Talent 911

Wall Street

 

It has been interesting to watch this whole occupy Wallstreet movement take shape.  The protestors have some valid points about corporate greed and the influence on government policies.  But I have been floored by many of the interviews with protestors at some of their “demands” and complaints.  One of the biggest themes I have heard repeated have come from unemployed college graduates who have mountains of debt from their schooling and no job prospects.  My question to them is what did they go to school for?  I know the job market is tough but there are many sectors hiring and struggling to find people who have the right backgrounds.  If I am going to spend ungodly amounts of money to go to college, especially an Ivy League or private school that costs way more than a community college or state school, I am going to be damn sure I go into a field that is going to give me a good chance at a job and career when I get it out.  You need to look at the types of salaries that are in your chosen profession and find a college or program that makes sense from  a cost perspective.  If I want to be an assistant night manager at a McDonalds that I know pays $12/hr, it probably doesn’t make sense to go to U of M and spend $100,000 to get a four year degree in hamburger management when you can probably get the same job with a much cheaper educational alternative such as community college.  If you plan on becoming a brain surgeon who is going to pull in 400K a year, that $100,000 investment in your bachelors degree probably makes a lot of sense.  I think this situation is illustrative of how this country has ended up where we are.  If I am making minimum wage and a bank tells me I qualify for $300,000 house does not mean I should buy that house.  It might be a little tough to continue to afford that house when other expenses come up like food.   Just because you CAN buy something, doesn’t mean you SHOULD buy it.  You see people do it with cars, electronics, educational expenses.  Why is there no consideration of long term consequences of our actions anymore?  Paid too much for a useless degree?  Don’t get out there and do whatever you can to work your way up out of the mess you created yourself with your decisions, no, instead go camp out in a park in NY city and demand that the government forgive all student loans.  We have free will and we need to be responsible for our own lives.  That is what has made this country great.   If you don’t like the way things are run, consider carefully who you put in office and the companies you choose to support. More importantly, quit whining and get back to moving forward and contributing something to society. 

Justin Himebaugh leads the accounting department at HRU, (or The Necessary Evil Group as he calls it).  A Graduate of the Haworth school of business at Western Michigan University, Justin has specialized in systems implementations and streamlining the accounting function for the companies he has worked with.  Besides having a well rounded skill set when it comes to accounting he has an unblockable fade away jump shot and mad skills in the low post on the basketball court. You can follow him on Twitter, @necssryevil

Have Cover Letters Gone the Way of the Dinosaurs?

Ok - time to get into the mind of a recruiter - HRU's Keepin It Real edition.  The following post is from Brooke Cummings - one of HRU's dynamic Account Managers who came up through the ranks of recruiting, and she gives you her feelings on whether an applicant/candidate should have a Cover Letter or not - then - I'll respond with what I think!

From Brooke...

Is it true? Are cover letters a thing of the past, extinct?  I received a resume today to my email with no cover letter and in the subject line it read, “ Position”. THINK AGAIN FRIENDS!

Here’s my take. If you can’t give me the time to  introduce yourself, I CANT GIVE YOU THE TIME OF DAY period! It shows lack of ambition, laziness right off the bat. Sorry so harsh but I am looking for something special… a colored font, curly Q’s, a special quote, SOMETHING! Actually wait, don’t do a colored font on your resume, it’s annoying. Just be smart, follow the tips below and don’t over think it.

• Bottom line: Unless you like to send your resume into other people's trashcans, make sure that a cover letter accompanies your resume.
• Research your target organization, know the name and gender of the person who will review your resume. IT’S A FACT -People love seeing their name on important documents.
• Your resume talks about you; your cover letter talks to your intended employer. Describe in your cover letter special benefits that set you above other applicants and why your perfect for the job, Brag a little, but don’t get CRAZY. Nobody wants to read about your award for winner of the 1989 Hometown arm wrestling tournament you were in. Nobody cares. Keep it to work related things.
• Save the salary discussion for the interview, not your cover letter. (If you put your salary requirement on there you might as well say,  “Maybe you have heard of me I’m kind –of a big deal’.)
• Once you have submitted your resume and cover letter,  It is ok to call or e-mail to confirm it was received, just but don’t be a stalker.

