For some, it has been a very good year; for others – well, I’m sure they hope it won’t be repeated!

2012 has been forecast by many to be a very significant year, internationally, from a business point of view.  Some years back, I read a prophetic view by Robert Kiyosaki – the author of the Rich Dad, Poor Dad books – that 2012 would bring a worldwide, major financial collapse.  There have been a number of other such prophecies subsequently, basically confirming this view – most of which have been based on the imminent ‘coming-of-age’ of the so-called ‘baby boomers’ – the generation of post-second-world-war people who are now reaching retirement age, and who will be wanting their money!

When one reads of the growing problems faced by the European community, and not least, the spiralling debt problems in the USA, then it seems like 2012 could well be very challenging indeed.

Here in South Africa we have our own issues – not least of which is probably the highest official unemployment rate in the developing world – and something which I don’t believe is going to get better.  Certainly not as long as our labour laws, and the combative stance of the trade union movement (and the foolish posturing of certain political figures), continues to alienate both local and international investors.  Business confidence has been declining for some time now.

However, before you all start passing the revolver around, it’s not all doom and gloom.  Business is really what we make of it – it’s all about people; our needs, our dreams, our relationships.  South Africans have always been innovative and great at adapting to circumstances.  I do believe that next year we’re going to have to be ‘on our toes’, if we’re going to stay ahead. And, perhaps in the few weeks ahead – the time when traditionally we take a well-earned break from all our hard work – we can give thought to some of the things we can do to be at the cutting edge of our respective industries?

It would be a good time to review what’s happened, what’s missing, and what’s next! And then start writing down some plans of action for early in the year.

I would like to take this opportunity to thank my team for all they’ve accomplished this year – there would simply be no business if it wasn’t for them.  Then, on behalf of the team, I would like to thank all our clients and suppliers for their continued support.  It’s not just about what we are able do for each other – it’s also about what we have learned to mean to each other!

I trust that each and every one of you will have a blessed and peaceful holiday season – a time with family; a time to rest and a time to reflect – and I look forward to continuing in 2012, to make it the best year yet!

From a business point of view, it’s been a very interesting time.

As many of you know, Finserv is continuing with its base in Pietermaritzburg, and all our accounting and income tax services are very well supported by staff up there. In addition, the business coaching and management service is also ably provided by our Business Buddies team of Stuart Holliday, Anley John and Mark Allen – also in Pietermaritzburg. I’m hoping to expand our operation down here in the Cape, while maintaining relationship with my many clients – some of whom I’ve worked with for over 10 years – via our modern-day communications network: the Internet (mainly) and cell phones. It’s this latter change which has proven to be the most interesting!

Firstly, I’ve discovered that you no longer need Telkom to do business in South Africa. And just as well! I contacted them at the beginning of May to advise them of my move, and that I needed a transfer of service from Hilton to Montagu. (The service included a broadband internet service and a landline). They told me that I had applied too early, but that they would process the application, saying that I would only hear from them nearer the time. At the end of May I called again – and remember, you have to physically go to their Telkom Direct offices since they don’t advertise a landline number on the their web site! I was told that my application was being processed. At the end of June – two days before I moved town – and now fairly concerned since I needed this connect-ability once I got here to Montagu – I was once again told that the status of application was – and wait for it: – “solving”. However, I was told that they would phone me (on my cell phone) and let me know what was happening.

Well, to cut a long story short – it’s now a month later. I haven’t heard from anyone. I’ve been in to their Telkom Direct office in Worcester who also promised to call me and let me know what has happening (because it seems their computer can’t really tell them what the problem is!) – and needless to say, I’ve heard nothing. Wonderful being a monopoly isn’t it?
Anyway – I’ve managed to get a great internet connection through a local service provider (wireless and fast), and got to know my cell phone a lot better. I’ve experimented with Skype Video and GoToMeeting, by having a few ‘conference’ calls with clients, and found they work quite well. I’m hoping to have direct access to my Pietermaritzburg server soon, and will then be able to work on line almost as effectively as the staff in the main office. The wonders of modern technology!

Talking about modern technology – it’s not always that great!

One thing I really hate is the automatic answering services, both on the phone and the internet. Whenever you phone a certain firm, you get asked by a ‘canned’ voice to press a certain number for a certain service. Once you’ve gone through this, you get to speak to a person, who has written greeting and good-bye message to read out while you wait (patiently, hopefully). If you are unable to get your query/problem sorted out, you may have to go through the whole process again, only to find that you never get to speak to the same person twice. This means that you have to go through the whole rigmarole all over again. Now, let’s remember that this ‘service’ has been designed to save time and take the load off switchboard operators. But what about clients time that gets wasted?
My biggest issue at present is with Cell C. (and if you google “cellC complaints” you’ll see I’m not the only one). I took out a 3G contract with them over six months ago. It was on one of their ‘special’ deals advertised at R149 per month. I went in to their shop in the Liberty Midlands mall in Pietermaritzburg (where the service is appalling and the staff anything but friendly), and after filling in the necessary forms was told that they didn’t have ‘stock’ of this special! Which meant that I had to go back there a few days later. All was fine until the first month’s billing, when I discovered that I was being charged a full R100 a month more than advertised. I have phoned them; I have contacted their customer services email address – and guess what? I get this idiotic automatic answering service. I have now been asked to send them a copy of my 3G contract on three occasions (it seems they don’t keep copies), obviously to three different people in customer services. When nothing happens, I contact them again, only to be asked for the same information. Well, I haven’t been able to follow up recently because of my move, but I will be putting a stop payment on my debit order shortly, and hopefully they will sue me. Perhaps Carte Blanche would like to do an expose of this appalling service provider?

