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Assess Your Leadership Qualities By Answering These 7 Questions

leadership

Assess Your Leadership Qualities By Answering These 7 Questions

A leader is supposed to be out in front, pointing the way toward whatever is ahead.

But, as we begin a new decade, too many business leaders are facing backward rather than forward,  says Oleg Konovalov (www.olegkonovalov.com), a global thought leader and consultant who has worked with Fortune 500 companies and is author of the new book Leaderology.

“The future can’t be met with backward-thinking and old leadership methods that are no longer effective,” Konovalov says. “The leader’s duty is to open a door into the future for people and explain how things should be considered and managed in that new reality.”

“Leaders face more responsibilities and much higher expectations in terms of the execution of their roles,” he says. “The leader’s responsibilities are expanding enormously, demanding much stronger competencies and skills than before. Everyday learning and continuous improvement need to be the norm.”

As a result, Konovalov says the modern leader needs to combine meticulous planning with flexibility.

“Combining these attributes is necessary in an ever-changing and hyper-competitive market,” he says. “The wrong decisions and actions can lead to the whole organization losing sight of customer needs as well as quality, harming the long-term sustainability of the organization.

“Making the right decisions means thinking of more than the company. It means considering the values and needs of customers and employees as well.”

He suggests leaders assess where they are in their abilities so they can define areas where they need to improve.

To begin that assessment, Konovalov says leaders should ponder how they would answer the following seven questions. He offers a more detailed 38-question self-assessment on his website:

-What are the most typical mistakes from the past that hold you back from becoming an extraordinary leader?

-How clearly can you define your customers’ needs? Can you envision them as clearly as your personal needs?

-How do you care for your people as a leader?

-A strong culture is not about me, but about what I do for others. What do you and your colleagues do in terms of investing in others on a regular basis?

-What is your leadership style? Are you a leader who takes care of people or a boss taking care of yourself?

-What were the aims and results of the most recent changes implemented in your company, and what were the employees’ reactions to those changes?

-What lessons have you learned in the course of your leadership journey?

By answering these questions, Konovalov says, leaders can begin to gain insight into whether their leadership style is one that is pointed confidently toward the future, or one that’s stuck perilously in the past.

“Bad leaders build barriers for people,” Konovalov says. “Strong leaders build barriers to problems, accidents, and stagnation. We have more than enough mediocre or bad leaders. We need strong leaders for real progress and to make a positive difference in people’s lives.”

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Oleg Konovalov (www.olegkonovalov.com) is a thought leader, author, business educator and consultant with over 25 years of experience operating businesses and consulting Fortune 500 companies internationally. His latest book is Leaderology. His other books are Corporate SuperpowerOrganisational Anatomy and Hidden Russia. Konovalov received his doctoral degree from the Durham University Business School. He is a visiting lecturer at a number of business schools, a Forbes contributor and high in demand speaker at major conferences around the world.

 

supply chain

How to Select the Best Supply Chain for Your Business

All businesses, no matter how small, need a reliable supply chain so they can deliver their products to their customers in the shortest time possible. The delivery system needs to be accurate, prompt and cost-effective.

Standards to consider when selecting a suitable supply chain

If the existing supply chain is missing just one of the above three elements, then you should consider redesigning it. In addition, business owners need to understand that supply chains have three different classifications:

-High inventory turns and low inventory volume – equivalent to Just-In-Time inventory

-Low inventory turns and high inventory volume – applicable when you have a long lead time with suppliers

-High inventory turns and high inventory volume – if your business is in the fresh or frozen food industry, you need sufficient produce to replace any expired or spoiled goods

When creating or adjusting your supply chain, other essential elements should include:

-Location of your business, customers, and suppliers

-Local regulations and tax laws

-Logistics lead times

-Logistical costs and savings

You can also measure your supply chain’s success based on the following:

-Flow of goods

-Costs of the flow of goods

-The time needed for such goods to flow

Ultimately, you will need a delivery system that will satisfy all your customers at the lowest possible cost. To determine which supply chain is most suited to your business, consider the following factors.

The location of your typical customer

-Do you ship globally, regionally or locally?

-Do customers come to you to pick up their orders?

For example, if you have to ship your goods across the globe, it can take up to two months for buyers to receive them. Therefore, you will need to design a supply chain that can handle international freight and customs issues.

However, if your customers pick up their purchases personally, then the delivery element can be the extension of your inventory and management control.

