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How To Make Mistakes

How To Make Mistakes

Promoting risk taking and eliminating fear of failure.

It would be a mistake to try to avoid all mistakes. Indeed, it would be a colossal blunder to attempt doing things right the first time, every time. In todays light speed economy, (”new” economy and “old” economy) if you don’t fall on your face both regularly and painfully, you are likely to end up dead instead. The only people not making mistakes are ones playing their game without risk and without novelty – and I mig…

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s: Mistakes,Business Coaching, Breakthroughs, Critical Success, High-performance, Executive coaching

Promoting risk taking and eliminating fear of failure.

It would be a mistake to try to avoid all mistakes. Indeed, it would be a colossal blunder to attempt doing things right the first time, every time. In todays light speed economy, (”new” economy and “old” economy) if you don’t fall on your face both regularly and painfully, you are likely to end up dead instead. The only people not making mistakes are ones playing their game without risk and without novelty – and I might add – without progress. If your company cannot accommodate, even reward, failure – in the long run, you cannot succeed.

Why? Doing things wrong, is the number one – perhaps the only – source of innovation. David Kelly, CEO of design firm IDEO, says, “…enlightened trial and error beats the planning of flawless intellects…The reason is simple: the best solutions to most problems are rarely the most obvious.” James Joyce said it poetically, “Mistakes are the portals of discovery.” Think about it. What did you ever learn by doing something right the first time?

IBM’s rumored motto about mistakes is legendary: Fail Faster. Since the road to success is paved with failures, the faster you move through them, the faster you might find a way which works. Don’t prolong the agony, get it over with quickly, learn the most you can, and move on. IDEO’s Kelly says it succinctly, “we fail faster to succeed sooner.”

World leaders and scientists have wonderful legacy of being wrong in a big way. Edison’s tolerance for “mistakes” is renowned. The European “discovery” of America was a mistake. Even the invention of Teflon was a mistake.

Great companies also have a long and gallant history of failing. AMC’s Gremlin was a big flop, but paved the way for ever-popular hatchbacks. What about New York City’s World Trade Center, one of the first “cities in a building,” remained half-empty for almost a whole decade. There are many famous failed computers, including Apple’s Lisa and Newton or the Palm Pilot’s predecessor, Zoomer – evidence that failures breed innovations rather than stifling them. Not all business failures are so glorious. 65 out 100 business startups vanish without a trace within five years and 90% are gone within ten years. But we need these failures – without them there would no companies to survive.

If you are in the surgery business or fly airplanes for a living, you may not want to make any mistakes. But for the rest of us – especially if you are in a technology business – doing things wrong is prerequisite to doing things right. As the philosopher Ludwig Wittgenstein said, “If people did not sometimes do silly things, nothing intelligent would ever get done.”

Internet Time doesn’t simply mean working 18-hour days. It means trying lots of ideas, making mistakes, and killing off bad results quickly. Many “old economy” managers still want to take their time and make sure everything is thought out – all the I’s dotted, all the Ts crossed. Don’t do it! You no longer have that luxury – if you ever did. Don’t slow down your development cycle, speed it up.

In the spirit of failing quickly, here are a few ideas and tips for you to try out. Some will work for you. Others will not. Try and fail.

Don’t penalize mistakes, encourage them. How about rewarding them? Create a bonus for the most brilliant (or most flagrant) mistake of the month. Put risk-taking mistake-makers’ faces on your website or in your newsletter. Many companies say they encourage mistakes, but really intimidate and punish the mistake-makers. As soon as you begin to do that you foster a better-safe-than-sorry attitude. Instead, put your money where your mouth is.

What about having a regular meeting dissecting the mistakes-of-the-month, trying to learn their lessons. Train people to savor their mistakes, and understand the strange paths which led them astray.

Use rapid prototyping. This technical-sounding phrase simply means doing things quickly without trying to get them into final form, making mistakes and swiftly fixing them. Get something up and running – anything that resembles your desired solution. Then fix what isn’t working. And fix, and fix, and fix. This may be the best way to do product development in Internet Time, also known as creative trial and error.

When things go wrong, do you sound a hunt for the guilty? Don’t cast blame – commemorate mistake makers as heroes. One of the reasons mistakes go undetected – and progress slowed – is that people aren’t willing to take “credit” for their errors. Rather than calling attention to things which are off course (and risking their careers), they prefer to bury them for as long as possible.

Use the concept of a “breakdown.” When your car breaks down, do you blame the driver, or do you just fix the problem? When a project or a process is veering off course, treat it like a breakdown. Rather than spending time deciding who did what wrong, do this: restate where you are, where you want to go and figure out what will get you back on track. During the Iran Contra Scandal, President Reagan intoned, “Mistakes were made.” There was no admission of guilt. No fixing of blame. Perhaps we can learn from this brilliant locution.

Create a company of learners with a formal debriefing policy. Without one, learning from mistakes is just one more accident. Debrief everything – good, bad or indifferent. Use the four-stage catechism of the learning organization: What worked? What didn’t work? What was missing? What do we do next?

One way to really get things moving on a project is to declare a “state of emergency.” Emergencies mobilize people. They bring out the whatever-it-takes attitude, especially when they know that “mistakes” will be tolerated, and that mistake-makers will be lionized.

Forget about total quality and zero defects. You can’t afford it, especially in this day and age. Think of the 80/20 rule, or extend it to 90/10. There is a level of quality beyond which “mistakes” are a viable economic alternative. Unless the outcome of your product or service impacts life or death, the cost of perfection cannot be justified. Use the errors you generate as opportunities to improve your production process and practice great customer service.

Remember, the hallmark of progress is making mistakes.

Corporate Identity Management

Corporate Identity Management

Competition is great in the market world today and in order to get your business noticed, you will need good corporate identity management. You need to bring together all of the good qualities of your company as well as emphasizing what a great benefit your company will be to those who use your services. Good corporate identity management will do just that if handled properly. It will give your business a clear positioning towards your customers and prospective customers as w…

Keywords:
corporate identity, business management, business competition

Competition is great in the market world today and in order to get your business noticed, you will need good corporate identity management. You need to bring together all of the good qualities of your company as well as emphasizing what a great benefit your company will be to those who use your services. Good corporate identity management will do just that if handled properly. It will give your business a clear positioning towards your customers and prospective customers as well as your staff, suppliers, authorities, and even your competition. By making your business easily recognizable to those who want what your selling, corporate identity management will also play a key role in the development and maintenance of your business, and keep it running like a well oiled machine. In today’s world, we are all bombarded with information, every waking minute. Globalization increases competition, products are interchangeable, and new products come to the market at an ever faster rate. Every business is competing for our attention. Selection of a supplier is not solely based on price or availability anymore; customers have the luxury to choose suppliers they can identify with. That is why your company will need an edge of some kind so that when people decide they need the service that you’re offering, either your logo, or a witty saying, will automatically pop into the consumers head, in turn, they will seek you out. However, your business image is not the only thing that will get you noticed. How the press and advertisers perceive your company will rub off on the public also, so you will always need to stay consistent and make a good impression.

Consistency is very important in the business world today, unless you want to loose your business before it even gets off the ground, you can’t say one thing then completely do another. In order to ensure consistency in communication, you may need to ask for help from someone who know what their doing when it comes to corporate identity management. There are many good organizations that can help you do just that. They can take your company and create something that will be distributed all over, no matter what you’re selling. Another important aspect is that your staff needs to be able to identity with your company’s corporate identity so they feel comfortable with it. From your company’s reception area, to telephone manners, the design of all printed materials and Web sites, to public relations, every aspect of a business has to breathe its Corporate Identity to be believable and distinguishable. Only then will your business have the chance of being taken seriously in the market, and ultimately to succeed. The primary idea behind a corporate identity program is everything your business does, own, and service it provides, should project a clear idea of what you and your business goals are. A good corporate identity management system works well and keeps the important things on tract.

Database And Document Management Systems

Database And Document Management Systems

Different business organizations use different types of software to manage their documents. This software performs the function of creating, full text indexing, controlling the different versions of documents, retrieval, and so on.

Keywords:
Document Management Systems, Electronic Document Management Systems, Document Management System Software, Database And Document Management Systems

Different business organizations use different types of software to manage their documents. This software performs the function of creating, full text indexing, controlling the different versions of documents, retrieval, and so on.

The vital component of any document management software system is the inherent database management technology that classifies and tracks the documents created and stored. The database system locates and retrieves the requested document from the archives or from the documents under its control on the basis of query submitted to it.

The database management system prevents unauthorized persons from accessing the information. Only users with passwords have access to the entire database or a portion of it. Any addition made to the data is carried out without altering the existing database. The system is also designed to filter out duplicate copies of the records.

For all documents created and stored, the database system generates a host of information about the documents. This information is maintained separately from the document itself. The information includes the name of the author who has created the document, the date of creation, the last occasion on which it was accessed and the subsequent changes made to it. The system also maintains information on the main topics or subjects contained in the documents, as well as details of documents that are relevant to the document requested for.

The database system has to be reliable and must have a high level of operational efficiency in managing large volumes of text-based documents, images, sound and video. The database may be either centralized or distributed, depending upon the data management software system installed in an organization. A centralized database, which stores document profile information in a single database, offers quick and efficient searching but faces the risk of losing information in case of failure or corruption in the document profile repository. In a distributed data base system the information is dispersed and stored at various points based on the company’s network or on the disk structure. This minimizes the risk of losing all the information, in case of failure or corruption.

Employee Retention: What Employee Turnover Really Costs Your Company

Employee Retention: What Employee Turnover Really Costs Your Company

It’s one of the largest costs in all different types of organizations, yet it’s also one of the most unknown costs. It’s employee turnover.

Companies routinely record and report costs such as wages and benefits, Workman’s Compensation Insurance, utilities, materials, and space, yet most companies have no and report the cost of employee turnover. It can be much higher than you think.

How Much is it Costing You?

Several well-regarded studies have recently estimated the…

Keywords:
employee retention, employee turnover, turnover cost calculator,

It’s one of the largest costs in all different types of organizations, yet it’s also one of the most unknown costs. It’s employee turnover.

Companies routinely record and report costs such as wages and benefits, Workman’s Compensation Insurance, utilities, materials, and space, yet most companies have no and report the cost of employee turnover. It can be much higher than you think.

How Much is it Costing You?

Several well-regarded studies have recently estimated the cost of losing an employee:

• SHRM, the Society for Human Resource Management, estimated that it costs $3,500.00 to replace one $8.00 per hour employee when all costs – recruiting, interviewing, hiring, training, reduced productivity, et cetera, were considered. SHRM’s estimate was the lowest of 17 nationally respected companies who calculate this cost!

• Other sources provide these estimates: It costs you 30-50% of the annual salary of entry-level employees, 150% of middle level employees, and up to 400% for specialized, high level employees!

• Do a quick calculation: Think of a job in your organization where there has been some turnover, perhaps supervisors. Estimate their annual average pay and the number of supervisors you lose annually. For example, if their average annual pay is $40,000, multiply this by .125% (or 125% of their annual pay, a reasonable cost estimate for supervisors). This means it costs $50,000 to replace just one supervisor. If this company loses ten supervisors a year, then 10 times $50,000 equals $500,000 in replacement costs for just supervisors. This is the bottom line cost. The top line cost? If the company’s profit margin is 10%, then it costs $5,000,000 in revenues to replace these ten supervisors.

Do These Numbers Seem Unbelievable?

Here’s an actual calculation from a well-regarded organization in my community. The HR Manager of this human services organization (housing for disabled persons, sheltered workshops, etc.), estimated that 30 entry level people leave his organization on average every quarter.

This averages out to ten people per month. Let’s be extra conservative and shave SHRM’s estimate (see above) down to $3,000.00 to replace each employee.

This amounts to $30,000 per month, or $1,000.00 in employee turnover costs every day of the month! Annually, this totals $360,000.00.

Actual turnover costs are usually much higher than we think they are – until we estimate them.

You may be thinking, “Some employee turnover is unavoidable, even desirable.” You’re right. Some turnover is necessary, to replace marginal or poor employees with more productive ones and to bring in people with new ideas and expertise. However, high turnover costs are both avoidable and unnecessary.

This is where companies need to focus their efforts. The goal is to retain valued performers while replacing poor ones.

Most companies group both types of performers together when looking at turnover. By doing so, they’re missing the cost and significance of replacing the good performers.

Why Don’t More Companies See This as a Costly Problem?

There are a variety of reasons this is not seen as a problem, all of which cost companies in expertise and dollars. How many of these occur in your organization?

1. No process is in place to tabulate costs. One survey found that only 44% of its respondents had a process in place to estimate turnover costs; 43% of companies relied on intuition, and 13% had no process at all. (1)

2. Costs are not reported to top management. It’s a business axiom that one of the best ways to get top management’s attention is to show them what something costs. However, most top management never gets to see turnover cost estimates because most companies don’t measure them – or if they do, they don’t report them to top management.

