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Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
Sunday, August 29, 2010
What Do I Seem For In A House I?m Purchasing Now, If I Want To Resell It Later?
What Do I Look For In A Residence I?m Getting Now, If I Want To Resell It Later on?
That?s a great query! You want to buy a residence that will give you a great resell worth later on. To do this, appear at the type of home you?re preparing to buy that might be interesting to long term customers. When you?re seeking to obtain a residence, check to see if some or all of these features are presented:
one. Place of the house. Is the residence situated in a excellent neighborhood that is close to colleges, shops, freeways, and so forth...
a couple of. Verify the crime rate for the region you?re considering about buying in. What are the crime rate statistics. Is the neighborhood safe?
several. Is there anticipated growth for the places such as: new educational institutions, shops, long term planned houses, etc... How will this impact you in the long term?
four. Attempt to make certain the square footage of your house is at minimum 1200, in order to improve the likelihood of becoming capable to resell.
five. Appear for houses that have at least 3 bedrooms as component of your future home buy. This will be beneficial in reselling your house in the future.
6. You may possibly want to appear at regardless of whether or not the house must have 1 or two testimonies. Most individuals paying for households are fascinated in two stories. However, the elderly or people with selected disabilities may well want to purchase a house that is a single story.
7. If the residence you?re thinking about buying has a pool, retain in mind this may limit the quantity of potential customers if you determine to offer your residence. Pools don?t necessarily add a lot worth to the house and can be high-priced to sustain!
8. You might want to take into account possessing a garage which can accommodate a bare minimum of two vehicles. This is typically an appealing and expected characteristic for purchasers.
9. The quantity of bathrooms is also critical. Obtaining a residence with at bare minimum of two bathrooms is a must when buying a residence for long term resell.
10. Make positive the home you?re considering has a fireplace, air conditioning and heating method.
When you buy a residence, just believe of becoming ready to get a great return on your purchase if you had to resell. In most situations at a bare lowest you want to get the funds you have invested in your house out of it, if you had to offer for some reason. It?s even greater if you can make a profit on you sale isn?t it? I believed so, just be wise when you?re purchasing your house, it?s an purchase in your long term!
That?s a great query! You want to buy a residence that will give you a great resell worth later on. To do this, appear at the type of home you?re preparing to buy that might be interesting to long term customers. When you?re seeking to obtain a residence, check to see if some or all of these features are presented:
one. Place of the house. Is the residence situated in a excellent neighborhood that is close to colleges, shops, freeways, and so forth...
a couple of. Verify the crime rate for the region you?re considering about buying in. What are the crime rate statistics. Is the neighborhood safe?
several. Is there anticipated growth for the places such as: new educational institutions, shops, long term planned houses, etc... How will this impact you in the long term?
four. Attempt to make certain the square footage of your house is at minimum 1200, in order to improve the likelihood of becoming capable to resell.
five. Appear for houses that have at least 3 bedrooms as component of your future home buy. This will be beneficial in reselling your house in the future.
6. You may possibly want to appear at regardless of whether or not the house must have 1 or two testimonies. Most individuals paying for households are fascinated in two stories. However, the elderly or people with selected disabilities may well want to purchase a house that is a single story.
7. If the residence you?re thinking about buying has a pool, retain in mind this may limit the quantity of potential customers if you determine to offer your residence. Pools don?t necessarily add a lot worth to the house and can be high-priced to sustain!
8. You might want to take into account possessing a garage which can accommodate a bare minimum of two vehicles. This is typically an appealing and expected characteristic for purchasers.
9. The quantity of bathrooms is also critical. Obtaining a residence with at bare minimum of two bathrooms is a must when buying a residence for long term resell.
10. Make positive the home you?re considering has a fireplace, air conditioning and heating method.
When you buy a residence, just believe of becoming ready to get a great return on your purchase if you had to resell. In most situations at a bare lowest you want to get the funds you have invested in your house out of it, if you had to offer for some reason. It?s even greater if you can make a profit on you sale isn?t it? I believed so, just be wise when you?re purchasing your house, it?s an purchase in your long term!
The Responsiveness Paradigm
We call this approach The Responsiveness Paradigm.
The Responsiveness Paradigm is a way of looking at how people influence and get along with each other. Based on our work in defusing hostility, it suggests that a primary characteristic of successful and respected people, be they leaders, managers or line employees, is that they have an ability to respond to others in a way that takes into account the needs of both people.
You Can Preview our help card on Responsive Managers by clicking here
What Is Responsiveness?
We characterize responsiveness in the following ways:
An individual (or organization) can be considered responsive if:
s/he identifies both the explicit (clearly stated), and implicit (unstated or below the surface) needs of another person or people s/he interacts with.
s/he uses the understanding of those needs to fulfil those needs when possible.
s/he acknowledges and works in partnership with other parties to find some means of fulfilling needs that IS possible, even if only partial fulfilment results.
s/he uses a family of communication techniques and skills (cooperative communication techniques) that serves the following functions:
indicates interest and concern for others
indicates willingness to work together and not in opposition
indicates acceptance of responsibility for communication and follow-up behaviour
The Responsiveness Skill Set
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
In terms of learning how to be responsive, we need to translate the above into a set of skills that people can learn. After all, it isn't helpful to know about successes if we have no means of making more successes. The Responsiveness skill set is a collection of elements, that when learned and applied, make people more able to meet the needs of others, and to be perceived as helpful, supportive, accomplished, etc.
First, the responsiveness skill set is composed primarily of thinking and emotional type skills. Second responsiveness requires a set of language/communication skills. We are going to state both types in terms of competencies we believe can be developed in most people.
Competencies
Active/reflective listening (communication skill)
Empathetic and acknowledging communication (communication skill)
Use of cooperative language (communication skill set) eg. use of non-confrontational ques tions to build understanding
use of qualifiers as opposed to absolute statements
focus on problem solving vs. blame
consistency between talk and behaviour (walking the talk) (thinking/emotional skill)
ability to extract other person's needs from the interactions (communication skill)
problem-solving skills (thinking skill)
These competencies give us a good starting point to look at some case situations that will illustrate the difference between responsiveness and unresponsiveness. This month we are going to look at responsive and non-responsive managers.
The Responsiveness Paradigm is a way of looking at how people influence and get along with each other. Based on our work in defusing hostility, it suggests that a primary characteristic of successful and respected people, be they leaders, managers or line employees, is that they have an ability to respond to others in a way that takes into account the needs of both people.
You Can Preview our help card on Responsive Managers by clicking here
What Is Responsiveness?
We characterize responsiveness in the following ways:
An individual (or organization) can be considered responsive if:
s/he identifies both the explicit (clearly stated), and implicit (unstated or below the surface) needs of another person or people s/he interacts with.
s/he uses the understanding of those needs to fulfil those needs when possible.
s/he acknowledges and works in partnership with other parties to find some means of fulfilling needs that IS possible, even if only partial fulfilment results.
s/he uses a family of communication techniques and skills (cooperative communication techniques) that serves the following functions:
indicates interest and concern for others
indicates willingness to work together and not in opposition
indicates acceptance of responsibility for communication and follow-up behaviour
The Responsiveness Skill Set
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
In terms of learning how to be responsive, we need to translate the above into a set of skills that people can learn. After all, it isn't helpful to know about successes if we have no means of making more successes. The Responsiveness skill set is a collection of elements, that when learned and applied, make people more able to meet the needs of others, and to be perceived as helpful, supportive, accomplished, etc.
First, the responsiveness skill set is composed primarily of thinking and emotional type skills. Second responsiveness requires a set of language/communication skills. We are going to state both types in terms of competencies we believe can be developed in most people.
Competencies
Active/reflective listening (communication skill)
Empathetic and acknowledging communication (communication skill)
Use of cooperative language (communication skill set) eg. use of non-confrontational ques tions to build understanding
use of qualifiers as opposed to absolute statements
focus on problem solving vs. blame
consistency between talk and behaviour (walking the talk) (thinking/emotional skill)
ability to extract other person's needs from the interactions (communication skill)
problem-solving skills (thinking skill)
These competencies give us a good starting point to look at some case situations that will illustrate the difference between responsiveness and unresponsiveness. This month we are going to look at responsive and non-responsive managers.
The Effects of Change On The Manager
One of the least mentioned effects of change relates to how it affects the manager leading that change, and his or her ability to undertake the leadership role. We have already talked about the effects of change on the individual employee, and of course managers are subject to the same reactions, resistances and strains. Some types of change, such as restructuring, or downsizing can put considerable strain on the leaders of an organization.
Stress, Stress & More Stress
One primary concern regarding change is the stress it imposes on those undergoing the change. Managers, because they have obligations to their staff, not only have to deal with change as employees but also need to carry some of the concerns of their staffs. In the case of downsizing, the stress levels can be extremely high, because the manager is charged with conveying very upsetting information.
Stress is part of the job, but in times of change, it is critical that you recognize that it may cause you to act in ways that are less effective than usual. As with anything connected with change, the major concern is not short term but long term. If your stress levels result in marked loss of effectiveness, the risk is that a vicious cycle will be set up, where ineffective leadership results in creating more long term problems, which increases your stress, which reduces your effectiveness even more.
Avoidance -- A Common Response
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
A common response to unpleasant change is to ignore the situation. Avoidance can take many forms. Most commonly, the avoiding manager plays only a minimal role in moving the organization through the swamp. After announcing the change and doing the minimum required, the manager "hides" from the change, through delegation, or attending to other work. This tactic involves treating things as "business as usual".
The outcomes of this tactic can be devastating. By avoiding situations, the manager abdicates any leadership role, when staff needs it most, during and after significant change. In addition, the avoidance results in the manager becoming out of touch with the people and realities of the organization.
While avoidance serves a need for the manager in the short run, it destroys the manager's credibility, and results in poor decisions. The long term consequence of such action is that the organization tends to deteriorate in terms of morale, effectiveness and productivity. Sometimes this deterioration is irreversable.
Denial -- Another Ineffective Tactic
Sometimes the manager deals with change by denying its impact. Usually, the denying manager takes a very logical approach to change. Decisions get made, systems are put in place, or new procedures are developed. Unfortunately, this "logical" approach denies the impact of change on the people in the organization.
The denying manager tends to refuse to understand "what the big deal is", and shows little empathy with employees in the organization.
As with avoidance the denying tactic tends to drop the manager's credibility and destroy any personal loyalty on the part of employees.
Key Points
1) Managers are put under stress by change, and that stress, if mishandled can result in loss of managerial effectiveness. Managers need to be alert to the signs of stress upon their performance.
2) A common management tactic is to avoid involvement in change when that involvement is unpleasant. The affects of this withdrawal can be lethal to the organization and to the manager.
3) Another common tactic is denial of the effects of change. Managers who do this tend to under- estimate the impact of the change, and demonstrate an inability to respond to employees' emotional reactions to change.
Stress, Stress & More Stress
One primary concern regarding change is the stress it imposes on those undergoing the change. Managers, because they have obligations to their staff, not only have to deal with change as employees but also need to carry some of the concerns of their staffs. In the case of downsizing, the stress levels can be extremely high, because the manager is charged with conveying very upsetting information.
Stress is part of the job, but in times of change, it is critical that you recognize that it may cause you to act in ways that are less effective than usual. As with anything connected with change, the major concern is not short term but long term. If your stress levels result in marked loss of effectiveness, the risk is that a vicious cycle will be set up, where ineffective leadership results in creating more long term problems, which increases your stress, which reduces your effectiveness even more.
Avoidance -- A Common Response
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
A common response to unpleasant change is to ignore the situation. Avoidance can take many forms. Most commonly, the avoiding manager plays only a minimal role in moving the organization through the swamp. After announcing the change and doing the minimum required, the manager "hides" from the change, through delegation, or attending to other work. This tactic involves treating things as "business as usual".
The outcomes of this tactic can be devastating. By avoiding situations, the manager abdicates any leadership role, when staff needs it most, during and after significant change. In addition, the avoidance results in the manager becoming out of touch with the people and realities of the organization.
While avoidance serves a need for the manager in the short run, it destroys the manager's credibility, and results in poor decisions. The long term consequence of such action is that the organization tends to deteriorate in terms of morale, effectiveness and productivity. Sometimes this deterioration is irreversable.
Denial -- Another Ineffective Tactic
Sometimes the manager deals with change by denying its impact. Usually, the denying manager takes a very logical approach to change. Decisions get made, systems are put in place, or new procedures are developed. Unfortunately, this "logical" approach denies the impact of change on the people in the organization.
The denying manager tends to refuse to understand "what the big deal is", and shows little empathy with employees in the organization.
As with avoidance the denying tactic tends to drop the manager's credibility and destroy any personal loyalty on the part of employees.
Key Points
1) Managers are put under stress by change, and that stress, if mishandled can result in loss of managerial effectiveness. Managers need to be alert to the signs of stress upon their performance.
2) A common management tactic is to avoid involvement in change when that involvement is unpleasant. The affects of this withdrawal can be lethal to the organization and to the manager.
3) Another common tactic is denial of the effects of change. Managers who do this tend to under- estimate the impact of the change, and demonstrate an inability to respond to employees' emotional reactions to change.
Turning Around Negative Attitudes
At one time or another, organizations develop an over-abundance of "negative energy" or attitudes. Sometimes they can be linked to organizational trauma, like down-sizing, budget restraints or workload increases, but sometimes they evolve over time with no apparent triggering event. The negative organization is characterized by increased complaining, a focus on reasons why things can't be done, and what seems to be a lack of hope that things will get better. It feels like the organization in stuck in treacle. And, it's contagious. Negativism can affect even the most positive employees.
What can you do? Based on an article by Arthur Beck and Ellis Hillmar, professors in organization development at University of Richmond, we suggest the following:
Model Positive Behaviour
It is obvious that if management is walking negative and talking in a negative way, staff will follow. Don't do it. More than that, take a positive approach with staff by showing confidence in their abilities. Expect a lot, support staff, hold them accountable, confront them and be clear and honest. Set standards for your own work and relations with employees, and work towards meeting them to set an example of positive behaviour.
Acknowledge Negativity
You can't ignore negativity and expect it to go away. If you do not acknowledge it, then staff will feel that you are out of touch, and will not be confident in your abilities. Acknowledge the frustration negative feelings, and do not try to convince the person or people that they shouldn't have their negative feelings. However, when acknowledging employees' negative feelings, try asking for suggestions regarding what to do about them.
Look For And Identify The Positives In All Situations
Sometimes we forget to find positives. When an employee makes an impractical solution, we are quick to dismiss the idea. We should be identifying the effort while gently discussing the idea. Look for small victories, and talk about them. Turning a negative organization into a positive one is a result of thousands of little actions.
Give Positive Recognition Often
Pretty straight-forward. Provide positive recognition as soon as you find out about good performance. Do not couple positive strokes with suggestions for improvement. Separate them. Combining them devalues the recognition for many people.
Refrain From Collusion On Negativity
It is easy to get caught in the general complaining and bitching, particularly in informal discussions. When faced with negative conversations, consider changing the subject, comment on the negative content ("Let's talk about something more pleasant"), or ask what can be done about the situation (move from negative to positive slant).
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
A Few More Quick Tips:
Hold a strategic planning session to focus on a positive future (but make sure it is well facilitated).
Encourage staff to find creative ways to make the work environment more enjoyable.
Encourage staff to be involved in decision-making and delegate where possible.
Introduce a "work-smart" program to dehassle the workplace.
Conclusion
It is not uncommon for organizations to go through periods of negativity. Managers play important roles in determining if that negativity will increase, or whether the trough is relatively short. Above all, remember that it is the little things that you do, day in and day out, that make the difference.
Based on "What Managers Can Do To Turn Around Negative Attitudes" (Beck & Hillmar), published in "Performance (A. Dale Tempe, Editor), Facts On File Publications, 1988.
What can you do? Based on an article by Arthur Beck and Ellis Hillmar, professors in organization development at University of Richmond, we suggest the following:
Model Positive Behaviour
It is obvious that if management is walking negative and talking in a negative way, staff will follow. Don't do it. More than that, take a positive approach with staff by showing confidence in their abilities. Expect a lot, support staff, hold them accountable, confront them and be clear and honest. Set standards for your own work and relations with employees, and work towards meeting them to set an example of positive behaviour.
Acknowledge Negativity
You can't ignore negativity and expect it to go away. If you do not acknowledge it, then staff will feel that you are out of touch, and will not be confident in your abilities. Acknowledge the frustration negative feelings, and do not try to convince the person or people that they shouldn't have their negative feelings. However, when acknowledging employees' negative feelings, try asking for suggestions regarding what to do about them.
Look For And Identify The Positives In All Situations
Sometimes we forget to find positives. When an employee makes an impractical solution, we are quick to dismiss the idea. We should be identifying the effort while gently discussing the idea. Look for small victories, and talk about them. Turning a negative organization into a positive one is a result of thousands of little actions.
Give Positive Recognition Often
Pretty straight-forward. Provide positive recognition as soon as you find out about good performance. Do not couple positive strokes with suggestions for improvement. Separate them. Combining them devalues the recognition for many people.
Refrain From Collusion On Negativity
It is easy to get caught in the general complaining and bitching, particularly in informal discussions. When faced with negative conversations, consider changing the subject, comment on the negative content ("Let's talk about something more pleasant"), or ask what can be done about the situation (move from negative to positive slant).
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
A Few More Quick Tips:
Hold a strategic planning session to focus on a positive future (but make sure it is well facilitated).
Encourage staff to find creative ways to make the work environment more enjoyable.
Encourage staff to be involved in decision-making and delegate where possible.
Introduce a "work-smart" program to dehassle the workplace.
Conclusion
It is not uncommon for organizations to go through periods of negativity. Managers play important roles in determining if that negativity will increase, or whether the trough is relatively short. Above all, remember that it is the little things that you do, day in and day out, that make the difference.
Based on "What Managers Can Do To Turn Around Negative Attitudes" (Beck & Hillmar), published in "Performance (A. Dale Tempe, Editor), Facts On File Publications, 1988.
Leadership - The Link Between Planning & Doing
If you have read the preceding articles in this section on strategic planning, YOU will have a sense that strategic planning involves more than getting together for one day a yearto develop a strategic planning document. Strategic planning is both a logical, rational process, and a process that involves people. It takes more than developing a plan for that plan to be implemented. In this article, we consider that the critical link between planning and doing is leadership.
Traditional Planning Methods
The traditional way for government organizations to plan is for a group of people, usually executives/management, but sometimes including employees, to get together for some period of time each year. Generally, inadequate time is allocated to the exercise, but if it is completed, it results in a document that contains a mission statement, broad organizational goals, and other elements as is deemed appropriate. Then, the plan is usually hidden away somewhere, never to be seen again. Traditional methods yield traditional results. As a wise man once said "If you keep doing what you have been doing, you will get what you have always got".
It needn't be this way.
Reconceptualizing Strategic Planning
Planning should be considered as a blueprint for change. The plan should be the basis for introducing controlled change into an organization so it can adapt to changing times. By anticipating shifting demands, the plan serves the purpose of allowing the organization to control its own direction, rather than waiting until political forces demand change (and demand change NOW). In addition, the plan allows for consistent monitorin~ofsuccess,~nd re-examination of the degree to which organizational resources should be structured and allocated to achieve future goals.
But, if we look at strategic planning in this light, as a blueprint for change, we also need to consider that any organization has built-in inertia.. the tendency to keep on doing what one has been doing. On its own, the strategic planning process, as traditionally undertaken, is insufficient to overcome this inertia. Other forces need to come into play if the plan, and proposed changes get implemented.
Leadership - The Key Force
In the context of strategic planning, leadership means a number of things. We can outline the role of leadership in the following ways, keeping in mind that leadership may come from appointed leaders (management and executive) and from the ranks
. 1.Those in leadership roles ensure that as many members of the organization as possible buy into the values, mission, and broad organizational goals. There are two components to this function. First, leaders manage the perceptions of staff with respect to the planning process. Remember that most people have experienced the "plan-in-the-drawer" syndrome, where effort expended in planning is seen as wasted when the plan is ignored. Prior to the planning process, leaders must emphasize that THIS TIME, things will be different.
Second, leaders manage the planning process so that staff feel that they have adequate input into the process, that they are heard, and their values and visions are incorporated into the final plan and its implementation. Specifically, leaders arrange things so that the process is open, and conforms to accepted rules of communication. That may mean hiring an external consultant to orchestrate the planning sessions. It will certainly mean that rules get established to guide participation. Everyone who wants to participate should have the opportunity, and even reticent staff should be gently encouraged to involve themselves.
2. While managing perceptions of the planning process is important, the critical role of leadership occurs after the plan has been completed. Leaders must treat the planning results as the "organizational signposts that guide behaviour and decision making". After all, nobody is going to take a plan seriously if the formal leaders ignore it, or never refer to it again.
If you are serious about using strategic planning as a tool for organizational success, consider some of the following actions. A. When working with staff to set individual objectives, be sure to mention how the individual objectives will contribute to the achievement of the mission and organizational goals as outlined in the strategic plan. Make sure that the employee is familiar with the plan when individual objectives are set.
In addition, at each meeting with each employee, work with the employee to help him/her determine how the values outlined in the strategic plan apply to them. In other words, given the particular values, strategic goals and mission statement how is the employee to behave or make decisions.
B. Once the strategic plan has been completed, the formal leader of the organization (and perhaps others) should present and discuss the plan with the up-line manager or executive. It is NOT sufficient to send a copy. Because you will need up-line support to implement the plan, you will need their commitment, and commitment will only come from discussion and explanation of the plan.
C. At staff meetings, when decisions are required, explain how the strategic plan is used, or is to be used to make decisions. If you are the manager communicating a decision you have made, explain your rationale in light of the mission, values and goals expressed in the plan. If you are using a participative decision making process, help staff refocus on these components of the plan, so that they can be used to guide decision making
D. When doing performance reviews with staff, ask the individual to explain how his or her actions are consistent with the elements of the plan. How has their action contributed to organizational goals? Has their behaviour been consistent with organizational values? What needs to change so that the individual can further contribute to implementing the plan? Consider recognizing contributions to achievement of the plan, even if the individual did not have specific responsibility as outlined in their individual objectives. And, when setting future objectives, consider writing an objective that refers to the values expressed in the plan. For example: "Will act in accordance with the organizational values expressed in the strategic plan". If you go this route, make sure -that~the implications of these values are clear to the employee in terms of his or her behaviour.
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
3. A final role of leadership is to create more leaders. One goal that formal leaders (executives, managers) can set for themselves is to encourage down-line employees to take on some of the leadership roles outlined above. This can be particularly effective in decision making. The ideal situation is for staff to internalize the plan to the extent that some take on the role of reminding people of the plan, and its relevance to any given decision-making process. Cultivate leaders in your organization by giving increased responsibility, and encouraging this kind of leadership behaviour.
Conclusion
Leadership, regardless of when it comes from formally appointed leaders, or Informal leaders, provides the link between planning and doing. Leadership, regardless of when it comes from formally appointed leaders, or informal leaders, provides the link between planning and doing. Effective leadership helps alter perceptions about strategic planning, and the organization itself, helping to overcome inertia, the tendency to keep things the same.
Without leadership, most strategic plans will end up as dead pieces of paper. Most importantly, when planning occurs without leadership, cynicism increases when staff see that the plan is being ignored, or even violated. The outcome of this is that formal leaders suffer a loss of credibility.
Traditional Planning Methods
The traditional way for government organizations to plan is for a group of people, usually executives/management, but sometimes including employees, to get together for some period of time each year. Generally, inadequate time is allocated to the exercise, but if it is completed, it results in a document that contains a mission statement, broad organizational goals, and other elements as is deemed appropriate. Then, the plan is usually hidden away somewhere, never to be seen again. Traditional methods yield traditional results. As a wise man once said "If you keep doing what you have been doing, you will get what you have always got".
It needn't be this way.
Reconceptualizing Strategic Planning
Planning should be considered as a blueprint for change. The plan should be the basis for introducing controlled change into an organization so it can adapt to changing times. By anticipating shifting demands, the plan serves the purpose of allowing the organization to control its own direction, rather than waiting until political forces demand change (and demand change NOW). In addition, the plan allows for consistent monitorin~ofsuccess,~nd re-examination of the degree to which organizational resources should be structured and allocated to achieve future goals.
But, if we look at strategic planning in this light, as a blueprint for change, we also need to consider that any organization has built-in inertia.. the tendency to keep on doing what one has been doing. On its own, the strategic planning process, as traditionally undertaken, is insufficient to overcome this inertia. Other forces need to come into play if the plan, and proposed changes get implemented.
Leadership - The Key Force
In the context of strategic planning, leadership means a number of things. We can outline the role of leadership in the following ways, keeping in mind that leadership may come from appointed leaders (management and executive) and from the ranks
. 1.Those in leadership roles ensure that as many members of the organization as possible buy into the values, mission, and broad organizational goals. There are two components to this function. First, leaders manage the perceptions of staff with respect to the planning process. Remember that most people have experienced the "plan-in-the-drawer" syndrome, where effort expended in planning is seen as wasted when the plan is ignored. Prior to the planning process, leaders must emphasize that THIS TIME, things will be different.
Second, leaders manage the planning process so that staff feel that they have adequate input into the process, that they are heard, and their values and visions are incorporated into the final plan and its implementation. Specifically, leaders arrange things so that the process is open, and conforms to accepted rules of communication. That may mean hiring an external consultant to orchestrate the planning sessions. It will certainly mean that rules get established to guide participation. Everyone who wants to participate should have the opportunity, and even reticent staff should be gently encouraged to involve themselves.
2. While managing perceptions of the planning process is important, the critical role of leadership occurs after the plan has been completed. Leaders must treat the planning results as the "organizational signposts that guide behaviour and decision making". After all, nobody is going to take a plan seriously if the formal leaders ignore it, or never refer to it again.
If you are serious about using strategic planning as a tool for organizational success, consider some of the following actions. A. When working with staff to set individual objectives, be sure to mention how the individual objectives will contribute to the achievement of the mission and organizational goals as outlined in the strategic plan. Make sure that the employee is familiar with the plan when individual objectives are set.
