Management Methods - All Posts - Ze'ev Ronen - Business Excellence

A company gave its employees a quarterly bonus. The bonuses were granted to employees who met their personal targets, which were determined according to an agreed scale. The employees were used to receiving the quarterly bonus and eagerly anticipated it at the end of each quarter.

Do you remember the days when we worked six days a week? Has moving to five days had a bad effect on employers or employees? Has efficiency decreased? Have we been achieving less?

Assuming the company sells 20 products, the items are listed from the products generating the highest profit at the top of the list to the products generating the lowest profit at the bottom of the list. According to the Pareto principle, there is a good chance that the first four products on the list produce around 80% of the company’s revenues. If we focus on improving the profitability of these four products, we will achieve substantial improvement of the company’s profitability in an effective way.

A CEO I once met, who well understood the importance of measuring but could not maintain systematic, continuous measuring performance, excused himself by saying that he had strong intuition and knew his company well without measuring. Intuition and gut feelings are valuable and important when making decisions. However, they do not replace measuring.

Part VII is the last chapter in the series. It includes a short summary of the previous chapters.

The current series of articles focuses on the important KPIs every business must monitor. I have written articles regarding this very important issue over the past few years. However, the current series presents KPIs in a concise form, easily expanded, when required.

This article will present the KPIs under the responsibility of Quality and Marketing managers. Annual and special KPIs will follow at the end of the article.

This article presents the KPIs under the responsibility of Production managers, Quality managers, Sales managers, Marketing managers and Engineering & Research, development managers. The KPIs are shortly presented with links to learn more about them in greater detail.

The current series of articles focuses on the important KPIs every business must monitor. I have already written many articles regarding this very important issue. However, this article focuses on shortly presented Supply Chain KPIs.

It is widely accepted that without data and careful analysis, businesses cannot advance. Not assessing and not controlling processes is like driving a car without the ability to see the way or check how much petrol is left in the tank.

The CEO of Leumi Bank, Mr. Hanan Freidman, has recently made a public announcement which revolutionizes the service the bank provides to its customers. Hanan committed to personally make sure that all customers’ requests are resolved within 24 hours and if not, customers are encouraged to communicate with him on his private WhatsApp. This, among other actions the bank is implementing,  will overturn the way customer service has been practiced in Israel for decades.

This article focuses on the principles of managing employees during wartime.

Dan was rushing to a meeting. He could not find parking space in the car park of the tower building. Suddenly he spotted a free parking slot. He accelerated towards the slot only to realize that a female driver was maneuvering her car into that slot. She drove backwards and forwards trying to steer her way between the lines. That was all Dan needed. He quickly pushed in front and parked his car, leaving the lady driver bewildered.

A few days ago, at one of my late-night stops at a gas station, I felt like eating a popsicle. Unable to decide which brand to choose, I bought one of each. At that point I noticed that although wrapped in similar size wrappings, one popsicle weighed more than the other. MAGNUM weighed 85 grams while Milka weighed only 69 grams. The Milka popsicle is more expensive. Yes, it costs more though it is substantially smaller.

A management board of a retail chain outlets decided to set a prize-winning competition between the outlets. The competition aimed at providing an incentive to increase sales. The prize was a medal for the winning team and an invitation for two to a fancy dinner for the team members.

Does everyone know what other people earn in your company? If the answer is “yes”, is it official information or is it spread by word of mouth? What effect does knowing what other people earn have on gender pay? How does it affect employee’s motivation?

A few days ago, I went shopping at a D.I.Y store Upon entering, I was directed to the department I was looking for, but no staff member was present. It took me a few minutes to locate someone who was able to tell me the name of the employee responsible and a few more minutes to find the employee who answered my questions about the product I wanted to buy.

This article is about the challenges managers face when trying to implement decisions and assignments reached during these meetings.

Today I present five CEO’s excellent decisions that led them to great achievements. Some of those decisions were taken at a moment of crisis and turned things around. Others were taken by intuition and led the way to success. Making these decisions required courage and determination.

This article is not about momentary misjudgments or wrong decisions made on the spur of the moment. It is about mistakes which are made by CEOs who are driven by approaches that, in my opinion, are incorrect and can cause substantial negative impact on business results.

A separation won’t stop a couple from thinking about each other. In the same way, termination of employment doesn't stop employers and fired employees from talking about one another. Managers and employees continue to mention previous employees’ names, and dismissed individuals continue to talk about their former place of work.

I was on my way to a meeting with Ilan, Dovi and a few other people when I received a message from Yigal asking me to check something for him. Before joining the meeting, a few minutes too late, I opened my messages for a brief glance. I then entered the meeting noting to myself to get back to Yigal right after the meeting.

Let us assume that we wish to improve the company’s profitability. The company sells 20 products. We then insert those items into a table - the product generating the highest profit will appear at the top row of the list, and the product generating the lowest profit will be the last item on the list. According to the Pareto principle, there is a good chance that the first four products on the list produce around 80% of the company’s revenues.

Every year, CofaceBDI conducts a survey in collaboration with The Marker magazine, on the question "Who are the 100 companies that are most worth working for in Israel?" The survey was conducted among about 300,000 employees and is also based on internal surveys of the companies.

Someone once called me for advice. He told me he was self-employed and asked if I could help him collect money his customers owed him. The amount of the debt was about 1 million NIS. He worked for two years without receiving payment.

Rafi was a successful young CEO who wanted to achieve the ambitious goal of accelerated growth within five years. He built a strategy with the help of our team's "Plan for Tomorrow" and got stuck on a significant obstacle: he needed to recruit a sales associate, or even two.

At one of the NGOs I am a member of, there is a mentoring program. The graduates mentor younger peers. The mentoring last for six months, for a few dozen participants. The mentoring is voluntarily, and each year we have more mentors than we require. The organization has other social activities, involving young adults who live in Israel's periphery, and we don't lack volunteers.

While bike riding with a group of friends, A. and H. began a heated argument. As I got closer to them I heard it was about a bike riding event that took place many years ago, and they each had a different memory of. Each was convinced their memory was more accurate, and as often happens in such cases, they only listened to each other in order to quickly contradict each other. This wasn’t a dialogue, but two monologues.

Work meetings take up time, and it's often wasted time. But there are also efficient meetings, that give a sense of purpose and a drive for change. I assume many of you are among those whose experience with meetings is that they're a waste of time. You leave every meeting frustrated, and have learned to stay quiet to make the meeting go faster.

I once met with a CEO of a big organization we very much wanted to work with. From the beginning I looked at him with an encouraging smile. He answered in the same optimistic spirit. We grabbed a cup of coffee and settled in the meeting room, opening with some small talk. He mentioned he likes to listen to a certain radio program, of which I am also a frequent listener, and shared his opinions of it, with which I agreed.