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In This Issue
My Turn - Accountability
Alternative Approaches to Great Cash Flow
Smart Office Design
Why Not Laugh...
Motivational Messages - An Essential Key to Your Business Growth
October 2007
Welcome to Staying in Step with Step 1!
 
I hope you enjoy this newsletter.  Every issue features current thoughts and best practices in leadership, business management and core competencies from recognized experts.  Feel free to send me your thoughts on the content and layout -- I'm always open to great ideas, no matter where they come from.
 
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My Turn - AccountabilityJeff Canter image
 

"He that is good for making excuses is seldom good for anything else."

                                                                                                                      Benjamin Franklin

 

Were you to survey current dictionaries you would find that the word "accountability" is generally described as the act of accepting responsibility for one's actions & decisions.  This is a reasonable, if simple, definition, not only for each person in their individual lives but also for those who serve in leadership roles in corporations and organizations.  Personal accountability is frequently thought of in terms of how we behave ethically, morally and, in some circles, spiritually.  It is mostly concerned with the decisions we make as distinct human beings and how those decisions impact others as well as ourselves.

 

Corporate accountability takes the concept of personal accountability one step further.  Being accountable within an organization is identical to personal accountability when taken in its most granular form - that is to say when it is viewed purely within the context of one person's actions.  However, when one individual is also accountable for the actions of others who may report to them, the simplicity of the personal accountability context is replaced by the complexity of multiple instances of individual actions integrating with one another.  Put quite simply - corporate accountability represents responsibility for the collective actions of all those in the chain of authority within an organization.

 

The implication of this on those in management positions is significant.  Managers must be accountable for everything that occurs within their functional area or authority chain.  Each successive management layer must, in turn, accept the burden of accountability for the actions of everyone under their area of responsibility.  This means that those who sit at the very highest levels in an organization have accountability "exposure" for everything that occurs below them (within their defined chain of command). 

 

When someone becomes a manager for the first time, it is not uncommon for them to be unaware of the true enormity of their new assignment.  Beyond the operational aspects of their new position, these new leaders have accepted, often without realizing it, total responsibility for everything that happens in their department, regardless of the cause or circumstances.  That last point is critical: too often new managers fail to understand that it is no longer acceptable for them to try to deflect blame onto others for the mistakes that are made within their functional area.  Accountability for the new manager is identical to that which governs senior, more experienced leaders.  A manager is accountable for everything that goes on within their functional area, even those things which the manager may feel is out of their direct control.  Before they assumed their leadership role, the new manager may very well have been able to avoid responsibility and/or blame for the actions, good or bad, of their peers.  What these new supervisors must accept immediately is that defensive claims of "It's not my job, man!" have become a relic of their employment past.  As of their first day in their new position, they are on the proverbial hot seat for a seemingly endless realm of possible problems.  Often, brand new managers will be given some margin for error in the earliest days of their tenure, as they "come up to speed" with the new position they occupy.  This won't last very long, however, before those accountable for the actions of the new manager begin to demand more of them.

 

In practical terms, accountability means that the new manager must accept whatever consequences result from the actions of those who report to them through the chain of command.  In minor issues this may take the form of a rebuke or even a written warning by their immediate supervisor.  In major issues being accountable can potentially result in the manager actually losing his/her job.  Accountability is not, therefore, a throwaway concept that new managers can blithely dismiss.

 
This article is excerpted from the Step 1 "New Manager Field Guide", the workbook used during our immersion training for new managers.

 

broadcast news
Initial development work has begun on the first episode of our video management training series entitled "The Lunchtime Leadership Class".  Each 30 minute installment of this on-demand professional development course will deliver the same quality curriculum as our face-to-face sessions, only with the scope of each lesson designed to fit into the new manager's busy workday.
 
Current plans call for you to be able to take advantage of this first rate training by downloading it to your PC, as a video podcast to take with you or via streaming video from our hosted training center.
 
Pricing and availability dates haven't yet been finalized so stay tuned!
 
Watch for more news about this exciting new project!
Jim DeLongAlternative Approaches to Great Cash Flow
 
by Jim DeLong
 

Available working capital and good cash flow are characteristics of successful businesses, but they are often hard to achieve. Bank financing can provide access to the needed capital but it is often not available or too small to meet the needs of the business. When this happens, non-traditional, or alternative, financing may provide the solution. However, alternative financing may be unfamiliar as the companies providing it are not household names and the forms of financing are often niche products. The following provides an overview of three strong alternative financing methods to help you better understand your options.

 

The first is Accounts Receivable Financing or Factoring. It is the process when a company sells part or all of its accounts receivable either one time or on an ongoing basis. The company receives immediate funds as it simply turns a future receivable into cash today. The result is a better alignment of a company's cash inflows with their outflows. Companies waiting 30-45 days or more for their customers to pay receive a majority of their money within 1-2 days of generating the invoice. The benefits are numerous including the ability to pay suppliers timelier, taking advantage of supplier discounts if offered. Another is the feeling of control you gain when avoiding the stress of waiting and wondering if you are getting paid today. Perhaps the most significant benefit is simply having the working capital on-hand to meet the demand for your product or service. Many companies have to control their sales efforts as they may not have the working capital needed to fulfill the total demand for their product. Since having an accounts receivable is necessary for factoring, a business-to-business company is the typical user of this financing.

 

Another alternative financing option is Purchase Order Financing. This financing is specific to companies that generate purchase orders triggering the manufacturing or assembly of labor needed to fill the order. Like factoring, it entails the sale of the purchase order that is verified with an approved customer. Often, the purchase order then leads to an invoice that is factored. This type of financing is used by companies with irregular sales levels or seasonal sales that cause fluctuating cash flow. Pricing for purchase order financing and factored accounts receivable financing is usually a fee based on a percentage of the value of the purchase order or invoice.

 

The sale and leaseback of a company's existing equipment is a third means to generating cash flow. This provides an injection of working capital that comes from unlocking the value of equipment that you have sitting in your facility. Fees are established based on the value of the equipment and a payment plan is determined by the leasing company.

 

It is important to recognize that alternative financing is not restricted to companies that are struggling or on their last leg. Rather, it is the means to inject working capital into your business by leveraging assets you already have. It is also possible to combine both traditional and alternative financing if existing bank lines are in place, so do not overlook these options because you already have some financing in place. Overall, alternative financing is a very viable means to injecting working capital into your business. There are a number of strong local and national financing companies that offer one or more of these options. Looking more closely at alternative financing may provide your business with the capital it needs to grow and expand your opportunities for increased profits.

 

Jim DeLong is the Principal of Liquid Capital of Western Pennsylvania, a company focused on providing alternative financing to improve a company's financial health. Jim spent 22 years in various corporate leadership positions where he often faced cash flow challenges when trying to grow his young companies.

 
You can contact Jim at jdelong@liquidcapitalcorp.com or at 412-835-7000

Paul RosenblattSmart Office Design: The Eighth Lesson is Green

 

By Paul Rosenblatt AIA

 

When The Harvard Business School speaks, people listen.

 

A few years ago, Harvard Business School Press published "Thinking for a Living: How to Get Better Performance and Results from Knowledge Workers" by Thomas Davenport (Harvard Business School Press, 2005). In this highly readable book, Davenport discusses the results of his extensive study of job performance. As an architect who designs workplaces, I was particularly interested in the seven lessons that the author learned about the affect of the physical work environment on job performance.

 

According to Davenport, we know that:

 

1. Knowledge workers prefer closed offices, but seem to communicate better in open

ones.

2. Knowledge workers move around in the course of their work.

3. Knowledge workers collaborate.

4. Knowledge workers concentrate.

5. Knowledge workers work in the office.

6. Knowledge workers communicate with people who are close by.

7. Knowledge workers don't care about facilities 'gewgews" like ping-pong tables and

cappuccino machines.

 

Of course, Davenport goes into much more detail, but the bottom line is that these factors have

design implications that must be addressed. From the layout of desks and workstations, to the

spaces 'in-between,' Davenport demonstrates that decisions managers make about their physical work environments will have a significant impact on the performance of their teams. Like the old saying goes, Prior Planning Prevents Poor Production! Accordingly, it is essential for managers to work with design professionals to understand the dynamics of their individual companies and to reorganize or renovate to increase productivity.

 

In addition to Davenport's seven lessons, I would add one more. It has long been known that too much time spent in unnatural office environments is bad for us. Many people call in sick from illnesses caused by the workplace itself. Sick Building Syndrome (SBS) has, for instance, been clinically proven to exist; in fact, the United States Environmental Protection Agency (EPA) offers an online publication that addresses indoor air quality (IAQ) facts related to SBS. They note that a staggering 30% of all new and remodeled office buildings are the subject of IAQ complaints. People with SBS complain of coughs, chest tightness, fevers, and muscle aches and, as a result, countless productive workdays are lost. Factors such as inadequate ventilation, chemical contaminants from indoor and outdoor sources and biological contaminants all contribute to SBS.

 

The good news is that SBS can cured!

 

The best cure for SBS is building green. 'Green Building' is the term that describes a whole set of building and renovation strategies that can help to make your workplace healthier and more

productive. Increasing daylight and natural ventilation, using paints that have low VOCs (volatile organic compounds), and working with water-based adhesives and solvents are some of the ingredients of a green building approach. Not only will the workplace be physically healthier, bringing in nature has been shown to have measurable psychological benefits, as well, that translate directly into greater workplace productivity.

 

Even workplaces that don't suffer from full-blown cases of SBS can benefit from building green.

With energy costs skyrocketing, business owners are looking for new ways to reduce their

electricity consumption. Converting lighting systems to high efficiency fluorescents reduce power costs; in fact, by increasing the amount of natural daylight in the workplace, daytime use of artificial lights can often be eliminated entirely.

 

In his book, Thomas Davenport notes that there is lot said about the topic of knowledge worker

performance, but not much actually known. As a result of his study, he says he now knows that the introduction of new or renovated workspaces is often the catalyst for new ways of working. More than simply faddish decoration, what might be called 'Smart Office Design' has a measurable positive impact on productivity. Well-designed smart offices - ones that consider the eight factors noted above - are healthier to work in, more economical to run, encourage more interaction, attract top candidates to want to work there, and help to promote a more collaborative business culture in general. Companies with poorly designed workplaces - ones that are not addressing these eight lessons - are simply not reaching their maximum potential.

 

Paul Rosenblatt AIA is the Principal of SPRINGBOARD Architecture Communication Design LLC, a full-service architecture and planning firm that can help make your company's workplace smarter.

 

He can reached by email at paul@springboarddesign.net or by phone at 412 390 4040.

 
Why Not Laugh...
Pudding 

An Essential Key to Your Business Growth, A Motivational Message!

by Jerry Stein

A lot of people think Motivational Speaking means that some overly peppy guru spouts off idealistic clichs. Yet the heart of a CEOs charisma comes from the ability to deliver a message, be it to one person or to a group of many, with a high energy level that connects with the hearts of individuals in the company.

An important characteristic of motivational leadership is the ability to see the talent and genius in others, in such a way that they see it in themselves. Professional motivational speakers can relate stories that are consistent with this line of thought. They present a relatively unbiased perspective on life that is supportive of the companys preferred course of action.

More and more marketers realize that motivational speaking is a largely untapped resource for the promotion of businesses worldwide. Its a simple concept which is largely underestimated for the potential to exponentially enhance the productivity of any business, at any step.

Motivational speaking reminds people why work is rewarding and exciting. It inspires people to remember why they chose their field of work in the first place, and what they can do while honoring their passion. A gifted motivational speaker gives his audience the will to develop their Own Voice that might lose in the company.

Motivational Speaking does not operate on the principle of instruction. The speaker asks specific questions and uses personal references to appeal to the inner initiative of the audience. Nothing could be a more effective tool for expansive change and a desire for growth than harvesting the dreams, passions, and talents from within your current staff!

Leadership training typically includes a variation of coaching in the realm of public speaking. People in positions of executive power need to be able to effectively communicate with many employees at one time: Effectively Communicate being the operative term. Leadership development takes time and patience, and no leader should feel they are above improvement when it comes to effective communication.

Any company's future depends on the work force behind their goals, their desire to excel, and the clarity of communication. People will listen when the administration speaks but do they really hear? Is the meat of what you tell your staff getting lost in translation?

Personal executive coaching supports the potential of executives in their quests to be effective speakers. Motivational speakers provide results with the use of humor, drama, allegory, and other tactics. It is valuable for the administration to be well-versed in motivational open speaking for the sake of the staff. It has also been proven that inviting experienced speakers from other industries has a profound impact on perspective shifts within a company.

Executive training can make this a truth for any people who are willing to learn from others. Dont miss out on the extraordinary benefits motivational speaking can have on your company! Outside forces have the power to effect, but inside forces have the power to transform. Motivational speaking moves people to take action from the inside out, by illuminating the strength of their proceedings. An excellently delivered speech can rocket-boost morale, increase productivity by landslides, and inspire employees to consider their own value and place in the field.


About the Author:
Jerry Stein is CEO of The Executive Roundtable. Jerry is the motivational speaking and corporate coaching columnist for The Atlanta Jewish Times. Jerry also provides executive training to CEOs and company leaders through inspired leadership and motivation. The Executive Roundtable, www.theexecutiveroundtable.com , 3401 Northside Parkway Atlanta Georgia , 30327 Ph: (770) 998-0500

Article Source: http://www.reprint-content.com

 
Jeff Canter
Step 1 Management Services LLC
412-216-0842
 
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