Blogs from Luis Luarca » General Business

Measuring Employee Performance

Luis Luarca — Tue, 17 Jan 2012 00:09:36 +0000

The other day I sat with one of my employees to do his 30 day performance review and was reminded of how truly important a performance evaluation truly is to employees. According to Abraham Maslow (1968), a fundamental psychological desire of every human being is the need to “be”. In other words, all of us, inlcuding me need to “feel” accepted, acknowledged, and appreciated whether it is at work, at home, and in society (Facebook, MySpace, Mercedes-Benz, Rolex, etc). And being that we spend more time at work than anywhere else in our lives, it is imperative that business managers recognize and respect the importance of employee performance evaluations.

Over the years I have developed a pretty elaborate Employee Performance Evaluaition System (EPES) that not only helps manage business operations through training but it satisfies that fundamental need of human existence to feel acknowledged, part of the organization, and their opinion matters. In other words, evaluations are great training opportunities for employees as well as managers and evaluations are a fantastic way to show employees management is listening, and management cares not only about each employees’ success, but the success of the business as a whole.

As I sat and discussed this employee’s last 30 days I noticed he was ready and organized with bullet points, reports, and quantifiable data depicting his percieved progress over the last 30 days. What we need to take away from this is that he is serious about his success within the organization becuase we have shown him that the organization is a success and we need him to be a part of that success. He’s been watching us a managers as we have been watching his performance. In other words, this person “gets-it” and is aware and in control of his future within the organization.

Part of the success of any evaluation program is the consistency in which it is administered. Rather, you cannot introduce an evaluation program and not use it. I’ve witnessed this many times. Employees, believe it or not, want structure, they want leadership, and they want direction. An evaluation system facilitates that for them AND over time, perforance evaluations make managing the business much easier. As I meet new clients I often here (from employees) that there needs to be an evaluation program plugged into their organization, and they need direction, and they need leadership. Installed properly and used accordingly, an employee evaluation program will make everyone’s life so much easier within your organization. Don’t know how to do this? Call me and I will walk you through it.

Good luck.Similar Posts:

Are you ready for 2012?

Luis Luarca — Fri, 30 Dec 2011 03:36:20 +0000

This time of year we are all asking the same question “is my business prepared for 2012?” What does being prepared really mean? Do we have enough employees? Do we have enough sources for working capital? Or is a more important question “is my business organized enough to withstand whatever may come?” That is the million dollar question. What is to come of the U.S. economy in 2012 or better yet, what is to come of the global economy in 2012 and is your business prepared? Please do not believe your business has done well enough in 2011 that you don’t need to double check your organization’s status and please do not believe your 2011 business performance was so bad that it will be the same in 2012. In other words, be prepared at all times.

One of the companies I own a small percentage of did very well this year despite negative outlook by National media and the constant “nay-sayers” and doubting Thomases.

How did we do it? Three parts; 1) Commitment, 2) Courage, 3) Consistency.

1) Commit to change those things that are wrong with your business’ operations and stay changed. Don’t revert to what you know are bad habits. Search for professional opinion to determine where your business might be flawed, fix the flaw and commit to that change.

2) Be courageous to make relative decisions based on what you know about your operations. Seek professional advice if needed but be courageous in your decision making. If your sales are not where you need them, change the way you sell, or change the message in the sales pitch. If your operations are chewing up your overhead and SG&A expenses, change the way you operate. Often I hear clients say “we’ve always done it this way”. Well, ladies and gentlemen maybe always doing it that way is the wrong way. Note that the external environment is in a constant state of flux, why isn’t your business constantly reviewing its processes to keep up with the ever changing external environment?

3) Remain consistent in future plans and decisions especially when managing employees. Humans will test your consistency and will take advantage of your lack of consistency. Of the many facets of organization management, employees (who are truly just being humans) are the most challenging and the most dynamic where mastering “how” to understand and manage human behavior is a huge opportunity to realize business success. In other words, how you manage and remain consistent in your decisions as it relates to human behavior and how those humans behave within your organization is key to your business success in any economic environment.

Allectus LLC client’s who have communicated with me this year touted great success in their organizations and they look forward to a great 2012 because their businesses are structured, organized and prepared for what every the economy has to throw at them. Get some help for your organization, for your processes and for your employees.

Good luck everyone!
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Was 2011 a good year for your business?

Luis Luarca — Fri, 30 Dec 2011 02:35:46 +0000

Great AP article today about how 2011 will end better than most would have thought (the media-grrr). Rather, most macroeconomic numbers are pointing positve where not only is the National unemployment rate lower at 8.6% but consumer confidence is at its highest point since April of this year.
So what about you and your busienss? What are you going to do in 2012 to keep your business going stronger? What are you going to do in 2012 to help your business perform better if it didn’t in 2011? With so much positive news regarding economic outlook for 2012, are you really prepared or are you just going to sit there?

Read this great AP article from Christopher s. Rugaber, AP Economics Writer at YahooFinance.com

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Consumer confidence is better than expected

Luis Luarca — Tue, 27 Dec 2011 18:42:29 +0000

Unemployment numbers are good if not getting lower and gas prices have fallen where some economists are positve in their outlook for 2012 but still some economists are “Debbie Downers”. Where do you stand? Are you prepared for 2012 regardless economic ups and downs? There is an interesting short article on CNNMoney.com today that makes me wonder how many business owners are truly prepared for 2012. According to end of year summaries and begining of year predictions, your business could be in for a great 2012 or tough road ahead. Either way, is your business organized and prepared for 2012?

Read Chris Isidore’s article on CNNMoney.comSimilar Posts:

Is the housing report good news?

Luis Luarca — Wed, 21 Dec 2011 18:17:44 +0000

Tuesday reported better than expected housing starts where as we come into a new year I wonder, is there good news for business via these housing numbers in 2012? Housing starts are up 24.3% from last year and almost 10% from the provious month October. Data such as this as well as positve consumer confidence numbers tells me that finally, finally, the fear mongering National news media can stop creating panic and business owners can now focus on developing their businesses relative to positve data as well as good hard work.

One of my companies will end the year up almost 30% this year over last year with significant RIG numbers to boot. At least four of my previous clients have also reported positve growth numbers for 2011 as well as plans to expand their production facilities in 2012. So the big question is, are the housing numbers finally enough to get you going and fix your business once and for all? I have always said that no matter what occurs in the macroeconomic environment, your business should be in the position to manage whatever might come.

Read this article from CNN Money.
NEW YORK (CNNMoney) — Home building spiked up in November to the strongest level in almost two years, as record-low mortgage rates and a surge in apartment and condo construction lifted activity.

Housing starts shot up to an annual rate of 685,000 in the month, up 9.3% from October and 24.3% higher than a year earlier. Building activity easily topped predictions of 627,000 starts economists surveyed by Briefing.com were expecting.

Read more at CNNMoney.com Similar Posts:

National News on The U.S. Economy

Luis Luarca — Wed, 23 Nov 2011 00:05:43 +0000

This past Saturday I found myself in the local BMW dealer for service on my car and to my surprise, the showroom floor was packed with potential buyers. What gives? According to the National news and some local news reports (Houston KPRC), the U.S. economy is still in turmoil and we are still headed for a double dip recession. Really?

The next day Sunday, I was in a Best Buy to get my copy of MW3. Great game! Best Buy was also packed with customer buying everything from TVs to computers to smartphones! Seriously? Why is it that the National news presents such doom and gloom and why is that according to the National news, no one person is ever qualified to the President of the United States. In other words, why does the National news present such fear, such end of the world news and such drama?

Should we really be listening to or watching National news? Is the National news just a fear mongering outlet?
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Business Success in this Economy?

