November 20th, 2008 08:29 AM By WCG Staff
The past few weeks and months have created an economic environment that has been less than helpful to small business owners psyche. Granted that economic situation is real and dire, the greatest impact appears to be on the willingness of small business owners to adapt rather than panic.
From our internal observation, there are two different small business owners: those that were naturally prepared for turmoil and those that were not. Our initial assumption that larger companies were in a better position to absorb and adapt to turmoil turns out to be wrong.
After extensive analysis of hard data and behavioral observation, it turns out that those companies that appear in a better position to deal with current situation have one major factor in common ; mainly their respective human resources and talent management .
We looked at dozen companies with an extensive human resource operation and compared them to another dozen small businesses without an effective HR program. The results were astonishing. The latter had substantially more difficulties in coping with the psychological issues of economic down turn as opposed to the first group.
Granted, it is too early to judge the actual outcome in terms of success during a down turn period. However, one may hypothesize as to why the preliminary result point to such different results. It is rather simple to point to the ability of the management via the appropriate talent; but the question of ability may not be the appropriate indicator.
In any case, we will continue our study and observations and report back.
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April 16th, 2008 11:13 AM By WCG Staff
Long. Way to long.
Something very interesting happened to one of our experiments today. Let’s take a step backwards: three years ago we wanted to experiment with effectiveness and efficiency of banners. We decided to use one of our projects that is entirely organic in nature to see if anyone of our general visitors would find a spelling error in our banner.
Now, three years and 4 million unique visitors later, our experiment has come to a conclusion. We received an email from Mr. David Zach ( Futurist) pointing out the spelling error. Apparently during a speaking engagement he named one of our sites and was consequently advised of the error.
It seems strange that some 4 million people would overlook such an error. On the other hand, one could argue that it is virtually certain that a minimal percentage of those visitors found or saw the error but didn’t contact us. In either case, there is something negative and positive to be said about both possibilities.
In the coming days and weeks we will publish the details of this study including methodology, data collection and analysis as well as our final findings in terms of most recognized Eye tracking studies.
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January 30th, 2008 07:46 AM By WCG Staff
It is no secret that virtually all organizations encounter some level of internal power struggle among the executives for power and influence. In most cases, such struggle is most obvious in budgeting issues as well as distribution of resources. Though one may argue that such internal competition may aid better performance of the participant, the real influence and impact of such internal competition may be felt by frontline employees as well as third party vendors.
Essentially there is no valid argument to limit healthy and measured internal competition; however, the impact of negative competition may influence the frontline workers negatively by forcing them to consciously or unconsciously take sides or even worse by aiding to fuel negative competition. Similarly, the third party vendors may find themselves in the middle of divisional or departmental competition which may either force them take sides or cancel their contract and involvement to preserve their own reputation.
In this particular entry we will discuss the evaluation of key personnel. Clearly, the impact on human capital will raise the question as how to regulate such internal conflicts. The most obvious step is the evaluation of talent and competency. Though traditionally, executive team members enjoy a uniform attendance in all vital meetings, it may not be a good idea to have them attend all meetings. The most obvious terminology would be information isolation or otherwise known as compartmentalization of information. It is important to point out that this concept should by no means confuse or cause difficulties in sharing of information with all stakeholders.
Compartmentalization in this particular context should be viewed as sharing information with those that need the particular set of data and information to make a solid business judgment. For instance, having the company mid management attend shareholder meetings or having an accountant join a meeting on strategic long term planning, would be a great mistake. Granted that feedback from every part of the organization can help in improvements, it is important to differentiate between getting feedbacks and having random mid managers attending strategic meetings.
Certainly, there are exceptions that verify the rule. There are also certainly instances that require having the greatest possible internal feedback. However, in terms of not taking a road which would alienate extremely valuable human capital, it is increasingly important to keep non qualified and less relevant management personnel out of such strategic meetings.
In the coming days and weeks we will discuss strategic methodology to determine how to devise standard operating procedures that would assist in eliminating guess work in minimizing internal and external threats because of managerial infighting.
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January 17th, 2008 15:33 PM By WCG Staff
It is safe to assume that virtually all businesses require goods or services from third party vendors. Nevertheless, it is rather a neglected issue. In terms of internal and external management of those vendors many attempts have left a real approach in the air. The existing software and hardware that allows for more effective management of those external vendors are shy in flexibility and adaptability.
Essentially the most current issue with the existing tools is within it affordability for small business as well as the respective calculation of return on investment. Even without the financial aspects, most small and mid size businesses lack the internal expertise to deploy such technically demanding projects.
As in most other aspects of comparison between small and large businesses, the small business owners are rather disadvantaged in this particular sector as well. Yet the solution to third party vendor management is rather simple for small businesses.
