For all Company Directors, Senior Managers and HR Directors and HR Managers.

1. For all Company Directors, Senior
Managers & Human Resource Managers
Please do view this presentation.
It is very contentious, hopefully
inspirational, and very
thought Provoking

2. If you believe that many companies
are measured using return on
capital/assets employed (ROCE).
Then why have numerous businesses
got one important aspect
so very wrong!
Please Read On…….

3. If you believe that Return on Assets Employed / Return on
Capital Employed is an accepted measurement of
Company Performance.
£
Then after reviewing your
company’s “Application
of Resources and Funds”.
You must know where
the largest
expenditure is?
Highest Cost?

4. People!………….Your People, Your Staff!!
Then why are your people frequently
referred to as: -
Headcount
A Variable
Cost -
High Cost
Dispensable
Homo
Mechani
Lacking
Motivation
Money -
Their only
Interest
They are People,
Your People! They
are probably your
organisation’s
largest Capital
Outlay!

5. People………….Your People, Your Staff!!
Do you report
directly to the
CEO/MD for HR?
How are you
Managing HR?
Tell me?
Is your HR strategic
plan getting the
maxim return for your
company’s
investment?
Tell me?
How is this
investment
being managed
& budgeted
going forward?
Tell me?
HR Directors / Managers – Please tell me:

6. As part of your company budget process - YOU should prepare a detailed
HR financial budget complete with a comprehensive HR strategy for your Senior
Management then present it to the board to show how HR will play its part in
increasing profitability through its people.
YOU are responsible for the largest cost in the business! Working in conjunction with your FD you need
to prepare and present your Strategy and Budget to the Board of Directors to demonstrate the true
value of their people…prove to them their people are not just a cost, but an asset that can add value!
People………….Your People, Your Staff!!
HR Directors & HR Managers – Please Note:

7. At the forefront of your strategy, create a project to implement Standards and
Competencies for all jobs. Once complete, conduct a Training Needs Analysis to
identify shortfalls in skills. Train staff to achieve the set standards & competencies
for each job. Also, set an achievable (e.g.15/20%) target for achievement in staff
effectiveness, and staff efficiencies.
People………….Your People, Your Staff!!
HR Directors & HR Managers – Please Note:
Sadly, an increasing number of modern day HR Managers are driven to concentrate their efforts on:
administration processes, unfair dismissal, redundancy, NDA, Tupe agreements etc. Leaving on the
“back-burner” staff development, good internal communications, interfacing with staff and effective
recruitment. Create a consultative open environment that is fun (productive fun that is) to work within?

8. Recruiting………….People, Your Staff!!
It is far too common for HR recruiters to have a one-way recruiting bias towards
their needs only, this is totally
“We want our application forms completed” “We do not accept CV’s”, “Tell us
in your own words why you would like to work here on one side of an A4 sheet,
tell us what benefit you can add to our company”, “please compete our
Monitoring/Security Forms” etc.(Re- Equality Act 2010 people against discrimination)
“Recruitment is marketing. If you are recruiting
nowadays and you don’t see yourself as a
marketeer, you’re in the wrong job!”
...It should be a two-way process!

9. Recruiting………….People, Your Staff!!
• More than likely the best candidate for the job is currently employed, they
may not be happy at work? Perhaps, they do not like their boss? They
have a family, children and a busy work life So they have little free time.
• Even school leavers are trained to compile CV’s, some people pay to
have CV’s professionally written. CV’s are acceptable for short- list
interviewing. Combine this with a short pre-arranged telephone call?
Investing time & effort to facilitate a two- way process is the recruiters job!
• Potential candidates find this so time consuming. They know this process
may not lead to them being short- listed or even selected for interview.
Inevitably, because of the excessive amount of information required
at this interim stage of the process Interest is lost so they look elsewhere.

