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Tag: human resources

  • How Do You Know It’s Time To Get Some Expert Help?

    How Do You Know It’s Time To Get Some Expert Help?

    Adding a senior employee can bring short-term costs but long-term gains. Here’s how to tell if the time is right for your business.

    When you’re the owner of a small business, knowing when to hire a senior employee isn’t always easy — but it is important. By freeing you to focus on high-value activities where you have true expertise, it can help you take your company to the next stage of growth or, in some cases, simply ensure its continued viability.

    “Entrepreneurs are accustomed to hiring ancillary employees and pawning off smaller tasks on them,” observes Dave Poulos, chief consultant at Granite Partners LLC in Sparks, Maryland. “But at some point, they discover that they’re working their tails off and still can’t be everywhere they need to be or do everything they need to do. That’s when they need to make a high-level hire.”

    While cost can be an issue, Poulos says companies should consider how much they might be able to boost revenues with a new player on the management team. Ideally, it will more than cover the additional salary.

    Chuck Cohn, CEO of Varsity Tutors, a Washington, D.C.-based tutoring service, says that over the past several years he’s “fired” himself from various duties and brought in expert replacements to handle, among other things, bookkeeping, sales and advertising. “Each time it’s had a dramatic impact on how effectively that role is done, my happiness, and our ability to grow — because my time became available for higher-level projects,” he says.

    Wondering whether your company is a candidate for a high-level hire? Here are five signs it may be time to expand the executive suite:

    1. You’re working long hours but missing operational goals or revenue targets. Julie Sue Auslander, president and chief cultural officer at cSubs, a New Jersey-based provider of outsourced subscription services, says a bell tolled for her when she realized that she was doing “a lot of work” but never seemed to have any money.

    “I hired cheap, tried to do it all myself, hired multiple part-timers, and, as a result, missed out on growth opportunities,” she says. Taking a new tack, she outsourced payroll and brought in a bookkeeper who discovered that some invoices were being paid twice or in the wrong amount while some of her own clients weren’t being billed at all. “The revenue I realized from her correct work covered her salary,” she says. “In addition, offloading those activities freed me to do work that nobody else could, and in turn helped my company reach the Inc. 5000 list.”

    Auslander has since hired a part-time controller, which has helped her secure additional funding for her business, enter comfortably into strategic partnerships, and even plan an exit strategy for herself.

    2. Critical parts of your business are proving error-prone or inefficient, and you don’t know how to fix them. Eric Thomasian, head of business development and strategy for Blayze Inc., an online video company, says his firm knew it was time to hire a chief technology officer after its technology systems, which had been outsourced to a third-party developer, turned out to be bug-ridden and not true to their original design.

    “As soon as we made the hire, our CTO hired more coders to create an internal technical team,” Thomasian says. The results were impressive. Turnaround time on system changes rose by 800 percent, funding became more easily attainable because investors felt safer when they could actually meet the company’s technical team face-to-face, and customer satisfaction increased by 90 percent.

    3. Essential tasks are going unfinished. Brianna Sylver, president of Sylver Consulting, a business consultancy with offices in Chicago and Brazil, says she knew it was time to bring in high-level help when “we got into a situation where I needed to be able to duplicate myself in order to get everything done.” After documenting her specific pain points, she brought in a director of global insights and innovation in May 2011. “The results have been fantastic,” Sylver says. “She’s a great addition to the team in multiple ways and has helped us grow as a company.”

    4. Business initiatives yield poor results because you’re not an expert in that facet of your business. Brock Blake, co-founder and CEO of Lendio, an online service that helps small businesses find bank loans, says he decided to hire a vice president of marketing about a year ago after realizing that his own marketing initiatives weren’t helping the company meet its goals. “I wasn’t cut out for that job,” Blake concedes. “We were just going in circles.” After a three-month search, Blake found the right person to take the job, and the results, he says, have been phenomenal. “We’ve doubled in size, both in revenue and in our number of employees.”