In addition, at each meeting with each employee, work with the employee to help him/her determine how the values outlined in the strategic plan apply to them. In other words, given the particular values, strategic goals and mission statement how is the employee to behave or make decisions.
B. Once the strategic plan has been completed, the formal leader of the organization (and perhaps others) should present and discuss the plan with the up-line manager or executive. It is NOT sufficient to send a copy. Because you will need up-line support to implement the plan, you will need their commitment, and commitment will only come from discussion and explanation of the plan.
C. At staff meetings, when decisions are required, explain how the strategic plan is used, or is to be used to make decisions. If you are the manager communicating a decision you have made, explain your rationale in light of the mission, values and goals expressed in the plan. If you are using a participative decision making process, help staff refocus on these components of the plan, so that they can be used to guide decision making
D. When doing performance reviews with staff, ask the individual to explain how his or her actions are consistent with the elements of the plan. How has their action contributed to organizational goals? Has their behaviour been consistent with organizational values? What needs to change so that the individual can further contribute to implementing the plan? Consider recognizing contributions to achievement of the plan, even if the individual did not have specific responsibility as outlined in their individual objectives. And, when setting future objectives, consider writing an objective that refers to the values expressed in the plan. For example: "Will act in accordance with the organizational values expressed in the strategic plan". If you go this route, make sure -that~the implications of these values are clear to the employee in terms of his or her behaviour.
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
3. A final role of leadership is to create more leaders. One goal that formal leaders (executives, managers) can set for themselves is to encourage down-line employees to take on some of the leadership roles outlined above. This can be particularly effective in decision making. The ideal situation is for staff to internalize the plan to the extent that some take on the role of reminding people of the plan, and its relevance to any given decision-making process. Cultivate leaders in your organization by giving increased responsibility, and encouraging this kind of leadership behaviour.
Conclusion
Leadership, regardless of when it comes from formally appointed leaders, or Informal leaders, provides the link between planning and doing. Leadership, regardless of when it comes from formally appointed leaders, or informal leaders, provides the link between planning and doing. Effective leadership helps alter perceptions about strategic planning, and the organization itself, helping to overcome inertia, the tendency to keep things the same.
Without leadership, most strategic plans will end up as dead pieces of paper. Most importantly, when planning occurs without leadership, cynicism increases when staff see that the plan is being ignored, or even violated. The outcome of this is that formal leaders suffer a loss of credibility.
Critical Factors For Dealing With Downsizing
1) Timing is critical. What is appropriate when people are upset and emotional is not as effective six months later.
2) The ability of leaders to "read" the feelings and perceptions of staff members is critical to making appropriately timed decisions.
3) Leaders who are able to accept without judgement staff's emotional reactions to downsizing will enhance their own ability to lead, and staff's willingness to follow.
4) Leaders need to help staff refocus their attention on getting the job done, and making the organization better in the future.
5) Leaders also need to deal with their own emotional reactions to downsizing, so that they keep themselves healthy and productive.
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
6) Leaders should prepare for downsizing before it is announced. In other words, there should be some strategy for helping staff, addressing practical issues that arise, and moving the organization into the future.
7) The most common mistake managers make regarding downsizing is to under-manage. By assuming that it will all work itself out, the manager spends too little time dealing with important issues, and loses the respect and trust of staff.
2) The ability of leaders to "read" the feelings and perceptions of staff members is critical to making appropriately timed decisions.
3) Leaders who are able to accept without judgement staff's emotional reactions to downsizing will enhance their own ability to lead, and staff's willingness to follow.
4) Leaders need to help staff refocus their attention on getting the job done, and making the organization better in the future.
5) Leaders also need to deal with their own emotional reactions to downsizing, so that they keep themselves healthy and productive.
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
6) Leaders should prepare for downsizing before it is announced. In other words, there should be some strategy for helping staff, addressing practical issues that arise, and moving the organization into the future.
7) The most common mistake managers make regarding downsizing is to under-manage. By assuming that it will all work itself out, the manager spends too little time dealing with important issues, and loses the respect and trust of staff.
Introduction to The Link Between Leadership, Change Management, and Communication
Leadership has as its corner stone, the ability to communicate. When we use the word communicate, we are referring not only to the words one uses to transfer factual information to others, but also to other "messages" that are sent and received.
What might these other messages be? Related to change the leader sends a good number of messages. These are listed below.
The leader communicates:
A) a sense of confidence and control (or lack thereof) to employees.
B)his or her own feelings about the change.
C) the degree to which he/she trusts the abilities of the employees to get through the change.
D) a sense of purpose and commitment (or lack thereof).
E) the degree to which he/she accepts the reactions and feelings of employees.
F) expectations regarding behaviour that is seen as appropriate or inappropriate (ie. rumour-mongering, back-room meetings).
G) the degree to which he/she is "connected to" employees situations and feelings or is "in-touch" with them.
It is clear that if the leader communicates effectively, he or she will be sending messages that decrease resistance, and encourage moving through the change more effectively and positively. The bottom line with all of this is if you screw up communicating with employees, even the smallest changes can result in ugly problems.
What Is Communication?
There are all kinds of models of communication, some basic and some complex. For our purposes communication can be described as CREATING UNDERSTANDING.
Through words, actions, body language, voice tone, and other processes you send many messages about yourself, the changes, and your organization. This constitutes precisely one-half of the communication process. The second half consists of verifying that the message you intended to send was actually received and interpreted the way you intended. The only way that you can be sure you have created understanding is to listen to the people you are communicating with, and make special effort to encourage them to reflect back to you what they have heard (and what they make of it).
Your work success hint! Did you know that most people habitually deal with conflict in a "usual way" even when the technique they prefer just doesn't fit the situation? You probably do the same.
The trick is to deal strategically with conflict and make conscious choices about which strategy to use. You can learn about the strengths and weaknesses of the five major conflict management approaches in Using Your Head To Manage Conflict . Click here for more.
Remember:
A) Although you communicate in a way that seems clear to you, the receiver of the communication, filters the information through a very complicated set of pre- conceptions, that can function to distort the message received.
B) Receivers listen selectively. They hear and process some things and gate out other things. That means that while you may have explained the "whole picture", is it likely that the whole thing wasn't received.
C)The ONLY way you can ensure that you have created common understanding is by asking the other people what they have heard, and what their reactions are to it.
Important Messages Regarding Changes
Since we have indicated that communication involves sending a variety of important messages, it is important that when you communicate about change you know what kind of messages you wish to send, and the what you want people to take away from your communication.
Whenever you communicate to employees about change, you should be striving to convey the following position.
A) that you are personally committed to the change, and seeing it through, even if it has negative consequences.
B) that you recognize that the change negatively impacts upon some people.
C) that you are open to discussion of the feelings of employees regarding the change.
D) that you are confident that the "team" can make it through the changes.
E) that you want and need input to make the changes work.
Sometimes you won't be committed to the change, or you won't be very confident that you and your staff can pull it off, particularly when the change is imposed from above. While some may disagree, it is important that you still convey an image of strength and commitment despite your own misgivings. The change leader has a role to play, and if you have mis-givings or strong negative emotional reactions of your own it may be more effective if you underplay them. If you show anger about a change, you may legitimize the same kind of negative behaviour in your staff.
While you shouldn't hide your own negative reactions completely, it is probably wise to keep them in the background by stating them in a matter of fact way and moving on.
Communication and Change -- Who, What, When, How?
As a change leader you need to make decisions about who you must communicate with, what needs to be communicated, when you will communicate and how you will do it. We will take a look at each of these in turn.
Who?
Managers sometimes have a tendency to communicate about change on a "need to know basis". However, effective change leaders recognize that almost any change will have effects on most people in an organization, no matter how removed they are from the change.
The basic rule of thumb is that communication should take place directly between the manager and employees when employees NEED TO KNOW OR WANT TO KNOW.
Except for situations that involve confidentiality, even those who are indirectly affected will likely want to know what is going on, and how it may affect them. This applies to your own staff, and those organizations that are related to you (ie. other branches within a division or department, client organizations, etc).
You are better off over-including people in your communication, than leaving people out.
What?
If you need to determine what to communicate, keep in mind what you are trying to accomplish through your communication about change. When you communicate you are trying to:
A) give information that will reduce uncertainty and ambiguity regarding the change.
B) Pre-empt the hidden information system of the grapevine, so you can ensure that incorrect anxiety provoking information is not spreading.
C) Provide forums for employees to communicate their reactions and concerns to you.
If you would like another rule of thumb, when deciding what should be communicated, communicate as much information about the change as is available to you. Obviously, you need to exercise judgement where there is confidential and/or sensitive information involved, or where your information may be unreliable.
Be aware that if you only have a small amount of information about a negative change, communicating it may increase anxiety levels and rampant speculation. You should also be aware that if you have preliminary information about a change, that others do also, and that it is likely that your employees will hear rumours regardless of what you disclose.
Finally, keep in mind that you are communicating messages about the facts of the change, and also about your own reactions to it. As a change leader, you must be aware that your staff will watch you carefully to guess how you are feeling about the change, and they will draw their own conclusions based on your behaviour. Sometimes these conclusions will be wrong and destructive.
If you choose to state your own reactions to the change, state them quickly (particularly if they are negative).
When?
The longer you wait to communicate details of change, the more likely you are to extend the period of adjustment. This is because it is very difficult to "keep a lid" on anything in government, and even if you are silent, your staff will likely hear vague things through the grapevine. Grapevine information tends to be sketchy enough that it creates a high degree of anxiety, and also a high degree of mistrust of management.
So, the earlier you communicate the less likely erroneous or upsetting information will come through the grapevine. Communicate as early as possible about change, but do not assume that once you have done this the job is over.
Communication should occur in anticipation of change, during the implementation, and after the change has been stabilized.
How?
Issue #1: Group or Single Meetings
Another decision you need to address is what needs to be communicated in group settings, and what needs to be addressed in one-on-one meetings with employees. What are the advantages of each approach?
Communicating in groups ensures that each person present is hearing the same information at the same time. Group communication also allows people to interact with each other about the changes and can help people develop a sense of team, particularly in a climate of adversity.
Communicating in groups also has some disadvantages. In many organizations there will be people who will not feel comfortable talking in a group context. The more "personal" the effects of the change, the more likely people will withdraw from the group process.
A second danger of group communication is that one or two particularly vocal and negative people can set the tone for the group, and foster unproductive negative discussion. While expression of concerns about change are healthy, the "doom- sayer" can cause this process to become destructive. For this reason, group communication needs to be managed with skill and expertise. Sometimes an external facilitator is necessary.
Finally, there are some issues that cannot be discussed within a group. For example, in downsizing situations, it is inappropriate to announce to a group that John and Mary are losing their jobs. When changes are likely to create a high degree of upset to individuals, they must be dealt with in private.
Communicating on a one-to-one basis has the advantage of privacy. When bad news is communicated, the person receiving the news is less pressured to withhold their reactions. One-to-one communication also allows more in-depth exploration of the person's feelings, ideas and reactions to the change.
A disadvantage to using one-to-one communication is that it may fragment your team. There is also a possibility that you will send slightly different messages to different staff members.
Prescription:
Most situations require both group communication and one-to-one communication. They compliment each other. Using only one or the other will create problems.
Below are some guidelines.
Use group communications if:
A)You need to ensure everybody hears the news at the same time.
B)You want to encourage group discussion to generate ideas and the problem solving process.
C)You want to increase the sense of team.
D)You wish to set the stage for individual meetings. For example, in a lay-off situation, you can call a short group meeting to announce the lay-offs generally, then immediately meet individually with each staff member to inform them of their status.
Use individual meetings if:
A)The changes are likely to cause a high degree of emotionalism that is better dealt with in private.
B)You want to ensure that shyer people have a chance to express themselves.
C)The changes involve elements that should remain confidential (pay or classification changes, employment status, etc).
D)You need to have detailed discussion about the change with specific people.
Issue #2: Written Or Oral
There is a tendency for people to avoid unpleasant interactions, and sometimes managers will use written communication to avoid the discomfort of dealing face to face with staff. While written communication can play an important role in communicating about change, it should not be used for this reason alone. Below are some guidelines regarding the use of written versus oral communication.
Oral communication is more appropriate when:
A) Receiver is not very interested in getting the message. Oral communication provides more opportunities for getting and keeping interest and attention.
B)Emotions are high. Oral communication provides chances for both you and the other person to let off steam, cool down, and create a climate for understanding.
C)You need feedback. It's easier to get feedback by observing body language and asking questions.
D)The other person is too busy or preoccupied to read. Oral communication provides better opportunities to gain attention.
E)You need to convince or persuade. Oral communication provides more flexibility, opportunity for emphasis, chances to listen to and remove resistance, and is more likely to affect people's attitudes.
F)The details and issues are complicated, and cannot be well expressed on paper.
Written communication is appropriate if:
A)You require a record of the communication for future reference.
B)Your staff will be referring to details of the change later.
C)You are communicating something with multiple parts or steps and where it is important that employees understand them.
Generally, it is wise to use both written and oral communication. The more emotional the issues, the more important it is to stress oral communication first. Written communication can be used as backup.
