The Thriving Small Business

Pepsi EEOC Settlement – 5 Things Your Organization Can Learn

Patricia — Wed, 01 Feb 2012 13:53:53 +0000

Pepsi has been ordered to pay $3.13 million to settle a case involving the hiring discrimination of African American workers. The charge was filed in a Minneapolis Office of the Equal Employment Opportunity Commission (EEOC) and claimed that Pepsi’s background check policy discriminated against African American job applicants.

The EEOC found that the background check policy was in violation of the Civil Rights Act of 1964 and claimed that African American job applicants were disproportionately excluded from permanent employment if their background check showed the applicant had been arrested, even if they they had not been prosecuted or convicted of a crime.

“When employers contemplate instituting a background check policy, the EEOC recommends that they take into consideration the nature and gravity of the offense, the time that has passed since the conviction and/or completion of the sentence, and the nature of the job sought in order to be sure that the exclusion is important for the particular position. Such exclusions can create an adverse impact based on race in violation of Title VII,” said Julie Schmid, Acting Director of the EEOC’s Minneapolis Area Office. “We hope that employers with unnecessarily broad criminal background check policies take note of this agreement and reassess their policies to ensure compliance with Title VII.”

The settlement will be divided among black applicants and a portion allocated to the claims process. Pepsi has changed its background check policy and has offered employment opportunities to qualified job applicants who were affected by the background check policy. In addition, Pepsi has initiated Title VII training for hiring managers and will submit regular reports on hiring practices to the EEOC.

5 Things Your Organization Can Learn

1. Policies and Procedures

Hiring practice policies and procedures should be developed to include unbiased review of the applicant information. Specific job requirement criteria should be used when assessing an applicants employability and background check information should be the last information gathered before a hiring decision is made.

2. Employee Training

Hiring managers should be required to go thorough training on hiring policies and procedures as well as governing laws to ensure legal compliance. This includes training on hiring biases, diversity and other factors that affect the hiring process.

3. Hiring Decision Review/Audit

An unbiased third party supervisor should be used to review all job applicants to ensure the person selected was the best fit for the position as well as an audit of the decision making process. This would include review of any job testing results, references, background checks and interview notes. This unbiased review can help flush out biased selections.

4. Documentation

All job applicants should be processed the same way and there should be a hiring check-sheet that outlines all of the supporting documents and records for all job applicants. This information should be kept for future reference if questions arise.

5. Policy Review Cycle

All policies and procedures should be reviewed at least annually to ensure compliance with policy and updated to reflect changing regulations. Hiring managers should be included in the annual review cycle as a reminder of the policies.

This case is a sticky topic because no one wants a convicted criminal on their payroll and employers have a responsibility to ensure a safe workplace for their employees. Creating structured hiring processes that include training those who have hiring decision making authority is a great first step in protecting your organization from discriminatory hiring practices.

More information can be found at eeoc.gov.

Websites for Small Business – 3 Goals for Small Business Websites

Patricia — Mon, 23 Jan 2012 21:18:47 +0000

The following guest post was written by Jennifer Smith who is a journalism student at Saint Louis University. Upon graduation, she hopes to travel the world while producing compelling content for the masses. When she isn’t writing, you can find Jenna with her nose in a book, or her headphones in to block out the rest of the world. You can reach Jennifer at jennaleesmith1@gmail.com.

A growing number of small businesses are based exclusively online. These businesses, whether in the technology, e-retail, or social media sectors, are — by definition — cognizant of their website needs. Most business is conducted through the site, after all, and it is therefore important that it conforms to the highest standards so there are great customer first impressions. For these online businesses, the website is a store, marketing vehicle, and workplace all rolled into one.

For more traditional small businesses, however, the website often takes a backseat to other company needs. Managers cite two main reasons for this treatment: one, that they do not possess the time and the resources to effectively establish and maintain a site; and two, that they cannot establish clear objectives for investing in a site in the first place. That first reason is a legitimate one and may be difficult for some businesses to counter, although a successful website can certainly be put up without costing much in the way of money or time and there are many free website help resources.