In spite of this – I’ve been encouraged by the attitude of business people down here, even though it’s a lot more laid back than in Pietermaritzburg or Durban. Nothing has been too much trouble. The quality of workmanship has been great and so has the attitude of the general workers. I’m looking forward to working with local business quite soon. And – my Afrikaans is improving by the day (it really got rusty in Pietermaritzburg)!

I’m building a house down in Montagu, at the gateway to the little Karoo, and intending to move down there at the end of June. So I decided to drive down for the two week period and check on development. It was the first time I’d seen the house, so I was a little anxious at what I would find.

Fortunately, I have a builder who takes a pride in what he does, and who is highly regarded as a man of integrity in the area. I don’t think its unkind to say that the building industry has more than its fair share of dodgy characters, but in many ways, I was so pleased to see that quality work and good service is still highly valued down in the Breede River valley.

The building material suppliers, AH Marais & Seun, have been an inspiration. Their employees have been very helpful, going out of their way to assist, even when we couldn’t make up our minds about colour and quantity etc., and their prices – while not the cheapest around – were no rip-off either. I would easily recommend them. No wonder the family business has been around for such a long time.

When I consider too, that the only communication I had with the builder – up until I saw him – was by email and phone; the work done was almost all done to specification. There’s quite a bit to do still, but I have no doubt it will be completed on time and within budget. Well done Roy and Bonnieview Builders!

Just before we called on the house, my wife and I decided to spend a few days in Hermanus. Just some ‘chilling’ time together!

While driving around one day I experienced something I never believed possible – my Subaru Forester started giving trouble! Five years old and never missed a beat and here she was, coughing and spluttering on me! I pulled over at the Stanford Garage, where a kind mechanic pulled and prodded for a while, before going off to phone the agents in Somerset West. As is usual with most modern cars, not just anyone can fix them without a computer, so this very helpful young man suggested I take a drive to Somerset West to get it sorted out. We managed to get there alright – it was just cutting out on me whenever I stopped, – so with some judicious use of the clutch and handbrake, we pulled into the agents premises. We were well taken care of while we waited, and then were handed back our trusty ‘steed’ with an ‘all-in-order’ slap on the fender!

Why this story? Well, the mechanic in Stanford wouldn’t hear of being paid for the time he spent under the bonnet of the car, or on the phone to the agents; and in their usual Subaru agent fashion, our car was repaired and a few days later, someone phoned to see if everything was going alright. I felt like I was dreaming and had gone back in time some 40 years, to the days when service and care really meant something.

Well done you guys! Sweating the small stuff like this is what reaps dividends later on. Small business is alive and well and flourishing down in the Cape.

In 1953, well before the information revolution seized the planet, philosopher Isaiah Berlin divided thinkers into two basic categories: the fox and the hedgehog. The difference is that hedgehogs know ‘one big thing’ whilst foxes know ‘many things’. A hedgehog will focus on one overriding idea whilst the fox darts from one thing to another, gathering multiple ideas and finding inspiration from a variety of sources.

Today’s array of social and information technologies dictate that we act more like foxes than hedgehogs. We all increasingly – and to various degrees, browse and scavenge for information, news and connections, be that through smart-phones or any one of a number of devices available. All this is forcing a new way of thinking on the majority of people who live and function in the connected world. There will always be a need for the hedgehog but it is the fox that is increasingly dominating the territory and as such, hedgehogs should rightly fear the foxes. At a State or collective level, the activity and dexterity of the fox serves as a threat to the very ideology of hedgehog thinking, as seen in the recent events that have unfolded in Egypt and that have been played out in front of a live-global audience.

In this world that is continually morphing and changing before our very eyes, adaptive intelligence will be essential at both a personal and communal level. Allied to adaptive intelligence will be the need to think and behave like a fox. Translating that thinking mindset into engagement with the multiple technologies at our disposal is something that is natural for Gen X and Y but will require some work for those of an older vintage. For those battling with this transition in the face of what seems like overwhelming information overload it might help to take to heart what Clay Shirkley said, “It is not information overload – its filter failure”.

The need then is to develop good filters in order to maximize the available information and cultivate the practice of fox-thinking. This is will be one of the major leadership challenges going forward.

If you would like to find someone to blame for this information flood other than Bill Gates, you might consider Dr. Claude Shannon. Shannon was a mathematician and the pioneer of modern information theory, having been educated at the University of Michigan and MIT. In 1949, he and Dr. Warren Weaver co-wrote The Mathematical Theory of Communication, which many consider the cornerstone of modern in¬formation theory. Weaver wrote his portion with less mathematics and condensed Shannon’s formulae into three components:

1. Technical (“Did you hear me?”),

2. Semantic (“Did you understand me?”), and

3. Behavioral (“What will you do? “)

These three components can serve as helpful filters when it comes to accessing and using information. Certainly we cannot rely on the wisdom that has got us here to be the wisdom that gets us to where we need to be. Developing fox-like instincts will require work for the vast majority of those leading in the new world of work.

