Nigel A.L. Brooks

Both the leadership and sales disciplines are about persuading people through influence. Leaders establish direction for others to follow; salespeople persuade prospects to buy. Leaders promote their aspirations to followers; salespeople set directions for prospects to follow. Leaders and salespeople use both imagery and language that convey association, opportunity, incentives, and fear to drive momentum and urgency.

Unless forced, a person will only do something well if they are self-motivated; the word “motivation” means “motion for action.” The word “emotion” is derived from Latin roots meaning “to move.” People are “self-motivated” when they find a reason to do something – the decision is often made emotionally, and then justified rationally.

Leaders have to motivate themselves first, relying on their own instincts, sometimes in uncertain conditions, whereas followers have leaders to inspire them. Using their best influence, leaders establish an environment that enables followers to motivate themselves. However, followers can be leaders too if they can inspire others to achieve results.

When tasks are assigned, leaders have to assess both the competencies and commitment of followers, and qualify them accordingly. If a follower is competent, but not committed, the quality of their work may be substandard. So a leader has to influence the follower to commit to the task so as to achieve quality results.

For all the effort that enterprises expend in research and development, operations, and business development, the costs and expenses are only recovered and profits earned if salespeople close sales to move products and/or services to customers.

Salespeople have to motivate themselves first in order to create an environment that influences others to buy. It can be an uncomfortable feeling to make a cold call, or to promote a new product for which there is no track record. However, salespeople have to meet new prospects and promote new products and/or services on an ongoing basis to keep their pipelines flowing.

Salespeople have to qualify their prospects in terms of authority, desire, and resources to buy – if a prospect is not qualified, the only answer is “no.”

An individual is “casually motivated” when they act regardless of the efforts of others.

To establish an environment that motivates others towards the desired result, leaders and salespeople have to understand the difference between what people need and what they want.

Whereas the needs of individuals tend to be rational, the wants tend to be emotional. For example, a person may need food, but wants a banquet; may need shelter, but wants a mansion; and may need a job, but wants to be boss.

When needs and wants don’t align, influencing people to act through their emotions helps as savvy advertisers know. Using images and words to raise the emotions of followers and prospects can turn a boring task or product into something exciting and compelling. Even the packaging of everyday products can create an emotional spark through the use of images and words that create momentum and urgency.

However, if a person isn’t in the mood or is in a state of denial, then they may not want to act, even though they need to.

A mood is less intense than an emotional state, and is less likely to be influenced by an event or situation.

Denial means that an individual believes a certain condition to be true or false when facts and other information suggest otherwise. Believing that there is a market for their products and/or services, entrepreneurs, executives, and lifestyle business enterprise owners can be in a state of denial when the behavior of prospects suggests otherwise – it’s a function of how long they can withstand the pain. However leading salespeople make markets for products and/or services even when they are playing against the odds. If a person is really self-motivated to make a difference, they will keep trying, even in the face of failure.

Leaders and salespeople use four drivers based upon wants to influence others to achieve results or buy: association, opportunity to gain, incentive, and fear of loss.

Association:

Followers or prospects want to associate with a respected or well sought team or buyer group because they share the same values, attitudes, behaviors, and beliefs:

* Becoming a member of a highly visible team, appointed by top management, and consisting of the perceived “up-and-comers” of the enterprise
* Becoming a member of an elite country club or similar group
* Acquiring products and/or services used by celebrities, such as cars, clothes, electronic gadgets, and gourmet food and beverages
* Acquiring “designer label” products and/or services because they are perceived as stylish and in-vogue

Opportunity to gain:

Followers or prospects want to take advantage of an opportunity for either tangible or intangible benefits:

* Obtaining a job position through which higher compensation can be earned
* Obtaining a job position through which new knowledge, skills, and experiences can be gained
* Acquiring a product and/or service through which new knowledge and skills can be learned
* Acquiring real estate in a neighborhood where property values are appreciating quickly

Incentives:

Followers or prospects want to receive rewards and recognition:

* Receiving additional compensation such as higher salary, bonuses, and commissions
* Receiving awards and citations at “town hall” meetings or in the media
* Receiving discounts or bonus points, such as frequent flyer miles
* Receiving invitations to special events not open to all employees or the general public

Fear of loss:

Followers or prospects fear losing their “want” – the ability to associate, take advantage of an opportunity, or receive an incentive:

* Perceiving that time, space, or inventory are running out, such as for events, trips or products and/or services
* Perceiving that someone less qualified will get the offer or incentive
* Knowing that they are not qualified for the offer, but the leader or salesperson is ignoring that fact, enabling them to have something that they otherwise would not be entitled to
* Knowing that they are not qualified for the “advertised” offer, but the leader or salesperson is offering something which is more achievable or affordable, such as a less demanding position or a less sophisticated product and/or service, without creating an embarrassing situation

Successful leaders and salespeople know how to use imagery and language to influence others through momentum and urgency; the alternative is force.

