FAT-WHYME

Six mistakes to avoid in the recovery comes

While the Federal Reserve, Ben Bernanke, said last week that the recession is "very More likely, the recovery is just beginning. Many executives and business owners want to achieve with these changes and return to 'business as usual " and therein lies the problem. "Business as usual" has caused (or at least exacerbated) the issue, at which date may not be beneficial long-term the company.

Productivity typically rises during a downturn, because everyone is looking at the books and the organization works hard to do more with less. The normal increase in productivity in previous recessions (1970 – present) an average of 0.8%. In a recent article, the Wall Street Journal that U.S. productivity has increased in this crisis an average of 2.5%, or 3 times the average of the last six recessions. While part of this increase is the significant cuts workers wages and benefits of this increased productivity may be due to better utilization of human capital and business processes more intelligent. Not sacrifice this gain by falling back on past practices. Here are some pitfalls to avoid.

Entering data in the company one by one.
Most companies have had to lay off more employees than in past recessions. And now that things are changing, they want to bring back as soon as possible. One of the reasons for desire is loyalty to the person, and that is very commendable. Part of it is that the manager is using an old paradigm that if sales increase by X%, you have to restaff And with the number of people. That paradigm may have been destroyed.
· The tasks we do in an organization can be divided into the value added [] VA (those the customer service) and value added is not [NVA] (consume resources but do not add value). Capture what is being done at this time. How are you able to do everything with a minimum crew? What is not getting made? Evaluate if you ever have to go back.
• If you have to do, be creative about how and who. Who should do it? We usually have highly skilled workers doing a mix of value added and value added does not work. What if you pulled most of the work NVA and grouped them in a less qualified (and preferably temporary) person? And how should I do? Instead of increasing staff, these jobs could be automated NVA? Third?
• Remember that the bargaining agreement if you have one. Or start working on it set the scene for changes. The goal is to get most people back into productive work as needed while giving them some assurance that they are better for the long board term. The mechanisms for redistribution of tasks NVA depend on you. Think outside the box.
• What about employees who could not move because they knew too much or had a special skill set that the organization could not live without it? Now is the time to correct that to do the magic began writing they do. Unless, of course, wants to be held hostage again in the future.

Being too slow to add resources.
· Stay ahead of the curve when adding resources. This allows you to go after the NVA activities as they are identified. You will need the additional bandwidth to the recommendations and use this recovery time to continually improve the organization.
· Focus on servicing its existing customers extremely well. Now is the opportunity to delight – You need more than ever. Make sure the first line customer support team has the resources to do the job. This is particularly true since you are looking to attract new customers to replace those who may have lost. First impressions are key and can be an important differentiator for your business against its competitors.
• Some resources will take a while to get due to the time on the computer or location of the right skill set. Start previous what might otherwise be sure they are there when you need them and they are the best available. (Pioneers here and probably have a lot of resources critics, both human and physical.)
• In what replace lost staff, rental of behavior first, ability second set. If the individual has the right attitude and the experience and the ability of some in the area, the specific nuances of the job can be acquired. It is much harder to change a individual behavior – that you hire is what you get. If you are a first mover to acquire these people, will have a better chance of finding people with such behaviors correct and the right skill set.

Ignoring its suppliers.
• You may have had to add some in a hurry and your loved original went out of business. Now is the time to do due diligence to ensure that they are those in a long distance.
• These suppliers helped to overcome difficult times. As the money comes back, be sure to pay them to the original terms. Probably have won. But if the new reality is really net 60 off the old network 30, start the dialogue now.
· As we look at the NVA activities, you may find a setting with vendors. It may not be your basic skills, but could one of them. It may not be a bad thing to select a few major providers to collaborate and work more with them.

In the absence of reassess their customers.
· Stay close to your key customers. They kept going. Continue to service either through recovery. The general trend is for the new herd customers more often. Resist the temptation. Do all your customers priority clients.
· But take a good look at them. Are customers really your future? Some of them might need replaced, not today but over time. Early identification will allow more flexibility in future agreements.
Work with them as their suppliers, but in reverse. Is there a way you can take some of their perceived NVA activities that suit your skill set? How your company can be integrated in their day to day?
· Now is also the time to understand what is your point of view of the new reality. Your organization probably made concessions to keep the business. You need to understand what concessions are part of its business model forward, and that the return to normal and when. It's hard to do while you are starving, but do not wait too long or you may lose some room for negotiation.

Being blind to the issues infrastructure capacity.
· Since probably stripped of its resources (experienced inventory, stock, etc), think before you put everything back in kind. Take a snapshot of what you are currently using and what did not exercise at all. During this recovery, some things can be difficult to put into operation quickly. Be the first engine to replace it takes time. On the other hand, may have elements that do not need and which may be in demand. At some point during this push can be a good time to get rid of these at a profit if they have been identified and have that as part of his game plan.
• What corners you cut that still has the work done? You may have stopped all preventive maintenance, for example, but you know it's not a sustainable response. Evaluate what was done and not done, and make your VA / NVA analysis. If on the NVA side, find a way to get rid of it or automate it. If it is a VA business, put it in their list of priorities to restart as soon as possible.
• That includes ERP / MRP protocols as well as what equipment to bring back online. If you to live without it, think twice before bringing back the practice. Mulchahy Anne, president of Xerox, said in a recent interview that the company is evaluating new ways that things are being done as a result of the recession and the taking of the ideas and process changes that are part of the business sense culture. Never waste a good idea!
· Take time to assess the overall impact of recession on its infrastructure. Do not be one of those companies who have who stutter by step recovery because of chaos surrounding infrastructure. This goes especially for critical equipment, processes and people. How to recover bandwidth, make sure that are either robust or add some redundancy.

Maintaining a management culture focused on returning to "business as usual."
· Its management team was only through a postgraduate course on how to survive a significant drop, then why not use that knowledge will continue? We did a poll on how managers are responding to this crisis. The overwhelming response was: "I can not wait to get this behind of us to return to work as usual. "So much for the diploma.
• If you followed the advice of most of the changes guru has come up near of its employees during this time and communicate much more than you have historically. Do not throw this aside as things start again. Management by wandering around, management and are visible all the time working Gemba. Make this part of the new management paradigm.
• You may have reduced its workforce management and as front-line workers. Rethinking how restaff your support team. This is an opportunity to make some structural changes that may be considering. In addition, decide what your company culture will look like in the future. Have you started to rely more compared to command and control teams? Make sure to recover only those individuals who reinforce this new way of working.

This has been a challenging time for management at all levels and hard times for everyone in the organization. Now is the opportunity to convert the time, effort and money that the recession cost the company an investment in a more smarter and stronger in the future. What would you like your organization to look and act like three years from now? Today is the day to begin realizing this vision.

About the Author

Ed Biernat is the author of many articles, and owner of Consulting With Impact, a
lean six sigma
consulting firm that specializes in
business process improvement
methods to help businesses run more efficiently.

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