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 Winter 2003 News & Resources Improving the Bottom Line of SME's 
 

Improving the Bottom Line of SME's.

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Table of contents
Lead Article: Latest Australian Research
Improving the Bottom Line of Small to Medium Enterprise
What's on your jobseeker's menu - Cheeseburger or Chicken Wrap?
The Rule have changes.
Everyone Lives by selling something ...

What is your line of sight to the customer?
New study shows sales motivation
differs sharply by country

Why US sales management practices & training aren't often more effective in other nations
Newsflash in a fortnight
We will be bringing a newsflash shortly with more events and a link to our Online 2004 Online Business Survey for SME, click for more information
Public Events: Workshops
Genesys 4 day Accreditation training: 18, 19 & 20 February & 12 March 2004
Our Values: in more depth.
Unsubscribe Option: Here you can unsubscribe from this newsletter.
  Barrett Consulting Group

Who we are:
Creators and innovators of viable strategies and solutions linking people performance to business performance.

What we do:
Using common sense, industry experience and knowledge of people performance strategies, we create direct links between business strategy and peoples actions resulting in real revenue line increases.

We offer specialist consulting and resource services in two key areas:

  • Barrett Sales Consulting:
    Leading experts and pioneers in sustainable sales growth, performance and culture strategies and solutions.

  • Barrett People Resources:
    Creators and innovators of contemporary and leading edge selection, performance and retention resources, strategies and solutions.
Our corporate mission: So stay tuned for more information including:
  1. New product launches
  2. New market directions
  3. New research
 

Article 1: Latest Australian Research

Improving the Bottom Line of Small to Medium Enterprise


Article Perspective:
  • Competitive advantage starts and ends with the calibre and suitability of people
  • Poor selection decisions, lower employee satisfaction, higher employee turnover and
    lower productivity = lower profitability and client satisfaction
  • The relationship between turnover and productivity is not linear

Operating in the global economy means that small to medium enterprises (SME's) will need to be flexible in the manner in which they conduct business and in their utilisation of information technology. The strategic competitive advantage of businesses is constantly under threat. Competitive advantage starts and ends with the calibre and suitability of people a small to medium size business employs. In many instances, lack of time and money and the necessary focus on product and distribution often means that some of the "softer" business tasks such as:-

  1. Development of a robust selection process; and
  2. Creation of effective employee development programs
are often pushed to the back of the priority listing. The inability of the growing small to medium size business to adequately cover its human resource demands can result in poor selection decisions, lower employee satisfaction, higher employee turnover and lower productivity. Research clearly demonstrates that a combination like this results in lower profitability and client satisfaction.

A paper[1] released in August 2003 by Mark N. Harris, Kam-Ki Tang and Yi-Ping Tseng of (a) Department of Econometrics and Business Statistics, Monash University, Melbourne Institute of Applied Economic and Social Research, University of Melbourne, and School of Economics, University of Queensland, Australia has revealed that the optimal turnover rate that maximises productivity is about 0.22 per annum. Bringing the observed turnover rates in the sample to the optimal level increases the average productivity by 1.1 per cent.

The importance of this paper is that the authors have been able to statistically determine that the relationship between turnover and productivity is not linear. That is, turnover to a certain level will assist productivity, however, once that level of optimal turnover is exceeded productivity will decrease.

Barrett People Resources (BPR) describes what businesses, especially small to medium enterprises, must do, in order to maintain the balance between the needs of business and exploiting dynamically changing technology.

For further information please contact Sue Barrett on 03 9532 7677.

[1]This paper is the result of work being undertaken as part of a collaborative research program entitled: "The Performance of Australian Enterprises: Innovation, Productivity and Profitability". The project is generously supported by the Australian Research Council and the following collaborative partners: the Australian Tax Office, the Commonwealth Office of Small Business, IBIS Business Information Pty Ltd, the Productivity Commission, and the Victorian Department of State Development.

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Article 2: What's on your jobseeker's menu - Cheeseburger or Chicken Wrap?