Concluding Comments On Change Leadership
As a change leader, communication is your primary and most important tool. We have attempted to outline some of the important parts of the communication process, but short of writing an entire book on the subject, it is difficult to discuss all the subtleties and issues about human communication.
There is no substitute for good judgement, and change leaders need to be reflective and thoughtful about the ways they communicate. There is also no substitute for LISTENING, and receiving feedback from your staff and colleagues about how you communicate. You may make communication mistakes, but the mark of an effective change leader is that these mistakes are quickly identified through feedback and discussion, and corrective action is taken.
Bacal & Associates offers help cards on a number of subjects.To view samples of the cards
What might these other messages be? Related to change the leader sends a good number of messages. These are listed below.
The leader communicates:
A) a sense of confidence and control (or lack thereof) to employees.
B)his or her own feelings about the change.
C) the degree to which he/she trusts the abilities of the employees to get through the change.
D) a sense of purpose and commitment (or lack thereof).
E) the degree to which he/she accepts the reactions and feelings of employees.
F) expectations regarding behaviour that is seen as appropriate or inappropriate (ie. rumour-mongering, back-room meetings).
G) the degree to which he/she is "connected to" employees situations and feelings or is "in-touch" with them.
It is clear that if the leader communicates effectively, he or she will be sending messages that decrease resistance, and encourage moving through the change more effectively and positively. The bottom line with all of this is if you screw up communicating with employees, even the smallest changes can result in ugly problems.
What Is Communication?
There are all kinds of models of communication, some basic and some complex. For our purposes communication can be described as CREATING UNDERSTANDING.
Through words, actions, body language, voice tone, and other processes you send many messages about yourself, the changes, and your organization. This constitutes precisely one-half of the communication process. The second half consists of verifying that the message you intended to send was actually received and interpreted the way you intended. The only way that you can be sure you have created understanding is to listen to the people you are communicating with, and make special effort to encourage them to reflect back to you what they have heard (and what they make of it).
Your work success hint! Did you know that most people habitually deal with conflict in a "usual way" even when the technique they prefer just doesn't fit the situation? You probably do the same.
The trick is to deal strategically with conflict and make conscious choices about which strategy to use. You can learn about the strengths and weaknesses of the five major conflict management approaches in Using Your Head To Manage Conflict . Click here for more.
Remember:
A) Although you communicate in a way that seems clear to you, the receiver of the communication, filters the information through a very complicated set of pre- conceptions, that can function to distort the message received.
B) Receivers listen selectively. They hear and process some things and gate out other things. That means that while you may have explained the "whole picture", is it likely that the whole thing wasn't received.
C)The ONLY way you can ensure that you have created common understanding is by asking the other people what they have heard, and what their reactions are to it.
Important Messages Regarding Changes
Since we have indicated that communication involves sending a variety of important messages, it is important that when you communicate about change you know what kind of messages you wish to send, and the what you want people to take away from your communication.
Whenever you communicate to employees about change, you should be striving to convey the following position.
A) that you are personally committed to the change, and seeing it through, even if it has negative consequences.
B) that you recognize that the change negatively impacts upon some people.
C) that you are open to discussion of the feelings of employees regarding the change.
D) that you are confident that the "team" can make it through the changes.
E) that you want and need input to make the changes work.
Sometimes you won't be committed to the change, or you won't be very confident that you and your staff can pull it off, particularly when the change is imposed from above. While some may disagree, it is important that you still convey an image of strength and commitment despite your own misgivings. The change leader has a role to play, and if you have mis-givings or strong negative emotional reactions of your own it may be more effective if you underplay them. If you show anger about a change, you may legitimize the same kind of negative behaviour in your staff.
While you shouldn't hide your own negative reactions completely, it is probably wise to keep them in the background by stating them in a matter of fact way and moving on.
Communication and Change -- Who, What, When, How?
As a change leader you need to make decisions about who you must communicate with, what needs to be communicated, when you will communicate and how you will do it. We will take a look at each of these in turn.
Who?
Managers sometimes have a tendency to communicate about change on a "need to know basis". However, effective change leaders recognize that almost any change will have effects on most people in an organization, no matter how removed they are from the change.
The basic rule of thumb is that communication should take place directly between the manager and employees when employees NEED TO KNOW OR WANT TO KNOW.
Except for situations that involve confidentiality, even those who are indirectly affected will likely want to know what is going on, and how it may affect them. This applies to your own staff, and those organizations that are related to you (ie. other branches within a division or department, client organizations, etc).
You are better off over-including people in your communication, than leaving people out.
What?
If you need to determine what to communicate, keep in mind what you are trying to accomplish through your communication about change. When you communicate you are trying to:
A) give information that will reduce uncertainty and ambiguity regarding the change.
B) Pre-empt the hidden information system of the grapevine, so you can ensure that incorrect anxiety provoking information is not spreading.
C) Provide forums for employees to communicate their reactions and concerns to you.
If you would like another rule of thumb, when deciding what should be communicated, communicate as much information about the change as is available to you. Obviously, you need to exercise judgement where there is confidential and/or sensitive information involved, or where your information may be unreliable.
Be aware that if you only have a small amount of information about a negative change, communicating it may increase anxiety levels and rampant speculation. You should also be aware that if you have preliminary information about a change, that others do also, and that it is likely that your employees will hear rumours regardless of what you disclose.
Finally, keep in mind that you are communicating messages about the facts of the change, and also about your own reactions to it. As a change leader, you must be aware that your staff will watch you carefully to guess how you are feeling about the change, and they will draw their own conclusions based on your behaviour. Sometimes these conclusions will be wrong and destructive.
If you choose to state your own reactions to the change, state them quickly (particularly if they are negative).
When?
The longer you wait to communicate details of change, the more likely you are to extend the period of adjustment. This is because it is very difficult to "keep a lid" on anything in government, and even if you are silent, your staff will likely hear vague things through the grapevine. Grapevine information tends to be sketchy enough that it creates a high degree of anxiety, and also a high degree of mistrust of management.
So, the earlier you communicate the less likely erroneous or upsetting information will come through the grapevine. Communicate as early as possible about change, but do not assume that once you have done this the job is over.
Communication should occur in anticipation of change, during the implementation, and after the change has been stabilized.
How?
Issue #1: Group or Single Meetings
Another decision you need to address is what needs to be communicated in group settings, and what needs to be addressed in one-on-one meetings with employees. What are the advantages of each approach?
Communicating in groups ensures that each person present is hearing the same information at the same time. Group communication also allows people to interact with each other about the changes and can help people develop a sense of team, particularly in a climate of adversity.
Communicating in groups also has some disadvantages. In many organizations there will be people who will not feel comfortable talking in a group context. The more "personal" the effects of the change, the more likely people will withdraw from the group process.
A second danger of group communication is that one or two particularly vocal and negative people can set the tone for the group, and foster unproductive negative discussion. While expression of concerns about change are healthy, the "doom- sayer" can cause this process to become destructive. For this reason, group communication needs to be managed with skill and expertise. Sometimes an external facilitator is necessary.
Finally, there are some issues that cannot be discussed within a group. For example, in downsizing situations, it is inappropriate to announce to a group that John and Mary are losing their jobs. When changes are likely to create a high degree of upset to individuals, they must be dealt with in private.
Communicating on a one-to-one basis has the advantage of privacy. When bad news is communicated, the person receiving the news is less pressured to withhold their reactions. One-to-one communication also allows more in-depth exploration of the person's feelings, ideas and reactions to the change.
A disadvantage to using one-to-one communication is that it may fragment your team. There is also a possibility that you will send slightly different messages to different staff members.
Prescription:
Most situations require both group communication and one-to-one communication. They compliment each other. Using only one or the other will create problems.
Below are some guidelines.
Use group communications if:
A)You need to ensure everybody hears the news at the same time.
B)You want to encourage group discussion to generate ideas and the problem solving process.
C)You want to increase the sense of team.
D)You wish to set the stage for individual meetings. For example, in a lay-off situation, you can call a short group meeting to announce the lay-offs generally, then immediately meet individually with each staff member to inform them of their status.
Use individual meetings if:
A)The changes are likely to cause a high degree of emotionalism that is better dealt with in private.
B)You want to ensure that shyer people have a chance to express themselves.
C)The changes involve elements that should remain confidential (pay or classification changes, employment status, etc).
D)You need to have detailed discussion about the change with specific people.
Issue #2: Written Or Oral
There is a tendency for people to avoid unpleasant interactions, and sometimes managers will use written communication to avoid the discomfort of dealing face to face with staff. While written communication can play an important role in communicating about change, it should not be used for this reason alone. Below are some guidelines regarding the use of written versus oral communication.
Oral communication is more appropriate when:
A) Receiver is not very interested in getting the message. Oral communication provides more opportunities for getting and keeping interest and attention.
B)Emotions are high. Oral communication provides chances for both you and the other person to let off steam, cool down, and create a climate for understanding.
C)You need feedback. It's easier to get feedback by observing body language and asking questions.
D)The other person is too busy or preoccupied to read. Oral communication provides better opportunities to gain attention.
E)You need to convince or persuade. Oral communication provides more flexibility, opportunity for emphasis, chances to listen to and remove resistance, and is more likely to affect people's attitudes.
F)The details and issues are complicated, and cannot be well expressed on paper.
Written communication is appropriate if:
A)You require a record of the communication for future reference.
B)Your staff will be referring to details of the change later.
C)You are communicating something with multiple parts or steps and where it is important that employees understand them.
Generally, it is wise to use both written and oral communication. The more emotional the issues, the more important it is to stress oral communication first. Written communication can be used as backup.
Concluding Comments On Change Leadership
As a change leader, communication is your primary and most important tool. We have attempted to outline some of the important parts of the communication process, but short of writing an entire book on the subject, it is difficult to discuss all the subtleties and issues about human communication.
There is no substitute for good judgement, and change leaders need to be reflective and thoughtful about the ways they communicate. There is also no substitute for LISTENING, and receiving feedback from your staff and colleagues about how you communicate. You may make communication mistakes, but the mark of an effective change leader is that these mistakes are quickly identified through feedback and discussion, and corrective action is taken.
Bacal & Associates offers help cards on a number of subjects.To view samples of the cards
Look Over Yonder Wall - Managing Change
One of my favorite blues songs is called "Look Over Yonder Wall", and while the song carries no sublime messages, the title provides good advice for managers. If present information is any indication, it appears that there will be continued fiscal restraint, cutbacks and possible layoffs for next fiscal year, This indeed creates some "walls" that managers need to "look over".
Changes of this nature pose difficult challenges for managers. It is a time of great stress, not only for employees but also for managers and executives. Unfortunately, because of the degree of stress there is a tendency to focus on the event, or "the wall", with insufficient attention paid to what comes before the wall, and what is to come after. It is important to understand that changes such as downsizing do not consist of an event isolated in time. Downsizing occurs within a flow of events which precede and occur after the actual change announcement.
An organization's ability to deal with drastic negative change will depend primarily on the degree to which management has demonstrated its competence in the past. If management has fostered a sense of trust and credibility, has communicated effectively, and has demonstrated effective planning and decision making skills, the change adjustment period will be shortened, and the organization will have a much easier time of normalizing what it does after the change implementation. If these and other components are not in place before major change, there is going to one heck of a bumpy ride.
It is important that management begin to lay the foundation for negative changes in advance. It is also important that managers be very clear what will be required of them in helping their organizations, and their staff, move beyond events like budget cuts, and staff losses. The stakes are high. Without adequate preparation and planning your organization can be put into a tailspin that can last for years.
In this issue, and over the next few months The Public Sector Manager will be concentrating on managing change. More specifically, we will deal with the high impact kinds of changes that will face all of us in the next 18 months. Much of the material you see is based upon the content of a course we are developing, called "Leading The Elephant Through The Swamp -- Managing Change Through Leadership".
So, for now, "look over yonder wall" to the future, and start planning for it. Begin to assemble the pieces you will need to manage this kind of change effectively.
Robert Bacal, Editor
Changes of this nature pose difficult challenges for managers. It is a time of great stress, not only for employees but also for managers and executives. Unfortunately, because of the degree of stress there is a tendency to focus on the event, or "the wall", with insufficient attention paid to what comes before the wall, and what is to come after. It is important to understand that changes such as downsizing do not consist of an event isolated in time. Downsizing occurs within a flow of events which precede and occur after the actual change announcement.
An organization's ability to deal with drastic negative change will depend primarily on the degree to which management has demonstrated its competence in the past. If management has fostered a sense of trust and credibility, has communicated effectively, and has demonstrated effective planning and decision making skills, the change adjustment period will be shortened, and the organization will have a much easier time of normalizing what it does after the change implementation. If these and other components are not in place before major change, there is going to one heck of a bumpy ride.
It is important that management begin to lay the foundation for negative changes in advance. It is also important that managers be very clear what will be required of them in helping their organizations, and their staff, move beyond events like budget cuts, and staff losses. The stakes are high. Without adequate preparation and planning your organization can be put into a tailspin that can last for years.
In this issue, and over the next few months The Public Sector Manager will be concentrating on managing change. More specifically, we will deal with the high impact kinds of changes that will face all of us in the next 18 months. Much of the material you see is based upon the content of a course we are developing, called "Leading The Elephant Through The Swamp -- Managing Change Through Leadership".