I like this idea of filter failure!  In many ways, I guess I’ve struggled with this.  Sometimes I almost feel like I’ve lost out growing up and I need to absorb as much of this information as possible, until I reach overload.  I wrote recently about “the one thing” referring to that classic movie ‘City Slickers’.  I suppose one could say that I was suggesting we all become hedgehogs, but that’s not the case.  Hedgehogs only KNOW one thing.  No, I’m suggesting that we become foxes, KNOWING MANY things, but through this process of filtering, become focussed on doing things right – one at a time, and then making sure that it’s the right thing!

Elephant Rock lodge in the Nambiti conservancy, just outside Ladysmith is one such place. It takes a maximum of ten guests in beautfiully appointed stone-under-thatch chalets, overlooking a waterhole. It just so happened that we were the only two guests there for the three days. The staff of the lodge were attentive and knowledgeable – and I had the sense that it didn’t matter that we were the only guests; I think they treat all their guests that way. We were treated to two game drives each day in an open Landcruiser and I managed to get some great pictures of the animals we saw. Many might say, “yes, but those private lodges are too expensive for the average South African!” And, I guess that would normally be correct. However, we managed to book our stay on a ‘special’ rate – which you can ask for, and when I worked out that it would include all food and transport, and our own personal guide; and compared the rates to that being charged by Ezemvelo, for instance – where you have to provide your own food and drive yourself (unless you pay a lot extra) – it was really worth it.

The point of this article, however, is not just to give Elephant Rock Lodge a send-up, but to highlight the fact that it was the people who worked there that made the difference. If the lodge had been full, I can imagine the staff would have had to be at the top of their game. Having only two people – and easy-going ones at that – to care for was probably a breeze for them. Yet, we felt they were always giving of their best, and nothing was too much trouble to them. Clearly, they were passionate about the bush and about the animals, and about their lifestyle. I have no doubt that their remuneration – relative to the hours they have to work – leaves a lot to be desired, but without them, we would not have enjoyed our stay nearly as much. You can have a great business and a great product, but if your people are not engaged, you’ll soon have nothing.

If we get another chance, we’ll be going back!

 The reasons for this are perfectly understandable – wages for general workers are simply not enough to meet the high cost of living today. South Africa’s history of job discrimination, and the whole apartheid system, has also meant that wages have been coming off a very low base.  Trade Unions are looking for increases way beyond the official inflation rate, and generally speaking, business owners and economists are saying that’s unreasonable.  And on the one hand I agree with them – after all, how does business absorb such monumental increases in labour cost without passing it on to the consumer (which will affect the inflation rate again!)?  On the other hand, a 20% annual increment in a wage that’s already historically too low for anyone to live off, is hardly asking too much, is it?

So, – somewhere between the two, both employee representatives and business – and as a result, the average man-in-the-street, – are going to have to come to some sort of compromise on this matter.  Yes, the average general worker needs more money to live on – just to make the basic ends meet!  And yes, the business owner simply cannot absorb such increases and still remain competitive in a global market.  Well, I have some suggestions to consider…

PAY WHAT THE JOB’S WORTH!

This is a really touchy subject – for both employers and employees – and there’s good reason!  In many cases, unscrupulous employers pay desperate employees way below their worth.  Also in many cases, employees with very little ambition and almost as much interest, continue to demand annual increase after annual increase, for doing the same job, year after painful year.  I believe that this status quo really has to stop, especially if businesses want to grow, and want their employees to grow with them.

WHAT ABOUT THOSE EMPLOYERS?

A great majority of employers pay their staff according to what the market dictates.  They will phone a personnel consulting firm in their local city, and establish a bench mark for a certain job profile, and then look around for someone who is willing to work for that salary each month.  This is weird because the market in Johannesburg is different to that in Durban, and that in Cape Town.  Yet the job function may be exactly the same in each of those three cities.  What I’m usually told is that the cost of living in Johannesburg is so much higher than Durban, and that’s why the salaries are higher.  Or, – I’m told that there’s a greater demand in Johannesburg; that it’s simple economics – the law of supply and demand.  And the best one yet, – people will accept less to work in Cape Town because it’s a nicer place to live.  Now, all those things may be true, but that doesn’t mean the job is any different; and this applies particularly to those large national companies with branches all over the place.

On a very simple level, let me relate a personal experience.  I remember an incident many years ago when a neighbour offered to share the services of his gardener with me.  When he told me this he added, “Please don’t pay him more than Rx per day, otherwise it will affect everyone he works for.” At first I complied because I really didn’t know how this gardener would turn out.  Later on, however, I determined to pay him much more, – and for one simple reason – he was worth it!  And by that, I don’t mean that he was a better gardener than I expected, I mean he was worth it to me!

I calculated what it would cost me to mow my own lawn in terms of time and effort and it was significantly greater than what I was paying the gardener.  After all, it would use up my own valuable weekend time (which I have to say nowadays I guard very selfishly and very carefully), and it would also create the additional stress of being aware, each day through the week, that the job needs doing. 

