Business Essentials Luxottica
A Monthly Update on Day-to-Day Management Issues for Optical ECPs and Retailers July 2007
Made possible by an unrestricted grant from Luxottica and Santinelli
It's Your Business

With a heavy travel schedule, I often find myself in airport book stores staring at countless books on effective management, executive leadership skills, business strategy and other related topics. Most of the time, however, I choose not to make a buying decision after thumbing through the book and quickly assessing the content. But why is that the case?

After scanning an entire book, I find that there are few pearls of wisdom that are new, innovative or simply practical. It is from these types of experiences that we have elected—and you have found with Business Essentials — that we publish articles that are geared to provide you with useful, practical and timely information. Put another way, we believe that the People Magazine approach, with articles of 250 words or less, can and often do provide the most helpful ideas and concepts than having to read an entire book on management. And given your busy schedules and patient appointments, we have learned from you that it is these types of articles that you find most useful and informative.

As you will glean from this edition of Business Essentials, we have again provided short but tightly packaged information that we believe you will find informative and helpful in your practice. And, as always, we hope that should you choose to reference current or past electronic versions of Business Essentials or prefer to retain a printed copy of each edition, that you will share each issue with your practice and management staff and other professional colleagues.

As always, we appreciate your thoughts on future topics as well as feedback on subjects covered in this and previous editions. Your feedback is important, so do take a moment and let us know your ideas on articles and subjects of interest to you and your colleagues.

Hedley Lawson
Hedley Lawson, Jr. is the managing partner of Aligned Growth Partners, LLC, a strategic, operational and organizational consulting and executive search firm. Lawson also serves as consulting editor for Jobson's Business Essentials monthly e-newsletter.

 
Ask the Experts

Office Gossip: Mum’s The Word?

Q: I would like to add a “gossip clause” to our employee handbook. Do you have any suggestions?


A: Employees retain their right to freedom of speech even when they are at work. If you want to restrict an employee’s speech entirely, a “gossip clause” could be construed as a violation of that right.

On the other hand, employers do have the right to require professionalism in the workplace and insist that employees treat their co-workers with respect. If an employee is constantly gossiping and causing strife in an office so as to upset the flow of work, the employee can be disciplined for such conduct, up to and including termination.
While an employer cannot mandate that people like each other, you can require that they get along in the workplace and maintain professionalism.

In addition, employees cannot engage in verbiage that is discriminatory or harassing to a protected class.

If employees are “gossiping” and discussing their co-workers’ age, race, sex, national origin, religion or sexual orientation in a derogatory manner, such conversations might be construed as discriminatory, and could be subject to disciplinary action.

Employers must be cautious when monitoring employees’ conversations. Employers cannot prohibit certain discussion, even though the employer may not prefer it to be a topic among workers.

For example, employees are statutorily protected to discuss and disclose the amount of their wages. They also are protected in discussing their working conditions.

Considering the addition of a “gossip clause” can be a double-edged sword, and it would be advisable to seek counsel in drafting any such addition to an employee handbook.

Submit your questions to one of our experts.

—Hedley Lawson, Jr.

 
Resource Corner
Easy-reference to web resources about human resource policies and rules
 

Inside Office

Small Business Trends

MyHealthCoach.com

Bills in Congress

 

From the Top

Alternatives to Selling Your Practice

Money CompassThe choice to sell an eyecare practice often arises from pressures beyond the owner's or partners’ control. Family responsibilities, partner disputes, lagging prices and product or market shifts can all take a toll on a business and ultimately, the owner. Selling a practice outright, however, is not your only way out. Today, more than ever, there are different options available to practice owners who want to reduce their role but do not necessarily want to give up their business entirely. Here are a few to consider:

Selling Assets. Some practices get into trouble when they bite off more than they can chew. Expanding or diversifying too quickly, buying unnecessary property, or absorbing smaller practices that turn out to be mismatches can all push once-successful practices toward the brink of failure. Though it is difficult to cut back or restructure into a smaller business, sometimes it is the best alternative to selling the business outright.

Before you decide to sell off part of your business, solicit an outside financial advisor to appraise your assets and determine a fair market price for each of the divisions you're considering selling. When choosing what assets to sell, it is a good idea to look first at assets that are not directly tied to your core business. Also, remember to look at assets for which there is a strong market. This will ensure that you get the best possible price for those assets. There may be sticky issues involved in transferring the assets from a trust or company entity to an acquiring company, so be sure to obtain input from both legal and accounting experts.

Senior Advising. The position of senior advisor or CEO emeritus may offer both a practice and its founder a way to move smoothly through a difficult yet necessary transition. Perhaps a founding owner needs a rest but hesitates to relinquish full control. Perhaps a sudden merger/acquisition or planned sale triggers a turnover in command, but the new owners value the benefit of retaining a veteran advisor. Advisory roles also offer a reluctant owner of a company a way to exit gracefully when outside forces come into play, such as retirement considerations, or the onset of a sudden illness or disability.

Succession Strategies. Some eyecare practice owners often make the mistake of neglecting to make succession-management plans. Failing to prepare the firm's next generation of leadership may stem from a lack of capable managers or a lack of interested family members. Outsiders generally view the absence of a succession strategy as a planning weakness.

Failure to implement succession plans can discourage a management buyout, and repel potential acquirers. In order to ensure a smooth transition, it is crucial for owners to establish succession strategies several years in advance. Family members and key employees are two good starting points when looking for potential successors to run a practice.

—Hedley Lawson, Jr.

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People Management

9 Effective Management Techniques

ManagementAlmost everybody thinks they are a good manager, and owners or partners of an eyecare practice are no exception to the rule. If you are curious about how you stack up, determine which of the following characteristics listed below describe your management style. You might be surprised to learn how many of these techniques you should be using in order to run a smooth practice.

  • Communicate the big picture. If you want your employees to work hard and be committed to your business, you must keep them in the loop. Open communication helps foster loyalty and gives employees a sense of pride. It helps them understand how their work contributes to the company's success. Set up a regularly scheduled meeting to inform your employees about new business developments, new product offerings and answer any questions.
  • Delegate work and responsibilities. Share your workload and delegate projects according to people's strengths, and let employees develop their own good work habits and leadership skills. Before you take on a project, try to get into the habit of asking yourself if one of your employees can handle it instead.
  • Help employees set goals. Setting deadlines and goals helps People Managementkeep employees focused, busy and motivates them to do their work. Talk to each of your employees about your practice’s goals, and work with them to set individual goals directly linked to your mission. Make sure each employee understands their professional growth path in the company.
  • Recognize problems. It is impossible to know about every single personality conflict or other problems in the office. Stay tuned in to your employees so you can be proactive and resolve situations before they escalate. If you notice a change in an employee's work habits or attitude, try to get to the root of the problem before it starts affecting the rest of your staff.
  • Reward employees. Everybody appreciates raises and bonuses, but monetary rewards aren't the only way to thank employees for a job well done. In fact the easiest way to recognize an employee’s contribution—by simply saying "thank you"—is often the most overlooked. Whether you do it with words, money, an employee recognition program or other incentives, make sure your employees know you value their efforts and contributions.
  • Be a mentor. As a business owner or manager, one of the greatest gifts you can give your employees is sharing your knowledge and experience. Showing your employees firsthand how you work with patients or forecast sales is far more effective than just talking them through it.
  • Give reviews. Employees need feedback about their performance to improve their skills and grow professionally. Set up a formal review program and give performance appraisals at least twice a year. If you set goals and give performance reviews in the same meeting, make sure you spend equal time addressing past performance and future goals.
  • Have a heart. Family emergencies, illnesses and other unplanned events always arise. Show employees some compassion by being flexible with work hours and time off so they can tend to important matters. Employees always appreciate a sympathetic ear, and as long as your business will not suffer, make every effort to accommodate employee needs.
  • Take the time to be a manager. During times when your practice is busy, do not forget to be a manager. Employees depend on your strength and guidance—especially when they are faced with new projects that require your time and input. Remember to give employees your undivided attention when they want to talk.

—Hedley Lawson, Jr.

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Santinelli
 

Rules and Regulations
Federal Bill Would Ban Sexual Orientation Bias

New legislation has been introduced at the federal level to prohibit employers from discriminating against individuals because of their sexual orientation or gender identity.

CongressThe Employment Non-Discrimination Act of 2007 (H.R. 2015), authored by Rep. Barney Frank (D-Mass.), would amend federal anti-bias law to bar employers from making employment decisions based on an individual's actual or perceived sexual orientation or gender identity. The measure would also forbid retaliation against an individual who complained about employment practices prohibited under the bill. The bill includes an exemption for religious organizations.

California, in addition to 16 other states, and the District of Columbia already have their own laws on the books prohibiting employment discrimination on the basis of sexual orientation. Plus, a handful of states—including California—have laws against gender-identity discrimination in the workplace.


President Signs Federal Minimum Wage Increase Legislation
Just before the Memorial Day weekend, President Bush signed the Fair Minimum Wage Act of 2007 (H.R. 2206) to boost the federal minimum wage to $7.25 per hour in three steps spanning over 26 months. The first increase to $5.85/hour will take effect on July 24, 2007. On July 24, 2008, the rate will increase to $6.55, and then up to $7.25 on July 24, 2009. The rate hike is the first since 1997.

For employers in states that already have a higher minimum wage, such as in California, where the minimum wage is currently $7.50/hour and set to rise to $8.00 on Jan. 1, 2008, the new federal rate will not have an impact.

 
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In This Edition...

Article It's Your Business

Article From the Top Alternatives to Selling Your Practice

Article Ask the Experts
Office Gossip: Mum's the Word?

Article People Management
9 Effective Management Techniques

Article Health Matters
Wellness Programs and Your Return on Investment

ArticleRules and Regulations
Federal Bill on Sexual Orientation Bias

Minimum
Wage Bill

Article Resources Corner
Links to Important Resources

 

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Health Matters

Wellness Programs and Your Return on Investment

Do corporate wellness programs really pay their way in terms of profit and loss? And, if so, how can we convince corporate management that they do?

This was the question addressed by speakers at the 16th Annual Art and Science of Health Promotion Conference in Las Vegas.

As the good news goes, it does not take much improvement to make wellness initiatives pay off (less than a 1 percent reduction in risk factors). On the down side, people with the most severe problems typically have less interest in lifestyle changes, and even those that do find making those changes very difficult.

wellness

In general, employers can earn back the cost of programs over the course of 5 years if they can reduce risk factors by less than 0.2 percent, a conclusion of research delivered by Dr. Ron Goetzel of Cornell University in a study funded by the Centers for Disease Control (CDC). Dr. Goetzel looked at a wide range of factors, including healthcare costs, age of workforce, and smoking and other lifestyle factors. He then created a Return On Investment (ROI) calculator that allowed him to figure out the minimum improvement required to break even on an investment, as well as the projected ROI that a specific set of improvement assumptions would yield.

Looking at specific companies, Dr. Goetzel found that Dow Chemical would have to achieve a 0.17percent improvement to break even. A 1 percent improvement would yield a return of $3 for every $1 spent, or a 300 percent ROI. The company has 26,000 employees, so a 1 percent improvement translates into a savings of $50 million over 5 years.