Transactional Analysis and Management

Transactional analysis is an interesting and effective way of being aware of the impact that our actions have on those around us. Used carefully, it can allow a Manager to be much more aware of the way in which his/her actions affects the team and be more effective in positively influencing the desired outcomes.

Eric Berne, developed the model for understanding human relationships, communication and personality in the 1960’s and since that time it has been expanded and tested and is now widely accepted as an effective tool.

In simple terms, the model relates to the fact that each individual has three ego states; the Parent, Adult and the Child:

The Parent state is how we copy feelings and behaviours learnt from our parents or other role models.

The Adult state relates to feelings and reactions to the here and now and how we deal with them as grown adults.

The Child state relates to experiences and feelings from our childhood, which affects our current behaviour.

Much of the research looks into the ways that the different ego states interact with each other and how, by being aware of our own and others ego states, we can positively influence our relationships.

So how does this model help us as Managers?

If we take an honest look at how we interact with our team and also how team members relate to us, we can get a very clear idea of how the relationship is balanced. Are you interacting with your team members in a critical (controlling) parent ego stance? Does this is return result in a negative adapted child response from them, becoming either overly compliant or rebellious. If so, one answer would be to raise the use of the “Adult” state by both parties.

Understanding the different ego states can also help by providing more support and job satisfaction by tapping into your nurturing parent ego state and create a motivation environment by letting the “free child” out of its box!

For more in-depth information, read TA Today by Ian Stewart & Vann Joines

The Case for Corporate Social Responsibility

Often when you mention the concept of “Social Responsibility”, many business leaders will frown. Sometimes the belief is that it is too expensive to implement with no real quantifiable benefits to the business or simply too difficult and complex to get involved in, many simply believe that in their busy lives they do not have enough time to devote to what are often seen as peripheral and non-essential needs. In the current economic market our worries and focus are rightly on keeping our businesses operational and such concepts as “social responsibility” are often put on the shelf for times when things are better and we feel we have the ability to indulge.

These ideas are actually far from reality. The concepts of “Social responsibility” can actually result in reductions in costs, improvements in efficiency, better performance, increased sales and better and more profitable relationships with business partners and stakeholders and far from being expensive to implement, many initiatives can be relatively simple to introduce, very low cost of even free, simply requiring a change of attitude and procedure.

Building a reputation as a responsible business sets you apart from your competition. Companies often favour suppliers who demonstrate responsible policies, as this can have a positive impact on how they are perceived by customers. Certainly end users are becoming more and more aware of social issues and having and acting on a Corporate Social Policy can be a powerful persuader for many consumers, which in a highly competitive market can often be the edge needed to retain and convert customers.



Reducing waste and emissions and dealing responsibly with energy and water usage, doesn't just help the environment - it saves you money too. It's not difficult to introduce measures to cut utility bills and waste disposal costs and such measures can bring immediate cash benefits



Having a “fair rights” policy in relation to the treatment of employees has been proven to reap many rewards in relation to performance (employees are more motivated and productive), retention of staff (employees stay longer, reducing recruitment, visa and retraining costs) and in recruitment, due to the organisations perceived good reputation. Many people make the mistake that employees are just after money but this has been proven time and time ago to be a false assumption. Numerous studies have shown that working conditions, fair treatment, a motivational and positive environment, opportunities for career growth and personal development as well as respect for the management and organisation are all more important than just money.



There are other benefits:

• Activities such as involvement with the local community and any issues affecting the environment are ideal opportunities to generate positive press coverage.
  
• Good relationships with local authorities make doing business easier and being known as a responsible organisation help make good relationships much easier to attain.
  
• Having a Corporate Social Responsibility Policy, can help ensure you comply with regulatory requirements.


• Understanding the wider impact of your business can help you understand your customers better and also help in the development of new products and services.


• Social Responsibility makes the organisation more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors will understand this and be more willing to finance you.

Many markets have already established the important role that Corporate Social Responsibility has in relation to positively affecting their business operations, performance and objectives and in those markets it can be more a case of needing to be seen to get involved, in order to stay in the race. However, in other markets, there is a real opportunity for organisations to be seen as genuine trend setters and develop a reputation, enhanced and strengthened by their socially responsible achievements. In these markets, such socially responsible activities can create a significant level of highly positive PR coverage, as it is seen as new and trend setting and this can be something that positively brands the organisation for many years to come, regardless of the size of the organisation or the market it operates in.



As with any Corporate Policy, success requires commitment from the senior management and the willingness to incorporate Social Policy ideals throughout the business process.

