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Short Term Profits, A Business Does Not Make. May 15, 2006

Posted by newyorkscot in Management.
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One of the things that I am looking for in my next company is a strong and well-founded philosophy in the treatment of clients and employees.

I have always said that you need to look after your current clients first (ahead of future clients). There is no point in burning any bridges with a client just to make a fast buck somewhere else. The long term profitability will suffer.

The way in which the company treats its employees is equally as important. In a professional services firm, your people is all you have. They are the assets of the firm. Therefore, there needs to be the appropriate level of care and investment in the people that includes personal and professional development activities (tech/business training, soft skills training, collaborative environment, etc.) It also must include a package that is fair in monetary terms and provides some sense of comfort and satisfaction. Additionally, you need to invest in the softer side (social and cultural) of the business.

At the end of the day, client and employees must come before short term profits. If you don't have the former you don't have a business. The approach should always be to look at the mid-long term and invest in your relationships with your clients and employees. You will make more money in the long term…..

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1. anonymous - May 15, 2006

What did you do in your previous position to foster all of the good points that you mentioned in today’s postings? And how do you think it affected both the Finetix employees at JP Morgan and the client itself?

Anything you would do differently if you were given free reign in your previous position?

2. Matt - May 16, 2006

Yep, agree on the short term viewpoint. I think we have both seen this before somewhere, and it just doesn’t work.

3. newyorkscot - May 16, 2006

Re: anonymous — A mixture of things: officially it was engagement mgt for client projects (including the relationship mgt piece), a touch of marketing and involvement in the mgt of the company. Unofficially, there were a lot of other things that you get involved in in a small company. Clearly, many of the points were derived from speaking to the employees directly as well as my own experiences with the mgt of the company.

Your 2nd question implies you know who I am (true?). Alienation would be one word I would use in response …

I would do a bunch of stuff differently (see the postings!!)…maybe I will get a chance whatever my new gig is ..

4. anonymous - May 16, 2006

I know that you will successful in your new venture.

Allow me to reiterate your points:

1) Constant involvement by the employees in the business. Make it financially and emotionally rewarding for your employees to seek new business.

2) Don’t constantly second-guess your employees. Make them feel like their contributions are worthwhile, instead of making them feel like it’s fate-complet that their ideas will be challenged.

3) Allow your employees to grow intellectually. Allow them to acquire domain and tecnhical expertise ON THE COMPANY’s DOLLAR.

4) Encourage employees to get together and share knowledge.

5) Put money back into the business. If employees see that no money is being redirected towards their continued growth, then the employees will start to feel detached from the company. A disinterested employee is one who is ripe for other companies to poach.

I raise one large Scottish Kilt to your good fortune, sir.

5. psychoterapia w bydgoszczy - August 27, 2015

psychoterapia w bydgoszczy

Short Term Profits, A Business Does Not Make. | newyorkscot


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