Knowledge Center

How to Tell the Difference and What to Do About It

By Andrew Pfeiffer, Project Director

Why do so many businesses struggle with accountability?

If you’ve ever found yourself saying, “I just can’t find good people,” you’re not alone. It’s one of the most common frustrations across industries.

But what if the real problem isn’t the person? What if it’s the process? Imagine the relief of finding a solution to this common frustration.

When businesses experience inconsistent performance, it usually comes down to two things:

1. People don’t know what’s expected of them (expectation gap)
2. Or they know but aren’t doing it (execution gap)

Either way, the result is the same: frustration, inefficiency, and lost revenue.

So, How Can You Tell If It’s a People Problem Or a Process Problem?

Start with these questions:

• Is the role defined in writing, or is it just understood?
• Has the person been trained recently, or have they been thrown in and expected to figure it out on their own?
• Do they know how their performance is measured?
• Do they have the right tools and support to do the job?
• Are others on the team consistently completing the same task?

If the answer to any of these is no, chances are, you’ve got a process issue. If everything checks out but the performance is still off, then it’s likely a people issue.

Real-World Example

I worked with a business where the operations leader was frustrated with the scheduling function. Jobs were being missed, clients were calling in angry, and field crews were idle at the wrong times.

It appeared to be a performance issue, but a closer look revealed there was no clearly defined process in place. There was no checklist outlining what needed to happen each day, limited training on the scheduling system, and constant interruptions that made focused time nearly impossible.

Once the process was clarified and documented, including a checklist, time blocks for uninterrupted scheduling, and training on the tools involved, performance improved within two weeks. This reinforced the fact that the issue was not about personal capability. It was about the absence of a well-defined, structured process.

People vs. Process: A Simple Breakdown

Here are some common symptoms and how they usually indicate whether you’re facing a process issue or a people issue:

• If you see inconsistent results across your entire team, it’s likely a process issue. When only one person is underperforming while others succeed, it may indicate a people issue.
• If there is no documentation or training, that’s almost always a process problem. People can’t succeed with unclear or missing instructions.
• When the right tools or systems are missing, that reflects a failure in the process, not in the person using them.
• On the other hand, if everything is clearly defined, documented, and available, but performance still falls short, that usually signals a people issue.

Use these observations as a guide when diagnosing problems within your business. Remember, the ability to diagnose and analyze is the first step towards a solution.

Fix the Process First

You can’t expect consistent results when expectations are vague or undocumented. Before jumping to conclusions about performance, take a hard look at the systems in place.

This is where Cogent’s 4 Pillars come in. They help anchor the foundation of any business:

1. Business Development: Are roles supporting the direction you’re trying to grow in, or are people stuck doing whatever comes up?
2. People: Are responsibilities clear, and does the team know who owns what?
3. Measurement: Can you tell, at a glance, if something is working or not?
4. Operations: Are your processes documented, or are they reliant on memory and habit?

Once those are in motion, I use what I call the 5 E’s Framework to drill in further and figure out what’s missing:

1. Experience: What’s it like to work in that role day-to-day? Is the setup helping or hindering?
2. Expectations: Have you clearly communicated what “done right” looks like?
3. Execution: Are people following the plan, or is it just a suggestion?
4. Education: Has the team been trained, or are they winging it?
5. Empowerment: Does each person feel confident making decisions, or are they stuck waiting for permission?

You don’t need perfection, but you do need clarity, consistency, and a plan that people can follow.

When It’s a People Problem

Once systems are sound and performance still doesn’t align, the conversation shifts.

Steps to take:

1. Have a direct, coaching-focused conversation
2. Reset clear expectations and timelines
3. Provide short-term accountability and follow-ups
4. If improvement does not follow, it may be time for a change

Avoiding this step has a cost. Clarity and courage are essential for leaders.

Why This Distinction Matters

Too often, leaders focus on the individual rather than the system as a whole. Or they keep tweaking the process while ignoring performance problems.

Using Cogent’s 4 Pillars provides a full-business perspective. Pairing that with the 5 E’s Framework helps structure conversations and decisions around people and performance.

Next Steps: What You Can Do Today

If it’s a process issue:

1. Review the full process map to identify where the breakdown is happening
2. Look for missing steps, unclear handoffs, or assumptions that no longer fit
3. Clarify expectations and streamline where possible
4. Create a checklist or job aid based on the revised process
5. Retrain using examples grounded in actual day-to-day work
6. Ensure that tools, systems, and responsibilities support the process in the future

If it’s a people issue:

1. Reset expectations and timelines
2. Coach actively
3. Track progress and take action if needed
4. Use Cogent’s 4 Pillars and 5 E’s Framework to evaluate all future performance issues

Reinforce with Documentation

Even when the correct process is identified, clarity only lasts if it is documented and accessible. Leaders often assume that saying something once means it’s understood. In reality, documentation protects the business from miscommunication, turnover, and dependency on memory.

When creating or updating processes:

• Write them in a checklist or step-by-step format
• Make them easy to find and reference
• Review and update them regularly based on team feedback and results

Strong documentation turns clarity into consistency, and consistency is what scales.

Final Thoughts

Accountability without clarity creates chaos. Empowerment without structure creates drift. When roles, systems, and expectations are aligned, accountability becomes a shared standard.

Start with the process. Then develop the people. That’s how long-term change takes root.

Introduction

By Paul Sandberg, Project Director

In project-based manufacturing, accurately matching revenue and expenses within the same accounting period is crucial for financial accuracy. The percent of completion (POC) method provides a structured way to recognize revenue and expenses in alignment with a project’s progress. This article explores how a fictitious manufacturing company, Proactive Custom Manufacturing (PCM), can implement the POC method, account for upfront deposits, and manage revenue recognition effectively over long-term projects.

The Challenges of Revenue Recognition in Manufacturing

PCM specializes in producing high-end custom components for industrial clients. Their projects often span six months or more, with payments structured as upfront deposits, progress payments, and final payments.  If PCM were to recognize revenue only when payments were received, its financial statements would be misleading—showing spikes in revenue during payment months and underreporting during production months.

By applying the POC method, PCM can:

1. Accurately match revenue and expenses.
2. Provide a realistic view of financial performance.
3. Comply with accounting standards such as GAAP and IFRS.

Example cash basis Income Statement:

Month 1: receive $50,000 deposit
Month 2: expense $250,000
Month 3: expense $250,000, invoice $200,000 progress payment
Month 4: invoice final $750,000 invoice

Step 1: Accounting for Upfront Deposits

When PCM receives an upfront deposit from a client, it should not immediately record it as revenue. Instead, the deposit should be placed into a Revenue Billed Not Earned account, which is a liability on the balance sheet. This ensures that revenue is recognized in proportion to the project’s completion.

Journal Entry for Upfront Deposit:

This entry reflects that while cash has been received, the work has not yet been performed.

Step 2: Recognizing Revenue Using the Percent of Completion Method

PCM determines project completion percentage by comparing actual costs incurred to total estimated costs. If a project is estimated to cost $500,000 and PCM has incurred $250,000 in costs, the project is 50% complete.
If the total contract value is $1,000,000, the revenue to recognize is: 50% of $1,000,000 = $500,000
PCM must move a portion of the Revenue Billed Not Earned into a recognized revenue account.

Journal Entry for Recognized Revenue:

This aligns revenue recognition with project progress.

Step 3: Accounting for Work Performed but Not Yet Billed

If PCM has completed 50% of a project but has only billed 40% of the contract, there is an additional 10% of revenue that has been earned but not yet invoiced. This is recorded in a Revenue Earned Not Billed account (an asset on the balance sheet), ensuring that revenue is recognized even if billing lags behind work progress.

Journal Entry for Revenue Earned But Not Yet Billed:

This entry ensures that PCM recognizes revenue in line with project progress rather than billing milestones.

Step 4: Managing Progress Payments and Final Payments

Throughout the project, PCM may issue progress invoices based on the contract terms. When a progress payment is received, PCM records it as follows:

Journal Entry for Progress Payment:

When the project reaches completion and the final invoice is sent, PCM adjusts the remaining balances, moving any unbilled revenue into accounts receivable and ensuring that all revenue has been recognized.

Step 5: Closing the Project

Once PCM completes the project and receives the final payment, the balance sheet should reflect that:

• Revenue Billed Not Earned has been fully transferred to revenue.
• Revenue Earned Not Billed has been moved to accounts receivable and subsequently collected.
• Expenses have been fully accounted for and match the recognized revenue proportionally.

Example true Accrual Percent of Completion Income Statement

Conclusion

The percent of completion method provides PCM with a robust framework to align revenue recognition with project progress. By properly handling upfront deposits, progress payments, and earned-but-unbilled revenue, PCM ensures that financial reporting reflects the true state of operations. This method not only enhances financial transparency but also supports better decision-making for project managers and stakeholders.

By Paul Sandberg, Project Director

If you have a construction or contracting business you may be able to increase employee productivity – and by extension gross margins, by implementing project management processes taken from the lean construction movement. Companies often report 30% improvement in employee productivity by applying these principles.

At the heart of Lean planning is the idea of making reliable commitments and continuously measuring your performance against those commitments. Let’s explore how you can apply this through a three-tiered planning framework and use KPI metrics like PPC, RNC, and APLR to drive better performance on your projects.

The Lean Planning Framework

1. Master Project Schedule (MPS)

The Master Project Schedule gives you the big-picture roadmap. Created during the preconstruction phase, it outlines major milestones, sequencing, and key deadlines.

The MPS is not meant to be a detailed plan for the project. You will develop increasingly detailed plans as the time horizon gets closer. The key here is don’t invest more time than necessary to get

Benefits:

• Aligns all teams around shared milestones
• Provides a strategic view of long-term goals
• Highlights potential bottlenecks early
• Provides insights on when resources will be required

2. 5-Week Look-Ahead Plan

Think of this as your tactical lens. The 5-week look-ahead plan translates the master schedule into an actionable window of upcoming work.

Each week, the team reviews what’s coming in the next five weeks and checks for constraints: Are designs complete? Are materials on-site? Are crews available? The project manager role is accountable for maintaining the 5-Week Look-Ahead Plan.

Why it matters:

• Removes roadblocks before they cause delays
• Encourages proactive coordination
• Reduces rework and last-minute scrambles

3. Weekly Work Plan (WWP)

This is where promises are made—and kept. The WWP is created during short weekly meetings with field leaders, who commit to specific tasks based on actual readiness.

Unlike traditional schedules, this is commitment-based planning—only plan what you can realistically get done (note: this is not a plan for what you are working on, it is a plan for what you expect to complete 100%). The supervisor role is accountable for creating and updating the weekly work plan

Best practices:

• Plan based on real conditions, not wishful thinking
• Only plan for what you are confident you can complete
• Review performance from the prior week
• Use daily huddles to stay aligned

Using KPIs to Drive Continuous Improvement

Planning is only half the battle. To truly improve, you need to measure performance. That’s where Lean KPIs come in. These three are especially effective:

1. Percent Planned Complete (PPC)

Formula: PPC = (Completed Promises / Total Promises) × 100

PPC tells you how reliable your plans are. If you committed to 20 tasks and completed 15, your PPC is 75%. The goal is to make and keep commitments, not just fill out a schedule.

How to use PPC:

• Track it weekly and share results with the team
• Look for trends, not just one-off dips
• Use it to promote accountability and build trust

2. Reasons for Non-Conformance (RNC)

When work doesn’t get done as planned, why? That’s what RNC tracking is for. Instead of pointing fingers, it helps teams identify systemic issues—like late materials, incomplete designs, or missing tools.

Tip: Categorize reasons (design, supply, weather, manpower, etc.) to spot patterns. Then fix the root causes, not just the symptoms.

3. Actual to Planned Labor Ratio (APLR)

Formula: APLR = Actual Labor Hours / Planned Labor Hours

If you planned for 80 labor hours and used 100, your APLR is 1.25—meaning your plan underestimated the effort. A consistently high APLR points to productivity issues or planning inaccuracies.

Use APLR to:

• Forecast labor needs more accurately
• Benchmark trade performance
• Understand which tasks routinely blow their labor budgets

Wrapping It Up: Lean Is a Culture, Not Just a Schedule

When you combine the Master Schedule, Look-Ahead Plans, and Weekly Work Plans with smart KPIs like PPC, RNC, and APLR, you build more than just efficient workflows—you create a culture of reliability and accountability.

This Lean planning system:

• Encourages proactive communication Reduces waste and delays
• Makes performance transparent Builds trust through accountability
• In short, it makes your team better—week after week, which improves productivity and profitability in your business.

Cultivating a quality-centric culture is like planting seeds of success throughout your organization. Just as a single seed can blossom into a flourishing garden, inspiring a commitment to quality has the power to foster continuing success. So, what are the most effective ways to plant these seeds of success? How do we water the seeds properly to get the lasting results all business owners want? In this article we will explore some techniques on how to accomplish this. 

Leading by Example  

The most common technique to cultivate a quality-centric culture is leading by example. For this technique to be effective, mindful leadership must set the tone for excellence and inspire teams to follow suit. Universal engagement throughout all levels of your company fosters ownership, accountability, and innovation beyond product delivery.  

Look internally for champions and train those champions as an investment. This in turn empowers employees to consistently deliver high-quality results, reinforced by a shift toward everyone’s responsibility in upholding quality. View mistakes as learning opportunities that fuel innovation within guidelines. Celebrate successes and continue to drive a customer-centric perspective. When your team can sustain quality through growth, it reinforces the long-term impact and loyalty bred by a quality-focused culture.  

Cross-functional quality culture enables quality practices to span across functions creating a holistic dedication to excellence. Fortify this commitment through data-driven decisions that target developments and promote transparency, accountability, and ongoing learning. Ideally, empowered problem solvers will lead the charge in proactively safeguarding excellence. Instilling quality-centric culture is about the intentionality behind empowering your team and aligning values with both your employees and customers.   

Supplier Partnerships 

The next way to cultivate a quality-centric culture is through supplier partnerships. Let’s imagine your company is called “Gadget Genius.” It’s a well-established company known for its innovative tech gadgets that have captivated the market. However, the company has been facing a persistent quality conundrum lately and needs a solution. Some of its products have been falling short of customer expectations due to inconsistencies in the components supplied by different vendors. After reading a witty article online, you, the owner, decide to embrace the strategy of supplier partnerships.  

You contact the suppliers and form the “League of Quality.” Together, you embark on a mission to ensure that every nut, bolt, and chip entering the Gadget Genius production line meets the highest quality standards. By uniting as a leadership team and aligning partners with their quality goals, Gadget Genius transforms its supply chain into a unified quality ecosystem. 

The most important part is to talk to your suppliers. Be open, honest, and clear about your expectations of quality. You can bargain with suppliers by ordering in bulk or calling upon your long history together to make deals happen. Sometimes calling in a third-party consultant to strengthen your supply chain partnerships is the best move. Talk more with your supplier’s leadership team and find out how they are truly doing to form a genuine partnership with them. Move away from a transactional partnership and move into a genuine partnership. 

Tracking Metrics that Matter 

Tracking metrics that matter is critical to cultivate a quality-centric culture. The critical component of this is “that matter.” Stop wasting your time if you’re tracking something that doesn’t link to your bottom line. Many small businesses barely track input/output metrics, and fewer companies track key performance indicators (KPIs) that link to their bottom line. Many companies also forget that rework, return rate, defect rate, and UX metrics also link to your bottom line.  

For example, Gadget Genius saw the importance of reducing its defect rate. They reduced it from 5% to 2%. With an annual production of 100,000 gadgets, this reduction meant avoiding 3,000 potential defects, translating into $150,000 in savings from reduced rework costs and warranty claims. Doing so bolstered the company’s net profit by 12%. The question is, how do we reduce the defect rate? This is where we land back at supplier relationships! 

Feedback Loops for a Problem-Solving Culture 

Embracing feedback loops and instilling a problem-solving culture in your business is the final technique to create a quality-centric culture. Quality is a mindset, and it doesn’t only apply to what your businesses sells, but to your employees, too. Ideas should be cascaded from ground-floor workers to leadership. In leadership, you need all the information about what is happening to make the best decision at the right time. Your employees know what is happening in real time.  

There are many ways to create feedback loops, but the goal is a communication channel for employees to voice concerns, share insights, and suggest improvements. Leadership must create constructive time to find champions of change and innovation with rewards and incentives. Where do you get the incentive money? It can come from the return on investment from the opportunities or problem costs found by the employees.  

For example, let’s say that an employee finds that if the assembly lines shift down vertically by 10 degrees, gravity will slide the boxes down the shoot 10% faster than before. Her line is the only line doing this, and her line has consistently kept up with the pace and has outperformed its competing lines by 10%, as she predicted it would. You verify it’s a safe option to make the adjustments, and now you have two more lines running at an additional 10% each. This translates into 100,000 more widgets a quarter, which is 400,000 more widgets annually, ultimately leading to $1.4 million in net profit. The math is hypothetical, but you would certainly have a few dollars to spare to compensate the employee for such a suggestion.  

This hypothetical revenue increase comes from intentionally creating an environment of feedback. If you praise the employee, you create a positive example and encourage behavior, leading others to follow suit. Each idea should be made known and heard and never shot down abrasively. You can learn tips to do this effectively in many different forums. The point is to be intentional and well-planned in your approach to feedback loops. 

Conclusion 

To conclude, cultivating a quality-centric culture is crucial to keeping your customers happy and loyal and ensuring your employees are seen and heard. A happy employee taking ownership and pride in their work is worth its weight in gold. Lead by example, foster genuine supplier partnerships, track metrics that matter, and implement feedback loops to cultivate a quality-centric culture in your business.  

Discover the keys to hiring and attracting the RIGHT employees 

Do you ever feel like you’re doing everything in your company? When you go home, are you able to leave work at work?  Has your family expressed concerns about your work-life balance? Let’s address the why behind these issues.  

Companies, regardless of size or industry, are always challenged with recruiting and hiring the right people. So, what does “right people” really mean? How do we identify it?  First, we must put the “human” back in Human Resources and the recruiting and interviewing process. In the world of AI, it’s easy for someone to build a stellar resume. When you call references, many will give you a glowing review of the candidate with little substance to back it up. Some former employers will only confirm dates of employment to avoid potential litigation.  For these reasons, don’t put too much stock in what you see on paper.   

Validating a resume is not effective and doesn’t give you any insight on the person you’re interviewing. Instead, ask open-ended questions that look beyond the resume. Use your knowledge of company culture to determine if the candidate is truly a good fit. Here are some examples of open-ended interview question starters: 

• “Tell me about a time when…” 

• “How would you handle…”  

• “What does your ideal work environment look like?” 

Second, you must stop looking for yourself in the candidates. Teams built on diversity in thought, personality traits, cultures, and experience levels have been shown to perform better. If you want to raise the bar for your company, you must have individuals surrounding you who feel safe and comfortable expressing their ideas and thoughts. This likely means leaning in to your own discomfort. In the world of recruiting and hiring the right people, leaders must get comfortable being uncomfortable! 

What qualities should we look for in candidates? Many leaders look for timeliness of arrival, appearance, first impressions of the handshake or smile, etc. While these are good indicators of the person’s attention to detail, planning, and personality, we need to dig deeper. Ask questions to see if the person has knowledge and passion about the role and its requirements. Ask questions to determine whether the person is a good fit for your culture. Determine if the candidate is coachable. Remember, it’s easier to teach skills than will. Your candidate must bring the will and right attitude to your organization.   

There must also be performance measurements when hiring the right people. When determining whether a candidate can be an asset to your team, consider the environment your candidate worked in previously. Your job during the interview is to decide whether the candidate can create the result for which you’re looking. If you are hiring for a critical leadership role, do not rush the process! Hiring the right person at this level has far-reaching financial implications.  

Third, you must learn to fail fast. If you’ve been in the people business long enough, you understand there is no such thing as perfect hiring. Realizing this, when you do hire a person that is not going to be successful in the role, do not hold onto to the individual in that role. Consider alternative roles if possible. However you handle it, make the move quickly. The longer you leave the wrong person in the role, the more setbacks your company will have to overcome.  

Fourth, remember that recruiting and hiring are not all about you and your company. Candidates that are truly interested in joining your organization have requirements of their own. If your desire is to build long-lasting and productive teams, you must find out your candidates’ requirements and determine if your organization’s culture can meet those requirements.  

During the interview, keep notes, but not on the resume! Take notes on a notepad, particularly about your observations.  Depending on the role, this information is important for future development needs. For example, how did your candidate respond to your questions (logically and timely). How was the body language when the candidate was asked more challenging questions? Did the candidate ask for clarification, if needed, or did they just respond with an answer? How well did the candidate use facial expressions and voice inflection to keep your attention?     

Finally, look at your employment ads. If your ads focus on the role and years of experience, you should revamp. Ads should reveal more about your company’s culture and what it’s like to work there. Be open and honest with the good, the bad, and the ugly. This transparency is important because it speaks to the right people who want to join your culture and organization.       

