Women as Leaders, Bosses and Managers

Do Men or Women Make Better Bosses?Fair or Not, Employees Have Gender Biases About Bosses

My first boss was a man twice my age. He taught me how to write a headline, punch up a lede and copyedit my stories. He also made inappropriate comments about my legs on a weekly basis, despite the fact that I kept them hidden under frumpy, ankle-length skirts.

My next boss was a year older than me. When she hired me to do her filing and data entry, she promised me a raise in a year. When my 18th month rolled around and she still couldn't get approval for my pay bump, she called me into her office and proceeded to cry on my shoulder.

Then she went to lunch with her manager pals like she always did, while I ate a tuna sandwich at my desk.

Like many, I've worked for bosses of all stripes over the years, from the woefully inept to the thrillingly supportive to the borderline psychotic. Some of my best bosses were men; some were women. Same goes for the worst of the bunch; each gender's been well represented there, too.

That's why when I first read the recent New York Times interview with Elle Group executive Carol Smith, who insisted women make better managers, I bristled. How can women ever expect men (and for that matter, other women) to stop stereotyping female bosses as shrews, softies or micromanaging morons if we're not prepared to stop stereotyping male managers?

The Double-Bind for Women
Fair or not, people do have their biases. I have an entire inbox of e-mails from workers of both genders telling me why they dislike working for men (too grabby, competitive, uncollaborative) and why they dislike working for women (too weepy, petty, ineffective).

Only now that we've reached the 21st century, women with grumbles about female managers often pepper them with caveats and apologies.

"Although I hate to say it, men are much better to work for," Jane, an office manager, said via e-mail.

Of a previous job at a counseling center, where most of her colleagues were female, she explained, "There was always some kind of drama, gossiping and backbiting going on -- from people who were trained in conflict resolution."

Not so in her current position at a law enforcement unit comprised mainly of men.

"Even considering their high-stress jobs, I've never heard any of the petty complaints, whining about their co-workers and outright hostility that was always taking place at the counseling center," she said.

And some women who've had positive experiences with female managers still said they'd rather have a male boss.

"I have had great bosses of both genders, but I still have a preference to work with men," wrote a corporate trainer who didn't want her name mentioned. "When there is a problem with a male boss, it's normally about the work. When there is a problem with a female boss, it could be the work or something personal. I hate to say it because I am a woman."

And I hate to hear it. Because even today, only 15 percent of executives in Fortune 500 boardrooms are women. And the faster we recognize that some bosses, companies and industries are more toxic than others -- regardless of gender -- the easier it will be for more women to reach the executive suite.

Turning Women Into Men Isn't the AnswerI suspect that no matter how many surveys and studies on the merits of female leaders think tanks and universities churn out, we'll still be having this conversation for years to come.

Sunday's New York Times "Room for Debate" blog post on whether women make better bosses drew hundreds of heated comments from readers, some outraged by the question in the first place, many strictly in favor of either male managers or female ones.

Thing is, so many workers have so little faith in the people they work for, be they male or female. Earlier this year, 52 percent of 3,000 U.S. employees and managers polled by international staffing firm Randstad said there aren't enough qualified managers in their organization.

Unfortunately, failing miserably as a manager is much more of a burden for women, said Jan Combopiano, vice president and chief knowledge officer of Catalyst, a nonprofit that researches women in the workplace.

"If a man fails, you're not going to think it's because of his gender," she said. But, she explained, that's not necessarily the case if a female boss falls flat on her face.

There's no denying that, in general, men and women have different communication styles. (Witness the dozens of letters in my inbox about less-than-nurturing male managers and female bosses who have difficulty giving a direct order.) Yet any workplace consultant will tell you that managing well is a skill that can be learned, no matter what your anatomy.

"We're never going to make men into women and vice versa," said Betty Spence, president of the National Association for Female Executives. "We really need both ways of seeing, both ways of thinking. We need the male focus, and we need women's ability to multitask."

In other words, men and women need to collaborate in the workplace and draw on each other's strengths, not try to change every last trait of each other.

"When men are sitting there watching a football game and you walk in naked, they aren't going to see you," Spence said. "We're just going to need to accept it and use it, because that focus is necessary in business."

Why is it always 1986 in the Health IT world

Simplifying payment structures and standardising treatment protocols will transform health care, but because of the legacy IT systems involved and the 'locked-in' situation, many of the things that have to be done, will remain fiendishly complex and, thus, marvelously profitable for the IT consultants, system providers and integrators, for many years to come.

More Job Hunting Tips for this Tough Market

"How is business? What's the job market like? What are you working on? Do you know of any opportunities that I might be qualified for? I'm looking for an opportunity; can you help me? How can I navigate this job market? What do I need to do to differentiate myself?"

Those are the most common questions executive recruiters say job seekers are asking them these days. The recruiters note that IT professionals—whether they're employed or whether they've been laid off—are genuinely anxious about their job prospects. So, knowing executive recruiters have their fingers on the pulse of the job market and understand exactly what employers are currently looking for in candidates, job seekers are urgently phoning and texting recruiters to solicit them for career advice. Some get as many as 60 such calls and e-mails each day.

Many recruiters say they would genuinely like to help every job seeker who contacts them, but realistically, with the call volume so high, they can't. Business is scarce in the recruitment /search industry, and the consultants have to spend their time on what pays: drumming up search business and working on projects for existing clients.

To help the poor old recruiters and the IT professionals contacting them, we have compiled recruiters' answers to job seekers' pressing job search questions. These have been organised into six 'tips' for ways of working effectively with recruiters and for increasing your chances of landing a new job in this terrible market.

Make Yourself Visible (1)
If you want recruiters pursuing you for jobs, instead of you haranguing them, you have to make yourself visible. This means becoming a thought-leader in your industry or area of expertise. When you become a thought-leader, recruiters have an easier time finding you.

For example, if someone is conducting a search for a vice president of business intelligence, they find out who's speaking at BI conferences and heading up BI-related professional organisations to find potential candidates for the job. The executives who are speaking at conferences and who are elected to boards of professional associations have made themselves visible to recruiters.

Obviously, you can't become a thought-leader overnight. The quickest thing you might be able to do to establish yourself as an expert in your field is to start a search engine-friendly blog and update it every day. Remember that this is not an instant solution. It will take time to make an impact.

Make Yourself Visible (2)
Another way to make yourself visible is to maintain a strong presence on the websites recruiters use to find and screen candidates, such as LinkedIn and ZoomInfo.

Offer Something in Return
You can distinguish yourself from the rest of the job seekers contacting recruiters for advice by offering something to them. You could offer the recruiter a lead on an employer who's either having trouble filling a high-level position on their own or who's looking for a retained search partner.

