I can’t believe it is now almost 4-years since I launched my business and it has been one hell of a ride! There have been days where we were riding on a high and exceeding our sales and customer expectations, and there have been days where we were really worried about whether we would be able to meet our payment obligations and just couldn’t get a sale over the line to save our lives. Business, if you get into it for the right reasons, can be highly rewarding. Even on days where you are not meeting your sales targets. If you get into business just to make money though, you will be in for a huge shock. To avoid this shock or do your best to minimize it think about studying a Business diploma – course info available here or using the number of resources provided by the Australian government. No success occurs overnight. Success takes time, hard work, perseverance, and determination. It takes the right team to bring out the best of the business, to bring the business to great heights, and to help the business rise up and overcome its hurdles. There were times I really wished I knew some of the things I know now, and I want to share this with you. Hopefully, it can help you cut out a lot of heartbreaking moments and sleepless nights, and help you achieve successes in your business much quicker than I did!
What is a SWOT analysis in Business?A SWOT analysis is a useful way to understand and evaluate one’s strengths, weaknesses, opportunities and threats when faced with a decision. What makes a SWOT particularly powerful is that with a little thought, it can help you uncover opportunities that you are well-placed to take advantage of. By understanding the strengths and weaknesses of yourself, or your business, you can then manage and eliminate any threats that may present. What do find out more information on how to complete SWOT analysis for your online business view details of our diploma of Business courses by clicking here for more information or have a look at the diploma of management course information here. If you are not ready to study at the Diploma level you court start by enrolling in a certificate IV level course such as the Certificate IV in Business administration. This qualification will give you the foundation you need to have a better understanding of business administration tasks.
How do I do a SWOT analysis for a small business?First thought of by Albert Humphrey in the 60s, the SWOT analysis is a very powerful tool to help you understand your strengths and weaknesses, or your business’ strengths and weaknesses. It is important to ask the hard questions, no matter how uncomfortable or confronting it might be. The characteristics of a successful business remain the same regardless if you remain the same regardless if you are trying to change the world with driverless technology or you have a small business at the local business district. Here are some examples of questions you can ask to help you complete a SWOT analysis. Strengths
- What advantages does your business have?
- What do you do better than anyone else?
- What unique resources can you draw upon that others cannot?
- What do people see as your strengths?
- What is your organisation’s unique selling proposition?
- What are the benefits of this strategy or this plan?
- Why would a client choose you over your competitors?
- What could you improve on?
- What should you avoid?
- What are people in your market or your customers likely see as your weakness(es)?
- What factors cause you to lose sales?
- What factors cause you to lose customers?
- What opportunities can you spot?
- What areas of the market is unserviced or under-serviced?
- How can you help fix a problem the market/industry / a client has?
- What changes are there in technology?
- What local events are there that you might be able to present at?
- What obstacles do you face?
- What are your competitors doing?
- Are there any quality standards or specifications for your job, products or services?
- Are there any changes occurring within your industry – legislative or technological advancements or consumer sentiment?
- Do you have any bad debt or cash-flow problems?
- Could any of your weaknesses seriously threaten you or your business?
A business example of a SWOT analysisStrengths
- Qualified workers
- Constantly meet regulatory requirements without any haste
- Able to respond very quickly
- Can change direction very quickly
- Low overheads
- Avoid negative conversations in the workplace
- Has little to no market presence
- No funds for marketing
- Vulnerable to vital staff being sick or leaving the organisation
- understanding of Budgets and industry
- More technically capable and cheaper software out on the market
- Local government wants to encourage small businesses
- Competitors slow to adopt new technologies
- Industry expanding with customers now more educated on their options
- Workforce requirements
- Favouritism for staff with a particular manager
- A small change in the focus of a large competitor might wipe out any market position the business has
- The downturn in the market
- Burnout from over working
Leaders Drive PurposeIn every organisation, it usually falls to the leader to ensure that employees know what makes the organisation run. Only a leader who knows him or herself can do this effectively. As a leader, it is important to consider what your own purpose is. One question you can ask yourself is – what gets you up in the morning? What is driving you and your purpose? Is it your family? Is it your career? Is it your brand? This gives you the opportunity to reflect and properly understand what your purpose is in order to be effective at work. For many, it is the opportunity to do what they have always wanted to do. Be it help the elderly in the community, help patients in the emergency department, or even help people find their own purpose.
How do I determine purpose?The two questions you can ask is:
- Why does my team need to know about purpose?
- How can I make purpose more relevant to my team?
