E-learning.gov - News You Can Use

T+D, Oct, 2002 by Eva Kaplan-Leiserson

Be prepared. When you start a business, you should include in your business plan criteria under which you'd fold. Then keep your eyes open: don't ignore warning signs because you're emotionally attached.

Watch the cash flow. If you're struggling to balance income and expenses every month, it could mean that your cash flow is too tight to keep the business running. Everyone has short months, but be alert to that trend.

Examine the qualitative. Some warning signs won't appear on a balance sheet. For example, an increase in customer complaints or a steady loss of customers may hint at problems with products or services.

Be honest with yourself and others. Don't delude yourself that things will turn around any minute when the d ata says otherwise. And repeat this 100 times: "I will not play with the numbers."

Don't panic if you spy some of those warning signs, but do evaluate your business's chance of success carefully. For second opinions, consult your lawyer and accountant. They can tell you if they think the business is in real trouble. Another good advisor? Your spouse.

Look for excess. Do you have lots of employee turnover or large price cuts? Both are warning signs that something may be wrong.

Read your mood. If you're stressed and unenthusiastic about going to work in the mornings, it might not be worth fighting to keep the business afloat.

* Source/www.bcentral.com

Survey Says

What qualities do effective leaders have? That's the question the Society for Human Resource Management asked in its 2002 Global Leadership Survey. Responses demonstrated that organizations worldwide value similar characteristics. Most important traits for a leader, based on overall results:

performance, 85 percent

character, 82 percent

adaptability, flexibility, and persistence, each 78 percent

The numbers were a bit different for the United States, which has been rocked recently with corporate scandals.

Character took top billing, followed by performance, flexibility, and ethical standards.

The way leaders were developed:

external leadership development training (universities, professional organizations, and so forth), 57 percent

internal leadership development training, 51 percent

temporary stretch assignments to develop new skills, 48 percent

international assignments to gain diverse experiences, 47 percent

The report is available for SHRM members * shrm.org/surveys/results.