No subject seems to pervade our lives as much as finance. Whether it is wresting with the family budget or seeing if your company qualifies for a bank loan, finance looms larger than any other technical subject on a daily basis. Managers are expected to scale down medical supply inventories or set up budgets for departments or projects, yet it has been my experience working as a business coach with in the healthcare industry that most management is sorely lacking in their basic understanding of finance. Why even some C – level employees depend too heavily on the CFO to tell them WHAT to do in regards to smart financial decision making.

All organizations preach to their managers to think like owners and consider all sorts of ideas and options before making a decision. We drill home the virtues of thinking costs savings and value added to our managers, yet how many businesses or healthcare organizations, large or small, train their management in the specifics of business finance? I would suggest few to none. But what business does not need ample cash flow and sustained profitability from every department in order to be successful?

If managers are expected to take ownership and share the responsibilities of running the business, they must be held to the same standards as owners or executive level management when it comes to financial understanding and accountability.

The key is to start training people immediately. We spend so much time training or hiring for technical expertise but very little to the financial understanding that is so basic for the achievement of corporate financial goals. Before promoting from within, ensure candidates have met certain basic criteria for leading people and understanding the financial risks of all aspects of their leadership. Before hiring from the outside, consider interview questions that specifically elicit a person’s financial comprehension.

So many executives simply hand over periodic financial reports to managers and assume they know what the heck they are looking at. Most reports end up in the bottom drawer somewhere. Many managers don’t take company financials seriously until they are required to – by that time it may be too late.

Managers today should know how to effectively utilize the basic tools such as reading, understanding and utilizing a balance sheet, statement of cash flows, and a profit and loss statement when making decisions. Teach managers at all levels how to create a functional budget so there are accurate financial metrics by which to measure a manager’s performance. Every manager’s performance should be tied directly to company financial goals. If not, don’t give them the title of manager. The need to make quick financial decisions is vital at every level to succeed in business today.

How would you rate your management’s actual understanding and accurate use of financial information?

Now is the time to take action to ensure your managers have every tool available to them to make proper decisions and take appropriate actions as leaders- especially those critical financial tools.

To your continued success,

Coach Nancy

The employee management mantra of FedEx rings true even after almost 4 decades – when managing a business, follow the PSP philosophy. People, Service, Profit. As a member of senior management for FedEx, that philosophy was in our blood; there was never a discussion, memo or action taken without that empowering message. To this day, I apply that philosophy in my management consultant / business coaching practice.

Really great companies, even in bad times, place people and values first. The link between people and the bottom line is becoming more apparent. Organizations that succeed over time are those that have a strong values-driven culture. They are people-centered organizations who balance values and business.

Our People First                                                            

I am often asked by clients, “How can I motivate employees? Why don’t they just get as excited about our business as I do?”  The answer is really simple – put their wellbeing before that of your balance sheet and the results falls in line more easily and effectively.

The quality of the interaction with and among employees drives the quality of the products and services. A focus on treating employees with warmth, dignity and respect pays off in how customers are treated and consequently in how the business performs.

Many organizations forget the connection between customers, employees, and financial results. If you want to have great business results, you must have customers who love your products and services—customers who believe that they’re getting excellent treatment from the company. In order to do that, you have to have employees who are motivated, committed, and using their talents on behalf of the organization.

As Fred Smith, CEO of FedEx has always said, “if we treat our people with the respect due, they in turn will carry that attitude to our customers through service and the long term results will always be improved profitable for all stakeholders.”

Want to build employee morale? Start by walking the talk and treaing your people as though their ideas and hard work matter.

To your enduring succes,

Coach Nancy

Does it ever seem like there is more “scheme” work than teamwork in your healthcare organization? Are your folks working in silos? I receive so many calls asking for help to improve teamwork in organizations. There seems to be a constant theme of tell tale signs when teamwork isn’t working hospitals and medical offices. Want to fix the problems…

Before being hired by the CEO of a  medium sized health care facility last year, I asked him to tell me why he thought his employees weren’t working as a team. His first response was he constantly hears the bickering, the blaming, and the finger pointing from his nurses, physicians and even in the administrative departments. The poor team behavior was pervasive at all levels, even  his executive staff. He didn’t have the time nor want to handle all the nonsense.

What impact was this having  in the organization? On the financial side – profits were down, the people side- performance was mediocre,  while most importantly, on the customer service side – negative patient surveys were increasing. No wonder profits were down!

Management should consider these  critical MUST DO’s  for teamwork performance  to improve.

• The entire staff must know, believe, and live the company’s clearly defined vision/mission,  while demonstrating the behaviors necessary to uphold the values which drive a successful company. Where are we going? Why are we going there? How will we get there?  How will we know when we get there?

