From Greg's Head

There are many tools you can use to aid in the strategy development for your company. One of the most effective is to evaluate your Strengths, Weaknesses, Opportunities, and Threats referred to as a SWOT analysis.

You can use SWOT to analyze your company, a business opportunity or even as competitive intelligence. 

Take the time to write out your Strengths - What's great, or what you do well?;  Weaknesses - What you do badly, or are lacking?; Opportunities – Where, and what are they?; and Threats - What are your hurdles?

The value of SWOT is dependent on the quality of what you list. It must reflect the competitive strengths and weaknesses and be based on a real understanding of market opportunities and threats. Try to work it out from all viewpoints.

New opportunities may be uncovered, problems put into perspective, nasty threats revealed, real strengths you can cash in on, and weaknesses you can address.

With the advent of improved financial reporting, and several management, self-help books outlining the benefits of Scorecards and other tools, the past few years have seen a surge in their creation and use.

The three main areas as defined by Ventana Research include:

1. Scorecards. They show progress towards strategies, goals, and objectives by using key performance indicators. Scorecards can appear inside dashboards, but differ from dashboards because: a) they can have multiple perspectives or points of view and b) they apply a management methodology that maps a strategy.
2. Dashboards. These are reporting tools that arrange measurements, metrics, etc. as compared to a goal on a single screen to be monitored at a glance. They differ from scorecards in that they are concerned with a specific role, or metric, and do not confirm to a management methodology.
3. Performance alerts. These are notifications in various forms, email, portal, wireless device, etc. of a key trend or business alert associated with a goal.

We will revisit this area in the future to review the results of the Ventana Research. It offers some interesting feedback on these tools. In the meantime, how effective is your use of these tools?

Your business is growing and it’s now time to add more employees. The expense involved in hiring the wrong person, especially at a senior level, can be large. Hiring the right talent should not be an intimidating process. 

A key element is the defining the skills, attributes and traits that the ideal applicant should have.

It is important that the position description for the job be well understood and documented. It should contain responsibilities, duties and specific objectives of the position, not the person. Know what you’re looking for, before you start looking.

The interview itself should be structured in a way that brings out all the key traits and attributes of the candidate. It should also provide an opportunity for the candidate to gain the information they need to make their employment decision. 

Consider having the candidate interview with several members of your team. They have a good feel for the culture of your company, and you will have several additional internal opinions to help the decision process.

How quickly do you execute your financial close each month? Do you take 7 days? 10 days? Can you close in 5 days?

Recent research has confirmed an indication by many CFOs for closing more quickly, with a recognition that existing processes at most organizations already take too long. Demands are increasing for financial information more quickly, and a desire for more analysis of results, is close on its heels.

A variety of sources suggest that you should be able to close your accounting periods within 4-5 days of month, quarter, or year end. To start improving the time for your financial close, consider the following:

1. Make sure your financial close is a well defined process, understood, and consistently applied.
2. Understand the barriers of disparate systems and spreadsheets contributing to the delays.
3. Move towards simplicity within people, process and technology that supports your close process. 

As a CPA, I get to work with lots of organizations of all sizes and types and yet I am perplexed by a fundamental fact that I see at most organizations. At a time when corporate strategy and budgets could be aligned to drive an organization forward, I see few instances when both work together in concert.

As budgets go, most are probably pretty accurate on what they report, the inflow and outflow of cash and a report detailing the background on each. What they lack is the intersection of other non-financial performance benchmarks that are necessary to supplement your budget and give you a Balanced Scorecard that can assist you in driving your company to the next level.   A study conducted by the Harvard Business Review over 10years ago is still valid in this area.

Three key non-financial areas that you can consider include:

• Your Human Capital experience. The training and learning programs you have in place.
• Your relationship with your customers. 
• Agreement on your core internal processes.

As easy as this sounds, many companies struggle to gain consensus in just one, let alone these areas. By bringing these areas into focus you can begin to set your balanced scorecard for driving operational and financial success.

As a business owner, you need to be aware of how your team members’ skills (or lack thereof) might affect productivity.

Consider conducting a skills audit of your team.   The purpose is to identify the key competencies of any employee or group of employees as it relates to their job role. 

