Management Styles - Employee Performance

The task of planning and executing how employees will be compensated at any company is usually faulty at best. To add to the complication, different types of employees have different compensations, and different goals so measuring performance and rewarding based on excellence or progress is sometimes convoluted.

But, don’t make the mistake of implementing “bonuses.”

If bonuses are distributed when, “things go well” at your company, or for holidays, this will quickly turn into entitlements.  And, unfortunately many bosses or managers have a nasty habit of discussing them as such (have it as part of the compensation package when employees discuss raises or new hires discuss wages). So bonuses lose what their very name implies. They are no longer additions, to be paid out when performance is exceptional (more on this in just a second), but simply a nice chunk of salary to be distributed at a certain point in time.

So, what is the problem? When these types of tools are used without mention to meeting or exceeding expectations and goals, they are nothing to work towards and quickly become the “norm.” Additionally, if the inverse happens (for some reason the bonus is not paid), for example if business declines or expectations are not met, this lack of “deserved compensation” can have a huge effect on productivity and general attitude.

So, as soon as possible, across all facets of your business you should set up a system of performance compensation, where by employees performance is directly linked to compensation. Here are some general reules for success:

• Set specific standards for the job that are measurable
• Make routine payments (not one lump sum)
• If it makes sense for your situation, choose increases in performance compensation as opposed to pay increases or general raises

Utilizing this kind environment, particularly setting measurable goals with your employees and watching their progress (and allowing them to watch their own progress) will help lead to a more successful working environment.

Southwest Florida Management

For the initial post on management I thought I would confer some of the knowledge I’ve learned from various books I’ve read. Unfortunately, at this moment I can’t really think of how this category will ever be specific to Southwest Florida (bonita, naples, fort myers, etc.), but perhaps our area’s seasonal nature will, in some ways, dictate your own businesses management needs. As season swings, more business flows, and additional staff and modified processes need to be implemented - or re-implemented.

The two books I’ve read that have really had a profound impact on management style includes, Good to Great by Jim Collins and The Big Book of Small Business by Tom Gegax. Unfortunately I came across these books for the wrong reasons. The first attracted me at Barnes and Noble, with its stark red color and big text. Promising the secrets of success behind the world’s best performing companies. I picked it up and started reading. It struck a cord in that, the most successful businesses were not - as the book concludes (based on years and mountains of evidence) - being run as one might expect, by corporate celebrities. The second book, was presented after one of our staff attended a seminar. I left it on my shelf for over a year before picking it up and diving in.

I highly recommend both books. They both play a big role at our business and helped to widdle down the following management rules we have in place:

You Are Just As Responsible - as an owner or manager you may have been looking to start your own company, run your own business, or manage people and processes so that you could be free from responsibility. Unfortunately this is just impossible, at least until a full team and process is setup. Especially in the beginning years you will be the middle man, your clients or customers are your bosses (you used to just have one right!) and your employees or support staff are your bosses. You should be able and willing to get your hands dirty whenever necessary, and set a good example.

If Something is Wrong Act - Things go bad. People make mistakes, or have to deal with non-business life that creeps in and affects performance. But, if something is not to your liking, company standards, or off kilter in any way… ACT. This doesn’t mean terminate, yell, mame, or kill, which all may be suitable depending on your situation, but it means address the situation, bring it up, talk about it. You may gain incite into your own processes or personnel’s thinking, and will be working towards a solution rather than just hoping it will fix itself.

Find the Right People - Good to Great has a fantastic metaphor for creating a great company. A single leader hops on a bus, the business bus, and then his team gets on board. Once the team is right, filled with great, motivated, brilliant, and they are in the correct seat, the bus can take off and it will practically steer itself. At first I didn’t believe this was possible. Granted, having a bus, or business, steer itself is a bit crazy, but the underlying idea is completely true. Great people will make your company great. So, take your time in hiring, do your homework (Big Book has some great tips on how to do this) and you won’t really have to “manage” at all. But, here’s the tough part, if someone isn’t great, they’ve been shuffled around from seat-to-seat, but just don’t seem to fit, they aren’t right for the business and need to get off the bus.

Welcome to Bonita Business

Thank you for stopping by the newest and most innovative place on the web for Southwest Florida. So, what is BonitaBusiness.com? I’m glad you asked. Bonita Business was created by me, Zach Katkin. I am currently the co-owner of Atilus, a local web development and Internet Advertising company based right here in Bonita Springs (Southwest Florida).

Basically, my partner and I have had to go through a lot in order to setup, and maintain our business. And as it grows, we are faced with new challenges and situations every single day. With that in mind we wanted to produce a true resource for the community, or those thinking about joining the community to assist others in the day-to-day operations of their business.

We also have additional resources we will be rolling out as the site chugs along in order to provide even more helpful information and services to the Southwest Florida (Naples, Fort Myers, Bonita Springs, Marco Island, Sanibel, Estero) business community.

In total, BonitaBusiness.com will provide visitors with:

1. Information on Southwest Florida’s business environment
2. Articles on business categories/topics from leaders in the community
3. Resources (where to get/find stuff for business)
4. Business Forum (open forum where users can discuss anything business)
5. Networking/Seminar Calendar
6. Business Directory (place for local businesses to gain exposure and market themselves)
7. Photo Gallery (pictures from networking events and seminars)

Articles on business categories will be written by partners of bonitabusiness.com who have been hand selected as prominent leaders in their field. Our articles will be featured under the following categories:

1. Technology
2. Real Estate
3. Marketing
4. Development
5. Management
6. Finance
7. Legal

So, check back often as we will be constantly adding articles and information to help new businesses, seasoned businesses, people and companies thinking about moving down to Southwest Florida as well as potential upstart companies and individuals who may want to start a business, but aren’t exactly sure how, or what they need to know.