• Establish TEAM goals – not just individual and department goals. Link employee recognition, bonuses and promotions to the achievement of  team goals.

• Communicate-communicate- communicate. Don’t just inform people. Rather, engage  them in the communications to elicit better ideas so they want to have ownership in improving results.

• Favoritism, whether perceived or real, can not be tolerated at any level of management. Avoid taking sides by ensuring employees know you find value in everyone. Otherwise, why are they still working for you?  Hint: this is demonstrated by your behavior,  not just proclamation.

• Good leaders know how to ask questions instead of always giving solutions.These is particularly important when an employee blames someone else for their own lack of performance.

• Trust employees to do what is expected while mentoring them how to resolve issues amongst themselves. Don’t take their monkey and whatever you do- steer clear of micro managing.

Notice all of these critical aspects start with management – not employees. All the employee teamwork “training” in the world will not overcome poor leadership skills or management practices.

Need to improve teamwork? Determine what part you own in that and then involve your team in fixing it.

Share ways you think I could help people improve teamwork? What has worked for you?

Coach Nancy

Think back to the days when you first started working for someone and try to remember what it was that made you so excited about working for that person in that business. Many might say, I just needed a summer job. Others would say I loved working there because….. you fill in the blank.

If you loved working for that special boss, chances are it was not necessarily because of the massive amount of money you made. Heck, you were in high school with few marketable job skills! Most logically you liked working there because the boss made you feel important or valuable in someway.

What is it that good leaders do to make  employees feel important and valued? How do they get their employees as excited about their business as they are? That is the $64,000 question every executive, business owner, manager, department head and supervisor should ask on a regular basis. After all, it is not simply a product or service that brings people in to do business with you. How many of your competitors have the same product and pledge they too provide outstanding customer service? What will make your business different are the people who work with and for you IN the business.

The primary responsibility of all executives and management at any level is to train, motivate, engage, and mentor their people to be different than the competitor’s employees down the street. It is to help them be as excited about the positive results of your business as you are.

That is easier said than done, in many cases,  because the person responsible for motivating and mentoring hasn’t been properly trained to do such a critical aspect of their job. How many companies take their best widget maker and make them a manager of other widget makers and see results fail? Notice I did not say see the manager fail. That is because companies never take the time to train their people how to be motivating leaders of people and organized managers of processes. Many times there are no processes for the executive or manager to follow so they make it up and hope for the best. Well, hope is not a strategy.

Engaging employees to want to do what a leader needs done is a leadership skill that people must develop to be successful. Most experts agree leadership skills are learned and developed. So what are some of those leadership skills executives and managers can develop to get their people as excited about their business as they are?

1.    Ask employees for their opinions on how things could be done more effectively.

Then follow up and acknowledge their successes as their suggestions are implemented.

2.    Give employees the credit. Period  -  end of story.
Employees make the difference in a successful business as they are the one providing the extraordinary service everyone talks about.

3.   Present clear expectations then trust employees to do the right thing.
Micro management is the number one de – motivating and devaluing behavior a manager, at any level, can do to a person in any walk of life.

4.    Allow everyone to make mistakes.
We learn more from our mistakes as long as we don’t repeat them often.
Give employees the opportunity to try new things a new way. Successful leaders are not surprised at how innovation promotes engagement and enthusiasm. They encourage innovation.

5.    Train and retrain ALL employees from day one.
People will do a much better job and be much more engaged when they thoroughly understand what is to be done and how. The training should include their job functions as well as conflict resolutions and decision making.
Enlist outside expertise like a Certified Business Coach to help with  communication and leadership skills as well.

6.    WALK THE WALK AND TALK THE TALK.
Be the example all employees would WANT to emulate. Positive leadership drives employee enthusiasm. If managers want people more engaged and excited about the business, give them good reason to be.

All successful business managers must keep in mind that employees are a company’s greatest assets. Their collective ideas, feedback and enthusiasm for what they do can help business grow and succeed. People require the guidance of skilled managers and leaders who seek their ideas, ask for feedback and generate enthusiasm in order to have a sense of purpose and energy about what they do.

What will you do differently to increase your profitability by getting your employees as enthused about your business as you are?

How much more productive and efficient might your business be if everyone loved playing on the team?

Can you afford NOT to get everyone on board with consistent enthusiastic involvement?

Need someone to help you come up with ways or to help you get gain back the enthusiasm for your work and company as  the day you first got hired?

Call your Profitable Business Coach, Nancy,  to get back on track and get your folks on track at the same time toward measured success.

To your profitable success,

Coach Nancy

The Profitable Business Coach

Welcome to Coach Nancy’s blog.  If you’ve ever wondered what your boss is thinking, if you’ve ever felt your employees just don’t listen, if you want to become the best leader and managers you can be…

This is the leadership blog for you.