The steps include:

• Identify the key skills and job requirements for each role
• Have the employee rate what their competency is now with each skill
• Score each skill where you want them to be
• Analyze the gaps and work with the employee to create an action plan to address any and all issues

Conducting a skills audit supports the Marcus Buckingham approach of using a person’s skills where they lie. This method has proven to be effective in both small and large companies. 

The skills audit process can be done close to your annual review time, so both you and your employee can begin a dialogue about goals, growth within your firm and any needed training.

Around the world business executives all believe that the number one business issue within their organization is the customer relationship. And these same executives will tell you that they value innovations and support process improvements that enhance the customer experience.

However, a recent study commissioned by Microsoft and conducted by Forrester Consulting suggests than many executives are saying one thing but actually doing something else as it pertains to investments in IT and the human capital experience to enhance customer’s interactions with their organizations.

In the survey, 55% of the respondents said that the top business issue was customer relationships. However, this same group indicated that only 32% believe that, customer relationships were a top priority for IT spending within their company.

How does this match up with your own organization?   

Have you laid the groundwork to take your organization forward only to pull back on the reins at the critical moment of project approval and selection?

One of the most important things you can do as a leader in your firm is to provide adequate and timely feedback to your team.

Timely feedback gives you and your team members the chance to begin a dialogue about areas of success and areas that need improvement. Relationships are built one conversation at a time.

If feedback is negative, phrase your conversation in such a way that it is constructive encouragement rather than blame or judgment. 

Begin on a positive note, find something that was successful. Sandwich the negative feedback between positive points.

For example:

“John, I’m really glad you got that report to me on time. I’ve noticed that you have missed several important conference calls recently. How can we work out a schedule so you will be able to finish your work and still be able to join in on the calls? I was glad to see you help Tina yesterday. Thanks.”

When giving feedback, remember to be an active listener. By doing this, you will be able to judge how well your comments are being received and understood. A great resource for this kind of communication is the book, Fierce Conversations, by Susan Scott.

Waste elimination is one of the most effective ways to increase profitability in businesses. To eliminate waste it is important to fully understand exactly what waste is and where it can be found.

There are six common causes of waste in an organization. They are:

• Overproduction – You’ve heard of 'Just in Time', well overproduction the result of 'Just in Case.'

• Waiting is a cause of waste when the material flow is poor, production runs too long or the distances between work centers are too great.

• When transporting goods, there is an opportunity for damage/loss to occur and quality to deteriorate.

• Inappropriate Processing - Are you using the right tool/process for the job?

• Unnecessary inventory will occur as a direct result of overproduction and waiting.

• Defects – They cost money either now or later and their costs come directly from the bottom line.

Audit each of the issues and estimate the cost to your company of each waste. Then use a Force Field Analysis to make a plan to address each area. The Force Field Analysis process was detailed in an earlier EP from June 2007. 

If would like a full white paper detailing the Force Field Analysis, send me an email to gregshead@pkftexas.com

How good is your strategic plan? Do your link your strategy to your budget? Most organizations don’t and then they wonder why they don’t accomplish their objectives. As I visit with business executives one interesting thing keeps coming up.   They indicate that they succeed in spite of themselves. My response to them is, “Are you really succeeding?”   Or, are you just lucky. Lucky that your customers need you or the products you represent.

Recently some best practices in strategic planning were released by The Hackett Group in their book The Strategy Gap. This book highlighted eight planning best practices of high performance organizations.

• Good plans answer key directional questions.
• Good plans typically address three activities.
• Good plans-and organizations-are focused.
• Good plans include all aspects of the business.
• Good plans link strategies to activities.
• Good plans are measureable.
• Good plans include assignments to accountability.
• Good plans include the recording and monitoring of assumptions.

The key of course is to get Senior Management, Operational Management and Line Management all working on the same things in concert with each other.

Good budgeting is paramount organizational success. Jack Welch suggests the real world situations can be addressed if organizations are willing to tackle two key questions during the budget process: “How can we beat last year’s performance?” and “What is our competition doing and how can we beat them?”

Most companies have some type of strategic or tactical plan that tries to answer those questions. But the real difference is how many also link their budget to the answers to those same two questions? If you plan only addresses costs and revenues, you are probably going to come up short on the outcome at the end of your year. Your plan was not a good one. You need something else.

