Connect with us

Managing Staff

Staff Wise

Create a platform to help employees manage their personal finance.

Bryan Hirsch

Published

on

StaffWise

Andrew Carnegie is quoted as saying: “Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.”

It is important to understand that it is the people in the business who make things happen. In most organisations, the key element to success is the people who work in them. In the past, insufficient importance has been placed on this human factor that can determine the success or failure of a business.

How quickly circumstances in South Africa have changed: High interest rates as a result of high inflation, rising oil prices, disruptions in electricity supply and economic problems in the USA that have resulted in a worldwide credit crunch. The introduction of the National Credit Act in June 2007 to protect consumers has made it more difficult for consumers to borrow.

For these reasons small and large businesses – and individuals – are faced with very different challenges.

In the past, the general attitude was “leave your problems at home when you come to work”. But, businesses are increasingly aware of how difficult this is, and that what happens at ‘home’ or in a personal capacity can so often affect work performance.

Empowering staff with financial knowledge is the best way that employers can ensure full concentration and productivity from employees as they are secure in the knowledge that their financial circumstances are under control.

Can companies assist their employees in becoming more financially organised? Absolutely – by providing a platform to educate and assist staff through this often complicated process.

How to Help Employees

An important starting block is to help your staff understand what it means to be ‘financially organised’.

‘Organised’ people are probably able to provide details about their expenses and, off the top of their heads, particulars about their pension plans and savings accounts. The ‘financially disorganised’ would probably have some difficulty calculating even basic expenses such as the weekly grocery bill, and are more likely to react with a baffled expression if you ask about their pension or insurance plans.

Even with such stark differences between the two categories, creating a financial plan and writing all the details down is the best way to work.

To become ‘financially organised’, employees need to know what their monthly and annual expenses are, and what their bank balance is. Many people who consult financial planners have no idea how much money they have in their bank accounts. Being up to date also requires individuals to become acquainted with the details of their savings and retirement plans, insurance, tax, estate plans and long-term wealth creation investments.

These details are, however, still not enough. It is equally important to understand precisely how these different aspects of each person’s finances correlate with each other. Planning ahead is essential for unexpected developments.

Only when people understand their present and future economic needs, can their financial plan be considered sensible and ‘organised’. Certain factors change all the time. When this happens, all they need to do is revert to the existing plan to determine whether adjustments are necessary.

Financial Plans

A financial plan consists of more than just savings and investments. A significant component of your plan should be insurance, and each employee should know how much is needed to protect their family in the event of their own premature death. The following questions should also be answered:

  • How much will their family need if they have to stop working?
  • Will their pension allow them and their family to live comfortably after they retire?
  • Do they need the extra benefits of insurance?
  • Will there be benefits for their spouse when they are no longer around?
  • It is also important for employees to take care of their long-term welfare. How would they take care of themselves if they fell ill?

High up on the list is for employees to understand the employer’s policies and attitude. Many companies try to abdicate their obligation of continuing to fund medical aid premiums for people who have retired or are close to retiring.

Ensure that employees can see the bigger picture and are not focusing on just one aspect of their plan while neglecting others. Borrowing from financial institutions to meet savings goals is definitely not the right way to go. The interest you are charged is probably far higher than the returns you can achieve. You also need to realise that any investment you make has costs that must be factored into the calculations.

A financial plan is a long-term investment. Putting matters into order and preparing for the future by budgeting well, increasing investment returns, taking insurance or reallocating current assets are key to achieving your financial goals.

The Company’s Role

Companies are seldom qualified to take on the responsibility of dispensing financial advice to their employees. However, they can provide a platform for employees by contracting, at their own cost, independent financial organisations that will provide objective financial services to employees. Costs would range between R1 000 to R3 000 per employee. This is a small price to pay if the employee is going to get complete, independent advice without fear of buying a financial product, as the only way financial planners are rewarded is through commissions on products sold.

The biggest advantage in offering a service like this to one’s employees is that it provides stress relief, freeing employees up to focus on the business at hand and thereby increasing productivity.

BRYAN HIRSCH has been in the financial services industry for 47 years and is a director of Bryan Hirsch Colley & Associates. He has written two books, the first Bryan Hirsch’s Guide to Personal Finance and more recently, Steps to Financial Freedom. Bryan has written for many of South Africa’s top financial and business publications, has been a weekly guest on Radio SAFM for 18 years, and has his own weekly TV show You & Your Money on Summit TV.

Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Managing Staff

Why Small Teams Get It Done Better, Faster And Under Budget

How is a project delivered four months ahead of schedule and R2 million under budget? Because small teams deliver work within significantly shorter time frames and with smaller budgets. Here’s how.

