Business Education

Why NFL Teams Can’t Run the Pinkerton Play and Neither Can Your Small Business

Super Bowl LIX will pit the Kansas City Chiefs against the Philadelphia Eagles. During the game, both teams will vie to out strategize their opponent. Undoubtedly, there will be internecine struggles–and those internal conflicts will test their ability to operate and execute as a cohesive team.

Professional sports teams routinely face internal conflicts that test their cohesion and performance. Throughout the NFL season, many organizations struggle with discord between players, coaches, and management, impacting their success on the field.

Modern sports franchises handle personnel changes through established procedures, but this wasn’t always true in American business. Historically, labor disputes often turned violent, with companies hiring agencies like the Pinkerton Company to end worker protests or replace entire workforces forcefully.

While today’s labor relations are more sophisticated and regulated, tension between management decisions and worker interests persists across industries, including the NFL, one of America’s largest business enterprises.

This begs the question, “How do modern businesses deal with extreme employee pushback against controversial decisions?” Well, they certainly can’t return to the days of old and run the Pinkerton Play. So, just how do companies deal with decisions employees truly dislike or even hate?

Handling Employee Blowback: Navigating Unpopular Decisions & Preventing Mass Exits

Unpopular decisions in business can create significant tension, leading to employee blowback. When morale dips, productivity can plummet, and turnover costs can skyrocket. Navigating these tough waters is crucial for maintaining a healthy workplace.

The Impact of Employee Morale on Business Success

Employees are the backbone of any organization. When morale is high, productivity increases, and so does overall satisfaction. Conversely, low morale can result in a toxic work environment, which not only affects the bottom line but also the company’s reputation.

Statistics on Employee Turnover and Its Associated Costs

The average cost of replacing an employee can range from six months to two years of the employee’s salary.
According to the Work Institute, 77% of employee turnover is preventable.
Companies with engaged employees see 21% higher profitability.

Unpopular decisions are often necessary for long-term success. Whether it’s restructuring, layoffs, or changes to benefits, business owners must sometimes make choices that won’t sit well with everyone.

Understanding the Root Causes of Employee Resistance

Knowing why employees resist can help address their concerns. Common issues include fear of job loss, dissatisfaction with changes in roles, or dissatisfaction with new policies. Often, misunderstandings arise due to poor communication. If employees don’t understand the reasoning behind a decision, resentment can grow. Moreover, fear thrives on uncertainty. When employees feel insecure about their jobs, it can lead to blowback. Addressing these fears directly is key to overcoming resistance.

Strategies for Effective Communication During Difficult Times

Embrace transparency and open dialogue. Being open about the reasons behind decisions can promote understanding. Clearly share your vision and the expected outcomes.
Actively listen and address concerns empathetically. Make it a point to listen to employee concerns. Showing emotional intelligence breeds trust and can ease tensions.
Utilize various communication channels effectively. Use emails, team meetings, and one-on-ones to convey your message. Different channels reach different audiences, so consider the best ways to engage your team.

Mitigating the Risk of Employee Departures

Offer support and resources to employees. Help employees feel secure by providing necessary resources. Whether that’s career counseling or mental health support, demonstrating care makes a difference.
Implement fair and transparent compensation and benefits structures. Fair pay and transparent benefits can help retain employees. When workers feel valued, they’re less likely to leave.
Create a positive and supportive work environment. Foster a workplace where employees feel seen and appreciated. Recognition goes a long way in maintaining morale.

Addressing Threats of Resignation Directly and Professionally

Set aside time to openly discuss their concerns. Understanding their feelings can help find mutually beneficial solutions.
Use negotiation techniques to address concerns and find solutions. Focus on win-win situations. If employees feel like their needs are met, they are more likely to remain committed.
Develop a plan to manage potential departures. Create a system to handle potential resignations. This could include exit interviews or alternative dispute resolutions to understand underlying issues.

Preventing Future Pushback: Proactive Measures

Develop a culture of open communication and feedback. Encourage regular feedback and ensure employees feel heard. This can prevent misunderstandings and build trust.
Create a strong employee value proposition. Define what makes your company desirable to work for. A strong value proposition highlights the benefits employees receive, beyond just salary.
Regularly assess employee satisfaction and morale. Conduct surveys to gauge employee happiness. Knowing where issues lie can help address them before they escalate.

Turning Challenges into Opportunities

Navigating unpopular decisions doesn’t have to lead to chaos. By employing transparent communication and actively engaging with employees, businesses can turn potential blowback into an opportunity for growth.

