July 2008

I was thinking about Italian economist Vilfredo Pareto today.  Well, not so much Pareto as his famous saying that 20% of the people own 80% of the wealth.  Historically, we’ve taken creative license with his words - 20% of our customers generate 80% of our revenue, 20% of the people create 80% of our headaches, etc.

That leads me to the next topic on the list of things you need to know: PROJECT MANAGEMENT.  Pareto’s principle is actually one of the most effective tools used in project management because it teaches us how to stop using 80% of our resources to generate 20% of our profits.

Project management is a science with a defined methodology.  It’s about achieving the scope of a project while at the same time maintaining quality, optimizing resources, and fulfilling deadlines.  It’s the classic 3-legged stool with results, resources, and time as the legs and a bucket of water on top called the scope.  If you effectively manage all the components, then the water (or scope) won’t spill over the side.

In today’s economy, we are all being asked to do more with less.  Doing more doesn’t mean physically doing the work.  It means making sure that the work gets done and, usually, with fewer resources.  That’s where the tools of project management become critical.  Maintaining balance on the 3-legged stool will result in greater performance with efficient utilization of resources.  That translates into a higher profit margin.

And learning the discipline of project management can reap everyday benefits in your career.  While you might not create a GANTT chart every day, you will engage in communication.  And, that’s what project management is about - communicating.  As a project manager, you have to communicate everything from the goals of the project to resolving conflicts as they occur and, in most cases, reporting out on the final result.

I’ve seen a lot of companies struggle because all they do is promote the most technically competent people into leadership positions.  But, the growth of a business depends on people who can lead and manage. Project management helps you shift the paradigm from doing the work to managing the work.

You’ve probably heard the new buzz word “staycation“. This is what we do when the economy and gas prices put a damper on our vacation plans.  We stay close to home and go to those places that we normally only visit when company comes to town.

I could have visited the Broward County Courthouse, famous for the Anna Nicole Smith trial or the Broward County Elections Office, known for the hanging chad incident in 2000 that changed American history.  As exciting as those sound, I opted for something a little more peaceful and serene.

So I ventured a couple hours north and I’m spending a little time at one of my favorite places - the Gaylord Palms Resort and Canyon Ranch Spa.  I have to admit that, over the years, I’ve had the pleasure of visiting many, many spas…and Canyon Ranch tops the list.  Their stone massage is absolute heaven.  I’ve never had a bad experience at any Canyon Ranch location and their treatments are worth every penny.

So, how are you spending your summer staycation?

My last two posts in this series have dealt with things that will help any business person stay on top of their game.  This next topic is the one that can really set you apart.  The third thing you need to know is NUMBERS.

We can talk about customer service and people being our greatest asset but at the end of the day, numbers drive what we do.  Years ago, I had the opportunity to hear Ben Cohen and Jerry Greenfield (of Ben and Jerry’s ice cream fame) speak about social responsibility - long before it was ever a corporate buzzword.  One of the things I walked away with was, while social responsibility was important to them and important to the community, the bottom line was it just made good business sense.

So it’s important to know the numbers.  And, it’s equally important to know how to read, use, and evaluate them.

I’m totally amazed at the number of people in the business world who can’t read financial documents.  But even more incredible are the ones who don’t even try.  So, the next time you’re preparing to go to a meeting where financial information will be the topic of discussion, think about the following:

• Did I actually review the document before walking into the room?  Or did I just stare at the numbers until my eyes glazed over thinking it was some kind of puzzle that might turn into a mermaid?
• Do I have any questions?  Did anything look out of the ordinary?  (NOTE:  Even if you decide not to ask your questions for fear of public humiliation, write them down and see if anyone else asks the same thing. You might be surprised to discover that you are not alone.)
• Is there someone in the group that I can follow-up with after the meeting and ask questions about the financial discussion?  I’ve sat in board meetings where the financial conversation turned very complicated.  If you weren’t in the financial field, you would never be expected to know this stuff.  But I always try to have an off-line conversation afterward to understand the issue…at a 30,000-foot level of course.