THE TEAM SECRET

Published

on

small-team-collaboration

The challenge

We will focus on teams that are given tasks that must be completed within a specific time frame, for instance a set number of items by close of business or objectives to be reached by a specific date, and we will also investigate the difference in performance between larger and smaller teams. Our case studies are based on client interventions by a management consulting company that co-author Anton Burger worked for. During these client interventions he worked with and managed teams ranging from two to 110 people across various industries.

An interesting truth was revealed during two such client interventions several years apart when two teams, one large and one small, had to deliver the same type of solution. The smaller team delivered the work within a significantly shorter time frame and with a smaller budget.

Over the 19-year period that our co-author Anton Burger worked with and managed teams, the question was often asked, why are smaller teams able to achieve so much more? Let’s look at the following example.

A big life insurance company wanted to computerise their business processes to improve operational efficiencies. This would not only bring down operational cost but also improve customer experience.

Related: Why Small Businesses Are Unable To Pay Staff Salaries

The management team of the organisation approached Victor Pereira (pseudonym), a management consultant, to assist with the selection of suitable software to computerise the business and to put a team together to implement the system. A system was soon selected and a seven-member team was established.

The team consisted of a team leader, a two-man development team, an IT expert and a three-man business analysis (to determine the needs of the business) and testing team. The members of the team were all specialists in their fields and had much experience.

Besides the normal challenges that go with a project of this nature, there was one additional challenge — the version of the software in question had never before been implemented anywhere in the world. The client would be the first.

Adding to this challenge was the fact that, should any software code issues come up, they could only be resolved by the software provider based in the United States. This meant the team needed to be flexible and had to work after hours in South Africa to coincide with the working hours of the software provider.

However, the project team took ownership of the challenges and was determined to solve the issues and implement the system. The relatively small size of the team made communication and decision-making easier.

Large teams heighten complexity

Each team member was adaptable, committed to the project goals, and took ownership. This insured effective and high-quality deliverables. A combination of factors, such as the size of the team, the right people with the right skills and their commitment to the goals, ensured that the project was delivered four months ahead of schedule and R2 million under budget.

After the successful completion of the project, Victor was approached by the life insurance company to salvage a project to replace their outdated and disparate transactional systems (that had already been computerised) with a single modern system. The company had already spent some time and money trying to implement a new transactional system but little progress had been made. As project director, Victor was confronted with the challenge to restart the project and complete it within the original time frame with a smaller budget.

Given the time pressure, the company believed throwing a big team at the problem would help solve it. Up until this point in his career, Victor had predominantly worked with smaller teams and had never experienced the challenges surrounding teamwork in a team of this size.

A mixture of existing and new teams was assigned to the project. This overall team, totalling 110, was made up of multiple sub-teams ranging between four and 12, each with their own team leader. Multiple vendors supplied software components, which had to be integrated with each other and existing interfaces.

The multiple teams and vendors, combined with a highly regulated financial services environment, created an extremely complex project. The size of the greater team posed a significant challenge in terms of communication and co-ordination. Teams started planning their respective deliverables, sometimes without consulting or planning with other teams that were involved. Some team leaders excluded team members from the planning process, which meant that team members could not commit to time frames. This led to a lack of commitment with team members not taking ownership.

Consequently, the project struggled to gain momentum. A project of this scale requires careful planning and coordination between the different teams involved. Teams depended on deliverables from other teams to meet deadlines. For example, the development team could not start development unless the business analysis team had completed their business needs specifications.

The problems were exacerbated by the fact that team leaders did not have the right authority levels to make decisions on the spot and this also hampered progress. One of the key teams started missing critical deliverables, which had a negative impact on all the other teams.

The moment non-delivery becomes a reality, pressure mounts for all parties involved. At times like these the level of trust among team members is the glue that holds things together. However, in this case there was a breakdown in trust among some members of the overall leadership team.

At this point Victor realised that at the current rate of progress the team would not reach the project goals. An intervention was needed. He red-flagged it with the managing director of the company and it was decided that a different approach to coordination was urgently needed.

The project was stopped and the approach reevaluated. The entire project was re-planned but this time with all the team leaders and team members involved. Victor was astounded by the complete about-turn in the team morale. This resulted in more realistic timelines and commitment from all team members, which fostered a sense of ownership.

The project made good progress but sadly, due to the significant delays, the original launch dates could not be achieved and the project was over budget. Surprisingly (or not), the small team that was incorporated into the bigger team made excellent progress and delivered on their scope of work, on time.

Related: 7 Team Building Ideas To Create An Engaged Team

Small teams achieve better teamwork

The value of teamwork, the importance of managing teams well and even the effectiveness of smaller teams have been well documented and developed over the past 70 years. In the 1950s a more scientific approach was introduced to the concept of teamwork when two American engineers, Joseph M. Juran and W. Edwards Deming, took their philosophy on quality to Japan. They were invited by the Japanese Union of Scientists and Engineers to do something about the perceived poor quality of Japanese products.