In addition, by using his services it was freeing up my time to generate income at a far greater rate than his actual cost.  I had determined that he was part of my income-generating team, and on that basis alone, I was going to look after him!

The old adage of “fair pay for fair work” comes to mind. There are also two biblical reprimands to be considered in this regard:

“How terrible it will be for one who builds his palace by doing evil, who cheats people so he can build its upper rooms.  He makes his own people work for nothing and does not pay them. (Jeremiah 22:13),

And

“The pay you did not give the workers who mowed your fields cries out against you, and the cries of the workers have been heard by the Lord Almighty.” (James 5:4)

If you’re not a Christian, you may say, “What’s that got to do with me?”  Well, I happen to believe that regardless of what your belief system is, there is a universal principle inherent in those warnings.  I believe this because I have seen the results of this kind of blatant exploitation, and it goes under the heading of “you will reap what you sow”.  I have often come across someone who pays his workers poorly, and then wonders why he struggles to collect debt due to him; or wonders why every job he does is problematic; or why his vehicle breaks down just when he needs it.  Call it poetic justice if you like….!!

Employees need to know that they are valued, and (sadly) there is no better way to demonstrate this than through the pay-packet.

WHAT ABOUT THOSE EMPLOYEES?

I recently heard someone say that he values the loyalty of his employees over everything else.  The question I felt I should ask is this: “how do you know that employee is loyal?”  Is it because he has worked for you for ten years and never missed a day on the job?  Is it because he wears the company T-Shirt?  Or, is it simply because he doesn’t know much else, and every month he gets his salary paid into his account, and every year he gets an annual bonus and an increase?  Now don’t get me wrong – I’m not suggesting it’s either one or the other; an employee could really be loyal and also happy to be regularly paid, but I’m also not naïve enough to think that an employee will stay on if he’s offered a better job with higher pay somewhere else. (Generally speaking, of course!)

So, someone could start working for you today as a general worker and be earning R5000 per month.  In ten years time, with an average annual increment of some 10% (about 4% above the current official inflation rate), this person will be earning nearly R13000 per month – still as a general worker, and because he is now ten years older, is probably doing less work than he was doing before.  In fact, when one looks at this example, over the ten year period, one can see that this particular worker would have cost his employer R213,000 extra for doing the same job.

This is simply untenable, especially now that we are part of the global economy, and in the global economy, wages are paid for the job, and not for the period of service of the employee.     

But, how do we overcome this problem?  In my father’s generation, it wasn’t unheard of for employees to work for a business for anything up to fifty years.  A worker would leave school at the age of 16 and have one job until he retired at 65.  This is almost unheard of today (though I do know of one at Rawdon’s Hotel in Nottingham Road, who’s been there for over 50 years!).  Nowadays, I believe the average period of service for many employees, in the global western economy, is about eighteen months!  There are two reasons – workers know that to advance in their careers, they need to be constantly improving in what they do, and who they do it for; and secondly, – employers don’t want them hanging around doing the same old job for too long.  It sounds terribly mercenary, but it’s a reality!

I do believe that all future employment contracts should clearly state that the remuneration offered to an employee is tailored to the job profile, and that it will only be subject to annual increments at the CPIX incremental rate. (there are obviously other issues to consider, though I won’t go into those now.)

The onus is therefore on the employee to improve him/herself, if they want to earn more income.  However, I would also encourage employers to identify those employees that show promise and a desire to improve – don’t leave potential star performers to find their own way; get alongside them and push them to greater hieghts – it can only benefit your business at the same time.

There’s a Proverb which states that “without vision the people perish.”  Another way of putting it is that without vision, without goals, people cast off restraint; they become de-motivated, unfocused and haphazard in everything they do.  

 There is nothing more de-motivating for employees than not knowing where your business is going or what part they have to play in it.

Why is vision so important? And if it really is, how do we go about clarifying what the vision for our own organisation is?  Thomas Watson, the former CEO of the IBM Corporation said this:

 “Consider any great organisation– one that has lasted over the years – and I think you will find that it owes its resiliency to the power of what we call beliefs, and the appeal these beliefs have for people… The basic philosophy, spirit and drive of an organisation have far more to do with its achievements than resources, structure, innovation and timing.”

 In their excellent book entitled “Beyond Entrepreneurship” by James Collins and William Lazier, they spell out the four primary benefits of a corporate vision:

• It forms the basis of extraordinary human effort. – Its our nature to respond to values, ideals, dreams and challenges, and we want to work at something we can believe in, and that has meaning. It’s called motive!
• It provides a context for strategic and tactical decisions. – Its so that people at all levels can make decisions and can share in them.
• Shared vision creates cohesion, teamwork, and community.  Give a group of people a compass and a destination point; turn them loose in the mountains and they’ll probably find their way. Organisations without a shared aim have no context and their people wander aimlessly in the side canyons and take detours to nowhere.  Without shared vision, any organisation can easily degenerate into factions.
• It lays the groundwork for the organisation to evolve past dependence on a few key individuals. To begin with, vision comes directly from the organisation’s early leaders. Afterwards, it must become shared as a community and become identified primarily with the organisation rather than with certain individuals running it.