Honestly, you can find the answer to almost every problem in the numbers.  Be a problem-solver.

We’ve all heard the cliché that good things come in small packages.  Personally, that’s why I always enjoy anything that comes in a little blue box (smile).

Seth Godin translates that point to the business world in a recent post.  He asks the simple question - why should someone do business with a small company if they can’t offer advantages over large companies?  Small businesses can and should leverage their size as a competitive advantage.  Yes, there are things that larger companies will do better but there are many ways that a small company can outperform the giants.

Accessibility - One of the huge advantages that small companies can provide lies in the area of service.  For example, when you call my company…you get me.  Not some automated voicemail system or some receptionist.  I personally pick up the phone.  What’s better than having clients know they have a direct pipeline to you?  No waiting.  A former boss used to let visitors ‘marinade’ in the lobby of his office so they could stare at his awards.  He thought it was a subtle way to market his business.  I, on the other hand, always thought they were busy people who wanted to spend their money with us.  So acknowledge that their time is valuable and don’t make them wait.

Agility - Small companies should have less bureaucracy by virtue of their size and therefore be in a position to react to their clients faster.  Need something right away…no worries.  As a small company, I can make that promise and know that I can and will deliver.  I’ve seen sales people in larger firms have to come back to ask someone for permission - sometimes repeatedly - before they can make a commitment to their customer.  At the end of every year, talent prognisticator The Herman Group provides their workplace forecast.  For several years now, agility has been on their list as an organizational strategic weapon.

So the next time you are looking for a business, remember: bigger isn’t always better.  And, for my friends who own and operate those small businesses…don’t forget to understand and leverage your strengths.

If you haven’t noticed it yet, the HR Bartender tries to lighten things up a little each Friday by posting something fun.  Enjoy.

The web is alive this week with the latest in martini recipes to help us beat the summer doldrums and, perhaps, forget about the economy for a while.  Cucumber Martinis seem to be getting top billing if you want to combine your salad with your beverage of choice.  Not wanting to be outdone, the Bacon Martini comes in at a close second for those who want to combine their, um . . . breakfast . . . with a libation.

And let’s not forget Newfoundland’s very own Iceberg Martini that features a 15,000-year-old chunk of genuine Saint John’s Bay glacier in every glass.  Obviously, global warming isn’t melting the icebergs fast enough.

Call me boring. Call me old fashioned.  Aren’t we getting a little carried away here folks?

For me, you can’t beat a simple martini sipped on the lanai of Honolulu’s Halekulani Hotel at sunset.  Highly recommended by the HR Bartender.  Aloha.

I received a brochure today for the SHRM Strategy Conference in Palm Springs.  One of their keynote speakers is Keith Ferrazzi from Ferrazzi Greenlight.  This brings me to my second thing that every business person needs to know:  Networking.

Now, I’m not talking about a contest to see who can give away the most business cards.  That’s what happens at bad Chamber of Commerce meetings.  I’m talking about “building relationships.”  For a moment, let’s dissect these two words.

The ‘building’ part means entering into an exchange of ideas and information.  So many times people think networking is like Janet Jackson’s “What Have You Done for Me Lately?”  They look at a person and assume either (a) this person isn’t worth the energy or (b) they don’t know anyone worth value.  You’d be surprised at who knows who in your community.

When I moved to South Florida, a friend told me to pay attention to how money moves in the community.  Where the money goes is where you want to be.  And, that doesn’t always mean the biggest companies in your city.  Think of the charities and non-profits that attract attention - they’re getting money too.

‘Relationship’ simply means that networking takes time.  You don’t build any good relationship overnight.  People need to know you and trust you.  It also means that you might start out a business relationship by giving more than you are getting.  This is true of the interactions you have in-person (at meetings, etc.) as well as on-line (i.e. Twitter, LinkedIn, and Facebook).

The last thing to remember as you build your circle of friends is networking is forever.  A common mistake many people make is they don’t start building a professional network until they need one (translation: downsized) - and then it’s too late. You need to network every day, all day and all the time.  You never know who you might meet and when you will be presented with an opportunity - just make sure that you’re ready.