Their thinking gave birth to the concept of Quality Circles — a system in which small teams of employees voluntarily come together to define and solve a quality or performance-related problem. Secondly, it led to Total Quality Management — a system of managerial, statistical and technological concepts and techniques aimed at achieving quality objectives throughout an organisation.

This system expanded into teams with the relevant authority (at low levels) to make decisions. During the late 1980s and early 1990s organisations across the globe were dominated by self-managing teams,  relatively small and highly autonomous work teams that take responsibility for a product, project or service, and self-directed teams,  small groups of employees who have day-to-day responsibility for managing themselves and their work.

Another type of team that is often used to improve organisational performance is a mission-directed work team. The aim of mission-directed work teams is to provide leaders and their teams with the skills to:

  • Achieve high and continually improving levels of quality, speed and cost effectiveness
  • Establish goal alignment and business focus
  • Benchmark themselves against best leadership and workplace practices to identify and address high leverage areas for improvement in a systematic manner
  • Create a visual workplace (the use of pictures, graphics and other images to convey information and meaning quickly and simply) to simplify the management
  • of objectives
  • Achieve teamwork, participation and continuous learning.
  • Work teams have gained worldwide acceptance in organisations. However, while teamwork is essential to organisational performance, effective teamwork is often elusive.

A decline in effectiveness is often caused by teams that are too big, teams that do not have a clear purpose or a structured plan or are made up of the wrong members. Teams that are not trusted with great responsibility and are not allowed much freedom to make their own decisions may also fail. Conflict, mistrust and poor leadership are often the leading causes of poor performance by a team.

Professors Martin Hoegl, head of the Institute of Leadership and Organisation at Ludwig-Maximilians University in Munich, Hans Georg Gemuenden, of BI Norwegian Business School, Oslo and K. Praveen Parboteeah of University of Wisconsin–Whitewater investigated the effects of team size on teamwork quality among 58 software development projects. They found that the top five teams, in terms of teamwork quality, ranged in size from three to six members and the bottom five from seven to nine members. More significantly, on average, teams of three members achieved 63% of the teamwork quality of the best team, which is in stark contrast to teams of nine members which only achieved 28%.

Continue Reading

Managing Staff

7 Simple Steps To Strategise For 2019’s Success

To make that happen you will need to start strategising soon. So let’s talk about how all of us can create effective team strategies for 2019.

Revel Africa

Published

on

business-strategy

With the buzz and hoopla in full swing this holiday season, as managers and business owners it’s good to remember that the new year is right around the corner. We all want next year to be better than this one, and you probably have a few improvements in mind that you want to see come to fruition.

To make that happen you will need to start strategising soon. So let’s talk about how all of us can create effective team strategies for 2019.

1. First, clarify your goals

To know what the new year should look like, start by understanding what this year was like. Pull reports now while data is fresh, and look at this year’s performance. Identify the changes you’d like to see in the upcoming year.

Then you can clearly see what you want your team to achieve in the new year:

  • What specific metrics need work?
  • Do you want to see an increase in overall revenues by a certain percentage?
  • How about improving productivity and cutting costs?

2. Time to plan

Once you have an idea of what needs changing you can work out the details of how you will achieve it.

Consider the SMART acronym when putting your plan together. Is your plan:

  • Specific (simple, sensible, significant).
  • Measurable (meaningful, motivating).
  • Achievable (agreed, attainable).
  • Relevant (reasonable, realistic and resourced, results-based).
  • Time bound (time-based, time limited, time/cost limited, timely, time-sensitive)

As leaders we need to lead with clarity and decisiveness, but we will do well to gain the input and ideas of those we lead.

Once you have your plan in place, you can bring in your team.

Related: Planning A Year End Function On A Budget? Five Fabulous Tips To Get The Most Bang For Your Buck

3. Book a break-away meeting

Plan your meeting after the holiday season has passed. The start of the year is a good time, as everything has calmed down, minds are fresh, and people are ready for vision. So, early in January, bring your key management team together and let them know you would like to discuss the goals for the upcoming year.

Plan a meeting away from the office so that the usual distractions are eliminated, and you can all focus on the key objectives. Sometimes we need help arranging these things, like finding a great venue, arranging food, including ice-breakers, creative starters and games to get the juices flowing, and so on. This is not your core skill set, so consider hiring an event planner and an MC to keep the day on track, so that you can focus on the main thing – getting the team focused and energised for success in 2019.

4. Setup the meeting agenda

Start the meeting by bringing everyone up to speed by reviewing last year’s stats. Show the results that you reviewed and allow them to see where the areas of success were, as well as the areas that need attention. If you haven’t already, recognise the team members who stood out in various important aspects of the business. This is tremendously motivating and encouraging.

Get a conversation going either in small teams, or around the table where ideas are brainstormed for how to solve the areas that need improvement. Find out from the team why they think the business struggled in these areas, and how they think improvements can be made.

Your agenda could cover these conversation starters:

  1. What are the three most important objectives for this year. Think “big picture” here, things that touch on profit and future achievement.
  2. Who is responsible for each of these?
  • What will you do?
  • How will you do it?
  • By when will you do it?
  1. Break the year up into monthly metrics and put quarterly goal-planning reviews on your calendar. This commits you to pause and measure every 90 days, while keeping a close eye on profits, clients, projects, revenue in 30-day intervals.
  2. Link up. Remember, lone wolves starve to death. Think about who can you partner with in 2019 to reach your goals – who are your advocates, allies, referral sources, and potential joint venture partners who can help you leapfrog over obstacles and who complement your own products and services. Get contact details and build your relationship with them so you can collaborate more closely – starting right now.

Remember to take breaks that are fun and creative in order to unhook from this intense deep dive into strategy. You don’t want to burn out your team right at the start of the year. Keep snacks, water, and activities going so that they have fuel to keep on but start the year motivated and positive.

5. Draw up the final plan

Once done, it is time to go through all of the input you have received to supplement your strategies, and draw up the final plan. When your final plan is ready, bring the remainder of your team together and lay out the plan for 2019. This can be done via a video recording, Skype, an email, a meeting, or one-on-one conversations, depending on the size and locations of your team. Be clear about what they need to bring to the table in 2019 and how it will be measured. Then ask for a commitment from each team member to work toward the improvement in the coming year.

6. Tracking and Measuring

Once the team is committed and bought into the 2019 strategy, you’ve only just begun. Set policies and procedures in place to track progress, provide updates, and hold people accountable to their commitments. Some managers might opt to check the metrics daily and send out weekly updates, while others may check weekly and send out monthly updates. Whatever you decide, consistency is key to ensure you stay on track to achieve your goals in 2019.

7. Invest in resources for success in 2019

As this year winds down, commit yourself to leading, motivating, and inspiring your team to work together towards your common goal. Plan how you can come alongside your managers to ensure their success by offering mentoring, support, training, and whatever resources they need to achieve these goals.Their success is ultimately your success.

Similarly it might be a good time to invest more into your own growth – consider a mentor for the year ahead who can help take you past your own limitations and rutted thinking. Read books on leadership and other’s business successes; plan three mini-holidays in the year to keep you sharp and focused. Remember you can only give to others what you yourself have.

This simple yet effective strategy can be applied to whatever type of business you are in, and can help you gain the buy-in of your vision by your team and make 2019 a year of achievable success.

Continue Reading

Managing Staff

The Value Of Employee Growth

When you’re running a fresh and shiny new business, how do you ensure your employees feel like they have a place to go?

Chris Ogden

Published

on

employee-growth

Investing into the future of an employee is a complex task at the best of times. Well-established organisations battle to manage employee expectations and growth trajectories so what options does a startup have when it is still finding its feet? While having an agile and energetic young company is often enough of a drawcard for talent, you still need to create pathways that are unique to your business and that allow for employees to grow, both personally and professionally.

Step 01: Embrace difference

Recognise that your business is made up of a variety of different roles and that each one offers different employee pathways. You need to find the pathways and roles that suit an employee’s personality and their idea of where they want to grow.

It’s in seeing these differences and embracing them that you are already providing your employees with a voice and showing them that they are heard.

Related: 5 Benefits Of Turning Your Employee Into An Intrapreneur

Step 02: Be inventive

Find a way of creating growth opportunities even with the few roles you have in your business. For example, you could create a methodology that has tiered levels within a specific role. Then a person has opportunity to expand their skills and responsibilities in that role. This would work for roles that are fixed, like an office admin, or for roles that are flexible.

Step 03: Finance and responsibility

Outline how a person can grow financially and show them the additional objectives and responsibilities their role offers. Some people aren’t just about the money, they want more to do and they don’t want to be bored.

Step 04: Key Performance Indicators (KPIs)

It is essential that you measure people so that you can create opportunity for them. Tell them their KPIs so that they have benchmarks and everyone has expectations. This allows you to let people know when they are or are not doing well.

They can assess their performance properly and there is no risk of people having differing expectations that impact on ability or role. You must openly and honestly review employees and yourself.

Related: 6 Ways To Build Your Business With Employee-Entrepreneurs

Step 05: Encourage mentorship

It’s really worth encouraging people to guide or mentor one another. Some people may stay in your business for years, some only for a few months, but you want to see them all grow. By creating an environment that inspires people to mentor and guide one another, you’re ensuring that every person in your business is given a chance to teach and to learn.

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending