Maybe that is why saavy executives seem to be interested in optimizing the way human capital assets are managed. Establishing an effective performance management system is an organization’s way of doing just that.

In an 11-year study that included more than 200 companies from 22 industries, the financial and operational performance measure of companies who “lived” performance management and those organizations who did not were compared. The economic impact was enough to give any executive chills up and down their spine – or just want to throw up his/her hands and cry.

The revenue growth for organizations with performance enhancing culture was 682 percent; for those without, these organizations grew by 166 percent.

While many organizations might be happy with 166 percent growth. You’ll probably want to read more.

When you take a look at the bottom line of these two groups, the net income growth (the bottom line) of the performance enhancing organizations grew by 756 percent while their counterparts grew by a measly 1 percent!

Not too long ago, I hosted front-line supervisors from four local businesses. These front-line supervisors were “sent” to “learn some people skills”. This particular session focused on Appraising People and Performance.

Not surprisingly, no one in the group raised their hands when I asked,” how many people look forward to performance reviews?” When asked why, i heard that performance reviews could end up being confrontational or they had too many people to review and not enough time. Few will be surprised at this response: Not a single participant had ever been trained how to evaluate an employee and they “didn’t know what to say or do”.

With only two exceptions, these same supervisors who were being “trained” on how to evaluate performance, are not being evaluated themselves. We asked them how that made them feel. Here is what we heard:

• “It gives us a false sense of security that we are doing okay.”
• “I feel like my manager is just collecting everything I do wrong in a personal diary and is just waiting to unload on me one day.”
• “I have no motivation to improve.”

One of the supervisors who was fortunate enough to be reviewed was told by his boss, “Last year we focused on what was right. This year we are going to focus on what you need to change.” Another supervisor who asked his manager about scheduling a review was told, “Don’t worry about the review. You’re doing a good job and I’ll put your raise through.”

To be effective on the job, all employees need to know what they are expected to do. Performance management includes the process of identifying individual employee goals, aligning them with the organization’s goals, setting performance standards, giving feedback, and then mentoring and coaching the employee.

Performance management is no longer just a human resource activity.  It is management strategy that makes good economic sense.

Effective performance management starts with a performance review and feedback system. SimpleEvals is a performance review system build for small business. Click here to learn more about SimpleEvals.

Like other office skills, customer service skills can be measured with online tests to measure proficiency and knowledge. But skills may not be enough. Customer service personality tests measure the candidate’s behavior and personality fit in most customer service jobs.

To identify good customer service skills and job fit, these are the things you need to measure.

Interpersonal Skills

Some jobs can be performed with little to no human interaction. Customer service isn’t one of them, so interpersonal skills are essential if one’s customer service potential is going to be assessed.

Customer service workers must maintain a positive attitude and be friendly and sociable. They have to be eager to approach customers, answer questions, and respond to various issues. Skill tests will show you which candidates have these traits, as well as which of these traits could use some improvement.

Conflict Management

Every customer service representative (CSR) inevitably has to deal with a difficult customer who seems impossible to please. It can send even the most patient person over the edge, but strong conflict management skills make these customers easier to work with. By giving customer service skill tests that raise hypothetical stressful situations and ask how applicants might react to them, you can find out who can manage those situations and bring them to a peaceful resolution.

But knowing what to do and say is only half the battle when it comes to delivering excellent customer service. CSRs have to keep their cool with even the most hostile customers. Sometimes that’s easier said than done. Five factor pre-employment tests help assess an applicant’s resiliency and how applicants cope with stress.

Problem Solving

While most customer service issues can be resolved in minutes, some situations can be real head-scratchers. When there’s no quick and easy solution, a good customer service rep knows where to find one.

Problem solving is one of the most valuable customer service qualities. Good problem solving includes both critical thinking skills and the ability to think on your feet. Skill tests let applicants demonstrate their ability to find creative solutions, or to find the resources or people who can quickly. This is the kind of thinking that can differentiate your customer service reputation from the competition.

Customer service representatives are interacting with customers all the time. They need the necessary skills to manage those relationships. When you test for good customer service skills, you find the people who are best qualified to leave your customers raving about their experience.

This week Facebook threw out an olive branch to all the businesses who still use a personal profile as their business page.  You may now convert your personal user profile to an official business Page, turning all your friends into fans with a few keystrokes.  You can do this at: “Profile To Business Page Migration” tool.

But this gift from Facebook comes with several strings attached.  Before making the conversion, a business should still consider and evaluate the consequences.  According to Facebook,

When you convert your profile to a Page, some content will be automatically transferred for you:

• All your confirmed friends will be converted to people who like your new Page.
• Your profile pictures will be migrated to your new Page.

However, all other content on your profile (i.e., photo albums, profile information, wall posts, comments, etc.) will not be transferred.  Essentially you will start your new business page with “likes” but no content. For several restaurants that I know who have accumulated close to the maximum 5,000 friends and hundreds of photos, the loss is significant. Without the conversation, what’s left?

Of course, these businesses really don’t have much choice: by sticking with the profile as their business page, they risk losing the wall, photos and friends.  So while the migration tool has its benefits, it isn’t all wine and roses.

Ultimately I believe every business will need a Facebook business page.  Whether you start one from scratch or convert your personal profile doesn’t really matter. The value of a Facebook page is that is a public page, searchable by Google, Bing, Yahoo and other search engines. A business page is like a free website, a virtual storefront where 600 million people visit on a regular basis. The path you choose to create the page at this point isn’t as important as starting the page and initiating the conversation with your customers.

How do I know that?  I use Facecrooks.com. Facecrooks.com is a great site to keep track of all the spammy and scam applications on Facebook. Whenever you receive a request to play a game or find out things like “CREEPS who follow you,”  check it out on Facecrooks.

Not all applications are scams.  But all applications do require you to give permission to access your personal information in order for them to work.  It is therefore very important for everyone to make sure their privacy settings are set to a level that you are comfortable sharing with your friends, future friends, people with whom you don’t want to be friends, and just about any application.

If you took a bite out of the “CREEPS” apple already, follow these five steps to remove the application.

Step #1. Click on “Account” on the right side of the Facebook ribbon.

Step #2. Click on privacy settings.

Step #3. Under Apps and Websites (lower left), click on “Edit Settings.”

Step #4. Click on “remove unwanted or spammy  Facebook  applications” or “Edit Settings.”  Then click on the “X   remove” to the right of each application you want to remove or don’t recognize.

Step #5. The application has now been removed. To make sure your computer has not been infected, run your computer’s anti-virus/anti-malware program.

Repeat this process anytime you add an application that you no longer use or you discover it is a scam or spam.  You might want to add this your this weekly or monthly maintenance list too.

(I’ve published an e-book on “How to Network Safely on Facebook.” Contact me if you’d like to purchase a copy – only $25. It’s a step by step guide on how to be safe on Facebook.  Or contact me to set up a 1 hour online consultation to review your Facebook personal privacy settings.)

When people search on the Internet today, they are just as likely to use Facebook, Twitter, YouTube, LinkedIn and other sites to find a business, make reservations, or find a job.

Twenty years ago you would never thought about advertising without having a listing in the Yellow Pages.  Today it’s search engine marketing, also called SEM, that is a required tool in the business strategy toolbox. Social media is the new “look-up” portal and a primary source of word-of-mouth referrals.  Looking forward, I predict the following 5 trends will re-shape how customers buy, businesses sell, and non-profits prosper in 2011.

 1. Location-Based Marketing: Location services will grow in popularity as people get more comfortable checking in to a business. This will be the result of enhanced safety features — such as privacy options that block your location from public view — and more enticing brand offers.

It’s time to acquaint yourself with sites and applications such as Google Places, Foursquare, and Facebook Places. These sites will help you better target prospects’ likes and interests, pique interest and influence purchase decisions by offering discounts, promotions or giveaways when they “check in” to your business.

2. Text Campaigns: As the mobile arena grows, small businesses will continue to move marketing campaigns to mobile phones.  Local businesses will create campaigns specific to neighborhoods, area codes, or regions collecting mobile phone numbers and offering instant discounts and special offers.

3. WordPress-Based Websites: Open source publishing application WordPress will become the platform of choice for blogs and websites. Why? It makes it easier for websites to implement search-engine optimization at little to no cost with plug-ins. To stay competitive, I recommend that you consider moving your website to a WordPress platform. These sites are user-friendly and do not require knowledge of HTML code to design, update, and change.

4. Review Sites: Websites dedicated to customer reviews will dominate the social media landscape. Consumers want to be heard, and more importantly they want answers. Sites such as Yelp will achieve this by consolidating common user-submitted complaints and instantly exposing a bad customer event to millions of potential customers, demanding answers for their wrongdoings. Consumers are even creating blogs specifically about teaching people how to complain effectively. This is another reason to monitor conversations about your products and services online. Moving into 2011, make sure you have a plan for how to respond to positive and negative reviews. Remember to respond immediately. Reviews will start to spread like wildfire with these sites.

5. Monitoring Conversations: Show your customers you’re listening and responding. Creating a Facebook or Twitter or launching a new website is only the first step. Observing trends, building a community, and responding to comments is a must. You can choose social-media dashboards or keyword-alert services to help key an eye on hot topics and customer updates. These dashboards not only allow you to monitor but participate in live conversations. And if you haven’t set up Google monitors yet, they’re free. Go to www.google.com/alerts.

If your business isn’t listening to, engaging with, and monitoring customer (and employee candidate) activity regularly, you may find yourself on the outside looking in. For the millions of small businesses who will be using social media, new target markets and profitable opportunities will open. For those who choose to remain on the sidelines, Leonardo Da Vinci offers some sound advice:

“It had long since come to my attention that people of accomplishment rarely sat back and let things happen to them. They went out and happened to things.”

Eastern Shore Maryland

2011 Social Media Training for Business

Presenter/Instructor – Ira S Wolfe, Success Performance Solutions

View Schedule on Google Calendar

Jan 19, 2011

Feb 10 & Feb 17, 2011

Marketing Your Business on Facebook (Coastal Association of Realtors)

SACC = Salisbury Area Chamber of Commerce; OCCC = Ocean City Chamber of Commerce; WW = Wor-Wic Community College; OP=Ocean Pines Chamber of Commerce; BCC = Berlin Chamber of Commerce; PCC = Pocomoke Chamber of Commerce

(L) = Lecture/Workshop (C)= Computer/Hands-On Training

But forbidding employees from using social media at work is easier said than done.  While blocking access to Facebook, Twitter, YouTube, and LinkedIn is easy, preventing employees from checking these social and business networking sites on their smartphones, netbooks, and iPads is an enforcement nightmare.  It also removes the possibility of leveraging social media for more effective recruiting, competitive intelligence, and customer relationships.

Even more challenging is managing an employee’s social media behavior outside of work. A recent National Labor Relations Board ruling just threw a wrench into the social media restrictions that many employers would like to put in place. In fact, the ruling might have thrown the whole tool kit.

For example, a policy prohibiting employees from saying “anything negative” about their employer would clearly run afoul of the NLRB since this type of discussion is at the core of the right to form unions or engage in concerted activity.

An employee recently posted a negative remark about her supervisor on her personal Facebook page.  Several co-workers posted supportive comments, which led to more negative comments about the supervisor from the employee, according to an NLRB press release. The employee was fired three weeks later.

According to the NLRB, the agency determined after an investigation that the Facebook postings were “protected concerted activity,” and that the company’s blogging and Internet posting policy contained unlawful provisions, including one that barred employees from making disparaging remarks when discussing the company or supervisors and another that prohibited employees from depicting the company in any way over the Internet without company permission.

According to attorney Thomas Deer, who spoke at BLR’s National Employment Law Update, it is much better to be specific in prohibitions against disclosing “trade secrets,” and “business confidential information like customer list, business plans, formulas and pricing data” or “private confidential information about other employees like social security numbers, medical records and the like.”

Creating an employee policy for social media is no longer an option. An effective policy makes employees aware of their employers’ position on the use of social media, and it provides a reference point if it is necessary to take adverse action against someone for their online activity.

Deer offered these tips about what to include in social media policies:

• The employee must read and sign the policy at hire.
• The employee must adhere to the company code of conduct/values.
• The employee may not disclose company confidential information.
• Remind employees of their own personal responsibility for posts.
• Limit online activity during work to business-related purposes.
• There is no expectation of privacy relating to the use of Company-issued equipment or systems, and employees understand that information and data transmitted through Company-issued equipment may be monitored.
• Communications and transmissions on Company-issued equipment or systems are the property of the Company.
• Official company blogs, wiki sites, or mashups should only be used in a way that adds value to the Company’s business.
• Company logos and trademarks may not be used without the Company’s written consent.
• Consistent with FTC Guidelines, if an employee writes personal blogs or posts to newsgroups, “listservs,” wikis, social networking sites, other blogs, or the like on Company-related topics, including Company products or services, the employee should include a clear disclaimer stating that he or she is a Company employee and that the views and opinions expressed are the employee’s alone and do not represent the official views of the Company.
• If an employee write personal blogs or posts to newsgroups, “listservs,” wikis, social networking sites, other blogs, or the like on Company-related topics, he or she must be respectful to the company, other employees, customers, partners, and competitors. The employee must use good judgment and exercise personal responsibility. The employee must comply with the company’s confidentiality and disclosure of proprietary data policies. For example, Company proprietary information may not be posted, and Company clients, partners, and suppliers may not be referenced without their approval. The employee may not employ this medium for covert marketing or public relations. The employee must be aware that his or her actions captured via images, posts, or comments can reflect that of the Company.
• Social networking and blogging activities should not interfere with work commitments.
• Where no policy or guidelines exist, employees must use their professional judgment, take the most prudent action possible, avoid postings that adversely impact the company’s reputation or business, and consult with their manager or supervisor if they are uncertain about a situation.
• Other employment policies apply to an employee’s posts to newsgroups, “listservs,” wikis, social networking sites, other blogs, or the like, including but not limited to the Company’s policies concerning code of ethics and business conduct, electronic communication systems use, personal and company property and devices, dealing with the media, harassment, equal employment opportunity, discrimination, retaliation, violence-free workplace, diversity, information security, intellectual property, trade secrets, and any nondisclosure/confidentiality agreements.
• An employee posting to newsgroups, “listservs,” wikis, social networking sites, other blogs, or the like must be mindful not to engage in any unlawful conduct, such as invasion of privacy, violations of security laws, defamation, etc., and must avoid statements regarding the Company’s future performance, worth, or share price.
• If an employee views another employee’s posting to a newsgroup, “listserv,” wiki, social networking site, other blog, or the like that violates the Company’s social media policy or other policies, the employee should report the matter to the employee’s manager and/or Human Resources Department.
• An employee who violates this policy may be subject to immediate discipline, including termination of employment.

Deer also offered these 2 additional tips with caveats:

• Company-issued equipment and systems are for business use only. (NOTE: Consider whether this approach is truly desirable or achievable).
• Employees may not access personal networking sites from Company-issued equipment or systems, including but not limited to MySpace, YouTube, or Facebook. The absence of, or lack of explicit reference to a specific site does not limit the extent of the application of this policy. (NOTE: With the increased use of smart phones, this policy might not reduce employee usage since employees will undoubtedly still attempt to access social networking sites during work hours from their smart phones.)

Managers are buzzing about performance reviews. Unfortunately the anticipation isn’t necessarily positive.

Let’s be honest. The review meeting has become little more than a ritual. If it wasn’t for HR’s mandate that every employee must have this annual performance review to document performance for the employee file, annual reviews would never get done.  The review has become no more than a veiled attempt to justify paltry pay increases and to produce the legally defensible documentation in case the employee ever needs to be disciplined, counseled, or terminated.

For most organizations, the annual performance review has little if anything to do with performance – past or future. And during difficult times these past two years, many companies cancelled reviews because salaries were frozen. So within the next few weeks, employee performance will be reviewed for the first time in 2 or 3 years.  The absence of feedback for 24 or more months adds tension to what is generally a very awkward experience for both the employee and manager.

In nearly all cases, the annual review has little to do with performance but a lot to do with salary. What else would a manager discuss at the annual review if it isn’t money?  It’s the once a year sit-down where an entire year of success and failures are boiled down into a few minutes conversation. These so-called performance meetings are carved out of (or maybe more appropriately squeezed into) a busy schedule to chat a bit about the last 12 months.  The manager is often rushed and distracted and the employee defensive and anxious.

The bad news is that many organizations still see the once-a-year review as their attempt at performance management. The most common questions I hear being asked is “what can we do to improve our annual review?” or “how can we get all our managers to complete their annual reviews on time?”

What can a small business do to improve its annual employee appraisal process?

1.   Automate the process. The paper performance review form is ineffective.  Tracking down these employee evaluation forms is an administrative nightmare for human resources departments. So much time is spent administering the annual review that performance feedback and goal setting becomes secondary.  In effect, more effort and resources are committed to the process than the result. The first step at improving employee performance management is to stop the paper chase. Set your sights on providing employee feedback, not completing paperwork.

2.    Evaluate skills and behaviors that matter.  One significant mistake companies make is evaluating performance based on secondary factors. Factors such as attendance and appearance get equal billing and importance with competencies like decisive judgment, getting results, and interpersonal communication. Evaluations and feedback must address skills and behavior that affect performance.

3.   Stay focused.  Avoid the “sheep-dip” approach where every employee is treated like another. It’s a sure way to turn a performance management event into an irrelevant task. Employee evaluation forms are not meant to be wish lists. In one organization every employee from housekeeping to department directors was evaluated on the same 33 criteria.  Another business was proud to show me the 612 different competencies they identified that “aligned” with their strategic goals. Evaluating performance is tough enough without overloading the process with criteria that don’t add value or drive performance. The more criteria, the less time managers will spend critically thinking about individual performance and offering constructive comments. Limit the form and performance  feedback to between 5 and 10 core competencies or critical goals and watch the performance review experience improve significantly.

Save time, increase productivity, and eliminate hassles when administering employee performance reviews with HReviewer.

Even more surprising to me was how few people even knew it was National Boss Day.  In the past it seemed like the day received a lot more attention.  I remember when stores prominently pitched purchasing “boss” cards and gifts and business organizations promoted the day in their newsletters and email alerts.  I belong to numerous business organizations including four Chambers of Commerce. I receive dozens of emails weekly announcing events, news, and opportunities.  But not a single one – not one- mentioned National Boss Day in any of their publications during the week leading up to October 16.  That is nearly 180 degrees from what happens when other recognition are promoted such as Administrative Professionals Week or National Nurses Week.

I realize that many of you are thinking, “who cares.”  For some, recognition one week a year after being abused, berated, and mismanaged by a bad boss for the remaining 51 weeks is demeaning and meaningless. Others might relish that fleeting moment in the spotlight just like a child welcomes a band-aid on a gaping wound because it makes him feel better.

So…I’m asking for your help.  Please complete the following survey. It takes seconds…no fooling!  Let us know if you recognized your boss on National Boss Day or if you are a boss, were you recognized?  Click here to complete the survey.  I’ll release the results on or before November 1.

Are you a good boss or a bad boss?

Saturday is National Boss Day and I was interviewed earlier this week about what makes a good boss….and how can employees “manage” their bad boss better. The staff writer, Cindy Stauffer, did an amazing job listening to what I said and writing what I hope is helpful advice for bosses and employees alike.

The article follows and can be viewed at LancasterOnline.com

Depending on your job, you might be smiling.

Or groaning.

Dr. Ira Wolfe understands.

He knows what makes a good boss. In fact, the 59-year-old makes his living giving advice to bosses, trying to help them make their small businesses better.

Wolfe is the president of Success Performance Solutions, which operates out of Lancaster, as well as Maryland and Virginia.

Once a New Holland dentist, now a business guru, Wolfe has been both an employee and a boss.

The son of parents who owned a clothing store in Pennsylvania’s coal regions, Wolfe grew up in a household where things such as sales and marketing were regular discussion topics.

Wolfe went into dentistry, moving to Lancaster County to take a position as a dentist with Welsh Mountain Medical & Dental Center and then opening up his own practice in New Holland.

As the years went on, he found himself drawn back to his family roots. He discovered that he most enjoyed the business side of dentistry: the marketing, the employee management, the building of his practice. He started speaking to professional dental groups and, in 1995, he left his practice to focus on business consulting.

In his experiences working with businesses, he said, most bad bosses don’t want to be bad.

“Most people in management,” he said, “don’t wake up in the morning and say, ‘What can I do today to make my employee’s life miserable?’

“They want the day to go well. If employees are having a bad day, they have a bad day, too.”

More often, he said, a bad boss is a person who intends to lead well but doesn’t know how.

In this slim economy, they might have risen to their position because of the combination of departments, early retirements or being the cheapest person available for the job.

Now they are in the leader’s seat, and they are struggling.

“A lot of their actions are covering up for what they feel they lack,” he said.

What can employees do?

“Sometimes it’s just sitting down and saying, ‘What can I do to make your job better?’ ” Wolfe said.

If you are toiling under a struggling boss, that might be the last thing you want to hear, Wolfe acknowledged. After all, why is it your responsibility to help your boss be better?

Because there is something in it for you, he said.

By talking to your boss, you might make your life easier by improving his or her management style, which Wolfe said tends to reflect the way the boss personally would want to be managed.

Someone who doesn’t like to be micromanaged will not provide a lot of feedback to others, for example. Someone who wants frequent performance updates himself will want to check in often with employees.

Employees need to work with their boss, setting up a schedule of regular check-ins for the hovering manager or regular feedback from the taciturn manager.

And though it might be difficult, employees also should speak up when they have problems with a boss who is unpredictable or moody, Wolfe said.

“Talk to them. Say, ‘When I come into work, I don’t know how to approach you. It doesn’t help my performance. It doesn’t help me. Sometimes I need to talk to you, but you are in a bad mood,’ ” he urged.

“If you can work on communication, 50 percent of the problems go away,” he said. “Fifty percent of problems are superficial communication issues.”

Of course, there are bosses who are simply toxic: dishonest, immoral, angry, impossible.

For those situations, Wolfe said, there are no easy solutions.

“Put up with them until you can find a better opportunity,” he said. “You can’t change everybody. In those situations, it’s about making the best out of it. Fortunately, they are few and far between.”

“Most employers,” he said, “really want people to have a good day. Someone just has to step up and initiate a conversation and see if it will help.”