Luis Luarca — Wed, 09 Nov 2011 19:03:37 +0000

Is it possible to profit from your hard efforts in managing your business in this economy? Yes it is! Besides, what is all this talk about a double dip recession and the U.S. economy being near bankrupt? It’s fear mongering really. I recommend we all stop listening to National news because according to the National news, we’re all going to hell.

So again, how can you manage your business better in this economic environment to actually produce a profit, become more efficient or manage your business and its employees more effectively? Send me an email and I will tell you because I just did in a business in Houston, Texas. I can show you the numbers if you like (you have to sign an NDA) to prove it. It’s not magic, just reality. As a business owner, you must always have your business prepared for the unknown, The Black Swan, or at least have your business runniing smooth, efficiently, and profitably.

Send me an email. LuisLuarca@allectus.com
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Market Turmoil

Luis Luarca — Sat, 13 Aug 2011 20:38:38 +0000

This last week the market was pretty crazy – or was it? Some would say yes and some, like me say no. I have not bought or sold a stock in a couple of months but I do still track the market overall (I have to as people still ask me how it works). Actually the market works rather simply and with enough diligence, the average person can figure out how the market works. In simpler terms, the market is a giant Las Vegas. The market is really just gambling. Anyway, what happened in the market this week? Actually the market is very sensitive becuase simply, the average Joe invests in the market therefore, the market (the average Joe) reacted to the unknown. In other words, the market did what (in my opinion) it is suppossed to do every now and then – correct itself. Read this interesting report from CNN Money.com.

In all, the Dow ended the week down 1.5%, a relatively modest percentage since the blue chips had been down as much as 7% earlier in the week. Stocks are still on pace for one of their worst months in since the financial crisis however.

At the close, the Dow Jones industrial average added 126 points, or 1.1%, to end the week at 11,269. The S&P 500 added 6 points, or 0.5%, to 1,179 and the Nasdaq composite increased 15 points, or 0.6%, to 2,508.

It appears, at least for the moment, the fear among investors that Europe is heading toward a financial catastrophe and the U.S. is slipping into another recession has abated. The Dow is up more than 600 points from the low it hit on Tuesday.

Texas recession proof?

Luis Luarca — Sat, 13 Aug 2011 20:23:05 +0000

Now that I sheepishly admit I hail from Texas (Houston to be exact) and this state’s Governor has formally thrown his hat into the race for President of the United States, there seems to be an interest in this state’s job market and it’s impressive growth despite the state’s drought, brutal and muggy heat, terribly managed largest city (Houston), and the last two year the rest of the country has suffered economic losses via the last recession. Is the state of Texas’ success due to Governor Rick Perry? I say nay nay. I really don’t know why Texas, Houston in particular and Governor Rick Perry are so popular these days. There is an interesting read on CNN Money about Rick Perry’s time in office as the state’s Governor you should read. Is a Governor’s leadership truly evident in the success of a state or are there other factors that make Texas so apparently great? Hmm, interesting. Read on.

Texas has gained more than 1 million net new jobs in the decade Perry has led the state. And it’s been going strong since the recession ended.

“We are home to fewer than one in 10 Americans … but four in 10 new American jobs are in our state,” he told a conference of state legislators from around the nation this week.

But that doesn’t mean that all is well with employment in the Lone Star State. Texas leads the nation in minimum-wage jobs, and many positions don’t offer health benefits. Also, steep budget cuts are expected to result in the loss of more than 100,000 jobs.

Investors search for signs U.S. will avert a double dip

Luis Luarca — Mon, 20 Jun 2011 03:20:34 +0000

NEW YORK (CNNMoney) — Wall Street will remain on edge this week as investors continue their search for more signs that the economy isn’t heading toward another recession.

The economic data this week will provide insight on multiple aspects of the economy, including housing, durable goods and the labor market. The biggest event of the week will be the Federal Reserve’s two-day Federal Open Market Committee meeting on Tuesday and Wednesday.

Interesting question. Some say that the economy is still adjusting yet panic mongers will tell you that it’s the end of the world…again! What do you think?

Read on at CNN MoneySimilar Posts: