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Strategies to Lead, Manage, and Succeed in Business

SusanRanford

Steps In Creating an Excellent Company Culture

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Work culture is the way things function every day in an organization. It encompasses the behaviors and beliefs of the staff. 

A company’s work culture affects how people behave in a company and how they treat customers. It can strengthen or weaken its organizational structure. 

For an organization to succeed, it is important to create a strong company culture. So, how do we create a culture that ensures the organisation and its people thrive? Here are some tips on how to go about it.

1. Have a purpose 

Your purpose will determine the work culture as it will guide how you interact and do business. 

If a company wants to have a great purpose, it must set up clearly defined goals aimed at excellence. By focusing on and achieving worthy goals, a company will create a culture of excellence.

2. Set a vision

In order to project excellence into the future, company leaders and staff must work with a vision in mind. The vision that leaders have, determines where the company will end up in years to come. 

Company leaders should write a vision statement that everyone in the company will follow. The statement will give purpose to every day of the companies’ existence, guiding the  and  leaders and staff choices. Following a good vision is a sure way of creating an excellent culture.

3. Set strong standards

The standards of a company will determine its culture. Standards help people choose the right values. The right values attract great customers and guide employees to do the right things. 

Determine the standards in your company and establish them by outlining them in a mission statement. This will create a strong foundation for your company. The main focus should be to provide the best services or goods. 

4. Let people lead by example

Leaders of a company and their values determine how the company performs. If the leaders have great values, they will create a great example that employees can follow. 

Therefore, company leaders must adopt habits of success and ensure the management team does the same so that they lead by example. Their focus should be doing the right thing and handling any problems promptly and efficiently. That will create a great work ethic that will benefit the company and its customers.

5. Establish a strong brand

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Establishing a strong brand is an essential step in creating an excellent company culture. Your company needs ambassadors that represent your brand. 

Your brand will inspire the staff and anyone associated with it to stick to company values. How strong your brand is, can also determine your customer base. Follow these steps to come up with a great brand.

6. Treat employees right

If your employees are unhappy, they are unlikely to maintain a work ethic that produces excellence. New Jersey Employment experts believe employees who are  well paid and treated right are more productive. After all, employees are the face of the company to the customer. 

A company with an excellent work  culture must have policies in place that establish worker’s rights.

7. Focus on quality

The quality of your services or goods will bring the customers to your door and build your reputation. As a step towards creating an excellent company culture, focus on actions that will lead to quality creation. 

Compromising on quality will end up hurting your brand. Invest in any procedures, training, or people that will push your company forward by producing quality services/goods, and you have a winner.

8. Embrace changes

If you want an excellent company culture, create a habit of looking ahead and preparing for change. Whether good or bad, your company must adapt to stay ahead. Therefore, create a habit of embracing change and even driving it where possible. 

Favorable change can bring you profits, and any adverse changes need to be foreseen, prepared for, and overcome. For example, with rising costs, you may have to embrace energy saving options such as architectural window tinting to save costs. 

You may also have to embrace modern technology to bring your company, its services, and products into the digital age. If you decide to stay in the analog era, you will have a hard time establishing excellence.

9. Communicate well

Communication is the foundation of great relationships. Communicate your goals to managers and workers and find ways of making sure what you say is understood and done the right way.

If you communicate your vision well, then you will succeed in seeing it accomplished. With numerous successes arising from well-communicated visions and goals, you will establish a culture of excellence in your company.

10. Interact with others 

Create great relationships with brands that have adapted and mastered an excellent company culture. You will learn from them how to conduct business in ways that bring you success. 

Networking with successful companies will also expose you to a more extensive customer base, which will bring you more profits. Where employees interact, they can learn from each other in ways that benefit your company. Therefore, make an effort to reach out to successful brands and networking with them often.

Last word

These are just a few tips on how to create an excellent company culture. It all starts with the desire for great things and the will to work on a great future. As a company leader, take it upon yourself to work on ways of improving your company culture, and you will see the benefits of higher employee satisfaction, lower turnover, happy customers and consequently, increased profits. Try these tips and see how they transform your business.

Author: Denise Paul

Understanding Predictive Index Test Scores

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Baffled by your Predictive Index Test score results? 

In this article, we will shed light on the test result of the two common Predictive Index Tests: the Predictive Index Cognitive Assessment and the Predictive Index Behavioral Assessment. 

What Is The PI Cognitive Assessment?

The Predictive Index (PI) Cognitive Assessment is a 12-minute timed cognitive test that is made up of 50 questions, which are comprised of three categories: abstract reasoning, verbal and numeric. It is a measure of general cognitive ability, or the capacity to learn quickly and assimilate new information.  

According to research, general cognitive ability is a reliable predictor of how an individual will perform in a workplace setting. Thus, many organizations use this Predictive Index Test when making hiring and promotion decisions. 

Understanding PI Cognitive Assessment Test Scores 

The PI Cognitive Assessment scaled score, is calculated according to the number of correct answer responses of the test-taker. The scaled score is the only PI Cognitive Assessment score intended to be used by employers when making employee talent-related decisions. 

What is the Average PI Cognitive Assessment Raw Test Score?

A raw score is the number of correct answers you got on your test. The average raw score in this Predictive Index Test ranges from 17-23. However, you can pretty safely say that the population’s average raw score is 20 right answers. 

What is the Norm Group?

When making hiring decisions, most employers use scoring tables of certain norm groups that relate to the job position they are hiring for. 

A norm group (or a quartile group) is a sample of pre-tested candidates who share a specific characteristic and whose scores were aggregated to develop a benchmark. When an employer seeks to hire a candidate for a new job position, the test administrator provides them with this benchmark so they can establish a cutoff score for their recruitment process. 

What is a Scale Score?

The PI Cognitive Assessment score is a scaled score that is calculated based on the number of questions you answer correctly on the test. There are no penalties for incorrect answers. In short, the more questions you answered correctly, the higher your score.

The only score on this Cognitive Predictive Index Test report that is meant to be used in relation to talent decision making is the scaled score, which is found at the top of the score report. The scale is 100-450 and the average score is 250, which is equivalent to a raw score of approximately 20/50. Every score falls into a percentile which demonstrates how your score compares to the scores of other test-takers in terms of percentages.

What are the PI Cognitive Assessment Cutoff Scores?

A cutoff score, or target score, is influenced by the employer’s decision, the profile of the job, and the recommendations of the assessment company (in this case Predictive Index). In essence, each employer determines its own cutoff PI Cognitive Assessment score. 

What Is The PI Behavioral Assessment?

The PI Behavioral Assessment is a free-choice, untimed, stimulus-response tool that is designed to measure the motivating drives of individuals. It measures four central personality traits: Dominance, Extraversion, Patience, and Formality. 

The PI Behavioral Assessment Reference Profile

After you complete this Behavioral Predictive Index Test you will receive a Reference Profile—a snapshot overview of the way you think and the way you are likely to work. 

The Predictive Index Test science team identified 17 “Reference Profile” after analyzing millions of Behavioral Assessments. These Reference Profiles provided groupings of attributes of individuals who have similar drives. 

The Reference Profiles  

Analytical Profiles:

  • Analyzer – Analyzers tend to demand a lot of details and will collect all relevant facts before forming a decision. 
  • Controller – Controllers are fast-paced and self-disciplined. They are always pushing themselves to get things done correctly.
  • Venturer – Venturers are always pushing past and exploring boundaries. They look for ways to drive the business forward.  
  • Specialists – Specialists are introspective, err on the side of caution, and are very loyal to authority. 
  • Strategist – The strategist looks at the big picture, they look towards the future and think about how decisions can benefit the whole business. 

Social profiles:

  • Altruist – Altruists are accurate, supportive, humble, and helpful workplace colleagues.  
  • Captain –  These individuals have a strong will and very independent and open to any change. 
  • Collaborator – Characterized as generally empathetic, cooperative, and patient. 
  • Maverick – These individuals tend to adopt leadership positions, they are visionaries and have high aspirations. 
  • Promoter – Promoters are extraverted and charismatic, they are popular and widely liked. 
  • Persuader – Persauders don’t easily take no for an answer. They are well-spoken and likable. They know how to motivate others. 