Using the four drivers of influence to lead and sell are enterpriship (entrepreneurship, leadership, and management) competencies.

…and to assess your enterpriship competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.fromvisiontovalue.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

Aspirational advantage is about building loyal relationships between employee, customer, supplier, and investor constituencies because an enterprise is values-based. Values-based means that stated values and enacted values are consistent. If the values display the notion of trust and integrity, then the enterprise is respected. If the values display the notion of quality, then the enterprise is perceived as predictable and reliable.

When the management of an enterprise communicates aspirational and inspirational messages for values, purpose and direction, others follow.

An aspiration is a dream of a future state. It may be hard or impossible to achieve from the current state of affairs without higher-order effects kicking in.

Higher-order effects are events or situations that could not have been envisioned or anticipated at the beginning of an endeavor, but become apparent as activity proceeds. They provide additional opportunities or threats.

For example, the operator of a cafe learns after opening that it is necessary to establish a high volume catering business unit to help cover the fixed costs of the “on premises” business unit.

Higher order effects make it possible to achieve an aspiration through some activity that seemed unachievable when the endeavor was started. Conversely, higher offer effects can destroy any aspiration or vision from ever being achieved.

For example, continued advances in technology have transformed computers from requiring large air conditioned rooms to fitting in briefcases, with considerably more power and memory than could ever have been imagined when the first machines were developed. Many traditional jobs have disappeared as a consequence.

An aspirational statement is long-term statement of direction, augmented by a near-term vision. An inspirational statement is a highly descriptive and compelling message that impacts mind, body, and soul. A motivational statement communicates the four drivers of influence that create motions for action: association, opportunity to gain, influence, and fear of loss.

Followers are not limited to employees. Customers, suppliers, and investors are attracted too if an enterprise’s aspirational and inspirational statements are influential enough.

A mission is an aspirational and inspirational statement of purpose, supported by a set of high level objectives. A mission statement addresses the core competencies of the enterprise – the activities it performs well.

A vision is an inspirational statement of a future state, which is reasonably achievable, within the context of the longer-term aspiration. Visions have external and internal components. The external component is what a community (local-to-global) can become as a consequence of the enterprise’s activities, and the products and/or services that it offers. The internal component describes what the enterprise itself can become to its employees, customers, suppliers, and investors.

For example, an external vision could be “changing our community, one customer at a time” – the near-term vision could be the in local community; the long-term aspiration could be in the global community. Internal visions could include “best place to work,” and “easy to do business with.”

Strong aspirational, inspirational, and motivational statements define both enterprise and product and/or service brands. A brand is a collection of ideas, symbols, logos, images, tag lines, and slogans that represent a enterprise and its product and/or services. An enterprise can communicate to customers, suppliers, and investors through its brands and associated service marks, and trademarks, if they are memorable and recognizable.

For example, Apple, Inc. has created a strong following among its customers; its logo is memorable and instantly recognizable. HSBC Holdings, plc, defines itself as “the world’s local bank,” and Delta Air Lines, Inc. offers “a world of possibilities.” The customers of Federal Express Corporation called it “Fed Ex,” thus causing a name change to FedEx Corporation. The verb “to fedex” is a proprietary eponym, derived from the corporate name, meaning “to ship a package overnight.”

Customers buy because they want to be associated with brands or earn incentives. Designer brands command loyalty among consumers for quality and perception of lifestyle. Customers, suppliers, and investors want to be associated with enterprises with strong aspirational and inspirational images and messages that suggest sustainability.

For example, Prudential Financial, Inc. uses the “rock” as its logo.

Both suppliers and investors perceive that defaults are less likely with enterprises that have loyal employee and customer bases that can generate and process transactions reliably on an ongoing basis.

Aspirational advantage tightens the fit between an enterprise and its employees, customers, suppliers, and investors. When an enterprise has constituency advantage, its position in the marketplace is strengthened. Constituents are loyal, and are less likely to switch to competitors.

Building aspirational advantage strengthens predictability and reliability, and is an enterpriship (entrepreneurship, leadership, and management) competency.

…and to assess your enterpriship competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.fromvisiontovalue.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

Employers in cafes and restaurants have to address service, safety and security issues in an environment where there is high potential for theft. Therefore, it is important to ask situational based questions to prospective employees that will determine how they will perform in emergencies.

I owned a European-style gourmet cafe and catering business for many years, where service levels, and safety and security considerations were extremely important to me.

I had a steady stream of job applicants, some with prior experience, and some without. It was important to me to learn how candidates would perform in emergency situations, because I knew that everything else could be learned from routine procedures.

The interview began with me asking the candidate to give a one minute overview of themselves, so to become comfortable talking. Then the interview would really start. The candidates came prepared for questions about their prior jobs. They were somewhat surprised that I asked three questions about the future only, and not the past.

