A Certain Truth
by Jeff Brown President of Comprehensive Search

There will be a tomorrow and it will be better than today.  Nonetheless,  we must contend with the reality that my business, the built environment industry is as most businesses very soft. Therefore, in this months article, I have a brief message on a global issue, then my ideas on what I believe each business manager must do now to improve the fortunes of our respective businesses.

On Tuesday, September 25, my wife and I, along with two other couples departed for a trip to Provance and Tuscany. This trip involved both business and some long overdue vacation time. In retrospect to not have gone would have given the terrorists another victory. Unfortunately, as evidenced by reduced occupancy on the plane, cancellations at hotels and statistics, many do not agree with me. It obviously raises the question as to where does prudence end and boldness start.

At no time did we feel in any type of danger. This includes the fact that twelve hours prior to our return, the bombing of Afghanistan began.  It was very gratifying to see and hear of the support for Americans throughout our travels.  Not surprisingly, business is much better in Europe. As an, I attended CERSAIE in Bologna, Italy in early October.  This is an exhibition on ceramics for the building industry and bathroom furnishings. Like most European shows, it covers many buildings.  I do not know anything official, but by all accounts, the place was packed. My opinion is that the European product designs in these products is superior to much of what we see here in the United States .  

Lastly, on the global scene, an editorial in the London Times said it well.  “We need to individually commit to a global contract that should have a respect for cultural differences, help those less fortunate and to collectively fight terrorism.”   He believes that we are now ready for this global contract, and I totaly agree.

Now to the business at hand, which is increasingly difficult for all of us.  While it’s obvious that times like this call for us to be more efficient and productive, provisions to get us there are often late, absent or misdirected.  I believe that we need to determine our core competencies and pursue them aggressively in the respective niches in the marketplace where we can profitably operate in today’s environment.  As referenced above, product/design needs to appeal to an audience that will purchase at reasonable profit and volume.  All of our employees need to be challenged, trained and held accountable for improved performance and higher standards. Those who fail need to be let go quickly.  If replacements are needed, seek out and hire only the best. 

All positions, especially those in management need to be analyzed to determine whether they are really needed or could they be absorbed into a lower level position without overloading. Full time positions should be examined to see if part time or even contract work is more appropriate.  Correspondingly, a review of all compensation plans needs to be done. The truth is that many of them have little relationship to skill involved, supply and demand, or even actual performance.  It seems that too many businesses have a hardened rule that you cannot reduce someone’s base compensation.  If done strategically, the effect on the bottom line is equal to eliminating positions without losing good people or overworking those who remain. Most employees offered the choice of less pay of risk lay-off choose a pay cut. These choices are tough and egos may get bruised but many company's are facing extinction, survival mode requires a different mindset.   

Benefit programs need the same type of scrutiny.  Some were okay when times were better, but not justifiable now.  Review your Healthcare coverage and consider a less costly HMO option, if you don't already,  more company co-pay, higher deductibles, and, yes, possibly higher employee paid premiums.  If you do this, normally you will notice a reduction in claims with little, if any, resultant deterioration of your employees’ health.  The point is, the present healthcare system is abused because of the way that many group insurance plans are structured.  It is time to introduce the element of more personal responsibility; you motivate such with the changes just mentioned.   

Another area right for improvement is the amount of time that you actually get on business matters.  Abuse of the phone, e-mail, surfing the web, coming in late, leaving early, extended lunches, absences, non-business related conversations with co-workers, etc. are devastating to productivity.  If you do not have good policies and good enforcement of these things, you could be wasting upwards of 30% of the total compensation. While in a good economy you may be able to accept some of this behavior, now is not that time. 

In this economy, some real talent is going to be suddenly available.  These winners can bring you quick and profitable business or dramatic improvements in efficiency and productivity.  Think seriously about actively searching for and  hiring  them.  If you have done as suggested above, you will have extra monies to make the initial investment which should be quickly repaid if they are as good as the ones that we have seen, and within reason, you allow them to "do their thing". 

In regard to sales and marketing, many of your competitors will overcorrect.  If you do as suggested above, structure the compensation to incentivize desired results, invest in effective merchandising, promotion and marketing plans, get your sales organization thinking outside of the box and making more calls, you will get a larger share of a smaller pie. 

Summary;  as a manager, you have got a lot to do, but there has never been a time when such is more needed.  Let us know if we can help