But that second reason should be far easier to rectify. Almost all small businesses out there can benefit from an internet presence, and most of them would likely share several general objectives and goals. Here are a few of these goals that small business websites actively seek to accomplish:

1. Confer Legitimacy

We live in a world where people will immediately Google a product, service, or company about which they are curious and have never before heard. If that search does not lead to a dedicated website, people will often – rightly or not – perceive that business as a less legitimate one. For this reason, it is important to have a website that accomplishes two simple goals: it gives an online face to your business and it does so in a professional manner, with text, layout, and a design scheme befitting of a larger operation. Consider it the best way to insure reputation protection online.

2. Be Informative

As a small business, you probably don’t have the name brand recognition enjoyed by larger firms. Your website, then, can be an important place for interested consumers to get information about your product. Your website should make being informative a primary goal. Insure that basic information is easily accessible on your home page and that the site further contains other pages where details of your business are conveyed in greater depth.

3. Spur Online Marketing

Your website should be the backbone of any online marketing or social media campaign that your business may conduct. If you have internet ads, make an appropriate landing page on your website. If you operate a Facebook page or a Twitter account, insure that both of these link back to your site. And if you seek to maximize search results, using SEO techniques to improve your page rank can help bring people to your site – and, in turn, customers to your business.

Hopefully these tips can help you establish defined objectives when starting a website for your small business. Most companies don’t need a complex or sophisticated site, but these days it is always helpful to have some sort of internet presence.

photo by: Dey

5 Barriers to Achieving Business Goals

Patricia — Wed, 11 Jan 2012 18:09:32 +0000

Organizations that use strategy and goals to move the business forward are dependent on how well goals are achieved to fulfill strategic direction. Having a structured performance management process is the most important part in setting goals and achieving them. Accomplishing strategy is dependent on the ability to achieve business goals.

Well written SMART goals lay out the framework and accountability for goal completion and managing performance. However, there are barriers inherent in many organizations that limit the ability to achieve goals and ultimately strategy. If organizations are aware of these barriers they can put processes in place to avoid these common pitfalls.

5 Barriers to Achieving Business Goals

1. Changing Strategy

Continually assessing how an organization is doing and changing direction is expected in today’s fast paced business environment and should be taken into consideration when developing strategy and writing goals. But when strategy changes, goals should be adjusted to reflect the new direction otherwise strategy is hindered.

2. Decision Making Process

It is unfortunate, but it is common for goals to be held up by the decision makers themselves. When a pivotal decision that needs to be made before a goal can be completed is held up by the manager who has the decision making authority, it delays the entire process. For example, lets say there is a department goal to change vendors for payroll services by the end of the 3rd quarter. The accounting manager gets bids and negotiates with three different vendors, presents the bids to her director but the department director doesn’t give the final approval to move forward. In this instance the accounting manager has taken the goal as far as she can so should not be held accountable for the goal not being completed. However, the department director who holds up the process is the person responsible for the goal not being completed and should be held accountable at the end of the goal period.

3. Lack of Resources

Accomplishing any goal is dependent on three things – people, time and money. There needs to be someone responsible for completing the goal and that person has to have the time and budgeted resources to work on the goal. For example, if the marketing manager has a goal to revamp the organizations website with a new logo, look and feel by the end of the 2nd quarter, but does not have the budget dollars to pay a designer and webmaster, their ability to achieve that goal will be hindered. This is why it is important to incorporate annual goals into the budgeting process to ensure the resources are available to support the completion of the goal.

4. Unclear Expectations

Goals should be written using the SMART model because this format by design creates very clear expectations. When goals are specific, measurable, attainable, realistic and timely there can be no confusion about what exactly needs to be done to accomplish the goal. For example, if a purchasing manager has a goal of researching new phone plans (not very specific) as opposed to having a goal of reducing phone expense by 10% by the end of 20XX, the second goal is very clear on what the expectation is in a measurable way.

5. Not Perceived Priority

Sometimes goals are the main focus at the beginning of the year but as the months go by the attention and chatter slows. Achieving goals needs to be kept at the forefront by continuing to have conversations about them or it may be perceived that the goals are no longer important. Goals should be discussed on a regular basis until they are achieved.

