Showing posts with label Business Valuation. Show all posts
Showing posts with label Business Valuation. Show all posts

Sunday, 18 November 2012

We Are Failing to Improve Workplace Safety

We Are Failing to Improve Workplace Safety

We have to take a different approach to health and safety in the workplace because what we've been doing is not working. In spite of our best efforts, we have driven health and safety underground by the use of blame and an over-dependence on unreliable statistics.
Fragile Link Between Statistics and Safe Behavior "Safety statistics" are unreliable for a number of reasons. It is possible to work unsafely and not contribute to the statistics, which means that injury numbers and "near hit" figures are not the best indicator of workplace safety. Insurance claims may drop because the pressure is increased not to accept them but safety will not necessarily improve. Where there is reward or punishment for reporting, statistics will fall. For example, if a senior manager has an "at risk portion of salary," based on safety statistics, human nature takes over. A principle of human behavior states that, "Things which get rewarded or recognized--get done." This will lead to a reduction in statistics but safety will not improve.
On the other hand, if the culture of the organization is one where blame is common, then not only is the manager blamed but also the victim. This will also put a downward pressure on statistics.
Our concept of workplace safety Our whole concept of safety in the workplace is totally misguided. The results speak for themselves. We are using slogans like "zero harm," "zero accidents" and "zero injuries" with the pious hope that they will come true. These slogans are promoted by people who have no credibility in the workplace because they are so far removed from the reality of the life of a worker.
Look at it from a logical point of view. If you want to deliver a safety message then you have to identify the people who have the credibility to do so. The only arbiters of credibility are the people who are to receive the message. If they don't trust or believe the messenger, they will ignore the message. Unfortunately, the health and safety industry is full of non-practical people who lack credibility and can only try to achieve results by using accountability. This has created an environment of fear in the workplace because of a not very subtle culture of blame.
Regulatory bodies have determined that if you have risks in the workplace you will have harm. This means that the legislation is designed to remove risk. The problem is that totally removing risk is an impossible task. If it were possible, we would not have the alarming number of fatalities and injuries every week.
We have people writing rules, procedures and regulations who have never operated in the real world. When the experienced operators encounter these new rules, they understand clearly that they have been written by somebody who has no practical knowledge or experience. This immediately erodes any trust that may have existed.
The solution is frighteningly simple. Let the people at risk, design their own safe working practices. Harnessing this knowledge and experience will require a higher standard of leadership but the outcome will be much improved.
Thank you for reading this article. Peter L Mitchell invites you to visit his web site where you will discover a wealth of resources such as free downloads, ideas, articles, information and books. This site is updated nearly every day. Click here http://plmitchell.com/
Article Source: http://EzineArticles.com/?expert=Peter_L_Mitchell

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The One Simple Rule of Business Success

The One Simple Rule of Business Success

Many of the solutions to the problems that you're facing in your business are probably right under your nose. If your business is not performing and your cash flow is tight, it is time to look at your priorities. Do you have them in the right order? Are you facing the truth about your financial situation?
There are plenty of simple steps that you can take to improve the financial health of your business. Small and medium-sized businesses always have way too many customers who have not paid their bills.
It's the most obvious way to get the cash flowing in to ease the pressure on your cash flow. But it is amazing how many business owners are reluctant to ask their customers to pay up. It seems that they appreciate how much it has cost to acquire that customer and don't want to do anything that may jeopardize the relationship.
The rule is simple, you provide products and services and they pay you for them. You cannot be in business and be successful if you don't collect the money owing to you. The money is the reason why you started your business, so when you go to collect an unpaid bill remember that. From a business point of view, you are failing if your customers are not paying you according to your terms of trade.
You don't measure success by how many staff members you have, you don't measure success by the dollars that your business turns over, you don't measure success by the size of your mortgage. There is only one measure of success in business and that is PROFIT.
No matter what your priority is, ignore it if it is not profit. Your number one priority in business is profit. In a small business, especially, cash flow is king. Every week you should carry out an estimated cash base profit and loss statement. This will tell you where you are financially so that you can adjust quickly and aggressively. If money is drying up or you foresee some future problems, be absolutely ruthless about cutting expenses as soon as possible.
If you have non-performing employees, get rid of them, if your expenses are too high, cut them. This area requires your scrutiny on a regular basis. If you take your eye off it, it will ruin your business. No matter what the economy is doing, the owner of a small or medium-sized business has to be aware of the financial position at all times.
You need to run the financial side of your business with an uncompromising level of fiscal discipline. Just remember this absolute truth. The dollar you didn't spend is the best dollar you ever earned.
Thank you for reading this article. Peter L Mitchell invites you to visit his web site where you will discover a wealth of resources such as free downloads, ideas, articles, information and books, This site is updated nearly every day. Click here http://plmitchell.com/
Article Source: http://EzineArticles.com/?expert=Peter_L_Mitchell

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