    5. You’re continually telling customers you can’t meet their needs. “If your customers are constantly asking, ‘Do you have this?’ or ‘Can you do that?’ and the answer is always ‘No, because we don’t have time,’ you’re making a mistake,” Poulos says. One of the advantages of being a small business, he argues, is the ability to act quickly and nimbly to meet customer demand. “The answer to ‘Can we do?’ and ‘Do we make?’” he says, “should almost always be ‘yes.’”

    Making a high-level hire can be intimidating, especially if you’re accustomed to doing everything yourself. But it can also make you happier and more productive, and your business more profitable.

    For more like this to maximize your business growth curve, pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • Is A Graduate Degree Keeping You From Getting Hired At A Start-up?

    Is A Graduate Degree Keeping You From Getting Hired At A Start-up?

    I came across this article, Why Start-ups Shouldn’t Hire People With Graduate Degrees by Penelope Trunk on bNet, and thought it was particularly appropriate for our Entrepreneurship Practice – having lectured at both undergraduate and graduate level and worked with a variety of students, I feel this rings true. Having worked with start-ups and started seven businesses in the last 30 years, I can relate to the pool of talent that comes out of b-schools over the last three decades – they need more resources, more management time and more seasoning than undergrads with 2 years of work experience ever did. They whined more and produced less than their less educated counterparts, too.

    See if you agree after reading Ms. Trunk’s words of wisdom . . .

    It’s likely that if a person attended graduate school, he will have a hard time translating his strengths into strong workplace performance — especially at start-ups.

    Most people who went to grad school did it to prolong adolescent needs for grade-based approval. (Note: This analysis comes from writers at the Chronicle for Higher Education.) This is because the grad school model is generally outdated for today’s workforce, and high performers see this before they enroll. But people who are scared of trying to hold their own in the workforce see grad school as a way around the inevitable difficulties of finding a job one enjoys.

    Here are three reasons why it’s a decent bet to stay away from candidates with graduate degrees when you need to hire at your start-up:

     

    1. Humanities are for people who are afraid of adult life.

    My experience with graduate school was for English. I tried it when I couldn’t figure out what job I was qualified to do.

    The answer, in fact, was that I was not qualified to do any job before grad school — but I was not qualified to do any job after grad school either. So I left early, without the degree, when I realized graduate school is stupid.

    It’s not just the field of English that is a dead end. One would have had a better chance surviving the Titanic than getting a job as any type of humanities professor. Humanities PhD programs suck up time and energy with little return.

    Most people who go to grad school for humanities defend their decision by saying they love their topic. But look, if you love your topic, you can do it after work. Just open a book and read it on your own.

     

    2. Business school is for people who lack ideas and initiative.

    The big question you should ask when business school graduates tell you they want to work for your start-up is: Why did these people just dump $100,000 into a business degree instead of dumping it into their own company?

    If they really wanted to work at a start-up, why didn’t they launch one? Clearly, money was not the barrier, because they had $100,000 to burn. So it’s something else.

    I think they don’t start companies because they do not have any ideas. Or, in the case where a person actually does have ideas, he doesn’t believe in himself enough to give his own ideas a shot.

    So why should you believe in this person?

    Take a look at how many smart people write about how business school is not a good path to entrepreneurship. The only reason we are even talking about business school in relation to entrepreneurship is that so many people want to be entrepreneurs that business schools had to launch entrepreneurship programs to attract those people.

    During my days as a journalist, I interviewed Saras Sarasvathy, from Dartmouth’s business school. She explained to me the research about the traits of a successful entrepreneur. And believe me, none of those traits requires a degree from business school.

     

    3. Law school is for people who lack creativity and will likely fail in the workplace.

    Yes, this is a generalization. But there is pretty good evidence to back up this generalization.