Remember, you have skills that set yourself apart, so show them off on a cover letter and not inappropriate profile pictures on Facebook.

Tim's Counterpoint...

Really - you're going to throw a resume into the trash can because they didn't introduce themselves or send you a proper Cover Letter!?  I don't care if they even put their last name on the resume - if they have talent - if I can fill one of my hard-to-fill needs with them - I'm calling them up!  

Look, I'm not one of these "Old School" HR types who needs all the "Pomp and Circumstance" of our "normal" HR/Recruiter applicant dance we make people go through.  I don't require perfection on a resume - do I question a misspelling? Sure, but is it a deal breaker - heck no!   I'm looking for talent, the best talent many times doesn't even have a resume put together - so when I ask them to do one - and hurry it up! - I expect it's not going to be perfect.

Cover letter were a part of our Grandparents generation - when you had to send a resume in the mail on "marbled" french vanilla colored paper that had some weight to it ("weight" of paper is a concept most people under 30 don't even understand!).  When the "personnel" manager had to read each cover letter and resume specifically to find out which hiring manager to forward it onto.  With todays technology advances - cover letters actually get in the way of the process!

So, what have we learned kids?  If you want job at HRU - send Brooke your Cover Letter - Don't send Tim your Cover Letter.  If you really want a job at HRU - send your resume to one of our recruiters! (you can check them out here!)

The Dog that Wouldn’t Hunt

 

I heard the saying “That dog just won’t hunt” the other day and it made me think about how managers of people often don’t take the meaning of this saying to heart.  Sometimes we try to put our people into positions that they are just not equipped to handle or are not going to succeed in.  We do it with all the best intentions, but nevertheless we are setting them up to fail.  Where I have seen it the most is when someone who is a “doer”, a boots on the ground type, say a programmer, or designer gets promoted to a project manager or strategic “vision” type position.  They are equipped for and passionate about doing their jobs and are so good at it that they stick around long enough that we want them to move up in the company.  They may even talk themselves into wanting to move up.  The reality though is that many of them may not have the additional skills needed to move into a position where they may be managing people, setting priorities or establishing the long term vision of their group or the company.  If they are not proficient in these areas they will struggle and may ultimately fail.

My first time pheasant hunting we were with experienced hunters who had their bird dogs with us.  My brother in law had brought along their Springer Spaniel Daisy along to see if her natural instincts would kick in and if she “could hunt”.  The guy with the most experience training dogs to hunt said the easiest way to test her was to fire off a round from a shotgun and see what she did.  So he fired the round into the woods and Daisy promptly made a puddle where she stood and then took off back to the truck where we found her scratching at the door and shaking like a leaf.  Needless to say, that dog would not hunt.  She was not equipped to handle it, she was “gun shy” and probably would never get over that.  She was a great family dog, good with kids, but she would never be a hunter. 

At the end of the day, that is ok.  The key to being a good manager and leader is to recognize what people’s strengths are and helping them grow to their full potential.  That may lead some to management, which is great, but it also may keep some people in a role where they remain hands on getting the important work done that keeps everyone collecting a paycheck.

Justin Himebaugh leads the accounting department at HRU, (or The Necessary Evil Group as he calls it).  A Graduate of the Haworth school of business at Western Michigan University, Justin has specialized in systems implementations and streamlining the accounting function for the companies he has worked with.  Besides having a well rounded skill set when it comes to accounting he can still hold his own in the pool if a game of water polo breaks out. You can follow him on Twitter, @necssryevil

Netflix Case Study in Customer Service?

 

 

There is a very interesting drama playing out involving Netflix and their price increase the implemented a few months ago.  When it first came out that they were separating the DVD mailing portion from the streaming portion of their product and pricing them separate, effectively raising the price on the combined services by 60% there was a big backlash from their customers.  Instead of laying low about or trying to deal with it they responded with an arrogant reply:

Steve Swasey, vice president of corporate communications for Netflix said the timing of the price change was "appropriate" and that "$6 more is a remarkable value, a latte or two every month. For most folks it’s absorbable," adding Netflix was "sympathetic to those in terrible financial straits." 

But, he said, the reaction was "expected." "We anticipated some folks were not going be happy with the change. It didn’t surprise us."

Swasey said, "30,000 or so is a sub set of 23 million subscribers. They're not speaking for the majority. But, their opinion is important and we value them." 

"We would like those members to stay with Netflix, but the reality is people will leave. We'll make it up over time and the service will continue to grow. I don't want to sugarcoat this. We do expect a certain amount of people to leave the service," Swasey said. Besides, "Netflix members already go to Redbox, order cable, go to theater and Amazon."

 

Basically they said, here is the way it is, if customers want to leave, go ahead and leave.  Well, they did, by the millions.  In this day of tweets, retweet,s and links to articles their response spread quickly and people voted with their feet.  Then their stock tanked and now the CEO has issued a public apology and an explanation of their plan to split off their DVD and streaming plans into separate businesses.  It will be interesting to watch how this plays out and if his apology is perceived as genuine enough to win customers back.  To me the bottom line is that they left their customers feeling like they were not valued and in these times where your budget dollars are precious, most people tend to prefer to do business with companies they feel appreciate them.  Maybe they are able to recover from this, maybe they won’t, either way it is a pretty important lesson that you see on motivational posters all the time “take good care of your customers…or someone else will”.

 

Justin Himebaugh leads the accounting department at HRU, (or The Necessary Evil Group as he calls it).  A Graduate of the Haworth school of business at Western Michigan University, Justin has specialized in systems implementations and streamlining the accounting function for the companies he has worked with.  Besides having a well rounded skill set when it comes to accounting he can still hold his own in the pool if a game of water polo breaks out. You can follow him on Twitter, @necssryevil

Create your own Job

 

All the political rhetoric from both sides has been driving me crazy lately with all the jobs talk.  Since the recession has hit and seems to be ready to play an encore, that has been the hot button issue with everyone.  What are our elected officials going to do about creating jobs?  In my opinion that is not in their list of responsibilities.  I think politicians are the last people we need to be looking to for help on that front.  Many of these leaders have never run a business or even held a non tax payer funded job in their life.  I think government’s role is to create a safe environment with as little regulatory red tape as possible.  Defense, infrastructure, enforcement of the laws are really the main things our taxes should be going for.  Sitting back and expecting Uncle Sam to create and hand deliver you a job is not going to end well.

 

We all need to make sure we are doing what we need to do to bring something valuable to the table to make sure we remain employable.  This may evolve over time as new technologies come onto the scene (Just ask a manufacturing line worker who has been replaced by a robotic arm).  I understand there are plenty of people unemployed currently that have done all the right things and may have been caught in circumstances beyond their control.  But there are plenty who are not doing enough, or anything at all to better their situations. 

 

Think of your job as a boat, sometimes you jump out of the boat (leave for another company or to start your own), sometimes you are pushed out of the boat (laid off, fired), and sometimes the boat just sinks (bankruptcy or company goes out of business).  No matter what the circumstance of you ending up in the water is, you better be prepared to swim before you end up in the water.  It is pretty hard to learn how to swim while drowning.  My point is you may have a job now and things look great, but if you don’t stay up with technology, make sure your education is still relevant, and build and maintain a good network in your field you could end up in the water without any help.  When you do (and most of us will at some point in your life) you better be willing and able to swim.  I think too many people in this country have not valued education and have not given any thought or made preparations for a plan B.  For a long time you could make a middle class living with little or no education.  Not so anymore, you have to learn to swim and be ready if you are going to survive. 

