Tuesday, February 26, 2013

Einstein - Definition of Insanity

Insanity in the Sign & Graphics Industry

Einstein's Definition

Albert Einstein once said "The definition of insanity is doing the same thing over and over again and expecting different results". Think about this quote for a second and ask yourself, does this quote apply to the way you run your company?

Einstein - Definition of Insanity

Have you been doing the same thing over and over again expecting different results? If so, then you might want to keep on reading. In a world where technology is becoming a key productivity tool to the success of any business, it simply comes down to, are you accepting and harnessing technology or rejecting it. Are you willing to change or will you do the same thing over and over again? T

Here are two main reasons why I pose this question. First, many shop owners today have trouble understanding how new technology, specifically software, can become a major benefit to their business, and second, owners have trouble measuring the profits they are losing by rejecting this technological change. Have you ever rejected technology?

"If It Ain't Broke Then Don't Fix It!" Mentality

Are you expecting to increase profits by continuing the same business strategy year after year? If so, how long do you think the method will work?

Many shop owners simply do not see the need to update or change their current method. They believe that there is no need to invest in a new method when the old one still seems to work fine. This is the common, "If it ain't broke then don't fix it!" mentality. Well, I hate to be the one to say it, but just because something isn't "broke" doesn't mean you can't make it work better. When new technology such as software, could save you large amounts of time & money, how can you not accept it?

In an industry where there is an increasing level of competitiveness, shop owners must take advantage of every method available to help them cut costs. Would a commercial printer looking to grow their business, limit their shop to just a one color press? Sure they can continue to operate with a one color press, but wouldn't a two or four color press help expand their business into other areas more effectively. In this example the current method works, but a technological change would help increase the company's ability to grow.

Exploring these other areas help companies to sustain and increase profits. Without accepting new technology, shop owners greatly limit their profit potential. By using the power of technology to make their business practices more efficient owners can continue to achieve their goals.

Are You Sacrificing?

A lot of shop owners that we talk with have a hard time visualizing the amount of money they are losing, or in actuality, the amount of money they are giving to their competition, due to inconsistencies in the work flow process. These shops feel they are doing well with the system they currently have in place and do not see the need to change to a new method. This lack of vision can cause owners to limit their future profits.

On the opposite side, the owners that do see a need for change begin to focus more attention on how much money it will cost to make the switch rather than how much they are losing. These owners become unsure and wonder if the investment today will pay off tomorrow. To those owners, how much will it cost you not to switch? Do you even know? Is it one, three, possibly five jobs a day? Do the math. How much money/time is lost due to inefficiencies such as faulty estimates, under/over-priced jobs, or lost invoices.

Ask yourself, how long can a company continue to compete if they are not being as efficient as their competition? If companies choose to stay with the same system they have been using for years and reject change are they, in essence, choosing to sacrifice future profits?

0,000 a Year

One company in particular that we spoke with was losing 4 orders per week to their competition. Since only one person in the shop was able to estimate, it was taking days to get quotes to customers, therefore forcing their clients to seek, and eventually accept bids from competing companies. When this company finally analyzed their method and applied a dollar amount to the loss, they estimated they were losing around 0,000 in revenue a year. Amazing right? What would 4 orders a week cost you? Or if you could accept 4 more orders a week, what would you do with the extra profits? How does a company like this one miss out on a 0,000 opportunity? Simply put, insanity, the Einstein definition.

It's not Just Estimating

Companies are not just losing profits due to faulty estimates; they're also losing profits due to a lack of follow up, or customer management. When sending estimates out to potential clients, how often do companies remember to follow up with them? With the constant chaos that shop owners experience on a daily basis, this follow up process can become an aspect that is quickly forgotten, especially if the current estimating system doesn't include this integration.