Question 1:

“The cafe is moderately busy on the inside and you are behind the cash register. All of a sudden, one of the customers collapses. What would you do?”

The essence of this question is to determine how the candidate would handle a medical emergency. I would expect them to:

* Examine the seriousness of the situation immediately, and call for medical assistance if in doubt
* Ask if there is a doctor on the premises or near by
* Ask the customer what help they need if they are conscious
* Provide bandages if the customer is wounded
* Avoid moving the customer if they are unconscious
* Ensure that others keep away from the scene so as to give the customer privacy
* Understand the dangers of giving unqualified first-aid

Question 2:

“The cafe is moderately busy on the inside and you are behind the cash register. All of a sudden, you detect smoke. What would you do?”

The essence of this question is to determine how the candidate would handle a potential crisis, and apply quick judgment. If there is only a small amount of smoke, then I would expect them to determine if they can put the fire out right away. If there is a large amount of smoke, then I would expect them to evacuate the cafe immediately, and call the fire service. I would expect them to address:

* The cause of the smoke, and the extent to which it is controllable or uncontrollable
* Under what circumstances should the cafe be evacuated or not
* When to call the fire service
* How to use the fire extinguisher
* How to take care of concerned customers

Question 3:

“The cafe is moderately busy on the inside and you are behind the cash register. All of a sudden, someone walks right up to you and asks for the money in the register. What would you do?”

If the candidate didn’t answer with “give them the money,” or something to that effect right away, then it didn’t matter what their answers were to the first two questions. Also, it didn’t matter how otherwise desirable they may be – they were not hired.

In some cases I was asked if the perpetrator had a gun or a knife, to which I told them that they wouldn’t necessarily know. Asking that question automatically eliminated the candidate. I was concerned that in a live situation they would hesitate before acting, making the perpetrator nervous and unpredictable.

I passed on some otherwise good candidates who could not answer these questions to my satisfaction. However, when considering the liabilities of a restauranteur, safety and security are paramount – dead employees and customers are not good for business.

When hiring employees it is useful to understand their individual competencies and personal style characteristics, in addition to your own.

…and to assess your individual competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.individualcompetencies.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

The likelihood of success in both personal and professional situations depends upon knowing your own strengths and weaknesses, knowing what is expected of you, and then being able to adapt accordingly. Understanding your individual competencies, and those of others, is a necessary step to building successful relationships.

Job performance is a function of aptitude, ability, and proficiency. Aptitude determines the suitability of an individual for a role; ability determines their expected quality of performance for an activity; and proficiency defines their level of competence.

Competence is characterized by both knowledge and skills. Every individual has three competency areas to varying degrees:

* Personal
* Professional/technical
* Enterpriship (entrepreneurship, leadership, management)

Personal competencies…

Personal competencies are about who we are, and have both intra-personal and inter-personal components. Intra-personal competencies are about the self. They include the basics of anticipation, aptitude, comprehension, deliberation, preferences, and stress tolerance. Inter-personal competencies include both oral and written communications, and the ability to build relationships with others.

Professional/technical competencies…

The terms “professional” and “technical” can be used broadly or narrowly.

When used broadly, the terms apply to domain knowledge in subject areas, and the accompanying technical skills. Subject areas include both arts and sciences disciplines – business is both an art and a science. Subject areas in business include: legal, finance, human resources, information technology, program management, engineering, operations, and business development. The accompanying technical skills have mental and physiological requirements, depending upon subject area.

When used narrowly, the terms apply to occupations. Professional occupations include accounting, architecture, consulting, law, marketing, medicine, and sales. Technical occupations include construction, engineering, and information technology. These terms are used by government agencies to classify jobs.

Beware of the subject matter expert – an individual who appears knowledgeable, but lacks the technical skills to achieve results. Subject matter experts may do well in interviews, but do not necessarily perform well on the job. Hence, it is important to assess the aptitude, ability, and proficiency of a candidate before hiring, or risk being fooled.

Enterpriship competencies…

Enterpriship competencies relate to the disciplines of entrepreneurship, leadership, and management. These competencies are distinct from professional competencies because they apply in both personal and professional life, and in both community-at-large and workplace settings.

Enterpriship competencies enable value to be earned and results to be achieved. They include transforming innovative ideas into value, setting direction that others will follow, and applying resources to activities to achieve results.

For example, executive directors of charities are faced with the need to find innovative ways to raise funds, to motivate others to contribute, and to manage resources on tight budgets.

For example, designers of electronic equipment have to find innovative ways to cram components into devices, be able to persuade others to use their products, and conserve resources such as batteries.

Playing to strengths and accommodating weaknesses…

When taking on any new responsibility, an individual should compare their competencies to the expected requirements of the assignment, identify the gaps, and take steps to close them accordingly. Competencies can be acquired through experience and training, if an individual is so motivated.

When building a new relationship, an individual should compare their competencies to those of the other person, identify gaps, and explore the synergistic opportunities from working together. This approach is especially beneficial in teamwork, where weaknesses in one team member can be offset by strengths in another.

Inter-personal competencies, and especially effective communications, are perhaps the most important of all. The ability to entertain, inform, convince, persuade, and negotiate with others to get things done is essential – nothing happens in business without people.

Understanding your individual competencies and those of others, so as to play your strengths and accommodate your weaknesses, is essential to success in both personal and professional relationships.

….and to assess your individual competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.individualcompetencies.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

Success in business is as much based upon using inter-personal skills effectively as it is based upon using professional skills. Personal characteristics are specific to each individual, and include preferences regarding the self and relationships with others. Professional characteristics apply to occupation and public life in terms of role, qualifications, competence, and experience.

Success in business is as much based upon using inter-personal skills effectively as it is based upon using professional skills. Personal characteristics are specific to each individual, and include preferences regarding the self and relationships with others. Professional characteristics apply to occupation and public life in terms of role, qualifications, competence, and experience.

Inter-personal characteristics include oral and written communications abilities, and the extent to which an individual is a team player. Individual contributors usually have less developed inter-personal skills than experienced entrepreneurs, leaders, and managers who are able to get things done through others.

A personal style is a set of personality characteristics. Every individual has a personal style profile – specific personality characteristics that determine their preferences.

Definitions of personal styles have been used throughout history by philosophers; modern definitions trace their roots to research work by Swiss psychiatrist Carl Jung. Although there are many themes and variations, basically four personal styles exist:

* Challengers – who appreciate action and adventure
* Causals – who appreciate creativity and relationships
* Stabilizers – who appreciate law and order
* Visionaries – who appreciate innovation and understanding

By understanding how to quickly identify certain key attributes of each personal style, and to recognize them in other people, an individual can quickly relate, build a rapport, and interact with others. Hence, an individual is more likely to appear friendly and be able to influence others. “Relate” means that an individual has similar preferences to another; “rapport” means that an individual can build a relationship with another; and “interact” means that two or more individuals can do things together.

Whereas there are more scientific approaches, two ways exist to quickly identify the personal styles of others. The first is to listen to the words that others use; the second is to observe how they dress. Words and dress are key indicators of values, attitudes, beliefs, and behaviors:

* Challengers use words that suggest the notions of competition, courage, energy, excitement, and incentives. They tend to dress casually.
* Causals use words that suggest the notions of acceptance, friendship, ideals, peace, and sharing. They tend to dress fashionably.
* Stabilizers use words that suggest the notions of budgets, loyalty, responsibility, safety, and security. They tend to dress formally.
* Visionaries use words that suggest the notions of analysis, competence, explanations, research, and solutions. They tend to dress functionally.

If an individual can adapt their personal style to another’s without losing their own, they can increase the likelihood of success in entertaining, informing, convincing, persuading, and negotiating to close transactions for mutual benefit.

Understanding personal styles is the key to balancing inter-personal skills with professional skills.

…and to understand personal styles in thirty minutes or less, claim your opportunity for instant access when you go to http://www.understandingpersonalstyles.org

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

Every successful enterprise wants and needs to further its vision and to expand profitably in order to build sustainable advantage. To facilitate sustainability, processes must be integrated from their components in a form that is duplicable. Once integrated, the enterprise can further penetrate existing markets, or expand into new markets reliably to earn value through growth.

The value of an enterprise increases when it can build a network of successful duplicable activities. This approach has been used by enterprises such as HSBC, McDonald’s, Royal Dutch Shell, Starbucks, and Walmart to expand in both domestic and foreign markets as either corporate or franchise systems, or both.

The technique requires building a standardized business system from duplicable processes, functions, facilities and equipment with proven products and/or services in one market, that offer potential in others. The technique is applied most often by operators of bank branches, chain department stores, drug stores, fast-food restaurants, gas stations, and supermarkets. However, it is equally applicable to internal administrative departments and operational plants and warehouses.

The ingredients consist of a set of measurable, predictable, repeatable, and trainable processes that can be integrated together and with related functions, facilities, and equipment to form the business system itself. Standardized products and/or services are delivered through this highly routinized system as a bundle.

A vision may be realized with a single successful location; an aspiration may be realized through a global network of locations.

The system may start from a successful lifestyle business enterprise at a single location, which with some fine tuning, can be duplicated as an upwardly mobile enterprise in both local and foreign markets. Or it may start from an intentional strategy to build a network, with a proof of concept in the first market to determine what works, and what doesn’t. Either way, once the recipe for success is fine tuned, the system can duplicated as a corporate network, or offered as a package to franchisees.