Stabilizing Profiles

  • Adapter – Adapters can take on different types of roles, they are typical generalists.
  • Craftsman – These individuals listen more than they talk, and are reliable workers.
  • Guardian – Guardians tend to bring precision and structure to their place of work. 
  • Operator – They are informal, relaxed, and reliable individuals.  They tend to be patient and cooperative.  

Persistent Profiles

  • Individualist – Individualists are strong-minded and tackle challenges with confidence. They are analytical and persistent.  
  • Scholar – Scholars are knowledgeable yet reserved individuals.  

Summary 

In this article, we have seen how the most important score of the PI Cognitive Assessment is the scaled score, which is based on the number of questions the test-taker answered correctly. We have also noted, that after you complete the PI Behavior Assessment you will receive a Reference Profile—an overview of the way you work and think.  

Proven Method to Inventory Forecasting and Accurate Budgeting

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Inventory forecasting or estimation can be explained as a financial routine of preempting or forecasting future inventory on a particular timescale. More mundane it is a scientific take on predicting specified future sales regarding a based proposed marketing approach and competitive and uncontrollable sets of forces. 

The future of your retail is predominant on Forecasting inventory and plays a big role in figures of profitability. The type of system you use is supposed to consider sales or purchases encountered in the past month; past season, and the customized duration that depends on future business transactions.

Inventory Planning In Relation To Past Month Sale
When planning the inventory for a coming month using the past month sale, the number of planning days on the inventory is pertinent. (For this scenario, 30 days) in touch with how long you intend the inventory arrangement to be worked on in regards to (for this scenario, past 30 days).

Ascertained to a specific vendor or product, it is feasible to use a brand name based filter. You will be provided with a suggested quantitative by the system you are using when filling in your inventory. 

This will be based on the past month daily average sale. The systems suggested quantity can also be used to calculate the precise delivery time of a product by a vendor.

Inventory Planning In Relation To Past Season Sale

As the one above, you will be provided with the quantities that are suggested by the system. This can help you in the afore planning of holidays like Christmas to come based mostly on how much you sold on the previous Christmas. 

In this case, you will need to have the required days, 60 days that’s for December and January in conjunction with the previous December and January to calculate a perfect inventory prediction.

With that said, looking at your fresh stock and how fast or slow they are moving is also essential. On bigger occasions like Christmas, it is imperative to apply other factors to your inventory planning on fresh stocks will help you in keeping your customers for lack of new stock.

Why Both Beginning And Ending Inventory Cost Calculations Are Important 
Firstly it aids you in monitoring your business’ current trends. For instance, on one side a beginning inventory that is decreased is a nice omen since it might result from that sales growth of a certain period.

While on the other side, it might result from problems in the processes of your inventory management or supply chain.  

For the beginning inventory cost that has increased, it might arise either from a sales’ downward trend or having stock build-up prior to a busy period like prior to holidays. Thus it is crucial to be very accurate draw right conclusions as well as make good decisions while calculating both the beginning and ending inventories.

How to Calculate Ending Inventory
Are you having difficulties on how to calculate ending inventory? Basically ending inventory is calculated by annexing new purchases with the beginning inventory then deducting the sold goods costs. In other simpler words, ending inventory is a product of the available goods that have not been sold at an accounting period end. 

Despite the unit number at the end of an accounting period is not dominant to the inventory outcome; the type of valuation system has an impact on the value of the dollar of ending inventory.

So management has to be very careful on the type of system they use.
In a time of inflationary pressures or rising of prices, FIFO brings out a bigger ending inventory valuation as compared to LIFO. In that regards, specific businesses strategically choose FIFO or LIFO techniques based on the environment the businesses are located at.

Ending Inventory Breakdown
A physical inventory count may lead to additional correct inventory valuation. However, for enormous businesses, that’s unpractical. RFID systems, Inventory management software, as well as other technologies leveraging platforms and connected devices advancements, may ease the challenge of valuation.

Other inclusive problems are:
• Listing down theft inventory levels, general obsolescence, and decreases in market value.
• A popular item of the balance sheet is the Ending inventory that is important for obtaining financing. Creditors and investors closely monitor financial statements that are owned by manufacturing and retail businesses that are inventory rich.
• Correct inventory valuations can have an impact on several popular metrics of financial statements.  