You could offer a contact from your network who might be perfect for a job the recruiter is trying to fill. You could share an article relevant to the recruiter's business or some other market intelligence you've picked up while networking. Recruiters like job seekers who try to help them. They appreciate the help and they remember it.

Don't String Recruiters Along
If you're not interested in a position that a recruiter calls you about, or you're in the middle of a 12-month long systems implementation and you can't make a move until it's complete, tell the recruiter up front. Recruiters are like every else, they don't appreciate being misled.

Similarly, if a search firm offers you an interview with a client that you know you absolutely don't want, tell the search firm straigh away that it isn't what you want. Clearly you should explain why and tell them what you are looking for. Don't go to an interview just to get some 'practice' it can be very distructive for your credibility.

Just as recruiters remember the professionals who help them, they also remember the people who make them look bad. Part of the role of a recruiter is to keep good records and most keep detailed notes on who helps them and who doesn't, going back many many years.

Bag the Résumé
Handing out your résumé at networking events is expected but it can also appear to be a bit "old and stale". Instead, try out business cards printed with your name, personal e-mail address, mailing address and cell phone number.

The advantage of a business card over a CV document is that it's "soft, genteel and not in your face", not mention it being easier to carry around.

In addition, when you give out a business card, you usually get one in return. As you place your business card in the recipient's hand, you can ask them to please let you know if they know anyone who might be interested in your background. When you get their business card, you can then follow-up with them via e-mail, with an offer to help them in any way, a brief paragraph describing your skills, and a request for them to forward your name to anyone who might benefit from your skills. You have started a dialogue.

Keep Your Options Open
You can increase your chances of finding a new job if you're open to being flexible in your approach; relocating, switching industries or doing different work.

Candidates that limit themselves to a particular geography or fix the type of position they are looking for, generally stay unemployed longer.

Consider consultancy as a career
This is also an excellent time to consider consulting as a career move because a lot of companies are much more likely to take on a consultant than they are to take on a full-time employee. It's a lot less risky for an employer. They can take on a consultant much faster, with much less internal deliberation, without three rounds of interviews over five months.

If you're going to be flexible about your location, the position you're willing to take, and/or your compensation, you have to give recruiters and employers a good reason for your flexibility. You don't want to look like you're being flexible because you're desperate or at the mercy of the market.

Network. Network. Network
You've heard it over and over, but it's true: Networking is critical to finding a new job. Most jobs are found through networking. Consequently, people looking for jobs should spend most of their time networking.

Reach out. Do research on companies you're interested in working for and do some networking to find people who can introduce you to those companies.

Should you be picking the low growing fruit

NOT SURE WHICH WAY TO TURN?

SHOULD YOU TAKE A LOWER PAID JOB?

When searching for a new job and the time starts to drag on and on, normally extending beyond three months, it is natural to begin to wonder if you should take a lower-level or lower paid job just to get some sort of paycheck again.

It's a sensible and an honest question but also a difficult one to answer. After working so hard to build a career and climb the corporate ladder, taking a step or two back, can affect more than your pride.

Some career experts will warn you against taking a lower-level job. They will advise you to hold out for a better offer that will better advance your career and not set you back a step, or three. Clearly, this is not an issue when you need a money to keep a roof over their head and food on the table. It doesn't matter what job you get, just as long as it's honest and helps pay the bills.

There is a strong argument that taking a lower-level job can be a smart career move, especially if it prevents you from being unemployed for more than 12 months, and with the economy as slow as it is, 12 months of unemployment is not unrealistic.

Its a simple but realistic outlook. You may want to consider positions at a level lower. You will increase your chances of getting a job sooner if you keep your options open and consider lower-level positions in addition to relocating and switching industries. This advice goes for executives too. There is an expression that says; 'A' class talent always rises to the top. Clearly, holding out for the perfect or even a comparable job opportunity in this economy may be even more risky than taking a step or two back.

Its OK to hold out for a perfect or promoted post for three to nine months. Even up to a year can be acceptable and justifiable, but if you're out of a job for 12 to 18 months, you're in danger of devaluing your skills and marketability. Today's business moves so fast and there are so many changes and new regulations, new laws and new competitors arriving on a 7-by-24 basis that being out of the market and out of touch for 12 or more months, is a big gap to jump.

The dilemma is; If you spent some of the time you were unemployed doing contract or short term consulting work would this mean that you were still in touch with the business world? Taking on short term and consulting projects definitely will help, for a number of reasons but it's important to take on projects that will help you gain the knowledge and experience that will help you get a promoted post. Also, employers tend to consider these projects as part of a job seeker's portfolio, if they are made aware of them by you.

The down side could be; If you, as an experienced executive, picked up a consulting contract managing a company's payroll, a prospective employer may not consider this as suitable experience, a diversion away from, and dilution of your normal key skill sets. Thus, they may look disfavourably upon your application as an IT executive. They may not think it was at a high enough level and would have preferred to see you working on a more strategic project.

In conclusion; Diversify by all means but be mindful of what contracts and consulting projects you take on. It may seem to contradict my earlier recommendation to seriously consider lower-level jobs, especially if money is tight but consider the circumstances well and do not forget the overall perception that may be given out by some positions, with respect to new employers. They may not see it as a positive move for your career.

Laid-off! Oh No! What now?

Crystal Balls

The USA reported that 2.6 million jobs were lost in 2008, with 524,000 axed in December alone. Unfortunately, the situation isn't expected to be any better in Europe in 2009. People who invested years of hard work, loyalty and dedication have been shown the (back) door. Now they find themselves out in the street, left wondering what their futures hold.

Discard Pride and take Courage
The newly unemployed can't afford to miss a beat. Yes, the economy has deteriorated. Yes, more layoffs are coming. Yes, it's harder to find a job now than it was a year ago but while some will react badly, smart job seekers will get tough and get going. They'll brush up their résumés, hit the job boards, work their social networks and polish their interview skills . Remain calm, collected and focused on finding the next opportunity.

Resting for the Hunt

Finding a new Job is Your Full-Time Job
You might not be fully employed, but you do have a job. Your job is to find a new position. Remember, you have been released from you current commitments, you have not been granted permission to take time off and lick your wounds.

Some people may feel they have enough savings to live off for a month or two, before they throw themselves back in the market. Sadly, if you let yourself slip into the "let's call it a break" mentality, you seriously risk losing your edge and when you do decide to actively pursue a job, it'll be that much harder to get back into the working harness and the pace of things.

Job hunting race
Secondly all your colleagues are now running ahead of you in the job hunting race. You may even find that you have competition from some of your old colleagues, the ones that are not being laid-off. These are the 'jump before you're pushed' brigade. The ones that have seen some scarey writing on the wall near to them and this has provoked them into finding a more secure company to work for.