We often turn to conventional avenues when faced with increased volume or demand. We typically find some remote workers, Managed Services Providers, or temporary workers. While those methods are effective, it may be time to consider creative outsourcing strategies beyond the conventional. This article will explore unconventional approaches like task-specific partnerships, micro-task outsourcing, and freelancing platforms. These tactics can help you quickly scale without overwhelming your internal resources and smooth operations.  

Task-Specific Partnerships 

Let’s start with task-specific partnerships. Task-specific partnerships are acute relationships with external entities to address only a specific business need or project for which you don’t specialize or need additional capacity. Using expertise, resources, or capability to complete tasks more efficiently or reach a particular goal without committing to a long-term or comprehensive collaboration is essential.   

Let’s say you have a software development company. Your company is experiencing a sudden surge in demand for specific software applications. Due to a recent trend, the demand has spiked, and your team needs to meet the demand without compromising quality. You decide to enter a task-specific partnership with a specialized external firm. Their expertise in the required technology allows them to quickly build the software application, helping you meet the market demand and capitalize on the trend while maintaining your reputation for quality.  

Once the project is completed, the partnership ends. You return to your normal operations, as does your partner tech company. It’s a small commitment and a quick collaboration with a qualified company to reach a goal. In contrast to hiring temporary workers, online workers, or forming a permanent partnership, this can be a better solution when faced with increased volume.   

Micro-Task Outsourcing 

Now let’s look at micro-task outsourcing. Sometimes your capacity is stretched and delegating some simple tasks to someone else could free up internal capacity for core tasks. Micro-task outsourcing is giving those small talks to external individuals. It is often done through online platforms or gig economy services like Amazon Mechanical Turk or Clickworker. The tasks are usually short, well-defined, and able to be completed remotely.  

Micro-task outsourcing companies are a resource to consider. The platforms offer access to a diverse pool of skilled professionals. These professionals can be engaged on a project-by-project as needed, and your core employees remain consistent and utilized correctly. The traditional hiring process can be time-consuming and costly, but freelancing platforms allow businesses to hire freelancers quickly.  

Speed is crucial when there is an urgent need. Freelancers typically have specialized skills and expertise in various domains. You can leverage these skills to handle tasks or projects outside your current staff’s competencies. It’s a scalable solution because you can hire short-term or long-term employees as needed. Talent on freelancing sites is global. They enter these platforms from around the world and often provide a fresh perspective on the work. Outside of adjusting to your specific company, there is typically a significantly shorter training time, reducing the administrative burden. These platforms also handle administrative tasks, such as payment processing, contracts, and communication. This, in turn, frees up your administrative team to conduct their core activities and maximize their time.   

Case Study 

Let’s say you have a small e-commerce business called Dinosales and are experiencing a sudden surge in orders from the holiday season. To handle the increase in demand, you have decided to try out micro-task outsourcing. You choose a platform and post small tasks such as labeling and packaging the product, printing shipping labels, and organizing shipments. Two days later, you receive a list of registered independent workers who have picked up the tasks. They complete them remotely and returned the results to Dinosales. This allowed you to quickly scale up the order processing without fully hiring additional permanent staff. Once the holiday season ended and the order volume returned to normal, Dinosales no longer needed the micro-task outsourcing platform. It is the perfect temporary demand spike solution.   

Tips for Hiring Freelancers 

When hiring freelancers, here are a few suggestions to keep in mind:  

1. Be sure to have your project well defined so that the expectations are clear for the freelancer. 

1. Do your research and choose an outsourcing platform that meets your needs.  

1. Check the portfolios and reviews that your potential candidates prepare, as these provide great information about who they are, as well as their experience and skill level.  

1. Strong communication skills are needed to manage freelancing relationships, as freelancers are often global.  

1. Ask direct questions about the expertise of any potential freelancer. You will want to hear examples of similar work that they have done in the past. Talk about your budget and timeline for the project together with the freelancer. They must understand and have clear goals and deadlines.  

1. Above all else, spend time conducting virtual interviews. Words on paper are okay, but a video interview will teach you much more about them. It shows personality, indicators of work ethic, and can show commitment to your project.  

1. Consider testing freelancers with a smaller, less critical project to gain your trust and then move them on to something more significant once trust has been established.  

1. Make sure your freelancers are a cultural fit, especially if they will work with other people in your organization.  

When demand increases, use outsourcing platforms as they are flexible, affordable, and potentially a great way to find new permanent workers to aid in your company’s growth.  

Is your business suddenly booming? Do you need help keeping up with the demand? As your business experiences sudden growth, it’s important to know a few practical ways to manage increased workload and demand. In this article we’ll explore the concepts of workload automation, dynamic capacity planning, and on-demand staffing solutions. Learn how these strategies can help you maintain quality, meet deadlines, and satisfy your team and customers during high volume or unexpected growth periods. Applying the strategies in this article is like using a surge protector for your home office setup.  

Dynamic Capacity Planning  

Let’s examine dynamic capacity planning, a strategy for real-time resource allocation optimization. Businesses use this strategic process to optimize resource allocation and usage in real-time based on the company’s changing demands or conditions. It involves analyzing data and adjusting resources to be sure that the right amount of capacity is available to meet workload requirements. It’s an excellent way to avoid overprovisioning or underutilization of resources.  

Performing dynamic capacity planning properly results in cost savings, improved performance, and better responsiveness to changes in demand. It’s a lot like switching up your lineup in a football game. As the game progresses, some team members might be stronger than others for specific tasks, or perhaps your quarterback got injured. You want to swap a player out and put in a fresh one in real time. Look at your dynamic capacity plan like a call sheet for when players are tired or need to shuffle to finish the play. This type of planning leads us to workload automation technologies. 

Workload Automation Technologies 

Now that you have a dynamic capacity plan, it’s time to incorporate workload automation technologies. Let’s imagine that you run a manufacturing company called MachineWorks. It’s been operating at full throttle all season. You have already allocated all your resources to run the operation, and every gear in your warehouse is in motion. Suddenly, a massive order lands on your desk after a famous pop star endorses your product on television.  

A surge like this could quickly derail you if you didn’t have workload automation technology. Thankfully, you’ve kept your workload automation software up and running, and now you need to find some resources. So, you decide to run the automation. The software juggles resources, shifts priorities, and allocates tasks with precision. It redistributes tasks intelligently, preventing bottlenecks and keeping the production process flowing smoothly. Your workload automation has now turned your operational constraints into opportunities, and you can handle high-demand situations gracefully. Now your business is thriving and not just surviving. 

While this is an hypothetical example, workload automation software really can save you in a bind. Once set up properly, it is simply a software package that serves as automated workflow management. There are plenty of options out there that range from expensive to more expensive, but the return on investment is well worth it. Some popular workload automation options are IBM Workload Automation, BMC Control-M, Cisco Workload, and Microsoft System Center Orchestrator. Research them to determine which is the best fit for your company. What happens if after dynamic capacity planning and workload automation, you still need help finding more capacity or resources to allocate to the demand? Let’s explore on-demand staffing solutions.  

On-Demand Staffing Solutions  

With capacity stretched and a surge in demand, it’s good to have a secret weapon ready to save the day. This is where on-demand staffing solutions come into play. If you have a spike in demand at the same time year after year, it’s easy to anticipate when extra staffing will be needed. If not, it’s still good to have a working relationship with some on-demand staffing solution company. These companies offer flexible instant workforce solutions or, in more familiar terms, reinforcements when the battle is getting challenging.  

On-demand staffing solutions provide businesses with access to skilled and qualified workers when needed on-demand, enabling companies to quickly scale up or down based on fluctuations in demand. It’s a temporary or short-term staffing option allowing organizations like yours to address immediate staffing requirements without a long-term commitment. On-demand staffing solutions generally provide agility and cost-efficient pricing. It can take a little time to hash out the details of this arrangement, so it is best to have this conversation with the on-demand staffing company before the spike in demand comes. It can take weeks or months to do it right, so be preemptive about this strategy and work with the leadership team to iron out the details. 

Let’s look at a quick example: Amazon Fulfillment Centers. They hire temporary workers in peak seasons, and then when the season is over, they release the workers back to the agency they came from. Amazon does this in-house in some places, but they will often use the human resources of an on-demand staffing agency because it’s easier for the management team.  

Another organization that does this is the United States Postal Service. Many logistics companies go through this process around the holiday season, using on-demand staffing solutions just like the ones we are describing. The trick is to have these conversations early and have a working relationship with one before the floodgates start. 

Conclusion 

The key here is to implement these strategies before the surge comes. Build a working relationship with an on-demand staffing company so you have the resources you need when you need them. Resource reallocation is the swiftest way to free up resources and handle that new bid or order that just came in. When that’s not enough, it’s time to rely on your relationships with on-demand staffing companies.  

Time Management Tools (TMT) and Systems Operations form a dynamic partnership—a delicate dance between timing and operational workflow. While TMTs optimize individual and team productivity, Systems Operations streamline overall processes and resource allocation. When you put them together, they synergize data-driven precision and operational finesse to drive businesses to peak efficiency. By doing so, this marriage of efficiency can shape the path for strategic growth and maximizing net profit. This overview sounds a bit abstract; so let’s work through a few concepts with concrete examples.

Cohesive Workflow Integration 

Let’s start with Cohesive Workflow Integration, a term which refers to seamless process harmonization. Imagine your business is a symphony orchestra. Each department is an instrument playing a crucial role in your latest performance. Consider an e-commerce company as your orchestra, where inventory management, marketing, and customer service are the distinct sections. Next, let’s introduce the fictional time management tool, SyncCity, which acts as the conductor, confirming that every department plays in perfect harmony.  

 In the example of our e-commerce orchestra, SyncCity automates routine tasks like inventory restocking, ensuring replenished shelves as demand requires. This level of efficiency allows the marketing team to harmonize their campaigns. Now, inventory availability prevents stressful situations where demand exceeds supply. As a result, the business reaches a harmonious workflow. Each department plays its part immaculately, creating an orchestrated symphony of satisfied customers. It also gives your net profit a consistently repeatable, optimized, stable increase.
 Hypothetical examples aside, Cohesive Workflow Integration is about tasks working together in a well-timed, smooth way. Automation and workflow tools help teams work together, keeping things running smoothly, customers happy, and profits growing.
 

Strategic Bottleneck Identification (SBI) 

What about workflow obstacles? Strategic Bottleneck Identification (SBI) is about pinpointing workflow efficiency obstacles. Imagine that you own a company named HarmonyTech. You have an ambitious growth plan that is unfolding nicely, but an unexpected bottleneck arose during product development. The bottleneck is delaying new releases and slowing your team down. During your SBI process, you deploy new software called EffiSync. After analyzing the timing and workflow data, you find that the bottleneck originates from the communication gaps between design and manufacturing teams.  