Income statement items are inclusive of gross profit, cost of goods sold as well as net income. Equity, total assets, current assets as well as working capital emanate from a balance sheet.

Every item is crucial for having a business’ performance and financial statements assessed.
Conclusion
Therefore, when it comes to forecasting, several uncertainties are for sure for every organization. To have these uncertainties’’ adverse effects reduced an organization needs to take an iterative approach to determine a projected inventory in the future.

When you have data available, everything is measurable. However, to forecast inventory accurately, you need to be focused on relevant data points. It is important to take a few points when you are forecasting inventory.



The Essential Guide to Budgeting and Business Planning For Entrepreneurs

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While running any business getting bogged down is very easy in your daily problems making you forget the ultimate goal. Nonetheless successful and rich businesses take time to manage and to create budgets, monitor performance and finance regularly, review and prepare business plans.

Any planning that is well structured can be the difference that you have wanted to make your business’ growth robust. It enables one to have resources concentrated on enhancing profits, increasing investment returns as well as reducing costs.
As a matter of fact, even without any formal processes, several businesses can carry out almost all business planning associated activities like profits, cash flow, competitors as well as contemplating about areas of growth. 

When this is converted to a consistent process that can manage the development of your business, it needn’t be time consuming nor difficult. Additionally, the plans made are supposed to be dynamic as well as well communicated to every involved personnel.

Important Steps in Calculating Ending Inventory.

There are several crucial steps one needs to follow to ascertain your plans and budgets are useful and realistic.

1. Make time to budget
If you take time in creating a realistic and comprehensive ending inventory, it is going to be effortless to manage and become more effective, ultimately.

2. Use yesteryear’s figures as a guide only
Historical info on costs and sales need to be collected if available. They are a nice indication of costs and sales that are more likely. However, it is prudent to consider what sales plan you have, how you will use sales resources as well as any alteration in competitive environments

3. Make realistic budgets
You can make good use of the business plan, historical info as well as any alterations in priorities or operations to have overheads budgeted for as well as fixed costs.

It is essential to properly work out on the relationship between variable sales and costs then utilize the sales forecast to have the variable costs projected. For instance, should your unit costs decrease by 10% for every additional 20% of sales, how much will that unit costs reduce should you possess a 33% sales rise?

Ascertain that your budgets possess sufficient info in order to have the essential drivers of that business easily monitored like working capital, costs, and sales. Accounting software has the ability to have your accounts managed.

4. Have the right personnel involvedIt is good to enquire from personnel that has financial responsibilities in order to give you with figure estimates for your ending inventory. For instance, certain project control, production costs, or sales targets should you have your estimates balanced against theirs then be certain to get a very realistic budget. With such involvement, it’ll give them a greater commitment in meeting that budget.

How to Calculate the Ending Inventory Balance

The Unit Cost approach
This approach needs one to calculate the price of every unit of the goods inventory that is finished. In order to achieve this, add the direct materials’ costs, factory overhead amount that was allocated to every sector of the entire unit cost and direct labor.

You need to determine the number of finished goods inventory units is left in the stock. This information is obtainable using the physical inventory counts or via the formulae; 

The number of units in goods inventory at the period’s beginning plus a finished number of units during that period minus the units sold during that period. 

For instance, if t the beginning you had 50000 unit in the form of finished goods then had 25000 more in that period then the total is 75000 units. And should you have sold 45000 units then 30000 units is the ending number in the finished goods?

Extrapolate the units of the finished goods inventory by unit cost. For example, 30,000 units by $18 would give $540,000 in the finished goods inventory.

Account Method
Check the finishing amount of goods inventory from the last accounting period. This type of info is obtainable from the balance sheet. For instance, assuming that the last ending inventory totaled to $900,000

Add the manufactured goods’ cost to the starting inventory amount. To obtain the price of manufactured goods add the raw materials cost, direct labor’s cost, and factory overhead cost. 

Then add that result to the beginning balance of that period for the goods inventory that is finished. For instance, should the price of manufactured goods be $450 000 in the current period, have that added to the starting finished goods inventory that costs $900000 which totals up to $1,350,000?

Subtract the sold cost of goods from the entire cost of manufactured goods and beginning finished goods. Should the sold goods cost be $810,000, for instance, the expected calculation could be $1,350,000 – $810,000 to get $540,000 in the finished goods inventory.

