Six Mistakes to Avoid in the Coming Recovery

Six Mistakes to Avoid in the Coming Recovery
by: Ed Biernat



While the Federal Reserve Chairman Ben Bernanke noted last week that the
recession is "very likely over", the recovery is just beginning. Many
executives and business owners want to get through these changes and get
back to 'business as usual,' and therein lies the problem. "Business as
usual" has caused (or at least exacerbated) the issue, so going back may
not be in the company's long term interest.

Productivity normally rises during a downturn, since everyone is watching
the books more and the organization works hard to do more with less. The
normal increase in productivity in past recessions (1970 - present)
averages about .8 , or 3X the average of the prior six recessions. While
part of this increase is the significant cuts to worker pay and benefits,
part of this increased productivity may be from better utilization of
your human capital and smarter business processes. Don't sacrifice this
gain by retrenching into past practices. Here are some pitfalls to avoid.

Repopulating the company 1 for 1.

The majority of companies have had to lay off a higher number of
employees than in past downturns. And now that things are turning around,
they want to bring them back as quickly as possible. One reason for that
desire is loyalty to the individual, and that is highly commendable. Part
of it is that the manager is using an old paradigm that if sales increase
X%, I will need to restaff with Y number of people. That paradigm may
have been shattered.

· The tasks we do in an organization can be divided into value added [VA]
(those that service the customer) and non value added [NVA] (consume
resources but do not add value). Capture what is being done right now.
How are you able to get it all done with a skeleton crew? What isn't
getting done? Evaluate if it ever needs to come back.

· If it needs to be done, be creative on the how and the who. Who needs
to do it? Typically we have highly skilled workers doing a mix of value
added and non value added work. What if you pulled most of the NVA work
from them and pooled it into a less skilled (and preferably temporary)
person? And how does it need to be done? Instead of adding staff, could
these NVA jobs be automated? Outsourced?

· Remember the bargaining agreement if you have one. Work within it or
start setting the stage for changes. The goal is to get the bulk of the
people back in productive work as needed while giving them some better
assurance that they are on board for the long haul. The mechanisms to
redistribute the NVA tasks are up to you. Think out of the box.

· What about those employees that you couldn't move because they knew too
much or had a special skill set that the organization couldn't live
without? Now is the time to correct that by getting them to put it in
writing the magic that they do. Unless, of course, you want to be held
hostage again sometime in the future.

Being too slow to add resources.

· Stay ahead of the curve when adding resources. This will allow you go
after the NVA activities as you identify them. You will need the extra
bandwidth to follow recommendations and use this recovery time to
continuously improve the organization.

· Focus on servicing your current customers extremely well. Now is the
chance to delight them - you need them more than ever. Make sure the
front line customer support team has the resources to do the job right.
This is particularly true since you are looking to attract new customers
to replace ones you may have lost. First impressions are key and may be a
major differentiator for your company against its competitors.

· Some resources will take a while to get due to lead time on equipment
or locating the right skill set. Start those earlier than you might
otherwise to make sure they are there when you need them and that they
are the best available. (First movers here will probably get a great deal
on critical resources, both human and physical.)

· As you replace lost personnel, hire for behaviors first, skill set
second. If the individual has the right attitude and some expertise and
ability in the area, the specific nuances of the job can be acquired. It
is much harder to change a person's behavior - what you hire is what you
get. If you are a first mover to acquire these individuals, you will have
a greater chance to find people with both the right behaviors and the
right skill set.

Ignoring your suppliers.

· You may have had to add some in haste since your original ones went out
of business. Now is the time to do due diligence to make sure they are
the ones for the long haul.

· These suppliers helped you through the hard times. As the money
returns, be sure to pay them closer to the original terms. They have
probably earned it. But, if the new reality really is net 60 versus the
old net 30, start that dialogue now.

· As you look at NVA activities, you may find a fit with suppliers. It
may not be your core skills but it might one of theirs. It may not be a
bad thing to select a few key suppliers and work to partner with them
more.

Failing to reevaluate your customers.