10. Recruiting………….People, Your Staff!!
Based on the interview experience
the candidate is deciding if you
and your company would be a
good choice of employer for them
………….…….….would it?
Just a reminder, your candidate is also interviewing you!
Beware if they are not successful
with their application for your job,
they could be successful in securing
a job with one of your customers.

11. Recruiting………….People, Your Staff!!
Remember It’s a two way process!
Most recruiters never send a letter to applicants
who have been unsuccessful. This is totally
unprofessional, it’s a simple common courtesy!
All this Bull***t :- “Because of the large volume
of applicants we will not be able to reply to
you on this occasion”?.....Shame on you!
It’s showing your company in a bad light! – It
shows no respect to the applicant, despite them
investing time in your company. This is so bad,
it’s ignorant and very arrogant!

12. I ask? When was the last time you were aware of a HR
Director / HR Manager being promoted to CEO or
Managing Director?
Only on the very rarest of occasions…. Why?
I have never witnessed this during
my many years in management?

13. Furthermore, remuneration for Senior HR
Directors/Managers is generally much lower
than their colleagues occupying roles of a
similar status; commercial, sales marketing,
financial directors, and all other senior
director roles generally?
And yet the HR Director/ Manager should be
accountable for performance from the
largest amount of the organisation’s
capital employed!

14. I mention this is because modern thinking in respect to
the Human Resource function needs to change; as do
some of the people in these job functions.
1. Why, in reality is HR’s impact more often felt in a negative
way?
2. I have learned over my many years in Senior
Management that HR rarely functions as it should?
3. Referring to point 2. - An outrage, made frustrating by the
fact that most business leaders are not scrambling to fix it?
4. Or, do business leaders really appreciate the need for HR
in the first place?

15. The Human Resource Function Needs to Change!
1. HR should be every company’s “ace up their sleeve” a
“killer app”.
2. What could possibly be more important than who gets
hired, developed, promoted, or moved
out the door.
3. Business is a game, the accountant can tell you the
financials, but who would you rather be with? The players who
know how best to win? Or the team manager who knows the
best people to put on the field and get them playing
together as a team to win.

16. The Human Resource Function Needs to Change!
Recruitment - HR role to find the very best person for the job.
To quote a ex HR Director colleague: “in the pond where you least expect, you may find that fish”
Recruiters trying to save time by reducing the human element required in the employment
process? Phycological Tests, sourcing tools, social media, key word scans, referrals and other
tools can be a great ally in the search and selection of talent. They only assist you to get it right,
you do the job!
Using computers to scan applications to identify “key” words from a CV to
create short lists this is “fudging” your job!
In order to save time, some recruiters try to create short-list of three
candidates for interview from job applications this is “fudging” your job!
Most people are familiar with social media functions, therefore, use this
option for sourcing talent and making more targeted searches
Being “nose to nose - belly button to belly button – toe to toe” with applicants
is the only way to understand candidates, their potential and “fit”.

17. The Human Resource Function Needs to Change!
Recruitment - HR role to find the very best person for the job.
There is a serious risk that HR and it’s management structures and processes
have been left high and dry by a sudden shift in the needs of a modern
business. There is a justification for an in-depth audit of HR & its ability
to improve company performance through it’s people.
HR should attract the very best talent offering: Emotional Benefits: rewards,
recognition, flexible benefits. Learning: professional development, career.
Physical: fitness and health benefits. Financial Benefits: perks, bonuses.
In conjunction with Senior Management, create a culture that makes
people feel valued. (very challenging but achievable)
Create effective communications with all staff, intranet, newsletters, leisure
events etc. Have a consultative approach, use working groups to help
solve company issues, great for employee engagement .

18. Recruiting………….People, Your Staff!!
Even organisations considered Bureaucratic like
the NHS and Government have recognised their
recruitment process did not attract the best
applicants for Key Roles, therefore, for specific
key roles they simplified their recruiting process.
They now accept CV’s for certain roles
in order to attract more applicants. (Though it is my
belief that all jobs are key roles, from the cleaner to the CEO)
A wise person, sometimes, but only sometimes, change their mind,
fools never do!

