Horizon Point Consulting

Author: Guest Blogger

  • Focus on What You Can Control: Financial Do’s and Don’ts During the Crisis

    Focus on What You Can Control: Financial Do’s and Don’ts During the Crisis

    Our friends at Warren Averett Asset Management shared with us some Do’s and Don’ts for financially weathering the current situation we are all facing:

     

     

    Dear Clients and Friends,

    COVID-19 is not the first crisis we have endured, and it will likely not be the last. While we have not experienced the particular pain points of this virus all at one time before—like schools shutting down and grocery stores running low on items—we do have experience over the past several decades with some other pretty nasty events, including 1970’s energy crisis, 1980’s Black Monday, and 1990’s savings and loan crisis, along with the recession during the early part of that decade. Then we feared Y2K, the 2000-2002 Dot-com bubble, September 11,, 2001 and the Great Recession of 2008.

    We have been through scary times before and have come out stronger on the other side. While past results are not indicative of future performance, we believe this situation will be no different. Of course, we will likely come out on the other side with a new “normal” just as we came out of 9/11 with new airline security rules. We can’t predict what changes will be made as a result of COVID-19, but we can look back together at the financial wisdom we have gained that applied to all of the crises mentioned above and apply them today.

    You can see from the chart below that during previous crises, the market saw large drops in most decades. However, these drops typically lasted seven months, with an average drop of 36% off the S&P 500. Yes, stock prices are currently down, but history shows they should come back up again in time. We don’t pretend to know the future, but the chart below provides some historical wisdom for what returns have looked like after a bear market.

     

    S&P 500 Total Returns from January 1926 – December 2019

     

    We recommend spending time during this season focusing on what you can control. Below we have listed a few items to consider:

    Dos:

    • Do accumulate an emergency fund of cash that equals at least 3 months of living expenses if you do not have these funds set aside already. We recommend keeping these emergency funds in an easily accessible, liquid place. While protecting your emergency funds for as long as you can is ideal, keeping a small amount tucked away can help you sleep better at night. Times like these illustrate why cash is king during emotional uncertainty.
    • Do continue to save towards your financial goals, like making sure you are deferring into your 401k. Your dollars will go further in your retirement fund if you continue to contribute as you normally do.
    • Do evaluate your risk tolerance and decide whether you are taking the appropriate amount of risk (the percentage you invest in stocks vs. percentage you invest in bonds) in your investment accounts.
    • Do keep a long-term investment mindset. Leave your money invested, as this strategy will serve you better in the long-run than storing it under your mattress.
    • Do make sure you have the appropriate amounts and types of medical, life, disability, and long- term care insurance. These policies are a critical foundation of your financial plan.
    • Do have a will, power of attorney, and advance healthcare directive that reflects your current family and financial situation and that accomplish your goals and wishes.
    • Lastly, if you love someone, and I mean anyone (your family, your friends, or a partner of any kind) DO make sure you give intentional thought to the things listed above—and DO them!

    Don’ts:

    • Don’t invest money you will need in the next 1-3 years in the market. Set it aside in a more liquid account.
    • Don’t watch too much of the financial news. Bad news sells, so keep that in mind.
    • Don’t look at your account daily. We recommend monitoring periodically—either once a quarter or even once a year.
    • Don’t make emotional changes. Pick a strategy and stick to it.
    • Don’t stop saving for your goals. When the market goes down, you are buying more shares with your contributions as a result of the drop. This will help once the market recovers.

     

    All of us are spending more time in the house right now. However, consider stepping away from your newsfeed for a while (that means your phone and the television). It will reduce your stress to balance the negative input from social media with positive input like family time, time outside in nice weather, a good book, or a funny movie. Remember, we are here to talk with you if you have questions or concerns. Reach out to us anytime. We’ll all get through this situation together.

     

    Past performance may not be indicative of future results. To the extent that a reader has any questions regarding the applicability of any specific content to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. A copy of Warren Averett’s current written disclosure Brochure discussing our advisory services and fees is available upon request.

