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Business owners of all sized businesses
Business owners! Expand your business empire through people.
Business owners can accelerate business growth through people.
Among all living beings on earth, humans have the highest brain power. But you already know that.
When you buy a piece of equipment or machinery for your business purposes, you expect to get the highest possible profit out of it, in the shortest possible time. In other words you want the highest return on your investment (ROI)! Do we now have your attention? Are you starting to get interested?
OK, the only problem with a piece of equipment or machinery (also known as a “fixed asset”) is that your business operations with it, will be limited by the built-in mechanical output or production capacity.
Your investment in your employees (also known as “human capital”) in the form of wages, salaries and fringe benefits (also known as “total cost to company”), are normally quite substantial, if not in the highest ranges of regular costs.
However, human capital capacity is of a totally different nature! It is not limited by a mechanical built-in capacity!
How healthy is your ROI on your human capital total cost to company? To put it a bit simpler: How good is your return on your investment in people? How profitable is it really, do you think? Starting to think a bit? Are they giving you more back than what they cost every single month? Are there months when you think you are maybe wasting your money on them or some of them? It is easy to tally the total monthly monetary cost of employees. How easy is it to calculate the monetary value they are giving back? Would you not have liked to know it? It is quite easy to work out the profitability of machinery or a process, but how easy is it to work out the profitability of human capital, when you cannot identify and isolate it within total monetary income?
How many accountants, auditors and business owners can work out the ROI of labour. It is only possible where total income is solely due to labour. In most cases the efforts of labour are intermingled with contributions of raw material, processes and machinery inside total income in accounting systems
We are now beginning to tamper into dark and unknown territory, not so! It makes it frustrating not to be able to know.
There is however, a bright light glowing on the horizon, winking at you to come closer, which can enable you, as business owner, to see the influence your human capital can have on total profitability; whether it is rising or falling.
Business owners have the authority and power to increase or decrease human capital capacity.
1. Your human capital asset, is your only asset with built-in flexible capacity, whether you are delivering services or products.
2. Equipment, machines and processes, as assets, do not have built-in flexible capacities; they are lifeless without human capital.
3. Only human capital can change the inflexible built-in capacities of equipment, machines and processes to become more productive.
4. Only human capital can change the availability and utilization of equipment, machines and processes.
5. Only human beings are manning and using the facilities, equipment, machinery and processes you provide, with flexible feelings and flexible attitudes.
Normal human beings have built-in needs for self-satisfaction and self-actualization.
1. These built-in needs of humans create a desire to succeed, achieve and perform as employees in a work environment.
2. Not only do they arrive with these desires, but they also arrive with flexible capacities for new ideas, improvements, ingenuity and creativity.
3. This flexibility in “human capital” is referred to as “human capital talent”, which can be the greatest asset any business can ever hope to have.
4. When human capital talent can operate in a work environment, where they can satisfy their needs and desires, their feelings and attitudes can change to reflect appreciation, thankfulness, happiness and loyalty.
5. Positive feelings and attitudes in human capital can unlock slumbering talents for new ideas, improvements, ingenuity and creativity for higher total business profitability. This is the bright light glowing on the horizon.
Recent research studies indicate that bosses and business owners fail miserably to satisfy employee expectations, needs and desires:
“Even in a down economy 2 million Americans quit their job every month. The majority of people, quitting or not, are currently unhappy in their corporate jobs. Recent studies indicate a full 74 percent of people would today consider finding a new job and 32 percent are actively looking. The reasons for their unhappiness:
1) They don’t like their boss (31%),
2) A lack of empowerment (31%),
3) Internal politics (35%) and
4) Lack of recognition (43%).”
In other words, these employees have become disillusioned and disengaged. What is the lesson here? Do all you can to avoid your employees go down the same route.
Source: Article by Forbes
Our deductions from the above findings: 1. The majority of bosses and business owners in the world today, do not have a clue how to engage, inspire and utilize employee talents. 2. Notwithstanding abundance of information in modern times, they have fallen behind times, as if they have left their minds behind on another planet. 3. It can also be due to lack of interest and exposure.
Those who want to explore these findings further, can start with this link:
Those who want more free information on leadership qualities online, can find some here.
Find an extraordinary collection of leadership resources inside this free Online Leadership Library in a free PDF file.
Human capital talents come in a ready-made package, eager for talents to be utilized.
How lucky can business owners get, with different human capital talents falling into their laps? It all depends on what business owners make of it!
Do you know how to unlock human capital talents? Become a member to get the four sets of competencies to improve your business profitability and grow your business empire like never before! Becoming a member will enable you to get the solutions for making employees feel like co-owners!
If you know how to mine for the gemstones, latent in the brain cells of employees, you will be able to uncover and expose those gemstones for your business to thrive on! Business owners and bosses can break a business by remaining ignorant and arrogant, but can also make a business by mining for the gemstones.
