Introduction. Accountability. Challenges 2/6/2012. Management System Self-Evaluation Seminar

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1 Management System Self-Evaluation Seminar Richard D. Voreis CEO Consulting Collaborative Introduction Consulting Collaborative is a management consulting firm. Main office is in Dallas, Texas with six regional offices throughout the U.S. Many of our clients are glass and glazing subcontractors. Challenges We all face a challenging business environment. That may be an understatement today, too. Successful companies need to be highly focused on maximizing profits. Accountability Employees should be empowered to do their jobs. But, they must also be held accountable for the results. Without accountability throughout the company, the owner ends up being the only one held accountable. We don't think this is the right way to run a company and hopefully you also agree. 1

2 Management System A management system needs to be in place to drive: Sales Profits Employee Accountability Ultimate Goal Happy and Loyal Customers Who return for repeat business. Happy and Empowered Employees Who are career oriented. Happy and Satisfied Owners Who achieve their financial goals. Consulting Collaborative Role We show companies how" to make this happen. So they achieve positive results: Impact their bottom line. Motivate their employees. Make customers want to do business with them and keep them coming back. Self-Evaluation Questions Asking you 14 Yes or No questions. Questions to really get you thinking about: Your Company Your Company s Management System Your Company s Culture How to Succeed at Highest Level 2

3 Self-Evaluation Questions Please be 100% candid with your answers. Only you will know how you answer. Keep track of your answers. Answers Explain how each question addresses an important part of running a successful business. You will determine if your company has a management system and culture in-place to succeed at the highest level. Let s get started! Question #1 Every employee knows and understands the top priorities of the company and their job activities are focused accordingly. Answer Question #1 Every employee knows and understands the top priorities of the company and their job activities are focused accordingly. Most employees want the company to succeed. Without defined top priorities (company goals) employees assume what they think are top priorities. Lack of clearly defined top priorities is a major weakness we often find. 3

4 Question #2 Every employee understands how their role fits with the priorities of the company. Answer Question #2 Every employee understands how their role fits with the priorities of the company. Employees should understand they contribute to the success of the company. Employees must understand the top priorities of the company. If I asked your employees to tell me the top priorities of your company would everyone give me the same top priorities? Question #3 Employees are empowered to do their jobs and understand the need to link empowerment with accountability. Answer Question #3 Employees are empowered to do their jobs and understand the need to link empowerment with accountability. Empowerment without accountability is a disaster waiting to happen. Employees must understand to be empowered means to also be accountable. 4

5 Question #4 The strengths and weaknesses of the company are known and being acted upon accordingly. Answer Question #4 The strengths and weaknesses of the company are known and being acted upon accordingly. Who has heard of a SWOT Analysis? Strengths Weaknesses Opportunities Threats If not already doing so, conduct a SWOT Analysis of your company every year. Question #5 All employees are accountable by specific, measurable and time framed individual objectives contributing to the success of the company. Answer Question #5 All employees are accountable by specific, measurable and time framed individual objectives contributing to the success of the company. Do your management and staff employees have written objectives? Specific Measurable Time Framed. 5

6 Answer Question #5 All employees are accountable by specific, measurable and time framed individual objectives contributing to the success of the company. Often, employees share objectives that are not very specific, not measurable and in most cases don t address how the objectives will be accomplished. Lack of clearly defined company goals and employee objectives is a major weakness in the glass and glazing industry. Question #6 Priorities, objectives and accomplishments are periodically reviewed and, as appropriate, adjustments are implemented. Answer Question #6 Priorities, objectives and accomplishments are periodically reviewed and, as appropriate, adjustments are implemented. Reviewing employee objectives once a year is not enough. Quarterly is not too often. Always have personal face-to-face review meetings. Employee objectives drive accountability and generate great results. Question #7 The employee appraisal process and salary administration are linked to what makes the company succeed. 6

7 Answer Question #7 The employee appraisal process and salary administration are linked to what makes the company succeed. Employee appraisal process must be linked to what makes the company succeed. Employee salary increases must be linked to what makes the company succeed. Question #8 All employees know what salary increases are based upon. Answer Question #8 All employees know what salary increases are based upon. What do you believe salary increases should be based upon? Question #9 Incentive compensation plans are linked to what makes the company succeed. 7

8 Answer Question #9 Incentive compensation plans are linked to what makes the company succeed. What are your incentive compensation plans based upon? Question #10 A formal annual planning process is in place involving management and staff. Answer Question #10 A formal annual planning process is in place involving management and staff. Do you have an annual strategic planning process involving a representative number of your management and staff employees? Why do you think it s a good idea? Question #11 Managers and staff embrace a management system that enhances the company culture, promotes teamwork and makes everyone more productive and effective. 8

9 Answer Question #11 Managers and staff embrace a management system that enhances the company culture, promotes teamwork and makes everyone more productive and effective. If you said yes, how do you know? Question #12 A current and easy-to-update Strategic Business Plan is in place that inherently drives sales and profits. Answer Question #12 A current and easy-to-update Strategic Business Plan is in place that inherently drives sales and profits. It is not necessary for the Strategic Business Plan to be lengthy in terms of the time it takes to develop or in the number of pages. It should not be complicated in the approach taken to develop the contents. Answer Question #12 A current and easy-to-update Strategic Business Plan is in place that inherently drives sales and profits. Shorter is better in terms of a Strategic Business Plan that is easy to understand and implement by the employee organization. Another advantage of a plan that is not lengthy is that it can be easily and quickly updated on a year-to-year basis. 9

10 Question #13 Sales and profits are growing as a result of happy customers, happy employees and happy owners. Answer Question #13 Sales and profits are growing as a result of happy customers, happy employees and happy owners. How do you know if you have happy customers and happy employees? Question #14 Double digit pre-tax profits are consistently achieved each year. Answer Question #14 Double digit pre-tax profits are consistently achieved each year. Not an unrealistic expectation. If you don t agree, you need to raise your expectations. It is doable. We can show you how to do it! 10

11 How did you do on the self-assessment? If yes on 12 to 14 of the questions, congratulations on a great management system that drives profitability. If yes on 8 to 11 of the questions, you may need to fine tune your management system. If yes on 1 to 7 of the questions, you need to make significant changes to your management system to maximize profits. Why Companies Use Consulting Collaborative Companies who have never had an effective management system and/or strategic planning process. Companies having conducted business the same ways for years and are not familiar with best practices that have been successful elsewhere. Companies having grown rapidly in the short term and are losing control of their business. Why Companies Use Consulting Collaborative Companies who may have outgrown the capabilities of some of their employees who are not compatible with the future direction of the company. Companies who need a fully effective Strategic Business Plan to insure future growth. Companies who have the potential to experience significant growth by developing the optimum strategic initiatives and implementing best practices. Why Companies Use Consulting Collaborative Companies under-performing in sales, profits or both. Companies with multiple locations or with planned multiple locations that need uniformity and consistency in their operations. The owner of the business is the only person within the employee organization that is held accountable for generating sales and achieving profits. 11

12 Why Companies Use Consulting Collaborative Companies in a challenging phase of the building construction economy needing to maximize their employee resources in order to counteract this challenge. Companies who answered yes on only 1 to 7 of the questions in the selfassessment. Questions and Comments Any unanswered questions? Any comments you would like to share with the group? Final Thought Standing still is just another way of falling behind. Management System Self-Evaluation Seminar Richard D. Voreis CEO Consulting Collaborative 12