    Learn more at www.WAasset.com

  • Size Doesn’t Matter When It Comes to Competing With Your Big Business Competition

    Size Doesn’t Matter When It Comes to Competing With Your Big Business Competition

    Written by guest blogger: Marissa Perez, Business POP

    There are several misconceptions about running a small business; some think entrepreneurs have all the time in the world since they create their own schedule, while others think huge risks are a daily task needed to see success. As a small business owner, you know these aren’t true, but you still may have misconceptions of your own, one of them being that you can’t possibly compete with your larger competition. You won’t be taking down Amazon anytime soon, of course, but you can still compete with the best of them.

    Find Smart Ways to Cut Costs

    Cutting costs can be viewed negatively, but the key is to do it in a way that doesn’t decrease quality or jeopardize safety, such as cloud computing or dropshipping. By using cloud-based software, you no longer have to buy and install the software and updates or pay a team to run it, and you reduce the amount you spend on storage space and large servers. If you’re spending a lot on the supply end, consider dropshipping, in which a supplier handles the inventory and shipping. It’s a low-risk option with low or zero overhead for you and no need to pay for inventory until a transaction is made. Plenty of products make good dropshipping businesses, so do some research. You can reduce the costs of marketing campaigns as well by taking advantage of the budget-friendly (but effective) advertising campaigns on social media platforms like Facebook, Instagram, and Twitter, or create your own business filter on Snapchat.

    Keep Your Website Updated

    When people are searching for your business online or even just discovering you for the first time, the first place they go to is your website, so make sure it stands out. You can use some of the popular website builders like Wix or Squarespace to easily create a professional website with content, product pages, and a contact page, but you are often limited on the design and templates and may have trouble getting the graphics to sync up. This is where it makes sense to hire graphic designers who have experience with graphic design tools, as well as web and mobile design, to make your website stand out on a visual level. You’ll find various rates, some as low as $35 an hour and some on the pricier side at $100 an hour, so be sure to interview candidates. Pay attention to their portfolio, reviews, the scope of work, and the timeline for completion.

    Once they start designing, ask them to include a blog page and show you how to quickly update it to enhance your customer engagement, credibility, and SEO. Plus, you can kill two birds with one stone by posting the link on your social media profiles.

    Jump on the Technology Train

    It might sound cool to say you have an accountant, but there is accounting software that can do the same thing both instantly and for a better price, helping you keep track of invoicing, payments, expenses, bills, and payrolls, among other things. On the same note, it would be awesome to defer things to your HR team, but as a small business you probably don’t have this luxury, leaving you to do it yourself, but this can eat up as much as roughly 35 percent of your time, according to a study cited by FinancesOnline. With HR software, you can better oversee your talented employees, track goals, and comply with those confusing legal requirements including taxes, healthcare, and insurance. Automation increases efficiency too, making it simple to create your own custom reports and even enabling employees to log on themselves to request time off instead of giving you a sticky note that you are sure to lose.

    It doesn’t matter how small your business is, you still need to keep up with your competition. You can compete with some of the bigger competitors too. With hard work and a few changes along the way, you’re another step in the right direction.

  • The Essentials of Professional Development

    The Essentials of Professional Development

    Written by: Steve Graham

    As a coach, I often work with clients who are needy for knowledge.  They desire to grow professionally and often feel stuck in their current work environment.  It is no secret that when an organization values developing their people, the benefits for both the employee and organization are numerous.  The benefits often include: lower turnover, increased engagement, and a smarter workforce. Professional development goes beyond cookie-cutter training programs.  It involves a deeper commitment to learning.

    Learning can take various shapes within an organization. It can be organic, formalized, personalized, or on-demand.  Whatever the shape, the approach to learning is the first essential of professional development.  According to Dr. Brad Staats, Associate Professor of Operations at the University of North Carolina’s Kenan-Flagler School of Business: “Today’s fast-paced, ever-changing, global economy requires us to never stop learning or we risk becoming irrelevant.”  Dr. Staats’ recent publication, Never Stop Learning: Stay Relevant, Reinvent Yourself, and Thrive, illustrates the importance of making the lifelong investment of learning.

