Posts tagged "Feedback"

Advice Communication

Are you listening?

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“We were given two ears but only one mouth, because listening is twice as hard as talking.” Anonymous

The art of listening is a dying art in our world today. Conversations are constantly and rudely interrupted, or the audience distracted, either due to information overload in their minds, or one of the many gadgets on them, which keep beeping or ringing. Somehow no one seems to be listening anymore, yet, everyone seems to be talking a lot more. The fact of the matter is, listening is not the easiest of exercises. It requires large amounts of patience, a willingness to learn from the other person and most importantly, to have respect for the other person’s point of view. However, in the fast paced world we live in today, everyone seems to want to get their two bits in, and has frankly stopped caring about what the other person is saying or feeling. Conversations structured like this are the worst sort of one-way monologues one is part of. Developing skills to be a better listener takes years to master, listed below are some steps to assess one’s current level, and then work on them further.

1. Active Listening: Have you ever spoken to someone and the other person appeared to be distracted or not really there? This creates a level of frustration in the speaker, and eventually they lose interest in sharing their opinion because they are not being heard. When an individual is listening actively they are constantly either reaffirming the thoughts of the speaker with nods or the occasional “uh-huh”, when unclear they are paraphrasing what is being said and getting clarification. Taking an active interest in what is being said, helps the speaker to communicate their thoughts more actively. How active a listener are you?

2. Filters: All of us have interests and hobbies that we like to talk about and get other opinions on. We also know which subjects are not of interest to us, and chances are we will tune out when someone starts speaking about them. When put into the context of listening, this is extremely selfish behaviour, and we end up only talking and listening to people who interest us. In the real world this is difficult as we do have to listen to people who talk about their interests. We have to closely monitor these filters and do our best to eradicate as many of them as possible. Remain committed to keeping an open mind and avoid making judgments based on personal filters. Are you filtering too many conversations?

3. Clues: As mentioned in the last post, non verbal communication constitutes a large part of overall conversation. We have to train ourselves, not only to listen to the words the speaker is using, but also take note of the tone of voice and body language. We have to know when to empathize and when to give constructive feedback. Chances are, if we have not really been listening to the conversation as a whole, we would have missed these cues, which result in miscommunication. There will be times when  speakers get frustrated that the individual is not listening to what they are saying, and the listener is clueless about why the person is so angry (Happens a lot between men and women). Are you paying attention to all the clues?

I have a mentor who does a great job at listening. I can sit in front of him for hours, and somehow thoughts come easier and communication is a lot more fluid. Even though there is minimal input on his part I ‘know’ he is listening. Imagine if you could have such conversations with your colleagues, investors and customers. As an entrepreneur, we have to keep our ears peeled all the time to ensure that we are staying on top of the game. If you are listening, the probability of success is a lot higher.

Advice Communication

How Enthusiastic are you?

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“Nothing great was ever achieved without enthusiasm.” Ralph Waldo Emerson

We have all had that one professor or lecturer in school or college, who put everyone to sleep. His/her monotonous delivery, made it impossible to pay attention to the material being taught. There are also many individuals who have a strained manner of speaking. They have either lost interest in life, or have sunk into a routine which impacts their passion for life negatively. When we come into contact with such individuals, they tend to drain our energy too.  Were an entrepreneur to ever get stuck in such a rut, the impact for his/her business could be disastrous. I mention passion repeatedly in most of my series, as being critical for success in any aspect for life. We have to avoid getting bogged down when difficult situations arise, to keep our chin up is essential. Keeping a positive outlook is vital to keep enthusiasm levels high. Some factors by which we can measure levels of enthusiasm in a conversation are:

1. Body Language: If you pay attention to great communicators such as Steve Jobs,  notice their gestures and overall body language when they are communicating. It is a known fact, that using gestures when speaking helps the brain connect thoughts faster. Our overall body posture is an integral part of the total message we want to deliver. For example, if one were to stand with drooping shoulders and speak in a non expressive manner when pitching to a VC,  we will send a  wrong subliminal message. Pay attention to your body language when speaking, it is a major component of your overall communication delivery.

