CAREER DEVELOPMENT - TO THOSE WHO DO IT RIGHT
Sometimes Career Development involves just taking stock of, and reinforcing, what we’re doing right. This article is an acknowledgement of all those hard-working corporate managers & executives, at every level, who come to work each day and give it their all.
This is to you, the managers & executives who drive Corporate America - especially those of you in the major companies.
Too often the focus of Career Development discussions is on correcting negatives, or developing new skills. Sometimes we need to just take stock of the things we do right, and reinforce those characteristics & values for ourselves and others. Getting an occasional pat on the back helps the ol’ libido too.
Having “been there and done that”, I know first-hand that the corporate world is a unique environment, requiring a great deal of it’s managers & executives. They live under a constant barrage of rules & regulations, often setting rules for themselves beyond those imposed from above. They often work in “vanilla” environments, in tiny offices or grey cubicles; bathed in fluorescent light.
It can be difficult to establish individuality; the culture requiring a high degree of conformance.
There is constant scrutiny; from higher-ups, the Board, Regulators, and -of course- the “never-satisfied” Investors & Analysts.
No one is truly their own boss; at any level. Many initiatives require committee or project-team participation. Watchful eyes are everywhere. Decisions of any consequence often require involvement by several layers of management. The hours can be long, the work tedious, and the rewards nebulous.
Sometimes it’s hard to keep an eye on the big-picture, what with all the complexities.
The business environment can be fierce, and failure is often harshly dealt with. The government and media attitudes toward big business can be downright hostile at times; making everyone’s job more difficult. Some moron will get caught in an illegal or immoral act and everyone comes under a new spate of scrutiny; guilt by association being the primary driver.
As a manager or executive, you’re expected to provide leadership; but there are restrictions on your freedom of action. I was watching the Golden Globe Awards on TV recently, and was reminded of the abstract manner in which most managers & executives must derive satisfaction from, and recognition for, their work. There are few award ceremonies; usually just the retirement parties when one is being kicked out. There are few plaques, or trophies, or other concrete acknowledgements of achievement. No one’s taking pictures of managers & executives walking the red carpet in fancy tuxedos & gowns. No media representatives are asking for “warm & fuzzy” interviews. There are few blatant opportunities to crow one’s accomplishments and “shine”; no tear-filled acceptance speeches.
If you’re one of the army of people who regularly and reliably come to work and give your best; honestly, morally, and decently - give yourself a pat on the back.
You are an example to yourself and others of why America is still a formidable economic force despite all the competition, and despite all of the outside interference. You are the soldiers and leaders who drive the economic machine. You are shining examples of what’s right in America.
I salute you - and I encourage others to follow in your footsteps.
If you’re not one of these people, it’s past-time to get with the program.
Good luck to you all.
Al Walsh, Owner/Founder, Walsh Enterprises - Business Advisors
Showing posts with label Al Walsh. Show all posts
Showing posts with label Al Walsh. Show all posts
Thursday, January 22, 2009
Saturday, January 10, 2009
Mentoring for Managers, Career Development Tools, more from Al Walsh
Financial Statements for Dummies - A Career Development Tool
Don't know how to read Financials?
Paraphrasing the popular “how-to” books, this article is a basic primer on understanding Financial Statements.
It’s scary to me how many business managers can’t read their own company’s Financials. Even some business owners barely understand their own Financials (and, scarily enough, some Finance people too).
Any manager who wants to advance beyond the status of “junior flunkie” should have at least a cursory understanding.
I’m not going to get involved in double-entry accounting and debits & credits. That would just confuse you and it’s unnecessary for this discussion. If you have no idea what I was just talking about, accountants post two entries for every transaction; a debit and a credit. It’s called double-entry accounting. Enough said.
All you accountants out there can now close the article and go away. This is basic stuff.
So here goes:
The two basic Financial Statements are the Balance Sheet and The Income Statement (or P&L).
Let’s talk about the Balance Sheet first:
The Balance Sheet is a reflection of the financial makeup and standing of the company at any point in time - usually at each month-end. It is a roll-up of every transaction the company’s done from day-one to present. It reflects EVERYTHING that’s happened; including Profit or Loss (more on that later).
The Balance Sheet is made up of three broad categories: Assets Liabilities and Net Worth (or Owners’ Equity). The total of Assets always equals the total of Liabilities plus Net Worth. (Assets = Liabilities + Net Worth)
Assets = the things the company owns: Cash, Accounts Receivable, Inventory, Land, Equipment, etc. If you prepay insurance, or some other purchase, you would also post an asset entry here.
Liabilities are the debts of the company: Accounts Payable, Bank Debt, Car Loans, etc. They’re split up between Current Liabilities (the money due within the current fiscal year) and Long-Term Debt (Amounts due beyond the current fiscal year).
Last, we have Net Worth (Owners Equity).
Net Worth contains: Any money invested in the company minus any dividends paid plus the net total of all annual profits (negative for losses) since day one (called Retained Earnings) plus the total of profits (negative for losses) in the current year.
