Do not skimp on replacing old laptops

Your Business may not survive it!
Not replacing laptops can prove very costly. You will need additional service cover against losses and breakdowns, because the warranties have expired, not to mention the lost productivity in using a three year old model. Keep your laptops up to date and in the new budget. If there are cuts to be made then this not the time or the place.

Companies are trying to cope with reduced IT budgets and are postponing the purchase of new laptop computers but they are making a big mistake.

Extending the use of laptops two years beyond the traditional three-year lifetime cost companies an average of $/Euros 1,050 per machine, more than the initial replacement cost.

The additional costs will include a hype in repair costs simply due to old age, normal wear and tear and the end of three-year warranty periods.

For each laptop user that is using the outdated equipment, it costs the company about $/Euros 9,600 in lost worker productivity over the two-year period.

Many companies are keeping a tight control over new purchases because of the recession. Some forward-thinking companies have taken the more positive step of replacing some user laptops with less expensive smartphones or other handheld devices. Such devices can be far more cost-effective for users who are only using laptops to access e-mail.

The replacement of corporate laptops with mobile devices should grow significantly over the next decade. In fact, it is predicted that in less than 10 years, the majority of Internet users will be accessing the Internet via a mobile device instead of a laptop or desktop.

Mobile devices are now being seen as mission critical but organisations are not quite at the point where they are completely confident about replacing laptops with smartphones. They are looking seriously at it and planning to research the potential gains in efficiency.

Eurozone Says No to Fresh Stimulus

European Ministers reject U.S. calls for budget injection as "not to our liking."

Eurozone finance ministers yesterday rejected calls for increased economic stimulus measures, despite a worsening outlook for the EU economy. They also rejected any easing of the requirements for joining the Eurozone.

Speaking after a meeting of the Eurogroup, which brings together the finance ministers of the 16 Eurozone countries, Jean-Claude Juncker, the prime minister and finance minister of Luxembourg, said: "We don't feel we need to pile deficit on top of deficit and add further to our debt."

Juncker, who chairs the Eurogroup meetings, added: "We would not want to give the impression we are considering putting together other recovery packages."

His remarks followed comments from Larry Summers, director of the U.S. National Economic Council, in an interview with the Financial Times, that governments should pump more public money into their economies to fight the recession. "Recent American appeals" for a European budgetary effort are "not to our liking," Juncker said.

Juncker said ministers had rejected any relaxation of the criteria for joining the euro, including the length of time that countries have to spend in the European Exchange Rate Mechanism II. "There is no question of changing the criteria," Juncker said. "The credibility of monetary union is at stake," he added.

Both Juncker and Joaquín Almunia, the European commissioner for economic and monetary affairs, said that assessments of Europe's economic outlook are now worse than they were earlier this year. Juncker said that the recession is "certainly deeper than what we saw at the beginning of the 1990s." Almunia said that "the recovery will take longer than we were expecting a few months ago," and that he now expects a "gradual recovery" to start in 2010.

Take Control - Shorten the Layoff

It's easy to view a layoff as an end-of-the-world situation. Few experiences are scarier than losing your job and the risk to your financial security that it brings.

The emotions; fear, loss and desperation, that grip you after you've been laid off are unhelpful and potentially destructive emotions. They drain your energy, distract you from picking yourself up and effectively prevent you doing the work you need to do to find a new job. You know you cannot allow these emotions to consume you and must work at battling through them.

Dismiss and fight the thoughts that unemployment is the end of the world, it is only the end of a small chapter in your biography. It is a good opportunity to improve yourself and to open another fresh chapter. Find out what you enjoy doing and what you do well, it is possibly different from what you were doing. You have an opportunity to be better off and stronger, than you were before, both emotionally and economically.

The key to success is maintaining a positive attitude. This is especially so in an interview situation. Potential employers can detect a candidate's fear and desperation, as easily as a shark can smell blood. Keep a stiff upper lip and play the most positive role of your life, being you.

Here are seven tips you can consider for getting through the initial layoff feelings, even in a bad economy;

1. Negotiate for the best package, for you.
Don't think that you have to accept whatever severance package your manager or HR puts in front of you. Your severance package (everything) is negotiable, don't feel pressured to immediately sign on the dotted line. Take the time to read the severance package, even if it's 20 pages long.

Your employer gives you a hard time but hold your ground and tell the manager that it's unreasonable and unacceptable for the employer to ask you to sign something, without first reading it in detail.