    The second essential of professional growth is to take the lead in your development.  Do not wait on your organization to offer growth opportunities. There are various resources available, and some are even free.  Resources include:

    1. Continuing education/certification programs from professional associations.

    2. Higher education-based professional and graduate certificate programs.

    3.  LinkedIn’s Lynda.com

    4. Free online courses, like Massive Open Online Courses (MOOCs).

    5. Webinars, TED Talks, seminars, and conferences.

    The third essential of professional development is finding a style of learning that works for you.  Do you prefer a structured learning program and in-person environment? Or, do you want to work at your pace and complete learning via a virtual (online) program?  These are important questions to answer before you search for the right opportunity. Some virtual programs offer digital credentials, like a badge, that adds to your professional credibility.   

    Creating a professional development plan is the fourth essential of professional development.  The plan will serve as a guide in setting development goals, deadlines for completion, and illustrating how the professional development fits into your overall career or professional brand.  For example, if your work requires project management, or if you desire to become a Project Manager, then becoming a Certified Project Manager would be a goal.

    The professional development plan should identify the areas you desire or need to grow, and what methods will be used to attain these goals? How will you use the new knowledge?  Whatever your plan, make sure you have enough interest to pursue additional learning in that area. Growing as a professional also means growth as a person. There needs to be an alignment between “who we are” and “what we do”.  This is one path to finding satisfaction in our work. Professional development can offer more confidence and career opportunities.

    No matter your position within your organization, you need to focus on growth.  Learning also helps with brain health. A study by Harvard Medical School found that “Every brain changes with age and mental function changes along with it. Mental decline is common, and it is one of the most feared consequences of aging. But cognitive impairment is not inevitable.”  If you want to stay relevant and confident, then invest in professional development.  

    About the author: Steve Graham serves as Vice President for Marketing, HR Business Partner, and college instructor. He holds graduate degrees in management and higher education. As a life-long learner, he has additional graduate and professional education in executive & professional coaching, health care administration, and strategic human resource management.

    He is a certified HR professional with The Society for Human Resource Management, a certified coach with the International Coach Federation, and a Global Career Development Facilitator. His professional memberships include: The Society for Human Resource Management, the American Society for Healthcare Human Resources Administration, Association for Talent Development, and International Coach Federation. LinkedIn.com/in/hstevegraham


  • Enhancing Workplace Culture

    Enhancing Workplace Culture

    Written by guest blogger: Steve Graham

    A workplace culture is unique.  There are similar cultures, however, each one has individual attributes.  Great, good, bad, or downright horrible, each culture makes a statement about your organization.  In today’s highly connected society, word spreads fast about your values, mission, and the way you treat the people who work for you.  Culture will exist absent of a specific focus. Even the worst workplaces have a culture. These are often classified as, “toxic workplaces”.

    There is no shortage of literature about great workplaces, work culture, and even the toxic places.  In this article, I will explore those attributes common to the best work cultures. My goal is to offer ideas that will enhance the workplace environment.

    Culture is not a one-size-fits-all concept.  If you are trying to be Google, please stop!  Your industry sector, available talent, and even the geographic location are all influencers that help shape culture.  According to ERC, an HR consulting firm, allowing your culture to develop naturally, is one of the biggest mistakes organizations make.

    Leaders are the bedrock in shaping workplace cultures.  They set the tone for how culture is created.  People need to feel connected in their workplace. On average, most of us spend more time at work than at home.  Organizational Psychologist agrees, that workplace culture must provide the six universal human needs to thrive: respect, recognition, belonging, autonomy, personal growth, and meaning.  In his book, Connection Culture, Michael Lee Stallard comments, “An organization’s culture reflects the predominant ways of thinking, behaving, and working.”

    As you think about these six universal human needs, reflect on how each connects to workplace culture:

    1. Respect: An environment that encourages open communication.
    2. Recognition: An environment that values accomplishments.
    3. Belonging: An environment that cultivates engagement.
    4. Autonomy: An environment that is free of micro-management.
    5. Personal Growth: An environment that promotes career development.
    6. Meaning: An environment that allows the expression of purpose.

    When exploring the attributes of enhancing culture in the workplace, there are commonalities that are present in organizations known for being great places to work.  In a recent article from Huffington Post, Dr. Michelle Rozen identifies seven characteristics of successful company cultures.  Dr. Rozen starts the list of characteristics with purpose.  Having a sense of why you do what you do is essential in a successful culture.  She comments about the role of purpose, “Purpose is an inspirational driver for engaging employees and communities. When a leader establishes a clear purpose for the organization, it will become the inspirational driver for engaging employees and so provide them with a concrete source for motivation.”

    Her list of characteristics also includes: communications, diversity, engagement, teamwork, and growth/development.  If the workplace has a focus on these characteristics, it is a foundation for a successful culture.  Take each of the characteristics and compare it against the six universal human needs. Are you balanced in your approach to each?  If not, this is a great place to start working on enhancement.

    The organization, Great Place To Work, recently published a book titled: A Great Place to Work For All.  Their publication illustrates the connection between great cultures and the impact on their bottom line. The importance of leadership in shaping culture was also discussed: “In the emerging economy, leaders have to create an outstanding culture for everyone, no matter who they are or what they do for the organization. They have to build Great Places to Work For All.”  Creating a culture that maximizes the human potential accelerates performance.   The research compiled by Great Place To Work is a powerful resource for creating an exceptional work culture and demonstrating how it is worth the investment.

    Enhancing workplace culture takes time.  It also takes a commitment to prioritizing resources to achieve the desired outcomes.  If you keep your people central to the mission, you will design a culture that works best for your organization.  There is nothing wrong with borrowing ideas from other organizations that have an exceptional culture.  Borrow it, but customize to fit your environment.   A workplace culture is like a personality, where authenticity is essential.  A “one-size-fits-all” or “cut and paste” approach will not work in the long run.

    The first step in enhancement is an evaluation of what you are doing and not doing.  Also, observe your competitors. What can you learn from them? Do they seem to have better talent? Do they experience lower turnover? Do they have a better public perception?   Resist the temptation to be something your organization is not.  A great culture is not about the perks.  This quote from IDEO, an international design and consulting firm founded in Palo Alto, California, in the heart of Silicon Valley, sums it up: “Often, people want to write culture off as a slew of perks you might find at tech companies. But really, culture is about creating an environment that makes it possible for people to work together to come up with innovative products and ideas—the same products and ideas that drive revenue.”  Here is a suggested path to follow if you want a better workplace culture:

    1. Define who your organization is and live it every day!
    2. Establish an environment built on trust. If trust is not a core ingredient nothing else matters.  A Forbes article from Glenn Llopis, Design Your Workplace Culture To Go Beyond Engagement And Fuel Trust says, “Leaders who develop intimacy build trust by developing relationships with their people and placing employees at the center of an organization’s growth strategy.”
    3. Encourage open communications—break down barriers that impede progress.
    4. Develop people. Have a strategic focus on talent development.
    5. Offer flexibility. Offer an environment that meets the needs of your people.
    6. Recognize people the way they want to be recognized. Be consistent.
    7. Celebrate successes and support your people in failures.

    Workplace culture is important and takes time to develop.  Approach the process of enhancing workplace culture as ongoing.  It is never a completed task. Cultures must also evolve.  Keep the six universal human needs at the heart of your design.  Leaders are curators of culture. Be authentic. What works in Silicon Valley does not translate everywhere.  Workplace culture has a real connection to the bottom line, so treat it with the importance it deserves.  Observe your direct competitors. Often, they are most like you. There is value in understanding what works and does not within your competitive set.  Define your authentic self as an organization. Keep trust as a key element in designing the right culture. This will lead to innovation and a holistic relationship between your people and revenue.

     

    About the author: Steve Graham serves as Vice President for Marketing, HR Business Partner, and college instructor. He holds graduate degrees in management and higher education. As a life-long learner, he has additional graduate and professional education in executive & professional coaching, health care administration, and strategic human resource management.

    He is a certified HR professional with The Society for Human Resource Management, a certified coach with the International Coach Federation, and a Global Career Development Facilitator. His professional memberships include: The Society for Human Resource Management, the American Society for Healthcare Human Resources Administration, Association for Talent Development, and International Coach Federation. LinkedIn.com/in/hstevegraham

  • Can You Really Reduce Turnover?

    Can You Really Reduce Turnover?

    Guest blog written by: Steve Graham

    Conversations around reducing employee turnover, also known as talent retention, have been around since work began.  Even though the topic is not new, the challenges facing employers and their approaches to reducing turnover is.   Generational attitudes about how long a person remains at one job has dramatically shifted. For decades, people identified a career or found a job and they stayed with one employer until retirement.

    One reason for this shift in tenure, is how the modern career path is navigated.  Many of the foundational thoughts on “career” do not apply in today’s workplace.  According to a recent article in the Harvard Business Review , by psychology researcher Tania Luna and international executive Jordan Cohen, said “ Modern employees are suffering from their belief in the “career myth,” what they describe as “a delusional belief in the outdated idea of linear career progression.” Luna and Cohen explained, “People today can no longer rely on an outdated system of career advancement — one that presumes employees will be given incremental chances for career advancement along with raises and title changes.”

    These shifts in career management and view of careers have created new challenges for the modern workplace in reducing turnover.  Some may argue about the importance of emphasis on talent retention, as a result of these changing attitudes about work and career.  Having a talent retention plan as part of an HR strategy is well advised. What is most important is ensuring your strategy and the approach addresses the new thinking about careers and the modern workplace.

    Understand that people will leave no matter how well developed your talent retention strategy, your benefits, perks, work-life-balance, etc.  People move on and understanding this reality will enable a better-prepared workplace for reducing turnover.   Experts argue over the key driving factors that cause turnover, and likewise, there are a lot of opinions on what helps reduce turnover.

    Turnover factors can be unique to an organization and industry sector. There are common methods in reducing it that can be applied to almost any work environment.  The goal of preventing turnover is not a reality. Reducing turnover should be the focus.  The Society for Human Resource Management (SHRM) provides benchmarking data on turnover.  They have found, regardless of industry type or bias, employee job satisfaction and engagement factors are key ingredients of successful employee retention programs. In a recent SHRM study, Employee Job Satisfaction and Engagement: The Doors of Opportunity are Open research report, employees identified these five factors as the leading contributors to job satisfaction:

    1. Respectful treatment of all employees at all levels of the organization.
    2. Compensation and benefits.
    3. Trust between employees and senior management.
    4. Job security.
    5. Opportunities to use their skills and abilities at work.

    *Source: SHRM, Employee Job Satisfaction and Engagement: The Doors of Opportunity are Open research report

    Related to factor five above, finding purpose is essential in creating an environment that promotes talent retention.  People who approach work with a purpose are more likely to be engaged and receive value in what they do, therefore, helping to reduce turnover.  Provide a work environment that allows people to find purpose and contribute at their highest levels.

    Having leaders with a servant approach can help cultivate purpose-friendly workplaces.  Zoe Mackey, of Berrett-Koehler Publishers, in her article titled: Why Servant Leadership Reduces Employee Turnover Rates said, “Adopting servant leadership can be an important part of the solution. After all, servant leadership is based on the foundational idea that learning to serve those around you helps them achieve their greatest potential. Who wouldn’t want to work for a boss like that?”  By creating a sense of community and strong foundation of trust, reducing turnover using a servant leadership approach works.

    People will not find purpose unless they are allowed to grow.  That is why a focus on career development helps reduce turnover.  The Association for Talent Development  (ATD) has extensive information on career development’s influence in reducing turnover.  A recent article from ATD stated, “Career development also can help with retention because employees can develop a sense of loyalty for employers who are willing to invest in them. Likewise, when it is time to hire new employees, career development programs can be attractive to job-seekers.” The sense of value to the employee is a driver in loyalty.  This is an important piece in talent retention.

    Turnover is never fun, but it is a reality.  Shifting your strategy to better align with the needs and attitudes of the modern career path is the first step.  Make it hard for people to leave your organization by offering them outstanding value and return on their investment in working for you.

     

    About the Author: 

    Steve Graham serves as vice president for marketing, HR business partner and college instructor. He holds graduate degrees in management and higher education. As a life-long learner, he has additional graduate and professional education in executive and professional coaching, health care administration and strategic human resource management. Steve is also the Founder and President of Valiant Coaching & Talent Development, LLC.

    He is a certified HR professional with The Society for Human Resource Management, certified coach with the International Coach Federation and a Global Career Development Facilitator. His professional memberships include: The Society for Human Resource Management, the American Society for Healthcare Human Resources Administration, Association for Talent Development and International Coach Federation.