Not too difficult, huh? Now let’s talk about the Income Statement (P&L):
The Income Statement is a reflection of all Revenues and Expenses for the current year; in other words, the company’s profitability. The bottom-line number is Net Profit, which = all Revenues less all Expenses. Remember I said earlier that the Balance Sheet reflects ALL transactions of the company? The Net Profit total of the Income Statement flows to the Balance Sheet as the total of current year profits in the Net Worth section. At each year-end, the Income Statement zeros out to begin a new year. On the Balance Sheet, the current year profit in the Net Worth section transfers to the Retained Earnings total and the current year profit value goes back to zero for the start of a new year. If you’re confused, read this a couple times and you’ll get the hang of it. This is where beginning accounting students start getting glaze-eyed, but it’s not that tough. Just sleep on it.
That basically sums up your two key Financial Statements. There are others, but unless you’re heavily involved in the numbers you don’t have to know those. With an understanding of these two, you can get a decent handle on the company’s status.
I didn’t get into some of the more complex stuff like Capital Purchases vs Expenses, or Depreciation, or some of the hinky accounting transactions, but that’s okay. That’s a set of topics for another day.
If you’re still confused, get your hands on some Financials and go find the categories mentioned in this article. It will come to you.
I hope this helps.
Don't know how to read Financials?
Paraphrasing the popular “how-to” books, this article is a basic primer on understanding Financial Statements.
It’s scary to me how many business managers can’t read their own company’s Financials. Even some business owners barely understand their own Financials (and, scarily enough, some Finance people too).
Any manager who wants to advance beyond the status of “junior flunkie” should have at least a cursory understanding.
I’m not going to get involved in double-entry accounting and debits & credits. That would just confuse you and it’s unnecessary for this discussion. If you have no idea what I was just talking about, accountants post two entries for every transaction; a debit and a credit. It’s called double-entry accounting. Enough said.
All you accountants out there can now close the article and go away. This is basic stuff.
So here goes:
The two basic Financial Statements are the Balance Sheet and The Income Statement (or P&L).
Let’s talk about the Balance Sheet first:
The Balance Sheet is a reflection of the financial makeup and standing of the company at any point in time - usually at each month-end. It is a roll-up of every transaction the company’s done from day-one to present. It reflects EVERYTHING that’s happened; including Profit or Loss (more on that later).
The Balance Sheet is made up of three broad categories: Assets Liabilities and Net Worth (or Owners’ Equity). The total of Assets always equals the total of Liabilities plus Net Worth. (Assets = Liabilities + Net Worth)
Assets = the things the company owns: Cash, Accounts Receivable, Inventory, Land, Equipment, etc. If you prepay insurance, or some other purchase, you would also post an asset entry here.
Liabilities are the debts of the company: Accounts Payable, Bank Debt, Car Loans, etc. They’re split up between Current Liabilities (the money due within the current fiscal year) and Long-Term Debt (Amounts due beyond the current fiscal year).
Last, we have Net Worth (Owners Equity).
Net Worth contains: Any money invested in the company minus any dividends paid plus the net total of all annual profits (negative for losses) since day one (called Retained Earnings) plus the total of profits (negative for losses) in the current year.
Not too difficult, huh? Now let’s talk about the Income Statement (P&L):
The Income Statement is a reflection of all Revenues and Expenses for the current year; in other words, the company’s profitability. The bottom-line number is Net Profit, which = all Revenues less all Expenses. Remember I said earlier that the Balance Sheet reflects ALL transactions of the company? The Net Profit total of the Income Statement flows to the Balance Sheet as the total of current year profits in the Net Worth section. At each year-end, the Income Statement zeros out to begin a new year. On the Balance Sheet, the current year profit in the Net Worth section transfers to the Retained Earnings total and the current year profit value goes back to zero for the start of a new year. If you’re confused, read this a couple times and you’ll get the hang of it. This is where beginning accounting students start getting glaze-eyed, but it’s not that tough. Just sleep on it.
That basically sums up your two key Financial Statements. There are others, but unless you’re heavily involved in the numbers you don’t have to know those. With an understanding of these two, you can get a decent handle on the company’s status.
I didn’t get into some of the more complex stuff like Capital Purchases vs Expenses, or Depreciation, or some of the hinky accounting transactions, but that’s okay. That’s a set of topics for another day.
If you’re still confused, get your hands on some Financials and go find the categories mentioned in this article. It will come to you.
I hope this helps.
Wednesday, January 7, 2009
Al Walsh on the World - Watch out for that Tiger
Nostradamus Was Right, World-End Is Coming!
Watch out for that tiger!
Nah! Nostradamus made good money selling nonsense to the impressionable, but he makes for good comedy relief leading into my next topic; which is quite serious.
A lot has been written about techniques for business people in the new millennium. I happen to believe that the required skills are largely timeless; being applicable at all times. But perhaps there is one factor that we should pay very close attention to at this particular time.
We’ve been through many economic downturns and survived; including the Great Depression. But I think the one we’re in now deserves special attention. It’s unique because there are financial tidal-forces of monumental size out there that haven’t played out yet. Just consider the multi-trillion, largely-unregulated, highly-speculative derivatives market. A good portion of it is tied to the mortgage mess, and those instruments haven’t been priced down to their true value on balance sheets yet.
Somewhere along the way there’s going to be a day of reckoning, and it’s not going to be pretty.
The actions of the Fed & Treasury to throw “funny-money” (huge quantities of new, unbacked money) at the mess have just frozen it in time. There will come a thaw. What will we have when it comes? The money-throwing might help stem economic deflation, but it will inevitably create huge monetary inflation. We have yet to deal with that monster. And if we can’t stem the economic deflation, we might get the unique “thrill” of having deflation and inflation simultaneously. It’s enough to make one very queasy.