The basic of B2B relationship stays virtually the same, whereby the only significant difference between small business and large business in terms of their respective relationship is leverage. The most obvious step to maintain a relationship between small businesses and their respective vendors is consistency. By maintaining consistency in terms of trust, projects, and orders, one can virtually eliminate the leverage factor.
However, the question of maintaining such relationship effectively and efficiently is directly connected to issues such as cost benefit analysis, time and cost factors, as well as reliability and dependency issues. Traditionally, the maintenance of such relationship can be managed internally. However, considering the current economy, globalization as well as technical development may increase the attractiveness of outsourcing to third party firms or management consulting firms.
In the coming days and weeks we will discuss the benefits and potential disadvantages of outsourcing vs. in house dealings.
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January 02nd, 2008 11:09 AM By WCG Staff
Vendor and customer relations
It is safe to assume that virtually all businesses require goods or services from third party vendors. Nevertheless, it is rather a neglected issue. In terms of internal and external management of those vendors many attempts have left a real approach in the air. The existing software and hardware that allows for more effective management of those external vendors are shy in flexibility and adaptability.
Essentially the most current issue with the existing tools is within it affordability for small business as well as the respective calculation of return on investment. Even without the financial aspects, most small and mid size businesses lack the internal expertise to deploy such technically demanding projects.
As in most other aspects of comparison between small and large businesses, the small business owners are rather disadvantaged in this particular sector as well. Yet the solution to third party vendor management is rather simple for small businesses.
The basic of B2B relationship stays virtually the same, whereby the only significant difference between small business and large business in terms of their respective relationship is leverage. The most obvious step to maintain a relationship between small businesses and their respective vendors is consistency. By maintaining consistency in terms of trust, projects, and orders, one can virtually eliminate the leverage factor.
However, the question of maintaining such relationship effectively and efficiently is directly connected to issues such as cost benefit analysis, time and cost factors, as well as reliability and dependency issues. Traditionally, the maintenance of such relationship can be managed internally. However, considering the current economy, globalization as well as technical development may increase the attractiveness of outsourcing to third party firms or management consulting firms.
In the coming days and weeks we will discuss the benefits and potential disadvantages of outsourcing vs. in house dealings.
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December 05th, 2007 10:52 AM By WCG Staff
Evaluation of Management
Management personnel have traditionally been subject to strict hiring standards coupled with tough competition. However, the upper management is rarely subject to external performance evaluation. Most executives are evaluated by means of internal mechanisms unless public relation incidents require the illustration of fair practices. However, we are the opinion that this approach is fundamentally flawed.
It is obvious that performance measurement that is conducted objectively can assist a great deal in optimizing and improving performance and ultimately the outcome. However, the traditional SOP which only measures frontline workers; inherently neglects to measure the performance of the leadership. The opponents of rigorous executive evaluation argue that a significant portion of virtually all executive duties may not lend themselves to objective measurements because of inherent necessity of judgment calls as well as personal conclusions.
That is where a third party such as a management consulting firm can be a great deal of help. Seasoned and experienced management consultants as well as their respective management consulting firms can aid in devising measures that would objectively measure executive performance without creating undo internal conflict as well as assist in later stage implementation of potential improvements.
The greatest challenge of implementing such procedures would be within the ability to establish the necessity which may encounter a great deal of resistance by those executives that will be subject to such evolutions. Nevertheless, other stakeholders can and should push for such measures to enhance organizational effectiveness and efficiency.
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November 08th, 2007 07:42 AM By WCG Staff
Turnaround strategies refer to standard or customized measures that are intended to assist in change of direction in order to rescue a given organization. Such measures could include a wide range of actions including re-evaluation and composition of new strategy in every and all divisions and units including human resources, budgeting, consolidation, vendor and customer contracts, as well as seeking external funding .
Nevertheless, as the concept implies, the given organization is in need of improvement. Yet it is hard to generalize what particular measure can and will be the solution. Further, it is unlikely that one single measure or solution will rectify the current situation. Hence, each given situation and organization can and should be examined on the individual cases.
The first important question of course is the evaluation of overall efforts for the particular organization. It has to be determined if the given organization is worth reviving. Such determinations can be both objective and subject. The objectivity can be achieved by examining past performance and profitability, market penetration, competition, industry health, public relations , as well as local, cultural, social and economic well being of the geographic location.
The most obvious first step would be to bring in a neutral third party that can evaluate the overall organizational dynamics and interactions that may result in determining the most viable actions. The deployment of third party may appear too premature at first; the simple fact that an organization which is encountering difficulties should be financially solvent may create doubt about this step. However, considering that a neutral third party may be able to assist in unbiased and impartial general and specific diagnostics maybe even more important than short term financial solvency that can be countered by external funding.