2. Tonality: I did a NLP (Neuro Linguisitic Programming) course a couple of years ago where a large chunk was dedicated to the importance of tonality. A variety of tones can be used to communicate the same message, in many different ways. If you have ever heard or watched Anthony Robbins, notice how he uses tonality to communicate with the audience at different levels. Sometimes, his pitch is fast and highly charged to get the audience fired up to his level,  other times, he drops the level of his voice to communicate at a different level when he wants to appeal to your subconscious. Pay attention to your tone when you next communicate with someone. Are you mixing it up enough?

3. Words: Extraordinary, Amazing, Revolutionary these are just some of the words that Steve Jobs uses in his keynote addresses when he introduces new products. With the correct choice of words, one is able to flavor communication in a manner that helps the audience relate to what you are saying. Imagine John F. Kennedy saying “Do good things for your country,” instead of “Ask not what your
country can do for you, but what you can do for your country!” The choice of words and how they are put together in a sentence, impact greatly on the intensity and meaning of what you are saying.

When I was with toastmasters we were taught the 55% 38% 7% rule. The rule simply says that 55% of communication is through body language, 38% through our tone and 7% through the words we use. Unfortunately we pay too much attention to the 7% and forget about the importance of the 93%. To become a great communicator, we have ensure that we pay attention to the entire 100% and deliver it with enthusiasm and passion.

Advice Communication

What did you say?

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mad“Take advantage of every opportunity to practice your communication skills so that when important occasions arise, you will have the gift, the style, the sharpness, the clarity, and the emotions to affect other people.” Jim Rohn

Ever been in a conversation where you have no idea what the other person is saying? I am sure many of us have been part of such conversations. These are the conversation where the speaker goes on and on about a particular topic, without any purpose or direction whatsoever, or when the speaker loses the audience on account of the banal tonality and language. In business, when such a person addresses a customer, investor or even his/her own team, chances are he creates a negative impression about his/her capabilities. Such an individual will find it difficult to be taken seriously, or be in a position of leadership. Unfortunately, not too many individuals focus on improving the level of clarity in their communication abilities. Listed below are three areas I believe a conscious effort should be made to monitor.

1. Thought Organization: I had a business partner who was very knowledgeable and confident. Yet, whenever he would start talking the entire group would just tune out. He would essentially start rambling, and regularly drifted away from the topic being discussed. This became a huge distraction for the team and it was also incredibly frustrating. During evaluations the point was brought up, and he made a conscious effort to pay greater attention to organizing his thoughts. It is important that one has a clear purpose when they share an opinion. It doesn’t need to be perfect, however it should highlight ones point of view clearly and concisely.

2. Language: Fancy terms and words should be used sparingly in one’s conversation. These are often used to display the breadth of ones vocabulary, and often instead of impressing the audience it confuses them. When using technical or industry specific terms, make sure that they are presented to an audience which understands them. A conscious effort must be made not only to keep the language simple, but to also remember to keep your sentences short. This makes the overall delivery of your communication clearer as well as much easier to understand.

3. Diction: The tone of your voice when communicating is very important. An individual could be speaking about something very interesting, however if it is delivered in too high or too low a pitch which is too high or too low it will lose its impact and the audience. Sometimes we get very excited or habitually start speaking faster and lose the clarity in our delivery. These instances need to be identified and worked upon to improve our overall communication abilities. As practice evaluate yourself on three factors, volume, pitch variation and pace.

Clarity in communication is critical. Without it, getting or holding the attention of an audience is very difficult. A concentrated effort must be made to make sure that when communicating, our thoughts are thought out and delivered in the same manner. This will not only help get your message across much faster it could be the difference between closing and losing a customer.

Advice Communication

How Confident are you?