 Vision Framework

 There are many different ways of approaching the concepts of “vision”, and I’ve heard people debate the definition of “vision” over that of “mission”.  Quite frankly, I don’t think it really matters as long as you, as the leader, are clear about where your organisation is going. 

And by that, I mean “a dream”, a “view”, and a “picture” of what it could possibly become at some stage in the future.  Stephen Covey refers to the concept as “beginning with the end in mind”.

Engaging your employees in your strategic objective

The intangible, but highly influential, experiences of free expression, self-sufficiency, and creative control are what drive many people to want to contribute something within business.  This generally just as true for employees as it is for the business owners themselves.

Obviously, as the business owner, you have a unique stake in the success or failure of your business because it is tied to you as an individual. As such, you are willing to struggle through the tough times while maintaining your excitement – hopefully – as you create a vision for the future.

Creating this future vision is vital.  And its not just to have something to pin up on your wall somewhere – its got to be “the end in mind” – as you clearly see it.  Setting your heart and mind to this objective is an entrepreneurial exercise that forces you to describe with conviction what your business is all about. You, as the leader, must be clear about where you want the business to go, and what it will look and feel like when your vision is realized. Why is this concept so important? Because you are not on this journey alone. Your employees will also require this level of clarity if they are to commit to going there with you.

Your People Strategy

After developing a strategic objective for your business, you are then faced with the task of taking it to the next level.

This includes communicating your vision to, and getting buy-in from, all of your employees.

The challenge? As employees, they will not have the same relationship to the business as you do, and will therefore naturally lack the inherent personal connection that drives you.

So how do you motivate them to take a personal interest in, and ownership of, the goals and objectives presented in your strategic objective? The answer is twofold:

• you must really try to understand their needs, and then
• position the opportunities within your business such that it touches them on a personal level.

 What Employees Want

 Any business has the potential to be a source of personal satisfaction for the people that meet and work there. And your business is not exempt from this important aspect, no matter how it functions, or the training it provides.

Take a step back and think about it from an employees’ perspective – would you want to work for your business? Wouldn’t you want to know such things as whether:

• personal and intellectual growth opportunities were available; whether
• other employees were proud to be there; and
• how the business is known and understood by its peers, the city its in, or for the services it provides in that community?

Think back on your own work experiences: How did you feel when you worked for a business that you truly believed in? And what was it like to work in a business that simply expected it of you as your bounden duty? Believe it or not – the bottom line for most employees is not just about being there, it’s also about personal fulfillment and growth.

Fulfilling Needs, Reaching Goals

In order to engage your employees in your Strategic Objective, you must concentrate on their needs and find something about the business that will provide personal satisfaction for them.

Maybe it will be in the various systems that you have created, or your unique business culture, or the exciting projects they are assigned based on their particular skill sets. Take the opportunity to find out more about them as individuals, and what drives them, what turns them off. Then review your Strategic Objective and make sure you have created opportunities that will attract the right people.

Remember, the business must not only serve you. In order for it to be truly amazing, it also must serve those who work in it. Engaging employees in your Strategic Objective should be seen as an important, strategic, and necessary task to successfully reach your goals.

Tom Chappell, founder of Tom’s of Maine, a highly profitable company in the USA, explained this: 

“Quantitative goals can’t invest purpose in a process that has none.  The quest simply for more of anything is inherently unsatisfying.  If there is no point of joy in what you are doing, or if you lose sight of the point, then just measuring your progress can’t make it worthwhile or fun.  If I can organize people around purpose, that is the most powerful form of leadership.”

Having a purpose that is greater than yourself will give you a constant impteus to strive.  Purpose gives life meaning and helps us to direct and focus our talents and efforts.  It also attracts the talents and energies of others whose purposes align with our own.

" Only 3% of all people have goals and plans and write them down.  10% more have goals and plans, but keep them in their heads.  The rest ‑ 87% ‑ drift through life without definite goals and plans.  They do not know where they are going and others dictate to them." (Glenn Bland)

If we examine these statistics further we find that the 3% group accomplish 50 to 100 times more during their life than the 10% group.

Its been established that the reasons most people don’t set goals and establish plans are:

• They don’t know how;
•  Its too much trouble.
• They don’t have faith in their goals and plans after they are developed.
•  They begin on a long‑range basis and this prevents them from seeing immediate results, so they become discouraged.

Most of the businesses that I have worked in and with, and most of the individuals that I have had opportunity to help, over the last 35 years, have lived their lives drifting between the 10% and the 87% groups.  Goals and plans are rarely allocated the time they justly deserve. 

Goals and plans can become a reality.  There is even biblical precedent for this:

"Write down the vision; write it clearly on clay tablets so whoever reads it can run to tell others.  It is not yet time for the message to come true but that time is coming soon; the message will come true.  It may seem like a long time but be patient and wait for it, because it will surely come; it will not be delayed." (Habakkuk 2:2‑3) (emphasis mine!).

Once you are clear on the vision you have for your business, you need to share it with your employees.  And then write that vision down, clearly, so that everyone you relate with, and to, will know what you’re aiming at, and generally will support you in achieving it.  In this way, the statement of clear intent exercises a subliminal influence on all who work there.