Budgeting needs to be linked to your strategies and organizational goals. Otherwise your competition will be getting the jump on you.

As we roll into the second quarter of calendar 2008, I thought I might take a moment to focus on some interesting research about sales, and new customer opportunities. Here is some recent research on the topic.

• More than 70% of sales leads are never followed up, while 43% of those not contacted purchase what they inquired about within 13 months. Source: Cahners Publishing
• Companies that retain 5% more of their customers can boost corporate profits a minimum of 25%. Source: Bain & Co.
• Over 80% of generated leads are never followed up or are dropped or mishandled. Source: Abderdeen Group
• An 11% reduction in dropped/lost leads, combined with a 1% improvement in lead to order conversion rate, can increase gross profit by 136%. Source: BtoB Magazine

It’s pretty clear from this research data that successful companies that are finding new business have established a process for the recording, distribution and follow up of sales activities within their organization. Most people call this Customer Relationship Management or CRM and the related activities. The activities and the attitudes your employees take in these processes is critical to having a successful CRM program.

How successful are you?

There have been several high profile cases of fraud in the news in recent years. How do you take the steps to reduce the opportunity for fraud in your organization?

The most common methods of discovering fraud were tips and by accident, followed closely by internal audits, investigations, and internal controls. Tips from employees, vendors, and customers made up over one-third of the discoveries.

The most effective method of reducing fraud in your organization is by creating a culture of integrity and high ethics among employees at all levels. This is initiated by the senior executives/owners setting the tone at the top. Create the expectation that fraud will not be tolerated. Develop a code of ethics and conduct that employees are required to sign and adhere to.

Review your antifraud processes and internal controls and develop a strong oversight process. These two activities go hand-in-hand in sending a strong message to potential perpetrators that you are doing everything you can to reduce the opportunity for them to commit fraud upon your company.

Ask any four people in an organization about their budgeting process and you are likely to get four different answers. Some of those answers would include: “We did it last year,” “its part of the manager’s bonus calculation,” “We are trying to control expenses,” “It shows us our cash flow.” Truly successful organizations know that budgeting is one of the significant foundations for developing a high performing organization.

See if this sounds like your company:  Round 1 of the budget process starts with departmental levels submitting their guesses for obtaining next year’s financial results. Senior management usually knows what they want these numbers to be, but they don’t share it with the first line department heads.   The first round is usually returned with changes. Now armed with better financial information the departmental manager can guess at the numbers their superiors want and budget for it. Then the departmental budgets are consolidated and submitted further up the line for a second round of guessing.   

The problem with this process is that we now have a numbers guessing game going on, instead of a business plan. And we have given the departmental managers a way out of their estimates since the estimates weren’t theirs anyway.

Budgeting should be part of a performance management process. Budgets need to be linked to corporate strategies. How well is your budget and corporate strategy linked?

Companies around the world are now “going green” for a number of reasons. No matter the size of your contribution your business can make a difference. Consider putting together an internal committee to advise on activities that would make sense for your business.

It may seem obvious, but many companies do not recycle plastic water bottles, cans, office paper and newspapers. And recycling programs can include more than just paper and plastic. Many nonprofit organizations will gladly accept electronic equipment, including older computers, printers, copiers and fax machines. 

Contact a local recycling center that will remove useful parts and then break down the rest of the materials. The centers also can safely remove hazardous materials.

Companies can minimize costs in their workplace by encouraging positive habits, such as turning off computers and power strips when you leave for the day or an extended portion of the day. Energy is still burned when a power strip is turned on.

By implementing just a few initiatives you can improve your environmental footprint, and you may be surprised about how well it aligns with your overall strategy and positively impacts your business.

With the recent release of this season’s hurricane report, now is a good time to assess your company’s disaster preparedness. Can your company survive if it’s hit by a tornado or have an IT meltdown?

Having a disaster recovery/business continuity plan is critical to protecting your organization, should a devastating event occur. 

The plan should take into consideration the following: personnel, internal and external communications, technology issues, facilities, electronic payment systems, liquidity concerns, financial disbursement and manual operations. 

Make sure you take the time to review your procedures at least annually, if not every six months.

The Small Business Administration has several comprehensive documents on their website, sba.gov that can assist in the development and implementation of your plan. 

Being prepared for disaster is something you can’t afford not to do.

A major research study by Harvard Business School professor Marco Iansiti and Keystone Strategy Inc., proves that information technology can confer a competitive advantage. Companies in the top quartile of Iansiti’s study reported average compound annual revenue growth rates almost seven percentage points higher than the growth rates of peer companies in the bottom quartile.

Iansiti based his conclusion on data from 161 large manufacturing enterprises in the U.S., Europe and Japan. The companies were rated on the effectiveness of their use of IT in 40 business processes within five key functional areas, including finance and operations, sales and marketing, and partner and supplier management. The rankings were based on the breadth and depth of their IT use in each area.

The study’s conclusion:  there is a direct correlation between an organization’s IT capability and its financial performance.

Iansiti’s study does more than document the superior performance of organizations with more advanced IT capabilities. It goes a long way toward explaining why they outperform. “IT enables managers to handle more complexity,” he says. “And when managers can handle more complexity, they can scale up their organization.” In short, IT doesn’t just make growth possible—it makes it manageable.

We are evolving toward one world of business—a diverse yet unified global market, with customers, partners, and suppliers who work together across cultures and continents. The global workforce is always on and always connected.

As a business investment, technology has the flexibility and capacity to adapt as your people increase their own capacity and output.   More specifically, we believe you can amplify the impact of the people in your organization with a business productivity infrastructure built on the 2007 Microsoft Office system.

Three key solutions form the core of this system:

1. Pervasive messaging, workspace, voice, instant messaging, and conferencing capabilities simplify how people work together.
2. Forms, documents, records, and Web content management and search technologies streamline the management of information and processes.
3. Reporting; analysis; scorecards; dashboards; advanced analytics; extraction, transformation, and loading (ETL); data mining; and data warehousing technologies improve business insight and drive business performance.

When you don’t have the budget to bring in a full time business consultant, consider using your existing professional services resources, such as your accountant or lawyer, as a trusted business advisor and consultant.

They can see an overall picture of your business may be able to pinpoint the root of an issue because they are removed from the situation. Talk to them about what exactly you are looking to accomplish.

Also, they often have the advantage of a diverse client base that can be excellent referral sources. 

When you want to take your business to the next level, you have more resources at your fingertips than you may think.

Want to outdistance your competition? Then give your people the information technology tools, infrastructure, and support they need to do their jobs well.

That is the main message from a July 2007 study of more than 1,300 business executives at companies in North America, Europe, and Asia-Pacific. The study sponsored by Microsoft Corporation and conducted by the Economist Intelligence Unit (EIU), examines the effects of "people enablement" from several angles.

Among the conclusions the study reaches are:

• The more a company empowers its employees to make decisions, the more likely it is to perform better financially and competitively.
• True enablers use technology to improve collaboration, encourage risk-taking, and optimize decision-making.
• Companies categorizing themselves as "true enablers" are three times more likely to be more profitable than their competitors.
• Compared with other types of firms, companies described as "true enablers" have a higher proportion that are more profitable than their competitors.

The study clearly shows that there is a positive correlation between a higher degree of enablement and corporate performance.

What Does "Enabled" Mean?Enablement refers to the organizational structures, informational technologies, and other resources that make it possible for employees to make decisions.

In today’s fast paced marketplace, you can’t afford to get passed by your competition.

Customers usually know the difference between the companies they purchase products or services from. The ability to be pro-active and not reactive when analyzing your competition is important.

Competitive intelligence can help you anticipate trends that are unique to your business or industry.

It can also give you the ability to plan and make strong moves that address both strategic and tactical goals.

If there are areas of your company that need improvement, look to firms who have successfully overcome the same obstacles as a model. 

Knowing about your competition can help you chart the course for the success of your business.

When all things are equal what sets you apart from other companies in your industry? Often it is the positive perception of your firm in the marketplace. 

Have you received a glowing testimonial from one of your clients lately?

Gain permission to use this testimonial as a part of your proposal process. Testimonials carry much more weight than just a list of companies you do business with.