    For starters, most lawyers hate being lawyers. There are five, big myths about being a lawyer, but the main problem boils down to this: To get in to law school, you have to be great at school (reading and regurgitating back to the professors what they want to hear) and you have to be great at test-taking (the LSAT still rules admissions).

    So law school selects for people who are rule followers and like to be told what to do.

    But to be a successful lawyer, you have to be great at marketing and client relations. Otherwise you won’t make any money because you won’t bring in any business.

    People applying to law school ignore this problem. (And so do law schools, but that’s another story.) The reason law students ignore it is because they are so desperate to have a clear path to money based on the skills they have exhibited in school. The desperate need for a safe route makes people ignore the fact that law school is very, very high risk for an unhappy life.

     

    4. People with multiple degrees will be a pain in the ass.

    Why would anyone get two degrees? It’s like being a triple major. Anyone who is a triple major as an undergrad is likely to be awful to work with. A triple major is myopic in her knowledge, insecure with her own identity, and desperate to impress. There is no good reason to have a triple major in a world where it’s clear that an undergraduate education does not really teach you anything about your major anyway.

    The same can be said about people with multiple graduate degrees. It’s just that as an undergrad, the triple major is trying to find an excuse not to have to socialize. A graduate student is trying to find an excuse not to have to embark on adult life. And that’s not the kind of person who’s going to add a lot of value to your company.

    Which leads me to the best hire you can make: Someone who faces the difficulties of adult life head on and takes personal responsibility for building his own skills. Someone who makes time to develop social skills, test his own ideas, and take risks that are scary but necessary for growth.

    Those people often look messy. Adult life is messy. But it’s better to hire someone who has waded through the mess of growing up than someone who has avoided it at all cost.

    If you find this strikes a nerve, or if you think it’s spot on, and would like more, subscribe to this blog above – and don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes” 

     

  • Human Resources Are Your Finest Resources

    Human Resources Are Your Finest Resources

    We get asked for advice and guidance by firms large and small every day, and when reviewing whether or not to work with a new client, we try to do our due diligence and determine for ourselves whether this going to be something beneficial for both client and consulting firm. One of the unspoken, immeasurable, but over-riding factors we consider is: “Do we like working with these people”. The human factor is an “X” factor that is hard to quantify, but is crucial to a successful outcome.

    How do you find, and keep those “Good” people in your organization, the ones that are loyal, hard working, dedicated and passionate about their work? Top talent requires top treatment, but how do you craft an incentive program that keeps them challenged, interested and passionate? What kind of carrot do you dangle in front of those talented executives to keep them in your stable?

    According to some of the region’s foremost HR experts, a one-size-fits-all approach to benefits, incentives and retention is no longer viable, and I tend to agree. If you think about it, as marketers, we know that you can’t expect great results by sending the same package to wildly different audiences. So why would you expect great results making the same offer to a broad range of employees? Internal segmentation is just part of the story. If you dig deeper, you’ll find there are other elements that add to retention that you might not have thought of. Transparency is a tough issue that many private or family firms struggle with, but that can make a huge difference in your retention of top senior executive talent – they are savvy enough to want to know where the money is going and how decisions are being made that affect the future of the company. The lower- and mid-level employees should share this access to information, but for them, some more intensive and extensive education is coupled with the information, so that they can understand what they are seeing and how to interpret the data accurately and draw reasonable conclusions.

    Most of the experts agreed that while retention is an issue, making good hiring decisions in the beginning is the single largest factor in keeping good talent on board. Some suggest pre-employment screening tests and inventories of various stripes, but most agreed as well that any single instrument should not be weighted too heavily, and certainly not weighted above the interviewers insights and impressions, background checks and due diligence. In general, their feeling was, skills can be taught, attitude can not, and that those with the right mindset that will fit in culturally with the mission and goals of the organization will do better long-term than those with top skills but behavioral issues.