3. It’s an inescapable cost of doing business. Except, it’s not! While some turnover is unavoidable and desirable, most turnover, especially among your better and top performers, is largely avoidable. Thinking that turnover is just a normal cost of doing business is the same quality of thinking which says that accidents are just an inescapable part of being in the construction business.

4. It’s an HR problem. While HR needs to be a key partner in reducing turnover cost, this is a strategic issue requiring top management’s attention and actions, in addition to HR’s efforts, to resolve it.

5. Costs are underestimated, and so they register less concern. If costs are underestimated because the organization doesn’t agree on or know what to measure, the statistics generated either register less concern than they should, or are disputed and held in disregard.

What Costs Need to be Fully Estimated?

A comprehensive program measures the following costs:

Exit costs
Recruiting
Interviewing
Hiring
Orientation
Training
Compensation & benefits while training
Lost productivity
Customer dissatisfaction
Reduced or lost business
Administrative costs
Lost expertise
Temporary workers

There needs to be advance agreement among Human Resources, Finance, and Operations as to which cost measures will be considered valid. Then, it has to be measured and reported.

6. Waiting until there’s a crisis. I was amazed when the executive director of one organization told me she knew that one of her capable managers was unhappy, but decided it wasn’t necessary to take action because she hadn’t received a letter of resignation yet.

Prevention is what works best. Begin to measure your turnover costs and, very importantly, look at who is leaving so you’ll know if you’re retaining your best people.

The time to do this is now. Waiting until there’s a crisis to take action limits your options and success rate. It also often triggers the common response of offering more money to get someone to stay, instead of fixing the original problem.
Why Do So Many Retention Efforts Fail?

These are among the most common reasons company retention efforts fail, even when they’re implemented by capable people.

1. No assessment, so ineffective solutions are chosen. In their hurry to correct a costly problem, companies often forgo conducting a relatively brief and cost-efficient assessment in order to correct the situation faster. However, implementing a solution without diagnosing who is leaving, and why they’re leaving often results in solutions that are incapable of solving the root causes behind turnover.

Diagnosing the reasons behind turnover always pays for itself. Don’t start without an assessment.

2. Implementing too many solutions instead of the most effective solutions. Managers often brainstorm a number of plausible solutions, then implement many of them – especially those favored by top management. However, what is most needed is to select and implement a limited number of solutions which will be most effective at solving the problem. Implementing too many solutions, even good ones, will diffuse your resources and weaken your efforts and success.

3. No way of measuring success to know what works. How do you know which retention solutions you’ve implemented are working effectively and which aren’t, where you need to make refinements, and what strategies you need to drop if you don’t have a way of measuring your results?

How Do We Do a Better Job of Retaining Employees – Especially Our Most Valuable Ones?

First, rank your employees in three categories: best performers, middle performers, and lowest performers. Your objective is to retain your top performers; develop and retain your middle performers, turning them into near-top or top performers if possible; and potentially replace your lowest performers.

Second, agree internally on the measures you’ll use to calculate turnover costs. Be certain you’re taking all costs into consideration. Most organizations greatly underestimate them.

Third, report turnover costs to top management on a monthly, quarterly, and annual basis.

When turnover costs are unacceptably high, or higher than your industry’s average, do an assessment. Find out who is leaving and why they’re leaving. Exit interviews can help you find out why.

You need to know if it is your top, middle, or lowest performers who are leaving so you can gauge the expertise level leaving your organization. You’re obviously going to employ (and pay for) different strategies if your top performers are voluntarily leaving, compared to middle or lowest level performers.

Develop solutions capable of solving the problems you uncover, and only implement a limited number of them.

Measure the success of your retention efforts, and refine them.

Two Very Key Strategies to Save a Large Amount of Time and Money.

Very key strategy # 1: Don’t wait until turnover costs become unacceptably high before you implement an ongoing retention program. Put a retention program in place before you have crisis situation. You not only must find out why employees leave your organization, you must also find out why others stay.

Very key strategy # 2: Survey your top performers now in order to find out what keeps them there, why they might leave, what type of competitive offers they may find attractive, and what they need to be happier and more productive in their jobs. You’ll do a better job of keeping them (along with their expertise and value). You’ll also find out highly beneficial information about improvements your organization needs.

This means driving improvements in your organization by what your best people tell you, instead of focusing on taking care of the ever-present complainers in every organization.

Just How Valuable are Retention Efforts? One source estimated that a 10% reduction in employee turnover was worth more money than a 10% increase in productivity, or a 10% increase in sales!

Retain and gain.