 Armed with insight, you now leverage efficient time management techniques to implement a streamlined communication protocol. New product development accelerates by 15%, allowing your company to release more innovative solutions to the market much faster. With SBI, some bottlenecks are easy to spot, with pain points being the slowest part of your process. Other times, it is necessary to deploy technology to track, monitor, and analyze large amounts of data to pinpoint areas of concern.

The moral of this example is that TMTs working with your system operations can be a huge benefit if appropriately analyzed. The root of problems are not always readily visible to the naked eye, and technology mixed with proper metrics-capture can identify your business’s various needs. While EffiSync is an imaginary example, there are other tools you can find to do the same job of identifying bottlenecks in your business, including Tableau, Prometheus, Lean Six Sigma, Celonis, Minit, Power BI, and Sysdig. Research to determine which is the best fit for your company.

Holistic Resource Allocation 

Let’s discuss another strategy to blend Time Management and System Operations. This one is called Holistic Resource Allocation and refers to optimizing overall resource distribution. Underutilizing or overutilizing resources is costly, and correctly timing the use of the resource seamlessly with your operation is critical. Sticking with the orchestra example, let’s imagine you are gearing up for a bold season of performances this winter. As the conductor, the business owner, you have noticed that while your string section is soaring, the brass section is having difficulty keeping up due to resource imbalance.  

What do you do? Let’s imagine you introduce a hypothetical TMT called ResourceSync to ensure each musician’s time aligns with their skillset. Now through deep schedule and data analysis, the tool discovers a profound discrepancy between resource allocation and performance demands. With the approval of the leadership team, ResourceSync automatically prompts the operations team to reallocate skilled brass musicians to support the strings, bridging the resource gap. The orchestra is now playing in beautiful harmony, with each section functioning optimally and contributing to a season of magnificent performances. Your average performance grade went from 3 stars because of the imbalance of musicians to an all-around average of 5 stars due to well-rested and properly utilized musicians on each performance. In short, resources can burn out too quickly or be underutilized. Finding the proper utilization balance through measurement and timing can save your company money and increase performance or productivity. A system or tool to automate this or monitor utilization is a pro tip for any owner or manager. 

Conclusion 

In business life, it’s easy to be self-indulgent and read these insights like this without taking the leap to implement anything. Remember that knowledge without application is like sheet music untouched by skilled hands, worthless. The strategic dance between time management tools and system operations isn’t merely a theoretical spectacle; it’s a powerhouse duo ready to elevate your business. So, as the final curtain falls on these pages, don’t let it be a farewell but rather an overture to orchestrate real change in your business or management. The stage is set, and the baton is in your hand. Now let the music begin! 

Looking to diversify your talent pool? Identifying potential in diverse talent pools can be much easier if you try inclusive assessment techniques. So how do these techniques work, and what can they do for you? This article will explore the techniques and benefits of blind hiring, gamified assessments, and skills-based challenges. Learning these strategies helps eliminate biases, uncover hidden talents, and create a more equitable and innovative recruitment process.  

What Is an Inclusive Assessment? 

An inclusive assessment is an evaluation or measurement process designed to consider and accommodate a diverse range of individuals. It includes those with different backgrounds, abilities, and learning styles. It’s not a one-size-fits-all assessment where only one kind of learner or worker will flourish. These assessments aim to provide fair and unbiased evaluation opportunities that do not disadvantage any group and allow participants to effectively demonstrate their knowledge and skills. Inclusive assessments consider cultural differences, disabilities, language proficiency, and individual learning preferences. They are ideal for creating an equal opportunity to showcase a candidate’s abilities and accurately evaluate beyond their background or circumstances.  

 Inclusive assessments can open the talent pool and offer a different perspective on your candidates and how you think about your process. Thankfully you don’t have to spend much time and money developing your inclusive assessment; there are reputable companies that have already created them and offer metrics tracking. Pymetrics, Vervoe, InterviewBuddy, and Mercer Mettl are excellent examples. Do your research and see if any of these platforms are a good fit for your needs. Let’s delve into some fun strategies to diversify your talent pool and take an unbiased approach to your hiring process. 

Blind Hiring 

The practice of blind hiring reduces unconscious biases in the hiring process. The practice calls for the hiring team to conceal identifying information about each job applicant. These details include name, gender, age, race, ethnicity, and other personal characteristics that might lead to biases. The goal is to evaluate the candidate solely on skills, qualifications, and experience rather than being influenced by potential biases. This approach vastly improves workplace diversity, equity, and inclusion by solely evaluating the applicant’s merits. As you can imagine, it is an exciting process, and you will likely be surprised by the results. We all have unconscious bias; it’s human nature. But when hiring good talent, sometimes we must get out of our way for the sake of the company.  

Gamification  

Gamification has become increasingly popular in today’s digital age. Gamification of skill evaluation assessments offers a wide variety of ways for candidates to showcase their skills. Gamified assessments often measure cognitive abilities, problem-solving skills, and situational judgment rather than just resumes and qualifications. Without being hindered by past experiences or credentials, these gamified evaluations can show potential for growth and the ability to learn. Gamification is particularly beneficial if your business incorporates a training process before the candidate gets to work. It also eliminates bias by removing unfair advantages. Everyone is taking the same test with the same criteria, minimizing the impact of unconscious biases or experiences. You can find gamification assessments at many of the same companies listed previously. 

Skills-Based Challenges 

After you have sourced your last round of candidates, conducting a skills-based challenge can weed out the fake from the real. Skills-based challenges are practical skill assessments. These assessments allow you to evaluate whether a candidate can do what they say. For example, suppose a software development company is hiring a programmer. In that case, they might provide candidates with a coding challenge where they write a piece of code to solve a specific problem. To the same effect, a graphic design company could ask candidates to create a design mockup based on a given brief. These challenges evaluate the candidate’s proficiency in a practical and hands-on way, giving employers a more accurate assessment of their abilities. If you can have candidates complete these assessments “blind,” with no personal identifiers, it is even better. 

Conclusion 

Inclusive assessments are becoming increasingly common. If it’s not in your budget to pay for assessment or gamification, at least adopt the blind hiring and skills-based challenge methodologies. These both are keys to a successful, inclusive, strategic hiring process with long-standing results.  

Can’t seem to find those diamonds in the rough? Is your job posting too much of a specialized position to find a decent pool of candidates to hire? Perhaps it’s time to learn about the art of “niche sourcing.” Niche sourcing can help you uncover those exceptional candidates all business owners want to hire and retain.

What is niche sourcing? Why is it important? How does it work? This article delves into sources like industry-specific forums, online communities, and skill-focused platforms. You’ll learn how tapping into these niche sources can connect you with highly skilled professionals who might not actively seek job opportunities but are open to the right offer. Some stellar candidates are waiting for the right opportunity to fall into their lap. You must know how to find them.

Foundations of Niche Sourcing

Let’s start with some foundational pieces for better understanding. Niche sourcing, as you may have guessed, is targeted, specialized talent acquisition. It’s not your usual job board, Indeed, or Zip Recruiter situation. Many employers rely on platforms like these because that’s all they know. Often, small businesses have someone running their HR department, but it could just be a family member that is familiar enough to handle the burden. Finding excellent HR help is challenging when running a small business and is often only achieved by working with a recruiting firm. The niche sourcing suggestions below are designed to help any employer looking for candidates beyond the Zip Recruiter realm.

Industry-Specific Forums

Industry-specific forums are our first stop on this niche sourcing train. Forums attract professionals and enthusiasts from specific industries. Posting job openings on relevant forums ensures your vacancy is seen by people with relevant skills and interests. These forums allow you to connect directly with potential candidates, share insights, and build relationships authentically, making identifying potential candidates easier. Another benefit of industry-specific forum sourcing is that it provides you an opportunity to showcase your company culture. Sharing relevant content can give potential candidates a glimpse into a day in the life at your company. It can attract candidates that align directly with your values.

In these forums, people often showcase their skills and expertise through contributions. You can review their posts and interactions and gain insight into their knowledge and abilities before contacting them. Finding those individuals with niche skill sets on these forums is possible. Some who engage with forums have had a nontraditional career path that has led them to what they currently do. They find community in the forums and showcase their skills in unique ways. It is crucial to find that diamond in the rough that may not have had a traditional career path.

In most forums, you can directly interact with participants, which creates ample opportunities to reach out and build a relationship with a candidate. If you are lucky, some forums even have engagement metrics displaying the user’s engagement. These metrics can show things like their activity level and the quality of their contributions. All these metrics can help you identify knowledgeable members. Forums are plenteous across all kinds of industries. For tech, you have Hacker News and Stack Overflow. For marketing and advertising, you have Reddit Advertising and Warrior Forum. For finance and investment, there is The Wall Street Oasis and Bogleheads. The list goes on and on for almost all industries and niches. Research potential forums and start connecting with potential candidates.

Online Communities

Similar to forums, there are online communities. Online communities differ from forums as they are generally smaller and often have more rules for engagement with their members. Online communities are usually more personal than forums; people identify more with their smaller community than the massive forums. Be careful with your approach and be sure you want to be a member of a community or forum before joining. A good rule of thumb is that you must first give to receive. Be patient and respectful, and your time will come to find the perfect candidate.

Reddit, Github, DeviantArt, NurseGrid, Spiceworks, and Linkedin Groups are all examples of communities. If you notice, some of these were mentioned as forums as well. Many of these platforms serve as both, so be sure you are ready to be a part of the community as a contributing member and commit to a comfortable level of involvement and engagement. Remember, engagement metrics are also captured for your user account, so other members (potential candidates) can see and make assumptions about you.

Skill-Focused Platforms

The last niche sourcing recommendation is skill-focused platforms. Unlike forums and online communities, skill-focused platforms are designed to connect individuals with specific skills to job opportunities, projects, or learning resources. These platforms are usually tailored to facilitate direct interactions between skilled professionals and those seeking expertise. Upwork, Fiverr, Linkedin, Behance, Dribbble, Toptal, Coursera, and Udacity are all examples of skill-focused platforms that can be useful for niche sourcing.

Many skill-focused platforms have employer and job-seeker logins to create an environment of professional interaction directly. Maintaining utmost professionalism while highlighting your company culture is imperative. On sites like Upwork, potential candidates can see how long you have been on the platform, how many jobs you have posted, your reviews, and how much you have paid out, among other things. So, play nice and start small. Many employers on these platforms initially hire candidates for part-time jobs or temporary work to see if the candidate is a good fit long term. The critical piece of this is to enter as a real person, be professional, and build genuine relationships with the platform’s community.

