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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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 18th, 2008 15:28 PM By WCG Staff
A while back we start talking about fundamental steps to hire management personal. This particular entry will be mainly about evaluating credentials of potential management employees.
The fist most common process is to evaluate the educational background. This is not the same as examination and evaluation of basic academic career rather than the evaluation of educational ventures since the professional life of the individual. It is no secret that there is no shortage in finding well educated individuals. It is substantially more difficult to find an individual which has continued a dedicated path of farther education which may include single or combination courses, professional certificates, external or internal conferences, as well as additional degrees in their entirety.
The second most common process is the evaluation of the career track. This is not the same as reading and checking a resume that has a lot of current buzz words, empty titles and bogus achievements. Nor is this the same as evaluating a prospect based on the company name in their resume. This is more about reading between the lines.
The third most common process is the reference check. The traditional process entails contacting former employers to get a first hand evaluation. It can occur by any means including email and phone conversation. Nevertheless, as a matter of standard operating procedure, such feed back or evaluation should be taken at face value because of its inherently flawed assumptions.
The fourth most common process is comparative in nature. In its basic form, the evaluation entity will cross compare the most viable applicant against internal and external standards as well as against the other applicants. This particular methodology may or may not be viable because of variations in qualifications of applicants as well as their respective background.
Note of cautious – the above named procedures are inherently centralistic and general in nature. Individual businesses and organizations will have to conduct their own customized standard operating procedures to harvest the greatest effectiveness and efficiency in their hiring procedures. Nevertheless, hiring a management expert is one of the rather intriguing part of human resources, yet the greatest danger and impact is within those small organizations which do not have dedicated human resource departments.
In the coming days and weeks we will continue to discuss the procedures which would benefit small and mid size organizations without dedicated human resource department.
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January 11th, 2008 10:07 AM By WCG Staff
Management by definition implies a set of skills that may or may not be all naturally acquired or learned. The fundamentals of an effective and efficient management personnel and individual managers are rather murky. Though generally certain set of education and experiences are required to groom a manager, the quantity and quality of those requirements are by no means really uniform.
The most basic requirements such as advanced educational degrees such as M.B.A. or Ph.D. coupled with years of experiences are simply not enough anymore. In the current global economy, virtually all upper management personnel come in contact with issues such as language and cultural issues, technological challenges, cross industrial expertise as well as geopolitical concerns.
This certainly does not mean that every manager or management expert has to be familiar with all potential challenges, rather than the ability to recognize the appropriate issues at hand that can be effectively and efficiently dealt with.
Additionally, such ability may also ease the complexity of implementing solutions such as hiring management experts or management consulting firms that can aid in resolving external and internal issues. Such simplification may also influence the bottom line by creating cost savings.
In the coming days and weeks, we will start a detailed discussion about the most basic and universal requirements for hiring a management employee and management experts.
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World Consulting Group — Your premier management consulting firm .
October 01st, 2007 08:14 AM By Staff
Minority Business Ownership and Management Consulting
Recently we started talking about Minority Business Ownership in terms of governmental contracts. However, this particular entry will be more about finding those opportunities offered by federal, state or local government. There are many way to find those opportunities which could range from self service to third party services; however, we would like to discuss the role of a management consulting firm.
The mere decision to seek, find and win governmental contracts are the first and most important de facto burdens that a minority business owner must overcome. Though tempting to simply decide to pursue such opportunities, it clearly involves tremendous and tedious leg work and know-how which is best done by those professionals that understand the requirements to successfully undertake such ventures.
Before we proceed we have to make a distinction in size and its impact. Our thoughts and opinion on this particular matter relates more closely with small business and their respective capabilities and access to funding as well as talent. Generally speaking those large firms that have the means to cultivate and maintain the necessary internal competencies and resources encounter a different set of challenges. Hence it is understood that our suggestions and opinion are geared toward those minority business owners that are primarily operating small businesses.
We would like to concentrate on outsourcing to management consulting firm. The process of having a management consulting firm assist in evaluating the given organizations’ ability and capability to successfully accomplish contractually mandated objectives is the first step. Considering steep penalties, governmental and nongovernmental organizational oversight in addition to public scrutiny, it of extreme important for the given organization to have the actual ability to complete the governmental contract according to pre established contractual parameters. At first, such statement seem to elementary to even mention, however, considering possible legal and financial consequences that may occur if a dispute occur, it becomes even more important to point to the importance of organizational capability to finish the job to satisfaction.