It is essential to include only those components that deliver value effectively, efficiently, and economically, and shut out anything that adds unnecessary cost. A distinguishing factor of franchise systems from “mom and pop” enterprises, is that whereas the cost of entry in a franchise system is usually higher, the system has a higher chance of success and earning value.

The duplicable principle is also used by network marketing systems, which first offer products and/or services to customers, and then show them how to duplicate the process by offering the system to others. These systems are often based on the notion of switching products and/services to save money, and then showing others how to do the same thing to earn money.

The duplicable principle enabled Walmart to grow from a single location in Rogers, Arkansas to the world’s largest enterprise in terms of revenue in less than fifty years. It enabled McDonald’s to become a global restauranteur, and HSBC to become the world’s local bank. It enabled Colonel Sanders (Kentucky Fried Chicken) to have one of the most recognizable faces in the world.

The principle enables an enterprise to penetrate existing markets with confidence, and to enter new markets with anticipation and deliberation, although some local adjustments may be necessary in foreign markets.

For example, McDonald’s offers vegetarian burgers in India in accordance with local dietary customs.

The principle also enables customers to recognize and patronize their favorite establishments when traveling away from home. Hotel systems, such as Hilton and Holiday Inn, and car rental systems, such as Avis and Hertz, were built on the duplicable principle because they were recognizable in foreign markets, and perceived as safe and reliable by their domestic customers.

The principle also enables both employees and suppliers to know what to expect in terms of materials, supplies, and service standards.

Deploying the duplicable principle is an enterpriship (entrepreneurship, leadership, and management) competency that earns value through growth with reliability.

And to assess your enterpriship competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.fromvisiontovalue.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

Whether they are applied by an entrepreneur on a first-time venture, or by the management of a well established enterprise, values-based governance disciplines provide a control mechanism for investors. The three disciplines of stewardship, strategy, and structure regulate the three processes of planning and policy development, deployment, and performance measurement. When these disciplines are in place, the processes are under control; investors can “rest assured” on “the three legged stool.”

The Governance function, which consists of the board of directors and the chief executive of a corporation, the members of a limited liability company, or a sole proprietor, has the ultimate responsibility for an enterprise to its investors. This responsibility includes taking care of the affairs of the enterprise, and protecting its assets.

The term “management,” which refers to the board of directors, officers, and non-official managers, has the authority and responsibility for directing and controlling the events and activities.

The governance disciplines of stewardship, strategy and structure dictate relationships among employee, customer, supplier, regulator, and competitor constituencies for enacting change and earning value. The management team must be able to demonstrate that they can enact change, both by being able to cause it or respond, depending upon opportunities and conditions.

Stewardship, strategy, and structure

Stewardship is the responsibility for the performance of an enterprise and the delivery of value to constituencies. The responsibility includes ensuring that the enterpriship (entrepreneurship, leadership, and management) competencies of individual employees are used judiciously. If so, ideas are transformed into value innovatively, directions are set that others can follow effectively, and resources are applied to achieve results efficiently.

Strategy addresses the beneficial positioning of an enterprise in the marketplace so as to deliver value over time. It begins by establishing the values and guiding principles, mission, vision, and value proposition, and ends with delivered value. The results are only as good as the underlying assumptions.

Values form the basis for behavior within the enterprise, because they describe a system of management’s beliefs that set expectations for individuals, establish positions and priorities, and provide a framework for decision making. As a consequence, the governance disciplines must be values-based, because if management doesn’t live the values, nobody else will.

Strategy establishes the direction for competitive, collaborative and cooperative advantage, and performance excellence.

Competitive advantage is about the position and posture that offers constituencies better value than competitors. Causing change affects competitors, but being able to respond to change caused by competitors is essential to sustainability. Collaborative advantage is about the relationships between suppliers, or customers, or peers as a partnership with a common mission, and operating dependently for mutual value. Cooperative advantage is about the relationships between suppliers, or customers, or peers as an association with a similar mission, but operating independently for mutual value.

Performance excellence means doing the right things, and then doing those things well.

Structure is the consequence of strategy, and defines the business model – the enabler of relationships between an enterprise’s infrastructure, products and/or services, markets, and constituencies that deliver value. The infrastructure itself consists of processes, functions, facilities, and equipment. Products and/or services are delivered through the infrastructure to both external and internal customers.

Planning and policy development, deployment, and performance measurement

The values-based governance disciplines are enacted through the enterprise process model. This model defines three processes: planning and policy development, deployment, and performance measurement. The deployment macro process subdivides into the research and development, and sales and production micro processes. All activities that earn and add value are embraced by this model.

Developing, enhancing, and maintaining plans and policies is best accomplished first on an enterprise basis with with strategic objectives and goals, and then on a tactical basis by function. Functional plans include business development, operations, finance, human resources, and information technology.