How to instill purpose at work
- Let people know they matter
- Reach out to employees as individuals
Is telecommuting dead?From IBM Australia to Yahoo!, are we seeing a growing trend in organizations restricting their telecommuting policies? Last week, IT News reported that IBM Australia has sent out a memo to all of its employees about changes to its telecommuting policy. Their HR team will be reviewing each employee’s case and budget to make a decision as to whether it is still appropriate for them to be working remotely from home. To find out information about business statitiosn in Australia click here. Both IBM Australia and Yahoo! have cited that they’re moving towards regrouping their teams in-house so that they can better connect with each other and synergise their operations. I’m sure many of their employees are huffing and puffing, I mean who wants to have to commute back and forth to and from work when you’ve had the privilege of working from home, with no distractions, no hours spent on public transport or in traffic. Some industry leaders have even predicted that it won't be long before many other organisations restrict their employees from the same arrangements. Especially in the wake of weak trading conditions resulting in falling profits and revenues. From an organisation’s point of view, the management team has a duty to make hard decisions – even if it is unpopular with their employees, to ensure the viability of the company. To ensure industry can be successful it needs to ensure staff members are qualified and a popular study option is the accredited business administration course www.edna.edu.au/online-courses/certificate-iv-in-business-administration can give you the edge you are looking for in the business world.
Benefits of telecommuting for a business
- Save time commuting to and from work each day – traffic and public transport delays can really take a toll on a person.
- Fewer sick days – employees who telecommute are more likely to have a healthier lifestyle, with many saying the time they save commuting to and from work, they spend outdoors instead.
- No geographical restrictions when hiring.
Disadvantages of working remotely for Businesses
- Can be isolating – employees not knowing each other or working in a team environment can really be mentally challenging in trying to bring a team working cohesively together.
- Poor communication channels – many have reported that communication is their greatest challenge. For Managers, many who are there to manage their team at times do not know what their team is up to as they are not physically there.
- Security concerns – many employees deal with a lot of sensitive data and are privy to secrets of an organisation’s operations. Telecommuting opens an organisation up to possible leaks and accidental breaches.
Future of Business telecommutingOver the next few years, we can expect to find more and more organisations pulling back their telecommuting arrangements with their employees, especially in the wake of tougher market conditions. Companies will be trying anything they can to reinvigorate their workforce and to reinspire them to help the companies reach their goals. This Article is a good read about how woman are treated in business. More and more companies are also on the hunt for skilled and knowledgeable employees. Those that have strong analytic skills are able to steer the company towards the right direction and help pull the company out of a storm. That is why it is important that you learn as much as you can, put yourself in situations that will push you to practice what you learn, and get qualified! Find out more here about the business diploma available or look at some of the other online diplomas and certificates
Lead With PurposeWhat is purpose? Purpose shapes vision. Vision is what shines in the distance and serves as a guiding light. Vision is the process of becoming. Becoming what you want to be when you grow up, or in the case of an organisation what you want to be able to do. For any organisation to be able to achieve their vision, they must first set their values. Values are what hold people together. They embody the beliefs by which people in the organization choose to abide. Take a hospital. Its values define the respect that employees must manifest toward patients as well as toward each other. Words like dignity, ethics, and respect are prevalent. Values, when they are implemented, become measures by which people hold each other accountable. The end of this chapter contains a guide to defining purpose. Taken together, vision, mission, and values underscore the culture, the glue of an organization. While the concept of culture is broad and deep, when it comes to purpose, we can be very direct and to the point. Quite simply, culture is what the employees perceive as reality inside their organizations. It can be open, tolerant, and flexible, or it can be closed, intolerant, and rigid. Culture does not depend on purpose, but it is greatly influenced by it. Open cultures nurture purpose as if it were mutable and alive; closed cultures regard it as defined and inorganic. (Baldoni 2011)
How does a manager make purpose relevant?Simply put, you have to link it to the work your employees are doing! For some organizations, such as the bakery just mentioned, this is easy. Make the dough, bake the goods, sell to customers, and watch them come back for more. Okay, how do you make purpose relevant if you are the distribution manager for a pipe supply company? You work with spreadsheets and you field phone calls from internal and external customers. How do you discuss purpose? You explain to your employees that logistics are the linchpin of the pipe supply operation. If distribution does not gather and warehouse pipe products from the factory or other sources, you have nothing to sell. If you cannot identify and ship products in a timely fashion, customers cannot buy. How you iterate this is critical to purpose. Expression of purpose may begin with words— chiefly, explanations of what the organization does and why it does it. But words go only so far. Purpose, if it is to be sustainable, must be linked to organizational culture and values. That is vital. Here are some ways to reinforce this connection. “Purpose comes down to having clear-cut, definite goals,” says Pat Williams, bestselling leadership author. “They are powerful motivating forces. Those goals have to be out in front of the organization. They’ve got to be written down [as well as] reminded and reviewed.” Regarding the Orlando Magic, the NBA team where Williams serves as a senior vice-president, “We talk about two things all the time: winning a championship and keeping every seat full. No one in the organization can miss that.” Putting people first, says Michelle Rhee, onetime chancellor of the Washington, D.C., school district, “is about creating a culture that constantly recognizes people for the work they’re doing.” That requires the involvement of a leader who “ensures that people’s voices are heard.” Purpose in education is a straightforward proposition for Rhee. It stems from doing “what’s right and good for kids.” It was a mantra she took personally and one that she preached throughout the community. That kind of clarity is something that every leader in any field should strive to drive throughout their organization. Reducing purpose to a simple statement is not easy, but it can be a valuable tool in clarifying intention for employees. While working in another job prior to running the D.C. school district, Rhee learned that creating the right culture depends on doing the little things that matter to people— for example, being accessible to the CEO. It is important, says Rhee, that people have a voice with the leader at the top. “I think oftentimes it’s the smaller things that feel more personalized that make people feel valued and recognized.” When serving as chancellor of the school district, Rhee made a habit of reaching out regularly to all levels of the organization. She would personally call a principal or a teacher and thank the individual for the good work he or she was doing. (Baldoni 2011)
Dangers of having no purposePurpose may seem elusive, and it may be tempting to abandon the concept altogether, but consider the alternative: lack of purpose. This leads to organizational listlessness. People may be doing their individual jobs appropriately, but soon each will come to the realization that individual contributions are good, but not great. What is necessary is to get people to pull together for the common cause. “I don’t think you can hit purpose enough as a senior leader,” says George Reed, a retired Army colonel who consults in the corporate sector. “It is one of those things that can be under communicated by an order of magnitude. You cannot oversell, over pronounce ‘Here’s why we’re here.’” If the purpose is not communicated, Reed believes, it will be lost in the “urgencies of the day” that cause people to forget their original intentions and their passion. “The senior leader who bangs that drum, who serves as the symbolic voice of the organization … reminds their people that what they’re doing is important.” Leadership and management are skills worth learning - click here for more info about this course (Baldoni 2011)
Leaders Have to Walk the TalkMost leaders we know of are not the type to listen to their own advice, I myself am guilty of this. We constantly hear that we need to reinvent the company and we have to find ways to get the entire workforce living and demonstrating the core values through their decisions and actions, but most of us leaders would rather not and would rather just mouth the words to our employees.
Employees expectationsA lot of employees are not motivated to live up to the company’s values because their own leaders don’t lead by example. They constantly hear that they need to do this, they need to do that, they need to be this, they need to be that. But this embodiment is greatly lacking in upper management. Take the banks for example. Upper management is constantly telling their employees to be honest and conduct themselves in utmost integrity to preserve the reputation of the bank. However, the leaders themselves don’t conduct themselves in this manner and they develop targets that does not resonate with conducting oneself with honesty and integrity. They make it a focus that targets are met at all costs. This tells the employees that even though the bank’s values are to conduct themselves with honesty and integrity, they don’t actually have to do so, just as long as targets are met. Some companies even send their management personnel to special leadership and management training - (course information here) to try and improve the company’s bottom line, but not on employee relations.
Open the channels of communicationAs Reliant’s senior leaders opened the channels of communication, people throughout the ranks of the organization began to emulate their behavior. For example, Mike Kuznar, the director of Reliant’s Customer Care group, held a series of Meals with Mike, modeled after the Tuesday Talks. Learn the basics of leadership by going to the website or you can learn the basics of managing staff by going to this website. The meals were open to any member of the customer service team. Mike fielded their tough questions and gave frank answers. For employees who were anxious about losing their jobs, this was an opportunity to learn about the company’s performance at the local level. Mike helped them understand how their everyday work fit into the bigger picture of the company’s challenges. In the end, Reliant survived. Its share price bounced back. The company retained most of its customers. And the informal organization grew stronger than ever. In a turnaround like Reliant’s, leaders are tempted to rely on formal mechanisms and measures. They want to cut costs, keep tight control, deliver messages and directives from the top. Reliant did all these things, but its leaders differ from their counterparts at other companies in that they complemented the necessary formal actions with a values-driven effort that bolstered important and visible behaviors throughout the informal organization and accelerated its recovery. Unfortunately, Reliant’s challenges did not end after the turnaround. As the company geared up for growth, it was struck by a perfect storm of external factors beyond anyone’s control. In 2008, Hurricane Ike destroyed Galveston, one of Reliant’s major markets. Later that year, the global credit crisis struck, wiping out critical financial support that Reliant needed in the wake of Ike. At last, in 2009, Reliant was bought by NRG Energy. None of this, however, negates the turnaround accomplishment that preceded it. Ultimately, the company’s recovery story is one of success. Its ability to survive the tremendous challenges it faced by using values as a driving force in the journey sets it apart from companies that espouse values but do not live them.
How would leaders walk the walkManagers have to be more aware of their actions and speech. Everything they do and say are watched and listened to intently by others around them and will influence the way the team functions. Managers should also try to do the work of their employees so that they understand the challenges their employees face and can develop policies and processes that can help and motivate the employees to embody the company’s values. Managers should also have regular catch ups with their teams and hold an open forum for employees to share their thoughts and opinions. They should not be judgemental and should think of ways to address their concerns and have idea sharing conversations instead of being highly critical of them.
Managers and the types of employees they manageSome leadership researchers have thoroughly studied ancient cultures to determine how leaders lived and ruled in ancient times. Others navigated the turbulent waters of history, in search of lost ideas and ideals of leadership. Still, others have sifted the sands of individual leaders’ lives, seeking biographical shards that might offer clues to this elusive phenomenon. During all these arduous, centuries-long searches for leaders, followers appeared only infrequently. Oddly enough, despite a significant literature on social movements directly concerned with followers’ behavior, linkages to the field of leadership are sparse. Even the social psychological experiments on conformity played a minor role in leadership theory. It took sociologist Max Weber to nudge the exploration of leadership toward a consideration of followers and their perceptions. His discussion of charismatic leadership that “compelled” the awe of followers would lay some early groundwork on which leadership theorists could build. In fact, James MacGregor Burns’s seminal distinction between transactional and transformational leaders did exactly that, highlighting the difference in followers’ behavior with the two kinds of leaders. (Riggio, Chaleff & Blumen 2008)
Larger than life leadersYet, a full decade later, Robert E. Kelley’s Harvard Business Review article constituted a sharp rap on the knuckles of the field of leadership for neglecting followers. With some notable exceptions, most subsequent scholars continued to focus on what James Meindl and colleagues labeled the “romance of leadership,” attributing most group and contextual effects— both good and bad— to larger-than-life leaders. Despite the widespread consensus that one must have followers to warrant the label of leader, the spotlight has remained tightly centered on leaders. This distorting and overly positive bias toward leaders predisposed the field to concentrate on what these impressive figures did to followers, not vice versa. Followers were simply noted in passing, those objects on whom leaders foisted their decisions and actions. (Riggio, Chaleff & Blumen 2008) Even those scholars who escaped the adorational chains of most leadership research emphasized primarily the leaders’—not the followers’—negative qualities and actions. Kelley’s plea notwithstanding, only infrequently did leadership researchers recognize followers as active, thinking, and perceiving individuals. Aside from Burns and later Bass, and an occasional less well-known study, few scholars emphasized the interaction between leaders and followers. Moreover, most failed to explore the inaction of followers in the face of destructive leaders. Even those who considered leadership as a process or relationship treated followers mostly by implication. But the winds of change are gradually rising. Followers, by their actions, are calling attention to themselves— in massive political uprisings in diverse societies, and in incidents of individual whistle-blowing within organizations of all descriptions. Given the increasingly compelling actions of real-life followers vis-à-vis their leaders, perhaps it was inevitable that the leadership spotlight would broaden to include them. Here and there within the field of leadership, scholars and practitioners are starting to acknowledge the significance of followers. Followers with moral courage sometimes in the guise of whistle-blowers, sometimes in less dramatic dress, have entered center stage. A few scholars have begun to raise questions about the impact of bad leaders on their followers and to explore why followers only rarely resist toxic leaders. Gradually, a more follower-centric leadership model - learn more here, inspired by Meindl and his colleagues’ insight, is emerging. (Riggio, Chaleff & Blumen 2008)
Types of employeesThere are five basic types of employees for every leader:
The SheepThe sheep are passive and look to the leader to do the thinking for them and to motivate them. If you are the type of manager whose employees are always just following and relying on you to set the direction, make decisions and set the tone.
