Michael Porter’s Competitive Advantage model sets out a strategy that creates a positioning in your market place based on sustainable advantages that you can build up in your industry.

Porter states there are basically two types of competitive advantage that results in a third viable competitive strategy and gives you your USP.

The two types are differentiation and cost leadership, i.e. the low cost producer.

The differentiation model determines those companies who look at their uniqueness in the marketplace, based on the viewpoints of their customers. These could be the product itself, service, brand image, marketing, service back up, etc.

But this doesn’t mean the company can ignore its pricing position. In areas that don’t affect its differentiation, costs should be kept to a minimum, says Porter. Only in the unique differentiation areas should the price premium paid by customers be seen as valuable to them.

The other competitive advantage is being the cost leader in the industry. This is often achieved by economies of scale, and the differentiators should still be considered important, even if you are attempting to offer lowest price. If price is your only differential, someone, somewhere will beat you short or long-term. And then what happens to your advantage?

Porter then states that the result of your first two competitive advantages is your focus. That is, you set out to be the best in a segment or niche market. This explains why some companies set out to differentiate themselves in the market, then lose their focus and fall behind the competition. You must look for other niches that will attract customers rather than become outdated by focusing in areas that don’t attract current customers.

Porter’s Competitive Advantage model offers an effective and important addition to your management portfolio by focusing on what your company should do best. That focus is better than trying to appeal to all sectors with some differentiation and average pricing. Customers will be unable to determine what you actually stand for unless you offer some kind of advantage to them.

It’s an interesting model that creates a firm strategic model for progress in your industry.

Thanks again

Sean

Sean McPheat
Managing Director
MTD Management Course

Click below for a:
FREE email course “Improve Your Management Skills”

We had an interesting question on one of our open management courses recently. The activity was about staff motivation, and a delegate asked what she could do when she had no money for bonuses to recognise the input from high-performing staff.

She noted that praise and recognition was a good motivator for some, but she didn’t know how to use it effectively, beyond the usual ‘thanks for a good job’. Could any of the delegates help her, please?

The comments were backed up by other delegates, so we came up with a checklist that would support this very important leadership aspect of motivation within the workplace.

We all know that affirmation is a key principle in our self-worth. We all like to feel we have made a difference in some way, and when our efforts are recognised by our peers and management, it boosts our self-esteem and our self confidence.

Here’s a quick checklist to ensure your praise and recognition of your team’s efforts is carried out correctly and effectively:

Find something to praise in every team member: This will help you focus on looking for the good, rather than always looking to find fault.

Do it spontaneously, but only if it is deserved: You have to maintain credibility with staff. Praising them for getting back from lunch on time is seldom seen as boosting self-esteem; praise has to be a reward for success or accomplishment. You lose respect and credibility if praise is seen as patronising.

Praise specifically: Tell people what you liked about the job they did. Rather than ‘Well done for that’, say ‘I thought they way you handled that call was excellent. You really kept your cool under pressure’.

Praise for skill development: If you are looking for the team member to improve in a particular skill, look out for opportunities to praise that skill. A small amount, given often, will subliminally affect the team member for the positive.

Praise effort, not just achievement: This will help people see that their efforts are being noted, even if they don’t always succeed.

Praise individually and in public: Letting others know how well someone did will encourage the team to support the individual and drive them to higher levels of effort. Be careful, though, that the reasons are given for the praise, so jealousy doesn’t set in with some.

Show praise in a variety of ways: A quick hand-written note, a non-verbal nod and smile, a mention in the newsletter or on the intranet are also ways that praise can be shown.

Don’t use praise to cover over a criticism: ‘Well done on that call, Phil, but watch out for raising your voice when you’re frustrated’. Phil will only remember the criticism there. So don’t try and soften any critical remarks with praise; separate them out, or your team member will become suspicious of any praise you give in the future.

Praising, then, is a skill that is simple, inexpensive and inexhaustible. It can have a ripple effect on people, who subconsciously look for other ways of creatively carrying out the work that was noticed. Remember, praise needs to be given in the right way, at the right time and for the right reasons.

Thanks again
Sean

Sean McPheat
Managing Director
MTD Management Course

Click below for a:
FREE email course “Improve Your Management Skills”

W. Edwards Deming is famous for developing a continuous quality improvement model. It’s a sequence of four steps that can take you through any project successfully and creates a benchmark for you to follow.

It’s known as the PDCA model or cycle, the letters standing for Plan, Do, Check, Act

Of the many management models available, Deming’s is one of the most straightforward. Its analysis of how change can be managed has helped various businesses drive towards improved productivity and profits. The essential elements are:

PLAN: plan ahead for change. Analyse and predict the results.

DO: execute the plan, taking small steps in controlled circumstances.

CHECK, study the results.

ACT: take action to standardise or improve the process.

Each of these stages can be monitored for any project you’re working on, and create a great framework for you to assess your results.

Which stage is the most important?

They all link together, but if the plan isn’t laid on solid foundations for improvement, the results won’t drive the business forward. Executing a plan is important, but if the results aren’t measured and monitored, you are simply taking action for the sake of it, and can’t make contingency arrangements.

Results will occur whatever action you take, but if you want to get the same results again, you need to identify the recipe and standardise the actions you take, so you can get the same results again.

Deming’s model has been used effectively all over the world, and offers a sound basis for changing your approach to work.

Thanks again
Sean

Sean McPheat
Managing Director
MTD Management Course

Click below for a:
FREE email course “Improve Your Management Skills”

It’s easy to give good feedback to your staff. You enjoy it, they enjoy it, you both get a lot of good feelings from it.

What if the feedback is not so good? How do you deal effectively with a situation where the team member needs less-than-positive feedback?

Here are some ideas:

Ensure you keep the lines of communication open. That way, your team member isn’t fearful every time you speak to them.

Don’t wait too long. The team member needs to see the link between the event and the feedback quickly. If not, the effect dissipates.

Be specific. “I want to discuss the project for client A with you” is much better than “Can we talk about the quality of your work?”

Describe actual behaviours rather than labels. Forget the “feedback sandwich”, good-bad-good; it’s seen as ineffective these days and dilutes the impact of good feedback.

Why the feedback? What was the result? Who was affected? The impact gives meaning to the feedback.

Focus on positive items. The more positive you are in your feedback, the more likely people are to repeat what you want.

Don’t make the feedback personal. It should be to enhance and drive change in behaviour, not as a label of another person’s character.

Check on how it’s been received. Maintain the positive interaction, and the team member will see the value of the feedback you’ve offered.

By maintaining good lines of communication, your feedback will be seen as part of the ongoing dialogue rather than you specifically focusing on the negative, and ignoring the positive.

Be aware of the results of your feedback on morale, and you’ll be seen as a competent and approachable manager, as you improve your feedback skills.

Thanks again
Sean

Sean McPheat
Managing Director
MTD Management Course

Click below for a:
FREE email course “Improve Your Management Skills”

Employees who take more days off than their peers can cause real problems for you. Morale, productivity and profits can be affected, and can irritate you more than than anything else, as you have to make swift arrangements to cover for the absent person, or simply lose the value of their contribution for the time they are off.

What can you do to deal with this ever-increasing problem?

Ensure team members rely on each other
They are less likely to take time off if they know their team mates will be affected by their actions. So, use work teams to get employees involved with each other. Let them work on projects or activities where they rely on each other’s input. Build trust within the team by opening the lines of communication in team meetings.

Look for warning signs
Keeping regular contact with each employee you are responsible for may nip potential problems in the bud. If people take time off because they are bored or don’t find the job challenging, you will pick this up in your regular 1-2-1 chats with them.

Watch for patterns
If the employee regularly takes time off that coincides with major events or happens to be a certain day of the week, keeping tabs on this may highlight a particular problem.

Maintain an evidence record
If you’re suspicious about a person’s absentee record, you need to keep evidence in writing, so you can manage the situation properly, if it comes down to it.

On their return, review the situation
The employee needs to know that you take it seriously, so a quick meeting on their return can un-earth specific problems they may be encountering.

Support legitimate personal problems
All sorts of problems may cause a person to take time off, and if family problems, low self-esteem, genuine illness or lack of motivation at work are seen as root causes, you need to approach these situation empathetically. Could the company offer help by way of training, extra holidays to deal with crises, counselling or something similar?

Make firm decisions if necessary
With a written record of the situation,you have strong grounds to approach the person with evidence and the need for explanations. Whatever the cause is, take firm action to deal with the problem. The longer it goes on, the more frustrated you will become with them, and that is not good for your employee relationships.

If counselling is required, arrange it. If discipline is needed, take it swiftly. If a warning or stronger is warranted, notify them in writing, and have the m sign the documents. The employee needs to know where they stand, and you need to set the standard for the team you lead.

Here are some tips in setting standards with a team of people:

Reward good performance that can only be attained by excellent attendance
Consider flexible working hours, child-care facilities and fitness programmes
Have policies to deal with legitimate employee absence. Keep in touch with absent colleagues by phone to check their illness
Look closely at the specific reasons why staff choose to be absent. If it’s regular, it may have more to do with the type of work that they are doing than any outside influence.

Dealing with absenteeism is a frustrating and sometimes annoying aspect of your job, but by analysing and recording the reasons, you give yourself a good chance of dealing with it it effectively.

Thanks again

Sean

Sean McPheat
Managing Director
MTD Management Course

Click below for a:
FREE email course “Improve Your Management Skills”