EXECUSCOPE                May 1992

 

 

 

Discourage Sticky Fingers

 

Employee theft in the United States totals $20 to $40 billion a year. Make sure it doesn't happen to you:

   * Don't be blind. Notice tell-tale signs.

   * Publicize your theft policy. Explain how theft hurts workers and the company. Spell out rules and punish­ments. * Open lines of communication. Show you care. Listen to complaints. Act on safety concerns immediately. If workers feel the firm doesn't care about them, they sometimes feel they don't need to care about the firm.

   * Make as few promises as possible. When promises are broken, workers often rationalize theft.

   * Focus on preventing the problem. Create an atmo­sphere in which employ­ees themselves discourage theft. Try an employee questionnaire on internal security.

   * Let your own integrity set the right tone.--Super­visor's Bulletin.--December 30, 1991, p. 1.

 

 

Businesses Reach Out to Schools

 

Do you have trouble finding workers for entry-level jobs? Would you like public schools to help train employees in basic skills? Businesses across the country are solving this problem by teaming up with schools.

   * In North Carolina, a statewide steering committee of teachers and business people matches the curriculum with workplace needs. Students go to school in the morning and work with train­ing spon­sors on the job in the afternoon.

   * A California bank is piloting a pro­gram in which high school sophomores attend career aware­ness workshops. At 16 they are eligible for a job if they have a 2.0 average, good attendance, and entry-level skills.

   * A New York food chain gives potential dropouts a reason to stay in school: a job at 16 if they have pass­ing grades. The chain also works with teach­ers and par­ents.--Superviso­ry Management, December 1991, p. 8.

  

 

Boost Sales with Better Service

 

To attract and keep customers in these tough times, some firms are raising service standards. They say the key is to find out what your customers really want and then do even better than that. Here are some winning examples:

   * A small plumbing, heating, and air conditioning company boosted revenues from $617,000 in 1988 to $3.2 million in 1991 through a new service policy. In a sur­vey, customers said they were tired of waiting days for a plumber to show up. The company began same-day service as well as around-the-clock service at no extra charge. It follows up by phone to make sure the repairperson arrived on time and met cleanliness and other standards.

   * An irrigation products company hired an independent marketing firm to survey its own and competitors' custom­ers. The company then developed a 10-point cus­tomer satisfac­tion plan that included reducing the turnaround time for re­turned goods from two weeks to two days. It now boasts a higher market share and sales.

   * Another firm made its new after-sales standards work by having workers set the objectives. They also stream­lined the system.--The Service Edge, December 1991, p. 1.

 

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Let a Board Complement Your Talents

 

A well-chosen board of directors or advisors is a big asset, even for smaller companies. A board gives a company fresh thinking. It can complement and supplement your talents. Here are some other advantages to consider:

   * Objectivity. A board of outsiders will tell you what you need to hear rather than what you want to hear. Employees may feel inhibited.

   * New perspectives. A board can suggest creative options and ideas.

   * Inexpensive advice. For between $500 and $1,000 you can tap talent you couldn't afford to have on the payroll. As an incentive, one owner also promised board members one percent of the company for doubling sales.

   * Organizational guidance. ­Many companies founder because of the owner's limita­tions. Often the entrepreneur is better at starting a company than running a company. A board can fill in those gaps.

   * Credibility.  A board evaluates the owner's performance.

   * Raising the value of your company. A board fosters careful planning and objective monitoring of progress.--Entrepre­neur, Decem­ber 1991, p. 46.

  

 

Investing in the Future

 

Managers are now forced to decide whether to invest in research for long-term profits or slash R&D budgets for short-term gains. A Batelle report predicts that overall R&D expenditures in the United States will reach $155.9 billion in 1992, up only 2.8 percent from 1991.

   Industry is expected to fund 51.6 percent of the total research bill, with most of that money going into its own pockets. Industrial support is growing in areas related to electronics, communications, sensors, advanced machinery, and fields needing greater energy efficiency.