The difficulty in managing any organization is balancing the day-to-day responsibilities with the time and attention needed to achieve annual goals. This tender balance can be a challenge in today’s faced paced environment but needs to be a priority or another year will go by without moving the organization forward and implementing strategy.

photo by: Sean MacEntee

2012 IRS Standard Mileage Rate

Patricia — Mon, 12 Dec 2011 17:50:40 +0000

We’re coming to the close of 2011 and people are starting to ask what the IRS mileage rate will be for 2012. The reimbursement rate had an unusual midyear change in 2011 to adjust for rising gas prices and increased by 4.5 cents to the current 55.5 cents. The IRS recently announced that the Standard Mileage Rate for 2012 will remain the same at 55.5 cents per mile. This standard mileage rate is used for calculating deductible costs associated with business automobile expenses as well as charitable, moving or medical miles.

Employers reimburse business related mileage for employees using their vehicles for company related business. The 2012 mileage rates beginning on January 1 will be:

14 cents per mile for services to charitable organizations.
23 cents per mile for medical or moving – this is a 0.5 cent decrease.
55.5 cents per mile for business related miles.

Mileage reimbursement can be applied to cars, vans, panel or pickup trucks. Organizations that reimburse employee mileage should require employees to keep accurate records and submit request for reimbursement on a regular basis especially for 2011 reimbursement. Anyone who has unreimbursed mileage for 2011 should make note of the dates for the two different mileage rates.

January 1 – June 30, 2011

14¢ per mile to serve a charitable organization.
19¢ per mile for moving or medical purposes.
51¢ per mile for business purposes.

July 1 – December 31, 2011

14¢ per mile to serve a charitable organization.
23.5¢ per mile for moving or medical.
55.5¢ per mile for business.

More information is available at IRS.gov.

photo by: harry-nl

Sample Employee Performance Goals

Patricia — Mon, 05 Dec 2011 13:49:45 +0000

Providing a well structured performance management process is the most effective way to accomplish organizational goals. This management of performance should be based on goals set at the organizational level and driven down throughout the organization.

Employee performance goals help employees see a straight line between what they are doing and how it affects the performance of the organization, it helps them understand how what they do makes a difference and affects the bottom line.

Let’s go through an example of an employee performance goal.

The first step is to make sure each of the goals are written as SMART goals which is – Specific, Measurable, Attainable, Realistic and Timely. This is a way to test whether or not the goals can realistically be achieved. Once a goal is written go back and ask the questions, is it specific? How will we measure it? Is it truly attainable? Is it realistic? Is the timing of it right?

Ok now let’s say that the organization has a goal of improving customer satisfaction by 5 points, pulling it from 82 to 87 by June 30, 20XX. This is a goal that affects every department and every employee in the organization.

Now let’s say that Linda is the manager over the customer call center and oversees 10 customer service representatives. Linda’s job is to get the customer service reps involved in improving the customer experience which should be reflective in the customer satisfaction scores.

Let’s take the organizational goal of “improving customer satisfaction by 5 points” down to the department level. Linda is aware of some of the issues that the call center is having from reviewing the customer satisfaction data. The issues expressed by customers that her department has responsibility for are:

call wait times
rude employees
customer service reps who give out wrong information.

In this scenario, the call center department may then have three goals:

Improve customer call wait times by 90 seconds.
Reduce complaints about rude employees by 90%
Reduce complaints about wrong information by 90%

In order to improve customer satisfaction scores, there are some things Linda will need to do to improve the customer experience. These action steps can be put into a goal document for accountability.

Department: Call Center 20XX Goals for Linda Manager
Goal (objective)	Action Steps	Responsible Person	Measured by	Due Date
Improve Call wait times by 90 seconds.	1. Review wait time data.	Linda Manager	Completion by due date	11/1
	2. Determine wait times by employee.			11/1
	3. Meet with staff to determine best practices.			11/15
	4. Establish standard for call times.			11/30
	5. Determine any possible training needs.			12/15
	6. Train/inform employees on new standard.			1/15
	7. Communicate call time expectations to employees.			1/31
	8. Track call times for 30 days.			2/28
	9. Review call times again and compare to customer satisfaction data.	Linda Manager	Customer Satisfaction increased to 87 points.	3/30
1.Reduce complaints about rude employees by 90%	1.Review satisfaction data for prior 6 months and determine number of complaints of rude employees.	Linda Manager	Completion by due date	11/15
	2. Spend time listening to customer call conversations.			12/15
	3. Meet with staff and solicit feedback about the issue.			1/15
	4. Develop training program.			1/30
	5. Schedule mandatory training.			2/5
	6. Track satisfaction data for 90 days and reassess.	Linda Manager	Customer Satisfaction increased to 87 points.	May15
3.Reduce complaints about wrong information by 90%	1. Review satisfaction data for prior 6 months and determine number of complaints about wrong information.	Linda Manager	Completion by due date	11/15
	2. Spend time listening to call center conversations.			12/15
	3. Review training manual and compare conversations to scripted information.			1/15
	4. Meet with employees and share observations.			1/30
	5. Schedule re-training on procedure manual.			2/15
	6. Track satisfaction data for 90 days and reassess.	Linda Manager	Customer Satisfaction increased to 87 points.	5/15