· Stay close to your key customers. They kept you going. Continue to
service them well through the recovery. The general tendency is to flock
to the newest customers most often. Resist the temptation. Make all your
customers priority customers.

· But take a good long look at them. Are they really the customers of
your future? Some of them may need to get replaced, not today, but over
time. Identifying them early will allow you the most flexibility in your
future agreements.

· Work with them like your suppliers but in reverse. Is there a way that
you can take some of their perceived NVA activities that fit your skill
set? How can you integrate your company into their day to day activities
more?

· Now is also the time to understand what is their view of the new
reality. Your organization probably made concessions to keep the
business. You need to understand what concessions are parts of their
business model going forward, and which ones will return to normal and
when. It is hard to do while you are still starving, but don't wait too
long or you may lose some bargaining room.

Being blind to potential infrastructure issues.

· Since you probably stripped your resources (lived off of inventory,
stock, etc.), think before you bring it all back in kind. Take a snapshot
of what you currently are using and what you didn't use at all. During
this recovery, some things may be difficult to get quickly. Be the first
mover to replace what you will need eventually. On the flip side, you may
have items that you don't need and that may be in demand. Somewhere
during this ramp up may be a great time to rid yourself of these at a
profit if you have them identified and have that as part of your game
plan.

· What corners did you cut that still got the job done? You may have
stopped all preventive maintenance, for example, but you know that isn't
a sustainable answer. Evaluate what was done and not done, and do your
VA/NVA analysis. If it falls into the NVA side, figure out how to get rid
of it or automate it. If it is a VA activity, put it on your priority
list to restart as soon as practical.

· That includes ERP/MRP protocols as well as what equipment to bring back
on line. If you are getting along without it, think twice before bringing
that practice back. Anne Mulchahy, Chairman of Xerox, noted in a recent
interview that the company is evaluating the new ways that things are
getting done as a result of the recession and making the ideas and
process changes that make sense part of the company culture. Never waste
a good idea!

· Take time to evaluate the overall impact of the recession on your
infrastructure. Don't be one of those companies that have to stutter-step
their recovery because of infrastructure snafus. That especially goes for
critical equipment, processes and people. As you regain bandwidth, make
sure that either they are made robust or add some redundancy.

Maintaining a management mindset focused on returning to "business as
usual".

· Your management team just went through a graduate course on how to
survive a significant downturn, so why wouldn't you use that knowledge
going forward? We did a straw poll on how managers are reacting to this
downturn. The overwhelming response was, "I can't wait to get this behind
us to get back to business as usual." So much for the diploma.

· If you followed the advice of most change guru's, you got very close to
your employees during this time and communicated a lot more than you have
historically. Don't throw this one aside as things start back up.
Managing by Wandering Around, visible management and Going to Gemba work
ALL the time. Make this part of the new management paradigm.

· You may have reduced your management headcount as well as the first
line workers. Rethink how you restaff your support team. This is an
opportunity to make some of the structural changes that you may have been
considering. Also, decide what your company culture will look like going
forward. Have you started to rely more on teams versus command and
control? Make sure that you bring back only those individuals that will
reinforce this new way of working.

This has been a challenging time for management at every level, and hard
time for everyone in the organization. Now is the opportunity to turn the
time, effort and money that the recession cost the company for a
investment into a smarter and more solid future. What would you like your
organization to look like and act like three years from now? Today is the
day to start making that vision a reality.

---

About The Author
Edward Biernat started Consulting With Impact in 1998 after seeing a need
to help businesses stream line their production. His credits include
being a successful quality manager at Bausch & Lomb, and having a
certified black belt with Lean Six Sigma.




The author invites you to visit: http://www.consultingwithimpact.com

Chapter 7 Bankruptcy Can Give you a Fresh Start

Chapter 7 Bankruptcy Can Give you a Fresh Start
by: Nick Messe



If you think there are more people filing for Chapter 7 bankruptcy this
year than in the past you are correct. With Chapter 7 bankruptcy your
available personal assets are used to pay off your unsecured debts and
the unpaid balance is wiped clean. Some states, however, do allow the
filer to keep a vehicle and their primary residence. The rules are
slightly different from state to state, so be sure to check with your
court or a local bankruptcy attorney to see how it works in your state.

Most bankruptcy attorneys encourage people to take a good hard look at
their finances before considering bankruptcy. Although many of your
immediate financial problems will be wiped clean, the bankruptcy will
have a negative impact on your credit score and you might find it hard to
borrow money for a while. So at what point should you go ahead and file
for bankruptcy?

When your debts become so problematic that you can't make a dent in them
and your attempts to hold off your creditors are no longer working, you
might be a candidate for bankruptcy. When you do a tally of your assets
and liabilities and you find that your liabilities are significantly more
than your assets, it is probably time to take action. If your debts are
endangering your IRA or any other retirement accounts, filing for
bankruptcy may protect them.

Filing for bankruptcy doesn't carry the same stigma it used to and has
become almost common these days. If your debts are simply unmanageable
and there is no way to get out from under them, there is nothing to be
gained by not facing this fact. There is no point in hiding from the
facts and letting a completely unworkable situation carry on any longer
than necessary. Chapter 7 could be a tool to restart your life without
debt. Just remember not to repeat the same financial mistakes that got
you into this mess in the first place.

Finding a bankruptcy attorney to help you regain control of your finances
could be the best decision you've ever made. Debt can completely take
over your time and attention and the reasons for getting into this kind
of debt are at that point less important than just being able to simply
get on with your life. With unemployment rising and inflation on the way,
Chapter 7 could save your home, your health and your peace of mind.

Many bankruptcy lawyers offer free consultation before it is necessary to
choose who you want to use. This is the best way to find a lawyer who is
sympathetic to your situation and one you feel comfortable working with.
You can also find out the terms and conditions of engaging an attorney
and also what he or she expects of you as a client.

Take the time to consult with two or three different lawyers. compare
prices and reputations then make your decision. Check with the state bar
association to be sure the attorney you're considering is in good
standing and has no complaints filed against them. Choosing an attorney
to advise you and represent you is an important decision that should not
be taken without proper consideration.

Bankruptcy can bring an end to your financial woes and can also be the
start of a new life, especially since credit counseling is usually
required as part of the proceedings. Hopefully you will come out of it
with a better understanding of the dangers of credit, and a commitment to
avoid letting it happen again.

---

About The Author
In the Milwaukee and Waukesha area Michael Burr specializes in bankruptcy
and debt relief services. Milwaukee Chapter 7 bankruptcy is an effective
way to eliminate many types of debt and have a fresh financial start.
Contact Attorney Michael Burr directly. He understands what you are going
through and can help you get on with your life. - http://www.burrlawoffice.com

The author invites you to visit: http://www.burrlawoffice.com

Your Family Budget - The 3 Steps To Do It Right

Your Family Budget - The 3 Steps To Do It Right
by Shevach Pepper


If you are reading this article then your financial situation is probably in pretty bad shape and you want to change it. Don't we all? One of the main reasons that people don't even attempt to make a budget (there are other simpler reasons why they don't implement it) is that they think it is a very complicated process to make a family budget. They reason, "If I can't succeed why even try?" I understand their reasoning but it is not really so complicated. In this article I will show you the 3 basic elements of a family budget and how to do them.

To make an effective family budget there are only three things you have to know; your income, your expenses, and how to bring about and keep that your expenses become less than your income. That's all there is too it. But you have to make sure that you know exactly these three things, rough estimates based on your feelings and not solid data is not acceptable. Without cold numbers our mind plays too many tricks on us. Once your income is greater than your expenses then you will enjoy financial security. The question only is; how to do this?

The first step to doing this is to track ALL of your expenses for about a month. This means to record; what goes out of your bank account (such as your mortgage or your insurance payments) , what you buy in the grocery store, what you spend on entertainment, what you spend on transportation, etc. You can write it on pieces of papers and save them in your pocket, your wallet, or your pocket book. If you want you can put it into a spread sheet on your computer. It makes no difference. The only thing that is important is that you write down somewhere where every penny goes.

At the same time, track and write down all of your incomes; pay checks, presents, stock dividends. Any money that you receive has to be written down.

The third step is, that at he end of the month write down (or enter into your computer) all of these figures into 4 columns. Write in the first column on what you spent your money. In the next column, corresponding to the first one, how much money was spent for each thing. After that in the next column from where you got money. And in the last column; how much money you received. Tally both of these columns and see which one is bigger. If the total of your income is bigger than your expenses, then you are in good shape. If not, then you have to see where you can cut your expenses or raise your income.

Start today tracking and recording all of your expenses. It might be a little annoying in the beginning, but it isn't at all overwhelming. After a few months of doing this you will feel less annoyed at the process and the more you adjust your expenses to be less than your income you will be able to begin to live a happy life of financial security.



If you are having trouble keeping to your budget or are experiencing other family pressures then Click here learn practical tips, techniques,and strategies to help you successfully deal with family problems.

Contact the Author
Shevach Pepper
family relations
More Details about family budget here.

How Does Refinancing A Car Work?

How Does Refinancing A Car Work?
by Jennifer Quilter


Happy to have a new vehicle, but not so sure about your new interest rate? Let's look at how does refinancing a car work and what it can do for you.

If you know much about refinancing a home, then I'd like to start off by telling you that a vehicle will be much simpler. With a home there are large upfront costs and math to be done to ensure it will be worth it.

With a vehicle things are much more straight forward.

Refinancing means to finance again. You are replacing your old loan with a new one, and using the new on to pay off the old one. When you go out to look for a new loan the biggest thing you are looking for is a lower interest rate. The lowest interest rates are usually found at credit unions, but to ensure you get the lowest rate possible I suggest searching for five rates and comparing. This way you know you'll have found the best possible deal.

So, how does refinancing a car work? Once you find your new, lower rate, you pay off your old loan with the new one and then start making the payments on your new loan. It's that simple.

Another benefit some people look for is extending the life of the loan. Because the loan amount is probably lower now, when you get the new loan you can look at spanning it out over a longer period of time. This will give you lower monthly payments now, but will also mean you'll be paying more total interest in the end.

With a new loan you have all new options and possibilities. Anything you don't currently like about your current financing can be changed by starting over. When we look at how does refinancing a car work we see it is starting over.

If you still want to know more check out How Does Refinancing Work? for more helpful information,
including explanations for refinancing a mortgage and the pros and cons of refinancing.

---

After spending her post college years climbing out of debt, Jennifer
Quilter has spent a great deal of time reading up on finances. She now
combines that knowledge with her love of writing and helping other people
understand the complicated world of finances.

Contact the Author
Jennifer Quilter
finances
More Details about How Does Refinancing a Car Work
here.

Money Saving Tips - 7 Super Simple Ways to Save Money

Money Saving Tips - 7 Super Simple Ways to Save Money
by Heidi DeCoux



#1 -- Go out for dessert instead of dinner. Dinners out can get expensive but it's not fun to stay in every night. Eat dinner at home and go out for dessert. To save time and reduce the temptation to go out to eat, make up large batches of food and freeze it in individual serving
containers. This way you can heat up a homemade gourmet meal in minutes then go out for a yummy dessert after wards.

#2 -- Borrow instead of Buy. Need a special tool for a project or maybe a hedge trimmer or tent. Go to NeighBorrow.com to find someone near you that will happily lend you theirs, free of charge.

#3 -- Turn down (or up, depending on the season and climate you live in) your thermostat before you leave your house. Shut the vents off in rooms that you do not use during the day, such as, bedrooms or family room and keep the doors closed. No sense in heating or cooling rooms that are not being used.

#4 -- Have a Clothing Swap with friends. Invite your friends to clean out their closets, bring over their unwanted clothing and accessories along with a dish to pass. Lay out everyone's clothes. Eat, mingle and shop - for FREE! You'll probably leave with at least a couple of new fun pieces
to add to your wardrobe, and you'll have a fun and free night out. Simply donate all of the left over items to charity.

#5 -- Unplug items you are not using. Even if they are off they are still pulling current. This cost savings will add up to more than you think. If you don't want to continually be unplugging items, invest in a Smart Strip (different than a standard power strip). It does not allow your items to pull electric current when off. You will probably cut your electric bill in half. For more info on Smart Strips go to http://clearsimpleliving.com/page/smartbuys .

#6 -- Wash all your clothes in cold water. It's better for your clothes, especially darks, and generally they come out just as clean. Just use a little pre-spot if needed. Also, stop running your water continuously when brushing your teeth or washing dishes.

#7 -- Consider buying gently used versus new, check Craigslist.org, Ebay.com or HandMeDowns.com before paying retail. You can save a bundle!

Added bonus: It's great for our environment when we re-distribute items instead of tossing things out and re-manufacturing new things.

Cheers to saving our planet and saving money!

---

Heidi DeCoux is the publisher of the Life Made Simple E-zine and a
professional organizer in Minneapolis http://www.HeidiDeCoux.com
specializing in home organization http://www.clearsimpleliving.com.
Heidi energizes her readers’ lives by simplifying their homes and
schedules. For more info, free tips on how to find more time in your day,
and to receive her FREE Report: The Fast & Easy Way to Get Organized and
Stay Organized Forever, visit www.ClearSimpleLiving.com and discover how
to end the frustration of endless searching for things and find what you
want fast so you can have more fun!

Contact the Author
Heidi DeCoux
Home Organization & Personal Time Management
heidi@heididecoux.com
More Details about Money Saving Tips here.

Survive the Economy with Shared Housing

Survive the Economy with Shared Housing

by Rosemary Lichtman, Ph.D.


Multi-generational households are making a comeback for Boomers in the
Sandwich Generation - especially with the lack of jobs available for new
college graduates and the financial pinch felt by aging parents as their
retirement incomes dwindle. Don't be disappointed if you were dreaming
about the empty nest. This new living arrangement can reduce stress, with
more family members sharing household responsibilities, financial
expenses and emotional support. That is, as long as guidelines are
clearly set in the beginning and upheld.

Families today are facing a new kind of housing crisis as the economy
continues to be problematic. When one spouse in a two-career marriage
loses a job, making the monthly mortgage payment becomes difficult,
especially for Sandwiched Boomers. Senior citizens who have been able to
pay for housing from their retirement accounts must cut back on that
expense when their retirement funds are down by 50 percent. When a
mortgage begun with an artificially low interest figure calls for a rate
increase or a balloon payment, the cost becomes prohibitive for the
nuclear family.

These scenarios are not about Gen X and Gen Y kidults boomeranging back
home, with connotations of immaturity or irresponsibility. Rather they
reflect adults struggling with the real effects of a global financial
meltdown not faced in over 75 years. An AARP study revealed that more
than ¼ of the foreclosures and delinquencies last year occurred among
those 50 and over. These seniors and their adult children are looking
carefully at what to do to ease the economic woes that have hit everyone
hard.

Some younger families are moving in with their parents, pooling their
funds for mortgage payments. In other cases, seniors are giving up their
individual, larger homes and moving into 'granny flats' or guest suites
on their children's property. Irrespective of the type of arrangement and
reason for combining two families into one home, some serious planning is
needed before taking the plunge. Here are 6 tips to put into play before
sharing daily life with extended family:

1. Have a family meeting to set guidelines before you move in together.
Be frank and honest about your needs. You'll each be giving up some
autonomy and control so you can expect to have situations where push
comes to shove. Present your positions for the best and worst case
scenarios. Then decide how you want to compromise so that everyone gets
some of what they want. Put any absolute deal breakers out on the table
so they can be discussed in detail.

2. Set boundaries so that everyone's privacy is respected. Living
together with roommates in a college dorm is one thing but sharing space
with adult family members can get awkward. Identify signals to use when
one of you wants to be alone. The last time you all lived together, the
circumstances were quite different. Old issues around power or dependency
can resurface in this close environment, particularly when there may be a
difference of opinion about how to handle issues with
children/grandchildren.

3. Work out a schedule for shared responsibilities, chores and finances.
Gain consensus about making the division of labor equitable. When
children/grandchildren are part of the mix, arrive at a clear timetable
with regard to babysitting so that no one feels exploited. The
multi-generational experience can foster a closer relationship between
grandparents and grandchildren, with the middle generation being able to
step away from some care-giving tasks.

4. Respect the needs of everyone involved. When each person feels heard,
it takes away some of the frustration stemming from the lack of control.
You can be supportive to one another just by listening even if you don't
agree with the reason for the complaint. Use the techniques of active
listening and sending I-messages.

5. Think about the problems that can arise and make a Plan B. Just
because you all are having some difficulty with the new living
arrangements doesn't mean you have to discard the entire idea. Continue
to schedule family meetings to discuss the issues and conflicts. Lack of
privacy, intruding on other family members' boundaries and unwanted
advice are often sore points.

6. Be flexible and learn to love compromise and cooperation. Look at the
situation from the perspective of other family members as you work on
understanding their positions. You are all in this together and while you
may not get exactly what you want, you can work out a solution that is
good for everyone.

Generations living together can lead to a win-win situation. Even with
the potential costs of remodeling to accommodate both families,
maintaining one household rather than two creates considerable savings.
And other positive outcomes develop. Support generated on both sides can
serve as the foundation for resolving past misunderstandings, making
forgiveness easier to accomplish. The close bonding allows for building
rich memories to savor over the years. And the expression of gratitude is
good for both giver and receiver. As the older generation continues to
age, these times can be the impetus for planning care by a newly
sandwiched generation, with grandchildren pitching in to help.

(c) 2009, Her Mentor Center

---

Rosemary Lichtman, Ph.D. & Phyllis Goldberg, Ph.D. are co-founders of
www.HerMentorCenter.com, a website dedicated to the issues of mid-life women and www.NourishingRelationships.Blogspot.com, a Blog for the Sandwich Generation. They are co-authors of a forthcoming book about Baby Boomer women and their family relationships. As psychotherapists, they
have over 40 years of collective private practice experience.

Contact the Author
Rosemary Lichtman, Ph.D.

Tips for the Sandwich Generation
Mentors@HerMentorCenter.com
More Details about shared family housing
here.

Save Energy and Save Money

Save Energy and Save Money

by Jane Cocker

Check out these instant FREE ways to save money and energy:

Cost: Your laundry hides two appliances that cost you a load! Your
washing machine and clothes dryer cost you money and energy savings on a
daily basis. A hot wash with warm rinse for example, will set you back
about 80 cents a pop; a quick load in the clothes dryer has you paying
about 45 cents each time.

Freebie: Replace your hot water with cold, instantly saving up to 50
cents per wash. Over a year this could be as much as $167.00 in savings!
Switch to air-drying your clothing rather than operating the dryer and
put another $135.00 away a year for rainy days!

Cost: A typical 75 watt incandescent light globe uses about 5 cents an
hour to run. Households use multiple light fittings and we ‘flick the
switch' so often that these little power suckers are guilty of costing us
up to $110 a year to run.

Freebie: If you aren't in the room, switch your lights off. Simple!
Replace standard bulbs with energy savings; energy-efficient bulbs last
up to six times longer and use 80 percent less energy. What a great idea!

Cost: Are you still running your 1972 cooler-box as a ‘beer fridge'?
Older appliances are energy-hungry, gobbling up to $90 more a year to run
than current energy-efficient models. If you have an ice-chest from the
Ice Age that you keep bait in too, then add another $75 a year to your
energy costs. Freebie: Get rid of your aging or faulty appliances and
replace them with star-rated energy efficient ones. And finally, you'll
have a lot more money left over for fresh bait and cold beers if you just
get rid of that rusted fridge in your back shed!

---

British writer living and working in Buenos Aires.

Contact the Author
Jane Cocker

More Details about how to save energy and money
here.