For true Inspiration look at the life of George Cadbury http://en.wikipedia.org/wiki/George_Cadbury



For a few examples of organisation well known for Corporate Social Responsibility:



John Lewis Partnership http://www.johnlewispartnership.co.uk/
Ben & Jerrys Ice Cream http://www.benjerry.com/activism/

Customer Service

Customer Service Focussed Organisations:

We all understand the need for high standards of customer service within our organisations but often there is a misconception that customer service is something that only relates to the point of contact with the end user and efforts are generally focused on this point in the process. This strategy ignores the reality that customer service has to be a fundamental aim and objective of the organisation. It should be part of the “mission statement” and should influence the way the entire organisation functions.

There are a number of factors which need to be taken into account when ensuring that an organisation is customer service “fit for purpose”. Personally I find the “British Institute of Customer Service “offers an excellent overview and my personal strategy preferences have been strongly influenced by this:

Commitment: The organisation, including the leaders, must clearly demonstrate their commitment to customer service as a fundamental philosophy of the organisation, from both within the organisation and externally in relation to suppliers and business partners.

Continuity: Focussing on Customer Service for life, which means incorporating it into operational procedures, KP Indicators and performance management for all areas of the organisation, not just sales.

Credibility: Ensuring that organisation lives up to its promises. Ensuring everyone accepts ownership of their responsibilities and understands that CS is fundamental to the brands image. Failures or under-performance are recognised and dealt with.

Consistency: Systems should be designed and operated with the end users convenience and needs as a priority and most importantly, those systems are actually capable of delivering the organisations promises.

Creativity: Encouraging critics and suggestions for improvements from everyone; customers, staff and other stakeholders. Introduce changes that positively improve the service for customers and adapt to their changing needs.

Capability: Making sure that the right people are recruited in the first place. That those people are well trained both initially and continuously and a supportive and developmental focus is maintained, installing high standards. Ensuring the organisation as a whole is focussed on the impact all activities have on customer service.

Throughout the organisation it is key to develop systems and processes that reward those who show their commitment to the aims of producing the highest customer service aims but also to operate a non-blame culture (fix the problem, not the blame) which encourages staff to report customer service problems and complaints in the understanding that this will allow the organisation to focus on ways of improving systems and services to ensure the same problems will not reoccur.

"To operate at the highest standards of customer service you need to actively encourage your customers to complain."

Team Working: Conflict resolution

I had an email from a reader, in regard to a problem he is having with someone in a team he manages. It appears that recently the individual is constantly questioning his authority in front of the rest of the team and is regularly quite negative and “pushy”. The employee is an established member of the team, was generally reliable and the attitude is unusual. I asked what he had done to remedy this situation and he had chosen to simply ignore it, in the hope that it was a “phase” and the team member in question would get over it. Unfortunately I have never seen a case like this where ignoring it does anything but exasperate the situation.

One of the keys to dealing with any form of team discipline is speed. However small or large the issue, it should be dealt with as soon as is practically possible. It is vitally important for a manager to have the respect and trust of his team and leaving an issue like this un-dealt with can only have wider implications and will likely lead to an increase in problems related to other team members. This happens because of the initial feelings of inequity within the team. Other team members see a colleague doing something wrong and yet no action is taken, whilst they are dutifully following the rules. If the issue is not resolved it becomes an excuse for others to also break the same or other rules and creates needless friction within the team dynamic.

The first thing to do is remain calm. Shouting down the employee will simply make the situation worse as it reinforces the potential view of the manager as being unable to control the team. There may also turn out to be genuine personal issues that are causing the problem and as a Manager you do not want to be viewed as callous or uncaring. Sit quietly and consider what might be the likely reasons for the employee to act in this manner. Is it likely some previous event has upset him? The next thing to do is to speak to the employee in question and arrange a private chat to discuss the problem. Take them to a non-threatening location, preferably away from the work environment (possible over a cup of coffee) where you can have a quiet and calm conversation about why this problem is happening. Remember this is about finding out what is going on and finding a solution. Regardless of what is said, do not get drawn into an argument and remain calm. In the vast majority of cases, the team member will explain their problem to the manager and you can explain why their attitude / actions is causing a problem. Agree what action each of you will take to resolve the matter and then give the employee a written version of your agreement, as reinforcement.

Hopefully this should resolve the matter but if it continues then it is crucial that the issue should be dealt with in a more formal manner but again with the focus on resolving the problem.

Team Behaviour & Strategies

Rules & Procedures and dealing with breaches:

This guide is specifically related to creating an environment to reduce the likelihood of rule and procedure breaches by team members and also the best way to deal with disciplinary issues.