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“It took me a long time not to judge myself through someone else’s eyes.” Sally Field

Being confident about oneself is an integral part of being a good communicator. Without this characteristic,  knowledge will not help you to communicate in an effective manner. We see this in every day life, ranging from professors, colleagues, friends and family members. Many of them have vast knowledge bases, yet, when it comes to sharing an opinion or taking a stand, they back down. Confidence is however, something that we can acquire. It takes a lot of hard work and persistence, on the flip side, there are great returns. If you find yourself lacking in the confidence department, the following couple of steps which helped me, may be of assistance:

1. Weakness Identification: The first step requires us to accept the fact that there is a self confidence problem that needs to be overcome. Many individuals refuse to acknowledge this, unfortunately  this denial hinders progress . It is important to identify the scenario and related feelings, which make us uncomfortable. This may be a cocktail party, a networking session or a presentation. It is important to identify the situation and one’s reactions. Once equipped with a comprehensive listing of areas we need to work on, we can move to the next step.

2. Visualization: Before beginning your journey, be clear about where you want to go. Do you want to give flawless presentations in front of thousands of people, be the center of attention at parties,  engage in highly intellectual discourses, or be comfortable in a group conversations? Whatever your end goal is, look for individuals who excel in that segment and visualize yourself being as comfortable as they are in that particular situation. This step provides the brain with an end goal,  and makes it easier to get there.

3. Goals: Building self confidence takes time, so enjoy the journey. I strongly advocate setting mini goals instead of larger ones. For example, the major goal could be to give a presentation to 20 people at the next quarterly staff meeting. Mini goals could include, practice presenting in front of the mirror for 15 minutes daily, give presentations to friends and family, give a presentation to a few colleagues, all of which will finally help you reach the end goal of giving the staff meeting presentation. It is important to take notice of the progress made along the way.

Tips:

Knowledge Base: As mentioned in the last post the larger and broader your knowledge base is, the more confident you become. I have met many confident people who lack a credible knowledge base, unfortunately this results more often than not, in meaningless and rambling conversational monologues, putting you in the find the next exit opportunity spot.

Self Doubt: Many a time we over analyze things. I know this is something  I used to do a lot, and it severely hindered by ability to communicate effectively. We have to take possible negative outcomes out of the picture, and focus on the positive. This impacts positively on your confidence level, and the ability to communicate clearly.

Over Confidence: Unfortunately over confidence results in an individual seeking to overshadow all conversations they enter into. This results in a monologue rather than a dialogue. There is a fine balance between under confidence, confidence and over confidence.

During this journey a feeling of liberation and empowerment comes into play when words begin to come easier, and more importantly, sharing opinions or taking a stand is no longer scary. Conversations become easier, and slowly, speaking becomes an enjoyable exercise.

Advice Communication

How Knowledgable are you?

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“To be master of any branch of knowledge, you must master those which lie next to it; and thus to know anything you must know all.” Oliver Wendell Holmes

Ever been stuck in a conversation where the person speaking on a subject knows absolutely nothing about it, yet goes on and on like an authority? Or, when everyone is discussing a topic you are absolutely clueless about. Images of Joey from the sitcom “Friends” comes to mind. To solve this problem Joey went out and bought a volume of an encyclopedia set! It worked to a point, however, it limited him to a single alphabet of subjects which hindered his ability to add value to most conversations. This is a common dilemma faced by many people today. Thirst for diversity of knowledge for the average individual has shrunk dramatically. We remain limited to a select few areas of personal interest, and put very little effort in pursuing knowledge out of that realm. To be honest, I have been guilty of it too. For a while my world drifted around business, entrepreneurship and commerce.

I got absorbed into acquiring as much knowledge as I could in these fields, and it impacted my ability to hold meaningful conversations about anything other than that. When I realized this inadequacy, I made a conscious effort to enlarge the scope of my interests. With the proliferation of the internet, all the information  we could ever need is now readily available to us. We have to use this great resource along with other traditional mediums to continue to expand our horizons. Some things I have added are:

1. News: Prior to re-adjusting my scope for knowledge, news to me meant the latest financial updates from around the world. There was little interest in other topics such as politics, international events and other broader news. This has now changed, and I have become a news buff, with news feeds coming in from different sources throughout the course of the day, on a wide array of topics. Some sites I get live feeds from throughout the day are Google News, Digg, Reuters, Huffington Post, BBC. These are some feeds  I have set up and upon which I now rely to get updated on world happenings on a daily basis.

2. Books: I have become an avid reader now, averaging about a book every 3-4 days. Developing this habit has been pivotal in both the development of my thought processes in business as well as the broadening of my overall scope. Reading provides the ability to look at things more analytically and at the same time, allows more flexibility in thought processes.  Regular and diverse reading helps in being better informed on a myriad of subjects which in turn results in being able to speak on a diverse range of topics confidently. Notice that individuals who are able to carry conversations well are those who are well informed, and know a thing or two about what they are talking.

3. Experience: However, although we read and learn from books and studying,  practical knowledge is often acquired through life experiences. An important distinction to be made here is that experience in isolation is just a series of events that have taken place in the past. Knowledge is what we deduce from those experiences, making them learning experiences. Many individuals go through life having very little to say about their journey. Others have written volumes about it. The difference is our ability to  distill what we learn from these meaningful events.

When it comes to being a good communicator, knowledge is a defining aspect. Without it we can go on talking without actually saying very much. When an individual is knowledgeable, it comes across even when you talk to them, even if it is the most trivial of subjects. Knowledge and the confidence derived thereof  gives them the ability to connect the dots faster, and bring meaning and purpose to what they say. I strongly encourage everyone to make a conscious effort to keep learning and acquiring knowledge at all stages of life. This is an ongoing process which will not only improve the quality of your conversations, it will have a lifelong impact on the quality of your life.

Advice Communication

Awkward Silences

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“To speak and to speak well are two things.  A fool may talk, but a wise man speaks.” Ben Jonson

We have all experienced awkward pauses at some time or other, when conversation runs dry between people. Some of us may have experienced them more than others. Personally, I enjoy a one on one conversation a lot more than those in larger groups. However, as I have progressed on my journey as an entrepreneur, I find that speaking effectively to one individual, a small group or a large auditorium full of people is a most critical skill, one which everyone should work hard to develop. If one were to do research on some successful people in the world, we would discover that most of them have the ability to speak and communicate exceedingly well. This skill gives them the capability to inspire, inform, convince, even entertain their audiences in most situations.

As entrepreneurs, we have to be proactive when interacting with people. A common scenario is a networking session where you do not know anyone in the room. If we retreat to a corner in the room and not interact with the individuals at the mixer, we would have wasted several opportunities to find prospective clients, investors, mentors, even friends. Other situations where the inability to converse and structure our thoughts can negatively impact the impression we aim to transmit are investors pitches, meetings with mentors, or staff meetings. At lighter social occasions such as dinners, weddings or parties, we need to hold  conversations, share opinions and thoughts. At each of these, we require the the ability to speak personably and effectively.

There is a big difference between speaking well, and just talking. The two should not be confused. Talking without much thought and just for the sake of talking, can have major ramifications on our personal and professional life. Over the course of this week, I will outline some basic components of the ability to speak and communicate effectively. This is an art we can develop if we are committed enough. The steps which will be discussed in the coming week, are distinctive  traits and aspects I have noticed in successful speakers. I look forward to your comments and feedback on this series.

Strategy

5 Steps to Better Inventory Management

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“Every company has metrics that track performance. The key question is whether these metrics really provide visibility to performance as viewed by the customer.” Steve Matthesen

Inventory management is an aspect of business which needs to be given more attention than what it currently receives. It is certainly not the most glamorous aspects of running a business. Inventory management is a basic business building block like marketing, sales or finance. Simply put, inventory management deals with how efficiently an organization manages it stock cycles. Stocks in inventory, relate to aspects of business that are exposed to risk when accumulated beyond certain thresholds. In the case of a service business, it is the amount of outstanding payments. Efficient inventory management helps a business to maximize its existing assets by increasing turnover. Listed below are five steps to assist your business in managing inventory cycles better:

1. Inventory Velocity: This is an essential metric, which measures the speed at which a business can move it’s stock. The speed at which a business moves it’s inventory will impact substantially on its profitability and ROI. Inventory velocity can be calculated by simply dividing the cost of goods sold by the average inventory for the period. This is a benchmark all businesses should watch very closely. To learn more about the importance of measuring inventory velocity please click here.

2. Forecasting: Mistakes made by forecasting incorrectly will impact directly on the level of inventory at the end of a financial period. There are three important aspects to be considered when constructing forecasts. The forecasts need to be based on data acquired from the market, sales channels and the current pipeline. Based on these aspects, we can construct forecasts for multiple scenarios which enable us to put measures in place, for the best and worst case scenarios. It is important to remember that forecasts are only as good as the assumptions they are based upon. To learn more about how to forecast revenue for your business please click here.

3. Communication Channels: When there are insufficient channels of communication between the producer, distributor, retailer and customer inventory, management becomes challenging. The information gap needs to be bridged by implementing several communication channels which include, allocated representatives, conference calls, real time stock levels and feedback channels. When information is allowed to flow freely from the customer to the producer, changes can be made faster and everyone in the chain stands to benefit. To learn more about the various communication channels please click here.

4. Technology: Organizations such as Walmart and Dell have shown the power of technology to optimize inventory management. Today, entrepreneurs have access to several tools such as bar coding, inventory management  and billing management software, which can help give small businesses an edge in managing their inventories optimally. To learn more about different types of technologies available for inventory management please click here.

5. Internal Policies: Policies and controls need to be selected carefully. Their main objective should be to facilitate bottom line growth for the business. These objectives act as guiding principles, and policies are intended to facilitate reaching those goals. Proper inventory management can impact bottom line figures and results for the business substantially. Policies pertaining to ordering, review and collections need to be mapped out in detail to ensure proper management of inventories. To learn more about internal policies relating to inventory management please click here.

Operations and supply chain management are the nuts and bolts of all businesses. Without smooth operations and proper controls, we could have a great website, killer marketing strategies and still come up short. When a customer does not get the product in time, or at the right price, we lose the customer. It all comes down to execution, and ensuring that we have systems in place to manage each order optimally. Inventory management is a critical aspect of this chain, and I recommend all business owners review their inventory cycles and work out ways to optimize them.

Strategy

Inventory Management Internal Policies

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“Policies are many, Principles are few, Policies will change, Principles never do.” John C. Maxwell

A common answer I get when I ask individuals why they chose to become entrepreneurs is, “We did not want to get buried in bureaucracy and policies which stop us from performing optimally.” I completely understand where they are coming from. It is true that in some larger organizations policies and controls become so complex that it leads to much frustration. However, I do not advocate running a business without any control measures. Policies and controls need to be selected carefully. Their main objective should be to facilitate bottom line growth for the business. These objectives act as guiding principles, and policies are intended to facilitate reaching those goals. Proper inventory management can impact bottom line figures and results for the business substantially, and is an area where entrepreneurs need control measures to ensure that things move smoothly. Listed below are a few policies which may be helpful:

1. Ordering: If your business depends on manufacturers to produce your product, it is best you have documented your specifications in detail. It is also advisable to get quotes from a number of manufacturers before deciding to go with a particular vendor. This not only helps gather market information, it enables you to get the best price as well.

2. Inventory Review: I recommend setting up a policy to review inventory stock levels periodically. This helps determine current worth, idle stock alternative strategies to be offloaded can be discussed, and it provides management with a holistic view of the level of risk they are currently exposed to. For a service based business, this can identify customers not paying on time, and adjust their credit lines accordingly.

3. Collections: This is an area where entrepreneurs face a lot of challenges. If you have outstanding payments for products sold through retailers or for services rendered, it is essential that a mechanism is in place to receive this payments as soon as possible. I would recommend setting up periodic reminders through, email, phone calls and personal visits to speed up this process. Depending on your business model, having a collection policy which is adhered to closely, can increase short term liquidity substantially.

Inventory management is definitely not the most exciting aspects of business. It is however, a critical function which needs to be given a lot more focus. Through appropriate policies and control measures, we can achieve optimal inventory velocity and increase the likelihood of turning in even greater profit.

Strategy

Inventory Management Technologies

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“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” Bill Gates

Technology has played a massive role in optimizing inventory management. Examples of companies which stand out are, Walmart and Dell, they have used technology to make the most of their inventories and maximize velocity. Both these companies have used technologies such as RFID (Radio Frequency Identification), web based systems and software automation. Take Walmart for example, they track inventory levels throughout their stores continuously, and are able to transfer inventory from one geographical location to another, based on demand changes or how they use RFID to streamline pick-ups and deliveries from their warehouses. These represent massive infrastructure costs, which eventually lead to cost savings and efficiency. Most start-up companies will not be able to afford such systems. However, they do need to think of creative ways to use available technologies to optimize their own inventories.

Some ways to incorporate simple technologies into your business are:

1. Bar Coding: With specialty printers and software available quite reasonably, I recommend tagging your stock to keep track of movements. We implemented this in one of the companies I was consulting at, and it gave management a holistic view about stock levels and usage patterns. Using this information, they were able to make better inventory based decisions.

2. Inventory Software: These programs help keep track of key metrics regarding the usage of your inventory. They have the capability to provide future trends based on past usage, and can identify areas where the business is taking unnecessary exposure by ordering too much or too little. The fact that your stock inventory can be viewed holistically is a great benefit in itself.

3. Billing Management: For service based businesses, I strongly recommend using an invoicing and billing management software. These are critical to ensure that invoices are issued in time, and payments made accordingly. One can easily find metrics such as, how long your billing cycles are, and which customers need to be given stricter terms. Some tools have inbuilt email reminders, a very handy feature, to remind customers on a periodic basis. I find a lot of younger business owners take this function too lightly which can severely damage cash flows.

A constant aim should remain to increase inventory velocity. Technology provides us with a multitude of tools to help reach this goal. Some technology tools available, can unnecessarily complicate processes which can backfire. It is important to always keep simplicity and some specific goals in mind when integrating technology tools.

Communication Strategy

Communication Channels

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“The single biggest problem in communication is the illusion that it has taken place.” George Bernard Shaw

A major reason for inventory mismanagement is a lack of appropriate communication channels of information. When a producer has insufficient contact with the distributor, unrealistic expectations are formed. By the same token, if the distributor has insufficient communication channels with the retailers, there is also a massive information gap. To minimize surplus inventory stocks and form realistic expectations, all the parties involved need to play an active role to allow for real time feedback and communication. For example, a company I have invested in, distributes a particular type of spray paint can. It is a high end product, with many lower priced competitors. When we began a relationship with the producer, the producer’s expectation was to clear inventory at a certain speed. The ground realities however, were very different from what was expected, and it was primarily our fault for not doing sufficient research. This strained the relationship with the producer.

Eventually, we devised a model through which we began to clear the goods at a much faster pace, but it was not through the traditional retail model. When the producer came to visit our operations, he had very different expectation, and it took a lot of effort to clear communication channels. The lesson to learn from this example is, there have to be multiple communication channels for a business, to help them acheive their inventory turn targets. First the producer and the distributor must allocate an individual on each side to communicate the feedback received. There also needs to be periodic conference calls with management to talk about issues from a macro level, and to temper expectations and goals. Stock levels and pricing strategies should be constantly monitored. Next, if the distributor used multiple retailers, the same structure should be set up for communication between them. Lastly, constant customer feedback must be available through the web or surveys.

Creating a holistic model, where communication between all involved parties becomes transparent and fluid, will help fill the information gaps which are a result of faster inventory speeds. In my personal experience, it has not only created a stronger relationship with our principal, it has helped us tap into the potential of the product itself. This is done through constant feedback and strategies, which are developed when all the individuals involved work together to push the product harder. A lack of communication channels will result in stock piling of inventory, unhappy relationships and unrealistic expectations. It is therefore critical that communication channels be set up as soon as possible.