Your clients can be some of your biggest advocates supporting you in the marketplace. 

Potential clients can see the quality of work you will do for them and that there is an outside source willing to confirm your reputation. 

If your clients are happy, it will attract others who want to be associated with excellence.

Most economists would agree that we are in, or soon to be in some type of economic recession. Based upon past results one of the first areas that seem to see the budget axe is advertising budgets. However a recent research study by Forrester Research would suggest that Interactive Marketing that delivers results probably won’t suffer this time around.

One the key reasons for this is that Interactive Marketing target the decision to buy, versus brand awareness.   Two areas that seem targeted for investment include: Search marketing and email marketing. 

Past history suggests these types of media get cut in tough times.   But something has changed since 2001, social applications actually work.   Forrester suggests that they work because: 1) Well-designed social applications are effective; 2) They’re cheap; and 3) They motivate consumers in the middle of the funnel.

As a senior executive at your organization you will probably be involved in these types of discussions. Make sure you get Interactive Marketing with results.

To provide effective technology and productivity tools for mobile and dispersed workers, companies need to deploy, maintain, and support mobile PCs and devices while maintaining a high level of security. By providing a more secure and seamless way to exchange information, Microsoft mobile solutions can help employees be as productive outside of the office as they are when they're at their desks.

Mobility adoption can start with people accessing e-mail on handheld devices, such as personal digital assistants (PDAs), or editing documents on a mobile PC while on the go, but companies are realizing it does not stop there. Mobile connectivity helps remote workers more securely access vital data and intellectual property (IP) assets. Mobility is opening frontiers in communication, corporate information access, data synchronization, document collaboration and sharing, the network, user settings across hardware, and more.

Today, doctors send prescriptions electronically to pharmacies from their mobile PCs or handheld devices, insurance companies manage claims through electronic forms instead of paper-based processes, and services are conducted using devices that upload customer information from the field.

Mobility is helping to improve business productivity and processes, and companies are learning how to create a competitive advantage by helping to give their workforce the ability to:

• Save time and increase productivity by quickly and easily accessing information when workers are away from the office, to capture ideas and thoughts from anywhere.
• Respond better to customer requests with access to e-mail and vital business information when workers are away from the office.
• Automatically synchronize files when their mobile PCs, Windows Mobile powered Smartphones, and PDAs connect to the corporate network.

Improve sales cycles and forge closer relationships with customers and partners through anytime, anywhere access to information that can help them improve responsiveness, complete a sale, or simplify a process for partners.

Manufacturing has always been an area with a strong need and ambition to integrate data from the shop floor to the executive suite, and back, to improve operations and increase innovation. Until recently, advances in manufacturing software were highly dependent on proprietary investments by the manufacturers themselves. Now off-the-shelf software has developed to the point that common infrastructure software, from Microsoft, can be used to drive the development of innovative solutions from the factory floor to the supply chain to the master production schedule. We've seen the rapid maturing of software for manufacturing over the past six or seven years.

What's more, the pace of software innovation will accelerate over the next 10 years. The increasing sophistication, interoperability, security, and usability of software will enable manufacturers to transition from rigid, process-based solutions based on costly, custom-developed proprietary technologies, to role-based solutions using familiar, centrally managed platforms. These applications will give workers the ability to configure the interface and the application to fit the way they work, enhancing productivity. Using these role based activities will create an empowered workforce.

The Value of an Empowered Workforce will show that:

1. People will lead and innovate, collaborating with suppliers, engineers and product designers using shared platforms to exchange ideas.
2. People will drive operational excellence. Manufacturers can excel by focusing on operational excellence-running their businesses more efficiently than the competition and at lower cost.
3. People will strengthen value chain partnerships. Agility requires working closely with suppliers and industry partners to reduce time-to-market, manage inventory and share financial responsibility if markets shift.  And,
4. People will build customer relationships. Manufacturers' employees must have the tools to meet their commitment to serve customers well.

With all the buzz in the workplace about mobility, Microsoft has developed Enable Your Mobile Workforce—a broad mobility solution that encompasses not only traditional handheld devices, but also infrastructure software, team collaboration tools, and line-of-business applications.

