In This Issue

This issue has "written itself".  When I first started thinking about the topics that I wanted to cover in the second issue, I had a lot of ideas and topics, but none of them "resonated" with me.  A few days went by and suddenly different questions were popping up in the in-basket for me to address for specific companies.  Each of those topics was issues that are common concerns for all companies and they have become the topics of this newsletter.  I hope they provide some new information or perspectives for you and your business.

Manage Your Momentum - Listen, Interact, Resolve, Manage return to top

F.O.C.U.S. Resources is joining with AISIS Performance Advisors, Ltd. and featured guest speakers to present a series of “how-to” workshops for entrepreneurs, small business owners, and "intrapreneurs" (entrepreneurs inside medium and large businesses) looking to improve bottom-line performance.

The series currently consists of three independent workshops:

Session I:  Get Clear and Get Going! emphasizes the broad business picture and defining specific outcomes for your business.

Session II:  Pick Up Your Pace! builds upon the work done in Session I and takes the participant through developing strategies and defining specific performance targets.

Session III:  Make It Happen! walks the participant through the development and selection of tactics for reaching the targets and moves the participant into the implementation and management stage of addressing the day-to-day and long-term performance objectives.

Each session is accompanied by a workbook and materials that participants use to work on their businesses.  Participants may take any session as a standalone.  Participants who choose to attend multiple sessions will benefit from working through the complete process.

The S.T.A.R.T.™ (Strategy, Targets, Accountability, Results and Tactics) Your Business Program uses a "how-to" approach to finding the right strategy based upon established goals, setting specific performance targets and introduces the processes for developing accountability, results and tactics. 

For dates, locations and registration information go to www.manageyourmomentum.com

Problem Performers Impact Your Bottom-line! return to top

One of the toughest jobs any manager or small business owner has is to handle poor performance issues.  Regardless of how justified an action is, there is tremendous stress associated with confronting the poor performer.

For some, it is a time for analyzing the performance of the employee or direct report AND themselves as a manager, leader, motivator, communicator and all the roles they play.  From my perspective, I think it is a perfect time to analyze and reflect on all aspects of the individual, the role "fit" in the organization, and to determine if I clearly set expectations and communicated them well.

Not all performance problems are the person's "fault".  We often make hiring decisions based on more (or less) than the actual qualifications of the candidate and the match to the skill set the position needs.  Job descriptions, job qualifications, operational styles, managerial and cultural aspects of the business need to be considered when selecting the right candidate. (More on this later...)

Poor performers impact the entire organization's ability to use resources efficiently and effectively.  The poor performance and how you handle the situation can create positive or negative "ripple effects" throughout the organization.  It needs to be about the performance issue, not the person.

As an inexperienced manufacturing supervisor, one of the hardest lessons that I had to learn was to address performance issues - not only with the person, but with the group it impacted.  If I accepted habitual lateness from one employee, it set up the perception that lateness was acceptable from all.  If I didn't recognize the impact of not having everyone available to work and perform their tasks, then I devalued the other group members and their contributions, putting additional burdens on them.

Addressing poor performance at the earliest opportunity is important (and best for all involved).  To correct unacceptable behaviors, you have to address them near the time they are occurring and determine what the root cause is.  It may be a truly "poor" performer.  You may find that the objectives weren't clearly communicated, the person didn't have the skill set, or any number of other issues may be interfering with performance.  Regardless of what the cause of the poor performance, corrective action needs to be taken.  Here are a few steps to consider:

1. Schedule a meeting with the employee and discuss the actual performance issue - have a two way discussion to gather facts, information, and document your findings.
2. Step back from that meeting and analyze what you've heard and check the feedback/data for accuracy.
3. Within 24 hours have a second meeting to assess the alternatives and what action steps need to be taken by you (the manager) and the employee.
4. Set specific, measurable, and time-oriented objectives - if the employee needs skills they don't have, but are capable of developing, communicate what you expect them to do to get those skills - and set a time to periodically review what progress is being made.  Document those items and provide a copy to the employee and put one in your files.
5. Be available to coach, train, and answer questions.
6. If performance doesn't improve, you now have documentation to support whatever action you need to take:  moving to another position, demotion, or even termination.

Poor employee performance is every manager's challenge.  Addressing it in a straight-forward, fair, and timely manner will benefit you and your organization today and in the long run.

Focus On Execution Workshop at Meredith College return to top

Meredith College will be the site of the Focus on Execution Four Week Workshop Series.  It will be held each Thursdays beginning April 1st and ending on Thursday, April 22nd.

The four workshop series is targeted at executives, mid-level managers, small business owners/managers, and entrepreneurs looking to get things done.  The workshop takes actual issues (non-confidential) and works with participants to analyze, strategize, and act to get results.  Enrollment is limited due to the "hands-on" approach to the issues. Topics to be covered include strategy, accountability and performance measurement.  This is not a lecture series, instead it is about developing the ability of participants to achieve a balance between strategic planning and execution that gets right results for their business.

http://www.meredith.edu/professional/business-marketing.htm#focus

Trends in Taxation - Sales and Use Taxes return to top

Well, we all know that the tax man lurks around every corner looking for his fair share.  That fair share may be increasing in amount and complexity of reporting in 2004.  Due to significant federal and state budget deficits, states have been less willing to release funds to the counties and municipalities.  Recognizing the adverse impact that lack of "trickle down" funding will have on local governments and services, many states are amending the state taxation laws to enable local (city and county) sales taxes to be implemented.

The additional burden of taxes will impact businesses in more than the obvious taxes paid.  There will be an increased compliance and reporting burden for tracking the various rates and remitting those funds to the proper agencies.  Cities and counties may have varying rates and bases for applying those rates.

For example, if the city of Durham and Durham County would decide to add a 0.1% and 0.2% sales tax on all purchases, then the tax paid on a $100.00 purchase would increase by "just" $0.30.  If you also do business in Smithfield, Johnston County, and Raleigh, Wake County, and Charlotte, Mecklenberg County, and so on, and each of these areas added additional taxes, you have increased recordkeeping requirements for where each transaction occurs and what amount to remit.  What if they add the tax only to certain transactions - say computer equipment for office use - if they are used in the course of manufacturing processes, they aren't taxable - what does your recordkeeping look like?

An additional "risk" is that the complexity of tracking the various rates and taxable transactions increases the chance that your organization will incorrectly calculate the tax due (from you or from your customer). It is simply harder to track the rates and amounts, so the risk goes up.

What can you do?

1. Monitor what is happening at the city and county level.
2. Obtain reference books, websites, and other resources for checking on the rates.
3. Design, develop and implement business processes in your purchasing and accounting operations that ease the process (It's easier to do it at the time of purchasing (or selling) and work with the other party and accounting to identify the proper rates, than to try to catch the exception transactions after the fact.)
4. Train your purchasing and accounting staff on sales and taxes.
5. Investigate sales and use tax reporting tools like CCHZipSales™ (This isn't a product endorsement.) or other tax tools.
6. Consult experts in Sales and Use Tax compliance.
7. Talk to your CPA, bookkeeper, or other financial consultants.
8. Subscribe to newsletters and other publications that monitor changes in taxation and report on them.
9. Be proactive!

By taking a proactive approach to developing processes that support accurate transactions at origination, and having checks and balances between purchasing and accounting activities, you can reduce your risks.  Also, creating simple tools and reference sheets for "exception" transactions and tax rates can improve and simplify your tax compliance performance.  Here are some tools to consider developing for your team:

1. Reference Sheets of Standard Tax Rates - by vendor, geographic area, or other categories.
2. Spreadsheets for tracking "exceptions" - something that may appear to be taxed at one rate, but needs to be taxed at another.
3. Vendor files (on-line or hardcopy) with tax exemption certificates, location information, and categories of products/service to be provide with rates.
4. Sales and Use Tax Documentation Files: These files are copies of any invoices, correspondence, and/or reser4ach related to specific transactions and WHY you classified the transaction as you did.  These items are your documentation of what you were thinking at the time of the transaction and come for audits.
5. Spot Audits - Periodically, have your team self-audit.  It can be a single day of transactions, a particular vendor, or any other cross-section of transactions to see how your organization's processes are working.  If you find exceptions, go looking for where you need to correct the process (or performance) and expand your audit to identify additional transactions that match the criteria of the exception.  Make your corrections and remit taxes due or request a refund.

Death and taxes are unavoidable. Don't let sales and use tax compliance be the death of your company.  Implement a system that supports accurate and timely filings and remittance.  Some companies upon analyzing the transactions have actually found overpayments on transactions.  So it may not be all bad after all.