So, for now, "look over yonder wall" to the future, and start planning for it. Begin to assemble the pieces you will need to manage this kind of change effectively.
Robert Bacal, Editor
Seven Dynamics of Change
Whatever the kinds of change that people encounter, there are certain patterns of response that occur and re-occur. It is important that change leaders understand some of these patterns, since they are normal outcomes of the change process. Understanding them allows leaders to avoid over-reacting to the behaviours of people who, at times, seem to be reacting in mysterious, non-adaptive ways.
Ken Blanchard, well known management consultant, has described seven dynamics of change designed to help managers better address employee reactions to change. They are worth summarizing here.
People will feel awkward, ill-at-ease and self-conscious
Whenever you ask people to do things differently, you disrupt their habitual ways of doing things. This tends to make people feel awkward or uncomfortable as they struggle to eliminate the old responses and learn the new. Think back to your own experience and you will discover this theme. Whether it be learning to use a computer, the first time picking up your infant, or dealing with a new reporting relationship, recall the self-consciousness that you probably felt. People want to get it right, and fear that they will appear inadequate.
People initially focus on what they have to give up
Even for positive changes such as promotions, or those that result in more autonomy or authority, people will concentrate on what they will be losing. As a change leader you need to acknowledge the loss of the old ways, and not get frustrated at what may seem to be an irrational or tentative response to change.
People will feel alone even if everyone else is going through the same change
Your work success hint! It's not IF you fight or disagree. It's not how often you argue. It's not WHAT you argue about. It's about HOW you argue, fight or disagree, whether at home or at work. Learn to disagree, argue and fight fairly and you WILL see a difference in your relationships, and how others perceive you. Learn the rules of fighting fair and fair disagreement by clicking here.
Everyone feels (or wants to feel) that their situation is unique and special. Unfortunately, this tends to increase the sense of isolation for people undergoing change. It is important for the change leader to be proactive and gentle in showing that the employee's situation is understood. If employees see YOU as emotionally and practically supportive during the tough times your position will be enhanced and the change will be easier.
People can handle only so much change
On a personal level, people who undergo too much change within too short a time will become dysfunctional, and in some cases may become physically sick. While some changes are beyond our control, it is important not to pile change upon change upon change. While changes such as downsizing bring opportunity to do other positive things, the timing of additional changes is important. If you are contemplating introducing changes (that are under your control), it may be a good idea to bounce your ideas off employees. A good question to ask is "How would you feel if....."
People are at different levels of readiness for change
Some people thrive and change. It's exciting to them. Others don't. It's threatening to them. Understand that any change will have supporters and people who have difficulty adapting. In time many people who resist initially will come onside. Consider that those people who are more ready for the change can influence others who are less ready. Open discussion allows this influence process to occur.
People will be concerned that they don't have enough resources
People perceive that change takes time and effort, even if it has the long term effect of reducing workload. They are correct that there is a learning time for most change, and that this may affect their work. It is important for change leaders to acknowledge that this may occur, and to offer practical support if possible. In the downsizing scenario this will be even more crucial, since resources themselves are cut. Consider following the downsizing with a worksmart process, whereby job tasks are
reviewed to examine whether they are still necessary.
If you take the pressure off, people will revert to their old behaviour
If people perceive that you are not serious about doing things the new way, they will go back to the old way. Sometimes this ill be in the open, and sometimes this will be covert. While Blanchard uses the word pressure, I prefer to think of it in terms of leadership role. The leader must remind people that there is a new course, and that the new course will remain. Coaching towards the new ways is also important.
Ken Blanchard, well known management consultant, has described seven dynamics of change designed to help managers better address employee reactions to change. They are worth summarizing here.
People will feel awkward, ill-at-ease and self-conscious
Whenever you ask people to do things differently, you disrupt their habitual ways of doing things. This tends to make people feel awkward or uncomfortable as they struggle to eliminate the old responses and learn the new. Think back to your own experience and you will discover this theme. Whether it be learning to use a computer, the first time picking up your infant, or dealing with a new reporting relationship, recall the self-consciousness that you probably felt. People want to get it right, and fear that they will appear inadequate.
People initially focus on what they have to give up
Even for positive changes such as promotions, or those that result in more autonomy or authority, people will concentrate on what they will be losing. As a change leader you need to acknowledge the loss of the old ways, and not get frustrated at what may seem to be an irrational or tentative response to change.
People will feel alone even if everyone else is going through the same change
Your work success hint! It's not IF you fight or disagree. It's not how often you argue. It's not WHAT you argue about. It's about HOW you argue, fight or disagree, whether at home or at work. Learn to disagree, argue and fight fairly and you WILL see a difference in your relationships, and how others perceive you. Learn the rules of fighting fair and fair disagreement by clicking here.
Everyone feels (or wants to feel) that their situation is unique and special. Unfortunately, this tends to increase the sense of isolation for people undergoing change. It is important for the change leader to be proactive and gentle in showing that the employee's situation is understood. If employees see YOU as emotionally and practically supportive during the tough times your position will be enhanced and the change will be easier.
People can handle only so much change
On a personal level, people who undergo too much change within too short a time will become dysfunctional, and in some cases may become physically sick. While some changes are beyond our control, it is important not to pile change upon change upon change. While changes such as downsizing bring opportunity to do other positive things, the timing of additional changes is important. If you are contemplating introducing changes (that are under your control), it may be a good idea to bounce your ideas off employees. A good question to ask is "How would you feel if....."
People are at different levels of readiness for change
Some people thrive and change. It's exciting to them. Others don't. It's threatening to them. Understand that any change will have supporters and people who have difficulty adapting. In time many people who resist initially will come onside. Consider that those people who are more ready for the change can influence others who are less ready. Open discussion allows this influence process to occur.
People will be concerned that they don't have enough resources
People perceive that change takes time and effort, even if it has the long term effect of reducing workload. They are correct that there is a learning time for most change, and that this may affect their work. It is important for change leaders to acknowledge that this may occur, and to offer practical support if possible. In the downsizing scenario this will be even more crucial, since resources themselves are cut. Consider following the downsizing with a worksmart process, whereby job tasks are
reviewed to examine whether they are still necessary.
If you take the pressure off, people will revert to their old behaviour
If people perceive that you are not serious about doing things the new way, they will go back to the old way. Sometimes this ill be in the open, and sometimes this will be covert. While Blanchard uses the word pressure, I prefer to think of it in terms of leadership role. The leader must remind people that there is a new course, and that the new course will remain. Coaching towards the new ways is also important.
Sunday, August 22, 2010
Business pleads for 2010 trade deal amid scepticism
Global business leaders appealed to governments on Thursday to make good on their commitment to conclude stalled trade liberalization talks this year and boost a world economic recovery. But trade negotiators were skeptical of the political will to overcome disputes between the United States and key emerging nations that thwarted a deal in 2008.
2010 Will Be a Stock Picking Market
Stock picking in 2009 was a year when even monkeys could have made a lot of money in the stock market.
Maybe you've heard the story from the 1980s, which was argued in a popular investing book, that a bunch of monkeys throwing darts at a list of stocks could make stock picking that would beat those of investment professionals.
Last year, as the considerable stock rally lifted all boats, everyone from the professionals to those who didn't have a clue (including monkeys) did quite well for themselves as long as they were invested in equities.
Stock picking in 2010 is shaping up to be quite a different stock picking market. It's rare to see two consecutive years of huge gains, which means 2010 will likely see a modest, if any, return. 2010 is going to be a stock picker's market. Those in certain sectors, and stocks, will perform better than others.
3 Ways for Stock Picking That Could See Upside in 2010
1) Look For Growth Overseas
Yes, international investing has been hot. In 2009, emerging market stocks soared on hopes of the recovery. However, there is always a concern that this trade is getting overplayed.
But stock picking has an advantage over those who simply buy an index or a basket of stocks from a particular country. They can choose companies that have a growth story and attractive valuations. There are plenty of Chinese companies that are not connected to the overheating real estate market and that are even considered value stocks, with low price-to-earnings ratios. For instance, China will soon surpass the United States as the largest car market. What Chinese companies are poised to benefit from automobile demand?
Investors can also play the international growth story by choosing American companies that have a large international presence. Many multinational companies with famous brand names do 50% or more of their business in international markets.
2) Commodities Have Made a Comeback
Commodities were the big story of 2008 as crude oil hit an all-time record. Commodities prices were crushed in the global recession. But in 2009, a slow comeback began that appears to be continuing into 2010.
As the recovery takes hold, commodities will be one of the first areas to show a turnaround as manufacturers ramp up production to meet growing demand.
Investors can invest in the area through any number of commodities and commodities-related stocks, including energy companies, oil services companies, miners and agriculture businesses.
3) Don't Forget the Building Blocks
While the recovery appears to be taking hold, the companies that supply the building blocks are still in a good position to benefit from it, especially as government stimulus programs continue to wind their way through the global economy.
Look at machinery companies, construction firms, equipment manufacturers, and chemical companies. We've already seen earnings jump in the chemical sector, which is a reflection of growing demand.
Putting it All Together to Make an Exciting Stock Picking Portfolio for 2010
We used all 3 of these strategies at Zacks to formulate our Top 10 Stocks for 2010. We started with a large universe of stocks and used both Zacks Rank and Zacks Recommendations to narrow the list.
But then the arduous part began. We used our stock picking talents to put together 10 stocks that, for the first time, are heavily weighted towards international stocks and American companies that have substantial international business. We weren't afraid of the emerging markets. We ended up stock picking several companies that we hope will continue to grow as the living standards rise in those countries.
Stock picking in 2010 will be an interesting year to be an investor. The rising tide has lifted all the boats. Hopefully, you can tap into those areas that are poised to benefit from the recovery and growth in the global economy.
Maybe you've heard the story from the 1980s, which was argued in a popular investing book, that a bunch of monkeys throwing darts at a list of stocks could make stock picking that would beat those of investment professionals.
Last year, as the considerable stock rally lifted all boats, everyone from the professionals to those who didn't have a clue (including monkeys) did quite well for themselves as long as they were invested in equities.
Stock picking in 2010 is shaping up to be quite a different stock picking market. It's rare to see two consecutive years of huge gains, which means 2010 will likely see a modest, if any, return. 2010 is going to be a stock picker's market. Those in certain sectors, and stocks, will perform better than others.
3 Ways for Stock Picking That Could See Upside in 2010
1) Look For Growth Overseas
Yes, international investing has been hot. In 2009, emerging market stocks soared on hopes of the recovery. However, there is always a concern that this trade is getting overplayed.
But stock picking has an advantage over those who simply buy an index or a basket of stocks from a particular country. They can choose companies that have a growth story and attractive valuations. There are plenty of Chinese companies that are not connected to the overheating real estate market and that are even considered value stocks, with low price-to-earnings ratios. For instance, China will soon surpass the United States as the largest car market. What Chinese companies are poised to benefit from automobile demand?
Investors can also play the international growth story by choosing American companies that have a large international presence. Many multinational companies with famous brand names do 50% or more of their business in international markets.
2) Commodities Have Made a Comeback
Commodities were the big story of 2008 as crude oil hit an all-time record. Commodities prices were crushed in the global recession. But in 2009, a slow comeback began that appears to be continuing into 2010.
As the recovery takes hold, commodities will be one of the first areas to show a turnaround as manufacturers ramp up production to meet growing demand.
Investors can invest in the area through any number of commodities and commodities-related stocks, including energy companies, oil services companies, miners and agriculture businesses.
3) Don't Forget the Building Blocks
While the recovery appears to be taking hold, the companies that supply the building blocks are still in a good position to benefit from it, especially as government stimulus programs continue to wind their way through the global economy.
Look at machinery companies, construction firms, equipment manufacturers, and chemical companies. We've already seen earnings jump in the chemical sector, which is a reflection of growing demand.
Putting it All Together to Make an Exciting Stock Picking Portfolio for 2010
We used all 3 of these strategies at Zacks to formulate our Top 10 Stocks for 2010. We started with a large universe of stocks and used both Zacks Rank and Zacks Recommendations to narrow the list.
But then the arduous part began. We used our stock picking talents to put together 10 stocks that, for the first time, are heavily weighted towards international stocks and American companies that have substantial international business. We weren't afraid of the emerging markets. We ended up stock picking several companies that we hope will continue to grow as the living standards rise in those countries.
Stock picking in 2010 will be an interesting year to be an investor. The rising tide has lifted all the boats. Hopefully, you can tap into those areas that are poised to benefit from the recovery and growth in the global economy.
In Iraq's troubles, an exchange eyes growth
In rows of black chairs, elderly men sit chatting, casting the occasional glance at projection screens displaying the latest market movements on the Iraq Stock Exchange. Occasionally, one gets up and wanders to the back of the darkened room, by the glass divider behind which the brokers sit. There's no one screaming orders or waving a fistful of tickets.
The relative inactivity stands in stark contrast to the hopes Iraqi and American officials had when the U.S.-backed exchange was reborn in 2004. Back then, expectations were that the toppling of Saddam Hussein a year earlier and the country's reabsorption into the international community would bring with it an economic reflourishing — and the bourse was touted as a tool to tap into the country's potential.
Instead, political deadlock and security fears have left foreign investors skittish about pumping money into Iraq, even though tens of billions of dollars are needed to rebuild everything from a dilapidated infrastructure to the private sector. Unemployment remains high, as does inflation, though it is far below the over 60 percent level seen just a few years ago.
And the stock market, a key economic engine in most major economies, remains another item in a list of postwar Iraq's unrealized hopes.
At the time of its launch, just over a dozen companies were listed on white boards hanging on the trading floor, located in a Baghdad hotel restaurant. Officials at the time projected that within a month, it would have 120 companies listed.
Six years later, only 85 companies are listed.
Its successes have been relative. It has moved into its own building. Instead of two trading sessions per week, it's up to a full five days. Most importantly, an electronic trading system has replaced the white boards.
"Every night, before I go to sleep, I thank God that I managed ... for the first time in the history of the Iraqi exchange, to introduce electronic trading," said Taha Abdulsalam, the ISX's chief executive.
And even amid the worst of Iraq's violence, in 2006 and 2007, when car bombings, assassinations and kidnappings were rife, investors came to every session. "We didn't suspend operations a single day," Abdulsalam said.
But it's clear much remains to be done if the exchange is to meet the hopes of its founders.
In its heady early weeks of trading in 2004, about $10 million in shares changed hands per session and share prices surged by as much as 600 percent. Now, with over three times the number of companies listed, the value of average daily trading is about $1 million, Abdulsalam said, adding that the market capitalization of the companies listed on the exchange stands at about $3 billion.
That's a level which Jan Randolph, director of sovereign risk analysis at IHS Global Insight, describes as "comparable to a medium sized supermarket" chain in the West.
"It's still very much of a frontier market," said Randolph. "The lack of data and liquidity means they ... wouldn't normally be included in any portfolio index of emerging markets."
Bank shares are the most actively traded, accounting for between 40 to 75 percent of the daily activity.
On Aug. 12, for example, about 564.2 million dinars ($505,109) worth of bank shares changed hands out of a total trading value of 921 million dinars ($824,300). There were a total of 230 trades executed on the market.
Mohammed Jamali, a 60-year-old investor and analyst, points to the rows of seats where the elderly men stare at projection screens. The large screens were installed because many complained their failing vision made it hard for them to read the flat screen TVs suspended from the wall in the back of the trading hall.
"About 10 percent of them are actively trading — and they do about 90 percent of the business," said Jamali. "The rest are just waiting around."
"Sometimes, they see an opportunity and they take it. They're being cautious."
Overall, the ISX's benchmark index is at around 92 points, down about 7.9 percent on a year-to-date basis. In relative terms, that's still better than the performance of the Dubai Financial Market and Abu Dhabi's exchange, regionally — though both are far larger markets.
The same security and political issues that have stunted development in much of the country weigh on the ISX's growth.
Foreign investors account for about four percent of daily trading in the market, Abdulsalam said. Officials hope the to see that number grow as major investment funds enter the market once a custodian bank is eventually set up.
But such changes need political decisions — slow in the best of times, and worse with the deadlock over forming a new government since March 7's inconclusive elections.
Investors want to see "the new government's economic face — it's economic policies," said Ali Jamal, a manager with brokerage firm Jawhara. The delay in a new government "directly affects the trading."
Infrastructure issues also hurt. Abdulsalam describes the notoriously spotty electricity service as Iraq's "fatal problem," raising costs for companies and households.
For now, Abdulsalam is looking ahead at what can be done. He wants to gradually have all 45 licensed brokerage houses work from their offices more and have the investors conduct their business over the phone or outside the exchange.
"This is the civilized thing (to do) ... It will reduce the security and other risks," he said.
The relative inactivity stands in stark contrast to the hopes Iraqi and American officials had when the U.S.-backed exchange was reborn in 2004. Back then, expectations were that the toppling of Saddam Hussein a year earlier and the country's reabsorption into the international community would bring with it an economic reflourishing — and the bourse was touted as a tool to tap into the country's potential.
Instead, political deadlock and security fears have left foreign investors skittish about pumping money into Iraq, even though tens of billions of dollars are needed to rebuild everything from a dilapidated infrastructure to the private sector. Unemployment remains high, as does inflation, though it is far below the over 60 percent level seen just a few years ago.
And the stock market, a key economic engine in most major economies, remains another item in a list of postwar Iraq's unrealized hopes.
At the time of its launch, just over a dozen companies were listed on white boards hanging on the trading floor, located in a Baghdad hotel restaurant. Officials at the time projected that within a month, it would have 120 companies listed.
Six years later, only 85 companies are listed.
Its successes have been relative. It has moved into its own building. Instead of two trading sessions per week, it's up to a full five days. Most importantly, an electronic trading system has replaced the white boards.
"Every night, before I go to sleep, I thank God that I managed ... for the first time in the history of the Iraqi exchange, to introduce electronic trading," said Taha Abdulsalam, the ISX's chief executive.
And even amid the worst of Iraq's violence, in 2006 and 2007, when car bombings, assassinations and kidnappings were rife, investors came to every session. "We didn't suspend operations a single day," Abdulsalam said.
But it's clear much remains to be done if the exchange is to meet the hopes of its founders.
In its heady early weeks of trading in 2004, about $10 million in shares changed hands per session and share prices surged by as much as 600 percent. Now, with over three times the number of companies listed, the value of average daily trading is about $1 million, Abdulsalam said, adding that the market capitalization of the companies listed on the exchange stands at about $3 billion.
That's a level which Jan Randolph, director of sovereign risk analysis at IHS Global Insight, describes as "comparable to a medium sized supermarket" chain in the West.
"It's still very much of a frontier market," said Randolph. "The lack of data and liquidity means they ... wouldn't normally be included in any portfolio index of emerging markets."
Bank shares are the most actively traded, accounting for between 40 to 75 percent of the daily activity.
On Aug. 12, for example, about 564.2 million dinars ($505,109) worth of bank shares changed hands out of a total trading value of 921 million dinars ($824,300). There were a total of 230 trades executed on the market.
Mohammed Jamali, a 60-year-old investor and analyst, points to the rows of seats where the elderly men stare at projection screens. The large screens were installed because many complained their failing vision made it hard for them to read the flat screen TVs suspended from the wall in the back of the trading hall.
"About 10 percent of them are actively trading — and they do about 90 percent of the business," said Jamali. "The rest are just waiting around."
"Sometimes, they see an opportunity and they take it. They're being cautious."
Overall, the ISX's benchmark index is at around 92 points, down about 7.9 percent on a year-to-date basis. In relative terms, that's still better than the performance of the Dubai Financial Market and Abu Dhabi's exchange, regionally — though both are far larger markets.
The same security and political issues that have stunted development in much of the country weigh on the ISX's growth.
Foreign investors account for about four percent of daily trading in the market, Abdulsalam said. Officials hope the to see that number grow as major investment funds enter the market once a custodian bank is eventually set up.
But such changes need political decisions — slow in the best of times, and worse with the deadlock over forming a new government since March 7's inconclusive elections.
Investors want to see "the new government's economic face — it's economic policies," said Ali Jamal, a manager with brokerage firm Jawhara. The delay in a new government "directly affects the trading."
Infrastructure issues also hurt. Abdulsalam describes the notoriously spotty electricity service as Iraq's "fatal problem," raising costs for companies and households.
For now, Abdulsalam is looking ahead at what can be done. He wants to gradually have all 45 licensed brokerage houses work from their offices more and have the investors conduct their business over the phone or outside the exchange.
"This is the civilized thing (to do) ... It will reduce the security and other risks," he said.
Leading Those That Remain
Downsizing...Right-sizing, lay-offs or workforce adjustment, whatever the current "correct" terminology, the fact remains that it is the most difficult thing that managers will deal with in their careers.
There are two (only two?!) issues regarding downsizing. First, the period of downsizing brings with it incredible anxiety for everyone. Both managers and employees have to "get through" this period where downsizing is announced and individuals are notified. While this is the period of greatest short term stress, it is an acute situation.
The second problem, and one of much more long term significance is the issue of those that remain. Somehow managers have to deal with the fall-out from the downsizing process, and move their organizations beyond the grief, the anger and the loss of morale that characterizes these major organizational events. It is those that remain that will determine what happens to the organization. We are going to talk about the long term issues here.
The First Few Weeks
In the first few weeks after downsizing even those who still have jobs will feel a lot of difficult things. Grief, anger, sense of betrayal, and depression are common "normal" reactions. Typically productivity drops as people work through their feelings by talking with each other.
This applies to you as the leader of your organization. However, as a leader you have an important role to play in helping employees get past the initial reactions.
During this time, it is important that you do not pressure employees unduly, either in the areas of increasing productivity, or in expressing feelings about the change. Some people want to talk, others not. Some will work harder and some will not. Your job is to help by gently talking to them, both in group settings and individually about their reactions, and how you can help.
Listening is key here. Ask questions and keep your own comments to a minimum, and don't exhort or pressure people. By showing concern and interest, you will be working towards repairing the sense of broken trust that accompanies downsizing.
During this period, you need to take stock of your own emotional situation. Your ability to lead people through the tough times will depend on your own physical and emotional health. Try not to cut yourself off. Talking to colleagues outside your organization is a good idea, or at least, venting your own feelings with someone unconnected with your organization. If you find yourself plagued by sleeplessness, mood swings and depression and guilt, don't hesitate to take advantage of support services that are available.
Normalizing
The initial shock of downsizing is likely to linger for some time, certainly for more than the two weeks mentioned. Unfortunately, you and your staff have goals to accomplish, people to serve. At some point there is a need to get on with it, to normalize the situation.
It is difficult for leaders to determine when it is time to start sending the message that "business as usual" must prevail. Too early and you alienate and anger staff...too late and you end up wallowing. It is best to start normalizing slowly and gently.
Your work success hint! It's not IF you fight or disagree. It's not how often you argue. It's not WHAT you argue about. It's about HOW you argue, fight or disagree, whether at home or at work. Learn to disagree, argue and fight fairly and you WILL see a difference in your relationships, and how others perceive you. Learn the rules of fighting fair and fair disagreement by clicking here.
The situation in your organization can be helped if you start to address any operational problems that might have been caused by the downsizing. Any shifting in staff will result in new challenges in terms of doing business, and there can be some confusion and chaos regarding how you are going to go about doing "business" with a smaller staff complement.
It is important that the chaos be reduced. Normally this will mean clarifying with staff any concerns they have about getting the business done, and problem-solving around the issues. The longer that there is confusion, the more likely there will be permanent effects on organizational health and morale.
During this period, both group problem solving meetings and individual discussions are appropriate and recommended. Bring ALL staff into the discussion, and make sure everyone is clear what they should be doing.
While the feelings of employees are important during this phase, staff need to be slowly moved back to getting the job done. By getting clear understandings of the changes, you will create a climate of stability, which is necessary for the "recovery" of people in the organization.
Futuring
The first part of adjusting to downsizing is to address the feelings of those that remain. The second is to focus on dealing with the operational problems stemming from the changes, and the third step deals with the future.
People need a vision of the future, a sense of what they are trying to achieve, and they also need to know that they are part of a goal-oriented team pulling in the same direction. While we have talked above about "getting through", futuring involves people in trying to create (or confirm) a vision of the organization, and it's goals, values, purpose, etc. It is the creation and commitment to these things that will work to revitalize an organization that has been downsized.
The futuring process is usually a group process, and can extend to undertaking strategic planning, re-examination of priorities, operational planning, and review of role and mission. By doing these kinds of things you promote a sense that the future will bring positive, exciting things. Organizations that have lost staff need to have that sense if they are to rebuild.
Recap
Leading staff through downsizing requires the leader to exercise superior judgement and decision-making. It's a complicated task that involves the leader in recognizing the natural reactions of those that remain in the organization, and determining the right timing for moving the organization from the emotional reactions to a focus on the present and future. While it is difficult, the consequences of mis-managing or under-managing the situation are severe. Both management and staff will suffer if the timing is wrong, or managers deny or avoid dealing with the fall-out from downsizing.
There are two (only two?!) issues regarding downsizing. First, the period of downsizing brings with it incredible anxiety for everyone. Both managers and employees have to "get through" this period where downsizing is announced and individuals are notified. While this is the period of greatest short term stress, it is an acute situation.
The second problem, and one of much more long term significance is the issue of those that remain. Somehow managers have to deal with the fall-out from the downsizing process, and move their organizations beyond the grief, the anger and the loss of morale that characterizes these major organizational events. It is those that remain that will determine what happens to the organization. We are going to talk about the long term issues here.
The First Few Weeks
In the first few weeks after downsizing even those who still have jobs will feel a lot of difficult things. Grief, anger, sense of betrayal, and depression are common "normal" reactions. Typically productivity drops as people work through their feelings by talking with each other.
This applies to you as the leader of your organization. However, as a leader you have an important role to play in helping employees get past the initial reactions.
During this time, it is important that you do not pressure employees unduly, either in the areas of increasing productivity, or in expressing feelings about the change. Some people want to talk, others not. Some will work harder and some will not. Your job is to help by gently talking to them, both in group settings and individually about their reactions, and how you can help.
Listening is key here. Ask questions and keep your own comments to a minimum, and don't exhort or pressure people. By showing concern and interest, you will be working towards repairing the sense of broken trust that accompanies downsizing.