Deployment activities include research and development, and sales and production. Research and development activities are project-oriented with a finite beginning and end. Sales and production activities are either perpetually-oriented or project-oriented, depending upon the nature of product and/or services offered.

For example, the sales and production activities of a food service enterprise are perpetually-oriented, whereas the activities of an aircraft manufacturer are project-oriented, varying by each contract negotiated.

Perpetually-oriented means occurring continually, but not necessarily permanently. For example, operators of food service establishments must maintain standards, and offer exciting new menu items from time-to-time to preserve sales levels. However, contract manufacturers have to drum up new business before current contracts expire, otherwise production activities can come to a hard stop. Sales levels in food services establishments may be seasonal, and can fluctuate with consumer confidence, impacting staffing levels. However, once contracts booked, manufacturing workloads should be reasonably stable.

Performance measurement processes must address both financial and non-financial measures. Revenues, costs and expenses, profits, cash flows, and returns on investment involve financial measurements based upon rates, quantities of input, and volumes of output. Financial performance must be evaluated in terms of non-financial measures, such as market share and penetration, product usage, employee and customer satisfaction, quality, time-to-market, cycle time, and asset utilization.

Full compliance with laws and regulations is an essential performance criterion, and should be measured; otherwise values are meaningless.

Control mechanism

The values of the enterprise must promulgate the notion of trust and integrity; management has the responsibility to behave accordingly. Such behavior includes being willing to fully disclose both satisfactory and unsatisfactory performance and results.

Actual performance should compared to planned through a feedback loop that provides timely actionable information, so that problems can be better anticipated, and solutions implemented with deliberation. It’s difficult to “save face” when things go wrong, but early prevention is better than cure.

An internal audit function should provide independent assessments of the effectiveness of processes in medium to large enterprises directly to the Governance function. These assessments should be in addition to external audits.

If the governance disciplines are applied routinely, the processes executed consistently in accordance with plans and policies with independent audits, then the investors have a control mechanism in place. This mechanism ensures that the affairs of the enterprise are being taken care of and its assets are protected.

The values-based governance disciplines of stewardship, strategy, and structure provide a three-legged stool upon which the investors can “rest assured.”

Leveraging values-based governance disciplines is an enterpriship competency.

…and to assess your enterpriship competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.fromvisiontovalue.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

A frequent issue facing entrepreneurs and executives alike is how to organize an enterprise. There are many options including those based upon product lines, business lines by markets, and business units by industry. However the process starts by properly identifying the functions – areas of subject matter expertise that are relevant to earning value.

The domain competencies of individual employees represent the specific knowledge and technical skills that are required to perform activities. Domain subject matter areas include legal, finance, human resources, information technology, program management, engineering, operations, and business development. These knowledge-related activities can be grouped together to form the first level of organizational structure within an enterprise – the enterprise function model.

Processes and functions are components of the infrastructure of an enterprise. Functions house the knowledge and technical skills of an enterprise; processes represent the activities to turn knowledge and skills into value. Processes are horizontal, flowing through the enterprise, and functions are vertical. Macro processes cross functions whereas micro processes are contained within functions.

Enterprise function model

Every enterprise has three macro functions: Governance, Administrative, and Operational, whether management chooses to specifically identify them or not. They form the basis for the enterprise function model. Each macro function decomposes into micro functions, which in turn can further divide into subfunctions.

The Governance function, which consists of the board of directors and the chief executive of a corporation, the members of a limited liability company, or a sole proprietor, has the ultimate responsibility for the enterprise to its investors.

The Administrative and Operational functions are headed by top-level executives.

The Administrative functions include legal, finance, human resources, and information technology; the Operational functions include operations and business development.

The finance function includes the treasury (funds management) and control (financial, managerial, and regulatory accounting and reporting). The operations function includes procurement, manufacturing (or its equivalent in non-manufacturing enterprises), and distribution. The business development function includes marketing, sales, and service.

There are two additional functions that must be considered in any organizational design – the “enterprise” function and the research and development function.

The enterprise function (Administrative) is where activities such as support for planning and policy development and performance measurement, brand management, facilities management, relations (community, government and investor), ombudsman, and internal audit are housed. It provides support to the Governance function. It may be consolidated as one, or split into many. It is rarely called the “enterprise” function, so that term is purely descriptive.

The research and development function (Operational) houses program management and engineering expertise. It relies upon “cross-functional” participation from elsewhere in the enterprise. It is heavily “project-oriented” focusing on market, product and/or service, and infrastructure-related activities. Employees should be rotated in and out of the research and development function so that a real-world orientation is always present, as opposed to purely a laboratory environment.

Any of these functions can be insourced or outsourced depending upon the core competencies of the enterprise, although the ultimate responsibility must remain in-house. An argument can be made that the responsibility for marketing must always be in-house, because without marketing, nothing else in the enterprise matters. This is why there is a tight relationship between strategy and marketing.