What is more, your employees will be given the opportunity to buy in to your vision for your business and they should then be encouraged to create their own set of goals and plans within that overall vision.

Then keep them updated and informed! Keep encouraging them as you see them grow.  Remember, – they’re part of the team and the team can only win if they’re playing on the same field! 

In surveys carried out on the worlds top companies, it was discovered that almost without exception, CEO’s spent more time on envisioning their employees than anything else.

Whether you like it or not, your employees watch you; they’ll even start adopting your little quirks – sometimes even using the words (and epithets) you use.  If you’re living your vision, they’ll soon be doing the same.

Stuart Holliday has joined the team as a business coach. He has worked for a number of privately owned companies over the past 30 years, and has been involved in manufacturing, costing, marketing, selling and general management. Stuart has a particular ability to create structure where there is none (and where it is needed), and to re-engineer structure and systems where appropriate. He is a great encourager, and loves challenging people to be the best they can be. Stuart’s going to particularly effective in our new Business Buddies and Business Nursery divisions of the business, and is looking forward to connecting with many of his business associates in this new venture.  We thrilled to have him on board and wish him everything of the best in his endeavours.

 In an article by Jill Hamlyn (MD of The People Business), published in Business Day some years ago, she said this:

“MISERABLE employees are a danger to your business. Making them happy helps to equip your enterprise for almost anything that the market throws at it.”

 She goes on to recommend that all business owners, managers, follow what she calls her “10 Commandments” for establishing an environment in which people thrive.  They’re relevant to this series, so I’m taking the liberty of highlighting them:

• Thou shalt not lie

Do not lie to your employees, clients or customers, or expect your employees to collude in lies. Professionalism demands that company and employee present a united front, and professional employees will strive to keep a neutral face when confronted by clients promised one thing but delivered another. When one lie follows another, though, honest employees get uncomfortable and sooner or later, the truth will come out. If you have a culture of lying in your business, you will need to keep checking your back for knives: it stands to reason that your employees and clients may be as dishonest as you are, but with a different agenda.

It is vital to create an atmosphere of trust within the organisation, particularly when times are tough.  Inevitably, when businesses are distressed, owners tend to become very secretive and non-communicative at the best of times.  This creates wrong impressions in the minds of employees and eventually it leads to an “us and them” attitude.  Lying to your employees will only make matters even worse.  I personally believe that transparency and honesty pays huge dividends when the chips are down, and you don’t have to waste valuable time trying to paper over the cracks.

• Thou shalt not be greedy

Greediness is disparaged, and greedy people are even more so. Money-making at the expense of good service and good people is a one-way ticket to failure. Greed is closely related to exploitation, and few people with alternatives will stand for it.

When a company is struggling financially, and people are being laid off, small business owners have got to set an example by cutting their own drawings “to the bone”, before any other expense.  Many small business owners haven’t yet graduated from the employee mentality.  They still expect a monthly salary like everyone else.  The last thing you should be doing is continuing to live a profilgate lifestyle when everyone around you knows the business can’t afford it; and they’re more than likely subsidising it.

• Know thy staff

In a company of 1 000 people, the CEO cannot be expected to know everyone. But as the MD of a company of 50, you have no excuse. You should know who they are, how they got there and the details of their contracts. Those who perceive that they are unknown and uncared for, will leave. A high staff turnover leads to an unstable company and a high client turnover.

In small to medium sized businesses there should be no excuse for not knowing your employees – where they live, whether they’re married or single; how many children they have; as well as their health and well-being.  You may disocover aspirations and latent talents in the process that can only benefit your business in the longer term.

• Thou shalt not upbraid openly

If an employee has done wrong and must be confronted, take the dressing down behind closed doors. Doing it in front of other employees or clients is embarrassing for the client, and breeds fear and resentment in all employees. Resentful, angry and fearful employees will quit, and the reputation it will earn you as an employer will be damaging.

The pressure faced by business-owners when their businesses are in distress is considerable.  It is almost understandable then, that there will be more ‘heated’ exchanges than normal.  However, breeding fear and resentment amongst your employees is the last thing you want when you need their commitment!  There can be nothing more humiliating than being dressed-down in front of your co-workers, and especially if you don’t deserve it!

•  Thou shalt not divide and rule

 This is closely related to the rule that you should refrain from gossiping about some employees to others. The damage it does to company morale is irreparable, and the damage it does to your authority is worse. And what are they saying about you? Divide-and-rule might have worked as a tactic in the past, but employees are wising up; the result might be a workforce united against you.

Whatever you do, don’t play this game.  In South Africa, where it is particularly difficult to just hire and fire at will because of legislation which protects the worker, don’t try and ‘engineer’ dismissals (constructive dismissal) and use a small issue as the proverbial straw that broke the camel’s back, to get rid of ‘problematic’ employees.  Be consistent; be fair, be transparent and be honest.

• Thou shalt invest in thy staff

 Staff who have been invested in show greater returns than those who have been neglected – they are keen to invest themselves in your business.