Conclusion

Don’t go straight to a staffing or recruitment firm when you need niched or skilled labor. There are numerous options that are free to use and are sometimes better for building long-lasting relationships with your candidates and the communities you enter. Learning about these forums, online communities, and skill-focused platforms is an important recruitment strategy. Start exploring some niche sourcing options, don’t let yourself get overwhelmed, and find those great candidates you’ve been seeking. great.

You Should Get Certified! 

These are words many businesses owned by women hear at some point or another. But is it true?  

The answer is, maybe. Getting certified as a Women Business Enterprise (WBE) or Woman-Owned Small Business (WOSB) takes time and concentrated effort and can result in substantial growth for your company. But it will not, on its own, result in contracts.  

Think of getting certified as a “license to hunt”. The success of that hunt, and deciding whether it is right for you and your company depends on a number of factors:  

• Are you eligible?  
• What does your company sell? 
• Which certification program(s) should you choose? 
• Approximately what percentage of small companies in your industry are woman- or minority-owned? 
• Who are your current customers? Are they from private industry or government? 
• Can you demonstrate successful past performance, either in the public or private sector? 
• Do your target corporate clients have an active supplier diversity program? 
• Are you equipped (in terms of capacity and financial strength) to take on larger contracts?  
• Do you have adequate staff and support with the skills to research opportunities and write proposals? 
• Are you prepared for the fact that it is likely to take 90 days or more to get certified and another 6-8 months before landing a contract?  

You will need to develop a proactive strategy to go after the work. This takes time, effort, dedication, and commitment. That said, the decision to become certified can open large and potentially lucrative opportunities that could enable your company to grow rapidly. 

The Basics: Eligibility 

Certification is a complex topic and you’ll find it uses a lot of acronyms. At a glance: 

Other certifications are also available for companies owned and controlled by veterans and minorities. Your company may qualify for more than one. 

Understanding Supplier Diversity 

Supplier diversity is an industry approach that has grown in prominence over the past decade or so. Many large corporations and government entities proactively seek to procure goods and services from underserved small businesses, including those owned by women, people of color, veterans, those with disabilities, or any other underserved population.  

Many corporations have quotas to ensure a percentage of their contracts go to diverse companies and may even designate a certain percentage of contracts be “set aside” for women- or minority-owned small businesses. Getting certified as a WBE and/or WOSB can increase your chances of landing that business.  

Explore Your Options 

There are several certifications available. Depending on your company’s target audience and business development goals, you may need to get more than one.  

Federal government WOSB certification is handled through the U.S. Small Business Administration (SBA), which offers a wealth of information on its website: SBA.gov/WOSB. Businesses can apply for certification at no charge at wosb.certify.sba.gov. However, this process is time-consuming, there is no live support, and applications are often rejected for technicalities.   

The SBA will accept reciprocal certifications, some of which are also used by private industry. They include: 

• WBENC (Women’s Business Enterprise National Council, pronounced “we-bank”) not only offers a certification widely accepted by private corporations and the SBA, but it also offers regional and national events where certified businesses can meet with buyers and attend educational sessions on growing their business. There is an annual fee to be certified, based on business annual revenue. You will have the option to obtain a WOSB certification from the federal government at the same time you apply for the WBE certification.  
•  NWBOC (National Women Business Owners Corporation) offers third-party certification for women, veterans, and minorities for an annual fee. All application information and documents needed are listed in the NWBOC’s application form, which is available on its website. The NWBOC also offer the option for potential WOSBs and EDWOSBs to purchase a tailored application kit to guide applicants through the process of applying. The fee to apply for certification is $400 at a minimum, and an applicant may be charged more if requests for more information are not met in a timely fashion.  
• USWCC (U.S. Women’s Chamber of Commerce) offers an online-only application process for WOSB and EDWOSB third-party certification to both its members and non-members. Certification takes between 15-30 days and costs $275 for Business and Supplier members and $350 for non-members. The entire application and document submission is completed online, so it is virtually impossible to get a live person to assist. The USWCC requires the application be completed in one sitting—it cannot be completed partially and saved to be completed later. This means that the applicant should be completely ready to apply prior to starting, or risk getting almost done, being interrupted, and then having to restart from the beginning. 

While some of the certifications outlined above are accepted by some states, some states and city governments have their own certification requirements.  

Where to Begin? 

Determine your target market and competitive landscape. 

• If you’ve never worked on a government contract before, it may make sense to expand your corporate business first. If you’ve only performed work for federal, state, or local government, consider expanding your reach in that sector with existing clients before breaking into private sector work.  
• Are you in a field where women do not traditionally own businesses? For example, many marketing communications companies are women-owned. While certification can still be a good business growth strategy, keep in mind you’ll be competing with a large number of competitors who may have more extensive past experience with large corporations and government entities.  

On the other hand, few construction companies, IT firms, and software development companies are women-owned. Corporations, federal and state governments have a hard time finding qualified WBEs and WOSBs with the necessary experience and capacity to meet their needs in these areas. That creates an opportunity to quickly win contracts with these customers. 

Even if you’re in an industry where women predominate, do not be discouraged from becoming certified. While it may be more challenging to land a contract quickly, you can certainly do so with a well-considered outreach and marketing strategy. 

Determine whether you have the capacity and financial resources to handle large contracts. 

Many corporate and government contracts require vendors to hire a qualified team and begin work immediately while waiting several months before invoices are paid. Large corporations often have extended payment terms, such as 45, 60, or even 90 days. Do you have the resources, either in cash or access to a line of credit, to carry your operating expenses during that time? 

Do you have adequate staff, or access to skilled contractors willing to commit to the duration of a contract, to complete the work if you win a large contract? 

Also evaluate your back-office operations. Do you have the resources (staff and software) to properly run a project, including required updates, invoicing, time tracking, and the many details required by corporations and government?  

Who are your current customers?

If you are already doing business with a large corporation or government entity due to past employment or through your personal network, becoming certified is an ideal opportunity to extend that relationship. Contact the company or government entity’s procurement or supply diversity office to discuss. 

Consider subcontracting opportunities. 

If you realize your company is not yet ready to handle a large contract on your own, subcontracting your services to a larger business is an ideal way to gain new business, learn more about working on larger contracts, and expand your reach. Many large government contractors have supplier diversity goals, purchasing agents focused on those goals, and are actively looking for certified vendors.  

What Exactly Will Be Evaluated? 

Remember that the purpose of certification is to confirm that women are the majority owner(s) and are actively involved in running the company. Certifying entities are not evaluating the financial health of your business. For many of them, there are no requirements to demonstrate profitability or even that your company has a current list of customers. Their sole purpose is to establish that your company has been properly set up, is paying taxes, has a process to track basic accounting documents (such as income statements and balance sheets), and that there are not non-qualifying people controlling the company in the background.  

A few examples: 

A construction company that has been in business for 20 years, with one owner who runs the company as President. He decides to appoint his wife, a retired schoolteacher, as CEO so he can be certified as a woman-owned business to win more government contracts. The wife has no industry expertise in construction and according to the company’s bylaws, the position of CEO does not have the authority to overrule the President. This company would not meet the standards of being a woman-owned business. 

A woman with 10 years’ experience purchases 100% ownership from an established company, owned for the past 20 years by one man. Once the sale is completed, the previous owner retires with no ownership stake or involvement in the company. The new owner owns 90% of the company and runs the company with a male Chief Operating Officer who owns 10%. As outlined in the company bylaws, key decisions are decided by most shareholders. Since the woman owns 90% of the company, this company does meet the standards. 

A husband and wife start a new business where the wife owns 51% and the husband owns 49%. Both have industry experience and expertise. The company has been in business for a year but is not showing a profit. The wife is the CEO, determining company strategy and business development. The husband is President and runs the day-to-day operations. Because the company bylaws stipulate that the CEO has the power to overrule and remove the President, this company meets the standards. (If the bylaws did not include this stipulation the company would not likely qualify.) 

The Importance of Organization 

Certification is built on proof that your company is properly set up, with adherence to corporate governance standards, and that women own and control the day-to-day operations of the business. This proof can be found in your corporate or LLC documents, bylaws, tax returns, and financial statements, to name a few.  

Every certification process requires similar documentation. Organization makes the process of application and renewal much easier, and in the process, you’ll have established a habit of keeping important company information updated and organized. 

Download the required documentation and create a checklist. Required documentation for: 

WOSB/EDWOSB (from the SBA) 

WBENC 

NWBOC 

USWCC 

Secure Your Files 

Establish a password-protected digital folder on a cloud drive. This information includes private personal information, so be sure it is secure and available to the primary business owner and a second trusted person as backup. Review the required documentation and save it into this folder. Use subfolders to make it easier to find, such as Corporate Documents, Owner Information, Financial Documents, and any other file structure that makes sense to you.  

Keep Up with Documentation 

If your company is a corporation or LLC, minutes from annual meetings of the shareholders and directors are often required. Templates for these documents can be found online and customized for your business.  

But what if you are the sole owner of your company and you don’t have a board of directors? Minutes are still required, even if you are documenting a meeting with yourself. Having the discipline to keep these records will ensure the liability protection afforded by having a separate legal business entity cannot be challenged if your company were to be sued.  

Realize that certifications need to be renewed annually, meaning you’ll need updated financials, tax returns, meeting minutes, and any other documents that may be new. Keep these files organized and up to date to make renewals less time-consuming. 

Time to Hunt! 

Once you’ve completed the application process, be sure you’re monitoring email to catch any correspondence from the certifying organization. If they are seeking more information or clarification, there is usually a limited time frame to respond. 

Begin working on your company’s outreach and marketing strategy to put in place once you are awarded certification. Third-party certification organizations such as WBENC and NWBOC host annual national conferences and regional events where you’ll have opportunities to meet with buyers from many organizations, and to network with other women businesses.  

Focus your efforts by making a list of corporations or government agencies where your products and services would be a good fit and choose a few of these events to attend. It’s a great way to meet buyers face-to-face. Be sure to have a process in place to follow up on opportunities. 

Publicize your certification to potential customers by including approved icons that identify you as certified on your company website, social media pages, on your email and business card.  

SBA WOSB/EDWOSB logos 

WBENC certified logos  

Capitalize on Certification Benefits 

Be sure to utilize all the benefits of being a certified woman-owned business. For example, many corporate supplier diversity departments have a budget to assist women-owned businesses to grow and may offer scholarships to executive education programs through major universities.  

WBENC offers a number of programs, including a partnership with Dartmouth College’s Tuck School of Business Executive Education program where women business owners can learn more about running a business from the college’s faculty. Many other prestigious business schools offer these programs and the cost to attend can be covered with a scholarship from your current or potential clients. 

Seek Help When Needed 

Finally, consider working with one of the many companies that offer help getting certified, identifying contract opportunities and marketing assistance. The quality varies widely, as does the cost. If you decide to utilize these services, be sure to do your research. Ask for referrals from other business owners and references from any company you are considering using.  

Drive Business with Your Certification 

While becoming certified as a woman-owned business can be complicated and will require an investment of time and self-education, it is also an opportunity to expand your company into new markets and larger contracts. Do your homework, consider whether your company is a good candidate, organize your records, and plan how to best leverage the certification through business development, networking, and executive education opportunities.  

Additional Resources

• WOSB.Certify.sba.gov The Women-Owned Small Business Federal Contract Program (WOSB Program) is to help provide a level playing field for women business owners. The federal government limits competition for certain contracts to businesses that participate in the WOSB Program. These contracts are specific industries where WOSBs are underrepresented. 
• WOSB and EDWOSB Certification Options This table details certification options available to Women-Owned Small Businesses and Economically Disadvantaged Women-Owned Small Businesses 
• How to Get Certified as a Woman-Owned Business (U.S. Chamber of Commerce) 
• Sole Source Contracts for certified WOSB  
• Benefits of SBA Certifications for Women-Owned Businesses  
• Business Certifications Explained: The Basics  
• How Women-Owned Businesses Can Win Federal Contracts 
• WBENC (Women’s Business Enterprise National Council)  
• NWBOC (National Women Business Owners Corporation)  
• USWCC (U.S. Women’s Chamber of Commerce) 

I once worked with an electrical contractor who, despite engaging in various marketing efforts, saw a decline in revenues. His marketing firm presented monthly reports filled with new impressions on Facebook and Instagram, regular blog posts, and an influx of phone leads from paid Google ads. However, the bottom line, revenue, was not reflecting the desired upward trend. 

Understanding ROI 

In the realm of marketing, the ultimate goal is to increase revenue. The return on investment (ROI) metric stands out as an invaluable tool to measure the effectiveness of marketing efforts. The modified ROI equation is: 

This equation calculates ROI by considering the difference between revenue and cost, then dividing it by the cost and multiplying by 100%. In the context of marketing, revenue is the money earned, and cost includes all expenses associated with the marketing campaign. 

There are variations in calculating ROI; revenue, gross profit, or net profit can be used as the return, depending on the specific business goals. However, for simplicity, let’s focus on revenue for these examples. The investment encompasses all costs related to the marketing campaign, including agency fees, advertising platform fees (e.g., Google, Facebook, CBS), and even the costs associated with the sales team handling inquiries generated by the campaign. 

Improving ROI  

So, what constitutes a good ROI in marketing? A general guideline suggests a range of 400% to 600%, with anything below 200% considered poor and results exceeding 1000% deemed exceptional. This range depends on the profit margins of the business. High-profit margin businesses can afford lower ROI campaigns, while those with narrower margins need higher returns for the effort to be worthwhile. 

Electrifying Growth: An Electrical Contractor Case Study 

Let’s delve deeper into the story of our electrical contractor and his pursuit of business growth through marketing. He hired a marketing consultancy for about $1500 per month, to increase his revenue. 

The marketing consultancy set forth a plan that included writing two blog posts per month, coordinating digital advertising, and managing Facebook and Google ads. The contractor, like many small business owners, was eager to see results in the form of increased revenue. 

The Challenge with Facebook Ads 

One aspect of the marketing strategy was Facebook advertising. The marketing consultancy invested time and money in creating and running ads on the social media platform. However, despite the effort, the Facebook ads were not generating any inbound leads. This posed a challenge as it became difficult to measure the direct impact of the Facebook spend. 

This situation is not uncommon. Facebook ads, while potentially contributing to branding efforts, can be tricky to track when it comes to immediate lead generation, especially for service work. After all, who is scrolling through Facebook when they happen to need a plumber? The value of impressions and brand visibility might not translate directly into measurable inbound leads, making it challenging to determine the return on investment (ROI) solely based on Facebook ads. 

The World of Google Ads 

Shifting focus to Google ads, specifically utilizing Google’s call-in ads service, the contractor explored the world of pay-per-click (PPC) advertising. This model allows advertisers to pay for their ads based on the number of inbound calls generated. Google provides a special phone number or call link to track the effectiveness of the ads. 

The contractor adopted this approach to attract potential customers actively seeking services. For instance, when someone searched for electrical contractors in the local area, the contractor’s ad would appear, offering a direct link or phone number for the searcher to make contact. 

Measuring the Value of Google Leads 

As the contractor began focusing on Google leads, the initial concern was whether these inbound phone leads were truly valuable. Google provides a list of phone numbers associated with calls generated by the ad. In a specific month, the contractor received 50 calls from the marketing campaign. 

The next step in evaluating the effectiveness of the Google ads involved calculating the conversion rate and the revenue generated per customer. This is where the real challenge begins. 

It’s crucial to avoid the temptation of thinking that the $20 per call is the only cost. The contractor’s marketing agency was also charging $1500 per month to create and manage the ads. However, not all of this effort was dedicated to Google PPC. The contractor estimated that approximately half of the agency’s efforts were directed towards direct PPC advertising, resulting in a cost of $750 per month. 

Additionally, the contractor himself had to answer the phone and provide quotes for the jobs. Like many small businesses, his office manager and quote generator wore many hats. Based on the nature of the job, it was estimated that each job required about $50 worth of office resources. 

The Comprehensive View: Factoring in Costs 

Now, let’s break down the comprehensive costs: 

• Google PPC Cost: $20 per call (50 calls) = $1000 
• Marketing Agency Cost: $750 
• Office Resources Cost: $50 per job (let’s assume 20 jobs) = $1000 

Total Costs: $2750 

With the total costs known, we can now assess the revenue generated from these efforts. For instance, if the contractor closed 10 jobs from the 50 calls and the average revenue per job was $700, the total revenue would be $7000. 

Calculating ROI: A Comprehensive Approach 

Now, let’s apply the modified ROI equation: 

In this scenario, the ROI is approximately 154.55%, indicating a robust return on investment. This means that for every dollar spent on the marketing campaign, the contractor gained about $1.55 in return.   

The Significance of ROI in Marketing 

Based on our rule of thumb of over 200% ROI, this would be an unsuccessful campaign, primarily because the costs from the marketing agency do not appear to be generating enough calls to justify their fees.  From there, we had a productive conversation with the agency on why their marketing efforts were falling short. They offered several solutions including generating more inbound leads and focusing on higher revenue jobs, but if they can’t improve, he will be looking for a new marketing firm.   

Conclusion: The Balancing Act 

This detailed analysis highlights the complexity of measuring marketing effectiveness, especially in the context of PPC advertising. It emphasizes the importance of considering all associated costs to gain a comprehensive view of ROI.  

 The contractor’s journey reflects the balancing act small businesses must perform, juggling various costs and efforts to ensure that marketing expenditures translate into tangible returns. In the next part of this series, we’ll delve into the intricate world of branding and its impact on marketing effectiveness. 

 Next article:  Using the lifetime value of a customer to calculate marketing effectiveness. 

Navigating the complexities of change in a business setting is a challenging task for any Project Director. Effective change management is key to ensuring these transitions are smooth and successful. Among the many models available for guiding this process, the SCARF Model is noteworthy for its unique, people-centered approach. Developed by Dr. David Rock in 2008, this model stands out for its focus on the psychological aspects of change, making it a valuable tool in any change leader’s repertoire. This article delves into the intricacies of the SCARF Model, highlighting its effectiveness in fostering adaptability, reducing resistance, and maintaining a human touch in change processes.  

Unpacking SCARF: A Deep Dive into the Model

 The SCARF Model, an insightful creation by neuro-leadership expert Dr. David Rock, assesses five critical domains affected by organizational change: Status, Certainty, Autonomy, Relatedness, and Fairness. By understanding and addressing these areas, change managers can develop strategies that not only facilitate change but also align with the natural human responses to it.   

 “S” for Status: The Psychological Impact of Position

“Status” relates to an individual’s perceived standing or rank within an organization. It’s a significant factor in how employees react to change. Changes that are perceived as diminishing one’s status can trigger strong resistance. The SCARF Model suggests recognizing these concerns and strategizing to mitigate feelings of loss or demotion. This involves ensuring that changes are communicated in a way that acknowledges and respects the value of everyone’s role within the organization.   

“C” for Certainty: Navigating the Unknown

The “Certainty” dimension acknowledges that people naturally seek predictability and stability in their professional lives. Change inherently brings uncertainty, which can lead to stress and resistance. Effective change management requires clear, consistent communication that outlines the changes, their rationale, and the expected outcomes. By providing a clear vision and a roadmap, leaders can reduce anxiety and build trust among their teams.   

“A” for Autonomy: Empowering Individual Influence

“Autonomy” recognizes the human desire for control over one’s work and decisions. In the context of change, allowing employees some level of autonomy—whether in decision-making, planning, or execution—can significantly reduce resistance. It fosters a sense of ownership and engagement with the change process. Encouraging employee input and ideas can also lead to more innovative and effective solutions.  

“R” for Relatedness: Cultivating Connections

The concept of “Relatedness” in the SCARF Model emphasizes the importance of relationships and a sense of belonging in the workplace. Positive interpersonal connections and a feeling of being part of a community can greatly ease the stress of change. Leaders should strive to create an inclusive environment where collaboration and support are encouraged. This can be achieved through team-building activities, open communication channels, and a culture that values everyone’s contribution.   

“F” for Fairness: Perceptions of Justice

“Fairness” addresses how change is perceived in terms of equity and justice. It’s not just the actual fairness of the changes that matters, but also how these changes are perceived by employees. Leaders need to be transparent about the reasons behind changes and ensure that they are implemented in a way that is perceived as fair and equitable. This involves considering the impacts of changes across different roles and departments and adjusting to address imbalances. 

SCARF Case Studies

Scenario 1: Certainty Misstep – Abrupt Changes without Explanation

Situation: Jasmine, a team leader, decides to implement a new project management tool across her team without prior discussion or explanation. The team is suddenly required to abandon their familiar workflows for this new system. 

SCARF Insight: This abrupt change significantly impacts the ‘Certainty’ domain. The team’s inability to predict the future of their work processes and the lack of clarity about the change can lead to increased anxiety and resistance. 

Improved Approach: Jasmine should have introduced the new tool gradually, providing thorough explanations and training sessions. Communicating the reasons behind the change and showing how it aligns with the team’s goals would help in reducing uncertainty and easing the transition. 

Scenario 2: Autonomy Misstep – Overruling Team Decisions

Situation: Bruce, a department head, encourages his team to make decisions independently. However, he often overrules their decisions without seeking their input, believing his experience leads to better outcomes. 