During this period, you need to take stock of your own emotional situation. Your ability to lead people through the tough times will depend on your own physical and emotional health. Try not to cut yourself off. Talking to colleagues outside your organization is a good idea, or at least, venting your own feelings with someone unconnected with your organization. If you find yourself plagued by sleeplessness, mood swings and depression and guilt, don't hesitate to take advantage of support services that are available.
Normalizing
The initial shock of downsizing is likely to linger for some time, certainly for more than the two weeks mentioned. Unfortunately, you and your staff have goals to accomplish, people to serve. At some point there is a need to get on with it, to normalize the situation.
It is difficult for leaders to determine when it is time to start sending the message that "business as usual" must prevail. Too early and you alienate and anger staff...too late and you end up wallowing. It is best to start normalizing slowly and gently.
Your work success hint! It's not IF you fight or disagree. It's not how often you argue. It's not WHAT you argue about. It's about HOW you argue, fight or disagree, whether at home or at work. Learn to disagree, argue and fight fairly and you WILL see a difference in your relationships, and how others perceive you. Learn the rules of fighting fair and fair disagreement by clicking here.
The situation in your organization can be helped if you start to address any operational problems that might have been caused by the downsizing. Any shifting in staff will result in new challenges in terms of doing business, and there can be some confusion and chaos regarding how you are going to go about doing "business" with a smaller staff complement.
It is important that the chaos be reduced. Normally this will mean clarifying with staff any concerns they have about getting the business done, and problem-solving around the issues. The longer that there is confusion, the more likely there will be permanent effects on organizational health and morale.
During this period, both group problem solving meetings and individual discussions are appropriate and recommended. Bring ALL staff into the discussion, and make sure everyone is clear what they should be doing.
While the feelings of employees are important during this phase, staff need to be slowly moved back to getting the job done. By getting clear understandings of the changes, you will create a climate of stability, which is necessary for the "recovery" of people in the organization.
Futuring
The first part of adjusting to downsizing is to address the feelings of those that remain. The second is to focus on dealing with the operational problems stemming from the changes, and the third step deals with the future.
People need a vision of the future, a sense of what they are trying to achieve, and they also need to know that they are part of a goal-oriented team pulling in the same direction. While we have talked above about "getting through", futuring involves people in trying to create (or confirm) a vision of the organization, and it's goals, values, purpose, etc. It is the creation and commitment to these things that will work to revitalize an organization that has been downsized.
The futuring process is usually a group process, and can extend to undertaking strategic planning, re-examination of priorities, operational planning, and review of role and mission. By doing these kinds of things you promote a sense that the future will bring positive, exciting things. Organizations that have lost staff need to have that sense if they are to rebuild.
Recap
Leading staff through downsizing requires the leader to exercise superior judgement and decision-making. It's a complicated task that involves the leader in recognizing the natural reactions of those that remain in the organization, and determining the right timing for moving the organization from the emotional reactions to a focus on the present and future. While it is difficult, the consequences of mis-managing or under-managing the situation are severe. Both management and staff will suffer if the timing is wrong, or managers deny or avoid dealing with the fall-out from downsizing.
Front and Center - Leadership Critical To Managing Change
When change is imposed (as in downsizing scenarios), clearly the most important determinant of "getting through the swamp", is the ability of leadership to...well, lead. The literature on the subject indicates that the nature of the change is secondary to the perceptions that employees have regarding the ability, competence, and credibility of senior and middle management.
If you are to manage change effectively, you need to be aware that there are three distinct times zones where leadership is important. We can call these Preparing For the Journey, Slogging Through The Swamp, and After Arrival. We will look more carefully at each of these.
The Role of Leadership
In an organization where there is faith in the abilities of formal leaders, employees will look towards the leaders for a number of things. During drastic change times, employees will expect effective and sensible planning, confident and effective decision-making, and regular, complete communication that is timely. Also during these times of change, employees will perceive leadership as supportive, concerned and committed to their welfare, while at the same time recognizing that tough decisions need to be made. The best way to summarize is that there is a climate of trust between leader and the rest of the team. The existence of this trust, brings hope for better times in the future, and that makes coping with drastic change much easier.
In organizations characterized by poor leadership, employees expect nothing positive. In a climate of distrust, employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone's best interests. Poor leadership means an absence of hope, which, if allowed to go on for too long, results in an organization becoming completely nonfunctioning. The organization must deal with the practical impact of unpleasant change, but more importantly, must labor under the weight of employees who have given up, have no faith in the system or in the ability of leaders to turn the organization around.
Leadership before, during and after change implementation is THE key to getting through the swamp. Unfortunately, if haven't established a track record of effective leadership, by the time you have to deal with difficult changes, it may be too late.
Preparing For The Journey
It would be a mistake to assume that preparing for the journey takes place only after the destination has been defined or chosen. When we talk about preparing for the change journey, we are talking about leading in a way that lays the foundation or groundwork for ANY changes that may occur in the future. Preparing is about building resources, by building healthy organizations in the first place. Much like healthy people, who are better able to cope with infection or disease than unhealthy people, organization that are healthy in the first place are better able to deal with change.
As a leader you need to establish credibility and a track record of effective decision making, so that there is trust in your ability to figure out what is necessary to bring the organization through.
Slogging Through The Swamp
Leaders play a critical role during change implementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity about direction and mandate. It can be a period of emotionalism, with employees grieving for what is lost, and initially unable to look to the future.
During this period, effective leaders need to focus on two things. First, the feelings and confusion of employees must be acknowledged and validated. Second, the leader must work with employees to begin creating a new vision of the altered workplace, and helping employees to understand the direction of the future. Focusing only on feelings, may result in wallowing. That is why it is necessary to begin the movement into the new ways or situations. Focusing only on the new vision may result in the perception that the leader is out of touch, cold and uncaring. A key part of leadership in this phase is knowing when to focus on the pain, and when to focus on building and moving into the future.
After Arrival
In a sense you never completely arrive, but here we are talking about the period where the initial instability of massive change has been reduced. People have become less emotional, and more stable, and with effective leadership during the previous phases, are now more open to locking in to the new directions, mandate and ways of doing things.
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
This is an ideal time for leaders to introduce positive new change, such as examination of unwieldy procedures or Total Quality Management. The critical thing here is that leaders must now offer hope that the organization is working towards being better, by solving problems and improving the quality of work life. While the new vision of the organization may have begun while people were slogging through the swamp, this is the time to complete the process, and make sure that people buy into it, and understand their roles in this new organization.
Conclusion
Playing a leadership role in the three phases is not easy. Not only do you have a responsibility to lead, but as an employee yourself, you have to deal with your own reactions to the change, and your role in it. However, if you are ineffective in leading change, you will bear a very heavy personal load. Since you are accountable for the performance of your unit, you will have to deal with the ongoing loss of productivity that can result from poorly managed change, not to mention the potential impact on your own enjoyment of your job.
If you are to manage change effectively, you need to be aware that there are three distinct times zones where leadership is important. We can call these Preparing For the Journey, Slogging Through The Swamp, and After Arrival. We will look more carefully at each of these.
The Role of Leadership
In an organization where there is faith in the abilities of formal leaders, employees will look towards the leaders for a number of things. During drastic change times, employees will expect effective and sensible planning, confident and effective decision-making, and regular, complete communication that is timely. Also during these times of change, employees will perceive leadership as supportive, concerned and committed to their welfare, while at the same time recognizing that tough decisions need to be made. The best way to summarize is that there is a climate of trust between leader and the rest of the team. The existence of this trust, brings hope for better times in the future, and that makes coping with drastic change much easier.
In organizations characterized by poor leadership, employees expect nothing positive. In a climate of distrust, employees learn that leaders will act in indecipherable ways and in ways that do not seem to be in anyone's best interests. Poor leadership means an absence of hope, which, if allowed to go on for too long, results in an organization becoming completely nonfunctioning. The organization must deal with the practical impact of unpleasant change, but more importantly, must labor under the weight of employees who have given up, have no faith in the system or in the ability of leaders to turn the organization around.
Leadership before, during and after change implementation is THE key to getting through the swamp. Unfortunately, if haven't established a track record of effective leadership, by the time you have to deal with difficult changes, it may be too late.
Preparing For The Journey
It would be a mistake to assume that preparing for the journey takes place only after the destination has been defined or chosen. When we talk about preparing for the change journey, we are talking about leading in a way that lays the foundation or groundwork for ANY changes that may occur in the future. Preparing is about building resources, by building healthy organizations in the first place. Much like healthy people, who are better able to cope with infection or disease than unhealthy people, organization that are healthy in the first place are better able to deal with change.
As a leader you need to establish credibility and a track record of effective decision making, so that there is trust in your ability to figure out what is necessary to bring the organization through.
Slogging Through The Swamp
Leaders play a critical role during change implementation, the period from the announcement of change through the installation of the change. During this middle period the organization is the most unstable, characterized by confusion, fear, loss of direction, reduced productivity, and lack of clarity about direction and mandate. It can be a period of emotionalism, with employees grieving for what is lost, and initially unable to look to the future.
During this period, effective leaders need to focus on two things. First, the feelings and confusion of employees must be acknowledged and validated. Second, the leader must work with employees to begin creating a new vision of the altered workplace, and helping employees to understand the direction of the future. Focusing only on feelings, may result in wallowing. That is why it is necessary to begin the movement into the new ways or situations. Focusing only on the new vision may result in the perception that the leader is out of touch, cold and uncaring. A key part of leadership in this phase is knowing when to focus on the pain, and when to focus on building and moving into the future.
After Arrival
In a sense you never completely arrive, but here we are talking about the period where the initial instability of massive change has been reduced. People have become less emotional, and more stable, and with effective leadership during the previous phases, are now more open to locking in to the new directions, mandate and ways of doing things.
Your work success hint! Did you know that a high percentage of conflict at work and at home is a result of ineffective use of language? It's true. The best part is that you can learn to alter your communication and language so that what you say is perceived as more cooperative, and less confrontational.
The result? Less conflict incidents, and less severe conflicts. More info...
This is an ideal time for leaders to introduce positive new change, such as examination of unwieldy procedures or Total Quality Management. The critical thing here is that leaders must now offer hope that the organization is working towards being better, by solving problems and improving the quality of work life. While the new vision of the organization may have begun while people were slogging through the swamp, this is the time to complete the process, and make sure that people buy into it, and understand their roles in this new organization.
Conclusion
Playing a leadership role in the three phases is not easy. Not only do you have a responsibility to lead, but as an employee yourself, you have to deal with your own reactions to the change, and your role in it. However, if you are ineffective in leading change, you will bear a very heavy personal load. Since you are accountable for the performance of your unit, you will have to deal with the ongoing loss of productivity that can result from poorly managed change, not to mention the potential impact on your own enjoyment of your job.
Understanding The Cycle of Change, And How People React To It
Managers often make the mistake of assuming that once a change is started, that employees will see that it is going to take place, and get on side. This is rarely the case. Because change causes fear, a sense of loss of the familiar, etc., it takes some time for employees to a) understand the meaning of the change and b) commit to the change in a meaningful way. It is important to understand that people tend to go through stages in their attempts to cope with change. Understanding that there are normal progressions helps change leaders avoid under-managing change or over-reacting to resistance.
As we go through the stages, you will probably find many similarities with the process a person goes through with the loss of a loved one.
Stage I: Denial
An early strategy that people use to cope with change is to deny that it is happening, or to deny that it will continue or last. Common responses during this stage are:
"I've heard these things before. Remember last year they announced the new customer initiative? Nothing ever happened, and this will pass."
"It's just another hair-brained idea from the top."
"I bet this will be like everything else. The head honcho will be real gung-ho but in about six months everything will be back to normal. You'll see."
"I'll believe it when I see it."
People in the denial stage are trying to avoid dealing with the fear and uncertainty of prospective change. They are hoping they won't have to adapt.
The denial stage is difficult because it is hard to involve people in planning for the future, when they will not acknowledge that the future is going to be any different than the present.
People tend to move out of the denial stage when they see solid, tangible indicators that things ARE different. Even with these indicators some people can remain in denial for some time.
Stage II: Anger & Resistance
When people can no longer deny that something is or has happened, they tend to move into a state of anger, accompanied by covert and/or over resistance. This stage is the most critical with respect to the success of the change implementation. Leadership is needed to help work through the anger, and to move people to the next stage. If leadership is poor, the anger at this stage may last indefinitely, perhaps much longer than even the memory of the change itself.
People in this stage tend to say things like:
"Who do they think they are? Jerking us around"
"Why are they picking on us?"
"What's so damned bad about the way things are?
"How could [you] the boss allow this to happen?
Actually people say far stronger things, but we need to be polite.
Stage III: Exploration & Acceptance
This is the stage where people begin to get over the hump. They have stopped denying, and while they may be somewhat angry, the anger has moved out of the spotlight. They have a better understanding of the meaning of the change and are more willing to explore further, and to accept the change. They act more open-mindedly, and are now more interested in planning around the change and being participants in the process.
People in this stage say things like:
"Well, I guess we have to make the best of it."
"Maybe we can get through this."
"We need to get on with business."