If you start to pursue a new position immediately, you'll be much more fit and prepared to seek out and find the right opportunity. You will still be hot from the fight. Your readiness will show in your interview attitude, from the way you present your résumé, to the way you conduct yourself while under scrutiny and in your ability to negotiate, confidently.

Slainte!

Keep Your Spirits Up
This is not a license to drink more whiskey, not that I want to discourage you. Being laid off in today's economy can send any level-headed person into a panic. That's why it's important to keep your priorities in check, preferably a reality check. Keeping your spirits high keeps you motivated to get back out there with the level of enthusiasm you need. Did you ever walk over hot coals? as part of a team-building course. Well, if you did then remember the state of mind you assumed at that time, face forward, focus and take that first step.

Step up out of the trench
Professionally speaking, your layoff could be a big blessing in disguise. You know that you felt unappreciated, stifled or bored in your old job! The company politics were dragging you down! So, now is the time to stop whining and find your true calling. Take advantage of this time for expansion, self-discovery and growth. Re-build, renovate and re-invent yourself.

Find a job or position that really challenges you in new and exciting ways. We are all the sum of multiple characteristics and talents that grow and change with knowledge and experience. Look at the different aspects and elements of your complex character. Train and develop some of these and allow others out for some exercise and experience. Try something new. Pick up on an activity that you used to enjoy, something you already know and can expand.

Hail! Friends Countrymen!

Network, Network, Network
When the going gets tough reach out to everyone you know and maybe some that you don't.

Looking for a job is no shame on you and you, like everyone else need to be supported.

Clearly, people don't like to talk about their sudden unemployment but remember that everyone knows the economy is down. Through no fault of your own, you find yourself in the growing army of newly unemployed people but YOU are one of a kind.

Tell your friends. Tell your family. Post updates on social networking sites. Let people know you could use some help, and ask them to put you in touch with people they know are hiring. Make sure everyone knows you are in the market, you are developing new skills and have something more to offer.

New Skills! New vacancies!

Recruitment agencies can help
Talk to recruitment agencies, whether you are looking for full-time or part-time employment. These agencies have already seen a noticeable increase in clients who have never used a staffing company before now. You can be sure that they have already planned for this increase in demand. It's their job.

Advice from friends is helpful, but staffing professionals know the ins and outs of local employment and can propose or suggest that you follow a new direction, one you had not been aware of or considered. Even more importantly, recruitment agencies have established good relationships with local companies. Listen to what they say.

Skills Gap Analysis
Recruitment agencies are also a good source of information regarding what key skills are most sought after, by the market. If you have good current skills they will be able to tell you how to package and market them. If your skills are out of alignment with the market, they can give you good advice as to how to change or tune your approach to a better fit.

No Demand for Zeppelin mechanics!

Take it on the chin if they say you need to re-train entirely and get out there to find the cheapest smartest way to do this. The web is a good source of free online tuition and again your friends and network can help you here too. Seek out the one's that have current skills or work with others who have them.

Consider working for FREE for a short introductory period.

It would be a great advantage to you to find work as an intern or assistant with a company who have, and use, the key skills you need to learn or develop! Remember there has to be value on both sides or it won't work. So you need to have something to offer them. You will short circuit many of their reticence and objections if you offer your time and experience for FREE! In return you get some valuable training or much needed exposure to a new skill, methodology or application.

Clearly working for nothing is a short term activity and you cannot allow it to continue for long. You need an income and you have only a small window of opportunity before you go broke. So, once you are in-situ, you need to learn as much as you can, gaining real hands-on experience and as quickly as possible. Poverty is a great motivator!

You never know what might come from this and it will keep your morale high, maintain your social interaction and extend your network. 3 very important considerations but beware of abusive persons that will try to exploit your position.

Social Networking helps
Don't hesitate to put your professional face online. Make sure you are on LinkedIn and your profile is up to date. Your online presence is often the first place potential employers will look. If run correctly, your social network could be that extra boost your résumé needs. Exercise caution and restraint, because, depending on the content, it could also be detrimental. Post articles you've written or details of a project you're particularly proud of, not the pictures of you mooning your mates on last year's trip to Cancun.

Consider Contract work and Consulting
Although you might be leaving a full-time, "permanent" position, don't rule out the idea of consulting. Many workers overlook the option of consulting because they don't like the relative insecurity and the idea of impermanence.

The use of Contractors and contracting
In fact, many cautious employers now are showing great caution when taking on new staff. They don't want the long term commitment in such a dynamic marketplace. They want to be able to grow and shrink as the work dictates. They do this by using contractors and they manage the uptake of contractors by issuing short 3 month contracts in the first instance, with the 'potential' to extend.

From my experience it will take you 6 weeks to settle into a new company and it will be 3 months before you will become truly confident and start taking the initiative in that position. From your side, you are set to go. From the employers side, they know who they are dealing with and they have assessed your worth. They can now decide whether to 'extend' you for a more agreeable period of time e.g. 6 months or 1 year, to completely 'domesticate you by offering a Permanent contract or to 'release' you back into the Wild.

If you dismiss contracting as an option, you could be slamming the door on your career.

Once you are established as a contractor, it is not uncommon to stay with a company for 2 years or more. Years of relative security and certainty, the same pay and benefits. Remember that a short consulting assessment is often the only way into and organisation but could potentially lead to a (semi-)permanent position.

Go Girl Power!

Cultivate Suppleness and Flexibility

Consulting also has a number of benefits you won't find with a permanent position. It provides a vehicle for flexibility. That may be the flexibility to spend more time with your family, or open up that business of your dreams. Consulting usually generates a higher salary than a permanent position. It can also stimulate you business sense in a way that a more sedintary position does not.

Just say 'No!'
As an independent consultant, you always have the option to say 'No' to a project if it doesn't appeal to you. Can you imagine saying "no thanks" to your last manager? (out loud). There are a huge array of jobs available to contractors. This makes it possible to not only choose where and when you work, but what you're doing and how you do it.

The Postman earns more than you do, now
A contract or temporary position with a company keeps some income flowing while you search for a more permanent and satisfying position. It could be the key to keeping you and your family fed and healthy.

Benefits? What Benefits?
Do remember that temporary workers and contractors do not have access to the same benefits within organisations. No health insurance, no pensions, no sick pay, short notification of termination periods, etc. So, its not all plain sailing and lots of money but its something you will know in advance and can deal with. Remember what your Grannie told you, save up and put aside something for the leaner days.

With grim determination and a willingness to grow and open yourself up to new experiences, you will not be a Statistic very long!

The Survivors' Guilt

“But at least you still have a job.”