   Federal R&D support is expected to increase 2.4 percent, particularly in defense, energy, space, and health and human services. In manufacturing industries, the federal government will support 34 percent of the research.

   In general, industry is reacting to pressure from foreign technological competition by supporting short-term research projects. It is still affect­ed, however, by a concentration on short-term payoffs rather than long-term surviv­al.--Batelle, December 27, 1991, p. 1.

  

  

Can You Take a Suggestion?

 

Listening to your employees' ideas can save you money. Company members of the National Association of Suggestion Systems saved $2.3 billion in one year by adopting workers' ideas. What makes suggestion systems work? Here are some tips from the association's president, Cynthia McCabe:

   * Recognize people for their efforts. Workers appreciate cash, dinners, trips, and other rewards, but what they want most is acknowledge­ment.

   * Involve workers from the beginning. Have them promote and run the program. If your company is unionized, try a joint venture between manage­ment and labor.

   * Keep your program fresh by asking for ideas in specific areas. Feature product quality one month, customer service the next.

   * Encourage teamwork. Firms are using suggestion systems more and more to motivate teams as well as individuals. In fact, a team from American Air­lines won the suggestion association's top award in 1991. The team developed a new security door system for airports that saved the airline $1.5 million.

   For a suggestion system to work, management has to stay involved. "The more you can turn your workers on, the more contributions your people can make, and the more effective and creative they can be," says McCabe.--Behavioral Sciences Newsletter, December 23, 1991, p. 1.

 

 

Lower Your Desk Stress Level

 

An uncluttered desk can improve your job performance as well as reduce the stress that results from dealing with a messy desk. "A messy desk isn't just an eyesore," believes Daniel Stamp, founder of Priority Management in Illinois. "It hinders produc­tivity. And it provides a sublimi­nal message of failure: to the subcon­scious, orderliness is synonymous with success."

   A messy desk can cut one hour of productivity a day and make you feel out of control. Here are some ways to keep your desk clear of notes, messages, and other distractions so that you can focus on the job at hand:

   1. Take everything off your desk, including papers, pens, pencils, in-trays. Find another place for all supplies, magazines, and reference works. Keep your desk clear of every­thing except the project you're working on.

   2. Sort through all documents and either discard or put in one of three hanging files: correspondence, reading, or projects/miscellaneous. Mark on the documents when you want to take action and log them in an organizer.

   3. Write down all appointments in one place. Use a "To Do" list. Consoli­date multiple desk top card files. Alphabetize and file business cards.

   4. Plan a time each day or week to read the mail, reports, publications, and magazines that pile up.--Priority Management Systems, Jan. 20, 1992.

 

 

Double Your Franchising Profits

 

Many happy franchise owners now double their pleasure by buying another franchise. A practice that used to be forbidden is now becoming commonplace following a court decision that threw out certain franchise restrictions.

   Some people are successful with one franchise and branch out by buying a related franchise. The owner of a drive-thru hamburger franchise, for instance, now also owns a chicken franchise that features fast but healthy meals. One Arby's franchisee also owns TCBY yogurt franchis­es. A New England businessman who likes auto racing owns franchises for both Jiffy Lube and Preci­sion Tune car care centers. The owner of several formal wear franchis­es expanded in an unrelated but profitable direction--muffler franchises.

   Entrepreneurs with seasonal franchises often buy other franchises to keep them busy the rest of the year. A Florida man with an income tax service fran­chise, for instance, also markets bookkeeping services to his clients after tax season.--S & S Franchise Marketing Consultants.

 

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Designing an Efficient Office Space

 

Are you moving or renovating? Consider hiring an interior designer before you commit to a new or larger space. Even with a modest budget and limited space, an interi­or design­er can make sure you get a usable area, an efficient layout, and avoid costly mis­takes. Everybody notices bad planning. Good planning often goes unnoticed, but it makes a big difference.  Here are some consider­ations:

   * Traffic patterns. Most designers start by finding out what kind of space each person needs and who communi­cates frequently with whom.