The Wall Street pundits blow sunshine at us because they don’t know what else to do. I can smell their fear. The government just seems to be in a stunned state.
Given the oddity and uniqueness of the situation, it’s difficult for most businesses and individuals to surmise what the impact to them will be. This, of course, leaves everyone in a high state of anxiety.
If you’re not aware enough yet to feel edgy, I highly recommend you start now.
We all want to believe that it will work out okay. Government “talking heads” come out periodically to tell us so. But I don’t think anyone really knows. The banks don’t want to lend to each other for fear of what the “other guy” is holding in his hand. “Will they go under and take me with them”". It’s like a scary game of poker. The banks aren’t loaning out the money they got for their junk mortgage instruments from the Fed because their balance sheets are in jeopardy. The Fed is probably in the best position to know the true nature of the situation, because they bought a lot of the junk. But the Fed isn’t talking. They won’t even say who they gave the money to.
I can’t prove it, but I’ve believed for a long time that the government manipulates the markets during such times through their finance house partners. The “Plunge Protection Team” (The President’s Working Group on Financial Markets) is, after all, quite real and various statements have slipped out of the Fed hinting at such activity. So we are left wondering what is real, and what is smoke & mirrors. Main Street is left holding the bag - with their liquidity cut off and with no good sense of what’s coming.
About six months ago I learned something that made me really frosty. It seems an executive order was put in place to absolve public companies from having to meet full disclosure rules in a national emergency. If the government deems it “necessary” for “national security purposes”, a public company doesn’t have to tell their investors the full truth. Is anybody besides me scared to death at that prospect? I can’t help wondering if it’s being applied now; and to what extent.
In my opinion, we really managed to make a mess of things this time and people have good reason to be concerned.
Which brings me to my subject. Now is a very good time to sharpen your intuitive senses. In the best of times we of the modern world are buried in information. Sorting through it to keep ourselves founded can be daunting. Now we’re faced with challenges that have no precedent, and for which we have no feeling of the potential hazard. Pay attention.
When a farmer in India has a tiger in the neighborhood, he has no trouble keeping his priorities straight. He’s got to feed the family, and there’s endless chores to do, but that tiger is always in the fore-front of his mind. We need to be a lot like that farmer, and use our intuitive senses to help us keep alerted to potential danger.
Since the first humans sat in their caves at night listening to the predators snarling in the moonlight, we’ve been building a strong survival instinct. In our civilized world, that instinct has been dulled. Sometimes it’s difficult to tell the wolves from the sheep. But the instinct is still there if we listen.
There’s a tiger in our neighborhood, and perhaps some wolves too. This is a very good time to heighten our senses and watch for trouble. If it comes, it will probably arrive quickly and in a form we’re not accustomed to. Like that farmer, we have to watch for surprise attacks from the bushes.
Good luck to all of us.
Al Walsh is a regular contributor and has launched his consulting practice. Please enjoy his other posts and comments he is a favorite at The NEW New World of Work.
Watch out for that tiger!
Nah! Nostradamus made good money selling nonsense to the impressionable, but he makes for good comedy relief leading into my next topic; which is quite serious.
A lot has been written about techniques for business people in the new millennium. I happen to believe that the required skills are largely timeless; being applicable at all times. But perhaps there is one factor that we should pay very close attention to at this particular time.
We’ve been through many economic downturns and survived; including the Great Depression. But I think the one we’re in now deserves special attention. It’s unique because there are financial tidal-forces of monumental size out there that haven’t played out yet. Just consider the multi-trillion, largely-unregulated, highly-speculative derivatives market. A good portion of it is tied to the mortgage mess, and those instruments haven’t been priced down to their true value on balance sheets yet.
Somewhere along the way there’s going to be a day of reckoning, and it’s not going to be pretty.
The actions of the Fed & Treasury to throw “funny-money” (huge quantities of new, unbacked money) at the mess have just frozen it in time. There will come a thaw. What will we have when it comes? The money-throwing might help stem economic deflation, but it will inevitably create huge monetary inflation. We have yet to deal with that monster. And if we can’t stem the economic deflation, we might get the unique “thrill” of having deflation and inflation simultaneously. It’s enough to make one very queasy.
The Wall Street pundits blow sunshine at us because they don’t know what else to do. I can smell their fear. The government just seems to be in a stunned state.
Given the oddity and uniqueness of the situation, it’s difficult for most businesses and individuals to surmise what the impact to them will be. This, of course, leaves everyone in a high state of anxiety.
If you’re not aware enough yet to feel edgy, I highly recommend you start now.
We all want to believe that it will work out okay. Government “talking heads” come out periodically to tell us so. But I don’t think anyone really knows. The banks don’t want to lend to each other for fear of what the “other guy” is holding in his hand. “Will they go under and take me with them”". It’s like a scary game of poker. The banks aren’t loaning out the money they got for their junk mortgage instruments from the Fed because their balance sheets are in jeopardy. The Fed is probably in the best position to know the true nature of the situation, because they bought a lot of the junk. But the Fed isn’t talking. They won’t even say who they gave the money to.
I can’t prove it, but I’ve believed for a long time that the government manipulates the markets during such times through their finance house partners. The “Plunge Protection Team” (The President’s Working Group on Financial Markets) is, after all, quite real and various statements have slipped out of the Fed hinting at such activity. So we are left wondering what is real, and what is smoke & mirrors. Main Street is left holding the bag - with their liquidity cut off and with no good sense of what’s coming.