This became compulsory in light of the Skills Development Act.  Small business owners tend to avoid this aspect of personnel management because they think it’s going to cost too much, or that they can’t afford to have employees away from work, while they’re being trained.    Well, it needn’t be that way! What employees need is encouragement from you to develop themselves.  Guide them in what courses to take, what books to read, what motivational training aids to listen to – remember, it’s going to help your business in the long run.  A business cannot grow if its employees don’t!

•  Thou shalt take staff seriously

This means that you should not keep them waiting if they have an appointment with you. It means that you should pay them on time, and in full. Take their concerns seriously, and work with them to sort out potential problems. Do not stamp on the initiative of your employees, and respect those who you were wise enough to employ sufficiently to keep them employed.

 Don’t be dismissive of employees’ commitment!  If one of them comes up with an idea, don’t undervalue it with a statement like “it’s more than that..!”  It’s so much better saying, “those are valid comments and worth considering.”  You’re not saying you’re going to accept them, but the employee feels he/she’s been listened to and taken seriously.

• Thou shalt not underestimate the power of employee loyalty

Loyal employees do not leave. They do not have the desire to see your company fail because they like the company and what it stands for. They do not gossip about you to other employees or to clients, friends, enemies, or journalists. They will help prop the door of the cupboard closed as the skeleton inside tries to escape. Disloyal employees – inevitably disloyal as a result of the way they have been treated, or the way they have seen others treated – can wreak enormous damage to any company.

Encourage loyalty all the time – even in the face of severe trial.  If you’ve been consistent over the years of your relationship, you will be pleasantly surprised at the loyalty you engender.  Remember, – people don’t leave companies, they leave people!

• Thou shalt not kill good ideas

Sometimes the best ideas are brought to light by those at the coal face. Those at the bottom or the middle of the hierarchy are able to perceive things differently from those at the top, and can use their experience to put a company head and shoulders above the rest. Listen to them.

This is particularly relevant for businesses in distress.  Often, it’s the ideas from ‘the shop floor’ that can make the difference. Perceptions on the shop floor can be very different from that of management, and it’s very useful to gain some different perspectives.

• Thou shalt support thy staff

If you are on your employees’ side and they know this, they will be confident decision-makers who earn respect. If you do not assure your employees that you are behind them, they will not stick their necks out for you. “

We all know the old saying that the customer is always right!  Even though we know that the customer is not always right!  Well, there’s nothing worse than taking the side of a customer at the expense of an employee, when the customer is clearly wrong.  There is a way to handle a situation like this can be a win-win for everyone.  Listen to the customer and ensure he/she goes away feeling like they’ve been heard.  Do the same with the employee, and let the employee know that you agree with him.  Tell him what you have done with the customer and why.  Never, and I repeat, never tell the employee off in front of the customer, especially if the customer is in the wrong.  It’s wrong, it’s insincere and your employee will never be able to trust you again.

Your employees are actually all you’ve got. If you’re not paying enough attention to them, it’s quite likely you’ll not have a business too much longer.

Before you do anything else, pause for a moment and just think about this, relative to your own business and the way you do things.  Then, I suggest you develop the following leadership habits:

RESPECT THEM AND LET THEM KNOW THEY MATTER!

Bosses with the greatest ability to get top-quality work from their employees operate according to one basic principle:

Most people will perform best if their supervisors assign projects in a way that makes them feel their contribution is important.

This advice may sound like I’m asking owners to start ‘mothering’ their employees, yet many bosses get so caught up in juggling daily crises they lose out on opportunities to put this fundamental knowledge to work.

Everyone wants to know that one’s life has meaning – has purpose.  Everyone has a desire for something greater than what they have accomplished to date.  That is why we adore super heroes, and follow pop-stars; always striving to be better looking, slimmer, faster, taller and brighter than the person we actually see ourselves to be.

I remember an incident many years ago, while working for a construction company, and being troubled by the desperately poor productivity of one particular labourer who had been given the task of digging a large hole, just outside my office.  He was just going through the motions, slowly swinging the pick and loosening the soil; then picking up his shovel and one-by-one emptying shovelfuls into a wheelbarrow until it was full.  He would then – slowly – climb out of the hole and – slowly, lift the wheelbarrow’s handles, and (guess what?) trudge slowly to a ever-growing pile of soil, and would tip the barrow’s contents out, before – slowly trudging back to his hole in the ground. 

After a while, I could no longer concentrate on my own work and made up my mind to go outside and give him a good old-fashioned kick in the butt!  Then, on my purposeful way, I thought to myself, “What if that was me doing that meaningless, tiring, mind-frying work out there?”  And then I realised the answer: I needed to give him some direction, some sense of purpose, so this is how the conversation went:

“What are you doing out here?” I asked.

“Digging a hole!” he replied, as if I was stupid or something!

“Why?” I asked, as if I was still stupid!

“I don’t know! I was just told to do it,” he whined. 

 So I told him to stop what he was doing for a minute and to listen to me.  I then told him,

“We are about to build a large factory building on this property.  The building will be constructed of steel, and the framework will consist of large steel uprights which will need to be anchored on a number of solid concrete foundations.  These foundations will be placed in large holes in the ground.  The first foundation is the most important because it creates the ‘cornerstone’ of the whole building.  You are digging the hole for this foundation.  If this one is not correct, then the building will never get off the ground.  Therefore, my dear friend, the success of this entire project rests on your shoulders (and strong arms and back). 