Practical Tips

1. Reinforce the Rules: Ensure you have an employee handbook, containing rules and procedures and that everyone gets one. Use positive posters as rule reminders (written and illustrated) as well as reminder meetings to discuss procedures and problems; to help team members overcome the issues that prevent them from complying with your rules and expectations. Whilst ignorance of the rules is no excuse it is still better to ensure that are aware of them, rather than just assuming.

2. Positive ethos: Set a positive ethos in the team and organisation from the outset. As the manager you are the guardian of the rules. It is not “Do as I say” but “Do as I do!” In this way people are more likely to respect you and also feel an obligation to do the same as you. As much as you may like to think “Hey I am the boss I don’t need to abide by the rules if I don’t want to!” In reality that just breeds resentment and disrespect both of which are potentially fatal for a Manager.

3. Team Engagement: Involve the team in the development of rules in the first place. Hold a team meeting and get them all to write what they feel are issues that affect the company and what they think should be done about it. In a group environment encourage peoples’ opinions and ideas. It is much easier to get adults to engage with rules that they were personally involved in creating. They will be more likely to accept ownership and it is much more difficult for them to justify their actions in breaching their own rules!

4. Track Breaches of Procedure: It is vital that you have an accurate and objective system for tracking, monitoring and evaluating breaches of procedure. It is no good having a team member who is constantly late or regularly breaching rules and procedures and no action is taken. It is important to deal with every breach immediately, however minor and record the issue and how it was dealt with. All companies should have a rigid procedure for dealing with discipline problems and this should include a set system of dealing with problems. Starting with the “quick friendly chat” and leading all the way to written warnings and formal proceedings. Not bothering to record problems, however small, is a big mistake. For the sake of the team dynamic and cohesion, rules breaches should be dealt with quickly, fairly and equitably. Recording problems will also highlight areas that produce regular breaches of rules and will allow a systematic review of those procedures to see if there may be an underlying problem.

5. Procedural Hierarchy: Have a number of levels of procedural response to breaches of rules and make sure that these are used and followed exactly. It is important for people to understand the process and that it will be followed. However, also remember that your role is to rectify the problem and use these procedures to help that process and not simply to escalate it to the next level! Obviously in serious matters, steps in the procedure can be jumped.

6. Communicate: Make sure that you have systems in place to enable the sharing of information with team members and for team members to go and discuss their problems. Hold regular team meetings and open forum sessions. The more open the opportunities to discuss problems the less likely breaches of procedure will occur in the first place and the less accepting team members will be of those who do.

7. Do it in Private: Don’t shout across the office or showroom or approach the individual in a public area, take the conversation to a private office or area away from other people. Discussing issues in the view and hearing of others is not only unprofessional and creates a poor impression of the company and you as a Manager but will also embarrass the individual, which will create resentment and may also illicit sympathy from other team members.

8. Stay calm: Do not get angry. Remember, especially in a confrontational situation, that as the Manager you need to remain calm. Getting angry means you will lose focus and lose the upper hand in the situation.

9. Personal space: For most, personal space is approximately arms length. However, it does vary between cultures. The point is, not to invade the person’s intimate space. Again we are trying to avoid the perception of confrontation.

10. Verbal / Non Verbal: Your voice should be at the volume and intonations you expect from the employee, as should your gestures (open and relaxed, not rigid and forceful). A loud and aggressive voice/ attitude from you will either result in a loud and aggressive response or the employee closing in and becoming non responsive (both create feelings of intimidation, potentially fear, unfairness and resentment). Treat people as you would want to be treated and remember the purpose of the meeting is to find out why the problem is occurring and resolve the issue. To do this people have to be in a mental state of willingness to accept responsibility and ownership for correcting their attitudes/actions.

11. Non Judgmental environment: To create a feeling of fairness and justice, it is better, initially, not to handle discussion across a desk. Instead a more relaxed sitting arrangement, with no barriers between the parties will create a more equitable environment and will make the individual feel more like an adult and not a school pupil about to get told off by the headmaster! Remember the goal is to find out what is going wrong and get a positive solution. Whilst simply “telling someone off” from your office chair may make you feel better, studies have proven it does not actually work and can actually have the exact opposite affect. Having said this, there are times, where a problem continues to occur despite using all the right methods and procedures, that a more formal and regimented meeting can send a very powerful message to the team member that they are now in very serious trouble and need quickly and decisively to correct the problem. However, this message will be all the more powerful when delivered in this way, due to the following of the methods and processes highlighted here, beforehand.

