Springfield Chamber Membership Breakfast: Spring 2011

Top Three Business Tips

Tom DraggooAssistant Vice President

Business Development Officer

Plan your Work & Work your PlanConservative projections, sufficient

capital, willingness to “bet the house.”Know what your financial reports are

telling you and act accordingly1. Accounts receivable – avoid concentrations,

don’t be someone’s bank2. Sole proprietors – pay yourselves last3. Save for a rainy day; business goes in cycles

Under-Promise & Over-Deliver

This has everything to do with customer service

Phone calls, voice mail, email, RSVPs to invitations, good manners, etc.

Set realistic deadlines and then meet or beat them

Code of EthicsSets the tone for the entire organization and creates a culture of integrity

Code of Ethics

Rotary International’s Four-Way Test of the things we think, say or do:1. Is it the truth?2. Is it fair to all concerned?3. Will it build goodwill and better friendships?4. Will it be beneficial to all concerned?

Questions

Tom DraggooAssistant Vice President

Business Development Officer541.746.7900

thomas.draggoo@siuslawbank.com

IT’S YOUR BOTTOM LINESPRINGFIELD AREA CHAMBER OF COMMERCE

MEMBERSHIP BREAKFAST

Presented by

THE JUSTIS GROUP

Workplace Culture and Productivity

Service-ProfitChain

Premise: When service companies put employees and customers first, a radical shift occurs in the way they manage and measure success.

Harvard Business Review Study

The Justis GroupPutting the Service-Profit Chain to Work

Harvard Business Review

Leadership

Profitability & GrowthPutting the Service-Profit Chain to Work

Harvard Business Review

Employee Productivity Drives Profitability and Growth

The Justis Group

Leadership

Internal Quality

Employee Satisfaction

Employee Loyalty

Employee Productivity

External Service Value

Customer Satisfaction

Customer Loyalty

Profitability & GrowthPutting the Service-Profit Chain to Work

Harvard Business Review

Employee Productivity Drives Profitability and Growth

The Justis Group

Work Place Culture and Productivity

The Bad News:Employee Retention Ranges from 44% to 60%

(Surveys: Manpower, Monster & Career Builder)

Cost of Turnover ranges from 25% to 250% of the annual salary per exiting employee

45% of employees plan to look for a job in 2011 (Blessingwhite Research)

The Justis Group

Work Place Culture and Productivity

Cost Associated with Turnover:

-Exit Costs: HR, Managerial Handoff, Lost Customer/Contacts, Lost Knowledge

-Absence Costs: Coverage, Productivity, Disruption

-Recruitment Costs: Advertising, Internal/External Recruitment, Hiring Manager, Screening

-Onboarding Costs: Onboarding, Training, and Productivity Ramp-up

The Justis Group

Work Place Culture and Productivity

The Justis Group

According to the US Bureau of Labor Statistics, the average non-farm turnover rate is 3.3%

How does your company’s turnover rate compare?

Top Reasons Why People Leave

My career 26% - I don’t have opportunities to grow/advance.

My work 15% - I don’t like what I do or it doesn’t make the most of my talents.

My finances 15% - I want to earn more money.

My desire for change 12% - I want to try something new.

My manager 10% - I don’t like working for him or her.

Other 18% - (economy, job conditions, company mission)

The Justis Group Blessingwhite Research

Work Place Culture and Productivity

Blessingwhite Research:Blessingwhite Research:Employer caution: …

compared to 2008, more employees who can be

considered high performers are planning to exit.

The Justis Group

Work Place Culture and Productivity

Just working on retaining employees is not enough.

You want engaged employees!

The Justis Group

Work Place Culture and Productivity

Once we get past the issue of compensation, people want to

contribute and see their contribution make a difference.

They want opportunities for learning, development,

promotions and to feel as if they are part of the success.

The Justis Group Blessingwhite Research

Work Place Culture and Productivity

Engagement Defined:

Contribution to the company’s successPersonal satisfaction in their role

•33% Engaged•24% Almost Engaged •15% Crash & Burners •10% Honeymooners & Hamsters•18% Fully Disengaged

The Justis Group Blessingwhite Research

Work Place Culture and Productivity

So, what can we do to keep our best people – and keep them engaged in the work

we do?

The Justis Group

Work Place Culture and Productivity

Coaching, relationships and dialogue: - Managers must understand each person’s

talents, interests and needs and match those with the company’s objectives.

- Tie employee goals to the company’s objectives.

- They also need to build personal, trusting relationships with employees.

- And they need open and frequent dialog with employees to head off problems that can lead to disengagement.

The Justis Group Blessingwhite Research

Work Place Culture and Productivity

Trust, communication and culture:- At the top level, a business owner must earn

trust by being consistent in words and deeds.

- It’s also important to communicate frequently.

- Finally, create a culture where your company’s values are truly reflected in day-to-day business practices. In other words, walk the walk, don’t just talk the talk.

The Justis Group Blessingwhite Research

7 Keys to Increasing Productivity

Hire right the first timeTerminate non-engaged employeesGive 80% of your management time to coaching,

relationship building and dialoguing with the Engaged and the Almost Engaged

Train managers to lead proactivelyDevelop and maintain a goal setting cultureCelebrate achievementsEstablish realistic work/life balance expectations

for everyoneBe consistent in all things – create trust, open

communication and honesty

The Justis Group

Work Place Culture and Productivity

Questions?

The Justis Group

Work Place Culture and Productivity

Insights and Actions

(Card on table)

The Justis Group

Work Place Culture and Productivity

Thank You

The Justis Group