In my 40 years of
business I have seen
come and mostly go.
The primary reasons
for the high failure
rate are lack of
management experience and undercapitalization. In this article I am going to discuss what I find to be the most common mistakes made due to a lack of management experience.
There are three common management mistakes that are almost always fatal: 1) poor choice of location, 2) poor spending habits, and 3) failure to seek out advice and training.
Good grammar is instrumental in conveying ideas with clarity, professionalism, and precision. Even so, the informality of e-mail, texting, and tweeting has crept deep into company communications. Good grammar is a sign of professional credibility, attention to detail, and learning ability.
One of first questions I ask our Warehouse Management students is, “Do you know your operating costs?”, and our Production Planning Management students, “Do you know the cost to produce one of your items?” After five years of training, I can count on one hand how many students were able to answer these questions, which immediately tells me their company does not utilize cost accounting.
The reason students are unable to answer the question is their company only has what is called management and financial accounting in place.
As we start the new year with a significant reduction in business taxes, I want you to think about the best way to invest those savings. Responsible companies think of their employees and want to do something for them. Bonuses are good, pay raises even better but much like the saying, “Give a man a fish, and you feed him for a day; teach a man to fish, and you feed him for a lifetime.” the benefits of bonuses and pay raises can be short-lived.
In this article, I want to discuss how to apply those savings to create loyalty through exceptional leadership. The kind of leadership I’m talking about engenders the kind of loyalty in a person that they would willingly follow you into a situation that could cost them their life. I realize in business this is rarely the case, but if you study the leadership techniques of organizations that ask that of the men and women they lead you can learn these exceptional leadership skills. The organizations I’m referring to are the U. S. military.
Firms investing in employee training, compared with
those that do not, experience an average of 24 percent higher gross profit margins and 218 percent higher revenue per employee. Trained employees improve your bottom line by saving you time and money through improved performance and productivity. An increase of $680 in a company's training expenditures per employee generates, on average, a six percent improvement in total return. Based on the training investments of 575 companies during a three-year period, researchers found that firms investing the most in training and development (measured by total investment per employee and percentage of total gross payroll) yielded a 36.9 percent total return as compared with a 25.5 percent weighted return for the same period. That's a return 45 percent higher than the average. These same firms also enjoyed higher profit margins, higher income per employee, and higher price-to-book ratios.
We are certain
you will agree… the quality of your customer base will determine how successful your company will be. Investing in your customers’ success will improve customer retention and increase your sales.
An important fact you should be aware of, companies that train their employees experience an average of 24 percent higher gross profit margins and 218 percent higher revenue per employee. But here is the catch 22, companies that need training the most, are the least likely to offer it due to the cost.
This is where you step in. By offering a group class to your customers, the individual cost is dramatically reduced.
By making available to your business customers training in basic business management, customer service, budgeting, team building, or more; you dramatically increase their long term viability. Think about it for a minute, how much do you spend on things like cookouts, golf outings, t-shirts, sweatshirts, etc., none of which do a thing to increase your customers’ sales and very little to improve your business to business sales.
Have you ever been in a class faced with an instructor like the one in the picture? Most of us have. Did you learn anything? Probably not. Let's take a look at why a trainer's expertise can be a turn off.
As the executive director of a business school, I get to choose the classes I teach, and one of my favorite classes is customer service. I’m always looking for examples of good and bad customer service to share with my students. I would like to share a recent experience at Best Buy and what I learned about that business.
Our Executive Director was recently asked to comment on the issue of unhappy customers who never seem to be satisfied. We want to share his comments and those of some of the people participating.
Since becoming Executive Director of the Academy of Business Training, I have worked with over a hundred companies seeking to improve their performance. In the vast majority of cases, the individuals they send for training are front-line managers. The sad truth is the people that need to be attending are the policy makers and senior managers because the company's poor performance is not due to some failing on the part of their front-line workers but, instead, policies or poor execution of those policies by managers. You cannot expect front-line employees to deliver superior performance when company policies and senior managers fail them.
If the objective of training is for people to apply learning in the workplace and make an observable difference to an organization’s results, then almost all corporate training fails to achieve its objective.
In a study released by the Association for Talent Development 95% of training reached a level where the participants liked the training, but only 37% of training reached a level where participants learned the material, only 13% of training reached a level where participants applied the learning in the workplace, and a dismal 3% of training reached a level where there is an impact on the organization.
According to the Forbes Magazine, U.S. based companies spend approximately $70 billion a year on training. Yet many organizations get low ROIs from their training initiatives.
What are the reasons for such poor results?