12. Refocus: Don’t be verbally misled by arguing team members, who try to redirect the conversation away from the matter at hand. Refocus them on the issue by using a statement of understanding ('Yes, I see, but that is not the point; we need to focus on...')

13. Positive Negative Positive Sandwich: When discussing a problem with a team member it is best to start the meeting by discussing something positive that has happened, either related to the individual, the team or the organisation. Then move on to discuss the issue at hand and agree the remedial action and then end the meeting with a positive message, to rebuild the team members self belief and confidence. Simply confirming to them that they are a valued member of the team and that you feel they have great potential and are confident they can overcome the issue at hand can be enough.

14. Personal Improvement Contract: If you are having a problem getting through to the employee, a simple process to enable the team member to reconsider their actions and to decide on a more appropriate course of action next time is to get them to write down why their action was wrong and what they intend to do about it. Then get them to sign it and you both keep a copy. This helps them to consciously accept their mistakes and accept responsibility for putting it right.

15. Proximity praise: Rather than just giving random praise (which is very important and effective), instead try to spot the off-task staff member and make sure you praise another staff member nearby, who is on task and complying. This is far more positive than simply noting the wrong behaviour or just praising on its own. Always remember the power of “peer” pressure. However do not make it a “why can’t you be like him” as this can create friction within the team.

15. Non-verbal language: Be aware that more than 60% of all communication is non-verbal. What is your body language saying? There is no point encouraging someone, whilst you are sending an SMS!

16. Antiseptic bounce: This is a classic strategy used in education. We all know that generally the only time a team member will get to see the GM or Director is if they have done something wrong! However, instead, send the target team member to a senior colleague with a note or message. The note says, ‘Please tell (team members name) “Well done (explain why)” and send him or her back!’ This works particularly well where a team member has had problems before, is improving and you want to show you have noticed and positively reinforce the message.

And finally…. Give praise where praise is due. It is important that team members feel valued and appreciated and don’t feel that the only time you want to speak to them is when they have done something wrong!

Leadership in Management

Is there a difference between a leader and a manager?

Some commentators will often separate the titles of leader and manager into two distinct roles.

It is argued that a leader is the person who inspires, guides and makes decisions that other people choose to follow or obey; Whereas a manager is someone who is responsible for managing others in a company or business and who controls resources and expenditures and achieves objectives through his/her subordinates.

In reality all leaders have to be managers and all successful managers need some leadership qualities. It is much easier for a hands-on and involved leader to inspire others. People respond more strongly to those who lead by example. “Do as I do, not just as I say!” Similarly a Manager who is unable to motivate and inspire his/her team, will never achieve the same loyalty, work commitment and performance level from his/her team as a manager who can expresses a real passion for the Organisation and its work.

So what makes a Manager a good leader? Here a few general guidelines:

Enthusiastic and committed: It is not good enough, in these difficult times, just to recruit a Manager based on qualifications or experience, it is now essential to look closer at the potential managers personality. We need to find Managers who will go the proverbial “extra mile” and will continue to be enthusiastic, even when times are tough.

Factual & Process Driven: They should focus on creating systematic processes and frameworks, founded on factual evidence and knowledge of the issues and the needs.

Stakeholder Engagement: They should interact well with all stakeholders, both internally and externally, demonstrating the desire to understand all related parties needs.

Clear and Concise: Ensuring that everyone in the team has a clear understanding of their individual roles and responsibilities, as well as the overall team goals and its importance in relation to the organisation as a whole. Helping people to understand the important impact that their individual role has on the entire organisation can be a very powerful motivational tool.

Team Management: All team members should be encouraged and supported and all desired outcomes should be discussed and agreed, prior to their introduction. Regular reviews and feedback is essential. People should be supported as individuals but also as an integral part of a larger team. This helps the individual to accept “ownership” of their individual responsibilities and how their performance and attitude affects the team as a whole and thus creates a strong “peer pressure” dynamic.

Openness: They should be open to ideas and criticism from within the team.
Team members should be encouraged to discuss problems in a non-judgmental way. Not only does this help to highlight problems but also encourages creativity.

Incentives: Develop incentives and sanctions to ensure that positive attitudes and
outcomes are reinforced and negative performance is discouraged. There are numerous ways to incentivise teams but sometimes just a “Well done” or “Thank you” can be enough to ensure well performing team member feels valued. In relation to discipline, clear rules and strong adherence to those rules help to prevent infringements and create team stability by reinforcing peoples’ psychological need for security and stability. When dealing with disciplinary issues, clarity and consistency are key:

Remember the 3 F’s : Friendly, Fair and Firm

Developmental: Ensure that the team members are given the opportunity to
develop, both in terms of skills and training and future career opportunities.

