2004 Human Resources New Year Resolutions

Reserved

This article is the second in a series where we'll cover the hows and the whys of the 2004 Small Business New Year Resolutions published in this space a few weeks ago. In that article I only had room to list several resolutions in seven categories. These articles will cover why the resolutions are important, and how to accomplish them. And this article is about how we manage the humans in our business, including ourselves, the owners.

From the time of the first interview to the day they leave our employ, there are dozens of issues that all small business owners face in managing the humans who work with us. There are many human resources activities that I could address in this article, but the ones I have picked out are those that I think could use a little extra emphasis.

Resolution One: I resolve to provide more training for my employees, especially in areas like:

- Salesmanship
Perhaps the most egregious errors small business owners perpetrate on themselves is sending someone they have anointed as a salesperson into the marketplace unarmed. If you think selling is more art than science, more talking than technical, then I am probably talking about you.

I'm not concerned about product specifications and pricing strategy; you'll do a good job of training in that area. But in the 21st century, selling is more about problem solving than products - more about the human interaction than the industry.

Small businesses rarely have a competitive advantage through products or pricing. Our most effective tool is building relationships with our customers that make our business the place to go for solutions. Make sure your salespeople are armed with professional sales training, especially in what motivates those humans we call customers.

- Leadership
There will always be more hats to wear in your small business than heads to put them on. To a much greater degree than in big business, employees of small businesses have to be able to perform tasks in a number of areas on any given day.

Obviously, performance requires technical skill, which training you no doubt provide. But how would you like to see the performance of your business take a quantum leap? You can do it if your people become leaders. Among other things, employee leaders take initiative, assume ownership of their assignments, and work as team members.

If you want employee leaders, you must do three things:

1) Hire people who are capable of being leaders. Everyone isn't. There are personality tests available that can help you find people who can become leaders.

2) Provide formal leadership training, which is often available through a local college or university, or the chamber of commerce.

3) Do your part by delegating the responsibility AND the authority. And when your people fail while making an honest effort to perform, don't ask them why they did it, but rather what did we learn?

- Organization
A small business cannot afford to be unorganized. Incrementally speaking, wasted motion and resources are no more expensive for a small business than a big one, but they do put a small business in more jeopardy of failure.

Look at your operational systems to see if they're creating disorganization. If so, change them. Then get organization training for those individuals who need it, which might well include you.

- Technology
For years, small business has been defined by number of employees. In the future, more emphasis will be placed on sales volume instead of staff. What has changed this definition? Technology.

Historically, when Henry Ford or Harriett the wholesaler wanted to grow their businesses, they hired more people. Today, if you want to grow your business, you add technology first, then people.

But technology is an ineffective lever without properly trained technicians. Basic training in the technology your business uses will deliver increased production. But if you want to taste some of that performance gravy, maintain a continuous and advanced technology training program.

- Teamwork
If you have one employee you have a team. Any questions?

Teamwork is not intuitive. Without a clear understanding of how individuals work within a team, and how teams work together to accomplish corporate goals, ego, competition, and other human characteristics can create damaging impediments to effective teamwork.

Back to my "too many hats, too few heads" analogy, small businesses cannot afford the inefficiency of poor teamwork. That's why teamwork cannot be left to chance. Even people who generally get along with others aren't always good at teamwork. Individuals need to be trained in how to work on a team, and teams need to be trained on how to work with other teams.

Find and deliver teamwork training to your organization. Effective teamwork in a small business creates more profits, more fun, and is a thing of beauty.

Resolution Two: I resolve to praise more in public, and criticize more constructively in private.

Praising a worthy employee is an excellent motivational practice. Praise in front of others makes it more valuable for the recipient, identifies your standard for praise, motivates others, and demonstrates your willingness to recognize performance excellence. Praise well-placed and well-done can help you keep an employee who is being courted by another company, even when more money is offered.

Few things are more counterproductive than reprimanding an employee in front of others. Such behavior demotivates the recipient, makes others uncomfortable, and makes the manager look unprofessional and small.

Since EVERYONE is capable of falling short of expectations, redemption may be the most powerful concept in management. Constructive criticism, which presumes redemption, only works if it is given quietly, privately, and sincerely.

Resolution Three: I resolve to assume the attitude that the fastest way for me and my company to be successful is if I focus more on helping my employees to be successful in each of their assignments.

The most successful managers in the 21st Century will be those who subordinate their ego and the need for immediate personal gratification to that of their people. Business ownership is a game where everyone wins when the owner comes in second by making sure that employees find success first. And all of that employee success ultimately aggregates for, and accrues to, the owner of the business.

Resolution Four: I resolve to upgrade key employee ranks, so that I have the very best heads upon which to put the many hats we have to wear.

Every employee in a small business must be versatile, competent, and have a good attitude. If you have employees who don't fit this profile, your ability to compete in the 21st century will be diminished.

Identify the keepers, praise them, equip them, train them, and pay them well. Get rid of everybody else.

Resolution Five: I resolve to be a more competitive employer to prospective and current employees by focusing on ways my company can add value to their professional development.

Small businesses MUST employ good people. And regardless of whether the unemployment rate is zero or 10%, good people are ALWAYS in demand. The best way to make sure you hire and keep valuable employees is by making sure your company is a GREAT place to work.

How do you do that? I'm going to make this one short and sweet: Do all the things identified in this article and you will have good people standing in line at your door with resumes in hand. By the way, that same line blocks the door so that the good people you have won't leave.

Resolution Six: I resolve to be a better listener.

Now that you've hired smart, professional, and competent people, don't forget to listen to what they have to say.

Write this on a rock - Thinking of yourself as the boss of those who work with you in your business is passe and unproductive. Instead, think of yourself as the steward of their success. If you make sure your behavior, the work environment, and assignments are conducive to your employees' success, ultimately you will be the big winner.