He looked at me for a few minutes until the import of what I’d said had sunk in.  His eyes visibly brightened, his sagging shoulders squared up, and I’ve never seen a hole dug faster and more carefully since. Well, that’s how I remember it anyway!

The point for him was – it’s not what we do but our attitude to it that matters.  The point for the employer is – people need purpose!  G.K. Chesterton once said, “All men matter. You matter. I matter. It’s the hardest thing in theology to believe.”

Don’t just throw work at your people.  Spend a little time telling them about what they’re doing, why they’re doing it, and how it’s going to contribute to the overall success of the business.  You’ll be surprised what a difference it will make.

MOTIVATING SUGGESTIONS:

 Andrea Nierenberg, head of “The Executive Coach” has these suggestions for motivating employees:

Time your approach. When you’re making a sales pitch, it only makes sense to pick a moment when the client is most receptive. Similarly, introduce employees to new projects when you know they’ll listen best, and they will be more likely to understand the project’s goals and fulfil your expectations.

At a 40-person media buying services company I advise in Chicago, one of the executives supervises two staffers with similar titles. One employee works best in the morning; the other perks up in the afternoon. Two months ago, the executive decided to factor this into the way she dished out assignments. She’d give the "night owl" any projects that would take up most of the afternoon and were due before the close of business, rather than hand them off to the "lark," whose energies were flagging by then. Consequently, she’s found more projects have been turned in on time and with fewer mistakes.

Understand how your employees think. Some of your best staff members may view the world in a way that’s completely different from the way you do. Perhaps they’re highly analytical and you’re creative—or vice versa. By presenting information to them in the way they process it best—and letting them express themselves—you should find they’re more motivated to give you what you need.

At one company where I do management training, one of the supervisors on staff was very analytical. He’d been very successful in bringing in new business by approaching clients with pitches that included charts and graphs to illustrate his points. He was frustrated because he wasn’t able to persuade one of his most talented salespeople to incorporate this approach into his pitches. I recommended my client accompany the salesperson on a sales call but remain silent and see how his subordinate handled the situation. Although the salesperson talked his way through the meeting without using charts and graphs, they got the sale and my client chose to relax his approach. Since then, the salesperson has increased his territory by 20 percent.

Take time to listen. Meet after major projects to find out what worked and what didn’t work for your employees. Listen carefully to their feedback. Not only will it help you find better ways to work in the future, it will give you valuable insights.

At a magazine where I’m doing sales training, a supervisor was upset with a salesperson for losing a piece of vital business. While the salesperson began to explain what went wrong, the manager, instead of listening intently, began to open his mail. Finally, the salesperson said, "It’s really hard for me to explain this to you because you’re not listening." Realizing his employee was correct the boss began asking questions. He soon discovered he hadn’t provided clear instructions. Together, they went back to the client and regained part of the business.”

No boss should tiptoe around employees’ every mood. But by taking time to understand how the individuals on your staff work—and what motivates them—you will be able to increase productivity.  This is particularly important in South Africa, where we are faced with huge disparities in culture, language and race – and all of which will impact on your relationship with your employees.

However….

I can’t finish off this newsletter without first commenting on the impact of the organised labour movement in South Africa – the Trade Unions – and the divisive nature of their activities.

First of all, let me say that I don’t believe there is anything wrong in employees having formal representation.  It’s so much more practical dealing with four or five representatives of an employee body, than it is trying to communicate with a hundred people.

The Trade Union movement in South Africa has historically been a political one – an active member in the struggle against apartheid.  At present, most trade unions are affiliated to one of the larger associations of unions, and the most effective one is COSATU.  This affiliate has aligned itself with two political parties – the ruling ANC and the South African Communist party – both of which grew out of the struggle.  Quite frankly, the alliance is much more important for the unions and for the SACP, for without it, they would have very little representation in the country.  The ANC, in my view, could well do without the idiocy of its smaller partners, but knows that it would rather have them close by where they could control them, than as opponents where they could gain the support of the poorer masses.

Like any political party, the Trade Unions owe their success to their membership, and at present they are on a drive to increase that membership.  The underlying aim is not so that they can better represent workers to corporate South Africa – the aim is to gain power, political power – and through it, to influence government.  This is not what trade unions were meant to be!  These aims are driving a wedge between employees and employers – especially in the small to medium sized business environment.  Employees are made promises that the unions cannot possibly keep, and encouraged not to dialogue with employers without union direction.   In some cases, they are even coerced to join these unions.  Employers are put under more and more pressure to raise wages, and improve working conditions, in most cases, beyond their capacity to do so.

The result – more and more businesses are either automating and laying off workers – or just calling it a day and closing down.  This is especially relevant in the manufacturing industry.

So – what’s the answer?  Well, I believe that employers must keep their heads and not react emotively to this development.  Furthermore, if you’re maintaining good employment practices, treating your employees well, respecting them and let them they matter, and seen to be consistent and fair, I believe, inevitably, the truth will out!  Employees are not stupid, and ultimately, they will get to know who really cares about them.