 

Our politicians are giving people false hope, telling them they have plenty of life vests for everyone, when in reality they don’t.  So do yourself a big favor and don’t sit around waiting for your local politician to come around handing out dream jobs, you may be waiting for a very long time.  Make your own luck, take action, keep moving, that is how we will get the economy back on track.  We really just need the government to get out of our way and concentrate on providing a good environment to do business in.   

 

Justin Himebaugh leads the accounting department at HRU, (or The Necessary Evil Group as he calls it).  A Graduate of the Haworth school of business at Western Michigan University, Justin has specialized in systems implementations and streamlining the accounting function for the companies he has worked with.  Besides having a well rounded skill set when it comes to accounting he can still hold his own in the pool if a game of water polo breaks out. You can follow him on Twitter, @necssryevil

 

Does Employee Loyalty Matter More than Potential?

There was a great article in the Wall Street Journal recently titled: A Healthy Dose of Loyalty that examines the benefits of employee loyalty.  While society seems to devalue loyalty, it is becoming increasing clear throughout the recent downturn in the economy that people benefit psychologically when they remain with their same employer.  Well, at least most employees.  From the article:

 Scientists have documented the health benefits of staying in a long-term romantic relationship, including reduced illness and longer life. Employees who stick with a single company rather than job-hop tend for the most part to be better compensated financially and to be more productive and creative, other research has found…

For most experienced workers, typically those who had at least five years of experience in the field, the bulk of wage growth comes from staying with an employer, not hopping between companies. People who had a minimum of experience of five years with a single employer typically got 8% increases in compensation a year compared with about 5% for people with a history of job hopping… "There's a perception in Silicon Valley that there's a gain to be had by hopping from employer to employer," says Dr. Shaw. "But short-term hopping is not advantageous to the employer or employee."While it is rare for employees to spend their whole career at one company, most are better off if they stay put for five to 10 years, she says.

(Tim Sackett, EVP - HRU) I think there’s a couple of ways to look at employee loyalty – one the person is just wired to not want change, thus staying with one employer is their preferred state of work.  Two, the person isn’t a top player, thus don’t have the choices to go and work for another company. Regardless, I have seen in my career that those employees to tend to stick around, tend to eventually move up into leadership roles. What do you think Rowena?

(Amanda Rowe, Recruiting Manager - HRU)  Wow Tim… are you referencing me? :)  I can say that from my experience at HRU (10+ years of experience working as Recruiter, Account Manager and now Recruiting Manager) that I have learned a lot along the way from many different people and have a lot of experience to share.  I hope that I have been moved into my current role due to my success throughout my tenure not just because I have been here for a long time.  Most people who have stayed with a company long term have proved themselves within an organization and are better at relationship building. Unfortunately, those people are also at highest risk when the company goes through headcount reduction since they are highly compensated, thus perpetuating the “job hopping” trend for younger people.  It is our job to keep communication open and keep our talent motivated and challenged at any role with the organization.

(Tim) Row, Row, Row your boat – Not referencing you at all! You deserve every promotion I give you… ;) I agree with you in that one’s ability to build strong and lasting relationships, has a direct correlation to a tenure with a company, for the simple fact if you have great relationships with those you work with, you won’t want to leave.  I think most companies still use tenure when determining reductions, instead of performance, unfortunately, so that only helps keep your tenured folks around longer.   I’m not sure there is a secret sauce for keeping employees around longer, but  I think it all comes back to engagement and challenging work.   Why did you stay around for 10 years?

(Amanda)  I can’t say my 10 years have always been “Merrily, merrily, merrily, life is but a dream” – (wow that was bad!), but I can say a big reason is feeling as though the company had an interest my professional development.  Also, as an employee there is a fine line of understanding the grass isn’t always green when times get tough.  As long as you have a manager that is in touch with your development and you are challenged longevity comes naturally.  Plus, it always helps to have some great co-workers!

(Tim) Rowe-bo-cop, you make great point in that having such a super boss like me probably does have a big impact at keeping you around!  But seriously, I'm right, right?! ;)

Packing Parachutes

I attended SHRM National a few weeks ago and got a great once in lifetime (at least for me) experience - jumping off the Stratosphere in Las Vegas.  850 feet, 108 stories - called the SkyJump (check it out! it was fun).   While I was up on the 108th floor getting ready to jump, I was reminded of a quote a supervisor of mine once told me:

"Tim, some people just aren't cut out to pack parachutes." 

I'm not sure why that quote came to me, at that exact time, could have been I was about to jump off a very tall building and I might have been a bit concerned about the individuals chosen to ensure the safety of the equipment I was about to use - yeah - I'm fairly certain that was the reason!  When you are looking 850 feet down, and getting ready to jump, it might be the only thing going through your mind - "I hope these people know what they are doing!"   But how do you know - how do you know the person selected was "cut out to pack parachutes"?

My old supervisor told me this as I was trying to talk him into moving an individual into a role that he obviously feel the employee in question wasn't ready for.  I think we as HR Pros are always trying to find the right fit for individuals in our organizations, and many times we are trying to make "Parachute Packers" out of individuals who aren't cut out for such an important, permanent type of job!  Since we rarely move someone into a life and death role, in our organizations - we think it's alright, they'll be fine - even if they fail, it's good experience.

But it's not.  It might be the one weakness we commonly have as HR Pros, we don't view the roles we move our employees into - important enough.  We don't treat them likes its a life and death decision - it's just business.  Is it?  Or is it the life of our organizations and companies that we are taling about?  Maybe it's time we start treating these moves with more reverence!

Organizations fight to survive every day.  We as HR Pros need to have that same kind of fighting for our survival mentality, especially when making lasting organizational decisions - like making personnel moves.  These moves are too important.  The next time you get ready to move an employee into a new role in your organization, ask yourself one question. 

Would I allow this person to pack my parachute?

It's not in a literal sense, but in a way that gets you to really think about the move you are about to make, and the person you are about to saddle that hiring manager with.  No move is too small or unimportant in your organization to not ask this question.

As for me - I won't hire anyone into my company or keep anyone on my team, that I wouldn't feel completely comfortable packing my parachute!

Tim Sackett is the EVP of HRU and has over 18 years of corporate HR and Talent Acquisition background working with Fortune 500 companies.  Tim speaks nationally on the topic of Talent and probably likes to hear himself speak more than anyone.  When he's not talking, he is probably bugging the recruiters on why they aren't on the phone - and yes, he really does look like Richie Cunningham from Happy Days ...connect with Tim.

America's New Glass Ceiling - Parenthood

HRU Recruiting Manager, Amanda Rowe, and I go back and forth on the validity that Parenthood is the new glass ceiling in Corporate America:

(Tim)  There was once a time I was really passionate about “Glass Ceilings” – I prepared my Master’s Thesis for my HR program based on this concept, that women were not getting enough opportunity at leadership levels as compared to similarly qualified male peers.  That was about 15 years ago.  I still think we have a gender based glass ceiling in our society – but I get a bigger feeling now that we have a new glass ceiling in corporate America and it’s “Parenthood” – maybe that’s just because I’m a parent and not a woman! What do you think Rowe, your one of each? 

 (Amanda) –  I think we have shattered the glass ceiling,  but at what kind of price?    I struggle everyday wondering if I am being the best mom I can be.  I am in a “leadership” role that I am proud to be in, but at the end of every day I still have the same duties as all other moms out there that maybe work part-time or stay at home (which is a whole other job)! I still have runny noses to wipe, sick kids to attend to, a husband to make happy, school work to finish… want me to continue?  Am I short changing my kids not being able to take them to “mommy and me” play dates that are during the week at 10am, while I am meeting with a client or in a meeting?  For me, the answer is no.  There are many reasons why I say this… to name a few,  I am providing for my children’s future, and maybe a little vacation now and again.  Times are changing and fathers are a lot more involved taking over duties like cleaning the house, laundry, packing lunches etc.  (Ok, so maybe we overlook the white shirts that have now turned a light shade of pink.)  Companies are also adapting more with flex time and telecommuting.  The bottom line is that most mothers value the time spent with our children, for us “working mothers” it is more about the qualitytime.  So, I am leaving guilt at the door and realizing there are only 24 hours in a day.  And every once in a while I may try to indulge myself with watching something other than Spongebob!  So Tim, how many shirts have you turned pink?