SCARF Insight: This practice undermines the team’s sense of ‘Autonomy’. Even though Bruce initially delegates decision-making, his habit of overruling decisions without consultation makes his team feel powerless and undervalued. 

Improved Approach: Bruce should respect and uphold the decisions made by his team, offering guidance only when necessary. If he disagrees with a decision, he should discuss it with the team, explaining his perspective and seeking a collaborative solution. This approach would uphold the team’s sense of control and encourage responsible decision-making. 

Scenario 3: Relatedness Misstep – Ignoring Team Dynamics 

Situation: Jane, a project manager, focuses solely on project outcomes and timelines, paying little attention to the interpersonal dynamics and relationships among her team members. Consequently, conflicts and misunderstandings arise frequently, impacting team morale and cooperation. 

SCARF Insight: Jane’s neglect of the ‘Relatedness’ aspect leads to a lack of team cohesion and trust. Her oversight in fostering positive relationships and a sense of belonging among team members creates an environment where individuals feel isolated and undervalued. 

Improved Approach: Jane should invest time in understanding and nurturing the relationships within her team. Organizing team-building activities, encouraging open communication, and addressing conflicts promptly would enhance team unity and collaboration. Recognizing and celebrating team achievements can also strengthen bonds and a sense of belonging. 

Scenario 4: Feedback Misstep – Inadequate Recognition of Employee Contributions

Situation: Bob, a supervisor, regularly reviews the work of his team members. He notices that Jeanette, one of his employees, consistently meets her targets and often goes beyond them. However, Bob rarely acknowledges her extra efforts, focusing instead on minor areas for improvement in her work. 

SCARF Insight: This scenario impacts the ‘Status’ domain of the SCARF Model. Jeanette’s lack of recognition for her achievements and extra efforts can make her feel undervalued and unrecognized. This oversight can lead to a decrease in motivation and possibly resentment, as her status within the team feels diminished. 

Improved Approach: Bob should balance his feedback by acknowledging and praising Jeanette’s accomplishments and extra efforts. Recognizing her contributions in team meetings or through formal recognition programs can significantly boost her sense of status and motivation. This approach not only values her current contributions but also encourages continued high performance and engagement. 

SCARF’s Role in Compassionate Leadership  

The SCARF Model is more than just a framework for managing change; it’s a blueprint for compassionate leadership. By understanding and addressing the core psychological needs of employees during times of change, leaders can create a supportive environment that not only facilitates smoother transitions but also fosters a culture of trust and collaboration. Integrating the SCARF Model into your change management strategies ensures that your approach remains human-centric, a crucial aspect in achieving successful and sustainable change in any organization. 

The Global Workforce Reality 

In today’s interconnected world, businesses thrive in a global marketplace, where the fusion of diverse cultures and backgrounds fuels innovation and growth. Thanks to technology, the concept of a global workforce is not just a possibility but a reality for many organizations. Imagine a team where each member brings a unique perspective from their corner of the world—this is the beauty and challenge of modern team management. 

Leadership in a Multicultural Setting 

Leaders in such an environment need to be adept at navigating cultural nuances, understanding that their team might span continents, making traditional face-to-face meetings a rarity. This scenario demands a new breed of leadership, one equipped with the skills and empathy to manage diversity effectively, ensuring that all team members feel valued and heard. The ability to lead multicultural teams is no longer optional but a crucial asset in global business. 

The Power of Technology and Cultural Intelligence 

The rise of technology has made it easier for ideas to cross borders, fostering an environment ripe for innovation and cross-cultural knowledge exchange. This sharing enriches the team, sparking creativity and offering a broader understanding of the world. High cultural intelligence, or the ability to engage and work effectively in diverse cultural settings, emerges as a key trait for individuals in these roles. It’s a skill cultivated through exposure, experience, and education about the vast tapestry of global cultures. 

Benefits of Diversity in Innovation 

One of the standout advantages of a diverse team is the wealth of perspectives it brings to problem-solving and creativity. Different cultural backgrounds contribute to a melting pot of ideas, driving innovation and potentially reducing costs. Furthermore, virtual teams, by their nature, sidestep some of the misunderstandings that can arise from misinterpreting body language or other non-verbal cues thanks to their reliance on digital communication. 

Navigating Cross-Cultural Differences 

However, with these benefits come challenges, particularly in managing cross-cultural differences—a task that requires not only understanding and respect for diversity but also an appreciation of the unique contribution each team member makes. Cultural intelligence becomes an essential skill in this setting, enabling leaders and team members alike to navigate the complexities of a global team with sensitivity and insight. 

The Importance of Global Identity 

Global identity plays a pivotal role in this dynamic, serving as a foundation for mutual respect and understanding. It reminds us that while we may come from different backgrounds, we share a common goal and are part of a larger, global community. Avoiding stereotypes and embracing each individual’s unique identity are critical steps toward building a cohesive and productive team. 

In essence, leading a diverse team in the global marketplace is an opportunity to harness the full potential of our interconnected world. It’s about celebrating differences, fostering a culture of inclusivity, and leveraging the collective strength of varied experiences and perspectives to achieve common goals. As businesses continue to expand across borders, the ability to manage and thrive in this diverse environment will be a defining characteristic of successful leaders and organizations. 

References 

Eisenberg, J., & Mattarelli, E. (2017). Building bridges in global virtual teams: The role of multicultural brokers in overcoming the negative effects of identity threats on knowledge sharing across subgroups. Journal of International Management, 23(4), 399-411. https://doi.org/10.1016/j.intman.2016.11.007  

Erez, M., Lisak, A., Harush, R., Glikson, E., Nouri, R., & Shokef. E. (2013). Going Global: Developing Management Students’ Cultural Intelligence and Global Identity in Culturally Diverse Virtual Teams. Academy of Management Learning & Education, 12(3), 330–355. https://doi.org/10.5465/amle.2012.0200  

Heinz, K. (2014). Multicultural team conflict management. Securitologia, (1). https://doi.org/10.5604/18984509.1129727  

Levitt, S. R. (2013). Cultural factors affecting international teamwork dynamics and effectiveness. The International Journal of Knowledge, Culture, and Change Management: Annual Review, 13, 9–23. 

Sogancilar, N., Ors, H. (2018). Understanding the challenges of multicultural team management. Journal of Business, Economics and Finance (JBEF), V.7(3), p.259-268 https://doi.org/10.17261/Pressacademia.2018.954 

Zakaria N, Amelinckx A, & Wilemon, D. (2004) Working together apart? Building a knowledge-sharing culture for global virtual teams. Creativity and Innovation Management 13:15–29. https://doi.org/10.1111/j.1467-8691.2004.00290.x 

Are you new to the asset management world? Is your business getting too big to use Excel sheets and paper tracking methods? If the answer is yes to either question, it is time to implement an asset management operating system. This article will walk you through the steps of implementing an asset management system.  

Why Asset Management?

Tracking and maintaining company assets is crucial to efficient and cost-effective business operations. Effectively managing your assets allows you to keep track of your business’ valuable resources, extend the lifespan of assets, reduce downtime, and save your company money. Beginning to use an effective asset tracking and maintenance system involves small steps that build toward full implementation. 

Step 1: Goals

Like many business processes, you must begin with determining your organization’s specific asset tracking and maintenance goals. Clear-defined objectives and requirements will be your guide to successful implementation. Start by identifying your key performance indicators (KPIs) and how you would like to see improvement in each of these areas.  

Step 2: Resource Allocation 

Allocating the necessary budget, personnel, and technology resources for implementing your new system will be crucial as you determine which software option will best fit your needs. Research and select asset tracking software or a dedicated asset management system that meets your organization’s needs and budget. The software you choose needs to have basic features of a successful asset management system, including barcode/RFID scanning, reporting, and integration capabilities with other systems you already have or need. Reach out to end users, read reviews, and know your objectives before making a final decision.  

Step 3: Software Configuration

Once you have chosen asset management software, you must configure it. Asset identification and labeling are your first priorities. Assign unique identifiers (e.g., barcodes, RFID tags, or QR codes) to each asset your business holds. Make sure to clearly label the assets for easy identification. This step can take some time depending on how many assets your company has. Batching can help with this step. For example: consider labeling a box of ten items or even 100 items instead of each item individually. Do not forget to tag larger assets like pallet jacks or other major tools or machinery, as well.  

Step 4: Data Migration

Most systems require data migrations, in which you input existing asset data into the asset tracking software. It can be done manually or through existing spreadsheets or databases.  

Step 5: Asset Categorization

Categorize the assets based on the type, value, and criticality. Establish maintenance schedules and priorities accordingly. One of the best features of asset management software is that it allows you to keep all this critical information in one place, helping you ensure that nothing falls through the cracks. 

Step 6: Standardized Data Entry Procedure

Now you must establish data entry procedures. Develop a standardized procedure for adding new assets to the system, including data entry, asset labeling, and documentation. Document this step-by-step process to ensure consistency. Train your asset-tracking and maintenance employees to use the asset management system effectively and to enter data according to your standardized procedure.  

Step 7: Monitoring and Reporting

Use the asset tracking software to monitor asset performance and generate reports and analytics. These tools can help you make decisions, control inventory costs, and evaluate your KPIs. 

Step 8: System Maintenance

Regular maintenance for both the asset and the tracking system is critical for long-term efficiency. Ensure the asset tracking system is integrated with your procurement process to capture new asset acquisitions, and the disposal process for retiring assets. Security measures must be put in place to protect the physical and data assets. These measures usually include access controls, surveillance, and cybersecurity. Regular audits and reconciliation should also take place. Conduct periodic asset audits to verify that physical assets match the records in the system. If they do not, investigate and resolve the discrepancies.  

Putting It All Together

Remember that asset tracking and maintenance is an ongoing process requiring your commitment to continuous improvement. You must also consider asset compliance. Different industries have different regulations and standards for compliance, so do your research. Regularly assess the system’s performance and make the necessary adjustments to achieve your company’s objectives. With the right asset management tool in place, your business is sure to succeed.  

Lean Six Sigma is a methodology widely used in business to improve processes, reduce waste, and enhance quality. It combines two distinct approaches: Lean and Six Sigma. As a business owner, you know that the cornerstone for business growth is continuous improvement of your operations. Lean Six Sigma helps you achieve exactly that. First, let’s break down standard Six Sigma.  

Six Sigma 

Developed by Motorola in the 1980s, Six Sigma is a set of techniques and tools for process improvement. Six Sigma gets its name from the statistical concept of “Sigma.” It represents the standard deviation of a population of data points. Six Sigma is positioned as a level of performance where processes operate with minimal variation, ultimately leading to high quality and consistency. It seeks to improve the quality of output by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization (like “Black Belts” and “Green Belts”) who are experts in these methods. 