Key takeaways include the importance of open communication and addressing employee concerns head-on. Implementing the strategies discussed not only mitigates current issues but also fosters long-term loyalty and satisfaction among the workforce. Maintaining a resilient and engaged team will ultimately result in a thriving business environment.

For further insights on improving workplace dynamics, stay engaged with your employees and consider their perspectives in decision-making.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-210-9536, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

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The Landlord is Seriously Raising My Business Space Rent – What are My Options?

July 13, 2022 No Comments

Commercial tenants can expect their rent to go up every year. In fact, it’s a bit unusual for the rate not to increase at the end of a lease. But sometimes, unscrupulous landlords will take advantage of their tenants’ naivete and exercise a somewhat obscure clause that allows them to up the rental rate substantially. So much, that it can increase by a relatively high percentage, thus making it virtually unaffordable. Fortunately, there are some options commercial tenants have in these situations. Business Owners, Know Your Lease Although it may seem completely obvious or self-evident, don’t just skim over any commercial lease. If necessary, pay an attorney to look it over and explain it to you on a very elementary basis. Or, go over it carefully yourself and if you don’t understand something, be sure to research it on your own – do not just take the landlord’s word for what it truly means. There’s no standard agreement for commercial leases. In fact, negotiating the terms of commercial leases is usually expected. Depending on the state of the commercial real estate market, a business may be able to obtain significant concessions from a landlord. A property owner with a largely vacant business park, for example, will most likely make allowances. On the other hand, the business renting the space will have less control over the terms of a lease in a hot rental market or when renting a premium space. —FindLaw Small Business We’re not going to get into commercial lease types, because there are many kinds. But, it is quite common for leases to contain various expenses besides just renting pure square feet, including common area maintenance and repairs, and other expenses. However, it certainly isn’t unheard of that tenants get stuck with even more expenses related to their business rentals. So, again, be sure to understand the lease before you sign on the dotted line in order to avoid any confusion or surprises in the future. What To Do When Your Business Rent goes Up Unexpectedly If the commercial space you’re leasing for your business goes up dramatically, you do have some options available, though they may not always be the best. Here are a few things you can do if the landlord raises the rental rate on your commercial space: Do your research first. Start by getting a firm grasp on your state’s commercial rental laws. This won’t necessarily be a fun task, but a very necessary one. If you understand how these laws work, you may find something in your favor. At the very least, you’ll have more knowledge about how the landlord-tenant laws work in your state and will be wiser to make better decisions in the future. Survey the local market. The next thing you should do is to start looking at other commercial spaces immediately. You just may find some deals out there that would allow you to either lower your current rental rate or be competitive. Because of the pandemic disruption, many commercial landlords are desperate for tenants, since so many businesses have adopted work-from-home and hybrid models. Try to renegotiate your current lease. Another option is to try to renegotiate the lease on the property you are currently occupying. You can use your newfound knowledge of the law and of the local market opportunities to your advantage. This is especially helpful if you really want to avoid the hassles of moving your operation elsewhere, and the landlord is willing to be reasonable. How else would you deal with a sudden commercial rent increase? Please take a few moments to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.

3 Big Reopening Mistakes Businesses should Avoid

June 24, 2020 No Comments

Businesses are anxious to reopen. Consumers are likewise ready to return to normal (or as close to normal as possible). But, any business reopening must do so responsibly. After all, not providing a safe environment will only backfire and cost them in a number of ways. This means taking a smart, incremental approach and one that can help to get things back on track. What to Know about Post-Pandemic Reopening The first thing any business owner needs to know is exactly what their state and local governments will allow and disallow. If you run afoul of the rules, even those which seem unfair, you’re only setting yourself for a lot of grief and probably a huge amount of regret. For these small businesses to come back after the pandemic abates, and once again serve as an engine of American innovation, they need aid. The Coronavirus Aid, Relief and Economic Security (or CARES) Act set aside $349 billion in loans and assistance for small businesses and there may be more to come. But business owners also need to make the best possible decisions to get them through this difficult period. —Harvard Business Review Another thing to know about reopening is how your patrons or clients will respond. Just because there’s a green light to open from the state and local government doesn’t mean the public will respond positively. In other words, you need to understand public sentiment. 3 Big Reopening Mistakes Businesses should Avoid Now, as for reopening, there are many things you should do to get back to full operation. But, there are also things you need to avoid doing, as well. Here are three of the biggest reopening mistakes businesses should avoid: Expecting employees to immediately return to work. Just because you’re ready (and willing), doesn’t mean your team members will feel or act the same way. So, speak with each one individually and listen to their concerns. Plus, encourage them to be open about their circumstances and be supportive, if necessary. Some business owners are expressing challenges with employees who are receiving unemployment which exceeds what they earned as an employee so they are reluctant to return. Business owners need to be prepared by discussing the need to help the business serve its customers. Also, if the employee does not return, there is no guarantee the employer will not have replaced the employee’s position when the previous employee’s unemployment checks end Not having procedures in place to maintain social distancing. At this time, it’s expected there will still be a need for social distancing into the foreseeable future. So, be sure to formulate a realistic plan to maintain those social distances in order to provide a safe and healthy environment. Trying to rush through the reopening process to get things back to normal ASAP. Whatever you do, don’t fall into the trap of trying to reopen to soon or at too fast a pace. While it’s completely understandable you’re ready to resume operations, if you rush, you’re likely to make rash decisions that will cost you in more ways than one. Remember to offer what the Customer wants. Instead of trying to reinvent your service offerings, ask the Customer what they want and most enjoyed or valued about your services and deliver what the Customer wants. What other mistakes would you say businesses that reopen are likely to experience? Please share your thoughts by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

How Does a Successful Entrepreneur Recover from a Bad and Costly Business Decision?

March 7, 2024 No Comments

How Does a Successful Entrepreneur Recover from a Bad and Costly Business Decision? When it comes to being an entrepreneur, navigating the unpredictable landscape of business is quite common. After all, even the most seasoned entrepreneurs can find themselves facing the aftermath of a bad and costly business decision. In these challenging times, it is essential to embrace resilience and proactively seek strategies for recovery. So, how exactly does an otherwise successful business owner not only cope but overcome a bad and costly decision? Fortunately, there are some concrete steps you can take to get past such a trying set of circumstances. Here are the most effective ways to recover from a bad and costly business decision. Acknowledge the Mistake Without Self-Blame Acknowledging a misstep is the first step towards recovery. It is crucial for entrepreneurs to recognize that making mistakes is a part of the journey towards success. By reframing the perspective from self-blame to a learning opportunity, entrepreneurs can begin the process of moving forward with clarity and determination. Assess the Damage and Deploy Damage Control Quantify the impact of the decision as accurately as possible. Evaluate financial losses, lost opportunities, and damage to your reputation. A clear understanding of the extent of the damage is essential for creating a recovery plan. Take immediate steps to mitigate further losses. Be decisive, communicate transparently with stakeholders, and seek professional advice if necessary. Quick actions help control the situation and prevent things from getting worse. Formulate a Recovery Plan Realign your strategy in light of the setback. Reassess goals, revise budgets, and identify areas for improvement. This plan should be realistic, adaptable, and focused on creating a sustainable path forward. Put your recovery plan into action and closely track the progress. Remain flexible and ready to adjust the plan as needed. It’s essential to stay agile and react to new information as you move forward with execution. Also, don’t waste mental energy on things outside your control. Channel your energy and resources into actionable steps that will make a real difference in rebuilding stability. Embrace a Growth Mindset for Future Success In the face of adversity, cultivating a growth mindset is key to overcoming setbacks. Viewing challenges as opportunities for growth and development can fuel the entrepreneurial spirit and pave the way for future success. By focusing on continuous learning and adaptation, entrepreneurs can position themselves for long-term prosperity. Seek Guidance and Mentorship for Strategic Insights Navigating the aftermath of a costly business decision can be a daunting task. Seeking guidance from mentors or experienced professionals in the industry can provide valuable insights and perspectives. By leveraging the knowledge and expertise of others, entrepreneurs can gain a fresh outlook on their situation and identify strategic pathways towards recovery. Pivot Towards Innovation and Creativity In times of crisis, innovation and creativity can serve as powerful tools for reimagining the future. Entrepreneurs who have faced setbacks can harness their creativity to explore new opportunities, pivot their business model, or diversify their offerings. By thinking outside the box, entrepreneurs can unlock new possibilities for growth and success. Take Calculated Risks with Strategic Planning Recovering from a costly business decision requires a balanced approach to risk-taking. By engaging in strategic planning and carefully evaluating potential risks and rewards, entrepreneurs can make informed decisions that align with their long-term goals. Taking calculated risks can lead to new opportunities and propel entrepreneurs towards renewed success. As always, the journey of an entrepreneur is filled with highs and lows, successes and setbacks. When faced with the aftermath of a bad business decision, it is essential to approach the situation with resilience, innovation, and a growth mindset. By embracing the challenges as opportunities for growth and learning, entrepreneurs can navigate the road to recovery and reignite their path towards success. Want to Accomplish More? Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do? We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test. You can call us for your free appointment at 602-435-5474, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.