People Are Our Most Important Asset!

How many times have you heard or uttered this phrase in the last 5 years or so. As a "reformed accountant" this phrase makes me cringe more than any other business euphemism being espoused today.

What exactly is an asset? The dictionary defines an asset as "A valuable item that is owned". From an accounting standpoint an asset might be a desk, building, computer, or a truck. The one thing almost all assets have in common is that they are depreciated, or used up by the company until they are worthless. Then they are discarded.

Now you can understand why that phrase makes me cringe. Certainly there are exceptions to the "use and discard" rule. Land, securities, or even artwork are examples of assets that appreciate in value and are worth more over time than they were when they were first acquired. But is that how you are treating your employees?

Many companies today seem to be using employees up. Employees are hired, placed in service, perform at maximum capacity for as long as possible, and then when they are no longer viable, they are discarded and replaced.

Just like a disposable asset.

Oddly enough, it seems to me that there really is a correlation between how companies treat their equipment and how they treat their employees. When times are going well, companies spend money on their equipment. They run routine maintenance; they keep the equipment well oiled; they buy upgrades and add-ons; and they do their best to ensure that the equipment is in the best working order possible.

Then market conditions change and the company suddenly finds itself in more difficult times. What do they do? They try to control expenses by reducing or eliminating any expense that does not show an immediate payback. Instead of getting preventive maintenance on their equipment every 30 days, it is stretched out to 90 days. Instead of upgrading the equipment with new add-ons companies try to make due without the enhancements. Instead of keeping the equipment well oiled, they cut the staff that performed the job, just to save the dollars. The result of these cost cutting initiatives is fairly clear as well. In the short term the expenses are reduced and profits preserved. But after a few months, the cost containment process begins to show it's true impact as equipment shows wear and tear, breaks down, or does not have the capability to perform the job as now required.

Similarly with employees we see the same pattern. When times are good companies spend money to hire the right employees through careful screening processes. They spend money to train employees on both technical and soft skills to improve their performance. And they reward employee performance through pay increases and fringe benefits. When the business gets more difficult the cutting starts with training, followed quickly by pay and benefits, and eventually manpower itself. In the short term, profits are preserved, but after a few months, the employees find themselves without training on new products. Process enhancements that would improve long-term productivity are set aside due to the short term costs of implementation. Companies begin to work their employees harder, without the grease and preventive maintenance required to ensure their productivity. Managers push harder for production with less staff. More coercion is used because managers know that employees have few choices but to put up with the demands being made on them. Bad bosses use bad economic conditions as an excuse to treat their people shabbily.

Just like with equipment, the costs are contained in the short term at the expense of the long-term value of the "asset". Employees are used up and then discarded just like equipment that was not properly maintained.

And who suffers the most in the long term from this shortsighted policy?

Oddly enough, it's not the employees that suffer the most, but the company itself.

Why?

Because when the economy turns again, employees remember how they were treated. They remember the lack of compassion, understanding, and leadership from their company. They quickly begin to focus their efforts on new jobs with a new company, leaving the old indignities behind.

Indeed, the company really does lose its most important assets -its' people.

So, what is the answer, you ask? How does a leadership team maintain its most important asset when finances are tough?

The answer lies in keeping your management and leadership focused on their people. And by providing leadership training for the team that includes how to maintain morale and provide inspirational leadership without spending a lot of dollars.

If you really expect your people to be your most important asset, then it's important to invest in their future, by investing in them and in the people that lead them. Spend those dollars wisely and watch the payback as your most important assets, your people, grow in value.

David Meyer, owner of Coaching for Tomorrow, has more than 25 years of management and leadership experience, having worked for companies such as Nobil Shoes, McDonough, Allied Stores, MCI and Nextel Communications. His mantra, "You Win With People" is based on the deep-seated belief that hiring, developing, and promoting the right people can lead to organizational and financial success. As a management and leadership coach, David works to instill that same passion in his clients by helping them understand the importance of strong leadership, strong teamwork, and strong players.

David has a Bachelor's in Business Administration from Elmhurst College and has been certified by both ACTION International as a Business Coach and the Coach Training Alliance. He also has received his CTM from Toastmasters. He is an Officer in the Denver Coach Federation and a facilitator/trainer for the Coach Training Alliance and ACTION International of Colorado. He is also a co-author of the book Creating Workplace Community: Motivation.

Married with two adult daughters, David is active in his local Kiwanis club and Crossroads Community Church. He enjoys reading, golf, scuba diving, and Civil War reenacting. www.coachingfortomorrow.com