   * Equipment needs. Before you buy furniture, know where you need comput­ers, typewriters, and phones. Make sure equipment can dissipate heat and that airconditioning ducts won't chill workers or blow papers.

   * Office structure. Pay attention to windows to make sure the spacing allows for the size offices you want. If you want a central filing area, make sure the floors will support the heavy load.

   * Furniture trends. Adjustable furniture, sculptured forms, and stylistic variety are popular. Many firms now choose systems furniture modules. Open offices with two or more desks in one room are regaining popularity. There is also a return to the private office.

   * Budget. Recondition existing furniture. Reframe or relight paint­ings or buy inexpensive prints. Perk up offices with plants.

   * Reception area. An attractive door and outer office make a good first impression.--Office Systems '91, December 1991, p. 23.  

 

 

 

Page 2

Forecasts

 

Electronic trading could replace the traditional trading floor within the next decade. Rather than major hubs around the world, the options market will be one large computer network. If you're an option trader, however, don't worry. Automation doesn't mean you'll be out of a job. Trad­ers with know-how will still be valuable.

 

Forget about college if you want your kids to be where the most jobs are. Eight out of 10 jobs with the greatest pro­jected growth require a high school educa­tion or less. The Bureau of Labor Statistics projects that by 2005 the United States will need 2.6 million more retail sales­people, cashiers, jani­tors, maids, waiters, and wait­ress­es. It will need only 1.2 mil­lion more lawyers, doctors, engi­neers, writers, art­ists, and enter­tainers.

 

The U.S. labor force will add 26 million workers by 2005, for a slow growth rate of 1.3 percent a year, according to the Bureau of Labor Statistics. Women's workforce par­ticipa­tion rates will rise from 58 percent to 63 percent in 2005. By then they will make up 47 percent of the work force. Men's participation rate is expected to drop from 76 to 75 percent by 2005. Hispan­ic men, however, are expected to keep their cur­rent high rate of 82 per­cent.

 

 

Page 4

Forecasts

 

 

Part-Timers Popular

 

Contingent workers make up a growing segment of the labor force, accord­ing to a recent study. Small busi­ness­es often choose contract work­ers. They reduce admin­istrative costs as they fill short-term needs. Tempo­rary hires and leased employ­ees are also part of the trend.

 

 

Workers Like Women Bosses

 

Women are just as effective as men in leadership roles. In fact, women are better liked by their under­l­ings, says a Purdue Univer­sity re­searcher. They also tend to be more demo­cratic than men and share deci­sion making with oth­ers.

 

 

Fast Trackers Stay Put

 

Now that a growing number of workers balk at transfers for family rea­sons, companies are exploring new options. Some firms now move the job instead of the employee. Others move managers within a hub area or use special projects to broaden workers' experi­ence. Other firms shorten over­seas assignments or give them to younger employ­ees who are less set­tled. Globaliza­tion means transfers are still im­portant, however. In one survey, two-thirds of the firms said a ma­jority of their senior managers had trans­ferred three or more times.

 

 

Planning Way Ahead

 

Alarmed that ex­isting early-child­hood pro­grams won't produce enough skilled workers or literate consum­ers, companies around the country are step­ping up aid to young chil­dren. They are financ­ing accelerated schools for disad­van­taged children, early-childhood health care and schooling, enriched kindergarten programs, and preschool science.

 

 

Page 4

 

Focus

 

Stay standing and your business meetings will be twice as fast. For maximum effi­ciency, tell people how to pre­pare for a meeting. Then gath­er every­one around a chair-free confer­ence table for 20 minutes.

 

Accidents are costlier than you might think. Indirect costs include time lost by supervisors and people trying to help, equipment damage, failure to fill orders in time, welfare benefit payments, weakened morale, and idle machinery.

 

It's better to ask 10 questions than to do one thing based on an incor­rect assumption. To make sure you're communicating, repeat what people say in your own words and find out if that's what they mean.