Beware of the covert threat, 'If you sign this right now, you'll get your best deal. If you don't sign it, you'll get a worse deal.' You do not have to agree with their flawed logic. Tell them you have to sleep on it and take the document away from the office. This should not surprise them and they would be foolish to try and stop you. It is important that you study this document in detail and in a relaxed atmosphere. Seek objective and knowledgeable advice.

To help you prepare for severance negotiations, consult your contract and HR manual for information about what kind of severance package you should expect from your employer. That way, you can plan ahead of time what other elements of a severance package (e.g., career counseling, health insurance) you might need or can request.

If you require more information than what's included in the HR manual, then seek out and politely ask other employees who've been let go, what they received for severance. It would be a good idea to form an ex-employee support group.

When it comes to actual negotiations, negotiate one perk at a time, whether it be the money, healthcare or career coaching, rather than going after the whole package. You will always get more if you look at one thing at a time. Your mantra should be, 'I just want to be treated fairly and receive the support and benefits that I am due.'

Initially conduct negotiations on your own, without a lawyer, not just because of the expense but also once you get lawyers involved, it's taken out of your hands and it becomes lawyers talking to lawyers. Its always better to try to work things out with your company in a congenial and rational manner.

2. Don't defeat yourself
Remember that after you've been laid off, you will feel vulnerable. When you feel vulnerable, it's easy to look to far ahead into a gloomy scenario and to sink into depression. It is difficult to resist those negative thoughts but for your own well-being and the success of your job search, you have to fight against it.

Do not dwell on all the reasons why your employer might have selected you for a pink slip, remember that the fundamental reason you lost your job economic not personal. Your employer was having trouble competing during this economic downturn, not because you're a bad worker. Remember that high numbers of talented, hard-working professionals are getting laid off and that you are not alone in this. You still have great potential and will be a valuable employee at another more stable company.

There are still a large number of companies that are in desperate need of highly experienced, quality employees. There is something else out there for you, a great opportunity that will improve your future. You may have to work for it. You may have to study for it. You may have to manage the change.

3. Examine your finances, closely
If you have Excel or similar, build a spreadsheet model of your personal finances. Closely examine your outgoings, expenses and your savings, to determine, exactly how much money you'll need to cover your expenses during the time you're unemployed. You can hope for the best but plan for an extended period of time e.g., more than three months.

If you know your budget i.e. how much money you have on hand, it may put some of your anxiety to rest. It will be a bit of a reality check but if the exercise of planning your finances sends your anxiety levels and blood pressure through the roof, then try and turn it around to give you strong motivation to find a new job.

4. Make job-hunting your new job
Do not consider yourself a vitim and you are certainly not a prisoner in your own life. Stay active and take regular light exercise, it will help dissipate the negative feelings and increase your circulation. Now, its important to devote the time you previously spent at your old job to looking for a new job.

Your new job is 40 hours a week looking for employment. Stay busy and focussed on your task. Your mood and motivation may be a bit cyclic at the beginning. Be aware of this, recognise it but don't lie down to it. Make a plan, build job seeking activities and keep a routine going.

By continuously working toward getting a new job, you bring structure and discipline to your life and you'll feel better about yourself because you have stopped seeing yourself as a 'vistim' and you are taking control of your situation.

If you do this, you'll find that you have less time to dwell on your recent layoff and less time to sink into the negative thought patterns that are associated with it. If these thoughts continue and become a problem do not hesitate to seek help and advice from your doctor. Short term, event driven depression is a well documented condition and can be readily treated but, like all illnesses, it needs to be diagnosed and treated early in its onset.

5. Expand your search
Do some research. You may have been out of the job market for some time. Find out what's going on in your field or expertise, geographocal location and beyond. Find the success stories, the well-funded organisations, the new, new thing, etc. Its out there and it needs to be developed, manufactured, sold and supported. Where would you fit into this cycle?

Make a long list of industries and organisations in your chosen location(s), preferably those industries where you could put your skills and experience to good use. Don't worry too much about who are advertising vacancies and might be hiring, just develop a long list.

You cannot de-select companies because you don't want to work for them. You are just shrinking your pool and greatly reducing your opportunities. Be realistic, put yourself in a stronger negotiating position in the event one of those firms suddenly has a position for you. Simply consider them as a shorter term opportunity. Somewhere you can gather knowledge, experience, and extend your network. I guarantee you will meet some very good and interesting contacts, wherever you work.