By giving your employees access to the near real-time data and vital information they need to do their work while on the go, your company can see many potential benefits, including:

• Greater worker productivity by decreasing time lost while on the road or telecommuting.
• Greater efficiency by replacing manual, paper-based processes and increasing the speed at which people can make business insights.
• Increased customer satisfaction, because workers can respond to customers quickly, even when they are away from the office.
• More security and protection for mobile applications and devices through new hardware-enabled data protection.

In addition, organizations can take advantage of scalable and flexible solutions that adapt to their business needs as they grow. Companies have realized that mobile solutions can be used to drive a competitive advantage and are making mobile workforce enablement a technology priority.

Companies are evaluating the mobile needs of all their information workers, not just those in the field. And mobile solutions have grown far beyond accessing e-mail remotely. Core business applications are becoming mobile and are broadening the reach of mobile applications in companies.

Social networks are everywhere. From facebook to LinkedIn, they are they hottest way to communicate for the next generation. The question is how can you make a social network work for you and your business? 

The application of social networking in the business world is evolving, and it’s worth jumping on the bandwagon. Right now, Linked-In is the go-to site for professionals, offering the opportunity to expand your online presence.

To begin building your online network, set up a profile and search for colleagues, friends and networking partners. The main purpose of LinkedIn is to be introduced to other professionals through the people you know. 

Linked-In can also be used to find potential clients, service providers, subject experts, and partners who come recommended. You can post, distribute and search for jobs. And find business opportunities.

Don’t add everyone to every social networking site you join. There can be some overlap, but to use each network efficiently, target who is a part of each of your networks.

Do your benefits stand out in a crowd?

These days there are a number of unusual benefits you can offer to attract and retain quality talent. Companies across the country are offering everything from pet insurance to a concierge service or housekeeper.

Survey your employees to find out which benefits would make the most impact. You might be surprised by the answers. Maybe they would like part of their child care or advanced education costs covered. Small things like free sodas or snacks can make a big difference.

Companies like Google offer a wide range of benefits to their employees including allowing pets at work.

Not all unusual benefits will be right for every company, but be aware of what can be offered and know your employees wish list. To compete in a crowded marketplace, making your benefits stand out can only help your company in the fight for talent.

Companies are discovering the value in having information workers do their jobs outside of the office. Work is no longer tied to a set, physical location. Communicating with others and accessing and working with information while away from the desk is improving the productivity of all types of professionals from consultants, sales representatives, and installation technicians to physicians, administrators, and store managers. Worldwide, 80% of companies are projected to start allowing their employees to work from home. According to research conducted by Gartner, "mobile workforce enablement is a top 3 technology priority for CIOs …"

Most mobile adoption has been driven by individual departments and point-specific solutions that assist, for example, sales and field service employees.   At this time of year our friendly UPS and FedEx drivers benefit greatly as well as us consumers with this technology. As mobile technologies become more reliable and wireless standards develop, companies are growing more interested in deploying integrated, organization-wide solutions that will drive positive business results and measurable ROI for the entire business.

This increasing demand has led to rapid growth in mobile software, ranging from more secure mobile e-mail, mobile instant messaging (IM), and mobilized corporate applications like customer relationship management (CRM) programs. When it comes to hardware, mobility has seen great adoption via mobile personal computers, as 75 percent of organizations now support wirelessly enabled mobile PCs.

Globalization, connectivity, regulation, and demographics are reshaping the landscape for manufacturers. In this new world of work, the ability to create, share, and act on information from a myriad of internal and external sources can help manufacturers compete more effectively and operate more efficiently amid rapid change and relentless pricing pressure.

People are the critical factor to success in this environment. Only people have the agility and resilience to identify and act on new information quickly to meet challenges or capitalize on new opportunities.

By surrounding people with powerful tools and the right culture, manufacturers can bring innovative new products to market more quickly and mobilize a network of suppliers in deeper, more collaborative relationships. Software amplifies the ability of people to more rapidly adapt to challenges. In addition, software enables employees to take advantage of opportunities more quickly, to better understand customers based on insights derived from both data and communications, and to build better partnerships because they have the ability to collaborate more readily.

Furthermore, empowered people can drive operational excellence by constantly improving products, streamlining practices, and sharing knowledge. And they can work responsively with customers to build high-value relationships to drive business growth if they have access to the software and solutions that empower people to take the manufacturing business further.

Companies who offer flexible work options are in high demand across the country.

Have you thought about a flexible work policy for your company? 

Things to consider include:

• Examine which positions in your company can have varied hours or can be performed remotely.
• Put into place a series of checks and balances to ensure work is being done in a timely manner.
• Switching from desktop to laptop computers, providing cell phones and subsidizing access to the internet from home that allows remote access for your employees.

When considering implementing a flexible work place policy, the most important feature is the demonstration from the top down of the commitment to the plan. Your employees have to know that they are encouraged to utilize the plan.

For more information about flexible work place initiatives in Houston visit houstontx.gov/flexworks.

Every year around this time, people begin to make personal resolutions but have you thought about resolutions for your business?

Evaluate your insurance coverage.

Every company needs insurance to protect against losses from unexpected events.

When was the last time your company’s insurance coverage was evaluated? Prepare a list of your business insurance coverages, policy dates, premiums, and payment terms.

Consider obtaining bids from various carriers or visit with different brokers for opinions on recommended coverages and to seek more favorable payment terms.

In the event of misfortune, a thriving business could end unless adequately protected.

Every year around this time, people begin to make personal resolutions but have you thought about resolutions for your business?

Plan for cash!

Management’s ability to get a firm grasp on cash inflow and outflow is imperative to a company’s ultimate success or failure.

Two of the best tools to help accomplish this are the preparation of an annual forecast and a zero-based budget.

Traditional budgets start from previous year’s spending and adjust each expense item up or down.

A zero-based budget starts at zero and forces the preparer to justify every expense. You may be surprised how much fat has crept into your expenses as you go through this exercise.

Consider which tool will work best for you and start the year off right!

Every year around this time, people begin to make personal resolutions but have you thought about resolutions for your business?

Take the time to analyze your expenses.

Profits generally increase though increased sales, decreased expenses or increased profit margins.

Review the detail of the company’s expenses and consider which costs might be reduced. During this process, evaluate your current vendors.

Does your business rely too much on certain vendors? Are there new, reliable vendors that could provide your company with the same or higher quality products and supplies at a more competitive cost?

Strategic thinking requires management to envision an ideal business outcome, work backward to determine the steps required and then develop a plan to get there.

The people throughout your business can drive it to greater success, but only if they have the tools and information they need. Software that's ineffective, obsolete, or difficult to connect to the other tools you use can become obstacles that stand between you and success. I recently came across a study from Forester that addressed the concept of Information Workplace and its hope for the future.

 In this study, Forrester notes that today's information worker relies on a disjointed set of office productivity, content collaboration, and portal tools. Forrester defines the "information workplace" of the future as being more simple, yet richer than today's tools by incorporating contextual, role-based information from business systems, applications and processes.

A gap has emerged between what they have now and the vision of the future that’s possible today. Challenges include:

• Dreamers lacking tools for brainstorming
• Problem solvers lack tools for sharing best practices and managing work
• Doers need tools to automate exception handling

Do you know where your Information Workplace resides?

Microsoft believes in a simple equation: the right people + the right tools = business success. But not everyone agrees. Some say that information technology (IT) has become so common that it confers few advantages on businesses that invest in it. Such arguments, however, focus on superficial measures. As a result, they arrive at ambiguous and sometimes contradictory conclusions.

In a new study, the Harvard Business School and Keystone Strategy examine how businesses deploy IT systems in areas that have a strong impact on business performance. They concluded:

• IT fuels revenue growth. Companies in the top 25 percent of IT capability grow revenue 6.8 percent faster than that of their peers in the bottom 25 percent.
• IT helps employees be productive. Firms in the top quarter of IT capability enjoy 23 percent more revenue per employee than firms in the bottom quarter.
• IT makes managers more effective.

Their study also reveals a simple truth: The single IT investment that makes the biggest difference in increasing employee productivity is an optimized combination of information access, security, hardware maintenance, backup/recovery, and messaging systems. In short, if you’re ready to make your business more people-ready, the first place to look for improvement is your core IT infrastructure.