If your business requires fast order-to-delivery lead time, you will need a high inventory but low turns. This will mean that you need to allocate more resources to your inventory, but at least this will keep your customers happy.

If your product is in high demand or is perishable, you also need to keep a high inventory and deliver it quickly before the expiration date.

Accounting for supply chains

To successfully manage your product deliveries, you will need to know:

-What exactly you have in your inventory

-Where your stocks are located

-The costs of procuring your products

-The costs of holding them until they are sold or delivered

If you have hundreds or thousands of products, you will need a warehouse management system. Alternatively, you can hire a third-party logistics provider to take care of your inventory management and sales deliveries.

However, if you are just a small business, these options may prove to be too much of an investment. Despite the lack of huge resources, you still need to know your exact inventory. Fortunately, you can keep track of this information using spreadsheets and accounting software such as QuickBooks. This accounting service provider has several resource articles that can help you decide which software is most suitable for your business.

As your business continues to grow, you will need specific software that includes a component called enterprise resource planning (ERP). This system incorporates all the internal and external data in your electronic records and departments, such as accounting and sales.

Accountants, and specifically cost accountants, use the supply management chain as a tool to improve a company’s purchasing, manufacturing and inventory processes. This is a technique that analyzes the movement of goods; for example, from the raw materials to the finished products.

Locate your suppliers

You will have a long supplier lead time if the products will only arrive after

-Two months of sea travel. Shipping them by air is much quicker, but very expensive and the costs are usually unjustifiable

-Lengthy manufacturing cycles

High inventory volume and low inventory turns are normal for businesses such as Apple, although this tech company is using its market position to reduce its high inventory costs. For example, if you are an Apple supplier, you ship the products to the company, but it won’t issue an invoice upon receipt. You only receive payment once Apple releases the products to its retail stores.

Conclusion

In the end, the supply chain you choose must satisfy all your customers’ requirements so they can receive your products whenever and wherever they want. Nevertheless, the cost to you should also be reasonable. Achieving this goal requires a smart strategy and careful planning. However, the financial side of the supply chain will entail employing the services of an accountant who specializes in cost accounting. They will probably recommend a supply management system to monitor every process in the chain.

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Written by Nishi Patel, founder of Northants Accounting.

 

Entrepreneurs

Metros With the Most Successful Entrepreneurs

Many Americans dream of quitting their job and becoming their own boss. Whether the goal is to live the laptop lifestyle or turn a creative pursuit into a full-time business, entrepreneurship offers flexibility and excitement, but it is not without risks. While the potential upside of starting a successful business is appealing, it often takes years for a new firm to become profitable, and many entrepreneurs do not earn as much as they did in their previous jobs. According to data from the U.S. Census Bureau, the median annual income for full-time entrepreneurs is $50,000, which is the same as the median income for all full-time workers.

At a more granular level, full-time entrepreneurs (defined here as self-employed workers in their own incorporated or unincorporated businesses) tend to report higher incomes than full-time employees at for-profit businesses. However, the typical full-time entrepreneur makes less than both full-time employees of non-profit organizations and full-time government workers. Interestingly, Census data shows that federal employees enjoy the highest median income at $65,000 per year, followed by non-profit employees at just under $53,000.

While nationally the median income for entrepreneurs is the same as the median income for all workers, there are big differences at the state and city level. At the high end, entrepreneurs in Rhode Island and North Dakota have median incomes that are 28.3 and 20.0 percent higher, respectively, than the median income of all workers. On the low end, entrepreneurs in Vermont and Delaware have median incomes that are 18.8 and 16.7 percent lower, respectively, than that of all workers.

To determine the metropolitan areas with the most successful entrepreneurs, researchers at ZenBusiness analyzed data from the U.S Census Bureau. The researchers ranked metros according to the income premium for entrepreneurs, which is defined as the percentage difference between the median income for full-time entrepreneurs and the median income for all full-time workers.

