Archive for December, 2008

Stores opened even before the crack of dawn, but many Boxing Day shoppers were lining up as early as the night before, some admittedly even forsaking Christmas dinners to be first in line and take advantage of the savings. As the day wore on, the dangerously icy roads and miserable rain still didn’t stop shoppers from flocking in droves.

While many retailers were hopeful that this Boxing Day would provide a much needed boost to year-end sales, and for some it did, many have already been offering low post-Christmas prices since as early as late November in an effort to draw crowds.

The decline in our dollar was predicted to lessen the competition with American online competitors for our retailers this Christmas season. Nevertheless, in spite of the weakened loonie and overall economic recession, online shopping held strong. Amazon is reporting that the 2008 holiday season has been the online retailer’s best yet. On its peak day, December 15th, 2008, Amazon received over 6.3 million orders. E-commerce giant PayPal is also reporting better sales for 2008. An Ipsos-Reid survey to over 1,000 consumers commissioned by PayPal Canada concluded a 40% increase in online shoppers from two years ago.

However your shopping was done, whether you chose to stay inside and spend time with family or brave the crowds and shop til you drop, we at Northbridge hope your holiday season has been safe and happy. All the best in 2009.

Things may seem bleak at the present; however, the Canadian economy will eventually recover.  Dungan and Steve Murphy at the Policy and Economic Analysis Program expect that the Canadian governnment will run deficits for a few years and they urge Ottawa not to repeat the mistake of raising employment insurance premiums before a recovery.

Low prices for oil and other natural resources will slash corporate profits and government tax revenues, forcing Finance Minister Jim Flaherty to revise numbers in his recent economic update. But Dungan says a dollar near 80 cents (U.S.) next year and U.S. spending on infrastructure should give manufacturers breathing room before oil and other commodity prices rise again and lift the dollar back above 90 cents by late 2010.

Dungan’s forecasts assume Canada will still have an auto industry. But its export value has already fallen from about 10 per cent of Canada’s total economic output in 2000 to about 4 per cent, he says. Meanwhile, his economic model suggests the fall of the dollar to 80 cents would normally be enough to offset most of the effects of a U.S. economicslowdown.

For Canadian businesses, this means that good times will eventually return.  The challenge is to hang on until we can see the light at the end of the tunnel again.

To be an effective manager, certain “ingredients” must be present to enhance your Emotional Intelligence and to create key skills that will eventually lead to improvements in both employee and customer development.  This will ultimately lead to your organizational success.

First, you must know the difference between management and leadership.  Leadership involves setting the example, vision, mission, and goals for your organization, while management involves more of the administrative and technical skills to ensure your organizational goals are accomplished.

Second, you must understand your people very well.  Employees generally respond better when you have a professional interpersonal relationship with them.  As a leader, when you know your personnel, you can effectively manage their tasks and optimize their time in performing such activities.

Third, you must understand that all motivation stems from self-interest.  Therefore, give praise instead of criticism and understand the reward system.  When rewards are offered in the workplace, employees generally respond well, and this is key to their motivation.  This can be as simple as public recognition for doing a great job.

Fourth, as a leader and a coach, you must have strong organizational skills.  You should manage your time effectively in order to understand your daily, weekly, and monthly schedules.  Time management skills will create better role clarity and role responsibility for your employees.  Get to know certain software, such as Microsoft Office products in order to optimize your organizational skills.

Fifth, you must stay on schedule for completing tasks.  In this day and age, you may report to both clients and upper-level management.  Deadlines abound.  Make sure you stay focused on your goals and objectives and establish a structure for periodic meetings.  Establish role clarity, role responsibility, and time-lines for completion of tasks with employees to assist you in meeting your deadlines.

Sixth, in any business, there is no such thing as over-communication.  Develop strong interpersonal communication skills.  Communication is core to being an effective manager, especially when you need to interact with both external and internal stakeholders.  This is a cornerstone to making a business run and to leading and managing employees.  Listening is the most important here, so when you communicate with your clients and employees, make sure you listen more than talk. Make eye contact.  If you are unsure of what they are communicating, get them to clarify.  Make sure you are clear and concise with your communication to your employees and outside stakeholders.  Many issues and misunderstandings have occurred as a result of not providing the proper information or communicating ineffectively.

Finally, to be an efficient and valuable manager, you will need to provide leadership guidance.  Therefore, you need to manage your employees effectively.  It is not simply a matter of providing tasks with deadlines.  You must create the roadmap for completing the tasks and coaching your employees as required.  You will need to help your employees if you want them, you, and the business to be successful.

Ajay Sinha, VP Operations at Northbridge Consultant