Yet even knowing that such decision needs to be made based on solid internal organizational standing, one may wonder why a management consulting firm would be the best choice. It is rather simple why a management consulting firm is usually best suited to assist in that decision. The mere fact that a management consultant or a management consulting firm can and will approach the examination of internal organizational capabilities in neutral and unbiased manner should be sufficient. However, there are many more reasons including advanced knowledge and education on the part of those management consultants and management consulting firms, continues training, access to variety of sources for research, unbiased and neutral industry comparison as well as cross industry experiences make fundamentally for the best possible point of start.
Nevertheless the mere selection of a given management consulting firm does not guarantee success or better outcome. As discussed in our past management consulting blog we have established that certain parameters should be applied in the selection of the most viable and appropriate management consulting firm.
June 20th, 2007 10:24 AM By Staff
Outsourcing in essence refers to elimination or reduction of particular tasks internally in exchange for price reduction by external party for the same or better quality and quantity of tasks. Such tasks and decisions are not a relinquishment of control rather than an attempt in improvement of cost efficiency as well as process improvement. There are many advantages to outsourcing including cost reduction, increase in internal human capital capabilities, as well as process improvement. Nevertheless there are certainly potential disadvantage that may include creation of artificial dependency, decrease in potential development of expertise, as well as potential loss or decrease of employment opportunity.
The essential concept of outsourcing may even be divided in two separate categories domestic and international outsourcing. Both have advantages and disadvantages. Advantages of domestic outsourcing may include creation of new jobs as well as supporting local and domestic economy. Advantages of international outsourcing may include establishment of cross national and geographic relations which may aid in market penetration as well as labor and raw material cost reduction. Both, domestic and international outsourcing may also include public relations issues as well as potential commercial legal difficulties.
Nevertheless, as in any business decision the question of outsourcing is rather on of complex nature. In order to conclude that outsourcing is either required or advisable, a given organization has to examine many facets and factors of internal issues, organizational dynamics, return on investment, local and regional political consequences, as well as the selection of particular vendor.
Ultimately, the decision to use a techniques and strategy that would lead to outsourcing has to be in the context of overall organization mission statement, vision and long term strategy. It is virtually impossible to assign a particular positive or negative value to the concept of outsourcing without examining it in the context of particular organization and economy. Yet it is obvious that outsourcing is just another tool to enable business decision makers and stakeholders to farther enhance organizational effectiveness and efficiency while increasing profitability for all the stakeholders.
June 08th, 2007 10:45 AM By Staff
Strategic vision in general refers to theoretical and overall organizational goals which are formulated by decision makers of a given organization in order to enhance uniform and coherent practical steps to achieve the greatest possible effectiveness and efficiency as well as enhancing the stakeholders profitability.
However, strategic vision is mainly a theoretical component which requires modifications and adjustments in order to adapt to ever evolving markets based on predictable factors as well as unpredictable factors. Predictable factors may include consumer attitude, economic growth, product development and internal and external expenditures. Unpredictable factors may include political turmoil, domestic or international competition as well as internal and external conflicts.
All of the above factors may influence minor and major components of strategic vision. Hence requiring a great deal of flexibility and adaptability in order to translate a predetermined strategic vision into a lasting and viable umbrella guideline. Nevertheless, it is essential to emphasize that strategic vision by itself is meaningless if the organizational design and inner workings are not able to translate such visions and theories into practical real world actions. Thus, it is important to evaluate the basis for the strategic vision in terms of action ability as well as organizational capability to achieve the required goals.
In any case, the main point of strategic vision is and should be the determination of a theoretical methodology designed to create overall directions with the flexibility to adapt to the ever changing global business. In order to have a viable strategic vision or strategy the stakeholders and decision makers are required to include viable and practical components which would enable the strategic vision to become reality. Hence a strategic vision that is designed to be viable will naturally include many factors that enable the given organization the ability to translate it in actions and ultimately profitability.
