Hopefully 2011 was a good year with forward progress in your business and/or career goals. Wishing you blessings and a prosperous 2012.

Kelly

The biggest lesson I have learned from this experience is that we have a different mindset when it comes to our personal finances. When managing cash for a business we tend to make fairly educated decisions. For example, we analyze why we need the new equipment and how it will create efficiencies. Or we have a list of reasons why the new item is necessary for the business or how it will be beneficial in the long-term. This does not appear to be the case with our personal monies.

As individuals we tend to participate in emotional purchasing. We buy what we want vs. what we need. We make impulse purchases (and stores know this, which is why they have so much “stuff” near the cash registers). Or we can be guilty of buying something when it is on sale so we can brag about what a great deal we got.

One of the guest lecturers had a tool that showed the difference in the amount of money someone would have if they invested 5 percent of their income over a 20 year period. He then compared this to how much money they would have if they increased the investment to 10 percent. This difference was staggering. If we could all cut out 5 percent of our spending and put that money into a savings account we would all be much more prepared for retirement.

Personal financial planning does take time. I have learned a lot about my own personal goals and limitations during this process. It was interesting to see what my net worth is as I haven’t completed a balance sheet using my personal information before. Where you really see your spending habits is in the creation of an income statement. Once you see where you are spending money, it is easier to make changes.

So set aside some time to write your short-term, intermediate and long-term financial goals. Then create a balance sheet to determine what you own and what you owe. From there complete a summary of your income and expenses. Find an area or two where you can reduce your spending and allocate that money into a savings account. You are on your way to financial freedom.

Over the past few years I have been a supervisor watching teams interact and progress toward a similar goal. Some teams function seamlessly, while others struggle from beginning to end. In my experience, there are some general rules that allow teams to work well together. First, each team member respects all of the other members. This is a simple concept, but not always easy to practice. It doesn’t mean that the team is made up of good friends, but rather a group of people who can accept each other and capitalize on their individual strengths. A good team is more likely to share in the work load equally, or at least in proportion to their skill level. In these teams, communication occurs often, respectfully and professionally.

When a team isn’t functioning well I will look at the three factors that make a team work well together. If one member of the team makes judgments or doesn’t like another members personality there will be problems within the group. Which also means the communication will suffer. With poor communication it is likely that one or more members of the team will be burdened with the work load of the project. Generally, a team that lacks the ability to communicate effectively will not be able to resolve the conflict.

A few key points about a recent team I am managing helps me to understand why they are having a difficult time working together. First, two of the members made judgments about the other member, Mark, because he is a little odd. He says funny things and seemed to be argumentative to the point the other two didn’t think he understood the project. But in reality, Mark was challenging their ideas so their project would be better. When the work load was allocated, Mark was given very few things to do because no one thought he was going to add any value (because of the judgments they made about him). There is very little respect amongst the team and communication is infrequent.

Some lessons learned from my recent team. Before a supervisor is brought in to help resolve the conflict, the members of the team need to communicate with each other about why they are unsatisfied. It is not the role of the supervisor to break the news to the team member who isn’t performing, it is the job of the team. The team must create their own action plan for how to resolve the conflict. Taking ownership will help them move forward faster than if the solution is provided to them. It is not important to like all of your team members; however, it is important to respect them. It is good to provide a second chance, but a third or fourth is unnecessary and counterproductive to the overall team. Remember, you all have a common goal.

One company recently offered pay raises to their employees because they were experiencing a large turnover. While they may not have been upset, at least financially, to see one or two staff people leave, they became concerned when there was a large number of employees leaving for higher paying positions. To solve the problem they responded with mid-year raises.

Sometimes when you are an employee you have little say in what projects you are given or your schedule. I know a woman who left her job because her employer would not honor a request to change her schedule to make the working hours more “fair” between her and the other people who were in the same position. They were surprised when she gave her 2-week noticed and asked her what they could do to entice her to stay. She informed them she had requested a change to her schedule and because no change was made she found another employer who offered her the schedule she desired. They promised her a better schedule, but it was a little too late as she didn’t trust them to follow through on their promise.

Another person was given a project they were not truly skilled for. There are other people in her company who have more experience and skill in the area. In addition, her to-do list was really long and she had asked work be allocated to other people, when possible. The fact that she was given a project where she is not the expert will require her to work additional hours to complete the job. While she plans on completing the project, she is frustrated.

Small business is the driver of our economy. It is understandable that some companies are having to make due with fewer employees to get the job done. Which means some employees are being given tasks/projects that they are not skilled in or are required to work additional hours. But hopefully many employers recognize the demands they are making of their staff and acknowledge the efforts being made by their employees. A simple “Thank you” or “You are doing a great job!” can go a long way in keeping people satisfied. When the economy improves hopefully your employees do not go looking for a better working environment, as turnover is very costly, even in a good economy.

As I reflect on the past year, I am thankful for right where I am in my life and my career. I enjoy my work, especially teaching, and more opportunities are abundant this year than one year ago. I am thankful I have been lead down this path as it is not one I would have consciously chosen. Never would I have imagined myself in the classroom year after year and still loving it.

Where are you at in your business? Are you where you thought you would be? If not, what can you do in the new year to get on track? If you are, give yourself a pat on the back to congratulate yourself for your achievements.

Have a wonderful holiday weekend.
Kelly

I am asking these questions because I have seen people change their level of motivation purely by letting them know that I care. Last term, I had a handful of students who were doing the work just enough to get by. This term, I have a couple of some of those same students and I have noticed a change in their behavior. While I think the topic this term is a little easier to understand, I am encouraging them just a little bit more than I did last term to stay engaged. And they are doing just that.

My tactic is to send gentle reminders about items due. In addition, I offer praise when they do the work on time or correctly. Seems simple enough. I’ve come to realize, though, that not all instructors or supervisors do so. In fact, one of my students thanked me for providing detailed feedback in the areas where she didn’t get the problem correct.

The tone and way people communicate are different when you offer praise instead of criticisms. I’ve started to apply my “teaching” concepts at home. Instead of telling my daughters they are smart or they did a good job, I am very specific in what they did correctly or where they can make improvements. In topics that could cause debate, I start by praising my husband or letting him know I am not mad before I tell him my thoughts.

A good manager can help mold a subordinate into an good employee that in turn becomes a good manager. A leader knows how to deliver bad news or criticisms in a way that does not degrade their staff. I think we could all use some positive critique along with some well deserved praise for a job well done. Don’t you?

The book Everyone Wins! that I posted about last week was about conflict resolution. The Love and Logic book is about teaching children how to think for themselves so that they can problem solve and make good decisions on their own. Sometimes letting a child fail teaches them more than if we were to forcing them to succeed. One of the examples in the book discusses letting a child miss the bus and being confined to their bedroom for the school day. Their parents inform them they need to explain to the teacher (and the school) why they missed class as the parent doesn’t write an “excuse” letter for them. Most children don’t miss the bus again.

What if you let one of your staff miss a deadline for a major project? Would you have the guts to let that person explain to the other employees why they missed the deadline or would you try to finish the project yourself so that the deadline could be met? If that staff had to take responsibility for failing to complete a project as promised and there were consequences (such as an CEO or deductions in pay/missed bonus opportunities) it is unlikely that they would miss a deadline again.

If these concepts were applied in the business environment it might be a little frustrating for the supervisors at first, but in the long run they would end up with better employees. Even though Love and Logic is not a business book, it is about creating positive and respectful relationships as well as teaching the “younger” (younger does not necessarily mean a young person) staff responsibility. Don’t we need these skills in business too?

This book is a MUST read. I am not saying this because I know the man who wrote it. It is full of great advice, stories and exercises. Yes, exercises. If you have any type of conflict in your life, business or personal, you need to get a copy of this book.

As Larry mentions at the very beginning of the book you need to read it with an open mind. If you are going to resolve any conflicts you are currently experiencing, you will need to be flexible and willing to change. Otherwise, you’ll continue to remain in conflict with the person you are trying to get along with.

Chapter 2 is titled “Give Up Your Need to be Right, Not Your Needs.” When I was a teenager, still in high school and soon to graduate I decided that I was going to stop fighting with my Step-dad, who I call Dad. We would argue about anything and everything. We both needed to be right. Not knowing how to resolve this conflict, I just decided to give up the need to be right. Whenever I noticed my Dad and I getting into a debate I would stop arguing. I didn’t tell him I thought he was right, but I didn’t tell him I thought he was wrong. Our relationship started to change. We didn’t fight anymore and our relationship is very positive now. I wanted to get along with my Dad, not fight with him. My need was about getting along, not about being right.

I have used a similar approach in other relationships and it works. As do the many other concepts in Larry’s book. Check it out for yourself, visit Larry Barkan’s website.

This got me thinking. How often do managers or business owners or coaches or parents admit they are wrong or made a mistake? What is the risk of admitting fault as compared to not doing so? While it most likely will depend on the situation and the people involved, it is generally a good rule to at least acknowledge the truth.

I have found that honesty is the best policy. When I first started teaching I was hesitant to admit I had made a mistake for fear that my students would think I didn’t know the material or question my fairness in grading. However, I found students are very forgiving when you admit you made a mistake, most of the time. They tend to trust and respect me more for admitting my error(s). I find this to be true with clients too.

I haven’t always been quick to admit fault. But it is so freeing to do so. In the workplace it improves your relationship with your staff. Consider two options. The first is to pretend like you didn’t make the mistake and place blame on someone else, probably your staff. When you do this you create conflict – conflict that could have been avoided. Now your staff doesn’t trust you, they don’t believe you know your stuff, and they are resentful that you blamed them. The second option is to admit your mistake. Your staff won’t resent you and they will probably develop a greater trust toward you. They know that we all make mistakes so it is unlikely they will start to doubt your abilities, unless you make BIG mistakes a lot.

Try it and see if it works. Maybe try it at home before taking the plunge at the office. You might just find your personal relationships start to improve too. Good luck.

To read more visit the ASCPA.