in at short notice to deal with some 'emergency' you are simply not running your business effectively. It also smacks of crisis management which, trust me, attracts nothing but contempt from employees however good it may make you feel. What on earth are the point of the people you employ if they can't be left to manage things during your absence? If your answer is to take no holiday at all then you are adding extra pressure on yourself and possibly hastening the day when you have to take time off whether you like it or not; what will happen to your business then?
Think too what impact this has on your employees who will feel that they are not trusted to run things while you are away or to use the skills and judgement they undoubtedly have. Horror of horrors they may even have some ideas on how to manage the day to day that haven't occurred to you!
Naturally, your business needs the leadership and strategic direction that you provide but even for that to be effective you will need talented committed people around you. The first thing to admit to yourself is that you are not indispensable, then ask yourself who in your team shows genuine promise and ability, start to think about how you may be able to bring this out more by putting together a formal training plan for them using your knowledge and industry experience, there may even be some external supervisory or management training you could provide. The effect on the staff you deal with in this way is often out of all proportion to the time or money spent on it. If you are able to do this then not only will you eventually be able to to take a proper holiday you will genuinely enjoy it and be a far more effective manager when you get back.

Wednesday, 7 January 2009

New Year Resolution

When de-icing the car prior to that frosty trip to work you know that the festive season is well and truly over!
Having braved it through the January gloom your early morning is not improved by taking calls from staff who can't quite match your determination due to suffering from 'the flu' or something similar.
If you manage to resist the temptation to throw the mobile down the toilet please don't use it to ring the temp agency. Instead do something really radical. Nothing. Yes, I mean it. If you do you may well be rewarded by witnessing something truly amazing; the sight of people coping! This will lead you to asking some important questions such as:
  • How long is it since you gave any thought to how you do what you do?
  • Does your structure chart (if you have one) look like a complicated wiring diagram?
  • Can everyone on your payroll answer with confidence the question 'who do you work for?'
If the answers make you slightly uncomfortable then you need a thorough review of your people and processes so that you match who you have to what you do and not the other way around. If you are prepared to be honest with yourself and not be afraid of the outcome this review can take as little as a week or two and deliver significant savings to the bottom line sooner than you think.
I will deal with the best way to implement a cost saving restructure next time as well as discussing other areas where savings can be had that may be staring you in the face!

Thursday, 11 December 2008

Comfort and Joy?

With the festive season well and truly under way it is very tempting to convince yourself that the last set of monthly figures were not as bad as all that and put off wondering what you are going to do about it until the New Year. Tempting but wrong.
When you are trying to turn your business around time is precious and, although it may be a little unrealistic to expect you to take action in the next couple of weeks, it is an ideal time to plan. Start by asking yourself some basic questions: are you getting the best possible return from your people, your assetts and your capital? If not, why not? If things aren't going so well, is it truely temporary or are you simply ignoring the real things that are holding your business back?
If you are lucky enough to have a business partner (or partners) that you trust, take some time out for a real heart to heart about where you think the business stands and what needs to be done.
Whatever you conclude, if you are asking these sorts of questions I doubt you will decide that you should leave things as they are so draw up an action plan for implementation when you return after the holidays.
In my next post I will discuss what should be in the plan and how to put it into action.