19. Working in senior management roles for major companies
including FTSE 100/150 companies, I had access to a great
many business reports, stacked one top of each other they
would reach a metre or two high.
All these reports analysing sales, marketing, commercial,
operational, and financial performance only.
People………….Your People, Your Staff!!

20. Generally, there are just a few reports on people(staff) and people
performance, these people(staff) reports if stacked on top of each
other would reach a height of Just
a few centimetres high.
People………….Your People, Your Staff!!
Reports such as dividing sales by staff numbers and using that as a
productivity measure…… these types of reports are Enid Blyton
stuff!

21. All Organisations have Financial Budgets!
Normally, based on what results
Senior Financial people would like
to see, they produce budgets for
the current business going into the
future.
This can work fine, but only if the
future is going to be the same as
the present or the past.

22. All Organisations have Financial Budgets!
Normally, covering one year with most of its energies
devoted to lower operational costs, headcount reduction,
staff costs, cash flow, and expenses.
As this can result in…………...

23. What I refer to as:-
“ANOREXIA
INDUSTRIALOSA”
This can result in…………...
An excessive desire to be leaner and fitter, leading to
emaciation and eventually, even death!

24. Surely time is overdue for change?
1. Management, development and
measurement of staff(people)cost in
most companies is financially controlled?
The company’s annual budget generally
prioritises headcount reduction(people)
staff cost.
2. These are the actions of “one trick
ponies” & “quick fixers”. They often
repeat this action at the half year!
Furthermore, they ignore options
requiring a company collaborative
strategic approach to headcount. They
are devoid of other ideas of reducing
costs.
3. They declined any need for
entrepreneurial input, commercial
and operational input. With HR
asked to facilitate showing these
surplus people the door.
4. We are financial managers, it is
our responsibly and our job to
budget, it’s always done this way”!
Within a very large company as a Regional Director
with £80m t/o I was informed by the Financial Director
along with other RD’s that in the forthcoming financial
year there will be no staff increases /new recruits
allowed in the company annual budget. I asked “what
was the company strategy to achieve this?” (Increases
nationally at 6%) “That’s your job” was the reply, we
RD’s had no prior consultation.

25. Tried telephoning your bank
(before covid) it takes up to
30mins to get an answer ?
The same applies to the following:
Insurance companies, Sky TV, BT,
Amazon, most Mobile phone
companies and many, many, other
companies.
They do not employ enough staff.
They do not advertise telephone
numbers, because you need staff
to answer telephone calls from
customers!
Most do not advertise an email address
for customer contact because you
need staff to answer emails (e.g.
GoDaddy who sell email domains!)
Enquires with these companies is via a
website, offering virtual customer
service via a machine! Which attempts
to resolve your issue…….please Homo
Sapiens!
These companies are
sticking their finger up to
customers! Having reduced
headcount (staff) they can
no longer offer even the
most basic of customer
service, without realising it.
Surely time is overdue for change?

26. The Financial Director or Company Accountant in many
organisations has the greatest influence?
Many accountants lack commercial awareness. ……Their
commercial knowledge is nearly as good as a salesperson’s
financial awareness!
Certainly, it’s not as good as they both think!
Sometimes the MD or CEO allow this ………Why?

27. The Financial Director or Company Accountant in many
organisations have the greatest influence Why?
Many accountants do not have good people and
communication skills.
Certainly, it is not as good as they believe they have!
Sometimes the MD or CEO allow this ………Why?

28. You may believe the writer does not value or
has “a downer” on Accountants, FD’s & CFO’s.
1. Manage company expenditure,
liquidity, and financial risk.
2. Provide financial reporting for
management of company.
6. Financial control for record
keeping, reviewing and mapping
processes.
4. Manage financial data, payroll,
invoicing and credit control.
5. Ensure financial practices are in
line with statutory regulations &
legislation. Update & implement
new policies & procedures.
3. Provide funds in support of
planned strategic initiatives. Assist
company collaboratively in wider
budgeting requirements.
Important activities include:
Talented ones are very essential !

