Innovation

Doug Pace — Tue, 20 May 2008 08:10:28 -0400

I believe innovation is derived from collabration and that genius comes from a group - not an individual. As a firm becomes more mature it becomes very process oriented. This allows people to become complaicent and less innovative. In short innovation burns more calories then just following process. To be innovative you must talk to others, think outside the box, and go over and above. Managers must take steps to keep the blinders away from their staff and encourage collabration.

CSI

Doug Pace — Tue, 20 May 2008 08:09:27 -0400

It suprising to me that many firms dont measure or embrace Customer Service. If a firm really makes an effort to gather the data and reward high performing individuals customer service becomes part of the culture of the firm. The survey is the traditional measurment tool, but the process to gather the survey results is even more important. Here is the process that I ahve developed over the last few years.

Process

Marketing Budget

Doug Pace — Tue, 20 May 2008 08:07:20 -0400

An age old question for managers of a service firm is how much to spend on marketing. We all want great glossy brochures, but do they really drive the business. The suggested marketing budget is 1.75% of gross revenue. A marketing plan should be created at the beginning of the year to account for approximatly 75% of the budget. The otehr 25% of the allocated budget should be held in reserve for unknow items that always come up. Please note that this is just marketing budget and does not account for total cost of sale (i.e. sales people or business development time)

Salary Increases

Doug Pace — Tue, 20 May 2008 08:02:59 -0400

Compensation is one of the primary drivers for all employees. As you manage the firm it is important to have a detailed process on how you address salary adjustments. This goes beyond annual reviews and compensation committee, but explores what expectations staff and management should have on an ongoing basis. It is important to standardize positions, titles, and salary ranges for each position within the firm. This process provides individuals with general guidelines, but also allows one to eliminate the difference between a salary adjustment and a promotion.