Performance Orientated: It is essential that Managers aim for success, that they
inspire and motivate their teams to outperform their targets and goals. It is human nature to what to be associated with winners and success is addictive!

Responsible: This seems obvious but there are many line managers who only accept responsibility when things go well and immediately finds someone in the team to blame when something goes wrong! In reality, a good leader and manager does just the opposite. When things go well the manager will credit the team and when things go wrong will accept personal responsibility to resolve the issues.

Retain your Customers:

Customer Complain Handling

It is commonly accepted that it costs around 5 times as much to bring in a new customer as it does to retain an existing one. Once a consumer has formed a relationship with a company, they will generally prefer to use that company’s services unless something goes wrong. Loss of customer loyalty most commonly occurs, not when a customer has a problem but when that problem is dealt with badly.

Every time a customer makes contact with the company, it should be seen, by the company, as an opportunity to improve the relationship with the customer. It is key to ensure that customer service is of the highest standards at all times. In reality, things do go wrong but it is proven that resolving a customer’s problems can actually increase a customer’s loyalty to the company, regardless of the initial problem, if it is dealt with and resolved in a professional manner.

If a customer is unhappy with the product or service then the following basic tips can help ensure that you retain the customer’s loyalty:

1. Immediately respond to a customer’s complaint. From a customer’s view point a complaint should be dealt with as quickly as a sale. Do not make the common mistake of letting a customer think you only care about them when they have money to spend. This is the fastest way to lose a future customer!

2. If a customer is upset or angry, let them speak and explain their problem to you, do not interrupt but instead use encouraging body language (*Active listening) to make them realize you are listening and understand. Remember: It is not personal, so always remain calm and polite.

3. Acknowledge the customer’s position and explain to them that you understand; thank them for brining the problem to you, apologise and assure them your aim is to find a solution. The aim here is for the customer to understand that you appreciate their problem; that you accept “ownership” of the problem and you want to help resolve it.

4. Always emphasise what you can do for the customer. Don’t tell them what you cannot do. However, never make false promises or make an offer unless you are sure it can be carried through.

5. Determine the best course of action to resolve the customer’s problem; explain the resolution to the customer and get their approval and agreement. Make sure their can be no misunderstandings.

6. Even if you resolve the problem immediately, always thank the customer for bringing the problem to your attention. If the problem cannot be sorted straight away, then explain that you will do everything you can to resolve the problem as quickly as possible and agree when you will update them on your progress if the problem could not be resolved immediately.

7. Follow up on your solution. Contact the customer, at a later time, to make sure that their problem has been resolved and they are pleased with the outcome. A tip here is to contact the customer, even if the problem has yet to be resolved, so they know you have not just forgotten about them. One of the major complaints from customers is that they feel they have been ignored.

*Active listening - Focus on ensuring that you actually understand what the customer wants and how they are feeling; make it obvious that you are interested and care (use of body language and positive reinforcement gestures) and remain calm and objective.

Finally, encourage customers to complain. All businesses have complaints and not being aware of them does not mean they don’t exist!

Managing Multicultural Teams

Multi-cultural diversity in the work place is something to encourage and appreciate and not to fear. Working with people from varied backgrounds and cultures can introduce a new range of complex factors but, at the same time, will also enhance the business and introduce new ideas and creates a stimulating and exciting work environment.

Different cultures attach significance to different things and what may seem harmless and unimportant to one culture may be offensive to another. Remember that this can apply to customs, speech and body language. The answer, as with most things, is to do your homework! Find out a little about the culture of the people you are meeting or working with or simply ask them. People will not be offended if you ask them about their culture, religion likes and dislikes; in fact they will generally be appreciative of your respectful attitude.

In a business context, it is important to have a clear understanding of the impact that peoples’ cultural background has on their attitudes in relation to work. Ensuring that multicultural teams are performance managed to succeed is more complex and requires more effort in regard to the initial recruitment phase and the on-going performance management. Whilst we must be careful to be open-minded and non-prejudiced, we would be silly to ignore well accepted cultural traits.
An example of one factor is the way different cultures respond to authority. Some cultures exhibit great deference to people in senior positions and also to their elders. This can mean that those people will need more encouragement to openly contribute their ideas where they may appear to conflict with those of their manager. On the other hand some cultures believe in being very direct and confronting issues head on. It is, therefore, very important to be clear in regard to the specific qualities that you need in your team and the objectives to be achieved and then be aware of how different business cultures may benefit the achievement of those objectives.