29. By the time the company Monthly Management
Accounts are issued the data is history! Using analytics to
produce MAT graphs and dashpots which show trends in
the business and gives management another tool to
better help manage the business. (see next slide for an example)
1. MAT Graph - Sales v’s Gross Profit?
2. MAT Graph - Expenditure v’s Gross
Profit?
5. GAP Analysis - Against Budget
monthly and Year to Date?
4. MAT - Staff Absence & Sickness?
6. Cash Flow Reports?
3. MAT Graph - Sales v’s Net Profit?
Trend analysis could include these few examples:
Modern talented financial management is essential for producing business trend statistic for
Senior Management; these are just so valuable alongside monthly and year end accounts !

30. 0
100000
200000
300000
400000
500000
600000
700000
800000
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
Actual sales 19/20
Actual sales 18/19
Actual sales 17/18
Trend Line 2018/20
Trend Line 2017/18
May 2017 to Aug 2018 trend
shows a serious decline in
gross profit. Very dangerous
for the company if that
trend had continued.
However, using the trend
analysis action was taken in
Nov 17, these successful
actions resulted in a
significant growth in monthly
gross profit between
Oct 2018 - May 2019
reversing the 2017/18 trend.
Should the 2019/20 trend
continue the company will
achieve gross profit in
excess of £700k
Reviewing the 2020 gross
profit trend forecast in April
20 year-end accounts and
comparing them with the
previous year numbers you
will see no growth in gross
profit? This comparison
shows it static at £700k.
However 2017/18 trend
comparison compared with
2018/20 indicates a
remarkable improvement.
.
Gross
Profit
Example business Gross Profit MAT Chart - May 2017 to April 2020. Showing a turn-around.
Useful to add monthly Sales to indicate trends in Sales in comparison with Gross Profit trends.
Month / Year

31. A Prayer to My Manager
1. Agree with Me What You Expect of Me.
2. Give Me an Opportunity to Perform.
3. Let Me Know How I am Getting On.
4. Reward Me for My Contribution.
5. Help Me, Train Me, Guide Me.

32. Famous Tips and Quotes – To Provoke Thought
Following the next slide (the end of
this presentation) there is a further
10 slides of some inspiring Tips and
Famous Quotes should you wish to
continue…… after all:-
"Wisdom is the integration of
thought and analysis based on
accumulated experience."

33. Review your current business
structure to improve your Return on
Capital Employed.
info@8020businessconsultancy.co.uk
Tel: 07720-509316
Contact:
Eighty Twenty Business Consultancy
for a discussion on how you can
improve your business and your
Application of Assets and Funds.

34. Some Inspiring
Tips & Quotes

35. Famous Tips and Quotes – To Provoke Thought
American President John F Kennedy visiting NASA
headquarters for the first time in 1961, whilst
touring the facility he introduced himself to a
janitor who was mopping the floor and he asked
what he did at NASA? The janitor replied, “I’m
helping put a man on the moon”.
“Working hard for something we don’t care
about is called stress. Working hard for something
we love is called passion”.
“You can buy your employees time and
muscle…... but their heart and minds come free”.

36. Famous Tips and Quotes – To Provoke Thought
“Constant, clear and consistent communication
is vital in every organisation! Did you know 95% of
companies have communication problems!.......
Are you one of the 95%?”
“Successful communication is a two-way
street……the people doing the real work of the
company often have the best suggestions.
Create a platform to enable a collaborative
approach with employees, use it for problem
solving and improvement strategies”
“Great leaders don’t set out to be a leader they
set out to make a difference. It’s never about the
role, it’s always about the goal”!

37. Famous Tips and Quotes – To Provoke Thought
“Inspiring people beyond their salary will
encourage people to go the extra mile”.
As an initiative, engage employees to conduct a
company SWOT analysis.
“How many Senior Managers are brave enough
to action this?” Use the feedback from the SWOT
to action new initiatives.
(ask for this “warts and all” without the employees being in
fear of having their heads chopped off.)
“Highly engaged employees are1.3 times more
likely to be high performers than less engaged
employees. They are 5 times less likely to
voluntarily leave the company”.

38. Famous Tips and Quotes – To Provoke Thought
“Engaging employees to participate in defining
their job in working parties assisting the company
to find solutions and to improve processes,
efficiency and performance”.
Employee newsletters detailing the company’s
progress with its strategies, goals & visions
regularly remind employees where you have
been, where you are going by when and where
you are now. (sent to their home address)
“Appraisals are where you get together with your
team leader and agree what an outstanding
member of the team you are, how much your
contribution has been valued, what massive
potential you have and in recognition of all this,
would you mind having your salary halved”(Joking).

39. Famous Tips and Quotes – To Provoke Thought
“84% of employees believe that culture is critical
to business success”.
“Use recognition as well as reward to engage
employees”.
“More than half of employees (52%) feel
dissatisfied with the level of recognition they
receive”.
“Employees who receive strong recognition
generate twice as many innovative ideas”.
“78% of workers say that recognition is a major
motivator”.

40. Famous Tips and Quotes – To Provoke Thought
Employees will always perform at their best when
the environment and culture is conducive to
growth.
Untrained employees take up to 6-times longer to
perform the same tasks than trained employees.
(another justification to initiate Standard & Competences for
all employees)
“Everybody is a genius but if you judge a fish by
it’s ability to climb a tree it will live its whole life
believing it is stupid”!
Make sure your employees get the training they
need.

41. Famous Tips and Quotes – To Provoke Thought
“Provide a clear career path for employees to
see internal growth opportunities”.
“Create an employee Personal Development
Plan for each employee”.
Why should you invest in people?
CFO asks CEO – “What if we invest in people and
they leave us?”
CEO to CFO – “What if they don’t and they stay”?
“A bad manger can take good staff and destroy
them! A Bad Manager is the main reason the best
staff will flee and the remainder of staff will lose all
motivation!”.

42. Famous Tips and Quotes – To Provoke Thought
Recruiting is not just finding the right people, it’s
creating a company where great talent wants to
work. (Google has nearly 0% staff turnover rate, it
gets 7000 unsolicited job applications every day!
“Positive recruitment suggests being as curious
about values, strengths and motivators as a
business is about qualifications, past experience
and references”!
“Recruitment is marketing. If you’re a recruiter
nowadays and you don’t see yourself as a
marketeer, your in the wrong job”!
“Someone is sitting in the shade today because
someone planted a tree a long time ago”.

43. Famous Tips and Quotes – To Provoke Thought
“Treat potential employees as customers.
Recruitment is a two-way process”.
“Your job as a Manager is to get ordinary people
to produce extraordinary results”.
“Human Resources isn’t just a thing you do, it’s a
thing that should help manage the business”
“Staff Appraisals & Performance Management,
when handled skilfully in an organisation can
increase job satisfaction, employee retention,
employee engagement, loyalty and the overall
performance of the organisation.”
“Ensure all departments activities work towards
the company’s Strategy, Goals and Visions”.

44. Famous Tips and Quotes – To Provoke Thought
A recent survey shows that failing to monitor time-
off accurately cost companies up to 15% of their
total operating costs. (All organisations should
have modern Employee Management Software
to provide these reports & employee data and
many other essential and statistics)
Surround yourself with people who have the same
drive and hunger as you!
“Take your time…….. diligence with your staff
selection.
If your candidate choice was for a small business
that you owned would you still employ and pay
that person with your own money?” “If no, do not
select or employ them in my business”.