How much can a company increase their "win" rate for estimates by placing follow up calls to all customers with estimates outstanding? By using a powerful integrated estimating and business management software, like Cyrious, company's are able to create reminders that will tell employees who to call, when to call, and why, automatically. It keeps all customer, contact, and order information together in one place and increases the ability to save time and builds customer relationships essential to business growth and expansion.

Adapting to Change

By adapting to change, and accepting and harnessing technology, shop owners who use Cyrious Software have become more efficient and profitable.

Cyrious helps owners solve a variety of different frustrations. Whether you're an owner who is frustrated with estimating because it takes up too much time or one that is annoyed that orders keep getting lost and misplaced, Cyrious has a solution. Cyrious helps put an end to the lack of integration by providing the power of multiple software systems in one (estimating, accounting, job tracking, customer management, etc.). No company is happy about losing customers due to late quotes or losing money because parts are omitted from estimates and orders.

When owners understand the amount of time and money a different method can save them, the switch to powerful software like Cyrious is simple. Is it time for you to explore different methods to increase sales & profits, and make your business more manageable?

For More Information on Cyrious Software go to http://www.cyrious.net, call 1-800-552-1418 , or email info@cyrious.net

Einstein - Definition of Insanity
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Danny Tangredi, Cyrious Software " Your Estimating, Business Management & Job Tracking Software Solution "

dtangredi@cyrious.net

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Wednesday, February 20, 2013

Transformational Leadership Theory - The 4 Key Components in Leading Change & Managing Change

Transformational leadership theory is all about leadership that creates positive change in the followers whereby they take care of each other's interests and act in the interests of the group as a whole. James MacGregor Burns first brought the concept of transformational leadership to prominence in his extensive research into leadership.

"Essentially the leader's task is consciousness-raising on a wide plane. The leader's fundamental act is to induce people to be aware or conscious of what they feel - to feel their true needs so strongly, to define their values so meaningfully, that they can be moved to purposeful action."

In this leadership style, the leader enhances the motivation, moral and performance of his follower group. So according to MacGregor - transformational leadership is all about values and meaning, and a purpose that transcends short-term goals and focuses on higher order needs.

Transformational Leadership Theory - The 4 Key Components in Leading Change & Managing Change

At times of organisational change, and big step change, people do feel insecure, anxious and low in energy - so in these situations and especially in these difficult times, enthusiasm and energy are infectious and inspiring.

And yet so many organisational changes fail because leaders pay attention to the changes they are facing instead of the transitions people must make to accommodate them.

In my view it is the responsibility of the director leading the change to supply an infusion of positive energy.
The transformational approach also depends on winning the trust of people - which is made possible by the unconscious assumption that they too will be changed or transformed in some way by following the leader.

The transformational approach also depends on winning the trust of people - which is made possible by the unconscious assumption that they too will be changed or transformed in some way by following the leader.

This is often seen in military commanders and wartime political leaders. An example of this would be the way in which Lady Thatcher - as Prime Minister of the UK Government during the Falklands War in 1982 - was able to engender an enhanced feeling of British national identity amongst the UK population.

Sounds like this leadership style is ideally suited to change management, doesn't it? However - this approach requires absolute integrity and personal behaviour that is consistent and resonant with your vision and message.

I can recall a ridiculous situation, at one UK company I was involved with, where the directors were attempting to effect a culture change of greater inter-departmental trust and communication yet still retained a separate directors dining room and specially allocated car parking places closest to the office front door!

OK here's the important bit - how NOT to apply transformational leadership theory to change management

- Be preoccupied with power, position, politics and perks
- Stay focused on the short-term
- Be hard data oriented
- Focus on tactical issues
- Work within existing structures and systems
- Concentrate on getting the job done
- Focus processes and activities that guarantee short-term profits

Doesn't all this just sound like a description of a typical good project manager with a task driven mentality?

And hey, I have nothing against this style of leadership and management. There is a time and place for the Attila the Hun school of leadership. I have done it many times myself and very effectively - and with no regrets.

But, this leadership style is not enough in a change management situation and particularly in the current climate.