 (Tim) Rowena, Pink Shirts!?  Heck, no – but that’s only because I send my shirts out to the cleaners!  I have to agree with you, the family make-up today is much different than when our parents were raising us.  My Dad never did anything around the house, even when my Mom worked – my wife has different expectations of me as a husband and a father.  I think woman in the work force still have it harder – but – (there’s always a but!) I think there is still a culture in corporate America that doesn’t let Dad’s today (the younger Dad’s out there) really be the Dad they want to be, and that their working wife expects them to be.  If I leave early to get my kids from school, there is no way I’ll get promoted (that is a sign of weakness, lack of loyalty, etc.). If a woman leaves early to pick up the kids, she is doing “the right thing”, balancing both being a Mom and a career.  Dad’s are looked at differently in trying to balance – unless it’s leaving early to coach football!   So, how do we change these attitudes in the work place?

 (Amanda) First off… Rowena Tim?  Does everyone need to know one of many nicknames I have around here!?!  I think that we are getting there.   Not only do working moms and dads typically struggle to find that balance, but we also struggle with not allowing top management to think that since I am a parent that will hinder my capability and commitment to the company.  Let’s face it… a company who feels the loyalty of their employees by having an expectation that he or she would choose their job over their family is NOT a company I would want to work for, and I think most will agree.  As younger executives fill higher level positions  we will continue to see that shift to balance work and family. The precedence is set by top management to set a “good” example, male or female.  With technology today moms and dads can leave a little early to make it their child’s t-ball game but still have the capability to get work done from home.  So really do we need everyone working until 7:00pm at night to prove dedication?  My answer is “no” but finding the right balance is key! I recently took my kids to get ice cream and as they were eating their ice cream cones they were talking and laughing while an older couple looked on.  As this older couple left the gentlemen looked at me and said “Enjoy every minute of this.  I miss my kids when they were this age”.   As I looked at my kids with their messy faces and cones dripping all over their shirts I laughed.  In this fast pace world where working parents are going through the motions to try and make a mark in the world, it sometimes takes a complete stranger to help point out to us to stop and enjoy the moment.   Our kids are young only once enjoy the time you have with them now!  Find your balance.

(Tim) Hold on a minute - I need to wipe away the tears...Ok, let's be real for a minute - companies say they care about balance, but they don't - it's a marketing pitch to get the best talent - they care about results.  If you're getting results, you'll have all the balance you need - if you suck, you don't get balance.  But I have to agree with you that companies executives, today, do think workers with young kids, especially, will struggle to perform in high level jobs. It might not be right - just like the original glass ceiling for woman - but it's a reality in today's world!

 

Hello World - Amanda Rowe Style

My boss Tim Sackett  (successful  Fistful of Talent (FOT) blogger) is “encouraging” me to start blogging in a way to get my name out there… really???  Who wants to listen to me… Amanda Rowe, mid 30’s (really did I just say that) mother of two who lives in Portland, MI? (P-Town Holla!) I know, I know, Portland, MI… where is that?  Or those of you who know about Portland have faint memories of stopping to “fuel up” on your way up North.

So, what would a small town girl want to share with the world? 

I looked to one of my fearless leader’s latest blogs – “The 2^nd biggest lie we tell in HR” – www.timsackettproject” for some inspiration.  Or shall I say contemplation… what is he telling us? 

“Herein lies one of HR biggest problems, though, not everyone is going to get better. In fact, I think it’s the 2nd biggest lie we tell employees:

“Everyone can be successful.”

No, they can’t! “

The times I’ve watched hiring manager, after hiring manager, blow hot air up employees butts about how successful they’ll be, those employees rarely ever come close to the high praise they were given.