Organizational structure

A functional organization is suitable for emerging enterprises and small businesses. As an enterprise grows into multiple markets and product lines, more complex organizational structures are required.

As organizational structures become more complex, so does the risk of the formation of “silos.” Silos create barriers to communication and teamwork between functions.

In larger enterprises, organizational units may be made up of divisions, departments, branches, and plants. Units may be further be organized into product lines, business lines by geographic and demographic markets, and business units by industry.

Domestic geographies include North, East, South, West, and Central; and global geographies include Americas; Europe, Middle East and Africa; and Asia-Pacific. Demographics include individuals (consumers) and enterprises (commercial, corporate, industrial, financial, and government). Industries include (but not limited to) manufacturing, merchandising, credit, and services.

In general, it is better to keep a segregation of duties between the Administrative functions and the Operational functions to avoid conflicts of interest. The exception is the research and development function, which should involve cross-functional participation. Whereas the program management and engineering subfunctions may be staffed permanently, all other employees should be rotated in and out to encourage the sharing of experience across the enterprise.

Every employee should have the opportunity to rotate among functions over time so to broaden knowledge and skills, and build cross-functional teamwork.

For example, the activities of the finance function should be kept separate from the operations and business development functions, so that all payables and receivables processing is kept separate from the individuals that generate the transactions.

Enterpriship

A key success factor in designing the enterprise function model is to ensure that it embraces the knowledge and skill requirements to deliver value in compliance with all laws, regulations, and best practices, and that there is no redundancy.

Designing and deploying the enterprise function model is an enterpriship (entrepreneurship, leadership, and management) competency and is usually performed in conjunction with enterprise process model design to ensure that value is earned effectively and efficiently.

…and to assess your enterpriship competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.fromvisiontovalue.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker

http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

An enterprise’s constituencies are the six key groups that influence its success: employees, customers, suppliers, investors, regulators, and competitors. An enterprise’s advantage rests with these groups. The challenge is finding it.

Employees, customers, suppliers, and investors participate with an enterprise as primary constituencies because they contribute to the value-creation process. Regulators and competitors participate as secondary constituencies. Regulators develop laws granting the right for enterprises to do business in certain arenas, and competitors impact enterprises by forcing them to select counter-moves in response to competitive initiatives.

The community-at-large can be considered to be a tertiary constituency, which can be local-to-global as an enterprise develops markets for customers and participates in markets of suppliers around the world.

A constituent is a member of a group of employees, customers, suppliers, investors, regulators, or competitors, i.e., a specific individual or enterprise. Whether “B to B” or “B to C,” all constituents whether incorporated or not, are made up of people. Without people there is nothing in business, because people make the decisions.

Three types of advantage can be built with constituencies: competitive, collaborative, and cooperative.

Competitive advantage

Competitive advantage about the position and posture that offers consistencies better value than competitors. Competitive advantage applies to employees, customers, and investors. The advantage results for employees in terms better working conditions and opportunities; for customers in terms of convenience, quality of products and/or services, and price; and for investors in terms of returns above the cost of capital.

Successful enterprises have tight coupling between people and processes. Tight coupling of constituencies with business processes increases the likelihood of realizing competitive advantage. The result of tight coupling is a differentiated, distinctive enterprise that is hard to replicate by others, but easy to duplicate by the enterprise itself.

Employees whose activities are efficiently integrated with the enterprise reduce inefficiencies and increase competitive advantage.

An example of the use of tight coupling is Southwest Airlines, which has built an entire culture around its processes for providing air transportation. Southwest relies upon a high degree of standardization in processes, facilities, and equipment.

Southwest also demonstrates that competitive advantage is found in the intangibles – people and the resulting culture and processes are difficult to separate because they are so tightly coupled. For example, the employees “luv” to work at Southwest (New York Stock Exchange: LUV – for Love Field – Southwest’s home base).

Other airlines have tried to mimic Southwest but have been unable to replicate the concept because they could not achieve the same degree of coupling between people and processes.

Customers become tightly coupled with the enterprise through loyalty programs and products and/or services that convenient and easy to use.

For example, frequent flyer programs tightly couple customers to airlines; internet banking systems tightly couple customers to banks. When tight coupling occurs, switching from enterprise to enterprise is hard and costly to customers – therefore, competitive advantage results.

The Walt Disney Company is another example of an excellent fit between people and processes. Disney uses its employees, who are in effect “cast members,” and processes to bring magic to its customers – the product is very much vested in the experience.

Competitive regulatory advantage exists when an enterprise finds a loophole in laws and regulations that others have yet to find. For example, North Carolina National Bank found a loophole in banking laws that enabled it to expand into Florida. It went on to become NationsBank, and eventually acquired Bank of America, making Charlotte, North Carolina a major international financial center.

