Friday, February 25, 2011

Doing your brother’s dishes

The principles of the office kitchen are well-known:
  • Don’t eat other people’s food.
  • Clean up after yourself.
  • When you take the last cup of coffee, make another pot.

Michal Zacharzewski | stock.xchng
They are also widely violated. Someone working late will “borrow” a sandwich or soda to get through the evening. Someone late for a meeting will leave dirty dishes in the sink. And someone who thinks she’s the only one who could possibly be drinking coffee at this time of the afternoon will leave an empty pot for that fella who’s working late.

Any time one of these things happens, it spurs a round of grousing and, often, a terse e-mail from the human resources department about respecting the kitchen rules.

But a servant mindset allows us to take things to another level.

What if, upon finding our soda missing, we said a prayer for the one who was so desperate (or absent-minded) to have taken it?

What if, on finding dirty dishes in the sink, we were to wash and dry them so the owner finds them clean on his return?

What if, when two cups of coffee are left in a 12-cup pot, you put in enough grounds and water for 10 cups? (Or, if it’s really late in the afternoon, just 4 or 5 cups.)

Jesus was called to serve, and so are we. It's tempting to vent our anger when someone violates the kitchen rules. But preserving relationships with our co-workers is more important than venting anger, which does not bring about the righteous life God desires (James 1:20). A servantlike approach redirects our anger into service for others. And that, in the long run, is much more satisfying.

Saturday, February 19, 2011

Four ways to accelerate cash flow

© Okea - Fotolia.com
"Traditional methods to increase cash flow are not working," said Lisa Anderson, founder and president of LMA Consulting Group Inc. "When customers demand increased service and value, innovative strategies are required to succeed."

There are countless ways entrepreneurs can increase cash flow through supply chain improvements, but it's important to prioritize in a way that will drive results. "Resources are lean, so it’s vital to focus on what provides the best return on investment," said Anderson.

Here are a few strategies she says drive the bulk of results:

1. Inventory management

Anderson said the key is not only to reduce inventory but to do it while improving customer service. Otherwise, you lose valued customers. Each company requires a different approach, but, said Anderson, "After reducing inventory levels 40 percent or more in multiple companies in various industries, I've found that big picture areas were identical: people, processes, and systems."

2. Supply chain collaboration

Anderson shares some collaboration case studies: “We implemented vendor-managed inventory with a key customer, improving not only our cash flow but also the customer's. In another example, we partnered with suppliers and customers to develop innovative product and packaging that reduced cost -- increasing cash flow -- and improved performance. Lastly, we partnered with key customers and carriers to develop a transportation model that reduced freight costs -- increasing cash flow -- while improving service."

3. Know when to fire a client

Not all customers are good customers. "Negative profitability customers should be reviewed in detail. Is there a compelling strategy to keep them? Focus efforts on profitable customers," said Anderson. Similarly, if a few customers are tying up significant amounts of cash, try to improve the relationships.

4. Cost cutting isn’t everything

Even Anderson admits that cost reduction can’t be the sole focus in improving cash flow. “If you spent the same amount of time and energy on increasing revenue, you could be one of the companies to leapfrog the competition in the new normal."

Do you have expert advice to share? E-mail Kristen.

Friday, February 11, 2011

How I learned to stop working

A counselor once taught me three important things.

Photo by magurka | stock.xchng
Stop multitasking. It doesn’t help.

Many studies back her up in this, and it’s a frequent subject of time management and productivity articles like this one: “10 Ways to Multitask Better,” which is really about how to not multitask.

When we try to do several things at once, we just wind up doing them all poorly and taking more time than if we had done each in turn. Now, this does not stop me from tossing a load of clothes in the dryer before I sit down to write this. But instead of jumping up in the middle of my writing to see if the shirts are ready to hang, I will finish this first. Then I will get the shirts from the dryer and hope I don’t have to iron them.

Moving other things to the back burner -- especially if you’ve written them down so as not to forget -- lets you focus on the one thing that needs doing right now. And focus improves results.

Spend the last half-hour before bedtime doing something relaxing.

The counselor pinpointed my insomnia as the result of going full tilt until well after the last minute. Work a day job, come home, wash a load of clothes, cook the dinner, pay the bills, edit something, put a load of clothes in the dryer, write write write until my husband says “isn’t it bedtime?” and then remember the laundry and go hang it up.

Then I would go to bed with all the undone items on my to-do list banging around in my head, and wonder why I couldn’t sleep.

My counselor advised taking a half-hour to wind down. Have a cup of tea, read a book, knit -- OK, she didn’t say knit, but that’s what I do. It relaxes me. To make myself feel better about it, I include my knitting projects on my to-do list.

Some people call this building in margin. I call it Rest. Just as we need a Sabbath day once a week, I think we need some Sabbath time at the beginning and end of each day to Be Still. It has made my life slightly less stressful, and improved my sleep tremendously.

The third thing I learned from her: It’s not a disaster if the laundry doesn’t get done.

Friday, February 4, 2011

When to pay bonuses despite posting a loss

One of the many great things in Kris DenBesten's book SHINE is the account of how he surprised his employees one year by giving bonuses even though the company had posted a loss.

I thought of that this week because of two very different news stories. First, my colleague Adam O'Daniel at the Charlotte Business Journal reported that Bank of America's board awarded its CEO, Brian Moynihan, a $9 million stock bonus, even though the bank posted a $3.2 billion loss for 2010.


Then, Bloomberg reported that Lockheed Martin's CEO, Robert J. Stevens, asked the board to keep his pay where it's been for three years. The company won't award raises to any executives at the level of vice president and above, because although it did have a profit last year, the profit margin was too narrow.

Lockheed Martin's bonus policy "accounts for individual performance and the performance of the company, or business unit."

Lockheed Martin's policy makes sense. I, too, work for a company where bonuses are not issued unless financial goals are met. And BofA? What a crock. How do you award a bonus when there's a loss? If there's no profit, there can be no bonuses.

Then I remembered SHINE.

Mind you, there's a big difference between DenBesten's company and Bank of America, and it doesn't only have to do with how many digits follow the dollar sign.

BofA paid its executive bonuses because, as we have seen so often lately, that's just what banks customarily do. In the world of high finance, you don't withhold an executive's raise or bonus. It's part of that culture. Defense contractors and newspapers have a different culture.

And so, I think, do equipment companies.

When DenBesten handed out those bonuses, he was acting on his own principle of serving others. It's exactly the kind of radical step of faith we're called to take, especially when times are tough.