Month: December 2014 Page 3 of 4

I participated in a webinar in which a manager was leading the discussion. My role was mainly as an observer, but I would provide project management guidance when necessary. The manager forwarded the participants an agenda several days in advance, and most of us were clear regarding the expectations.

Prior to the meeting, I received a call from Jack, a team member who would also participate in the webinar. He informed me that the manager (Tom) was not well-liked. Tom took over the department about a year ago, and he tried to make radical changes. He wanted his team to do this, to do that, and so on. It was going to be his way or no way at all.

Mission Impossible

Tom’s problem was that he took over a department with veteran employees. They knew the system better than he. In fact, the team of eight people knew they could “gang-up” on Tom and make his life hard. Of course, Tom could strong-arm the decision-making process, but this approach was bound to backfire.

Jack told me the following: “Tom is trying to scare us into doing stuff. Some of his ideas are good, but we are not going to buy into them. If we do, he might think that he has control over us. Until he calms down and listens to us, we will make it difficult for him.”

The Webinar

The day of the webinar arrived, and Tom proceeded through the agenda. For the most part, everyone was civil. A hearty and fruitful discussion ensued. I was surprised that Tom allowed the team to reach consensus on several key points, and the vibes were good in the meeting.

However, near the end of the meeting, Tom asked for volunteers for an important project that had a looming deadline. Jack tipped me off about this requirement, stating that Tom previously sent an email asking for volunteers, but if no one jumped in, he would make mandatory assignments.

When Tom asked for volunteers, the meeting went silent. He waited about 15 seconds, but no one responded. Finally, Tom suggested that he would follow-up via email.

The Problem

Tom has two problems on his plate:

1. He started off on the wrong foot by taking an autocratic approach. The sweeping changes he wanted to make were fine, but he needed to first ask the veteran team for suggestions. In other words, getting buy-in first was important.

2. Instead of threatening to make mandatory assignments, Tom should approach the team members in a professional manner. He should reinforce the importance of the project, and ask for team member assistance. This is a far more effective approach than giving ultimatums.

Tom has a chance to succeed, but he faces an uphill struggle. He created a deep hole, and it will now take time and patience to get back on track. One recommendation is for Tom to have a one-on-one with each team member to determine what is important to him. In other words, he needs to start anew.

In short, excellent leaders know that change is driven by the people, and not by policies or mandates.

While attending a professional development session in Dallas, I decided to buy a Grande Pike Place at a shop that sold Starbucks coffee. This was not an official Starbucks store, but the signage indicated I could find the popular beverage there.

The shop was about a block from my hotel room, so I made the walk around 6:30 a.m. When I arrived, I noticed the lights out and a small sign stating working hours began at 7:30 a.m. The opening time is unusual because most Starbucks are off-and-running around 5 a.m. in San Antonio, but this shop had its own hours. I suppose this is a supply-and-demand concept that was covered in one of my Economics and Marketing courses while attending undergraduate school at St. Mary’s University. I need to take better notes!

7:30 a.m. Arrives

I went back to my room to review emails. Around 7:25, I walked back to the coffee shop to purchase my hot drink. I even have the Starbucks app on my iPhone, so making purchases is quite easy. However, I know that most of these independent shops do not accept the Starbucks card or app, so I brought 10 bucks with me.

At exactly 7:30 a.m., I was in line and prepared to order my Starbucks coffee. There were two men leaning against the counter, and the employee was making lattes for them. It turns out she was preparing the beverages for other employees, and they walked away without paying.

I approached the counter, and conversation went something like this:

ME: Can I get a Grande Pike Place?

IDA: We’re still closed because the computer is not working.

ME: Right … but I noticed those two men were served, and it is 7:30 a.m.

IDA: Right … but they work here. For me to sell you the coffee, someone has to log me into the register. The code I put in is not allowing access. You’ll have to wait about another 15 minutes. There is another coffee place about two blocks down the street.

ME: I really don’t feel like walking to another location. I guess I will wait until the register is open.

About 10 minutes later, a manager-type person walked up, swiped a card, and entered a code. The register was unlocked, and I paid $2.34 for my Grande Pike Place.

The problem with this scenario is that a customer was denied coffee, but employees were allowed to walk away with free beverages. As a business owner for many years, I would take full accountability for poor training. You cannot allow your employees to handle situations in this way. If the customer is denied coffee, so are the employees. When you play favorites, you lose the trust of your customers.