When you first recruit your teams, it should be clearly explained that the organisation respects its cultural diversity and expects all its staff to do the same. Perceptions and preconceived stereotypes can lead to communication problems and interpersonal bias. Differences in cultural behaviors can lead to mistrust and whilst this is difficult to prevent, it should be recognised and dealt with accordingly. Demonstrate a clear policy against discrimination and prejudice and act on any incidence that is motivated or influenced by cultural intolerance.

Whilst it is important to be sensitive to other cultures, it is also important to develop and reinforce the culture for the organisation and the team. In this way a standard and ethos can be developed that will become a shared focus and aim for all within the team. This can go a long way to help people bond with others in the team and share a sense of commitment and responsibility.

Obviously language (both verbal and body language) can be a key factor when dealing with multicultural teams and it is important to ensure that communications are as smooth as possible. This can be as simple as ensuring people speak slowly and clearly, avoid slang or idioms and also checking understanding, rather than just assuming. For a Manager, patience, listening skills, a friendly disposition and a good sense of humour are always an asset.

Remember: The same factors within multicultural groups that can make them complex to manage can also be their greatest advantage. Due to the lack of shared cultural assumptions, you are more likely to get a diversity of opinions, new and more varied ideas and solutions due to differing methodologies and they also help to prevent the issue of “*Group thinking”; and always remember that people are individuals and whilst their cultural background certainly influences their personality, you should be very careful not to make assumptions purely based on this.

*Groupthinking” happens when a team of like minded members try to minimize conflict and reach consensus without critically testing, evaluating or analysing ideas. Individual creativity, uniqueness, and independent thinking are lost in the pursuit of group cohesiveness.

Employee Theft

Experts recognise that employee theft accounts for a much larger percentage of loss within organisations that most employers realise or admit. Frequently problems are blamed on other factors and so the real issues never get dealt with. Rather than focus on the issues surrounding employee honesty, I have instead listed a few ideas to help prevent employee theft:

1. Initial Employment . Whilst this is not any easy task, it is very important to use all methods to ensure that your potential employees are honest. In an immigrant led employment market, this is particularly difficult as the reliance on references and other forms of checks maybe unavailable or unreliable. One good indicator is to look at the length of time people have remained in their previous employment, or unexplained gaps in their employment. Short employment durations and gaps can be an indication of an underlying problem. Where alternative methods of checking are unavailable, I personally favour the use of pre-employment “honesty tests”. These Psychometric tests are a tool in identifying the dishonest candidate or those who are most likely to be tempted if the opportunity arises. Whilst not fool proof and should not been used alone as a reason to hire or not hire an individual, they are good method, in the absence of other checking procedures. One thing to remember when using these questionnaires, is that they work best when the employee is feeling relaxed and so they are best used as the final process, once a candidate has been provisionally accepted and the employment visa process is being initiated.

2. Keep employees happy. By this I mean create a positive environment. Treat people fairly and with respect and actively involve them in the rules, procedures and issues that affect them directly. Make sure that employees feel they have a relationship with the organisation and also create strong bonds within the teams. Ensure that there is clarity in regard to job descriptions and objectives, company rules and procedures.
Ensure you run employee recognition schemes and make it easy for people to discuss issues or problems with management. In this way you reduce many of the “self justifications” for theft in relation to not understanding how stealing affects their colleagues or wanting to punish the company or alleged wrong doing or poor treatment.

3. Internal Protocols: Make sure that the processes and procedures have been designed with the potential for theft and fraud in mind. Generally systems are designed for maximum efficiency or perceived cost effectiveness without any real consideration of how the systems can be bypassed or subverted to allow theft.

Separate duties. No employee should be responsible for both recording and processing a transaction.

Restrict Access . Restrict access to important data, financial records, stock and any other sensitive matters to authorised employees only. Keep a record of access by using electronic access controls, CCTV and log keeping.

Authorisation. Develop and implement policies to control how transactions are initiated, authorized, recorded, and reviewed. Internal controls will reduce opportunities for theft and fraud. Run intermittent reviews and audits to ensure the procedures are being maintained and are effective.

4. Employee awareness. Make sure that your employees are fully aware and regularly reminded about the department and company’s policies and procedures related to theft, as well as the internal controls that are in place as well as how breaches of these procedures are dealt with, within the disciplinary code. A booklet containing these rules, procedures etc should be presented to every employee and they should sign to say they have received and understood the contents. This is a good topic to go through in the employees initiation process, when they first join the organisation. Making people aware of the what the company does to avoid theft and how they deal with it will help reduce temptation, where the employee wrongly perceives that no one will find out and also helps to balance create a negative balance away from the potential rewards of stealing towards the likely repercussions for doing so.


5. Encourage employees to discuss problems. Organise regular team meetings and ensure that “security and fraud prevention” is always discussed at every meeting. This gives people an opportunity to openly discuss any concerns employees may have but also reminds them of the importance of the rules and how the fraud affects them and the company. Another option is to provide an anonymous reporting system for employees, vendors, and customers to tell you about anything they feel is suspicions or concerning to them. You need to encourage people to use this and whilst it can have variable results they are a worthwhile tool.

6. Random Checks - Apart from your regular checks, exception reports and audits, you should also run irregular and spot checks. Don’t just assume that because you have developed a great system and you have followed all the rules that this is all you need to do! You need to run regular and unannounced checks and audits to ensure that the system rules are being followed and also that they are working. Some should be announced and other should be done behind the scenes and the results announced afterwards. This sends a strong message out to employees that you are both visibly checking but also that they can never know when or where you will check and so the high risk of detection should act as a strong deterrent. It also enables you to see if processes are different when people know they are being checked compared to when they don’t.
Another good option is to run audits and checks when key employees are on vacation and also to rotate staff into different locations and run comparison checks.

7. Don’t ignore breaches. The secret with any breach of procedures is to act quickly and decisively. The longer you leave it to thoroughly investigate the problem, the harder it will be to resolve, the more likely it is that the activity will be repeated and the more damage it will do to the reputation of the organisations anti-fraud credentials with its employees thus increasing the likelihood of further fraud in the future.

8. Make strong examples of Perpetrators. If any form of fraud takes place and is proven and the proper legal and institutional procedures have taken place, then strong and decisive action must be taken immediately. The employee in question should be dismissed immediately and the details should be made known to all the staff so they can see, in action, what happens to those who attempt to defraud the organisation. Sweeping the issue under the carpet or dealing with it “quietly”, will significantly increase the likelihood of it happening again. Seeing someone get caught and dealt with firmly, is a strong deterrent to others.

9. Same rules for all. Managers should lead by example and show that rules apply to everyone. I once went on a tour of an electronics company and the MD was showing my colleagues and I around their factory and took us to the store areas. Unfortunately he did not have his official identification / security card and so the security guard would not allow him into the stores areas. The security officer was called but he would not allow entry to the stores either, although he was more than aware that our guide was the company MD and his boss! The MD got quite upset and angry but we did not get into the stores. Later I spoke to him and explained that he should be grateful to the security officer for doing such a great job in a very difficult situation and that it was good to say a company where the rules applied to all. A few weeks later I received an email from our host, saying that at their recent company staff meeting, he had used the story as an example of how company rules should apply to all and presented the security officer with a certificate of thanks and a small cash bonus for doing such a great job!

This is by no means a comprehensive list of measures and processes but the key to reducing and eliminating employee theft is always prevention, constant awareness and immediate response.

Business development in Recessionary Times:

In these difficult times, it is easy to just batten down the hatches, cut costs to the bone and hope for the best, in the belief that getting new business will just be too difficult as everyone else is in the same situation. Also, many companies reduce their business development in “good times”, due to over capacity and also the assumption that things will always be like this and so when times get tough they do not always have a large, on-going bank of cold, warm and hot leads, already in process. Whilst it is definitely much harder to gain new business in difficult economic times, it is certainly not impossible. Yes, it takes more energy and commitment and there will be a lower success rate than in prosperous times, which van be demoralising, but that should not deter us. It is crucial that efforts are redoubled, as history has shown that it is the companies that think positively and innovatively that come through recessionary times and are stronger and more able to take advantage of new business opportunities when the economy starts to turn.

Here is a quick review of the general processes required to ensure that business development is carried out as efficiently as possible (key, since during time of recession, resources are generally more restricted) and to maximise the chances of success:

1. Raise your business profile
Raising your organisations profile can only benefit the likelihood of getting direct enquiries but also improves your chances of success in developing new business. There are a number of ways of doing this, many of which do not have to cost an enormous amount of money. Apart from the usual suspects in business marketing, consider things like “blogging”, writing articles for industry publications, increasing the profile of your website and its search ranking, using social media, improving your PR by getting involved with social and charity events, sponsoring an industry seminar or event.

2. Generate Leads
Identify the types of companies that you want to work with and agree the number of contacts you will focus on and over what period (e.g 16 new contacts per month). Try and be open-minded here. Don’t be tempted just to re-visit old contacts. (it is important to re-visit your old contacts as well but these leads should not be included in your new leads target)Genuinely look for new leads and also consider whether you have services that could appeal to organisation outside of your normal customer group.
Look at Industry groups on the web. Look at social networking sites, like “LinkedIn”. Attend networking events and conferences and generally keep an eye on Industry news sources and even the local press. Revisit your old connections and see if they can give you any leads or referrals.

3. Qualify
When considering the shortlisted organisations, you need to find out some key details about them. Look at their website and any corporate literature. Make sure that you have something suitable to offer them. Simply firing shots off in the dark, in the hope that someone might be interested is a real waste of time and energy and something that people do in a panic. That is not to say that blanket email blasts and mass mail outs don’t work at all but they are massively more successful and more cost effective, if they are targeted accurately. Do some homework and find out who the key decision makers are within the targeted organisations and get their details. It is key to directly contact the right person to have any hope of getting a positive result.

4. Develop a relationship
Send a newsletter, brochure and information about the company to your qualified contacts. Send them links to your blogs and published articles, invite them to events.
If you have qualified your leads properly than all this hard work will pay off over time. Don’t expect an instant reaction and don’t give up. The success of this strategy requires that you continue to focus on your potential customers over a prolonged period. Think of this as the “courting period”

5. Get a Meeting
If you have done your work properly in the previous stages, you stand a good chance of getting a meeting. It is now key that you are extremely well prepared for this next step. The strategy will depend a lot on your organisation and the product and services you offer but regardless it is essential that you present the most professional image. Make sure you take any necessary brochures and product samples. Have a well prepared, short but impactful presentation and make sure you understand your products and your organisation extremely well. If your products are highly technical then consider taking a technical expert with you to assist with difficult questions.

6. During the Meeting
Find out what the company actually wants and needs and tailor your presentation to how your product / organisation can best fulfill that need. Don’t waste time on long presentations that the client has no interest in. get straight to the issues that matter to them and explain how you can help them.
Don’t lie or try to bluff. If you do not know an answer be straight and say, “I do not know”. If it is important make sure there is someone you can call immediately to get the answer, if not find out straight after the meeting and send the answer to the potential client as quickly as possible.
Don’t discuss negatives. “this part of the software does not work very well!” Sounds obvious but people do it all the time.
If you are asked about previous projects and customers, do not reel off a huge list but instead focus on one or two of the projects that you know well and that had shared needs or goals with your potential client, and that you can discuss with confidence. If you have done your job well previously, you will already have sent a profile with details like this during the “Courting phase”.

7. Follow up
The follow up is a crucial part of the entire process. You should immediately send an email, thanking them for the opportunity to meet with them. From your meeting you should have determined what their needs are and what your strengths and weaknesses are. Obviously, you need to focus on your strengths and so send them more detailed information in regard to matters that were discussed in the meeting. Perhaps an interesting article or details of another project you have undertaken which had similar challenges to their own. The goal here is to keep the communications channels open and reinforce the benefits of your organisations product/service.

Throughout all stages it is crucial to keep a record of your leads and their status. Create a database or use excel, linked to outlook, to record the company details, contacts, info about the organisation and the direct contacts and keep an up-to-date record of all communications, along with your own comments and updates.

Don’t forget old and existing customers. You need to give them an even better service and more attention that they got before. Your competitors are in the same boat as you and if they are any good, they will be trying to “court” your existing customers in the same way you are going to “court” theirs!

Fit for purpose?

Two business partners went up to the mountains every year for a long weekend to shoot wild buck. So the latest trip came around and the corporate plane flew them up to the mountain and left them there, to return three days later. The plane returned and the two shooting buddies had 6 fantastic animals to take back down the mountain.
"Sorry" said the pilot. I can only take 4 bucks, due to the weight.
"Nonsense" said the two businessmen, "We took 6 last year, this is not acceptable."
After much arguing, the pilot finally gave in and agreed to take all 6 bucks on the plane.
The plan took off and 15 minutes later crashed in a valley below the mountain. The two businessmen struggled out of the plane and one turned to the other and said "You know I think I recognise this place". "Yes" said the other businessman, "we crashed here last year!"

The moral of the story being that if you continue to function in the same way, you will get the same result, regardless of any extra effort expended. It is essential to continuously monitor the systems and processes in any business to ensure that they remain capable of producing the outcomes you require in the most efficient way. As customers and organisational needs change, so systems and processes must adapt.