This is the payoff stage, where people commit to the change, and are willing to work towards making it succeed. They know it is a reality, and at this point people have adapted sufficiently to make it work. While some changes will never get endorsement from employees (downsizing, for example) employees at this stage will commit to making the organization effective within the constraints that have resulted from the change.
Concluding Points
Let's conclude with some key points:
1) The change process takes a considerable amount of time to stabilize and to work. Don't undermanage by assuming it will "work itself out" and don't over-react when faced with reasonable resistance.
2) Worry if there is no resistance. If the change is significant it means that people are hiding their reactions. Eventually the reactions that are not dealt with will fester and can destroy the organization. Likewise with anger.
As we go through the stages, you will probably find many similarities with the process a person goes through with the loss of a loved one.
Stage I: Denial
An early strategy that people use to cope with change is to deny that it is happening, or to deny that it will continue or last. Common responses during this stage are:
"I've heard these things before. Remember last year they announced the new customer initiative? Nothing ever happened, and this will pass."
"It's just another hair-brained idea from the top."
"I bet this will be like everything else. The head honcho will be real gung-ho but in about six months everything will be back to normal. You'll see."
"I'll believe it when I see it."
People in the denial stage are trying to avoid dealing with the fear and uncertainty of prospective change. They are hoping they won't have to adapt.
The denial stage is difficult because it is hard to involve people in planning for the future, when they will not acknowledge that the future is going to be any different than the present.
People tend to move out of the denial stage when they see solid, tangible indicators that things ARE different. Even with these indicators some people can remain in denial for some time.
Stage II: Anger & Resistance
When people can no longer deny that something is or has happened, they tend to move into a state of anger, accompanied by covert and/or over resistance. This stage is the most critical with respect to the success of the change implementation. Leadership is needed to help work through the anger, and to move people to the next stage. If leadership is poor, the anger at this stage may last indefinitely, perhaps much longer than even the memory of the change itself.
People in this stage tend to say things like:
"Who do they think they are? Jerking us around"
"Why are they picking on us?"
"What's so damned bad about the way things are?
"How could [you] the boss allow this to happen?
Actually people say far stronger things, but we need to be polite.
Stage III: Exploration & Acceptance
This is the stage where people begin to get over the hump. They have stopped denying, and while they may be somewhat angry, the anger has moved out of the spotlight. They have a better understanding of the meaning of the change and are more willing to explore further, and to accept the change. They act more open-mindedly, and are now more interested in planning around the change and being participants in the process.
People in this stage say things like:
"Well, I guess we have to make the best of it."
"Maybe we can get through this."
"We need to get on with business."
This is the payoff stage, where people commit to the change, and are willing to work towards making it succeed. They know it is a reality, and at this point people have adapted sufficiently to make it work. While some changes will never get endorsement from employees (downsizing, for example) employees at this stage will commit to making the organization effective within the constraints that have resulted from the change.
Concluding Points
Let's conclude with some key points:
1) The change process takes a considerable amount of time to stabilize and to work. Don't undermanage by assuming it will "work itself out" and don't over-react when faced with reasonable resistance.
2) Worry if there is no resistance. If the change is significant it means that people are hiding their reactions. Eventually the reactions that are not dealt with will fester and can destroy the organization. Likewise with anger.
Thursday, August 19, 2010
US Retail Sales Rise Boosted By Car Sales
US retail sales rose in July after two months of declines, largely due to an increase in car sales, figures show.
Total sales climbed 0.4% from the previous month, when sales dropped by a revised 0.3%, the Commerce Department said.
Without the impact of car sales, overall retail sales rose by 0.2%.
US retail sales are seen as a key indicator of the health of the US economy as consumer spending accounts for about 70% of US economic activity.
Sales in July totalled $362.7bn (£232.4bn), and were 5.9% higher than the same month a year earlier.
Car and car parts sales rose by 1.6% from June, while petrol sales grew by 2.3%.
But sales in a number of other key areas, including clothing, electronics and furniture, all fell.
Recent weeks have seen growing concerns about the strength of the US recovery, and although the latest sales figures showed a rise, the increase was not as big as had been expected.
Slowdown
Last week, figures showed that the US economy shed 131,000 jobs in July, the second month in a row that jobs have been lost.
Earlier this month, figures showed that US economic growth had slowed between April and June.
This contrasts sharply with figures published on Friday showing the eurozone economic recovery gathering pace.
The German economy in particular is forging ahead, with its economy growing by 2.2% in the second quarter. The equivalent figure for the US was 0.6%
Total sales climbed 0.4% from the previous month, when sales dropped by a revised 0.3%, the Commerce Department said.
Without the impact of car sales, overall retail sales rose by 0.2%.
US retail sales are seen as a key indicator of the health of the US economy as consumer spending accounts for about 70% of US economic activity.
Sales in July totalled $362.7bn (£232.4bn), and were 5.9% higher than the same month a year earlier.
Car and car parts sales rose by 1.6% from June, while petrol sales grew by 2.3%.
But sales in a number of other key areas, including clothing, electronics and furniture, all fell.
Recent weeks have seen growing concerns about the strength of the US recovery, and although the latest sales figures showed a rise, the increase was not as big as had been expected.
Slowdown
Last week, figures showed that the US economy shed 131,000 jobs in July, the second month in a row that jobs have been lost.
Earlier this month, figures showed that US economic growth had slowed between April and June.
This contrasts sharply with figures published on Friday showing the eurozone economic recovery gathering pace.
The German economy in particular is forging ahead, with its economy growing by 2.2% in the second quarter. The equivalent figure for the US was 0.6%
Easy Jet Disable Passengers Inquiry Planned
France's Transport Minister, Dominique Bussereau, has called for an inquiry into allegations that low-cost airline Easyjet barred disabled passengers from flying unaccompanied.
He ordered the move after reports that Easyjet had refused to fly disabled passengers on safety grounds.
They were told they must be accompanied by another passenger in order to board the plane.
Easyjet said they were simply complying with safety regulations.
"European safety regulations require that all passengers are able to evacuate an aircraft within 90 seconds and therefore we require that some passengers with reduced mobility have a travel companion," a spokesman for the company said.
"We are already in discussion with the French government to find a workable solution for our passengers without compromising safety."
'Severe sanctions' threat
On the airline's website, it says it that unaccompanied disabled passengers must be "self-reliant in emergency and evacuation situations".
"In reality, this means that you should be able to undo your own seatbelt, put on your own oxygen mask, lifejacket and make your own way to your nearest emergency exit unaided."
In a statement on the French transport ministry's website, Mr Bussereau said the airline should not be allowed to "hide behind safety regulations".
"It must implement solutions adapted to each case, as most companies do. Otherwise it must be sanctioned with the greatest severity," he said.
Mr Bussereau has asked the French civil aviation authority DGAC to conduct the investigation.
He ordered the move after reports that Easyjet had refused to fly disabled passengers on safety grounds.
They were told they must be accompanied by another passenger in order to board the plane.
Easyjet said they were simply complying with safety regulations.
"European safety regulations require that all passengers are able to evacuate an aircraft within 90 seconds and therefore we require that some passengers with reduced mobility have a travel companion," a spokesman for the company said.
"We are already in discussion with the French government to find a workable solution for our passengers without compromising safety."
'Severe sanctions' threat
On the airline's website, it says it that unaccompanied disabled passengers must be "self-reliant in emergency and evacuation situations".
"In reality, this means that you should be able to undo your own seatbelt, put on your own oxygen mask, lifejacket and make your own way to your nearest emergency exit unaided."
In a statement on the French transport ministry's website, Mr Bussereau said the airline should not be allowed to "hide behind safety regulations".
"It must implement solutions adapted to each case, as most companies do. Otherwise it must be sanctioned with the greatest severity," he said.
Mr Bussereau has asked the French civil aviation authority DGAC to conduct the investigation.
Teenage Savers Caught Out By revenue's Age-16 Tax Trap
Teenagers and students are being caught out by a HM Revenue and Customs rule so obscure even some tax specialists have never heard of it.
They are falling foul of a clause that automatically ends tax-free interest payments from banks and building societies when they reach 16. Reclaiming tax incorrectly paid after this takes effect becomes a bureaucratic nightmare, with HMRC putting obstacles in their path.
Savers of any age who earn too little to pay income tax qualify for interest paid gross by completing HMRC form R85 at the bank or building society. HMRC says it has spent millions publicising this over the past decade.
But nothing has been spent on warning about the "age-16 trap". The R85 automatically lapses in the tax year savers turn 16, but there is no system of notification. Banks and building societies then deduct tax at 20% unless new R85 forms are signed.
The trap affects the many students who rely on extra income from savings to supplement their loans. While there is a catch-up reclaim route via form R40, it is bureaucratic and slow.
In 2000, the Revenue launched its Taxback campaign to publicise how non-taxpayers could get interest gross. There was no mention that the R85 ceased at age 16 unless renewed. Further campaigns in 2004 and 2008 again did not mention the age-16 trap. HMRC'S official R85 helpsheet (pdf) also fails to refer to it.
Information does appear on HMRC's website, but the Revenue was unable to explain why it expected teenagers to surf the site for tax traps they did not even know existed.
Mike Down, a partner at accountants Baker Tilly, said he had never heard of the rule. "Despite having a 20-year-old daughter and being a tax accountant, I was not aware of this," he said. "It is disappointing that it is not clearly indicated on the form itself. While I can understand from the Revenue's point of view how this arose, the Revenue must make it clear when a new form has to be completed. It's in everyone's interest as the process to reclaim later on causes a lot of costly time and trouble."
Down said he will raise the point at the next Working Together forum, which joins accountants and tax inspectors to discuss areas of mutual interest.
Reclaiming is now harder as the Revenue has reduced the period for starting a claim from six years to four years and it pays no interest on rebates.
At the Low Income tax Reform Group technical director Robin Williamson says: "We had not come across the point before and thank you for pointing it out. It is an extraordinary lapse in communication that it is not mentioned on the form itself, nor on the accompanying helpsheet.
The location on HMRC'S website where it is explained is not easily accessible unless you know exactly what you are looking for. At the very least, there should be some notification by the bank, or by HMRC, when an R85 customer turns 16, so that they are not put to the added bureaucracy of having to reclaim tax that should never have been deducted in the first place. Alternatively, could it not be mentioned in the National Insurance card pack that is given to young people just before they turn 16?"
HMRC said: "We rely on banks telling 16-year-olds that their R85 will be cancelled and inviting them to submit another form."
The Observer was unable to find a bank or building society that routinely warns in this way.
Eexchequer benefits from the very people who can least afford to pay tax they do not owe," says Williamson.
They are falling foul of a clause that automatically ends tax-free interest payments from banks and building societies when they reach 16. Reclaiming tax incorrectly paid after this takes effect becomes a bureaucratic nightmare, with HMRC putting obstacles in their path.
Savers of any age who earn too little to pay income tax qualify for interest paid gross by completing HMRC form R85 at the bank or building society. HMRC says it has spent millions publicising this over the past decade.
But nothing has been spent on warning about the "age-16 trap". The R85 automatically lapses in the tax year savers turn 16, but there is no system of notification. Banks and building societies then deduct tax at 20% unless new R85 forms are signed.
The trap affects the many students who rely on extra income from savings to supplement their loans. While there is a catch-up reclaim route via form R40, it is bureaucratic and slow.
In 2000, the Revenue launched its Taxback campaign to publicise how non-taxpayers could get interest gross. There was no mention that the R85 ceased at age 16 unless renewed. Further campaigns in 2004 and 2008 again did not mention the age-16 trap. HMRC'S official R85 helpsheet (pdf) also fails to refer to it.
Information does appear on HMRC's website, but the Revenue was unable to explain why it expected teenagers to surf the site for tax traps they did not even know existed.
Mike Down, a partner at accountants Baker Tilly, said he had never heard of the rule. "Despite having a 20-year-old daughter and being a tax accountant, I was not aware of this," he said. "It is disappointing that it is not clearly indicated on the form itself. While I can understand from the Revenue's point of view how this arose, the Revenue must make it clear when a new form has to be completed. It's in everyone's interest as the process to reclaim later on causes a lot of costly time and trouble."
Down said he will raise the point at the next Working Together forum, which joins accountants and tax inspectors to discuss areas of mutual interest.
Reclaiming is now harder as the Revenue has reduced the period for starting a claim from six years to four years and it pays no interest on rebates.
At the Low Income tax Reform Group technical director Robin Williamson says: "We had not come across the point before and thank you for pointing it out. It is an extraordinary lapse in communication that it is not mentioned on the form itself, nor on the accompanying helpsheet.
The location on HMRC'S website where it is explained is not easily accessible unless you know exactly what you are looking for. At the very least, there should be some notification by the bank, or by HMRC, when an R85 customer turns 16, so that they are not put to the added bureaucracy of having to reclaim tax that should never have been deducted in the first place. Alternatively, could it not be mentioned in the National Insurance card pack that is given to young people just before they turn 16?"
HMRC said: "We rely on banks telling 16-year-olds that their R85 will be cancelled and inviting them to submit another form."
The Observer was unable to find a bank or building society that routinely warns in this way.
Eexchequer benefits from the very people who can least afford to pay tax they do not owe," says Williamson.
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