I’ve shared this incident with a couple colleagues, and one told me that I was overreacting, and that I “should let it go.” The more I think about it, the more it bothers me. I understand that the issue was resolved in 10 minutes, but this has nothing to do with expediency. What concerns me most is the underlying current. Based on this experience, I’m certain this coffee shop has other notable customer service issues that may alienate customers.

Part of me is overreacting, and part of me is right. Go figure!

A recent report by the Association of Certified Fraud Examiners (ACFE) determined that the cost of fraud and abuse was $652 billion. In total, fraud was attributed to 5% of total revenue, and in 42% of the cases, nothing was recovered. If a business is losing 5% of total revenue, imagine the impact on the bottom line. The costs of doing business are constantly increasing, which means you need every single penny to meet your financial obligations.

In its study, the ACFE published the following findings:

• The position of the perpetrator determined the frequency of fraudulent activity.
• Managers were more likely to commit fraud (41.2%).
• Employees were second (39.5%).
• Owners and executives had fewer events of fraud (19.3%)
• While owners and executives had fewer fraud episodes, they took advantage of their opportunities. The study revealed the median loss from these activities was $1,000,000.
• The median loss from managers was $218,000.
• Finally, the theft from employees resulted in a median loss of $78,000.

My Fraud Story

Many years ago, I served as clinic administrator of a practice in Houston. Janet in Accounts Receivable informed me that she was going to take a couple months of vacation time. She had been with the clinic for nearly 30 years, and wanted to spend time with her husband.

A few minutes after this conversation, Ana walked into my office and mentioned she would be willing to assume Janet’s duties. The work required recording the payments from private insurance companies and government-sponsored programs, such as Medicare and Medicaid. Ana mentioned she had worked with Janet in recent weeks and had a clear understanding of the process. I was busy managing the daily activities of our nine surgeons, and I was pleased that Ana was eager to do the work.

What I didn’t know was that Ana had befriended one of the tellers at our bank, essentially setting the stage for fraud. Ana communicated to the teller that the clinic decided to cash a private insurance check in the amount of roughly $1,000 each month, which would be used for petty cash. Private insurance companies paid a fee of approximately $1,000 for colonoscopies at that time, and that was a common procedure for our practice.

With the $1,000 in hand, Ana placed $100 in petty cash and kept the rest. She also deleted the date of service for the procedure. In essence, our audits would not pick up the discrepancy because the transaction disappeared. Ana continued this fraud for a couple of months.  She eventually forgot to delete one date of service, and our external accountant, who reviewed our records quarterly, identified the problem. We confronted Ana, and she resigned. To avoid negative publicity, the doctors decided to forego legal action.

Lessons Learned

I learned that checks-and-balances are essential when managing money. While Ana could enter payments into our computer system, another employee should have made the bank deposits. We should also have had a manager approve the deletion of a date of service, or any other transactions pertaining to the customer. I understand more secure practices are commonplace today, but that wasn’t the case back in the early 1990s.

The ACFE provided other tips to protect your organization: 

• Conduct a risk assessment
• Ensure you have internal controls in place
• Hire external auditors
• Make sure to hire right – conduct background checks

You must remove the opportunities for fraud to occur. Everyone must fall under the same rules, from the company owner to the courier. You must implement a training program to educate everyone regarding expectations. Of course, the key to a successful anti-fraud program is auditing.

As Ronald Reagan said to Mikhail Gorbachev during the signing of the INF Treaty: Trust, but verify.

A week or so ago, I bought fresh shrimp from Costco Wholesale here in San Antonio.

We like having it at home because it’s easy to serve, and it holds everyone over until dinner is ready. Of course, I often make my guacamole recipe, which complements the rest of the menu.

Too Fishy

After trying one of the shrimp, I noticed that it tasted too fishy. Eating one might be fine, but the odor was strong. I decided to put it in the garage refrigerator, so that I could return it to Costco.

The problem, though, was my schedule. My daughter’s graduation had me on the road for a few days, and I’d been busy with work-related items. When I did have time, I forgot the shrimp. Go figure!

This past Sunday, I made it a point to return the not-so-fresh shrimp. I checked the website and learned that the nearest Costco closed at 6 p.m. on Sunday. Hurriedly, I left the house and made it to the wholesaler by 5:40 p.m. The customer service agent said, “So you didn’t like the shrimp.” I let him know that it didn’t taste right, and apologized for not having the receipt. He looked up my purchases in the system, and asked if I wanted store credit or cash. Given that I was going to shop for a few items, store credit worked just fine.

Leaving my Big, Fat Wallet Behind

I’m one who doesn’t like carrying my wallet in the back pocket. In fact, I don’t like to carry coins in any of my pant pockets. The only item in my pockets is my ChapStick. Another important point here is that my wallet will not fit in my pockets because it has way too much stuff in it. I have credit cards, pictures, business cards, and some cash. I noticed recently that I’m carrying Thailand currency in there was well. That’s crazy!

After purchasing Diet Dr. Pepper, peanuts, bananas, and a few other items, I rolled the shopping cart to my car. My wallet was laying in the seat part of the cart. I transferred the groceries from the cart and into my car. However, I accidentally left my wallet behind.

Emily from Costco Called

Upon arriving at the house, which is about 15 minutes from the store, the caller ID showed that someone from Costco was calling. “Mr. Flores, this is Emily from Costco, and we have your wallet. The front door is closed now, but if you make it before 7, we’ll still be here.”

I ran back to my car, and rushed over to Costco. The wallet was stored in a safe, and one of the managers gave it to me. He said, “When Chris was gathering the shopping carts, he found your wallet. I think he’s still outside. “

I went outside looking for Chris (picture provided), and thanked him for finding my wallet. He said, “Yeah … I did find your big, fat wallet! Glad you were able to get it back.” Me too!

The fact that Chris was professional enough to return the wallet says a ton about him. While I was carrying only about $50 in cash, my driver’s license, credit cards, and other valuable items were in there. I will make sure to write a positive note to Costco management praising Chris for his integrity.

While attending a professional development session in Dallas, I decided to buy a Grande Pike Place at a shop that sold Starbucks coffee. This was not an official Starbucks store, but the signage indicated I could find the popular beverage there.

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I attended an internal company meeting as a subject matter expert and the Director of Operations asked me to provide feedback regarding a presentation given by a leader of the organization. He wanted to know how I could help his department align work to meet the company’s new initiatives.

Read More

Ready! Aim! Fire! Fire! Fire!

Like nearly everyone else, I’ve heard that persistence is the key to success. You must develop a good plan, start working on it, and stick with it. You’ve heard that overcoming obstacles takes a committed approach. You must keep working the plan even when times get difficult.

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Image Courtesy: widewallpapers.info

Ready! Aim! Fire! Fire! Fire!

Like nearly everyone else, I’ve heard that persistence is the key to success. You must develop a good plan, start working on it, and stick with it. You’ve heard that overcoming obstacles takes a committed approach. You must keep working the plan even when times get difficult.

While watching a YouTube of Steve Jobs and Bill Gates, someone asked Jobs the keys to success. He talked about being passionate about the work you’re doing. You must have a clear vision, and you must persevere knowing that success is far from easy.

As Jobs continued, he said, “You know … you’ve gotta be a little crazy.” In the context of the conversation, he meant that making it big requires that one ignore all the rationale reasons why something will not work. The fact is that the reasons for falling short are apparent. You know why something cannot be done.

It’s Too Difficult

Launching a new product or service into the marketplace is tough. Before the iPhone, there was no iPhone. However, the technology was evolving, and the consumers were willing to take a chance on a device that gave them more control while on the run. Steve Jobs mentioned that the iPad was scheduled to be first on the market, but he soon realized that the iPhone has more immediate potential … and he was right.

People Will Talk Bad About Me

Being the topic of conversation is actually good. “Did you see what Jon is doing now?” “You know Marybeth has that crazy business idea!” “Ryan is flying to California to meet with an investor. He’s never home!”

You will find that many people speak negatively about those who are making waves. It’s the easy thing to do, and the undercurrent is usually envy. Notice the things that are said about those who are doing nothing: “Harry is having a tough time!” “Ginger has three kids, and it’s tough for her to find a job. Poor soul!” “Michael just lost his job. That’s not right!”

Think Crazy

Thinking crazy means that you look at the upside. While you might fail along the way, the goal is to keep trending up. The other point here is to stay in the corridor of opportunity. It’s important to keep meeting people who are doing innovative stuff. By staying engaged, you will soon have your chance.

When the chance arrives, you must be prepared. One saying goes, “When we are not prepared, the opportunity will make us look like a fool.” Therefore, you should develop the skills and knowledge base necessary to do well in your profession. While perfection is not required, competency is necessary.

The YouTube clip in which Steve Jobs discussed the “crazy” point was just a couple of minutes long, but message is enormous. If you are “normal,” you can expect “normal” results, which means that you are in the middle of the pack. However, when you are ready to create a tidal wave, a tsunami, it’s time to be crazy!

The online learners who do well are usually those who have a clear idea of why they are pursuing their education. In other words, the degree they will earn will benefit their career. Some of my students tell me they are returning only because they are tired of being passed over for promotions, and it’s time they have that piece of paper called a diploma. Apparently, this accomplishment alone will open the promotional opportunities. Students taking that approach are more likely to fail in the online learning world. Instead, they must have a bigger picture in mind, one that includes a long-term plan.

Select the Right Degree Program

One huge advantage of virtual learning is that you can find the right program for you. If you desire to be a Chief Technology Officer, you should pursue an undergraduate degree with a technology angle, such as B.S. in Information Systems. Given that you want to someday qualify for a “C” level position, you must earn a higher level of education, such as a Master’s in Computer Information Technology, or even an MBA. You can go further and complete a Doctorate in Information Systems. Once you know the end goal, you can start working today on what it takes to make that dream a reality.

Align Your Experience to Your Education

We’ve all heard people complain about how a lack of experience is keeping them from moving up the corporate ladder. The work you want will not always come to you. You must take the initiative and volunteer for projects and other work that is aligned with your career goals.

There is so much work to be done in today’s companies, and no one is asking for it. If you go to your boss tomorrow and let her know that you are willing to take on more responsibilities, she is likely to look at you in shock. If you want the experience, you can earn it quickly because work is everywhere. The advantage of seeking more work is that you will be placed on projects in which you will meet influential people from other departments. These are the same individuals who will soon look for hard working and committed employees to fill high-ranking positions, such as the CTO.

An Online Degree is Only Part of the Equation

While earning a college degree will result in increased opportunities for you, you must also consider professional certifications. If the project management field interests you, go to PMI.org and read-up on the Project Management Professional (PMP) certification. If the HR field is your cup of tea, visit SHRM.org to learn more about the Senior Professional in Human Resources (SPHR) credential. These certifications require extensive work experience, and the candidate must also pass a rigorous exam. In short, the combination of a college degree with a professional designation places you on a path to long-term success.

I attended an internal company meeting as a subject matter expert and the Director of Operations asked me to provide feedback regarding a presentation given by a leader of the organization. He wanted to know how I could help his department align work to meet the company’s new initiatives.

The Presentation

The presentation took about 45 minutes, and it covered many details. As I listened to the Marketing Director cover the key points, I noticed an underlying theme. In essence, they were looking to expand service to other parts of the United States because sales were lagging in the local market.

Expanding the map is a strategy used by many companies, but it should be done as a planned action, and not necessarily as a knee-jerk reaction to other underlying problems. From my initial observation, it appeared that customers were leaving because the competition was providing a better product at a competitive price.

The President

Given the seriousness of the matter, the president of this electronics company was in attendance. He listened intently, and finally rose to speak when the presentation was complete.

He asked the following questions:

• “What exactly is our problem?”
• “Did we seek feedback from our customers to avoid this situation?”
• “Why didn’t we anticipate this issue before it worsened?”

As the president spoke, many of the attendees had a tough time making eye contact with him. Instead, they pretended to jot down notes as they scribbled in their brand new notepads.

The president spoke for about 5 minutes before the self-appointed talker took the stage.

The Talker [Dale – Manager]

“Sir, if you don’t mind, I would like to share some ideas regarding your questions.”

The president acknowledged the manager [talker], and the monologue ensued.

I took down a few notes until the ink nearly ran out of my pen:

• “When I worked at Steele Electronics, we had a similar problem. The customers were leaving left-and-right. I did the best I could to keep them, but the sales guys pissed them off too much. I was fighting an uphill battle. There was little I could do, but I kept trying.”

• “The customer is important, and it appears to me that we have too much friction in this company. The Sales Department is blaming Manufacturing, and Manufacturing is blaming the leadership team.”

• “I am here to get things done, and I don’t care who gets mad about it. If you don’t like how I run my department, you need to post somewhere else.”

The Point

Dale (“Talker” and “Manager”) made some valid points over the next 15 minutes. However, he was hired only a few months before, and had yet to gain the respect of other key stakeholders. In fact, he dominated so many of the meetings that people began finding excuses to miss his meetings (other meetings, sick child, sore back, Hurricane Sandy, and so on).

One other issue here is up-staging the president. While the president had poor leadership skills, it was weird observing Dale speak in the forefront, while the leader of the company was in the background, both physically and metaphorically.

My comments to the Director of Operations were specific to how they can leverage their strengths. However, the “Talking Manager” shed light on an even bigger problem, and one that went beyond the scope of my assignment.