6. Online applications and search firms
Although the Web is an invaluable resource for researching companies, it's not always the best medium for submitting job applications and résumés. Some say that its not an original or unique way to find work, 'If you can do it, about a million other people can do it, too." Companies can get hundreds, even thousands, of résumés for one posting. That is not the best way to get a job but don't dismiss it.

Explore your network to make contact with senior people and hiring managers inside the companies where you're interested in working. You are looking for friends of friends or colleagues of colleagues. People who can introduce you directly to key managers.

Recruitment and search consultants may yield some help in connecting you with a new job but they are generally geared up for buoyant economic conditions, when there's lots of competition for labour.

Rememeber to attend as many conferences or networking event as possible, somewhere you have the opportunity to make personal connections.

7. Stop reading bad news
Don't pay too much attention to the news about the economy because the news is, by definition, always going to be attention grabbing; shock, horror and downright bad. It does make people very discouraged at a time when they need to stay optimistic. Your attitude, in the form of discouragement, negative thoughts and lack of stamina, is the biggest obstacle to finding a new job.

Employers want people who are flexible, resilient and open to and understand the need for change. Variety is the new constant!

What will you do to Save Your Job?

Man the Lifeboats !

Executives at the helm of your financial services companies are reeling from the subprime mortgage losses and to appear empathetic, they are opting to relinquish their multimillion dollar bonuses (for this year only) to save their jobs or their public image.

I can foresee the day when CEOs will be down to 1 0r 2 cases of Dom Perignon a week. Quelle dommage! Man the reflective glass barricades on the ground level, the stockholder wolves are at the door!

John Mack, the CEO of Morgan Stanley, announced during his company's fourth quarter earnings conference call on December 19 2007 that he would give up his bonus, that year. Unfortunately, even this strategy of trimming some of his own fat and lightening the executive load, as the ship sinks past the first fathom and goes deeper, doesn't always work.

Bear Stearns the investment bankers - Their CEO James Cayne, along with his CFO, Sam Molinaro, announced that the entire executive committee would not be getting their bonuses, this year. Unfortunately, this 'too little too late' gesture did not have the desired effect. It did not placate the shareholders, as they had hoped.

Bear Stearns announced on Tuesday that Cayne had resigned from his post as CEO of the investment house. To soften the blow, Cayne will remain in his humble position as chairman. In 2006, Cayne earned a cash bonus of $17 Million. Where did all this money come from? Your investments, of course. It makes you wonder why the annual bonus on your investment was restricted to a few hundred dollars. Well, an important man has overheads, he has to drink and eat, regularly! Oh no, wait, that's all on 'expenses'. I wonder what his expense account looked like that year?

Giving up their bonuses is not a job-saving strategy, it is a "face saving" strategy. An executive 'garage' sale, except what they are giving up is not theirs in the first place. It belongs to the shareholders and investors. An empty gesture when so many employees and investors are getting a raw deal; substantial financial losses, no bonuses and faced with being laid off. The executives are simply doing something politically correct by not walking off with five million to 17 million dollars, depending on who you are.

There is a big difference in the multi-million dollar bonuses that executives slice off for themselves and the few dollars being offered to placate investors, employees and shareholders. Investors and employees normally require 'bonuses' to earn a living wage. A far cry from the executive feeding trough, with its frenzy of snouts and diverse income streams. Don't be concerned. Most senior executives can live very happily on their 'expense' accounts, which can include the rent, energy bills and maintenance of a fine downtown apartment, close to the office and some petty cash to pay for the taxis, parking and maid service.

If they can struggle through to retirement, then they have a nice half million dollar pension per year to see them through and a large comfortable preferential stockholding to sit on.

The irony is, these executives may not have been elligible for bonuses this year anyway, given that their companies displayed such poor performance. That was certainly the case at Bear Stearns and many others. Like the sub-prime mortgage bonds and options themselves, its all just another illusion from the masters of hype, rhetoric and corporate magic; fireworks, smoke and mirrors to entertain the masses, and to distract them from the truth.

It would appear that we have learned nothing about leadership from the sinking of the Titanic and the lifeboats are still for executive use only.

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!

Indian outsourcing fears being burned

Indian outsourcing firms are turning down business out of fear of their customer companies going bankrupt and leaving them holding a bad debt.

As a result of the current economy and the rush to reduce costs, there is an upturn in companies sending work offshore to places like India. So you would think Indian offshore companies would be happy about the potential new business opportunities and be very aggressive about going after them. Unfortunately, that is not the case and the Indian companies are very aware of the fragility of the world economy. They do not wish to be the one's left holding the cheque.

Only a few Indian offshore companies are chasing these new deals because of this, according to Partha Iyengar, vice president and regional research director at Gartner India. In a Reuters story published March 3, Iyengar went on to say that "Indian firms need to focus on revamping their sales models to help generate cost savings and add value to the client's operations," but not everyone agrees with this reason for not chasing potential new business.

In a follow-up comment to the story, one Indian commentator brought up the concern that clients could go bankrupt by the time payment is expected, a very plausible and valid point. Although offshore outsourcing does provide some cost savings to client businesses, it doesn't guarantee they'll come out of the recession in one piece.

The Indians have proved themselves to be excellent and well respected business people over the centuries. Therefore, it seems like a sensible and justifiably cautious approach by the Indian outsourcing companies that they do put themselves in a vulnerable position that may get them dragged down with someone else's sinking ship.

Calculating the odds of being paid off - First step

"Will I still have a job tomorrow? and in the tomorrows after that"

With the world economy claiming to be in a far-reaching recession and companies announcing layoffs seemingly every day, the question of continuing employment looms large in every thinking person's mind.

Clearly, some employees feel that they are at greater risk of losing their jobs than others. What's not so clear is how to calculate that risk. So how do you become your own Risk Manager and carry out a risk assessment on yourself. Consider how you can devise a good method that would help, not only yourself but also other IT professionals, get a relatively objective handle on the odds of getting laid off.

You may be wondering why anyone would want to determine the likelihood of their losing a job. You may also believe that a 'layoff' risk assessment method could be a very helpful tool. Depending on your circumstances, outlook and character, many people worry unnecessarily about getting laid off and others who do get laid off, are often taken completely by surprise.

A risk assessment for layoffs could help IT professionals determine whether they are in the red zone (high) or the green zone (low) risk category, when job losses come around. Low-risk professionals will then be able to rest easy and carry on with their work and the high-risk employees can be proactively defend and entrench their positions, whilst actively preparing themselves emotionally, professionally and financially, for the moment when their jobs get cut.

As a first step, let us propose a list of possible variables that could indicate someone is likely to get laid off. Let us also propose another list of variables that could indicate someone is unlikely to get laid off.

Our goal is to develop an accurate and plausible assessment, one that will really help people get a grip on their futures. Coming up with such an assessment, can be difficult, for a whole variety of reasons. One of these reasons would be an incomplete or inappropriate list of variables.

If you examine the lists below and identify which of the variables are appropriate to your circumstances and discard those that are not. You can also weigh a certain number of the retained variables more heavily than others, because of their importance or criticality.

Examine also how the assessment is structured. Structuring it as a questionnaire would allow people to assign points for each negative variable (e.g. each strike against them) and subtract points for each positive variable. The conclusion would be easily calculated and greatly simplified. People with high scores are more likely to be laid off than people will lower scores.

Remember that the goal of this assessment is to help and support people, not to frighten them.

Variables that Could Indicate Someone Is Likely to Get Laid Off

1. Your employer is not meeting its financial plan. (he's broke!)
2. Your salary is at the high-end of the pay scale for your profession or function. (so much for ambition!)
3. A position or function you help support has been eliminated or restructured. (the horse died!)
4. You work on a project that has been cut or that you sense is going to be cut. (Zepellin restoration)
5. You gossip or complain a lot. (no wonder. Look at the previous options on this list)
6. The work you do is mundane or repetitive in nature (e.g. re-setting passwords or setting up routers) and could be outsourced to a third party. (or monkey with learning difficulties)
7. Your work is not customer-focused. (but I work in Security)
8. The function you work in is well/over-staffed (full of "fat" cats that need a trim)
9. You don't "fit in" with the 'culture' of your department. (You are sober)
10. Your company could find someone to replace you at a lower cost with relative ease (e.g. going to the bus stop line, rather than hiring a head hunter)

Variables That Could Indicate Someone Is Unlikely to Get Laid Off

1. You've demonstrated your ability to adapt to new strategies. (Flexible as Yoga)
2. You have good relationships with different people throughout your company. (married to the boss?)
3. Your position is cross-matrixed to different leaders. (you are a bigomist)
4. You have a good rapport with your boss, and your boss is regarded highly by senior management. (you still own the negatives from the office party)
5. You work on multiple projects that are critical to dealing with existing business conditions. (your wife sleeps around)
6. Your skills are up to date, in demand and align with the IT organization's current and future needs. (you have killed all the competition in the office)
7. Your company would have difficulty finding someone to fill your shoes. (you are overweight)

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.