About six months ago I learned something that made me really frosty. It seems an executive order was put in place to absolve public companies from having to meet full disclosure rules in a national emergency. If the government deems it “necessary” for “national security purposes”, a public company doesn’t have to tell their investors the full truth. Is anybody besides me scared to death at that prospect? I can’t help wondering if it’s being applied now; and to what extent.
In my opinion, we really managed to make a mess of things this time and people have good reason to be concerned.
Which brings me to my subject. Now is a very good time to sharpen your intuitive senses. In the best of times we of the modern world are buried in information. Sorting through it to keep ourselves founded can be daunting. Now we’re faced with challenges that have no precedent, and for which we have no feeling of the potential hazard. Pay attention.
When a farmer in India has a tiger in the neighborhood, he has no trouble keeping his priorities straight. He’s got to feed the family, and there’s endless chores to do, but that tiger is always in the fore-front of his mind. We need to be a lot like that farmer, and use our intuitive senses to help us keep alerted to potential danger.
Since the first humans sat in their caves at night listening to the predators snarling in the moonlight, we’ve been building a strong survival instinct. In our civilized world, that instinct has been dulled. Sometimes it’s difficult to tell the wolves from the sheep. But the instinct is still there if we listen.
There’s a tiger in our neighborhood, and perhaps some wolves too. This is a very good time to heighten our senses and watch for trouble. If it comes, it will probably arrive quickly and in a form we’re not accustomed to. Like that farmer, we have to watch for surprise attacks from the bushes.
Good luck to all of us.
Al Walsh is a regular contributor and has launched his consulting practice. Please enjoy his other posts and comments he is a favorite at The NEW New World of Work.
Saturday, January 3, 2009
Al Walsh on the US Economy
What to Do About the U.S. Economy
We need to change the way we think and act.
In order to understand where the U.S. is now economically, it helps to go back and review our history:
We started off as an agrarian society, with small cottage industries springing up here & there. Our cottage industries got a jump-start after the Revolutionary War when the British cut us off from many of their manufactured goods, out of spite, and we had to develop domestic supply-sources.
We then progressed through our industrial revolution, which was fed by a plentiful supply of natural resources and immigrant labor; plus technology bought or ”borrowed” from the British.
Our industrial revolution was prolonged and intensified by the supply demands of the Civil War.
Along came World Wars I & II, and the post-war reconstruction of Europe via the Marshall Plan: putting our industrial-capacity on “steroids” and promoting innovation.
At this point we were the economic “masters of the world”; and just about any citizen could start a business & succeed, often despite themselves, because of the massive global demand.
After the post-war reconstruction, other developing nations started progressing through their own industrial revolutions; taking away traditional U.S. industries and generating intense competition.
We’re now at a point where our few remaining manufacturing activities are under threat, and we’ve been reduced to a largely technology & service-provider role. Our technological strength, which ramped up during WWII and has stayed strong since, helped us maintain an edge. But other countries have now progressed to the point where they are doing the long-term basic research which is slowly chipping away at our technology lead.
In order to survive, many of our corporations have gone global; outplacing production and labor offshore.
Recent events in our previously world-dominant financial industry have left open questions about their future influence on global economics.
Our dollar, which has served as the world’s reserve currency since the collapse of the Bretton Woods Agreement in 1971, is under fire and waning in influence. The Fed & Treasury are creating massive dollar inflation to combat economic deflation; we have yet to deal with the ugly after-effects.
Our government has displayed gross ineptness in dealing with domestic affairs, let alone global ones. Massive debt is building that may take generations to dissipate. The Social Security mess hangs over everyone’s heads; and no one in government wants to deal with it.
Our natural resources are going offshore to feed other nations’ industries, and we have become a consumer society; serving as the world’s primary marketplace - however even that status is starting to wane as our societal wealth dissipates.
Our savings-rate has declined to near-zero; as a result, core-investment is declining.
We do a mediocre job of educating our youth and preparing them for adulthood.
So where does that leave us going forward?
In case you think we’re in for major realignment; we’ve already been doing it for decades - with global competition, and lack of response on our part, forcing fundamental changes across our economy. The trend will continue and intensify as China & India progress through their industrial development.
I think America is still in shock and hasn’t come to grips with the situation. We’re still trying to live and conduct business as if we’re in the post-WWII halcyon era.
What can we as individuals and a society do about it?
Our budding entrepreneurs are leading the way and providing the model. Just to get up & running and survive they must identify niche opportunities, and operate lean & mean. They must keep a good eye on the competition, and find ways to steal market-share. They forever seek ways to keep our bloated, unfocused government out of their affairs and their pockets. They’re reaching offshore and taking risks to pursue new opportunities. They’re developing new technologies, and leaner business models.
I’m not sure what will happen concerning our government. We have the government that we chose. Year after year we go to the voting booths; and what we have now is the result of our cumulative decisions as a nation. All I can offer to America is - “Wake up and smell the coffee”. If you don’t like the results, change them! Now! Please!
These days the news surrounding the auto industry encourages us to point our collective fingers and criticize. But ask yourself - Do you run your personal affairs any more efficiently? Most Americans spend more than they take in. Our national wealth is collecting into fewer & fewer hands. We elected the governments that have for decades created so much waste & inefficiency with our hard-earned dollars. We buy… and buy… and buy… while our savings accounts are collecting moths. We’ve transitioned from being a conservative, collaborative post-war society to a liberal Me, Me, Me… I, I, I - focused culture.
If you want to make a difference in our society, start by changing your personal habits. Then go apply good habits everywhere you can at work; saving money, promoting innovation & efficiency, and looking for every opportunity to take business from the foreign competition. Then go to the voting booth and make smarter decisions. We need leaders who can redirect our efforts to causes greater than our individual self-gratification.
Many business-people from other countries will probably read this article. I wish them well, but I also wish that my country would wake up and give them a better run for their money. They’re only doing what we would do in their shoes. Frankly, I think they wish we’d wake up too. After all: If we can’t save & invest, and generate true value in our businesses, we can’t retain the wealth that makes us good customers.
To quote the immortal words of Dennis Miller: “It’s just my opinion, I could be wrong”.
What’s your opinion?
Speak up and be counted!
We need to change the way we think and act.
In order to understand where the U.S. is now economically, it helps to go back and review our history:
We started off as an agrarian society, with small cottage industries springing up here & there. Our cottage industries got a jump-start after the Revolutionary War when the British cut us off from many of their manufactured goods, out of spite, and we had to develop domestic supply-sources.
We then progressed through our industrial revolution, which was fed by a plentiful supply of natural resources and immigrant labor; plus technology bought or ”borrowed” from the British.
Our industrial revolution was prolonged and intensified by the supply demands of the Civil War.
Along came World Wars I & II, and the post-war reconstruction of Europe via the Marshall Plan: putting our industrial-capacity on “steroids” and promoting innovation.
At this point we were the economic “masters of the world”; and just about any citizen could start a business & succeed, often despite themselves, because of the massive global demand.
After the post-war reconstruction, other developing nations started progressing through their own industrial revolutions; taking away traditional U.S. industries and generating intense competition.
We’re now at a point where our few remaining manufacturing activities are under threat, and we’ve been reduced to a largely technology & service-provider role. Our technological strength, which ramped up during WWII and has stayed strong since, helped us maintain an edge. But other countries have now progressed to the point where they are doing the long-term basic research which is slowly chipping away at our technology lead.
In order to survive, many of our corporations have gone global; outplacing production and labor offshore.
Recent events in our previously world-dominant financial industry have left open questions about their future influence on global economics.
Our dollar, which has served as the world’s reserve currency since the collapse of the Bretton Woods Agreement in 1971, is under fire and waning in influence. The Fed & Treasury are creating massive dollar inflation to combat economic deflation; we have yet to deal with the ugly after-effects.
Our government has displayed gross ineptness in dealing with domestic affairs, let alone global ones. Massive debt is building that may take generations to dissipate. The Social Security mess hangs over everyone’s heads; and no one in government wants to deal with it.
Our natural resources are going offshore to feed other nations’ industries, and we have become a consumer society; serving as the world’s primary marketplace - however even that status is starting to wane as our societal wealth dissipates.
Our savings-rate has declined to near-zero; as a result, core-investment is declining.
We do a mediocre job of educating our youth and preparing them for adulthood.
So where does that leave us going forward?
In case you think we’re in for major realignment; we’ve already been doing it for decades - with global competition, and lack of response on our part, forcing fundamental changes across our economy. The trend will continue and intensify as China & India progress through their industrial development.
I think America is still in shock and hasn’t come to grips with the situation. We’re still trying to live and conduct business as if we’re in the post-WWII halcyon era.
What can we as individuals and a society do about it?
Our budding entrepreneurs are leading the way and providing the model. Just to get up & running and survive they must identify niche opportunities, and operate lean & mean. They must keep a good eye on the competition, and find ways to steal market-share. They forever seek ways to keep our bloated, unfocused government out of their affairs and their pockets. They’re reaching offshore and taking risks to pursue new opportunities. They’re developing new technologies, and leaner business models.
I’m not sure what will happen concerning our government. We have the government that we chose. Year after year we go to the voting booths; and what we have now is the result of our cumulative decisions as a nation. All I can offer to America is - “Wake up and smell the coffee”. If you don’t like the results, change them! Now! Please!
These days the news surrounding the auto industry encourages us to point our collective fingers and criticize. But ask yourself - Do you run your personal affairs any more efficiently? Most Americans spend more than they take in. Our national wealth is collecting into fewer & fewer hands. We elected the governments that have for decades created so much waste & inefficiency with our hard-earned dollars. We buy… and buy… and buy… while our savings accounts are collecting moths. We’ve transitioned from being a conservative, collaborative post-war society to a liberal Me, Me, Me… I, I, I - focused culture.
If you want to make a difference in our society, start by changing your personal habits. Then go apply good habits everywhere you can at work; saving money, promoting innovation & efficiency, and looking for every opportunity to take business from the foreign competition. Then go to the voting booth and make smarter decisions. We need leaders who can redirect our efforts to causes greater than our individual self-gratification.
Many business-people from other countries will probably read this article. I wish them well, but I also wish that my country would wake up and give them a better run for their money. They’re only doing what we would do in their shoes. Frankly, I think they wish we’d wake up too. After all: If we can’t save & invest, and generate true value in our businesses, we can’t retain the wealth that makes us good customers.
To quote the immortal words of Dennis Miller: “It’s just my opinion, I could be wrong”.
What’s your opinion?