Yes, those who survive the all-too frequent layoffs are very grateful for their work, but studies show that the stress from all the upheaval can wreak havoc on their health, morale and productivity. And don’t expect them to work harder out of sheer gratitude

Working with the survivors is challenging. These people have lost good friends, vast quantities of institutional knowledge, pay raises, benefits. Plus, they are being asked to take on other people’s work and add it to their own heavy load. The company is expecting them to be upbeat about it.

There’s that low-level anxiety, vulnerability to colds and flu, aches and pains, sleeping difficulties. When you’re anxious, waiting for that next shoe to drop, your body stays in a kind of fight-or-flight mode. Your body is overproducing adrenaline and cortisol. The hormones you need to sustain yourself during a crisis and the substances your body is producing are very toxic.

There can be guilt that they were spared. This can manifest itself as, anger and depression. Clearly, there’s a huge increase in insecurity and that uncertainty is very destabilizing.

As part of a 10-year study of downsizing at a major U.S. manufacturer, looking at depression in workers, in surveys two years apart in the ‘90s.

Depression scores dropped by more than half in those who took a voluntary buyout. There was little change in those who left involuntarily, but, interestingly, depression scores rose slightly among the workers who stayed on.

From the company’s data on sick leave, it was found that managers and other higher-skilled workers took more sick leave, possibly to look for other jobs. Less-skilled workers, meanwhile, took less sick leave and absenteeism at the company declined as workers hunkered down, trying to hang on to their jobs. Remembering that this was in a job market much more favorable than that of today.

This points to research that layoffs often don’t improve companies’ financial performance – essentially the reason they are done in the first place – and to a 2003 study by the Institute of Behavioral Science that found that people who had seen co-workers laid off reported poorer mental and physical health than workers who had not been exposed to layoffs at all.

The whole metaphor breaks down. We’re a family. We take care of each other and you don’t divorce your children.

Reporting even worse health and attitudes were layoff survivors who were shifted to different positions or departments within the company.

One of the inherent dangers for companies is that handling layoffs badly can taint the perceptions of those who are left. They’re the ones the company is relying on to move the company forward, yet that depends on the respect that remains for those who have led the downsizing.

A lot was going on with the companies studied, including a merger, an increase in outsourcing and a move away from its “we’re a family” culture towards a shareholder-driven, profits first company. Workers took that as a betrayal, with comments that they were being treated as a number or an expendable commodity.

It’s hard enough for workers to concentrate when rumors are swirling at the water cooler and online and these can quickly turn toxic in the absence of reliable and reassuring information from the company but to see coworkers escorted from the building like criminals only severely hurts morale.

Though plenty of articles say productivity goes down for layoff survivors but it’s not that simple. It depends on how productivity is measured and the economic climate in which it occurs, e.g. any form of restructuring and change will take some getting used to.

Workers need time to grieve after a layoff, just as they would a death in the family and workers who have to take up the slack might require more support and training, which suggests there will certainly be a period of inefficiency until everyone is up to speed on the new tasks.

A recent US survey report bears a real sting. It’s based on surveys of 4,172 workers who survived corporate layoffs. In the study:

• 75 percent said their productivity has decreased.
• 64 percent said it's true of coworkers.
• 69 percent said the quality of the company’s products or services has declined.
• 81 percent said customer service has been hurt.
• And 61 percent believed the layoffs have hurt their company’s future prospects.

The bright spot in the survey, however, echoed the advice of many experts: You can lessen the blow by being as open and forthright with employees as possible. Workers who rated their managers as visible, approachable and candid, even when there was nothing new to report, were much less likely to report these declines. You really can’t over-communicate during these events.

Let your surviving workers know that they are here because they are the right people for the job. Let them that you believe in them and together they can work to get the company through these very challenging times. You’ve got to show them your respect, trust and appreciation. Help them prioritize their work. Let them know why they are there and let them know how they can help and how you are going to support them.

This is not the time to sit quietly in your executive office and neglect your people. They need leadership and they need it now. You have to be out there amongst them, letting them know what’s going on and have them feel that you’re fighting for them.

Creativity and Innovation

The the creative art of any deal can be enhanced by the art of creativity and innovation.

In truth, "art" is overstating it. "Visualization" is more accurate: if you can draw basic geometric shapes, lines, arrows, and stick figures, you have all the creativity skills you need to put your ideas into practice and produce a vast array of concepts and network models, diagrams, schematics, flow charts, tables, and other visual representations. Welcome to the world of Pictorial analysis.

In 1969, Rudolf Arnheim's Visual Thinking made a compelling case that while perception and reasoning may seem like two distinct mental activities, neither one can occur without the other. More recently, in the business world, the concept of "strategy maps" has been advanced by Robert Kaplan and David Norton (creators of the balanced scorecard) as providing a "visual epiphany" that helps business leaders connect processes to desired outcomes.

Executives should reach for the pencil not only when addressing a discrete task such as drawing a strategy map, but in myriad situations in which "the problem [or the solution] is hard to see." That may be a challenge for finance people, who are accustomed to believing that, 'all answers can be found in the numbers if one simply drills down far enough'.

Those in finance are often "red-pen" people, who question the entire idea of visualization, right up to the point where they grab a red pen and redraw everything. You will need to work harder to convince finance executives, than any other group but, once won over, they will become the most ardent backers of the concept.

The other two classes of people are "black-pen" people, those who are instantly drawn to visualization and "yellow-pen" people, who are happy to build upon someone else's initial stab at visualization.

It may help to know that the finance department at Microsoft, where, not surprisingly, employees can "make spreadsheets do pirouettes in ways mere mortals can't," nonetheless, they "understand that insights often depend on looking at the data from different angles and in a more visual form."

Drawing Conclusions
Most business problems can be framed as a variant of the five W's, or, more accurately, four W's and an H: who, what, when, where, and how.

Use your given creativity to show innovation in your ideas and concepts and engage your audience by involving them in, what should be an organic process.

So for your next meeting, leave the laptop behind and instead bring a few whiteboard markers. You may find that even a lousy picture is worth a thousand rows and columns.

Linkedin - Make the most of it

I was invited to join Linkedin some years ago when it had just a small following and I subsequently lost the e-mail account that I was using to log in and could not retrieve the Password. So recently, I had to start again and try to re-connect with past colleagues and friends in other locations. It has been an interesting voyage but I still have a long way to go.

I have decided to share with you some of my findings and some suggestions from others about improving your Linkedin account. Hopefully, this will make it more interesting and more effective.

Recommended reading
Within your LinkedIn profile you have a section for recommendations. This is intended to be a useful tool for recruitment consultants and potential new bosses, to find out something about you. Do you play well with others? Unfortunately it can be a bit incestuous, with a circle of friends patting each other on the back and congratulating themselves for doing what they do.