    What does any of this have to do with marketing? It strikes me that there are parallels between how you select and retain employees, and how you attract and retain customers. Aside from the obvious connection that the marketing department are crucial hires for your organization, and often some of the highest turnover ones. Good marketing talent is difficult to find, even at a point where double digit unemployment is quickly becoming the norm. If you find such individuals, you should strive to assess their needs and hold on to them using any means necessary, because they can make or break your company faster than any other department. Marketers can do more damage with a slipshod approach than any embezzler or bull-in-a-china-shop manager.

    Spend as much time on hiring your marketers as they do segmenting their customer lists and researching the target market, and all will be well. Spend time to get to know them, make sure they’re compatible with your mission. Don’t worry if they seem a little “off” in a couple of social areas – these top talents are trained to think way outside the box, to innovate, to be renegades, not to be the round peg in a round hole. Don’t hold that against them in the hiring process, for these are signs of their future success . . .

    If you found this valuable, and would like to read more , sign up to receive these posts in your inbox – free! Also, don’t forget to pick up your copy of “The Marketing Doctor’s Survival Notes”

     

  • Sharpen Your Skills Before They Rust Away . . .

    Sharpen Your Skills Before They Rust Away . . .

    We all develop skills as we go through life and get older and more experienced. Some of those are of a more temporary or cyclic nature, and some are used daily and are at peak performance. Skills like coping with change, or a sudden occurrence, get used when needed and then left off the menu until they are needed again.

    Some are annual, like “How did I put these lights on this Christmas Tree last year?” And some need to be constantly honed or updated, in particular, computer skills. This is a tough one, and in an increasingly computerized world, those who don’t keep up will certainly be left behind to one degree or another.

    I’m not exempt from this phenomenon, either. Skills I learned about computers 20 or so years ago are long gone as they are obsolete, and certainly those learned 30 years ago are useless (try finding punch cards or teletype tapes today!). Modern computer skills in particular need to be practices and updated almost weekly in order to keep up to speed. Once I mastered the use of a server and printer, then the Internet and E-mail came along.

    Once I got the hang of those to some degree, albeit not mastery by any means, then texting, social media and ads came along, and a whole new set of skills was needed. There’s always something new coming along that needs to be learned and understood, but if you don’t make a conscious effort to find out about new developments, they won’t find you and you’ll get left behind. And nobody likes to be left behind.

    I have a theory that there’s a place in everyone’s life where that curiosity diminishes, and you stop making the effort to learn new skills. That date or age is different from person to person, and I suspect there are plateaus that each of use arrives at and must make a conscious decision to either surmount them and climb to the next level or stand pat on what we have and stay there. This date may be strongly influenced by the level of skill needed to maintain the status quo, and stay within our daily comfort zone. When the technology advances so far that it affects our daily functioning and pushes us out of our comfort zone, we are forced to learn new skills.

    Everyday things like banking, shopping, finding services and vendors to meet our needs, all have changed and computerized to the point where it’s difficult to interact with those businesses without some level of computer savvy. Even reading the daily paper is a very different experience than it was even three years ago. There are now lists of “most read stories on the Internet” and stories have links and the columnists and staff writers open themselves up to rebuttal by publishing an e-mail address – in the old days, you had to write to them care of the paper, and they could decide whether to acknowledge receipt and reply. You could just delete the e-mail, true, but that kind of direct access gives them immediate feedback on their work, and they can sense and even quantify the reaction to their efforts almost instantly compared to the week or so delay of years earlier.

    The moral of the story is that as soon as you lose curiosity, and stop learning new things, you are doomed to lose contact with a segment of our culture, and the more of those you lose, the more isolated and irrelevant you become, in the cultural scheme of things. AS in business, if you’re not moving forward, your dying, piece by piece. Maybe it’s time to return to some previously used skill and update it today – sign up for a class, go to a lecture, read a new publication, find a new book (e-book if you prefer) and keep that curiosity burning . . .

    If you liked this train of thought, or if it derailed yours . . . if you’d like more like this, be sure to pick up a copy of “The Marketing Doctor’s Survival Notes”