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Modern Production Summmit (13 września 2022 / Warszawa)
Modern Production Summmit

Będę miał przyjemność zaprezentować aktualne trendy w branży produkcyjnej w okresie kryzysu podczas konferencji organizowanej przez Puls Biznesu: Modern Production Summmit. Druga edycja tego wydarzenia odbędzie się w dniu 13.09.2022 r. w Warszawie. Lista prelegentów decyduje o praktycznym wymiarze tego spotkania.

Zapraszam do zapoznania się z programem wydarzenia i rejestracji tutaj!

Konferencja Pulsu Biznesu – Grupy Kapitałowe 2022

Kolejny raz będę miał przyjemność być prelegentem podczas konferencji organizowanej przez Puls Biznesu. Konferencja odbędzie się 24.03.2022 r.

Tematem łączącym wszystkie wystąpienia będzie efektywne funkcjonowanie grup kapitałowych w zmieniających się ramach prawnych i dynamicznym otoczeniu biznesowym.

Temat mojego wystąpienia to Zarządzanie ryzykiem w grupie kapitałowej.

Zapraszam do zapoznania się z programem konferencji i do uczestnictwa w tym wydarzeniu.

Szczegóły na stronach Pulsu Biznesu.

Communication as a factor conditioning effectiveness of change implementation on the example of sales department of a distribution company

Soon publication of a new article, which I am co-author. This time, we will present a case study in the field of implementation of changes and team management during changes. The results of the research cover the organization in the process of transformation and major changes. For details, please click the link below:

Zaproszenie dla średnich firm wytwórczych do udziału w procesie badawczym

Zapraszam średnie przedsiębiorstwa wytwórcze do udziału w procesie badawczym w ramach przygotowania pracy doktorskiej. Projekt nie ma charakteru komercyjnego.

Czym jest kontrola zarządcza?

W praktyce zarządzania z kontrolą utożsamiane są takie pojęcia jak kontrola wewnętrzna, kontrola zarządcza, audyt, kontroling a także nadzór korporacyjny. W literaturze międzynarodowej kontrola zarządcza (ang. management control) stanowi element systemu zarządzania ryzykiem w całym przedsiębiorstwie. Nie ogranicza się jedynie do funkcji kontroli – a więc sprawdzania, czy stan bieżący odpowiada planowanemu. Mój projekt naukowy ma na celu opracowanie modelu kontroli zarządczej wraz z procedurami wdrożenia dla średnich firm wytwórczych. Takie modele są dostępne od kilkudziesięciu lat dla dużych firmy, szczególnie korporacji. Efektywny system kontroli zarządczej powinien zapewniać zgodność działalności przedsiębiorstwa z celami strategicznymi i powiązanymi z nimi celami operacyjnymi, z prawem, oraz zasadami sprawozdawczości finansowej.

Co jest celem projektu i jak przebiega?

Projekt realizuję w ramach pracy naukowej przy założeniu jego praktycznego charakteru. Zapraszam średnie przedsiębiorstwa wytwórcze (produkcyjne/przemysłowe) do udziału w projekcie. Nie wiąże się to z żadnymi kosztami, ani ukrytymi intencjami.

Jakie są korzyści z udziału w badaniu?

Wszyscy uczestnicy badania otrzymają wersję elektroniczną pracy doktorskiej stanowiącej praktyczne kompendium wiedzy na temat planowania systemów kontroli zarządczej. Dane zawarte w referacie będą anonimowe.

Zapraszam do wsparcia działalności naukowej Wydziału Zarządzania Akademii Górniczo-Hutniczej w Krakowie.

Zapraszam do szybkiego i bezpośredniego kontaktu za pomocą czatu dostępnego z prawej strony ekranu albo formularza kontaktu dostępnego na tej stronie.

Implementing changes in the sales department. Part 12/12. Stage X – Implementation of the financial incentive system.

The last stage of changes should be the implementation of the employee motivation system in connection with the assumed sales goals. Sales goals should be set based on budget assumptions resulting from the extensive analysis contained in the sales strategy. In this context, a motivation system should be created in the sense of financial motivation.

The strategy defines the main goal which is the sale of a specific volume of goods. An additional task is to achieve a certain level of turnover with new customers within the main goal. Completing this second task should be linked to the expansion strategy of expanding the market and diversifying the customer portfolio. The diversification of the group of recipients is to allow for an increase in the level of margins achieved by making the negotiation process more flexible. It is primarily about moving away from the model of result conditioning by cooperating only with two or three large (turnover) clients who in this case use their hegemonic advantage when negotiating long-term contracts.

Considering the above, the following assumptions of the bonus system for sales department employees may be adopted (decision of the Management Board) as regards the implementation of the main strategic goal:

  1. The bonus system will be consistent for the entire organization, i.e. all employees will receive a bonus on the same terms if the goal is met.
  2. The settlement period for the payment of the bonus will be a calendar month – the implementation of the monthly goal means the payment of the bonus.
  3. The basis for calculating the bonus amount is the appropriate percentage of the basic salary.
  4. If the annual target is met, each employee will be paid an additional bonus in the amount of eg 100% of remuneration.

Commenting on the above assumptions, it should be emphasized that the main goal of the implemented bonus system is to develop team responsibility for the result, which is to improve cooperation between all departments in the company. The coherence of the bonus system for all employees means that the entire organization has focused on good-quality customer service, which should be understood in a generalized sales process, production process, quality control, accounting – that is, in fact, all manifestations of the company’s activity addressed to customers. The monthly settlement of bonuses gives the opportunity to implement tasks on the basis of “quick win” – the employee immediately received a reward for completed tasks. Rapid progress is immediately rewarded. On the other hand, an additional annual bonus, paid out if the budgetary target is met, gives the opportunity to “catch up” the unpaid premium for the month in which the target was not met.

Regardless of the financial incentive system, you can introduce additional incentives for sales employees to achieve an additional goal, i.e. expanding sales to a larger group of customers and diversifying the portfolio. The implementation of this system should be preceded by an analysis that should define the concept of “new customer” and determine the expected portfolio development in terms of “new busisness”. After presenting the status quo to employees and precisely defining the definition of a “new customer”, an annual target should be set for sales to this group of recipients. It can be established that all sales employees, regardless of their position and level of remuneration, as well as other bonuses, will receive an equal net amount as an additional annual remuneration for achieving the assumed goal. This amount should be set at an attractive level (decision of the Management Board). It is also worth determining the increase in this bonus when crossing the next higher result thresholds, and indicate its upper limit. To monitor your progress, it’s a good idea to enter a simple daily report showing the level of task completion and missing value to your annual goal. This report should be supplemented by employees so that any significant change in ratios bringing the bonus closer to you would be an additional motivation.

Implementing changes in the sales department. Part 11/12. Stage IX – Implementation of internal procedures.

Changing internal procedures for sales and customer service is a task that requires consideration, because new organizational solutions can affect customer relationships. When introducing procedural improvements, every manager should be careful not to achieve the opposite effect, i.e. disorganize work. Due to such risk, it is necessary to perform a number of preparatory actions that will reduce the risk of implementing a non-functional and thus demotivating work system. What’s worse, mistakes made can have a negative impact on sales results and the quality of customer service. It should also be remembered that the word “procedure” in most organizations is pejorative. Employees often assess internal rules as inconsistent with reality or limiting their field of activity or paralyzing work.

Another common mistake is the lack of internal training refreshing employees’ knowledge of procedures. As a result, a common condition in the organization is that commercial activities are implemented based on one criterion – sales result, and according to the principle: the end justifies the means. Commercial procedures should be understood as the overall regulation of the sales department’s scope of work. Depending on the type of business or market segment, this type of procedure may contain different regulations. They should also protect the company against broadly understood poor quality sales. The scope of risk incurred by sales activities is significant and includes many factors that go far beyond standard thinking about the task of offering and providing products to customers. In this context, it should be noted how the correct programming of the work system by creating functional procedures has a positive effect on employee motivation. To illustrate the scale of possible regulations, and as an overview, the following is a list of areas that can be considered in commercial procedures:

  1. Principles to verify the credibility of contractors (verification of the solvency of contractors and the legality of their business scope).
  2. Principles of preventing fraud attempts and fraud to the detriment of the enterprise.
  3. Rules for organizing transport to customers and selecting transport companies (eliminating the risk of losses during transport and phishing).
  4. Sales rules within the insurance limit and sales monitoring within the limit (control of the turnover balance with individual clients under external or internal transaction limits).
  5. Principles for hedging financial risk (cooperation with the risk department in securing transactions on the stock exchange and eliminating currency risk).
  6. Principles of cooperation with production departments in the scope of ordering production.

Therefore, the implementation of the sales procedure has the following objectives:

  • Maximum reduction of transaction risk with clients.
  • Meeting the formal and legal requirements necessary from a tax point of view.
  • Reduction of the risk of goods being lost due to phishing scams.
  • Providing employees with comfort of work by providing precise instructions in specific cases and documenting work.

It should be emphasized that the last point of the above list is of particular importance from the point of view of the employer / supervisor – employee relationship. A clearly defined sales procedure, approved by superiors, clearly delimits the scope of responsibility between these parties. The employee may be assessed for compliance with the procedure, while the supervisor’s responsibility is to correctly construct this regulation.

To prepare a reliable commercial procedure, you can take the following actions:

  1. Review of existing procedures in the area of sales and customer service.
  2. Mapping of all main and secondary processes in sales and customer service.
  3. Transaction risk analysis (from the financial security side) at individual stages of the sales process.
  4. Interview with sales department employees about knowledge of procedures and their actual application.

After the analysis, which can be described as an internal audit, proceed to the development of individual elements of the sales procedure. Considering the long process of its preparation and implementation, resulting from the need for internal consultations and the approval of managers, its individual components can be implemented based on a business order with validity until a comprehensive regulation is announced. The caveat to any official order should be the rule that if the order does not provide for any situation or raises any doubts, the employee should refrain from action until the supervisor decides. The consequence of this solution will be the rapid implementation of the necessary regulations and ensuring the safety and quality of commercial operations.

On the other hand, it will be possible to verify specific procedural regulations in practice. Therefore, in this case one can speak of pilot implementation of the procedure.

Depending on the level of complication, the final implementation of the procedure may take place over several weeks or months. It is recommended to test individual solutions and collect comments from all persons acting on its basis. This approach provides the following benefits:

  • All interested parties, and later persons using the procedure, are involved in its development and thus become familiar with the purposefulness of the regulation and the genesis of its creation.
  • Employees naturally already know procedural regulations at the pilot stage.
  • The implementation of the final document is quick and does not require significant commentary or, for example, long training and explanations.
  • Employees gain comfort by clearly indicating the paths of action in specific situations.

From the supervisor’s point of view, the main benefit is, of course, the fulfillment of their duties in this area, but also the regulation of a significant area of work, which eliminates making ad hoc decisions and introduces uniform and transparent action towards contractors.

Speaking of sales procedures, you cannot ask questions about regulations directly related to the standards of working with the client – speaking the so-called commercial language service. The literature on the subject extensively describes this aspect of working with clients.