Oh great, after reading his blog my mind immediately goes back to the conversation I had with Tim telling me to start blogging and cheering me on as I embark on my first blogging endeavor.  (Ok, really I am a little behind the 8 ball when it comes this whole social media thing, but hey, I am stepping out here! 

Then, I realized anyone can blog.  It’s great if your blog gets some recognition that people actually reply and appreciate what you have said, or the complete opposite for that matter.  It is more of getting people to connect with you as a person, good or bad.   In the end, we all have jobs/hobbies we enjoy and have a lot of insight we can share about how we have become good at what we do.  Why not share it with the world… right?

So there you have it… my first blog.

So Tim, don’t blow hot air… how did I do? 

Got data? Now what?

 

At HRU we recently replaced our 1980s era phone system with a new modern system that was a major leap forward in technology and bells and whistles.  The old phones worked fine, so why would we spend the money on a new system to replace something that functioned fine the way it was?   It was an opportunity for us to leverage the newer technology to provide us with very in depth data about how our phones were being used.  As a recruiting and staffing company a large part of our success relies on the ability of our recruiters and sales staff to find openings with companies and then find the talent to fill those openings.  Phone calls, even in the age of email and social media, is still the most critical component to closing deals and selling candidates on taking those positions.  It is a numbers game.  The more phone calls made, the more placements happen.  It is a very direct correlation.  So being able to report on specific activity on our phone activity is very valuable information.  Taking that information one step further and creating some rewards and incentives around that activity that drives our business leverages that technology investment we made and provides a return on investment.  That should be the ultimate result of any investment in technology that you make.  If you spend $50,000 on a shiny new accounting system you should be able to safely expect to streamline enough processes and create enough savings to pay for the system within a few years, otherwise you have done something wrong.  There are a few places that companies tend to go off track that may cause them to not get that ROI they want when implementing new technology, here are a few I have witnessed:

 

Overbuying-maybe you are a small company and were talked into that $50,000 accounting system when really all you needed was a $300 version of Quickbooks.  You may not be large enough to realize the ROI on such a large investment.  If that is the case you are probably buying too much system that you probably will never use.

 

Poor Implementation-I have seen many companies that buy the latest and greatest and then never fully implement the software or the functionality of a piece of hardware.  Having someone QUALIFIED leading your implementation (someone who has done this before) can have a tremendous impact on what kind of ROI you will be able to see on the investment.  I have seen major components of software packages that save huge amounts of labor such as import functions or other process automating features that were never turned on because the person implementing the system didn’t take the time to learn how to do it.

 

Training-You have to have at least one, if not several, gurus on a system you are implementing.  Spend the money to train them right and get them to learn the extra bells and whistles, not just the basics.  A system startup can be chaotic so the natural thing to do is just focus on basics and then life happens and no one gets back to implementing the fancy stuff that sold you on the new system in the first place.  It is sometimes very valuable to even do some follow up training 6 months to a year after the new system is installed to remind everyone about those features that you might not have had time to focus on when starting up.

 

Using the new Data to drive decisions/behavior- So now the system is up and running, make sure you learn the reporting tools and figure out how best to use this data.  The goal of my group is to provide accurate data to management and business owners so they can act on that information.  They may use the information to run contests that reward the behavior they need to succeed, like the phone calls.  They may use the information from a financial report to decide to discontinue a line of business or to increase the attention they give a particular customer because the data shows they are the most profitable. 

 

Be smart about how you invest those technology dollars and make sure you do the best job you can to justify those expenditures once you do take the plunge.

 

 

Justin Himebaugh leads the accounting department at HRU, (or The Necessary Evil Group as he calls it).  A Graduate of the Haworth school of business at Western Michigan University, Justin has specialized in systems implementations and streamlining the accounting function for the companies he has worked with.  Besides having a well rounded skill set when it comes to accounting he can still hold his own in the pool if a game of water polo breaks out. You can follow him on Twitter, @necssryevil