Article Perspective:
  • Job Network members skilling up in the 21st century
  • The cost of not changing and adapting
  • ACTIVATE your jobseekers providing practical resources for consultants & job seekers

January 2004. "Look, we've been doing this for nearly ten years now and we're not interested in doing anything new. Our consultants know everything. We don't need to know about it". These were recent comments made by a Job Network Manager when we approached them about the ACTIVATE your jobseekers online support system. Everyone is entitled to their view.

Luckily, this has not been indicative of the responses we have received from Job Network providers since we launched the Job Seeking Index (JSI) and ACTIVATE your jobseekers online support system. In fact, the response has been overwhelming, especially when the consultants get to experience the system and see how it can make their jobs easier and more specific.

There is still a way to go though - A cursory glance of the most recent Job Network star ratings don't indicate such a rosy picture. Even McDonald's Restaurants, with a claim to being the experts and leaders in Fast Food customer service since the 1970's, have had to keep up with the times, to learn and to adapt to change. Consumer tastes and market pressure have resulted in McCafe and the introduction of "healthy food".

Still a maturing market, CEO's and decision makers of the Job Network should not expect any less when considering the needs of their customer base - jobseekers and employers. Change will remain strong as the Job Network evolves and fine tunes. Many providers are likely to struggle as they come to terms with how to meet more exacting KPI's:-

  • Ensuring jobseekers find work as quickly as possible;
  • Maximising outcomes; and
  • Delivering high quality, ethical employment services.

When you look at the influencers, behind the reasons jobseekers put forward for not being able to find their own job, consultants in the Job Network can only influence at specific levels (2nd and 3rd).

Jobseeker Excuses Level Influences
Not enough jobs... 1st Level Government Policy and

Economic Factors

Too many job seekers...
     
Skills don't match jobs... 2nd Level Education and Training
Don't know how to look for a job... Knowledge
     
Don't want a job... 3rd Level Attitude & Behaviour
Must have the right job... Attitude & Behaviour
Can't hold down a job... Attitude & Behaviour

As a Job Network consultant, where do you have greatest influence to assist, empower and change? Much of this is to do with the level of understanding you have of the skills, knowledge and attitude/behaviour of your jobseeker.

This level is dependent on the quality of your jobseeker assessment. Whereas past jobseeker assessment relied very heavily on the consultant making a subjective assessment, based on experience, personal preference and "tried and tested" methods more and more emphasis is being placed on supplementing the subjective assessment with an objective, scientific and measurable one.

Research tells us that the more subjective the basis of an assessment is the more dangerous it can be. "Tick and flick" assessments can be helpful but unless they can be validated, have a stronger chance of being problematic.

As in the McDonald's case example, realisation that a combination of strategies will produce a higher offering requires Job Network consultants and organisations to re-think the way they work with jobseekers and move with the times. That is, to entertain the concept that valid and reliable assessments don't put jobseekers into "boxes" but add some science, context and standardisation to the assessment and subsequent decision making process. And that they can work with the developers of these assessments to ensure that the analysis of the jobseeker can be targeted towards the outcomes that really matter (reducing periods of unemployment, increasing jobseeker self reliance, increasing activity and achieving more placements).

The decision as to whether to develop your own assessments "in-house" or purchase from a developer/distributor of psychometric tools depends on:-

  1. your knowledge, expertise and capabilities to develop a valid and reliable assessment; and
  2. whether you consider development to be a core part of your business.
Purchasing externally has significant risk management appeal aside from the fact that, in doing so, you are bringing new resources and knowledge into your business. And, when compared to the lost revenue and consequences of inappropriate or poor jobseeker assessments the cost is very affordable.

At the forefront of cutting edge jobseeker assessment and support in the Job Network is the Job Seeking Index (JSI) and ACTIVATE your jobseekers online interface.