Here are the top 15 large metropolitan areas with the most successful entrepreneurs:

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For more information, a detailed methodology, and complete results for all metros, you can find the original report on ZenBusiness’s website: https://www.zenbusiness.com/blog/cities-with-the-most-successful-entrepreneurs/

small business

Small Businesses: Here’s How They Impact Communities

Every small business owner knows how important it is to have the support of their community. Luckily events such as Small Business Saturdays help bring small businesses and their local shoppers together in order to benefit the community as a whole. This survey put together by OnDeck, a small business loan provider, looks at small business customers to learn a little bit more about how they support small businesses AND also how the small businesses they
support helps the community in return.

why small businesses are important

ondeck second annual small business community impact survey

why small businesses are important

ondeck small business community impact survey

idea

When The Creative Light Bulb Flips On, Here’s How To Make Your Idea Take Off

Smart business ideas can pop into someone’s head just about any time and anywhere: While walking or jogging, when driving, before going to bed, while doing housework, or during a brainstorming session.
The idea is usually triggered when the person notices a problem or need. The exciting moment the idea springs to life may seem like an epiphany, akin to a light bulb flipping on brightly in the brain. But that doesn’t mean it’s always a good, viable business idea, and discerning whether it will work doesn’t happen nearly as easily as the idea originally came.
“Getting a business idea from zero to reality requires numerous steps, lots of important details, and diligence,” says Deni Sciano (www.ScoreGameDayBag.com), the founder of Score! Designs, LLC, a women-owned designer handbag company based in San Antonio, Texas.
Sciano got her business idea to design clear handbags when waiting in a long security line at a professional sports event. Her products are now sold in 100 stores across the U.S.
“When you have that ‘a-ha!’ moment of discovery, your passion for your idea can take over, but that passion doesn’t give you the pragmatic side of business that you’ll need to properly investigate its potential and make it work. Having said that, by taking the right steps, being persistent and figuring it out, your idea might really take off.”
Sciano offers five ways to turn your idea into a business reality:
Do your homework. “The idea person who’s basically new to marketing and selling really needs to self-educate as much as possible,” Sciano says. “Read books on sales and marketing. Learn the importance of trade shows and networking as well as online marketing. Research the market; you need to carry out a full analysis of your idea by investigating the target audience and its demographics.”
Plan to spend money. The dream-big side of a new idea is countered by — and sometimes ended by — the reality-check side of having enough money to invest in the project. “You have to ask yourself early-on, ‘Can I afford this?’ ” Sciano says. “That’s the No. 1 thing that can stop you. There are many money factors to consider — for a lawyer, an accountant, to hire staff, to get trademarks, do the marketing, etc. There’s a lot that goes toward building your brand and your market.”
Find mentors. “It’s crucial to form relationships with entrepreneurs who had an idea, believed in it, and made it happen,” Sciano says. “You need the knowledge and inspiration gained from them and their successful experience.”
Keep the faith. “The grinding day-after-day part of pursuing your idea and turning it into a business reality can be drudgery, overwhelming, and discouraging at times,” Sciano says. “Fear is a huge factor that stops people from following through. It’s like a chain on your ankle. But let your adventurous spirit and your continuing curiosity shine through. Keep the faith in yourself and your product.”
Learn how to juggle. Sciano says that if it’s done properly, dedicating oneself to a product investigation and launch is extremely time-consuming. The person with the idea needs to weigh whether following through on it is worth the personal sacrifices they must make. “You have to go all-out, and the first couple of years you have to give up some of those things you enjoy — spending time with friends, hobbies, etc.,” Sciano says. “Figure out what kind of work-life balance you need.”
“After you come up with a great idea, trying to make it work can seem like hitting a wall over and over again,” Sciano says. “You learn how to go over the wall, and going for it is worth it.”
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Deni Sciano (www.ScoreGameDayBag.com) is the founder of Score! Designs, LLC, a women-owned designer handbag company based in San Antonio, Texas. A former teacher and marketing director, Sciano’s created her company and products with today’s heightened security issues at sports stadiums and arenas chiefly in mind.
iot technology

How Shippers Can Leverage IoT Technology Solutions in Their Supply Chains

At one time, managing supply chain logistics was among the most difficult challenges that existed for a shipping company. Previously, the shippers with the best operational management programs sat at the head of the pack by default. Today, with increased automation and near-instantaneous data availability, controlling logistics has never been easier, and just about everyone is at least competent at handling their supply chains. This is a very positive thing for consumers; however, it also means that for companies to be able to innovate, grow and maintain a competitive edge, just being “good” at supply chains isn’t enough–these days, to achieve long-term success, you have to be great.

Here are five steps shippers can take to leverage IoT technology solutions in their supply chains:

1. Map out your existing process

Knowing what you are starting with is one of the most important steps in the entire process. Map out your existing process with fine, granular detail. If you have access to a Six Sigma expert, bring them in. When you have your current process defined, then, and only then, are you prepared to further enhance and improve your supply chain with IoT solutions.

2. Build a dedicated team to implement new IoT solutions

Ensure you have a chairperson, as well as enough allocated resources with “skin in the game,” to spearhead the implementation process. Nothing will throw sand in the gears faster than a team that has minimal direction and does not have any incentive to push things forward quickly and efficiently. Identify these people, have regular meetings with them and work together on S.M.A.R.T. type goals.

3. Know your competition

Study your peers and competitors to see what they are or are not doing. It’s highly probable that their struggles are also your struggles. However, don’t just follow your biggest competitor blindly, but rather study what they’re doing and develop a competitive edge based on their weaknesses. Map out their processes, see where they have implemented IoT technology, ask the ‘why’ and then take the best parts to incorporate into your own unique strategy.

4. Ask an expert

Consultants are experts for a reason. They’ve done this before and know what works and does not work. Developing an IoT solution is no easy task, so picking your consultant is an important step. Speak to multiple experts to gain multiple, educated opinions on how to proceed. Use the task force you created earlier and choose the best path for your organization that will have the greatest ROI.

5. Study your results and constantly evolve

Once you have mapped out your existing process, built your team, studied your competition, enlisted the help of experts, calculated your ROI and implemented your IoT technology solutions – don’t stop! IoT technology is ever-changing and learning, constantly collecting and analyzing granular data for your use. The more time and data that is dedicated to this process, the sharper your process will become. This access to information will open doors to opportunities for efficiency and possibly new markets in your supply chain.

What all of this translates to is a potential market that is broader than ever before. However, as new tech continues to narrow traditional gaps in efficiency, it also means that companies are now battling one another on that basis – when competing in an environment where customers can compare shipping speed and choose accordingly, getting package there faster is of paramount importance.

Companies need to find ways of protecting current market share while expanding into other areas. In this regard, IoT technology becomes especially valuable. IoT allows businesses to be more adaptable and make decisions on-the-fly, in addition to minimizing costly errors. Data collection also gives unprecedented perspective on customer needs as well as behaviors, allowing companies to innovate based on sound evidence – all of which creates opportunity for increased revenues.

The bottom line: technology is the way forward for just about every aspect of supply chain development. As always, innovation is an ongoing process and in the pursuit of greatness there’s simply no solution for investment and creativity. With all the tools that IoT provides, and these actionable steps, the possibilities truly are endless.

5 Mistakes New College Grads Make as They Enter Entrepreneurship

It’s that time of year again. Thousands of qualified college graduates are getting set to enter the workforce. They were promised that their hard work and diligence will earn them an attractive job and a high chance of success.  With ambition, motivation, and dreams, scores of young men and women will forge their way into the business world. Some of them have lofty goals of entrepreneurship.  Many are under the impression that whatever works for high profile examples of successful leaders in business will also work for them. Public information and theory are often misleading, and so is attempting to imitate another company’s or leader’s blueprint. According to some experts, new college graduates often make five brutal mistakes as they try to navigate their own potential new enterprise.

1) Recent college graduates think they know a lot more than they do upon graduation: Implementation is different to theory and ideas, so you need to be able to bring operational performance and many other skills to the table. Knowledge is one thing, but true execution will provide the experience you really need.

2) Many do not understand how funding works and the capitol needed in the initial phases of a business. Inexperienced people are misled when it comes to startup funding and what is needed to begin and grow a business.  Often young founders don’t think about basic concepts like unit economics, which is selling something for more than what it costs to make. Even some very well funded startups tend to ignore this.

3) Raising funds does not equal success. Many young entrepreneurs are focused on the superficial belief that the more money they raise, the more successful their business is going to be. While it’s true that, everything else being equal, having more money to spend on your business is good, there is a lot more to it than that simple formula. Plenty of businesses fail because they raised too much money and it encouraged them to do things that didn’t make sense. Many other businesses fail because they raised money that they believed would fund all of their dreams of growth, but it wasn’t nearly enough. Other businesses fail because they raise the wrong kind of money, such as debt they can’t repay on time or equity that causes them to lose control of their business.

4) Inexperienced founders often overestimate their own importance and don’t appreciate the importance of the team they build around them. It is not easy to find skilled people who also happen to be a good fit for the culture and mission of your enterprise.  This takes a lot more time, effort, and trial and error than many founders realize if they haven’t done it before.  You need a great team to build a great team. But that the classic chicken and egg problem you have to solve. You have to be careful, and realize you will make mistakes, about who you hire early in the life of your company. Only offer substantial equity and responsibility to those who have proven themselves. Recognize your hiring mistakes and correct them quickly. Teams often don’t rise to the level of their best people. They often sink to the level of their worst people. Keep that in mind as you build your company.  
 

5) Know and own your limitations. Young innovators especially, though it applies even to more experienced entrepreneurs, tend to lack self-awareness of their own weaknesses. These blind spots can be disastrous.  Most highly successful people understand their weaknesses and surround themselves with others who can do what they cannot, who share a similar vision, and with whom they can collaborate. Inexperience can lead to overconfidence. This is an especially dangerous pitfall for early stage startups and new entrepreneurs. 

Elizabeth Holmes and Theranos is a good example of a culmination of all 5 of these mistakes and what inexperience can do to a business idea. She raised $900 million. Her company was worth billions. She was on the cover of magazines and featured on TV shows and one of the best founders in a generation. But it ended in failure and she may go to prison for her behavior.

There are real world, and sometimes life altering, consequences for making these mistakes. Think through your decisions carefully and be aware of the risks you take as you pursue your exciting and hopefully rewarding entrepreneurial journey.

3 Ways To Head Off Employee Turnover – And Produce A Better Workforce

Sometimes a good salary isn’t enough.

Companies that want to attract and keep the best talent are finding that – perhaps more than ever – they need to understand just what it is today’s employees want out of work and then find ways to provide that.

While a great salary and good benefits are important, employees also desire such things as flexible schedules, a way to let their talents shine, and work that gives them a purpose, according to the 2018 Global Talent Trends study by Mercer.

And, with the unemployment rate so low, it’s easier for employees to find work elsewhere if they become discontented. That makes it even more important to keep them happy, since replacing employees can prove expensive.

“The majority of human behavior is emotionally driven, but unfortunately a higher percentage is driven by negative emotions,” says Alex Zlatin, CEO of Maxim Software Systems, a dental-practice-management software company, and author ofResponsible Dental Ownership (www.alexzlatin.com).

“A high turnover of employees suggests a high level of stress, which indicates there are human resources problems that need to be addressed. In some cases, an employee may just be a bad fit. But in other cases, it could be that management in some way isn’t meeting the needs of the employees.”

Anytime an employee leaves, the business will need to find a replacement and then train that replacement. There is reduced productivity during that hiring and training timeframe, and there also could be morale problems if other employees have to take up the slack.

Zlatin says just a few of the ways companies can give employees what they want – and benefit the business at the same time – include:

-Help them understand their purpose. It’s important for employees to be able to grasp the connection between their daily tasks and the goals, vision and purpose of the company, Zlatin says. “This connection is the key to building the employees’ awareness that they are a part of something bigger than themselves, which gives them purpose,” Zlatin says. “This is especially true for the millennial generation. Purpose is essential to their happiness and retention. One of the most important things to millennials in a work setting is to be able to make that connection, allowing them to adopt the company’s goals as their own.”

-Empower them to grow and learn. A good manager should inspire employees to think outside the box. “You want to push them outside their comfort zones so they can find better ways to achieve their goals,” Zlatin says. Employees who don’t feel they are being challenged, who aren’t growing in their abilities, are more likely to become bored and seek employment elsewhere.

-Provide coaching and mentoring. “Coaching and mentoring means guiding people through failures and mistakes,” Zlatin says. “This is the best way to learn and gain experience.” But if you try to mentor people by telling them exactly what they need to do and making sure they do it, he says, you’re not a leader or a mentor. Instead, you are a supervisor who is ensuring that processes are being followed. “There’s no creativity there,” Zlatin says. “Telling people how to solve a problem limits their professional growth and prevents them from realizing their potential.”

“To keep employees happy and engaged, it’s important for businesses to have a clarity of purpose and an ability to communicate expectations,” Zlatin says.

“Without these, employees end up not knowing what they should be doing, how they should be doing it, what goals they need to achieve, and how they fit into the organization. They become frustrated and start looking for another workplace that will give them what they need.”

About Alex Zlatin

Alex Zlatin, the author of the book Responsible Dental Ownership(www.alexzlatin.com), had more than 10 years of management experience before he accepted the position of CEO of a company that makes a dental practice management software (Maxident).  His company helps struggling dental professionals take control of their practices and reach the next level of success with responsible leadership strategies.  He earned a B.Sc. in Technology Management at HIT in Israel and earned his MBA at Edinburgh Business School.