The Yes-peopleThe yes-people are always saying yes to everything. They are positive and constantly agree with managers and management. If they are asked to do something, they will always say yes and once finished, they will go back to the manager asking what next?
The IsolatedThe isolated think for themselves but have a lot of negative energy. Every time an idea is presented, the isolated are the ones who have a hundred reasons why it is a bad idea. They see themselves as someone who has the courage to question and confront. They are not willing to come up with a solution but are very pessimistic about the current plan of action. They are smart and are highly critical but refuse to move in a positive direction.
The SensiblesThe sensibles are those that sit on the fence and see which way the wind blows. Once they see which direction it is headed in, they will jump on the popular opinion side. They are never the first on board and they see themselves are preservers of the status quo. They are those who do what they must to survive for a sense of security.
The StarsThe stars have a mind of their own. They do not simply accept a leader’s decision without evaluating its trustworthiness. If they believe it is the right thing to do and the right direction to take, they will give their full support. If they do not agree with the idea or the direction, they question the leader and provide ideas of their own. They themselves are leaders in their own right and they do not blindly follow anyone.
Pride in ManagementFeeling good about day-to-day accomplishments is a strong source of motivation that influences behaviors. Unfortunately, a lot of most people’s daily work can be pretty boring, if not downright tedious and stressful, so “feeling good” about it is not as easy as it sounds. Moreover, those positive feelings come mostly from the informal organization. One of the strongest positive emotional drivers is pride. Kids work harder in school for the teacher who makes them feel proud of getting a good grade or developing a new skill. Multimillionaire athletes stretch themselves to the limit for the pride of winning the championship— but also take pride in the rigorous training it requires. Pride in the journey can be as motivating as pride in the destination. Refinery workers will take extra care in their work for the pride of a clean safety record, or more simply the good feeling of helping a colleague avoid an injury. Yet most motivational programs focus entirely on the formal rewards: money, perks, and promotions. Our research and experience show that how people feel about their work, and the pride they take in their daily or weekly accomplishments can be a powerful motivator of their daily behavior. These topics are covered when studying the Diploma of Leadership and Management - course details here. In research for Why Pride Matters More Than Money, and in work with clients afterwards, Katz developed the following insights about pride as a motivational force. (Katzenbach & Khan 2010)
What matters is how people feelPride is at the heart of what motivates peak performers in most human endeavours. This is evident in art, music, athletics, medicine, or popular entertainment. What motivated George Carlin to toil for many decades in comedy clubs was not the money or the recognition— it was the work itself, including the relentless preparation that characterized his appearances. What motivated Lance Armstrong to push himself to seven Tour de France victories was not the glory but the personal highs of training hard year in and year out. Us humans have a need to feel good about what we do and how we do it. (Katzenbach & Khan 2010) People want to be proud of the work they do and boast about it to others. It is that self-aggrandizing seldom motivates work that is in the long-term interest of the company. Of course, many people take pride in material things like yachts, mansions, and designer fashion. Companies that rely too much on monetary and material rewards for motivation invariably lose their best people to the highest bidders. Pride, unfortunately, can motivate good and bad outcomes. A classic example of this was reported recently in Bob Sutton’s blog “Work Matters.” It was from a piece of research Gary Latham conducted in a large sawmill where employees were stealing about $1 million in equipment every year. Because of the strong union it was virtually impossible to impose discipline on the offenders. However, Latham’s research determined that much of what was being stolen was actually things the workers neither needed nor used; they were doing it for the thrill of it and to brag to their buddies, which they took great pride in doing. (Katzenbach & Khan 2010)
Good pride in managementYou will find a lot of good pride in management and understandably so. Employees want to take pride in their work with positive performance outcomes. They want to feel that the work they are doing is making a difference and they are proud of what they have produced. The leader who can align and connect the good pride people take in their work is more likely to achieve their targets. There are several ways to help employees realise this good pride in them to motivate them.
- Show them how their work impacts the organisation and how they are helping their customers. When people are able to visualise and see who their efforts are helping they are more likely to be more motivated.
- Show them how their efforts can lead to other opportunities such as a pay rise, a recognition award, or even a promotion! No one wants to stay in their role forever, except those who really love their jobs. Employees are always looking for the opportunity to advance their careers and by showing them how their efforts can pay off, they are more likely to be more motivated.