Validated in the Job Network, the Job Seeking Index can help consultants to identify jobseekers likely to be most at risk of longer term unemployment, those more likely to be self reliant in their job search activities and individual behavioural reasons as to why jobseekers aren't maximising the opportunity to present themselves to the job market. The more effective contact made with the job market the higher the probability of job search success.

Consultants don't have sufficient contact time with jobseekers to observe every aspect of behaviour preventing the jobseeker from reaching their job search potential. An assessment tool like the Job Seeking Index can bring forward that insight. Barrett Consulting Group's validation study of the JSI, in the Job Network, confirmed that consultants, no matter their level of experience, find this one of the most difficult tasks.

The ACTIVATE your jobseekers online interface enhances the JSI assessment tool by providing some practical resources for consultants. ACTIVATE your jobseekers allows an organisation to input their OWN job search training and activity strategy content into the system and, based on the assessment and jobseeker profile generated by the Job Seeking Index, produce tailor made activity programs for jobseekers. The benefit of a standardised approach does not compromise an ability to produce individualised jobseeker solutions. There are also administrative efficiencies in using the ACTIVATE your jobseekers system.

So, the question is not about selecting a cheeseburger over a Chicken Wrap. Or about selecting a Big Mac over a garden salad. It's about the ability to move with the times and incorporating the best of both world's into your job seeker menu.

For further information on the Job Seeking Index and ACTIVATE your jobseekers online support system, please contact Sue Barrett on (03) 95327677 or 0403389070.

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Article 3: The Rule have changes.
Everyone Lives by selling something ...


Article Perspective: What is your line of sight to the customer?

Today every organisation lives by selling something, whether they are private or public companies, "not for profit" or government institutions. All of us in some way are competing for access to a revenue source to fund our organisations' existence. And new realities are shaping our business environment:

  • deregulation and globalisation has increased levels of competition across all levels and types of business
  • redefined quality and value standards
  • the drive for efficiency fundamentally changed the way people are facing buying decisions or business partnerships
  • And competition is fierce.

Our research shows that no longer can organisations and their people rely on their technical competence, passive referrals, their reputation, their brand or blanket advertising to bring in new business and new revenue streams as they may have done in the past. Now and in the future, organisations and their people also need to effectively self promote and prospect for new business or funding using professional and ethical sales strategies, demonstrating real value for money.

Good work no longer speaks for itself. The rules have changed ... The new management reality is that any organisation or individual must first make their competency VISIBLE to the people who need to know about them in order to be RECOGNISED for what they do well. Once they are recognised then they are in a position to get REWARDED.

How "fit" people are to take on the responsibility for improving the revenue line of an organisation is a hot topic in today's competitive market, even more so now for organisations who have not traditionally seen themselves as needing to have a professional sales culture such as:

  • Professional services firms
  • Charities & NFP's
  • Utilities
  • Banking & Finance Sector
  • Universities

Through our work, research and observations across industry, it appears many business leaders are wanting more from their people when it comes to proactively building sustainable and profitable business relationships with their clients or members. However, this function's importance is often underestimated or left to too few people leaving the business vulnerable to missed market opportunities and hidden revenue. Barrett Consulting Group has identified that creating major or sustainable improvements in sales and service performance requires a systematic change effort. What makes change so difficult? For one thing, managers grossly underestimate the difficulty that is involved in migrating an organisation and its people to a professional sales and service culture. The actions they take are generally too small and too piece meal to bring about meaningful improvement. Organisations simply do not recognise the stubbornness of old habits and entrenched ways of thinking. As a general rule efficiency can be built more quickly than effectiveness. It is a quicker job to build efficiency e.g.. increase call rates, decrease expenses than it is to build the levels of skills, behaviours and effectiveness needed for professional selling today. Concerted effort needs to be continual and over time.

Given that all organisations are operating in an increasingly competitive market place with more sophisticated clients, members and patrons expecting higher levels of service and value, what are organisations doing to source and retain the 'right' clients for their organisations? Perhaps it's time that these organisations realise that one immediate way to differentiate themselves from their competitors would be to focus on creating & managing a strong sales model & staff.

Barrett Consulting Group have a reputation for being able to work with organisations to achieve professional sustainable sales and service cultures where even the most skeptical executives are converted by exceptional revenue results and definite returns on investment. Using a scientific approach, we have helped many organisations yield real and sustainable revenue results (average revenue increases of 20-50%) and shifted some of the stereotypes that exist about selling. All this whilst appreciating the sensitivities and confidential nature of each firm's client base.

For further information on sales training, assessment, benchmarking and process audits please contact Barrett Consulting Group on 03 9532 7677.

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Article 4: New study shows sales motivation differs sharply by country.

Why US sales management practices & training aren't often more effective in other nations.s

Article Perspective:
  • Multinational Study Reveals Motivation differences in salespeople
  • US and Singaporean Sales Teams: "Show me the money!"
  • Australians & New Zealanders: "Let me use my abilities" & "Don't tie me down!"
  • Why US sales management practices & training aren't often more effective in other nations

Barrett Consulting Group has led research in the Australian Market into "Sales Effectiveness" by analysing, developing and delivering innovative, customised strategies and solutions which allow people to take immediate action. The latest research on sales motivation sheds some further light on why it is important to use programs which are culturally specific to your sales peoples motivations and values.

A major new study of sales motivation presented at the annual convention of the Society for Marketing Advances has revealed significant cultural differences driving sales success. It has helped explain why some of the better made-in-the-USA sales management practices aren't more effective in other nations. The answers may lie in what really provides motivation for salespeople.

The study (coauthored by Dr. John F. Tanner, III, associate professor of Marketing at Baylor University's Hankamer School of Business & George Dudley, Behavioral Sciences Research Press) asked almost 41,000 people across nine nations what they hope to obtain from their sales careers. Motivations assessed included:

  • opportunities to use talents
  • make money, work creatively
  • obtain status
  • interact with people
  • be self-managed
  • progress into management
  • freedom from routine
  • opportunities to be of service to others.

The nations studied include Australia, Canada, New Zealand, Norway, Singapore, Sweden, U.K. and USA. The study used the Sales Preference Questionnaire (SPQ®), to obtain data. SPQ is a specialized psychological test used world-wide to assess sales prospecting call reluctance.

Sales motivation in the US is more money-motivated than in other nations, but there are other more complex motivations at work. 33% of US salespeople and 36% of the salespeople in the U.K. say they work primarily to earn substantial incomes. This compares to only 9% in Norway and 11% in New Zealand, where "lifestyle" considerations such as opportunities to use their abilities and freedom from routine are considered more important.

In fact, successful US salespeople often shun advancement into management, because they can usually make much more money in sales. That further distinguishes US salespeople from those of other nations, where sales is frequently viewed as a temporary step on the way to management.

Over 12% of Australian salespeople actually seek a career in management. For the majority of Australian salespeople, opportunities to use their abilities and freedom from routine are more important motivators than making money, a preference shared by salespeople in New Zealand. However, only 17% of the salespeople in Singapore are similarly motivated. Like their US counterparts, Singaporean salespeople sell primarily to make money.

US salespeople are more money-motivated than salespeople in other countries. But, they are also more service oriented. 14% of American salespeople say being of service to others is their primary motivation. Among the countries studied salespeople in only one other country, New Zealand (11.5%), even approach that level.

What do these differences portend?

  • Knowing what makes salespeople tick is critical for finding and keeping top producers.
  • The implications are serious and far-reaching, especially when it comes to multinational sales management practices.
  • American sales management and training and procedures adhere to US presupposed values and perceptions, and may not be optimal, or even suitable, for other countries.
  • It is often better to access country and culturally specific training for your sales people.

For further information on sales training, assessment, benchmarking and process audits please contact Barrett Consulting Group on 03 9532 7677.

We have a reputation for being able to work with organisations to achieve professional sustainable sales and service cultures where even the most skeptical executives are converted by exceptional revenue results and definite returns on investment. Using a scientific approach, we have helped many organisations yield real and sustainable revenue results (average revenue increases of 20-50%) and shifted some of the stereotypes that exist about selling. All this whilst appreciating the sensitivities and confidential nature of each firm's client base.

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Other News, Public Events and Workshops

Other News
Newsflash in a fortnight We will be bringing a newsflash in a fortnight which will have more events but also a link to an online questionnaire!

This is the first BPR Online Business Survey for 2004 and its compilation will provide proprietors of small to medium enterprises with valuable information for future organisational planning purposes.

In a rapidly changing environment it is important to maintain accurate information about the views and concerns of business managers regarding their organisation's strategic direction and deployment.

Information from the BPR 2004 Online Business Survey will be used to:

  • assess and address potential organisational needs for small to medium enterprises
  • produce a white paper outlining trends
In order to provide relevant information to both you and your organisation we strongly encourage your participation in the survey. All individual responses are confidential and the final report will be available to all survey contributors.

To thank you for your participation Barrett People Resources would like to offer you on completion of the survey, a 1 hour free consulting session PLUS access at NO CHARGE* to any of the following assessments:

  • Job Analysis & Competency Profiling Questionnaire
  • Organisational Performance Indicator Questionnaire
  • Sales Process/ and Team Development Analysis
  • Workplace Relationship and Development Indicator (Key Talent Retention)

Should you have any questions please do not hesitate to contact Sue Barrett on 03 9532 7677.


Genesys 4 day Accreditation training: 18, 19 & 20 February & 12 March 2004

The GeneSys assessment system provides the tools and functionality for professional, efficient and cost-effective psychometric testing in support of selection, development and other people management activities. However, any assessment tool can only be effective if used by skilled and knowledgeable personnel. The GeneSys Accreditation Program is a practical four-day training course providing an introduction to psychometric testing and its application using the GeneSys assessment software.

The aims of this program are to provide participants with:

  • An understanding of the role, limitations and ethics of psychometric testing.
  • Familiarity with the full range of assessment tools contained within GeneSys.
  • An introduction to test administration and data management using the GeneSys software.
  • Skills and knowledge necessary for interpretation of GeneSys assessment reports.
  • Guidance and practice in providing assessment feedback to respondents and third parties.
  • An introduction to developing and comparing ideal and candidate profiles using GeneSys Profiler.
Throughout the program, participants will need to demonstrate competency in the above areas in order to become an accredited GeneSys user. This course is best suited to human resource managers and specialists, consultants, senior and line managers.

Details of the next GeneSys Accreditation Program to be conducted in Victoria are as follows:

Dates: Wed 18th, Thur 19th, Fri 20th February & Fri 12th March 2004
Time: 9:00am - 5:00pm each day
Cost: $2640, this includes a 4 day workshop with full catering plus Accreditation, Technical & Software User Manuals

For further information please contact Sue Mounsey or Liz Neilson at Barrett Consulting Group on (03) 9532 7677.

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Our Values in more depth.
Our Values Banner

  • Be passionate and courageous about what we do
  • Keep a firm eye on the bottom line
  • Be disciplined in thought and action
  • Be committed to our firm's business success
  • Explore ideas, be innovative and create practical real solutions
  • Develop healthy, productive relationships with co-workers and clients
  • Let others know about our firm
  • Take responsibility and ownership for our work
  • See our work as part of a holistic environment
  • See the link between our job, our clients' and our organisation's success
  • Help set and implement organisational goals
  • Take personal responsibility for client service

All Companies have a culture, some companies have discipline, but few companies have a culture of discipline. When you have disciplined people you don't need hierarchy. When you have disciplined thought you don't need bureaucracy. When you have displined action, you don't need excessive controls. When you combine a culture of discipline with an ethic of entrepreneurship you get a magical alchemy of great performance.

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Greatness is a matter of conscious choice, Barrett Consulting Group.
Greatness is a matter of conscious choice.
 
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