The deployment of third party will certainly create an environment that enables all stakeholders to have confident in final findings and recommendations and the respective neutrality of those findings. The implementation of those recommendations certainly create additional issues such as effectiveness and efficiency as well as accuracy and adjustments during the implementation period.
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October 08th, 2007 09:38 AM By Staff
Ethics of Public Relations
In the world of public relations it is easy to find clients that are willing and on the search for the most appropriate consultants or public relation firms. Similarly one would be hard pressed to find a P.R. firm which would decline PR assignments. Yet there is certainly a moral and ethical component in public relations which is hardly ever talked about.
When, where and how would or should a public relations firm decline to accept a PR assignment? The answer is rather philosophical and complex. Looking at most current PR dilemmas that a company such as Verizon Wireless (Trademark of the respective entities) one can explore some preliminary topics. For instance, does a PR company has duty to decline Verizon ™ PR assignment because of their refusal to allow text messages of certain advertisers? Is there a social or cultural duty to abide by?
To be clear, there is no right or wrong answer. One PR firm may chose to take the assignment because of their belief that every private entity is entitled to choose its customer. Yet another PR firm may decline to take that assignment because of their belief that even commercial entities have to positively contribute to the collective.
No matter what the choice or final decision, it is important to realize that the end result of such assignments are not without consequences which may include tarnished reputation or PR backlash from existing or potential future clients. The bottom line on such decisions may have long term negative impact on business growth as well as issues related to company reputation.
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September 20th, 2007 08:44 AM By Staff
Minority Business Ownership
A while back we posted an entry talking about the low ratio of government contracts for minority owned businesses. In that particular post, we emphasized that there is a greater burden on minority business owners to compete on government contracts.
In this particular opinion piece we will examine the value of equal opportunity for small business owners, society and economy. The most significant aspect in equal opportunity for minority business owner is philosophical. The concepts of melting pot, American dream, and give us your poor are certainly the basis for seeking equal opportunity.
However, there is a bit more to it. The mere fact that the American society is composed of such a diverse set of population, it begs the question as to why there shouldn’t be a proportionate representation of minority owned businesses in government contracts. It is certainly logical and rational to assume that in a society with equality in all aspects of lives, the governmental contracts would not be an exception.
Similarly, considering many different sources, it is save to state that minority business owners contribute proportionately equally to the economy as their counter parts. The impact of such equality in overall contribution to the economy is more enhanced by the fact that minority business owners also equally contribute to overall societal well being not only by their financial contributions but also with other actions including creating jobs and stimulating their respective local communities.
Nevertheless, there is certainly enough blame to go around. One of the rather significant reasons is certainly within legislative branch. The respective Congress members have not made any recent great effort to promote the interest of minority business owners. Similarly the minority business owners have certainly not exhausted their options either. The mere fact that minority business associations and trade groups have not circled the wagons to establish a powerful lobby begs the question and commitment of participating and influencing local, state or federal policies.
In the coming days and months, we will continue to post our opinion about this topic and ad potential plans to rectify the under representation of minority business owners in government contracts.
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July 11th, 2007 09:33 AM By Staff
The fundamental basics of any organization are inherently influencing factors in the outcome of organizational planning, actions and ultimately results. It is not too ambitious to suggest that the building blocks of any given entity are more or less vital to survival. Organizational culture entails the mentality and mind set of individual units, employee and ultimately all possible stakeholders attitude toward organizational procedures. Naturally there are internal factors such as hiring procedures, management and organizational strategic vision as well as external factors such as local economic and politics, competitor actions as well as profitability which may influence that organizational culture.
There are certainly variation in organizational culture in today’s’ ever changing global market. Some organizations may have a rigid and static culture in which traditional standard operating procedures and results are inert in order to avoid mistake and failure or because of lack of flexibility and adaptability. Yet others organizations may have a elastic and dynamic culture in order to adapt to the ever changing market because of industry specific markets or lack of clear direction. Nevertheless, both extreme are certainly plugged with weakness; which may suggest a more viable option by combining elasticity as well rigidity based on particular organizational needs, competitor actions, market needs, and past experiences.
Essentially, it is not far fetched to suggest that there is certainly no right or wrong answer in observing and evaluating the validity of individual organizational culture and its respective impact on overall outcome and profitability. The evaluation of organizational culture should emphasize the individual organization in the context of particular needs. Similarly, it is clear that the choice in organizational culture may not be entirely a choice or a completely controllable factor. Ultimately, in order to exercise control or at least retain the ability to influence organizational culture will depend on many internal and external factors that have to be carefully monitored and possibly adjusted based on ability and possibility to synchronize organizational strategic vision with organizational culture.
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