The section suggests that you seek out approval and recognition from a list of your contacts, to allow potential employers a fuller view of you as a direct report, boss, colleague, or client. They are intended to make your LinkedIn profile more dynamic and personal than the fairly static information (where you worked, what you did) that appears in your general resume.Be aware that employers will look beyond the shallow and obviously long-standing friendships, to find the real you.

Instructions on how to get to the Recommendations page;

1. After you log into your LinkedIn homepage, scroll your mouse over to the left navigation menu where it says "Profile." Click on the subsection that says, "Recommendations."
2. On the Recommendations page, click on the "request recommendations tab."
3. You can then walk through a simple three step process.

• Name the job (among those listed in your resume) for which you want a recommendation, using the drop-down menu.
• Decide who you'll ask for a recommendation. And lastly,
• Write a customized note, telling the person why you'd like them to recommend you.

a) What kind of recommendation should you have
While you should have a recommendation in which your boss praises your abilities and how your work helped drive good business results, don't stop there. You want to be able to demonstrate that you were a team player, having your peers say in a recommendation that you go the extra mile or help mentor people can help shape your image with a potential employer.

You also might want to look externally to clients and internally to your direct reports. If you really want to show that you're an effective manger, you want to have endorsement from those people, not just the person above you saying so. Recommendations are about how you work with the people around you, and that should really be all the way around you: above, below, and sideways.

Clearly, make sure you know the person well before asking them for a recommendation. Not only will that ensure a recommendation with greater depth and detail, but also, you avoid putting someone in the awkward position of saying no.

b) Setting Expectations for a Recommendation
Like a recommendation written for the paper-based or e-mail world, a person recommending you on LinkedIn can benefit from some guidance on what specific thoughts and key items you're looking to present in their recommendation. It doesn't hurt to meet them halfway and state what aspects of your experience and relationship you're wanting to convey.

Don't put words in their mouths unless you know more appropriate ones. Do ask them to accentuate one or two good points about what it was like working with you. You can sit back and leave it up to chance about what they might want to write but you may not get the answers you want.

That said, you want to make sure you're not shutting down a colleague from writing something about you that you were unaware. Something that would bolster your image and that you may not have even thought of. In the invitation to write the recommendation, you shouldn't set overly specific guidelines, but mention that you'd be happy to offer them some ideas, if they think it would be helpful.

You might get a happy surprise if they create something that exceeds your expectations and then again you may not.

c). Length: Quality over Quantity
It doesn't hurt to give your colleague some guidance for how long the recommendation should be, and in this case, experts agree that quality should trump quantity. Reader attention spans on the Web are known to be very short. So, you don't want potential employers missing the overall message of a recommendation because they were unable to take several minutes to read it. Time is money and always short. One paragraph should be sufficient, with two paragraphs being an absolute max.In most cases, recommendations with as few as three sentences communicate the most essential points about a person.

d) Number of Recommendations: Again, Quality Over Quantity
Some LinkedIn profiles look like infomercials if you overuse the recommendation feature. You should not follow such a blatantly obvious deviant strategy. I know people who have 300+ recommendations but it waters down the impact of any of the individual recommendations and can confuse and distract the reader. If you have five really important ones, that's sufficient. At a guess the next 295 will be saying roughly the same thing i.e. this person is great! It adds too much noise and degrades your integrity.

We certainly recommend having no more than 10, or if you must have recommendations from each previous position or employer, limit yourself to two to three per job.

e) Give Before You Get
The importance of building social capital and goodwill can not be overstated and it's really unavoidable when it comes to LinkedIn recommendations. Before you can expect serious endorsements from people, it's better to start by recommending some people yourself. This way, when you find yourself in need of a new job, hopefully you can rely on them returning the goodwill.

A mirror on your bedroom ceiling reflects badly on you

Keep the Recruitment Consultant on your side

Job seekers need recruiters more than ever. But in their efforts to nurture their networks and stay at the forefront of recruiters' minds, some job seekers are frustrating the very people they need to help them land a new job.

Executive recruiters tell me that job seekers are inundating them with calls and e-mails to inquire about the job market and seek advice on how to land a job in a recession.

The recruiters tell me that they want to help everyone who's contacting them, but they don't have time. The economy has made their jobs much harder. Drumming up business, hunting for candidates and convincing them to take a new job requires much more time and effort in a recession. As one recruiter put it: "Spending 30 minutes with somebody to give them career counsel is not always going to be feasible. If we accepted every request we got, it would kill our day."

What the recruiters are telling me—though not in so many words—is that some job seekers are really pissing them off. In their efforts to get time with headhunters, over-aggressive job seekers are actually alienating themselves from the very people they need to help them find jobs.

If you're looking for a job and you want to stay on good terms with recruiters, heed the following advice they shared with me:

1. Be respectful of recruiters' time.
Realize headhunters can't devote a half hour of their day to answering your questions about the job market and your résumé. Ask them for five minutes, and don't exceed that five minutes. Have a specific question for them, and if possible, have something you can give back, whether it's a contact or information about the market or one of the recruiter's clients.

2. Don't send bland e-mails.
E-mails that simply say 'Hi. How are you? Do you have any new positions?' don't endear recruiters to job seekers. Cut-and-paste e-mails rub recruiters the wrong way because they're not personal. Recruiters are relationship people. Recruiters say job seekers may have a better chance of building a relationship with them if the job seeker catches the recruiter on the phone. Phone calls are inherently more personal than e-mails.

3. Don't call the recruiter at the same time every week.
Calling a particular recruiter at the same time every week makes them feel like a cog in your call cycle. And routine calls aren't very personal. Rather than calling them every week, stick to every couple of weeks, and vary the days and times you call.

4. Don't send recruiters your résumé every time you update it.
Recruiters say they are generally happy to give job seekers advice on their résumés. Just don't send your résumé to them every time you update it, expecting feedback. They don't have time to give you feedback on every version, and they don't want to see every iteration.

Measured Action for Tough Times

IT Consultants and solution providers are, like everyone else, vulnerable to the recession. However, a recent Market survey shows that IT Consultants and solution providers are preparing to weather the economic storm forecast for 2009. With a lot of good fortune and luck allied to smart planning and insight, they could be positioning themselves for growth in 2010.

US Dollars, GBP and Euros
The dawn of the Obama era in the USA and the infusion of hundreds of billions of dollars, pounds and Euros in stimulus funds are not enough to clear the economic storm clouds gathered over North America, UK and Europe.

Since the beginning of the New Year, the U.S. economy alone has shed nearly 600,000 jobs. Gross domestic product fell by 3.8 percent. And the forecast for the remainder of 2009 calls for sluggish or negative growth.

Consultants poised for 2009
The technology sector, with its IT Consultants and the solution provider community poised to withstand the recessionary pressures of the general economy. The 2009 Market survey of 200 North America IT Consultants and solution providers, reveals that solution providers are very cautiously optimistic about their business prospects in 2009. They fully expect a reduction of enquiries, sales, revenues and profitability. They’re cautious optimism means they are preparing for the worst while hoping for the best.

Weathering the storm
IT Consultants and solution providers are not taking the sluggish economy in their stride. While there is a natural inclination to retreat to a safe place and ride out the downturn, the Market survey report shows many consultants and solution providers are preparing to implement, aggressive business development, sales and market plans. In an effort to not only weather the recession but to power through it and position themselves for growth in 2010 and beyond.

Gross Revenues
Gross revenues from product and services sales increased for 46 percent of solution providers, while only 24 percent saw their top lines shrink. A near equal number of solution providers (45 percent) reported increases in their 2008 profits, while 25 percent said their profits declined.

Ordinarily, healthy revenue and profit increases would be welcomed news for solution providers. But participants in the Market survey were witnessing a phenomenon caused by the recession.

Customer spending down
Consultants and solution providers reported customers spending was down and their existing budgets reduced. This is in anticipation of not getting full funding in 2009 or in anticipation of end-of-the-year budget cuts. Business-technology customers, ranging from small businesses to large enterprises, are expected to continue investments in technologies critical to business operations. This will focus on smart applications and systems that directly reduce costs or innovations that open up new revenue opportunities.

Do not be fooled, they are certainly not freely opening up their checkbooks. IT Consultants and solution providers report that their customers are already cutting back on orders, delaying project implementations and canceling projects to save money.

2009 Forecast
The stated paradox above, is part of the reason why nearly one-half of consultants and solution providers expect their revenue to increase in 2009, while only 32 percent expect a decrease. The key indicator of how tough 2009 will be for solution providers is seen in the number that expect flat year-over-year revenues;

• 30% of solution providers said their 2008 revenue was relatively the same (plus or minus 5%) over 2007,
  
• 21% expect no change in year-over-year revenue in 2009.

• The clear shift to no change or declining revenue reflects longer sales cycles and customers not committing to engagements.

The survey paints a similar picture for profitability;

• 51 % of solution providers expect no change or a decline in their year-over year profits.
  
• 64 % believe their profits will slide by 15 percent or more this year.
• 55 % of optimistic solution providers expect their profits to increase by 15 percent or more.
  
• No solution provider participating in the Market survey, expected profits to sink by 100% or more. Perhaps trying not to think the unthinkable.
  

Consultants and solution providers dependent upon conventional hardware sales expect the largest decreases in revenue and profitability. Anticipating revenue decreases this year;

• 29% of white box/custom system dealers
  
• 27% of hardware resellers and
  
• 24% of general solution providers,
  

Topping the list of specialists anticipating net revenue increases.

• 67% Software resellers
  
• 60% Software-as-a-Service (SaaS) providers and agents
• 55% Systems Integrators
  

Additionally, solution providers say that they are seeing the greatest slow down in business, from small (less than 50 employees) and midsized businesses (50 to 250 employees).

Ring fence your customers
Consultants and solution providers recognize that they must adapt to the poor economic conditions, and many are executing strategic plans to bring themselves closer to their customers. Hopefully this will allow them to preserve and protect existing revenues sources while seeking new opportunities to tap into new revenue streams. Clearly everyone is becoming more defensive of their existing clients and therefore, the new revenue opportunities will be harder to find and even harder to win, possibly with lowered margins and ROI spread over longer periods.

Nearly one-half of consultants and solution providers surveyed for the Market say that their top business goal for 2009 is improving customer satisfaction and retaining existing customers. It’s much easier and more cost effective to expand sales within an existing customer than it is to acquire a new customer and build a relationship. The risk that you put all your eggs in one big basket that could, in itself, fall.

Customer retention not detention
Of the consultants and solution providers focused on customer satisfaction and retention, most anticipate their profits will remain flat or decrease. The same can be said for consultants and survey participants focused on increasing revenue, the second most popular business goal for the year. Are you being retained or detained by your customers and service providers? Discuss!

QoS versus Market Share
Consultants and solution providers who are focused primarily on improving quality of service (QoS), will have a higher expectation of profit erosion. Conversely, consultants and solution providers focused on increasing market share or profitability have higher expectation of improving profitability in 2009. This may not be the case, when taking into consideration the cost of sales.

Revenue Growth - greater expectations?
For revenue growth, 60 percent of consultants and solution providers are squarely set on simply acquiring and developing new customers. Another 30% are expanding their relationships with existing customers. Interestingly, solution providers are not looking to their peer communities for support during the recession. Only 13 percent of survey participants said they would form an alliance with their peers i.e. consultant and solution provider partners, or partner with other consultants to reach new markets and customers.

Together we stand and divided,
we may fall

Getting on top - Dominate your Credit Risk

Until recently, when debt became more expensive and harder to come by, companies generally had a blasé attitude toward managing their trade-credit risk. Most corporations, big and small, don't have credit risk procedures any more sophisticated than the sub prime lenders did. In which case you are flying in dangerous territory with your defenses down.

A simple tip but one that's been largely ignored until recently: Be more wary before extending credit to new customers. Make them prove their creditworthiness. Currently, companies take more a of shy unassuming approach to trade credit by quickly granting it to every new client that comes across their threshold. Once aboard they hope for the best and follow the client's payment performance over time.

Companies too often get into the habit of not asking for any financial information from their customers in favor of speeding up a much coveted deal. Suppliers have been doling out credit based on what little information may be available on their privately held clients, despite the fact that private firms have a higher rate of bad debt. Even after a credit account has been granted, the supplying company may shy away from asking for financial data because they don't want to offend a brand-new client. Clearly the banks have a part to play in all this because they too have been willing to extend credit lines far beyond reasonable doubt.

Companies should ask for customer and bank references up front. Although, that information may be biased and unreliable because of the struggling financial institutions. Will the bank and lenders be there in the long term for their customer? Are they going to provide financing or will they make a quick exit and leave the company with a liquidity shortfall, which may or may not cause the demise of the company? Are the financial institutes responsible for the ongoing viability of their clients, i.e. the corporate companies. What support and backup can they provide a struggling company when they themselves are in difficulty. These and many more, are all questions vendors need to ask themselves when looking over a customer's bank information.

Companies should request that all customers, new and old to fill out a one-page credit profile every year. The sheet should include the company's cash position and the most up-to-date contact information. A type of credit probe which may or may not provide the correct level of information in the right format, in a timely manner. This will lead to more overhead in the accountancy dept or with the business analysts, but if addressed properly, it may provide early warning of difficulties.

If there is any good news to be had during this economic downturn, it's that everyone is in the same boat. Your customers are asking their customers for more financial information. It's now become perfectly acceptable to ask about a client's financial status because everyone is being scrutinized by every supplier. Its a big global circle of accountants, checking each others assets.

If it's impractical to demand financial information up-front, then come up with a triggering number for when your company will demand it. A simple threshold or framework will suffice. If clients cross the established and agreed amount, then they must provide their trade creditors with financial statements to validate their credit. The type and level of the threshold can vary depending on client, industry, item value, uniqueness, development costs, credit exposure, etc. Its not a numerical value, its a way of thinking about and controlling your risk exposure.

Another way to improve your credit /risk management is to conduct a detailed assessment and calculate each customer's probability of default. With such precise knowledge you can price your services accordingly, and by showing your client the calculations, you can easily justify a premium rate. Cash has always been king and currently it is even more critical to companies health and financial welfare, but many companies have no idea who they're selling to, never mind who owns the company or their cash position. Its never been more critical to know your customer.

Moreover, suppliers can no longer rely on traditionally held views that big-name companies are safe from sudden and dire financial problems even if they don't have strong cash flow. Many of these companies have lived on extended credit lines for years and are not asset rich. Other companies can have negative cash flow and positive net worth. They're sitting on land or occupy buildings that no one's willing to buy. If their credit is pulled and they end up going bankrupt, the asset value won't cover the debts.

Experts also suggest sales and credit departments improve their communications between salespeople and the collections side. Your salespeople are trying to maintain the vendor /customer relationship at the same time as maximising their commission payments. This is a tightrope, and is a very dangerous situation for the company to ignore. It must be very, very tightly controlled. Don't allow salespeople to grant extended payment terms, without justification and authorisation, before checking in with their credit counterparts. Companies should use these negotiations to get more financial information out of their privately held clients and reprice future services if possible.

Moreover, salespeople may be able to offer the credit department more insight into a customer's financial situation. Therefore it is imperative that they have the influence, motivation and the time to actually get involved in credit and collections questions. Its a team effort and everyone better be on the team or the game is over.

Slash your credit exposure

The current credit slump and downturn gives companies an excellent excuse for demanding that customers share more financial information with them. This is not for the direct benefit of the customer but to keep on top of the clients' ability to pay and stay viable. You don't want the stream to dry up.

The distinction between dependable and unreliable customers has never been distinct and now it is even less so.

Corporate clients that are paying you on time may in fact be financially unstable and maintaining a good public image, could be delaying payments to other trade creditors. Should you be concerned?

At the same time, some customers may be withholding their payments, not because they're in dire straits, but because their banks is shortening their normal credit lines. More worrying is, if they are not willing to lend to them at all, in the near future.

Indeed, some companies want their suppliers to practically fill in as bankers, by extending payment terms and giving their working capital some room. Ifcustomers are asking their vendors to provide cash flow for them, then this is a very uneasy situation. If you have somebody who was once paying you every 30 days and is now paying you every 60 days, your own credit exposure is going to double. You have to evaluate if you want to take that kind of risk, at this time, with this customer.

It's never been an easy task especially now. Companies need to get a better handle on their corporate customers' ability to pay. Nearly one-quarter of publicly traded businesses worldwide are at risk of defaulting on their debt, according to some recent indexes of "troubled" public companies, whose default probability exceeds 1 percent. During the past 17 months, their risk-management firm's monthly barometer of 21,000 public companies in 30 countries has been creeping closer to the September 2001 all-time high of 28 percent.

What's less-known is how many private companies are at risk of defaulting on their promises to creditors. They tend to keep their vendors in the dark about even basic financial information. Their suppliers are sometimes stuck, relying on only basic bank information.

Of course, the rising number of hurting companies isn't news to accounts-receivables departments that have been well aware of their corporate clients' slipping ability to pay for several months. But there have been some surprises: Now, even customers once considered to be "excellent payers" are taking an extra month or more to pay their bills but then maybe their just taking advantage of your loose credit checks, risk profiling and accounting practices.

In fact, the trade group's latest monthly barometer of its members hit a record low of 40.1 in December. The survey asks 800 credit managers to rate favourable and unfavourable factors in their business cycle (unfavourable factors include rejections of credit applications, monetary unit {cash in} collections, and amount of credit extended). All those factors declined between December 2007 and December 2008.

The overall problem is, suppliers, especially small businesses need to tread carefully before pressing clients to pay up. Every company wants to keep their most valuable customers and not lose them to disagreements or hurt feelings over payment terms. The vendor-customer relationship is symbiotic, very personal and emotional.

However, no company wants to get burned by being too nice and seeing old invoices pile up or payments seized after a customer goes belly up. Trade-credit experts say that by the time you notice a customer is on the brink of insolvency, it's unlikely you'll get all the money that's due to you. So do your homework. Analyse your clients' risk profiles and get on top of your riskiest customers. Then you may have a chance to see the impending crash and minimize the damage to your receivables.

In particular, trade creditors want to avoid having to return payments received within the 90 days before a customer files for bankruptcy. Bankrupt companies can sue for those payments up to two years after they've entered bankruptcy court. So, if a company suspects a client is close to going under, the company can demand cash on delivery, payment in advance of a shipment, or a letter of credit. All of which are methods of payment that are not subject to preference claims.

Another way to avoid unexpected losses: Ask bankrupt customers to add your company to their critical vendor list. Depending on the bankruptcy judge's ruling, this group of vendors may be paid immediately over other suppliers if the debtor can show that the vendors' products or services are crucial to the company's survival and turnaround efforts. At this point the ship is on the rocks and you may just be looking around for flotsam to cling.

Lay-offs and litigation - lawyers win both ways

With potentially costly legal claims by dismissed employees soaring, employers need to make sure their job reduction and elimination plans are substantiated.

Nothing in life is free. While companies are jumping to reduce head count because they see an opportunity to save money in the short term and a way of openly validating those savings i.e. the economy is sinking. Be aware, they should be prepared for the possibility of punitive legal actions against them by aggrieved workers, and they need to consider how they can underwrite the accompanying legal costs.

The number of litigation actions is rising in tandem with the pace of job reduction and eliminations. These cases are boom-time for the defense and employment lawyers. They're seeing a major spike in their business that will not abate anytime soon. Its an ill wind, that usually helps some lawyer or other.

The main categories of lawsuits are those in which employees claim their dismissal was discriminatory, usually based on age and those, which requires advance notice for mass layoffs and plant closings.

Attorneys advise that cautious planning when making layoffs will help avoid a trip to court. They suggest that when you do decide to commit your company to a layoff of any size, then take good advice and plenty of time to make sure it's done right.

The Finance Dept. and accountants may not be directly involved in executing layoff plans, but with the risk of a sizable legal judgment, it gives them plenty of reason to stay involved. If only to satisfy themselves that the plan is legally and therefore, financially sound.

The first step in any staff reduction exercise, should be creating a detailed business plan that explains the need. Included in this will be;

• what facilities or businesses will be affected,
• the number of positions affected,
• what type of positions will be lost (What effect will this have on the future business)
  
• when the layoffs will occur, and
  
• how they will be announced,
  

All this must be clearly defined and approved before any actions are taken. There have certainly been some times when the legal or finance dept. have had to tell management to either come up with a more defensible reason for the layoff or rethink the decision. Analyse and assess the risk.

Juries will side with the employees when the employer doesn't have adequate documentation. Internally everyone is in such an emotional and stress driven crisis mode when they're involved in workforce reductions. Therefore, things that they may think are obvious to the world, are not. It pays to get an objective, knowledgeable view on these things.

The potential for discrimination lawsuits makes it essential that employers create an objective selection process for deciding which employees to let go. If 25 workers are dismissed and 20 of them, say, are over age 50, the chances of a lawsuit will rise dramatically. Its not to say don't do it its just to say, be prepared to defend your decision in court.

Is you wish to be seen to be logical and fair about the selection process, then some lawyers suggest that executives create a list or matrix of criteria for evaluating employees. This can include;

• years of service,
• qualifications,
  
• experience in the field,
  
• job performance,
• team working ability,
  
• disciplinary history.
  

A weighting should be assigned to each criterion, and each employee should receive a numerical rating in each category. Clearly if only one person is allowed to do this, then it will only be one persons opinion and that is difficult to defend.

To avoid subjective bias and statistical anomalies, companies should consider hiring a statistician to objectively evaluate the layoff selection criteria and ensure that none of them is in itself discriminatory.

It may prove difficult to avoid exceptions to the process. For example, a job-performance measure may take into account employees' past three annual reviews, but some people will have been hired more recently. Diligently document and explain in detail any reason for deviation or breaking from the official process.

But even a thoroughly objective selection process, while defensible in court, is no guarantee a lawsuit won't be filed. As a further safeguard, companies should conduct an impact analysis of how layoff decisions will affect the makeup of each protected class of employees. If a protected group is disproportionately affected, the plan will look discriminating and the company may want to alter it accordingly.

A company's legal concerns don't end with the selection process. Executives who deliver the bad news must tread carefully with their word choices so as not to come across as apologetic or sugar-coat the real reason the employee is being dismissed.

By saying, 'This isn't your fault, this is our fault,' you will be falling on your own sword." The employee can easily use such a loose statement against the company in court.

Watch out for a rise in the number of whistleblower cases coming from former employees. As more and more people get terminated, there's going to be more and more litigation and cries of protest.

Red Flags - Customer's falling credit status

When it comes to credit risk profiles, watch closely for these red flags in the companies you depend most on for financial stability, your customer.

The stringent credit markets make spotting a soon-to-be insolvent company increasingly difficult. It's difficult to determine who's really on the edge and ready to go out of business, versus who is having tough times and struggling, but will survive.

To avoid losing future payments, companies should be on the constant lookout for red flags. Signs that a customer is having serious financial problems. The following don't necessarily indicate that a client is on its knees or in contingency mode. But depending on how any of them are relevant, should trigger a warning bell for your credit department. Worst case, the customer deserves close monitoring, and perhaps their payment terms renegotiated.

Changing Payment Patterns.
Perhaps the most obvious clue that something could be financially amiss, but one that cannot be ignored, particularly these days. Previously reliable customers that suddenly start missing due dates warrant attention: If your customer is falling further and further behind in making payments on their invoices, that certainly should be a tip off that something may not be right.

Renegotiation requests
If a company asks to spread payment windows from 30 days to 45 or 60 days, this should raise eyebrows. Hone your credit skepticism on requests to reschedule payment agreements, such as paying off one service over four months rather than all at once, as previously agreed upon.

Shifting Buying Habits.
Even if regular customers are paying on time, are they still purchasing? Examine and analyse the trends. If their previous buying was consistent, but their manner of placing orders has changed, this could suggest trouble. Also, keep a lookout for regular customers that suddenly start buying more. Pre-bankrupt companies have been known to stock up on inventory, knowing they won't be liable for the goods later on. This is a very unpleasant maneuver and should be stopped. Fix your customers' credit /risk profiles and keep them within their credit thresholds.

Rejection levels, Haggling or Higher Demands.
Is your customer returning items more often, or unjustifiably asking you to make deductions off invoices because of damages? Customers that start making unreasonable demands on delivery are sending you a warning. Your customer, may start saying his company expects a discount if a shipment doesn't arrive within very tight deadlines, especially if he knows that you can barely meet. Be warned and look behind the request.

Shrinking Cash Flow.
Keeping a close watch on your customers' cash balances over time, is what the good companies do all the time, if you have access to their financial statements. Find out how much they rely on equity, short-term debt, or long-term debt and adjust their credit /risk profile accordingly.

Large Accruals.
Many distressed companies carry sizable accruals on their balance sheets, so these figures need to be explored and justified. First you need to get access to their balance sheets, that in itself may cause difficulty and could also give an indication of solvency.

Tight Lips.
Customers that previously shared financials with your company, but now suddenly claim it's against their policy to share financial data. This should only make you more determined to find the true picture but if in doubt, err on the side of extreme caution. Shorten their credit lines until they come up with strong evidence to convince you.

High DSO (Days Sales Outstanding).
Companies that have fallen behind on collecting their own receivables may be unable to contribute to yours.

Managerial Shuffling.
Unexplained or questionable changes in management could mean that there's a disagreement between executives and the company's board or owner. More obvious signs of trouble in this regard would be the hiring of a chief restructuring officer or turnaround company. Its a warning flag, but at least they are addressing their issues. Tighten credit lines in the short term, til the re-structure is effective and things improve greatly.

Persistent Rumors.
Credit experts recommend keeping your ears open for any negative news about your customers, which may be the only way to garner helpful financial information about privately held clients. Pay attention to news articles, whispers from your sales teams, and other companies' credit managers. There are industry-specific credit groups that are invaluable for uncovering past-payment records of customers, search for them and make friends with them.

Tax Liens.
A tax lien against a company is the number-one indicator that it's going under. If a customer has postponed paying its taxes, you're not likely to see its overdue payments either. Sound the alarm!