Six Sigma focuses on minimizing defects by reducing a process’s variation and improving the quality thereof. The quality standard can be achieved using statistical tools and techniques to measure and analyze a process’s performance and identify improvement areas. The goal is to achieve a high level of process capability or reduce defects to 3.4 per million opportunities (DPMO). The belief is that if a process variation reaches the 3.4 DPMO, the process becomes highly reliable and consistent. The number comes from the standard distribution curve, a bell-shaped curve representing the distribution data in many real-world situations. Managing this variance is called variation control. Variation control is essential to your bottom line and achieving consistency with outputs, which ultimately improves customer satisfaction and makes your process more predictable. 

Lean

Lean is a systematic methodology for waste minimization within a manufacturing system without sacrificing productivity. It has its origins in the Japanese manufacturing industry and is closely associated with the Toyota Production System (TPS), which was developed by Toyota executive Taiichi Ohno and engineer Shigeo Shingo in the mid-20th century.  

Lean focuses on eliminating waste and improving flow in business processes. Waste here doesn’t just mean physical waste; it refers to anything that doesn’t add value to the customer. Lean identifies seven types of waste: overproduction, waiting, transport, inappropriate processing, unnecessary inventory, unnecessary motion, and defects. By removing these wastes, Lean aims to streamline processes, reduce costs, and improve efficiency. 

The core principles of Lean are derived from the TPS and can be summarized as follows: 

• Identifying Value: Understanding what the customer really needs and values. This helps in focusing efforts on things that truly matter. 
• Value Stream Mapping: Analyzing the flow of materials and information currently required to bring a product or service to the consumer. This step involves identifying every step in a work process and eliminating those steps that do not add value. 
• Creating Flow: After the waste has been removed from the value stream, the next step is to ensure that the remaining steps flow smoothly without interruptions or delays. 
• Establishing Pull: Ensuring that products are created at a rate determined by customer demand. In a pull system, work is only pulled if there is a demand for it, reducing overproduction and inventory. 
• Pursuit of Perfection: Continuously improving processes and systems within the organization to achieve the most efficient level of operation possible. 

Lean thinking has been widely adopted beyond the automotive industry and is now applied in healthcare, software development, service industries, and government sectors, among others. It’s a customer-centric approach that seeks to deliver high-quality products and services efficiently and effectively by continuously identifying and eliminating non-value-adding activities. 

Putting It Together: Lean Six Sigma  

When combined as Lean Six Sigma, these methodologies focus on both efficiency (Lean) and effectiveness (Six Sigma). The goal is to create a high-quality product or service quickly and efficiently by streamlining processes and reducing variations and defects. Businesses of all sizes and across various sectors use Lean Six Sigma to improve their operations, which can lead to cost savings, better customer satisfaction, and overall business growth. 

Lean Six Sigma is often symbolized by a belt system, similar to martial arts, to denote levels of expertise: White Belt, Yellow Belt, Green Belt, Black Belt, and Master Black Belt. Each level represents a different degree of training and understanding of Lean Six Sigma principles. 

How Can Lean Six Sigma Benefit Your Business? 

The goal of Lean Six Sigma is to achieve higher levels of efficiency and quality by streamlining business processes and eliminating activities that do not add value. It is a double whammy of operational excellence.  

Let’s walk through an example to better illustrate Lean Six Sigma. Let’s say you have a healthcare facility that wants to improve patient appointment scheduling. Using the regular Six Sigma, you analyze the data and find out that the appointment scheduling process has a high variation of wait times, which leads to patient dissatisfaction. Next you use statistical tools to identify the source of the variation and implement improvements accordingly to reduce the wait times.  

On the other hand, in a parallel world, your healthcare company adopts a Lean Six Sigma approach instead. You not only work on reducing those pesty wait times, but you also eliminate non-value-added steps in the process. With Lean, you identify redundant paperwork and manual data entry that does not contribute to patient care. In the process, you took care of two birds with one stone. You eliminated waste and reduced variation to achieve a more streamlined and efficient appointment scheduling process, all while maintaining the utmost quality of patient care. As you can see, Six Sigma is good; Lean Six Sigma is better. 

Get Started with DMAIC 

First, you must define your scope and goals. This begins with implementing DMAIC. DMAIC is a data-driven, structured problem-solving methodology that is a core part of the Six Sigma approach. It stands for Define, Measure, Analyze, Improve, and Control. The purpose of DMAIC is to improve, optimize, and stabilize business processes and designs. Here’s a brief overview of each phase: 

1. Define: This initial phase involves clearly defining the problem or project goals. It includes identifying the customer requirements, project scope, and objectives. This step sets the direction and targets for the improvement project. 

1. Measure: In this phase, you collect data to establish baseline measurements on the current process. This helps in understanding the existing system’s performance level and serves as a point of comparison for future improvement efforts. Key metrics are identified and data collection methods are established. 

1. Analyze: During the Analyze phase, the data collected in the Measure phase is thoroughly examined to identify the root causes of the problem. This involves using statistical tools to interpret data and find patterns, trends, or anomalies that could point to the cause of the inefficiencies or issues in the process. 

1. Improve: Based on the analysis, solutions are developed to eliminate the root causes of the problem. This phase involves generating ideas, selecting the most appropriate solutions, and then implementing these changes. It often involves pilot runs or simulations to test the solutions before full-scale implementation. 

1. Control: The final phase ensures that the improvements are sustained over time. This involves implementing control systems, such as process monitoring and control charts, and establishing standard work procedures or policies. The goal is to maintain the gains achieved through the project and ensure that the process does not revert to its previous state. 

DMAIC is a cyclical process, meaning that after the Control phase, the Define phase begins again as part of a continuous improvement effort. It is widely used in various industries for quality improvement, problem-solving, and process optimization.  

Once you are reliably implementing DMAIC, you’ll want to continue gathering and analyzing data. If you don’t track metrics properly or have the tools available to complete this variance measurement, Lean Six Sigma could be much harder to implement. If you are in business and doing reasonably well, you should have some output data to analyze. If your business is smaller and not tracking these sorts of things, you should start there first.  

A Solutions Mindset

With data in hand, focus on solutions. You can start with one small process at a time, or take on a more major process overhaul. Whether you dip in a toe or dive in headfirst, Lean Six Sigma will benefit your business. Avoid getting mired down in negativity, focus on improvements, and your customers (and you!) will see a positive difference.  

Purchasing physical hardware and datacenters year after year is costly and inefficient. It is time to move away from your clunky on-premises technology infrastructure. The cloud is the answer. Moving to the cloud can reduce capital expenditures, grant you economies of scale, and help your technology services provider handle IT maintenance in person or remotely. Pay-as-you-go plans are also common in cloud-based services, so as your business grows, so will your capacity. 

The Challenge of Converting 

The benefits of cloud-based operating systems are innumerable. The challenge, however, comes with the process of converting from your current physical hardware to the cloud. Transitioning to cloud-based systems is a significant undertaking, requiring careful planning and execution. This article will walk you through the key steps for a successful transition to a cloud-based system. 

Step 1: Establish Your Goals

You are ready to transition to a cloud-based operating system. Now you need to lay out your objectives clearly to get your stakeholders on board. Consider cost-savings, scalability, disaster and recovery planning, and improved agility. Keep sound change management strategies in mind and follow your current communication protocol to share your goals with your team.  

Step 2: Conduct an Assessment  

With your goals established, take stock of your existing IT infrastructure, applications and data. Determine which workloads need to be transitioned to the cloud, and which are better in your current infrastructure. You may need expert help for this assessment. A reputable Technology Service Provider can conduct an audit for your business and help you identify areas in which the cloud can save you time and money.  

Step 3: Choose the Right Cloud Model 

There are a number of cloud options from which to choose. You have public clouds like AWS, Azure, and Google Cloud, which offer scalability and cost-effectiveness. Then you have the private clouds, which provide more control and security for your data. Private clouds also provide more opportunities for custom protocols and access control.  

You may prefer a hybrid model, in which some clouds are on a public server, and others are not. Research and compare cloud service providers based on your specific requirements. They vary in pricing, services offered, geographic presence, and compliance standards. Assess security requirements and compliance standards for your industry specifically before making a final choice. If you find yourself overwhelmed, a Technology Service Consultant can assist you with this choice.  

Cloud resource usage is costly, so be sure to monitor it and use auto-scaling where applicable. Your chosen cloud provider service can teach you more about this, as pricing and details vary per company. 

Step 4: Develop a Security Strategy 

Next you should work closely with your chosen cloud provider to develop a robust security strategy. Protecting your data and applications within the cloud is of the utmost importance for your long-term business success. A well-thought-out security strategy minimizes risks as well as downtime.  

Step 5: Data Migration 

Now it is time to plan your data migration. Keep in mind that transferring large volumes of data to the cloud takes time. It can also impact the performance of your current system. For these reasons it is critical to plan your data migration for a time that will be as unintrusive as possible. Consider scheduling the transfer over a holiday weekend or when your system is unused. This is also a good time to perform any system or application updates.  

Step 6: Train Your Team  

After you have completed the data migration process, it is time to train your team. This will likely involve change management. Communication about the benefits of this change will make the transition significantly easier for your entire organization. Your IT team may need training in cloud technology. There are many certification and training programs available for this task. A training program is an easy way to get your team up to speed and certified to do the work the right way. Training must be complete before you move your workloads over to your cloud platform. Remember that while your data has been transferred to the cloud, your workloads and to-do items have yet to be moved.  

Step 7: Test, Validate, and Back Up

Make sure to test and validate your new cloud system before migrating critical workloads. This allows you to identify and address issues early on, mitigate risk, and save money.  Mistakes happen, and technology does have its kinks, so test thoroughly. Create a robust backup and disaster recovery plan to protect your data and operations in the cloud. In case of emergency, you won’t lose any data if your backups are done correctly.  

Step 8: Migrate Critical Workloads 

It is finally time to execute the migration of your critical workloads. Work in phases, so you can monitor the progress of each workload and promptly address any issues. After you complete your rollout of phases for full migration, plan to continuously optimize your cloud environment by analyzing performance metrics and making necessary adjustments. Maintain clear documentation of your cloud infrastructure and implement governance policies to manage resource allocation and access. Be sure to look at the cloud management tools regularly to keep track of your cloud resources’ performance and security.  

Technology Strategies That Evolve with Your Business 

As your business evolves, so do your needs. Review and revisit your cloud strategy and make necessary adjustments and improvements as needed. Cloud migration is not a one-time event, but an ongoing improvement process. Leverage the cloud to achieve your initial goals and attain the benefits you outlined at the start of this process. Follow the steps outlined in this article and enjoy streamlined operations with your cloud-based operating systems.