F.O.C.U.S. Resources One-on-One Advisory Services and Financial Model Development return to top

We believe our One-on-One Services differ significantly from other practices.  The F.O.C.U.S. Approach™ takes the financial perspective in reviewing the non-financial aspects of the business - determining where financial performance (good or bad) can be traced into disconnects in business processes. Once the processes issues are identified, we work with the client to develop solutions for improving those areas.  We also work with the client to develop their abilities to identify and address their own issues going forward.  Our commitment to transferring capability into the client organization to enable them to be independent of our services.

Financial Model Development isn't always necessary for each of our clients.  Often we use financial model development as a tool for determining the impact of possible or planned changes to the business.  Everything from running scenarios of the impact of slower than expected sales volumes, fluctuating production input costs, and various structure changes and redesigns are quantified through discussions, interviews, and analysis of the proposed alternatives.

One of the most successful models developed was used for forecasting a $13.2 billion materials purchasing operation.  Through the detailed model, we were able to accurately project cash flow needs and fluctuations to within $26 million over the course of the year.  The validity of the model was proven within 99.8%.  The same can be done for smaller businesses with careful analysis, time and validation processes.

Get Bottom-line Results - Executable Strategies! return to top

Have you heard the one "you get what you pay for"?  I think the business equivalent is "You get what you measure and reward."  I've witnessed and experienced companies that ask for one type of behavior and reward (through promotions, bonuses, and retention) another.

By now you have probably quantified last year's  "success".  Did you hit all of your performance targets? Did you make the $1 million profit you wanted? Did you increase your customer base by 25  customers? Did your revenues increase by 10%?  Whatever you were shooting for - did you make it?

Okay, right about now you are thinking about the economy, job losses, recessions, and increased competition (domestic and abroad).  There were a number of legitimate outside influences on your business.  The question is "Did you do as well as you could given those factors?"

Everyone in your line of business (and every other business) had to deal with pretty much the same external influences and challenges.  I bet some exceeded their performance targets (and no they weren't set unrealistically low!).  How could they? Did they? Can they?

The kept their eyes on the targets and aligned the organization to go after the desired results.  Reaching goals isn't accidental.  It is a result of sound, executable strategies and the tactics and resources that it takes to follow them.

You may have had too many targets.  They may not have been specific enough (increase revenues versus increase revenues by 10%).  Or you may have had just the right targets and they were clearly communicated, but the team didn't know each of their positions and roles.

Okay, time for an attempt at a sports analogy from football (and I'm not the best equipped person to write such an analogy (tennis anyone?)).  What if your quarterback waited for the defensive lineman to call the play?  How about the kicker trying to throw the ball through the goal posts?  Well, you get my meaning (at least I hope you do!).  A clear play book where all know their role and the expectations of what activities to undertake makes a difference in reaching the overall, bottom-line performance targets.

Here are a few recommendations:

1. Understand what your organization is and isn't capable of.
2. Communicate clearly and specifically what goal  you are going after - How much and by when (10% Revenue increase by 3rd Quarter 2004).
3. Define and communicate each person's role and the individual and team objectives. - Each sales person is expected to add three new clients each quarter of 2004 that generate at least $50,000 in additional sales.
4. Make sure your team has the tools to succeed - technology, training, etc.
5. Make sure you have the right team - right person, right job.
6. Check for progress periodically and provide feedback or corrective actions.

These suggestions are just a few basics for each business manager or owner to consider.  Keep them in mind as you make your way through 2004 and begin planning for 2005 and beyond. 

Did You Know This About Copyrights? return to top

1. Copyrights are (generally) automatic at the moment the author puts the creative work into tangible form.
2. You don't need to register copyrights for them to exist, but it is recommended in order to have more options to protect them.
3. Violators of registered copyrights can be fined up to $150,000 in statutory damages plus attorney fees and courts costs - per copy!
4. Employees, independent contractors, and other "work-for-hire" arrangements usually convey the copyright to the employer or hiring entity.
5. Copyright Duration is the life of the author plus 70 years.
6. Copyright Duration for Joint Authorships situations is for the life of the last surviving author plus 70 years.
7. Copyright Duration under work-for-hire agreements last 95 years from date of first publication or 120 years from first creation - whichever expires first.
8. Fair Use is a concept that was designed to ensure that a free flow of information is maintained.  The result is that some copying of materials is allowed in certain instances - news reporting, teaching or research - as long as the value of the copyrighted material is not damaged by the use.

For information specific to your intellectual property (copyrights, patents, trademarks, etc.) or situation, consult an attorney especially one that specializes in intellectual property law related to your specific needs.

Copyright © 2004 F.O.C.U.S. Resource, Inc.