The four components of the transformational leadership style are:

(1) Charisma or idealised influence - the degree to which the leader behaves in admirable ways and displays convictions and takes stands that cause followers to identify with the leader who has a clear set of values and acts as a role model for the followers.

(2) Inspirational motivation - the degree to which the leader articulates a vision that is appeals to and inspires the followers with optimism about future goals, and offers meaning for the current tasks in hand.

(3) Intellectual stimulation - the degree to which the leader challenges assumptions, stimulates and encourages creativity in the followers - by providing a framework for followers to see how they connect [to the leader, the organisation, each other, and the goal] they can creatively overcome any obstacles in the way of the mission.

(4) Personal and individual attention - the degree to which the leader attends to each individual follower's needs and acts as a mentor or coach and gives respect to and appreciation of the individual's contribution to the team. This fulfills and enhances each individual team members' need for self-fulfillment, and self-worth - and in so doing inspires followers to further achievement and growth.

Transformational leadership applied in a change management context, is ideally suited to the holistic and wide view perspective of a programme based approach to change management and as such is key element of successful strategies for managing change.

And, to ensure that you ARE employing successful strategies for managing change - that are appropriate to your organisation - you need to know how to apply: (a) these transformational leadership skills, AND (b) how to apply the supporting programme management based processes - to ensure that you avoid the catastrophic 70% failure rate of ALL business change initiatives.

Transformational Leadership Theory - The 4 Key Components in Leading Change & Managing Change
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For more on this: " Transformational leadership theory "

I invite you to take advantage of this FREE download: Starting the Change Process "

Find out the 3 main reasons for the 70% failure rate of all step change initiatives and how to avoid it. This FREE 29 page document offers a brief introduction to some of the key themes and key points that you need to consider in starting the change process.

Stephen Warrilow, based in Bristol, works with companies across the UK providing specialist support to directors delivery significant change initiatives. Stephen has 25 years cross sector experience with 100+ companies in mid range corporate, larger SME and corporate environments.

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Thursday, February 7, 2013

Why Strategic Change Management is Important

When a corporation needs to reinvent itself, the change that needs to occur should be purposeful. Trying to decide how to change and what to change can be just as frustrating as the actual change. The process of strategic change management involves developing an innovative vision for where the company needs to be, and then developing and equally innovative path for achieving the goal. Sound like a lot of hype? Truly, it is not. No one wants to have change just for the sake of doing things differently. It needs to make sense with the direction the company is trying to move in. A reasonable pathway toward the goals needs to be determined and embarked upon by all the people in a company in a choreographed manner.

Take for instance a bakery that has had a steady decline in sales. The first step is to decide what caused the decline. As the employees brainstorm and decide that the customer base wants, more healthy choices in addition to the standard bakery fare the beginnings of a strategic change plan form. In order to provide healthier food choices many things have to occur. What foods will be offered must be decided. How will they be prepared, who will prepare them, what type of daily inventory needs to be kept, what types of packaging are needed and the list goes on and on. In order to manage all of the steps a well thought out plan must be developed. This is the basis of strategic change management.

The bakery employees will have to work as a group to determine a map for which items must be adjusted and at what stages in the process. They cannot order new packaging supplies before deciding what foods they will be selling. The plan needs to follow a logical order. It also needs to be flexible to account for changes along the way. Encouraging all the employees to participate ensures that all areas of the change are reviewed. One person cannot think of everything so everyone needs to share in the plan.

Why Strategic Change Management is Important

Strategic change management is not a difficult or foreign concept. It is just about putting a name to a natural organized process. Outcomes are usually better and the organization can withstand the changes better when they are purposeful and universally agreed upon. Even if the individual elements are not what everyone thinks is best as long as they are working together toward the common goal the successful implementation of change will occur.

Why Strategic Change Management is Important
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Visit our blog for strategic management concepts, or explore our strategic planning consulting using the Six Rings Model.

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