Speak up and be counted!
Wednesday, December 31, 2008
Are YOU a True Leader? by Al Walsh
Are You a True Leader, or Just An Acronym-Tosser?
Getting with the Program. Don't Stick you head in the sand!
There are many good business tools in use today for growing and improving businesses:
ERP, Lean, TQM, WCM, Six-Sigma, JIT, ISO, etc.
Some have been around for a long time, and some are relatively new.
These tools all address goals that business people have been trying to achieve since time immemorial. The major difference now is that information technology has improved to the point where it’s possible to develop business intelligence and process control on a scale previously unthinkable.
These tools & practices are becoming commonplace in the business world.
If you think you’re immune, you’re probably in for a rude surprise; even if you’re a small company. Shrinkage of the “supply-chain” world is forcing companies at all levels to implement them. You might get by “under the radar” for awhile as a small business, but eventually your customers are probably going to force your compliance if you want to keep their business. Likewise, you will be forced to impose these conditions on your vendors. Anyway, why you wouldn’t want to use every tool at hand to improve your business is beyond my comprehension. Certainly you want to use them wisely, and improper use can actually be destructive, but such investments can garner huge benefits.
So, that brings us to the question of what type of leader you are:
We’ve all experienced them - the people who throw acronyms around freely to impress, without having any comprehension of what they mean. Are you one of them?
We’ve also encountered those who summarily reject all such resources because they’re “too expensive” or “too complex for our business”, or for some other blanket reason.
I suppose there are also a few sheltered people out there who have no idea what I’m talking about (Good luck to you!).
Do you comprehend the myriad of good tools available to improve your business, or is your head firmly implanted in the sand?
If you’re behind the curve, it’s time to “wake up and smell the coffee”. Not only do you want to avoid getting caught napping by your customers, but you’re probably missing out on real fundamental opportunities. I’m a firm believer in exercising constraint in these matters. If you don’t really need a “fancier system”, or if things are working well and “don’t need fixin” - then by all means you should exercise caution. But what about tomorrow - How are you going to get your business to “that next level”?
If you’re just throwing acronyms around, you obviously are conscious on some level that these things have value. Isn’t it time to learn what they’re really about? I’d bet your competition knows. Most likely someone within your own company does, and is going to figure out what a phony you are; if they already haven’t.
If you’ve summarily dismissed all of these tools on some “intuitive grounds”, it’s time to take wake up and take a fresh look.
I mentioned in a previous blog that effective leadership involves taking a forward-looking posture; planning, setting goals, anticipating changes, and always looking for opportunities to grow the business & shine. There are tools & processes out there that are just “itching’ to help. It’s time to take a hard look at them.
For the sake of your business - for the sake of your career - become informed. Those businesses facing possible hard times in the current economy should especially be paying attention to tools that can make your company leaner and meaner. Your competition will!
Al Walsh is a Los Angeles area "Unrepentant Capitalist".
CAREER ROLES:~ CEO - V.P. - CFO - COO - Entrepreneur~ Executive Committee & Board Member~ Partner and Advisor to CEO's, COO's & Boards~ Multi-Disciplined Consultant & Contractor
Getting with the Program. Don't Stick you head in the sand!
There are many good business tools in use today for growing and improving businesses:
ERP, Lean, TQM, WCM, Six-Sigma, JIT, ISO, etc.
Some have been around for a long time, and some are relatively new.
These tools all address goals that business people have been trying to achieve since time immemorial. The major difference now is that information technology has improved to the point where it’s possible to develop business intelligence and process control on a scale previously unthinkable.
These tools & practices are becoming commonplace in the business world.
If you think you’re immune, you’re probably in for a rude surprise; even if you’re a small company. Shrinkage of the “supply-chain” world is forcing companies at all levels to implement them. You might get by “under the radar” for awhile as a small business, but eventually your customers are probably going to force your compliance if you want to keep their business. Likewise, you will be forced to impose these conditions on your vendors. Anyway, why you wouldn’t want to use every tool at hand to improve your business is beyond my comprehension. Certainly you want to use them wisely, and improper use can actually be destructive, but such investments can garner huge benefits.
So, that brings us to the question of what type of leader you are:
We’ve all experienced them - the people who throw acronyms around freely to impress, without having any comprehension of what they mean. Are you one of them?
We’ve also encountered those who summarily reject all such resources because they’re “too expensive” or “too complex for our business”, or for some other blanket reason.
I suppose there are also a few sheltered people out there who have no idea what I’m talking about (Good luck to you!).
Do you comprehend the myriad of good tools available to improve your business, or is your head firmly implanted in the sand?
If you’re behind the curve, it’s time to “wake up and smell the coffee”. Not only do you want to avoid getting caught napping by your customers, but you’re probably missing out on real fundamental opportunities. I’m a firm believer in exercising constraint in these matters. If you don’t really need a “fancier system”, or if things are working well and “don’t need fixin” - then by all means you should exercise caution. But what about tomorrow - How are you going to get your business to “that next level”?
If you’re just throwing acronyms around, you obviously are conscious on some level that these things have value. Isn’t it time to learn what they’re really about? I’d bet your competition knows. Most likely someone within your own company does, and is going to figure out what a phony you are; if they already haven’t.
If you’ve summarily dismissed all of these tools on some “intuitive grounds”, it’s time to take wake up and take a fresh look.
I mentioned in a previous blog that effective leadership involves taking a forward-looking posture; planning, setting goals, anticipating changes, and always looking for opportunities to grow the business & shine. There are tools & processes out there that are just “itching’ to help. It’s time to take a hard look at them.
For the sake of your business - for the sake of your career - become informed. Those businesses facing possible hard times in the current economy should especially be paying attention to tools that can make your company leaner and meaner. Your competition will!
Al Walsh is a Los Angeles area "Unrepentant Capitalist".
CAREER ROLES:~ CEO - V.P. - CFO - COO - Entrepreneur~ Executive Committee & Board Member~ Partner and Advisor to CEO's, COO's & Boards~ Multi-Disciplined Consultant & Contractor
A Message to Small Business Owners & Employers from Al Walsh
A Good Word for “Little Consultants”
Options to consider when seeking focused talent.
Consulting has it’s place in the world - “Get in, get the job done, get out!”
The street is awash with large consulting firms. They have their place, but be careful. I was invited a while back to interview with one of these biggies. What an eye-opener! All they cared about was who I knew in the business-world, and how I might parlay those contacts into business for them. They didn’t give a hoot what my business capabilities were. Not a single question about my expertise arose. When I didn’t throw them any big names, their interest faded rapidly. Keep that in mind the next time you’re contemplating using a “biggie” consultant.
Businesses, especially small ones, have a love/hate relationship with consultants. On the one hand, they would love to have focused assistance from time-to-time (assistance that they can utilize and then kick out when the job’s done). On the other hand, they cringe at the thought of paying the fees. The utilization of consultants basically comes down to a cost/benefit trade-off. It’s a circumstance- by- circumstance decision. Consultants are used when there’s a need to supplement internal talent. You small business people have the highest aversion, but you also have the greatest need. Small companies operate with lean teams, thus the knowledge-base is more limited. Small contributions by consultants can reap huge rewards. Your team can use a focused supplement from time to time. Wise use of consultants can be a huge boon.
Which brings me to the main theme of this blog. You have options! There are very capable people out there who are available at very reasonable and negotiable rates, and who provide high-quality work, but don’t get considered either because they aren’t in the “biggie” consulting firms or because they haven’t yet established street name-recognition; which is a laborious and slow process. They’re out there, they’re not hard to find in this electronic age, and very likely they’ve already approached you for work.
Most of these “little consultants” come out of the corporate world, where their prior focus was internal; taking care of business for their employers. They were doing what they were supposed to do; and now they can do the same for you.
If you want some focused help, and you’re having a panic-attack over the potential cost, you need to take the “little consultants” into consideration.
They’re hungry, and they’re highly-motivated to please. If you make a reasonable offer (don’t be too greedy), they’ll “jump through hoops of fire” for you. They’ll want to use you as a reference when they’re done - so they’ll do everything within their power to satisfy you. I’ve known a number of these people over the years. They’re quiet, competent, capable folks who are focused on providing quality service. Unless you’re hiring a sales consultant, do you really want one who’s main focus is on selling?
Most business people with any experience can sniff out a “BS-er” pretty quickly, so interview your consulting candidate and feel them out. You’ll be able to tell pretty quickly whether or not they know their stuff.
Your aversion to consultants will change once you tap the “hidden” talent that’s out there. Give the “little consultants” a chance.
Al Walsh is a Los Angeles area "Unrepentant Capitalist"
CAREER ROLES:~ CEO - V.P. - CFO - COO - Entrepreneur~ Executive Committee & Board Member~ Partner and Advisor to CEO's, COO's & Boards~ Multi-Disciplined Consultant & Contractor
Options to consider when seeking focused talent.
Consulting has it’s place in the world - “Get in, get the job done, get out!”
The street is awash with large consulting firms. They have their place, but be careful. I was invited a while back to interview with one of these biggies. What an eye-opener! All they cared about was who I knew in the business-world, and how I might parlay those contacts into business for them. They didn’t give a hoot what my business capabilities were. Not a single question about my expertise arose. When I didn’t throw them any big names, their interest faded rapidly. Keep that in mind the next time you’re contemplating using a “biggie” consultant.
Businesses, especially small ones, have a love/hate relationship with consultants. On the one hand, they would love to have focused assistance from time-to-time (assistance that they can utilize and then kick out when the job’s done). On the other hand, they cringe at the thought of paying the fees. The utilization of consultants basically comes down to a cost/benefit trade-off. It’s a circumstance- by- circumstance decision. Consultants are used when there’s a need to supplement internal talent. You small business people have the highest aversion, but you also have the greatest need. Small companies operate with lean teams, thus the knowledge-base is more limited. Small contributions by consultants can reap huge rewards. Your team can use a focused supplement from time to time. Wise use of consultants can be a huge boon.
Which brings me to the main theme of this blog. You have options! There are very capable people out there who are available at very reasonable and negotiable rates, and who provide high-quality work, but don’t get considered either because they aren’t in the “biggie” consulting firms or because they haven’t yet established street name-recognition; which is a laborious and slow process. They’re out there, they’re not hard to find in this electronic age, and very likely they’ve already approached you for work.
Most of these “little consultants” come out of the corporate world, where their prior focus was internal; taking care of business for their employers. They were doing what they were supposed to do; and now they can do the same for you.
If you want some focused help, and you’re having a panic-attack over the potential cost, you need to take the “little consultants” into consideration.
They’re hungry, and they’re highly-motivated to please. If you make a reasonable offer (don’t be too greedy), they’ll “jump through hoops of fire” for you. They’ll want to use you as a reference when they’re done - so they’ll do everything within their power to satisfy you. I’ve known a number of these people over the years. They’re quiet, competent, capable folks who are focused on providing quality service. Unless you’re hiring a sales consultant, do you really want one who’s main focus is on selling?
Most business people with any experience can sniff out a “BS-er” pretty quickly, so interview your consulting candidate and feel them out. You’ll be able to tell pretty quickly whether or not they know their stuff.
Your aversion to consultants will change once you tap the “hidden” talent that’s out there. Give the “little consultants” a chance.
Al Walsh is a Los Angeles area "Unrepentant Capitalist"
CAREER ROLES:~ CEO - V.P. - CFO - COO - Entrepreneur~ Executive Committee & Board Member~ Partner and Advisor to CEO's, COO's & Boards~ Multi-Disciplined Consultant & Contractor
Tuesday, December 30, 2008
Al Walsh on Are YOU a True Leader?
Managing Hard Times
Thoughts for corporate executives on managing change.
If you’ve been properly managing your area of responsibility, whether it be Departmental or Corporate-wide, there shouldn’t be any major surprises for you, and you should be able to weather change effectively.
Regardless of your station in the corporate pecking-order, you should have been maintaining your own Strategic & Operational plans, and adjusting them to circumstances. People who exercise this discipline rigorously are seldom surprised, and usually have contingency plans developed for anticipated new developments. There are usually signs that change is in the wind, if you’re paying attention.
If you’re not doing this, or something fundamentally similar, I suggest that you START IMMEDIATELY; before it’s too late.
A key factor of quality management is a forward-looking posture; always anticipating what’s ahead and thinking about how you will adjust - just as you should be looking ahead regarding employee development - and to succession-planning in the event that you are promoted. People who exercise this discipline are better-prepared to deal with change; even on those rare occasions when it comes by surprise.
▪ Take stock of your talent and think about what you will do if a down-sizing occurs. Don’t wait for your boss to give you the bad news before you develop your plan. If you’ve got a marginal performer you’ve been tolerating, it’s time for them to go. Could you get by with fewer employees, or a leaner budget?
▪ If you see financial pressures building, think about what you can do NOW to cut expenses in your area of responsibility. Don’t wait for someone to pass an edict down.
▪ Go back to your last capital budget and review how you might implement less-costly alternatives, or temporarily shelve the parts that haven’t been implemented yet.
▪ If staff-cuts are possible, and cross-training needs to be done between targeted employees & those who would remain, start it NOW.
These are just a few of the ideas you can enact, but the operative words are THINK! and NOW!
When the down-sizing occurs, will you be perceived as a true leader or just another follower?
Your own job may hang in the balance. Get a leg up while you still can, and make it a permanent part of your leadership discipline. Operate lean, mean, and aware!
Good Luck!
Al Walsh is a Los Angeles area "Unrepentant Capitalist"
CAREER ROLES:~ CEO - V.P. - CFO - COO - Entrepreneur~ Executive Committee & Board Member~ Partner and Advisor to CEO's, COO's & Boards~ Multi-Disciplined Consultant & Contractor
Thoughts for corporate executives on managing change.
If you’ve been properly managing your area of responsibility, whether it be Departmental or Corporate-wide, there shouldn’t be any major surprises for you, and you should be able to weather change effectively.
Regardless of your station in the corporate pecking-order, you should have been maintaining your own Strategic & Operational plans, and adjusting them to circumstances. People who exercise this discipline rigorously are seldom surprised, and usually have contingency plans developed for anticipated new developments. There are usually signs that change is in the wind, if you’re paying attention.
If you’re not doing this, or something fundamentally similar, I suggest that you START IMMEDIATELY; before it’s too late.
A key factor of quality management is a forward-looking posture; always anticipating what’s ahead and thinking about how you will adjust - just as you should be looking ahead regarding employee development - and to succession-planning in the event that you are promoted. People who exercise this discipline are better-prepared to deal with change; even on those rare occasions when it comes by surprise.
▪ Take stock of your talent and think about what you will do if a down-sizing occurs. Don’t wait for your boss to give you the bad news before you develop your plan. If you’ve got a marginal performer you’ve been tolerating, it’s time for them to go. Could you get by with fewer employees, or a leaner budget?
▪ If you see financial pressures building, think about what you can do NOW to cut expenses in your area of responsibility. Don’t wait for someone to pass an edict down.
▪ Go back to your last capital budget and review how you might implement less-costly alternatives, or temporarily shelve the parts that haven’t been implemented yet.
▪ If staff-cuts are possible, and cross-training needs to be done between targeted employees & those who would remain, start it NOW.
These are just a few of the ideas you can enact, but the operative words are THINK! and NOW!
When the down-sizing occurs, will you be perceived as a true leader or just another follower?
Your own job may hang in the balance. Get a leg up while you still can, and make it a permanent part of your leadership discipline. Operate lean, mean, and aware!
Good Luck!
Al Walsh is a Los Angeles area "Unrepentant Capitalist"
CAREER ROLES:~ CEO - V.P. - CFO - COO - Entrepreneur~ Executive Committee & Board Member~ Partner and Advisor to CEO's, COO's & Boards~ Multi-Disciplined Consultant & Contractor
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