Financial Bits and Bytes

Many companies devote hours negotiating the “substantive” terms of a contract, but pay little attention to the dispute resolution clause often included among boilerplate terms at the end of the contract. This is a risky practice, since rights that were carefully bargained for may effectively be lost if the “right” dispute resolution procedure is not negotiated at the outset. When it comes to dispute resolution clauses, there is no one-size-fits-all solution. Those negotiating the agreement must fully understand the dispute resolution options available and their implications in different contexts. Because arbitration is a creature of contract, the ability to negotiate

There are 2.9 million full time virtual workers in the U.S., a 61 percent increase since 2005. Plus, 44 percent of U.S. companies plan to increase their virtual workforce. As virtual teams grow, the issue of how to manage, communicate, broker issues, collaborate and integrate team members becomes increasingly difficult. Without a cohesive team, the result may be duplicated effort, or incomplete tasks. Recruit the right people – Not everyone can work independently in a virtual environment. If not, they will be frustrated, and you will be disappointed. Recognize conflict when it appears – There can be conflict in any

I was watching a movie the other day, and a company executive walked into the office, a large room with row upon row of desks, filled with women typing on typewriters. It was sometime in the 50’s. My, how things have changed. The advances in mobile technology have changed the way we live, but the changes in the way companies get things done is just as significant. The typical new age company no longer has assigned desks for employees, and cubicles are a thing of the past. The office is an open environment. People have flexible hours, and since working

For nearly a century, performance management was shaped to “manage” performance. Often the subject of performance reviews brought dread to managers and employees alike. It is, in fact, the process whereby managers are asked to review an individual’s contribution against stated goals and objectives. Often, this undertaking is delayed in business and has been used historically to rank individuals within a department or begin the process of documenting performance improvement or failure, rather than performance achievement. In fact, if managers were leaders, they would know that they should not manage people. Instead, they should manage the process. People work within

Aside from whatever emotional feelings you might have about those two words, your decision likely reflects the way you run your business. The issue isn’t just about the emotion, it’s about how you lead, think, problem solve and ultimately, how you run your company. And to be honest, neither choice is wrong. But how you answer that question impacts how you deal with the problems and issues everyone faces at your company. Let’s look at this from some different directions. TIMEFRAME – Is the result immediate, or is it far reaching? SIGNIFICANCE – Is it practical, or is it thoughtful?

We truly don’t know when the recession is coming. It might be in six weeks or six months. But historical financial records show that one is coming. So, how can you prepare your company to better handle the recession when it does come? Last month, I discussed how carefully managing your Accounts Receivable and Inventory can help prepare you for what’s coming. This month let’s take a look at some other crucial business matters. Manage your use of credit Carefully use your credit line. A credit line should never be used to cover operating losses. If you are near the

I was visiting with a business owner the other day, and we were talking about his Cash Flow. The chart he showed me had a slow, but steady decline in cash flow over the past two years. I asked him what he was going to do about it, and he took a long ruler, laid it on the trend line, and pointed at the point where the cash flow hit $0. He said “That’s when I leave the company.” This raises a lot of issues. The biggest one, and one I hear from an increasing number of business owners is

The market has hit dizzying heights, the tax bill has boosted corporate earnings, and consumer confidence is up. The effects of International trade trickle down to the small businessman. We all recognize that as the economy goes, so goes the small business. Whether your business is B2B or B2C, it doesn’t matter. You will benefit or suffer just like everyone else will, when it happens. Of course, I mean when the Recession hits. But things are going so well!! Everyone realizes that there is a business cycle. During the highs, many companies succeed in spite of themselves. Some will make

One of my first jobs was working at a Public Utility. My boss was an engineer, Bryon Kustka. He was a really good manager. But, since he was an engineer, I thought that there was little he could say to guide me in my career. One day he told me something that has stuck with me for the past 45+ years “Never tell anybody your problems. Half the people couldn’t care less, the other half will be glad you got what you had coming.“ Funny, right? It also rings true. But the most important thing for me was how to