---

Google News Updated : Fri, 05 Sep 2008 08:05:30 GMT '1967 lines not up for discussion' - Jerusalem Post Sydney Morning Herald '1967 lines not up for discussion' Jerusalem Post - 32 minutes ago By JPOST.COM STAFF The July 4, 1967 lines are not up for discussion and are the very foundations from which direct talks between Israel and Syria will start, Syrian Foreign Minister Walid Muallem said Friday. Video: Sarkozy in Syria : the press is divided france24english Syrian sets terms of role on peace Philadelphia Inquirer New York Times - Boston Globe - International Herald Tribune - Voice of America all 1,039 news articles Publ.Date : Fri, 05 Sep 2008 07:32:39 GMT Wal-Mart acting on shifts in consumer spending - BusinessWeek Los Angeles Times Wal-Mart acting on shifts in consumer spending BusinessWeek - 3 hours ago By CHUCK BARTELS If the mood on Wall Street is grim, then consumers must be feeling even more bleak, right? Fuel prices remain high, inflation has hit food prices hard and consumer confidence is down. August another disappointing month for retailers Los Angeles Times Lower-cost stores gain from US shoppers' thriftiness Financial Times Forbes - The Associated Press - Wall Street Journal all 673 news articles Publ.Date : Fri, 05 Sep 2008 04:48:39 GMT Boeing Workers Are on the Brink - BusinessWeek Wall Street Journal Boeing Workers Are on the Brink BusinessWeek - 1 hour ago Despite being offered a relatively generous package by management, Boeing machinists are ready to go on strike. Here's why by Joseph Weber When a stunning 87% of Boeing machinists voted on Sept. Motown Blues for Boeing? Wall Street Journal Boeing, machinists union meet with mediator The Associated Press Seattle Times - Bloomberg - Reuters - Chicago Tribune all 1,406 news articles Publ.Date : Fri, 05 Sep 2008 06:54:59 GMT McCain takes stage, turns down heat - Boston Globe The Gazette (Montreal) McCain takes stage, turns down heat Boston Globe - 1 hour ago By Joanna Weiss For a man at the top of a presidential ticket, John McCain had an unusual task last night: to remind the nation that he was the star of his own show. Palin Assails Critics and Electrifies Party New York Times GOP welcomes McCain with enthusiasm Milwaukee Journal Sentinel CBS News - Kansas City Star - ABC News - TIME all 1,387 news articles Publ.Date : Fri, 05 Sep 2008 06:20:31 GMT Rice set for historic Libya visit - BBC News RTE.ie Rice set for historic Libya visit BBC News - 3 hours ago US Secretary of State Condoleezza Rice is set to begin a historic visit to Libya as part of a North African tour. She is expected to meet Libyan leader Muammar Gaddafi as part of the trip, which will also include visits to Tunisia, Algeria and Morocco. Rice set to begin historic Libya visit AFP Rice set to make history in Libya The Associated Press Aljazeera.net - International Herald Tribune - WZTV - Bloomberg all 425 news articles Publ.Date : Fri, 05 Sep 2008 04:41:55 GMT Data on defective genes make tailored remedies possible - Baltimore Sun Voice of America Data on defective genes make tailored remedies possible Baltimore Sun - 41 minutes ago By Frank D. Roylance Researchers cataloging the genetic codes of deadly human brain and pancreatic cancers say they have found several dozen defective genes that appear to work in concert to set off the tumor growth that eventually kills their victims. In Long-Awaited Maps of Cancer, The Breakthrough Is the Problem Wall Street Journal What You Need to Know About Mapping the Cancer Genome U.S. News & World Report Reuters - The Associated Press - Bloomberg - Science Daily (press release) all 209 news articles Publ.Date : Fri, 05 Sep 2008 07:24:12 GMT Schwarzenegger: Palin delivered 'fantastic' speech - San Jose Mercury News KGET 17 Schwarzenegger: Palin delivered 'fantastic' speech San Jose Mercury News - 1 hour ago AP SACRAMENTO—Gov. Arnold Schwarzenegger on Thursday said Sarah Palin hit a home run with her acceptance speech for the Republican vice presidential nomination. Video: Governor To Californians: Bug Lawmakers About Budget kcratv California nears record in spending plan stalemate Sacramento Bee San Gabriel Valley Tribune - Los Angeles Times - New York Times - City Watch all 302 news articles Publ.Date : Fri, 05 Sep 2008 06:14:17 GMT RSS to HTML More Web Site Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

Innovation Management ? Diversity Can Make All The Difference

Companies are welcoming a diverse range of employees (The Sunday... Read More

Five Key Strategies for Making Your Nonprofit Business More Effective

I love tennis both as a spectator and... Read More

Business Innovation ? Ignoring Content

Creativity can be defined as problem identification and idea generation... Read More

Is Your Business Healthy?

Most business owners I work with want to grow their... Read More

Why You Should Hold One More Meeting

If you are completely happy with where you and your... Read More

Stopping The Brain Drain: How To Capture Key Business Knowledge Before It Walks Out The Door

The verdict is in: More and more baby boomers will... Read More

Turnover is Not a Problem

"Ha!" you say. "For someone to make a statement like... Read More

Understand What Flows Through Your Business to Find Improvement

I remember once seeing a cartoon which showed two people... Read More

Business Knowledge Management

In the last few years a lot has been written... Read More

Unravelling the Data Mining Mystery - The Key to Dramatically Higher Profits

Data mining is the art of extracting nuggets of gold... Read More

Managing Workplace Conflicts

Kinds of Workplace ConflictsLet's start by identifying where conflicts happen.... Read More

How to get an Audiences Attention

A trainer dryly discussing how to motivate people in an... Read More

Five Tips for Analyzing an Income Statement

In today's article, we'll be looking at the income statement,... Read More

Phone Sex is Bad for Business

On August 3rd/2005, Reuters reported that a German man had... Read More

Group Discussion Guidelines

DISCUSSION METHODS: There are two basic types of discussion methods;... Read More

My Companys Leadership Sucks!

Maybe it's the season or just a more buoyant job... Read More

Experiences of Management Coaching (Part 2)

In our experience, we have found that there are several... Read More

Managing Rebellious Employees

Surveys of executives reveal that many companies fall short of... Read More

The Best Way to Keep Track of Meetings

How should you keep track of meetings?Have you ever wanted... Read More

Think Before You Talk

What you say to other people can make or break... Read More

Organizational Techniques - Tickler and Chron File

One of the biggest problems we encounter in our consulting... Read More

Effective Meetings - Quick Survey

Here's an easy quiz to check the health of your... Read More

Leadership Styles - the Ten Top Qualities the Best Leaders Show

Top leaders...Are Visionary Top leaders have a very clear understanding... Read More

Supervisor-Employee Relations: Tips For Managers

Supervisor-employee relations are a critical part of a work place... Read More

5 Ideas To Leverage The 3 Stages Of Career Development In Your Organization

In most industrialized nations, the average age a student graduates... Read More