Collaborative advantage

Collaborative advantage is about the relationships between suppliers, or customers, or peers as a partnership with a common mission, and operating dependently for mutual value. This type of arrangement is common in general contractor/subcontractor relationships, where many different enterprises are working together to complete a common project, such as in the aerospace and construction industries.

No major project can be completed without collaborative efforts from multiple parties who bring diverse knowledge and skills to the endeavor.

The more tightly coupled the supply chain is between suppliers and customers, the more advantage the participants have in the chain collaboratively. The use of information technology can make a big difference in the tightness of the coupling.

For example, suppliers who send package tracing information to their customers as provided by Fedex and UPS establish a three way relationship between themselves, their suppliers, and the customer.

Suppliers who share information with customers, and vice versa, about demographics and psychographics of customers, product preferences and usage, have a much greater advantage than those who are locked out of the chain.

Cooperative advantage

Cooperative advantage is about the relationships between suppliers, or customers, or peers as an association with a similar mission, but operating independently for mutual value. This type of arrangement is common in outsourcing relationships, where one enterprise is providing services for another, but is managed independently.

For example, in the business of outsourced telemarketing call centers, the service provider initiates and responds to telephone calls in the names of their clients – the customers think that they are talking to employees of the enterprise itself.

Cooperative relationships are popular when enterprises move away from being fully vertically integrated, and no longer control the entire process from raw materials to finished products and/or services.

Enterpriship

Understanding constituencies and building competitive, collaborative, and cooperative advantage through tight coupling are enterpriship (entrepreneurship, leadership, and management) competencies that are essential to value creation.

…and to assess your enterpriship competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.fromvisiontovalue.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks

Values form the basis for enterprise behavior because they describe a system of management’s beliefs that set expectations for individual behavior, establish positions and priorities, and provide a framework for decision making. Values statements must be well crafted and unambiguous to be useful to employees.

The notion of management “walking the talk” boosts an enterprise’s advantage if the words are perceived as genuine. If employees sense that management really is “living the values,” they will have a positive attitude towards the enterprise.

“Walking the talk” means that management is “out on the floor” communicating with employees about expectations. “Living the values” means that stated and enacted values are perceived by employees as being the same. It’s not just the words that matter, but how the words are said, and the integrity of the accompanying actions that are important.

The notion of management living the values and walking the talk establishes an environment for employee motivation, assuming that the employees agree with what is being espoused. If management doesn’t live the values and doesn’t walk the talk, then the employees will display superficial allegiance to the enterprise. If individual employees don’t agree with the values, perhaps they should lobby for change, or seek employment elsewhere.

Breakdowns occur when management blames others for decisions that they responsible for, when they don’t provide support for decisions that they have made, or when they abstain from decision making altogether.

Once there is a fit between stated and enacted values among the members of management as a team, values-based behaviors should cascade throughout the enterprise. When everybody is living the values, an advantage occurs in the marketplace because employees, customers, and suppliers learn is negotiable, and what isn’t. The policies of the enterprise should not be ambiguous because decisions can be made in the context of the values.

If management can empower employees to make decisions in accordance with the values, the enterprise becomes more effective and efficient because issues can be addressed on the “front line,” thus improving nimbleness in the marketplace.

Walking the talk is an example of “management by walking around.” The concept of management by walking around was a principle espoused by Bill Hewlett and Dave Packard when they established The Hewlett-Packard Company in 1939.

By creating The Hewlett-Packard Company, they established an enterprise that initially was based upon the principles of staying together, without knowing what the exact nature of the products and/or services would be.

Other principles espoused by Hewlett-Packard include the “open door” policy, “positive expectations,” and “management by objectives” – a concept developed by Peter Drucker.

An illustrative set of values includes statements for the enterprise itself, its constituencies, and the environmental ecosystem within which it operates:

Enterprise:

* Maintaining an environment of trust and integrity
* Being a good citizen in the community and industry
* Striving continually for innovation, quality, and continuous improvement
* Avoiding conflict of interest

Constituencies:

* Developing employees as teams
* Listening to customers
* Treating suppliers as partners
* Delivering superior returns to investors
* Complying rigorously with laws, regulations, and agreements
* Encouraging healthy competition

Ecosystem:

* Being environmentally responsible
* Being economically responsible
* Being socially responsible

If management does not live the values, lack of trust and cynicism set in among employees because of perceived (and hence real) double standards. Such double standards can cause breakdowns leading to poor performance, misconduct, including conflicts of interest, and even the risk of fraud and embezzlement.

Enacting stated values are “enterpriship” (entrepreneurship, leadership, and management) competencies.

…and to assess your enterpriship competencies in thirty minutes or less, claim your opportunity for instant access when you go to http://www.fromvisiontovalue.com

From Nigel A.L. Brooks – Management Consultant and Motivational Speaker

http://www.bldsolutions.com

Article Source: http://EzineArticles.com/?expert=Nigel_Brooks