Both approaches help on how to calculate ending inventory, which can be used to help you monitor current trends in your business.

Conclusion                                                 
The ending balance for the 1st month will be the starting balance for the following month. You will do the same analysis. Every month you might need to interpolate more items to the analysis of cash flow with the growth of your business.


Budgeting and Business Planning in 5 Simple Steps

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All great plans commence with a very sound budget. For any business to succeed, budgeting and planning are processes come with much importance. 

While planning outlines the company’s financial direction and expectations over a specified period, budgeting specifies how the overall plan will be executed throughout the period, with more detailed expenditures. The company’s financial department usually undertakes the process under close monitoring by the chief financial officer.

Some companies, depending on their size, find it easier to use tools like Excel for budgeting, planning, and inventory balance calculations among others. There is however better software for fast-growing companies which consolidates and centralizes financial information, make it easier for finance managers to produce more accurate budgets. 

Budgeting and planning software can be purchased on its own or as part of integrated corporate performance management (CPM) system. Regardless of your budgeting and business planning tools, the process lends itself into simple steps outlined below.

NB: You need to understand that these business terms are different from forecasting, though related. Forecasting is a process which uses accumulated historical data to predict the future financial outcomes.

1. Calculate expensesThe first business order is knowing how much it is that you spend every month. You can do this via consulting financial files, receipts, and bank statements.

This is because some of the expenses are intermittent, like insurance payments, you will get very accurate financial picture should you calculate the average for six to twelve months. Add everything up for the past six to twelve months then get the average to help you know the average monthly expenses.

Do not forget that getting through when adding up expenses is crucial in coming up with a budget that is realistic. A bill which is forgotten would throw a wrench really in the savings plan.  

When you are having your expenses calculated you need to interpolate unexpected bills like car repairs. A good thumb rule is adding extra 10-15%.

2. Determine your average incomeAfter figuring out the amount that you will need to remain financially afloat every month, you will need to have the actual income determined. 

In addition to your normal salary, acquire a correct picture via interpolating in any additional funds which might come the entire year like garage sales, cash gifts as well as online item sales.

 Plus remember every other source of income such as rental income, dividends, interest, child support as well as alimony.

3. Set goals of debt payoffs and savings.
To have your realistic savings determined as well as your goals of debt payoff achieved you need to find out whether you possess a budget overage or shortfall. 

This is done by subtracting your income and monthly expenses. Should you find out that you’re making money more than you are spending well cups of coffee. That amount may be earmarked to your savings as well to pay off creditors. 

However, should you find out that you are spending more than you are making it might be high time to cut on other things in order to get a thing to save so that you don’t fall further in debts? 

A great way to have that figured out is where you are able to cut from those expenses and track every spending via recording all expenses for every month — insignificant items like cups of coffee that interpolate up over time. For example a five dollar snack a week might add up to about $260 annually which is a huge lot.

This will help you for one because you will get a blue, black frame of where every dime goes, be ruthless in cutting out expenses till your budget is in black. Cut sufficiently so that you get 10-20%of your monthly income to add it up to savings account. Should that be impossible, you might need to consider ways which might help you increase income.

4. Prediction of One-Time Spends

The importance of having a budget created has the ability to interpolate one-time purchase accurately. Although some items might unexpectedly come up such as replacing damaged laptops, others might be budgeted in advance for months such as enhancing office chairs to satiate staff need or staff thanksgiving party.

ONE-TIME SPENDS are like
•         Gifts
• Office supplies
• Furniture
• Software
• Computer

5. Put it all together
After you have all the financial, you have listed your financial situation you’ll have a much clearer understanding of your position and be able to plan for the future. 

Your next agenda should be on how to harness your spending to assist you in gaining your set financial goals. The aforementioned five steps above can help you outline a feasible budget that can help you achieve and reach your goals.

Conclusion
It may seem unachievable to create a business plan, but it is all for the good. It is something you can’t do without if you are a serious business mogul and would love to have a successful business tenure. 

Do not hesitate to take the step. It is an essential practice which builds for you the conscientious financial structure that keeps any business on track while seeking to outgrow beyond its potential.