Linda’s supervisor will use this goal document to assess Linda’s performance and include successful completion of these goals in her annual performance appraisal. This is one of many steps in a structured performance management process that contributes to an organization achieving organizational objectives.

Does your organization write performance goals?

photo by: Steve’s photos

Will the 2011 Social Security Payroll Tax Cut End – How to Prepare Employees For the Possibility

Patricia — Tue, 29 Nov 2011 14:22:37 +0000

American employees enjoyed an unexpected 2% pay increase in 2011 when the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 implemented a temporary Social Security payroll tax cut in January 2011. The payroll tax cut reduced the social security tax for working Americans from 6.2 to 4.2 percent – a 2 percentage reduction in the tax rate. This was a welcomed pay increase for millions of Americans.

We are now almost a year later and there is lot of rumbling going on in Washington about whether or not this tax cut should be extended into 2012. President Obama is proposing to extend the tax cut into 2012 but is being met with lots of resistance from the Republicans. President Obama predicts that if the tax cut is not extended, “the typical family’s taxes will go up $1,000 next year.” The squabbling in Washington is over whether or not this tax cut was successful at affecting job creation and if there are better ways to stimulate the economy. A vote in the Senate on this heated debate is scheduled for this week.

So when does the social security payroll tax cut end?

Without an agreement to extend this temporary social security payroll tax cut, it is scheduled to expire on December 31st.

Since the decision on this may or may not be made by the end of the year, it is a good idea for employers to be thinking about a communication plan for their employees. The possibility of this tax cut going away is very real, so it is only fair for employers to make employees aware and be prepared for this possible 2% tax increase.

What should be communicated to employees?

Information About the Tax Cut

Since many employees may not even be aware of this temporary tax cut, it might be good idea to give the history of why this tax cut was temporarily made, what percentage of their pay was impacted and where Washington is on the decision making process to extend it. This can be done by providing links to news stories and data about the tax cut.

How the Tax Increase Will Affect Them

From a planning and budgeting perspective, it may be helpful for employees to know how this tax increase will affect their net pay so they can begin preparing financially. This can be as easy as providing them with a formula and an example of how to calculate the tax increase at their pay rate so they can see how much less money they will be taking home.

2012 Pay Raises

This would also be a great opportunity to discuss 2012 pay increase projections for your organization. If pay increases have been budgeted, sharing that information with employees can at least offer some relief should that tax cut go away.

Budgeting Help

Many families are struggling financially, so providing employees with personal finance and budgeting resources to help them manage their money may be beneficial.

It is anyone’s guess as to whether or not this payroll tax cut will be extended into 2012, but regardless, employees should be made aware so there are no surprises when they open their paychecks after the first of the year. Employers should be sensitive to the employee perspective and do all they can to educate and prepare them for this possible 2% change in salary.

photo by: Fabricators of Useless Articles

Office Dress Code – 4 Things to Consider When Creating a Dress Code Policy

Patricia — Mon, 28 Nov 2011 14:25:47 +0000

As a grade-schooler I learned the discipline of dress code because I went to a private school that required uniforms. The positive aspect of wearing a uniform is that it takes the thinking out of what to wear in the morning, the downside is uniforms are usually boring and get old really quick. The reason many schools have uniforms is to enforce a consistent look for all the kids.

When I entered the workforce, the dress code for office workers was fairly formal. Most required women to wear dresses or skirts and eventually business pants suites became very common. Through the years the formality faded and business casual became more popular. As the Silicon Valley techie companies came into being, casual dress began to break the corporate rules for dress and casual clothes became more common place.

Years ago it was common for businesses to have casual Fridays when employees could wear their khakis and polo shirt and more recently casual Fridays very often mean blue jeans.

I worked in health-care for many years and the clinical employees wear scrubs and the administration employees wear more business attire.

Dress codes are kind of a drag because no one really wants to be told what they have to wear to work and no manager really wants to confront an employee who doesn’t comply with the code. But the policies are usually written because one employee crossed the line and forces a formal office dress code policy.

According to a salary.com survey, some respondents felt like a dress code made the workplace feel professional while others didn’t agree that wearing jeans would affect job performance. A small percentage of respondents were not even sure of what their companies dress code policy was, and those that were aware of a dress code said that it was unclear – which leads to confusion. Nearly 25% said their office dress code was too lenient and shared stories of low cut tops, holes in blue jeans and exposed body piercings and tattoos that they considered inappropriate for the office.

So what things should you consider when creating office dress code guidelines?

1. Organizational Culture

Every business has an organizational culture that should dictate any type of formal office dress code policies. The way employees dress is a direct reflection of the organization and communicates such. This doesn’t mean that the blue jean and t-shirt culture at Apple is unprofessional - they are very professional –but it is more so reflective of their particular culture. Think of meeting with your financial advisor and seeing them in blue jeans and a t-shirt might make you question their professionalism. It’s all about the corporate culture and what your culture is trying to communicate to the general public.

2. Office Distractions

Part of the reason schools have kids wear uniforms is to minimize the distractions that come with some styles of clothing. The same is true in any kind of business setting. Whether it is clothes that fits too tightly, shows a little too much skin or is dirty and not well groomed, all of these things can create distractions in the workplace.

3. Discriminatory Practices

When creating a dress code policy, it is important to not discriminate against race, gender or religious traditions. An example of this might be prohibiting the wearing of hats when some religious cultures use head-wear. You can get more information at the EEOC website.

4. Consistency in Application

One of the biggest mistakes organizations make is not being consistent in policy enforcement. When a policy is written and not enforced consistently, it can create biases that are difficult to defend in a court of law. If you are going to create a dress code policy, it is important to make sure it is enforced without bias and consistently throughout the organization.

When creating your dress code policy consider the culture you are trying to reflect to the community, the atmosphere you want your employees to enjoy and the boundaries employees need to abide by. Whether your culture is blue jeans and t-shirts or business suites and ties, it should reflect the organization’s personality and culture.

Does your organization have a dress code policy?

photo by: ldhren

2012 Raises – Average Pay Increase Projections

Patricia — Mon, 21 Nov 2011 14:23:32 +0000

As employers wrap up the 4th quarter of 2011, they should be in the process of planning and budgeting for 2012. A significant aspect of the budgeting process is planning for the possibility of 2012 pay increases. The shaky economy has had organizations apprehensive about increasing their overall costs and many businesses have been slow to bring back raises. This is coupled with the fact that unemployment remains high and there is a lot of competition for jobs, which holds back the pressure to significantly increase salaries.

Despite high unemployment, organizations are seeing low turnover which represents a stagnant job market while employers continue to have difficulty recruiting high performing employees with critical skills.

So how should you be budgeting for 2012 pay raises? There are several experts making projections that can help provide a benchmark as you crunch the numbers.

The Social Security Cost of Living Adjustments (COLA) for 2012 is 3.6% which represents the first increase since January, 2009. For the years 2010 and 2011 there was a 0% increase. The Social Security pay increase is based on the Consumer Price Index and is used to ensure that Social Security Benefits are not eroded by inflation.

A Mercer Compensation Planning Survey of more than 1200 mid-sized to large companies suggests that 97% of organizations plan to increase base pay in 2012 and the average pay raise will be 3%. The report also states that higher performing employees can expect larger percentage pay increases.

According to Tower Watson survey, median salary increases will be 2.8% in 2012. This is slightly higher than the median increase of 2.6% in 2011. The survey findings also suggest that 99% of organizations surveyed plan to increase base salaries in 2012 and high performing employees can expect as much as a 5% increase. The 2011 survey was conducted with 316 North American mid-sized to large companies representing 10,000 employees over a broad cross-section of industry sectors.

Looking at what others are predicting should be merely a guide for your organization. Revenue projections, other cost increases and your particular business environment should be the major determining factor when budgeting for pay increases.

The goal of salary increases is to retain your top performing employees so you should be strategic about how budgeted salary dollars are allocated. You want to be sure that your top performers get more of the dollar pool than lower performing employees.

For example, let’s say you budget 3% for salary increases in 2012 and you have 10 employees. If your total salary expense is $500,000 for those 10 employees then your raise pool equals $15,000 (500,000 x .03). The best way to be objective with awarding budgeted salary dollars is to incorporate the raise cycle into the performance management process. This is done by reviewing employee goal completion and performance appraisals. This data allows you to reward your top performers with a higher percentage increase and the lower performers should get less. If most employees fall within the same grading range, use a bell curve to flush out the high and low performers and add a higher percentage increase to the top performers and deduct from the average salary increase for the lower performers. In this example, it could mean a top performer could get 5% (an extra 2% on top of the average 3%) and a low performer could get 1% (2% less than the average 3%). I’m also of the opinion that it is ok to give critically poor performers 0% increase and use those dollars to reward top employees.

Planning for salary increases should be done strategically to ensure employees are rewarded for doing a good job and that budget dollars are available for distribution. Communicating throughout the process is also important in that it helps employees feel valued and engaged. Whether salaries are frozen or 3% has been budgeted for raises, sharing that information with employees eliminates unexpected surprises. There are not a lot of things more discouraging for staff than anticipating a raise and finding out at raise time that there have been no dollars allocated for pay increases. Most employees understand cutbacks and want to help keep the organization in the black which is why communication is so important. Get the employees involved in helping to find solutions.

What percentage pay increase are you projecting for 2012 – have you thought about it?

photo by: Images of Money

The Digital Age – What Does it Mean for Small Business?

Patricia — Tue, 01 Nov 2011 15:14:03 +0000

I recently read an article in the McKinsey Quarterly, titled The Second Economy. It was a fascinating read that explained the obvious – but not so obvious – transition that has been happening for a couple of decades – which is business processes slowly moving from human to digital.

“ Business processes that once took place among human beings are now being executed electronically. They are taking place in an unseen domain that is strictly digital. On the surface, this shift doesn’t seem particularly consequential—it’s almost something we take for granted. But I believe it is causing a revolution no less important and dramatic than that of the railroads. It is quietly creating a second economy, a digital one.”

The examples are endless but one that was cited in the article was checking in at the airport. Now it’s all electronic with the exception of the person behind the counter tagging and helping load your suitcase on the conveyor belt. You now walk up to a kiosk, scan your credit card and you are checked in and your boarding pass is available – processes that just a few years ago required a human being. Another great example is the changes in the shipping industry. Think of FedEx and how you can now track your Amazon order online and see where the package is, has been and estimated delivery. I remember not that long ago when it felt like you were at the mercy of the delivery service to get your package to you when promised.

There was a time when both of these examples required human placement within the process to log and manually document the information related to the customer encounter, thus increasing the risk of error due to the human interaction. Today this is all done electronically.

So what does the digital age mean to small businesses?

Customers have become accustomed to electronic processes and have high expectations for ease, accuracy and quick responses. Businesses who have not taken the electronic leap will soon be laying in the dust as customers don’t have the patience or tolerance for manual systems any longer. Small businesses need to be investing in the available technology in this digital age.

I recently visited a hat merchant that has been around for almost 100 years. A great place to shop if you like unique, well-made and classic hats. The store is in an old building but has great displays for hats, scarves and other accessories. We purchased something and watched as the elderly owner used a paper form to take our credit card information. Not only was I surprised with this but had concerns with where that paper would end up and my ability to do any back tracking if there were any issues down the road.

With this second economy slowly weaving invisible electronic connections, every organization needs to be aware of what is happening and take necessary steps to get up to speed.

3 Things your Organization Should Consider

Current, User-Friendly Website

I’m still amazed at the number of organizations that either don’t have a website or have one that is poorly designed, has outdated information or just isn’t user-friendly. The ability for the do-it-yourselfers has changed drastically in the last couple of years and it is now easy to find free website set-up and with a small investment to host a site there should be no more excuses. Making it a priority to keep a website up-to-date and user-friendly should be a basic business goal.

Quick and Easy Electronic Billing

Customers want the ease and convenience of being able to view and pay bills online. This process needs to be quick, easy and user-friendly. There aren’t too many things more frustrating than going to a website to view or pay a bill and clicking your way around trying to find the page you’re looking for. This is when conducting a focus group or asking someone unfamiliar with your website to go and test how intuitive and customer friendly the site is is a good idea.

Customer Friendly Phone Service

There are still times when customers have a unique problem and need to talk to someone on the phone which is why it is important that automated systems have an operator opt-in option. I know there are lots and lots of businesses that refer you back to a FAQ page on a website but I’m a believer that talking to a live person with good phone skills is sometimes necessary and should always be an option.

The article on the second economy was a little concerning in that it painted a somewhat bleak jobs picture due to so many things that are now being done electronically. Where this is headed is anybody’s guess but businesses today need to understand this transition and take advantage of the electronic resources available. While it can affect available jobs, which impacts payroll and the bottom line, it also can affect the customer experience.

Do you think this is a good or bad thing? Please comment.

photo by: Enkhtuvshins’s 5Dmkl

2012 Business Planning – What Your Organization Should Be Doing Now

Patricia — Wed, 26 Oct 2011 13:59:59 +0000

We’re a few weeks into the 4th quarter and I thought it might be helpful to talk about those things your organization can be doing now to plan and prepare for 2012. I am a firm believer in the old saying “If you fail to plan – you plan to fail”. There are no truer words in business as sustained growth rests on an organization’s ability to plan and budget toward the vision. Now is a great time to be meeting with your leadership team and discussing the vision and strategy for 2012.

So what things should you be discussing?

Business Strategy

It is no secret that the economic and competitive business climate changes rapidly and keeping up with those changes is challenging at best. Every organization should invest the time to strategize and plan for the predictable as well as the unpredictable business changes. For example, try to figure out what stands in the way of where you are as compared to where you see your organization going and map out a plan to get there. Do a SWOT analysis and think about your strengths, weaknesses, opportunities and threats and how you can strategically address your weaknesses and threats and build on your strengths and new opportunities. Running a business is very much like playing a chess game; you have to anticipate the moves of others so you can make the right moves and ultimately win the game – its all about strategy!

2012 Business Goals

No matter the size of your organization, every organization should take the time to strategize and write goals. Well thought out and written business goals provide the road-map for organizational success. Written goals that are incorporated into a structured performance management process are how organizations get things done and move to the next level. The economic climate makes it even more important than ever to stop and take the time to plan and strategize.

Budgeting

Many organizations are struggling with decreased revenues, increased costs and an unpredictable business climate. For this reason, developing a budgeting process that supports the vision of the organization is critical to sustained growth. Honing in on spending and investing resources into those things that affect the customer experience should be the goal. It is important to stop and think about those large ticket items that are likely to hit your organization in the next year and put a plan and budget in place to meet them. For example, if your employees are working with outdated equipment that is beginning to affect the customer experience, now is the time to map out a plan to get that equipment replaced. An example of this could be anything from outdated software, hardware or aging production equipment. Regardless, being proactive can eliminate a customer service nightmare down the road.

Customer Focus

We all know that without customers there is no business so it is important to incorporate customer needs and expectations into business planning and strategy. Develop a customer service strategy and spend time talking to customers or soliciting customer satisfaction data so your organization can offer products and services that not only meet but exceed customer requirements. The goal is to make it a “wow” experience so they not only come back but tell others about you. The wow is the secret sauce to business success.

Employee Involvement

The 4th quarter is also a great time to look at your employee census, review and modify job descriptions, update employee expectations and develop 2012 employee goals based on organizational strategy and business goals. Talking to employees and continually looking for ways to keep them engaged is time and money well spent. Without customers there is no business and satisfied customers are dependent on great employees who are engaged with the organization. Your employees take care of the customers so be sure to take care of them!

Emergency Preparedness

The climate of our planet has changed as evident by the extraordinary weather patterns this past year. The 4th quarter is also a great time to review your emergency preparedness plan and ensure your organization is prepared should something unexpected hit your business. Knowing what to do and how to respond in the event of a disaster is good business management.

The never-ending recession and challenging business climate is forcing business owners, executives and entrepreneurs more than ever to think about what they are doing and how they can sustain and grow their organization. There are no secret formulas but good planning coupled with strong performance management and fiscal responsibility is a great way to start the new year.

Have you mapped out a plan for 2012 yet?

If you would like information on how Thriving Small Business can help you strategize and map out a plan for 2012, please contact us by clicking here.

photo by: PlanUK