Those with high interest in modern human capital talent trends, can also visit these pages:
“The science of getting rich” e-book for buyers of membership:
“Whatever may be said in praise of poverty, the fact remains that it is not possible to live a really complete or successful life unless one is rich. No one can rise to his greatest possible height in talent or soul development unless he has plenty of money.” – Wallace D. Wattles (1864 – 1911)
Preface in the e-book:
THIS book is pragmatic, not philosophical; a practical manual, not a treatise upon theories. It is intended for the men and women whose most pressing need is for money; who wish to get rich first, and philosophize afterward. It is for those who have, so far, found neither the time, the means, nor the opportunity to go deeply into the study of metaphysics, but who want results and who are willing to take the conclusions of science as a basis for action, without going into all the processes by which those conclusions were reached.
It is expected that the reader will take the fundamental statements upon faith, just as he would take statements concerning a law of electrical action if they were promulgated by a Marconi or an Edison; and, taking the statements upon faith, that he will prove their truth by acting upon them without fear or hesitation. Every man or woman who does this will certainly get rich; for the science herein applied is an exact science, and failure is impossible. For the benefit, however, of those who wish to investigate philosophical theories and so secure a logical basis for faith, I will here cite certain authorities.
The monistic theory of the universe the theory that One is All, and that All is One; That one Substance manifests itself as the seeming many elements of the material world – is of Hindu origin, and has been gradually winning its way into the thought of the western world for two hundred years. It is the foundation of all the Oriental philosophies, and of those of Descartes, Spinoza, Leibnitz, Schopenhauer, Hegel, and Emerson.
The reader who would dig to the philosophical foundations of this is advised to read Hegel and Emerson for himself.
In writing this book I have sacrificed all other considerations to plainness and simplicity of style, so that all might understand. The plan of action laid down herein was deduced from the conclusions of philosophy; it has been thoroughly tested, and bears the supreme test of practical experiment; it works. If you wish to know how the conclusions were arrived at, read the writings of the authors mentioned above; and if you wish to reap the fruits of their philosophies in actual practice, read this book and do exactly as it tells you to do. The Author.
Here is the table of contents for “The science of getting rich” of only 50 pages:
Preface: By the author
Chapter 1: The Right To Be Rich
Chapter 2: There is A Science of Getting Rich
Chapter 3: Is Opportunity Monopolized?
Chapter 4: First Principle in The Science of Getting Rich
Chapter 5: Increasing Life
Chapter 6: How Riches Come to You
Chapter 7: Gratitude
Chapter 8: Thinking in the Certain Way
Chapter 9: How to Use the Will
Chapter 10: Further Use of the Will
Chapter 11: Acting in the Certain Way
Chapter 12: Efficient Action
Chapter 13: Getting into the Right Business
Chapter 14: The Impression of Increase
Chapter 15: The Advancing Man
Chapter 16: Some Cautions, and Concluding Observations
Chapter 17: Summary of the Science of Getting Rich
The following two e-books are also included for buyers of membership:
The titles of the above two e-books are:
“The business plan blueprint – shortening your business learning curve”
“Guide to writing a business plan – a universal template designed by auditors for all types of businesses”.
Just fill in the details and your bank loan application is ready!
This alone is worth more than the asking price for lifelong membership!
What other training manuals are included in membership for business owners, entrepreneurs and their employees?
The five most essential financial skills for non-accountant business owners, namely, understanding accounting principles, assessing financial performance, cash flow analysis, interpretation of financial statements and reading a balance sheet.
These five training manuals displayed above, are regarded as the five essential minimum financial skills for non-accountants, but who may be in positions of authority in private and public sectors, desperately in need of the skills. It is common knowledge that many government employees worldwide, who need these skills, do not have it. No wonder that many of those government organisations are miserable financial failures!
Many job positions in public sector organisations, are also in dire need of acquiring the five essential minimum financial skills for non-accountants displayed above, to be successful in running and managing those organisations.
Performance management quality
Quality assessment of a performance management system.
With more than 2000 different performance management systems in use worldwide, with various degrees of being an ideal system, here are a few questions forming an assessment questionnaire, covering some minimum requirements for an integrated performance management system. It can hopefully help to get an idea of how an existing system compares to an ideal system, which can be described as the “right way”.
Definition of an integrated system:
A definition of “integrated” can be clarified as follows: “To make into a whole by bringing all parts together; unify and combining or coordinating separate elements so as to provide a harmonious, interrelated whole; organized or structured so that constituent units function cooperatively”.
Try to answer the following questions:
1. Is strategic planning part of the regular business processes?
2. Is the PMS in support of the overall strategic plan or in isolation?
3. Is performance measurement a continuous process or at certain longer intervals only?
4. If there is a strategic plan, how is the successful execution of plans monitored on a regular basis?
5. Is employee performance measurement, review or evaluation ending up in the same universal factors being evaluated for all positions?
6. Is employee performance measurement based on different factors for different job tasks?
7. Is employee job objectives coupled to cascading job objectives from the top tiers and broken up into sub-objectives down through the ranks?
8. Is short interval control part of the PMS so that self-control can take place for immediate corrective actions on the level where deviations from standards are first detected?
9. Is the PMS following the rule of shortening control intervals for consecutive lower operational levels?
10. What would you say is the main purpose with your performance management system? Is it perhaps only window dressing, to pacify shareholders or to boast its existence in the annual report?
11. What is the secondary purpose with your performance management system?
12. Apart from the main purpose and secondary purpose, is the PMS also serving more purposes?
13. Can you list proven benefits derived from the existence of your PMS? What are they?
14. Is the PMS inspiring enthusiasm, initiative, problem-solving, creativity and the urge for continuous improvements in employees?
15. What effects do your PMS or lack of it have on employee morale, attitudes and feelings?
16. What are your employees’ opinions on the fairness of merit ratings and salary increases?
17. Does the system make provision for short term employee performance feedback and combined with identification of meaningful future employee development areas?
18. In case your organisation also has longer term projects, which may not be ideal for fitting into the normal shorter term business environment for the PMS – Is the performance management system making provision for longer term projects to be planned and measured along the lines and methods in use for engineering projects? We are referring for instance to the critical path method (CPM) for analysis and planning and project evaluation and review technique (PERT) for evaluations. Histograms can also be used to display actual progress against planned progress in the shorter term. We believe the methods used in engineering can make just as good a fit for other types of projects.
19. If you do not have a PMS, how does your organisation ensure cohesive co-operation by and between all role players to perform harmoniously together and in tune like a top symphony orchestra?
20. If you do have a PMS in place, list the beneficial and positive outcomes for your organisation.
21. List the deficiencies and negative outcomes for your organisation.
22. Are the positive outcomes outweighing the negative outcomes?
23. What will be your recommendations for improvement of your performance management system?
24. Are worker trade unions hampering or boycotting the implementation of a proper PMS? What possible tactics can be employed to make them part of the solution?
25. If you do not have or do not want a PMS, what are the possible benefits that the non-existence of it, can have for your organisation in the long run?
1. Performance Management as a system, if done correctly, is not intended for an annual review event only. With more than 2000 PM systems in use worldwide, each with its own interpretation of what is the right one, it is no wonder that some say cascading objectives end up in the same factor being evaluated for all jobs. We fully agree that it cannot be. Each job title has its own objectives, differing from the next one. A PM system can have more benefits than negatives if done correctly. It should daily encourage people to do what they are supposed to do. It can also function as automatic self-control and immediate corrective actions on the lower level where it is first identified, making life easier for higher levels. It should focus on continuous future organisation improvements and human capital talent development, instead of solely for the purpose of a once per year merit increase.
2. The intention with the right performance management system is to get organisation-wide support for the organisation strategic plan and specifically to get rid of subjective opinions and evaluations.
3. Not all organisations are in need of a performance management system. When an organisation is still small enough, the top man can control task outcomes of employees by means of direct contact and communication. When an organisation expands and the quantity of employees outgrows the attention span of the top leader, it can become more and more difficult to stay updated on how well the performance of all employees is. Then it can become time for a performance management system to come in handy as rescue mechanism for the top leader.
4. The first and main purpose with a performance management system should be to serve as a mechanism for more successful achievement of strategic plans and objectives. The possible other purposes and benefits will then follow automatically or more easily, with some adjustments.
5. To see a video of how to use the Critical Path Method (CPM) as analysis and planning tool for planning change in organization culture, go to this post.
See our design of a performance management system here in this post. Free download a bundle of six e-books, compiled as a combined effort by several Universities, for use by the USA Government Departments, on that page.
Download this questionnaire free in PDF format by subscribing to our occasional newsletter:
To get the download links, one must confirm the authenticity of one’s email address, by clicking the link in our email to you. If you do not confirm, the links will never reach you in our second email.
The necessity of a formal performance management system can become less important, when the majority of the workforce of an organisation becomes mature enough to replace the formal system with a personal self-driven informal monitoring system. In other words, it can be abandoned, when individuals have received ample internal/external training to apply all the elements of a performance management system automatically themselves on an individual basis, without being officially forced to do so. However, how many can lay claim to this type of knowledge and maturity?
Persons who buy membership also get the following six videos with PDF transcripts:
Video 1 – Key objectives and standards:
The other five:
Video 2 – Critical objectives and standards:
Video 3 – Specific objectives and standards:
Video 4 – Action plans:
Video 5 – Control reports:
Video 6 – The sergeant stripes principle:
Persons who buy membership also get this e-book titled:
“The science of conducting effective meetings”: