We are currently faced with tough and uncertain economic conditions. I believe the business climate will deteriorate further over the next 12 months. No matter what type of business you operate, or how successful it's been, times like this call for heightened attention with respect to the management of your organization.
It's hard enough to keep a business on the correct path during a strong economy. The challenges are much greater as things turn sour. As a business owner, you and your executives and managers must pay careful attention to all aspects of your operations and make needed changes on a timely basis. Here are several suggestions to help you prevent your company from losing its course and "running off the tracks."
Work as a team - Meet with your key executives and managers to establish fresh buy-in from each person. Make sure you're all working towards the same objectives under carefully-aligned operational and departmental strategies.
I'm ashamed to admit it, but it has taken an award (of sorts) to get me re-focused on making updates to this blog. I just learned that The Solo Accountant Reporter has been included in the"Top 100 Freelancer Blogs" post in an information-packed blog entitled Bootstrapper. The post opens with this commentary: "Freelancing is often a difficult profession: it can be lonely and nerve wracking at the same time. But you can make it easier on yourself by learning from and bonding with other freelancers out there who’ve blazed the trail ahead of you. Here are 100 blogs, in no particular order, that can help you find advice and guidance for your freelancing career."
A critical step in the employee hiring process is reference checking. Paul Barada, a salary and negotiation expert with Monster.com, has identified the most common reference checking mistakes made by recruiters and employers. He lists them in his article, "Reference Checks: Five Mistakes You Want to Avoid." Here they are:
Barada adds, "Careful reference checking requires time, training and insight. If done properly, it can be one of the most useful hiring tools available to any employer. If done poorly, it can lead to hiring someone who not only can't do the job, but also who could do more harm than good for the company."
A good defense against employee fraud starts with a proactive antifraud mindset by top management. This should result in company polices and procedures, and employees, that work together to prevent and deter wrongdoing in the organization. Tracy Coenen, a CPA and reknowned expert on fraud investigation, recently posted the following in her FRAUDfiles Blog:
Top Ten Ways to Prevent Employee Theft
1. Education. If employees are aware of fraud and how it happens, they will be your best on-the-job sleuths.
2. Surprise Audits. When employees are aware that there will be random checks of their areas, they are more likely to be honest. They also will not feel singled out when it is their turn for an audit.
3. Hotlines. A mechanism for anonymous reporting of fraud encourages employees to look out for the best interests of the company, without fear of reprisal.
4. Assessment of Internal Controls. Companies need to take an honest look at what fraud prevention controls they have in place. They also need to be honest about whether or not those procedures and policies are being followed and whether or not they really work.
5. Background Checks. Having the right employees is the first step toward fraud prevention. Avoid employees with criminal backgrounds or dishonest job applications.
6. Open Door Policy. Make employees feel that it is okay to discuss concerns with management. And then when they do discuss their concerns, act accordingly. Ask lots of questions, but be supportive.
7. Perception of Fairness. Pay your employees fairly and try not to show favoritism. When employees feel cheated or devalued, they are more likely to justify stealing in their minds.
8. Employee Empowerment. Give employees the authority and confidence to make decisions and take action. The more involved and empowered employees feel, the more likely they are to look out for the best interests of the business.
9. Continuous Improvement. Management should be constantly looking for ways to improve policies and procedures. Fraud prevention is an ongoing, dynamic process that requires continuous evaluation and improvement.
10. Employee Involvement. Your employees are the people who are most aware of areas vulnerable to fraud. Talk to them and ask for their help in securing the company.s assets. Fraud prevention applies to everyone, from the top down.
Working together. Whether on the field, or in a business turnaround, fraud investigation, or other critical matter, teamwork is a critical success factor.
As a forensic accountant and business consultant, one of the first steps I take on an engagement is to identify all the key players that will participate in the assignment. This begins the process of building a teamwork approach to seeing the engagement to its ultimate successful completion.
Early discussions with client management and their attorneys, external and internal auditors, and others such as computer forensics specialists and private investigators, allow for timely clarification of individual roles and responsibilities and engagement issues, strategies, and timetables. Project leaders emerge from this effort, and under their direction the team is hopefully brought together to form a united group...with each team member working toward common objectives and motivated to carryout his or her individual role.
Teamwork is critical not only at project kickoff, but also throughout each phase of the engagement. As new facts are surfaced and unexpected circumstances develop, strategies and timetables must be modified. If team members are not sufficiently communicating and working together, conflict and confusion will arise and this always results in negative results. The team must continually assess all that is going on and frequently regroup whenever appropriate.
Think about members of a well-coached football team. Certainly they begin the game with a common desire to work together in executing a creative game plan. Before each down, the coach calls the play he thinks will work best at that point in the game. Then, the quarterback might see the opposing team lined up in a troublesome defense so he calls an audible to change the play. As the game progresses, timeouts are called for the players to regroup, and then halftime is used for a more intense assessment and re-strategizing session. Hopefully, the team continues to work together as the game progresses and victory is the result.
On most every business project I've ever worked, the quality of the teamwork that existed during the engagement was a determining factor of the degree of success that resulted. This is true whether the team was made up of many persons or just a few. I'm determined to do my part to be a good team member, and team coach/leader whenever appropriate. To help, I turned to some fairly good weblog material on the subject. Here is one you may find useful:
Twelve Tips for Team Building: How to Build Sucessful Work Teams (by Susan M. Heathfield)
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