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?

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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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Are You Delegating or Demanding

May 24, 2017 No Comments

Throughout the course of building a business, you’ll learn over time to delegate tasks and responsibilities to various people with the right skill sets. Some of the most successful entrepreneurs, like Sir Richard Branson and Mark Cuban, state no one can do it alone. That’s certainly true, you can’t do everything on your own and for those who attempt to do so, learn the hard way it’s an open invitation to trouble and even outright failure. The best business owners know their strengths and weaknesses and through this recognition, develop strategies and relationships which maximize their professional potential. Are You Delegating or Demanding? Delegating responsibilities is just part of doing business. Done smartly, this increases productivity and gives companies potential to grow and prosper. It also allows team members to realize their potential and creates a healthier and happier work environment. Delegating shows your confidence in someone and gives them pride to take ownership of certain areas. In addition, delegating allows you to focus on what’s most important while others can put their efforts into other tasks. Delegating is a great way to ensure that more tasks get done in less time, and it also builds team capacity. Unfortunately, a lot of managers don’t pay enough attention to the delegation process, and thus fail to reap the benefits. —Fast Company Another aspect of delegating is it gives you the opportunity to evaluate a person’s performance. When you give a team member responsibility, their approach and results will speak volumes about what kind of work ethic he or she has and what he or she believes are acceptable standards. In addition to evaluation, delegating gives you the ability to learn which of your team members are best suited for certain tasks. All of these things are great about delegating — if you are sincere. However, there is a real difference between delegating and demanding. Demanding does the opposite of delegating. It stifles creativity, decreases productivity, and poisons the workplace. It also drives a wedge between you and your employees, as well as creates tensions among your team members. Demanding doesn’t give you a true chance to evaluate, either, because it puts unnecessary pressure on people. Here are some signs that you’re demanding and not delegating: You rationalize unrealistic expectations. When you demand, you know it to be the case, as does the other person. This creates a need to rationalize unrealistic expectations, not only to the other person, but to yourself. In the end, no one is fooled, but, it gives you at least a pretense of having reason to demand. Your employees mislead or lie to you. If you get the feeling or learn that an employee is misleading or lying to you, there’s definitely a reason. Before jumping to conclusions, you should look back and think about the overall situation. For instance, if you interrogate an employee who wants time off, you’re creating an atmosphere where there’s little choice and lying becomes the only viable option. You create emergency situations. We all know that unexpected things crop-up from time to time, but, if you’re turning every surprise into an emergency, you’ll feel an undue urgency and that can easily lead to demanding. You justify your actions as legitimate and/or legal. If you ever have to ask if something is legal just to get it done, that’s troubling. You shouldn’t have to walk such a fine line because if you are, chances are excellent that even if it is legal, it’s not entirely ethical. You don’t want to deal with this or that. Delegating is done because it puts the best talent where it is most needed. Demanding comes from a need to get something done, particularly a task that you don’t want to deal with personally. Another sign that you’re demanding rather than delegating is your willingness to take credit or give credit to the person who deserves it. If you are taking credit of the work of others and not giving credit where it is due, that’s unethical and will undermine your entire organization. In summary, your employees are your greatest appreciable asset. Invest in them through servant style leadership by delegating with clear expectations and the kind of results you are looking for … then ask; “what can I do to help you succeed with this responsibility or project?” Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

Small Businesses are Increasingly Turning to Alternative Lenders – Here’s What You Need to Know before Borrowing

April 28, 2023 No Comments

Even before the collapse of Silicon Valley Bank or SVB, there was a tightening in the commercial credit market. Post-collapse, small businesses have found it increasingly more difficult to secure capital from traditional lenders. Still in need of cash infusions and lines of credit, small businesses are turning to alternative lenders. Advantages and Disadvantages of Borrowing from Alternative Small Business Lenders Alternative small business lenders are non-bank lenders that provide financing to small businesses. They offer a variety of loan products, including term loans, lines of credit, and equipment financing. Alternative lenders often have more flexible lending criteria than traditional banks, making them a good option for small businesses that may be turned down for a loan from a traditional lender. Of course, even though all of this sounds good, there are reasons small businesses have historically relied on traditional lenders. This is due to the fact that there are not only upsides but also, downsides to using an alternative lender. So, let’s take a look at the pros and cons of borrowing from alternative lenders. Pros of Borrowing from Alternative Lenders Faster approval and funding. Alternative lenders often have a streamlined application process that can be completed online or over the phone. This can lead to faster approval and funding, which can be critical for businesses that need money quickly. More flexible terms. Alternative lenders may be more willing to work with businesses that have less-than-perfect credit or that are in the early stages of growth. They may also be more willing to offer loans with longer terms or lower interest rates. More options. Alternative lenders offer a wider variety of loan products than traditional banks. This includes term loans, lines of credit, and merchant cash advances. No personal guarantee required. Some alternative lenders do not require a personal guarantee from the business owner. This means that the business owner’s personal assets are not at risk if the loan is not repaid. Although these are some quite compelling reasons to seek out capital from an alternative lender, there are also a few considerations you should take into account so you have a better understanding of how these lenders work. Cons of Borrowing from Alternative Lenders Higher interest rates. Alternative lenders typically charge higher interest rates than traditional banks. This is because they are taking on more risk by lending to businesses that may not be as creditworthy. Shorter terms. Alternative lenders often offer loans with shorter terms than traditional banks. This means that the business owner will have to make larger payments over a shorter period of time. Hidden fees. Some alternative lenders charge hidden fees, such as origination fees or prepayment penalties. These fees can add to the overall cost of the loan. Less customer service. Alternative lenders may have less customer service than traditional banks. This can make it difficult to get help if you have questions or problems with your loan. Now you have a better idea of what to expect from alternative lenders, you are more informed about your options and this will give you additional choices. Taking it a step further, you should also consider the following if you are in need of a line of credit or some operating capital. When to Borrow from an Alternative Lender Alternative lenders can be a good option for small businesses that need money quickly, have less-than-perfect credit, or are in their early stages of growth. However, it is important to carefully consider the pros and cons before choosing an alternative lender. If you are considering borrowing from an alternative lender, be sure to shop around and compare rates and terms from multiple lenders. You should also read the fine print carefully to understand all of the fees and conditions associated with the loan. Interested in learning more about business? Then just visit Waters Business Consulting Group to learn more about us and the services we offer.

Guest Post: The Best Advice for Retirees Aiming to Start a New Business

November 7, 2018 No Comments

Written By: Jim McKinley There are many different reasons for starting a new venture after entering retirement. Maybe you want to pursue a business idea you never had a chance to realize before, or maybe you miss putting your knowledge and skills to work. No matter what’s driving you, your first priority needs to be keeping your financial future secure and intact. Check Your Perspective Your first step toward developing a successful business during retirement is developing a realistic fiscal outlook. As Inc. explains, thinking in terms of the financial future is a must. Even if you retired at a young age, are currently economically sound, and are in great health, you need a strategy oriented toward long-term success on all fronts. According to some statistics, nearly a third of all retirees must dedicate 40 percent of their retirement income toward existing debts, and if you have a situation where you’re starting out your business barely making ends meet, you are more apt live with stress and financial struggle instead of making good headway. Examine Debts Acknowledge any debts you have, including your mortgage. If you already owe money to creditors, make it a point to become debt-free as soon as possible. It might be a good time to downsize your home, and you should examine what you have in your retirement savings. Also, take a hard look at your credit report and examine it for any accounts that don’t belong to you, clerical errors such as incorrect dates, or old debts which should be removed. According to ConsumersAdvocate.org, investing in a credit repair service can mean entering into your new business venture with solid financial footing and better peace of mind for your golden years. Solidify Your Plan Once you have a good feel for your financial position, take an earnest look at what you expect to be doing. US News notes the largest part of success for small business owners is making a solid business plan, which includes recognizing an existing need and then finding a way to meet it. Are you offering the right product or service at the right time? Do you already have the abilities to fill that niche, or do you need to invest in special equipment or training? Some retirees turn a hobby into a small business, such as making handyman repairs, landscaping, or selling handcrafted items online. You might decide to be a real estate agent, in which case you should check the requirements where you live. Resources for Funds According to the Muse, if your business idea requires a substantial investment, you might decide to take out a loan or find investors willing to help finance your endeavor. You could reach out to friends and family members through crowdfunding, or connect with specific people you think might be as passionate about your idea as you are. Think about the need you intend to meet as well as who will be impacted and how. Be creative in your outreach, be ready to pitch your idea, and you might be pleasantly surprised at the outcome. Pathways and Exits How long do you plan to work at your new venture? Depending on your objective, you might only intend to work for a set number of years. For instance, some people work until they reach a particular financial goal or a specific age, while others develop their businesses with the intention of passing it along to someone else later. Have a plan in place for how you will later exit your business. Your business’s legal structure can help determine your exit strategy as much as your goals, and certain formats can also help protect your personal finances. You may wish to explore the AARP’s entrepreneurial resources when deciding how to proceed. Taking on a new venture during retirement is a big step. So, weigh your situation carefully to ensure your financial well-being. With some careful planning, you can start a new business without risking your future.