Caution! - Downsizing ahead

Are you a Target?

1. You're being left out of important meetings.
Challenge the fact that you're not being invited to important meetings. Your omission may simply be an honest mistake (unlikely). Explain what is missing in their approach e.g. new insight or important perspective. Stress that you will bring added value to the meeting and assure the 'leader' that you will strengthen his position by supporting him, given the opportunity.

2. Your span of control is shrinking.
Be proactive. No one is going to give you anything.

• Hunt down and capture new responsibilities on your own initiative.
• Research possible new product lines.
  
• Propose strategies and tactics to fend off the competitors.
  
• Conduct in-depth analysis of competitors and expose possible weaknesses.
  
• Make your presence known by attending voluntary meetings and corporate outings.
• Volunteer to organise events that demonstrate your wide range of under-utilised talents.

3. Your projects are getting cancelled.
Check that you, your boss and company's priorities are properly aligned. Find the key project that's aligned with corporate goals and get on board. See previous paragraph for finding new projects. Even if it is outwith your job title. Be 'flexible'. Your company is going through difficult changes. Show your willigness to change and grow with it.

4. You have a new boss.
You made the old boss look good so, make the new boss look better. If you demonstrate to them that you're there to make them look good and can achieve their goals, they won't want to let you go, immediately. Not until they find someone faster/cheaper/younger and better connected.

5. Your company's financial statements are bleeding red ink.
Wake up and smell the Java, the company is struggling you and your peers could get laid off no matter what. Start networking now, get your résumé into shape, start blogging and look for a new job.

You will find that your old friends and colleagues will be only too happy to hear from you, because they will be facing similar issues. A bit like rats congregating to jump onto the iceberg before the ship hits it.

• Make your presence felt.
• Raise your Profile.
  
• Be clear in your goals, don't be invisible

Whereas all deceptions requires secrecy, all secrecy is not deception

Leadership; 5 easy steps

Becoming an effective leader has been compared to being in the stock market, in a normal year. You don't make your fortune in one day; you make it daily and weekly, a little bit at a time. What matters most is what you do day after day, over a long period of time. The secret to leadership success is investing in your leadership development, much like letting your financial assets compound. The final result "Leadership Growth" over time.

Are leaders born or made, nature or nurture. The process of leadership is long, complex and has many elements. Respect, dignity, discipline, people skills, vision, emotional strength, opportunity, preparedness and experience are just some of the intangible elements which come into play when talking leadership. Calm assertive personalities.

You can, over a period of time, increase your leadership potential if you can understand and accept the five levels of leadership. They are;

Level One - Leadership From Position
This is the basic level of leadership, square 1. At this level people follow you because they have to. Your ability to lead people is totally geared to your position and does not exceed the lines of your job description or the authority granted to you by the company and your boss. Your security with the company is based on title and position, not talent. They salute the uniform not the man.

To be an effective leader at this level know your job, be prepared to accept responsibility, exercise authority with caution, assess the strengths and short comings of your people, do more than what is expected and challenge people with interesting and tough assignments.

Positional Level is the doorway to leadership and every successful leader must pass through this doorway.

Level Two - Leadership From Respect
At the respect level of leadership people follow you because they want to. The core of Leadership From Respect is that people want to know that you care and understand about them and their viewpoint (empathy). You have to accomplish this before they care about or will consider or value, what you know. People see you as a professional partner, sharing the similar goals and challenges along the way. Leadership will flourish with respect, because respect breeds lasting trusted professional relationships and therefore forms the basis for effective leadership.

To be effective at the respect level, you need to possess (develop) a genuine concern for your people. It is important that you see life through their eyes. Deal thoughtfully and wisely with, apparently difficult people. Cultivate success and make employees successful by setting them up for success. Give them an appetite for it and stand back.

Since leadership from respect is built on professional relationships, it forms the foundation for leadership success.

Level Three - Leadership From Results
People follow you because of what you have done for the company. People admire you for your accomplishments and respect your tenacity. At this point leadership becomes fun. Going to work is fun, work related challenges are seen to be opportunities for a more stable work environment and all tasks have a purpose in the minds of the employees. Good things happen at the results level. Making profit, low employee turnover, higher employee morale and solving problems with ease are some of the items that become evident at this level.

To be an effective leader at this level be prepared to initiate and accept responsibility for growth by developing a purpose and seeing it through to completion. Develop accountability for results, beginning with yourself and ending with your people. Make the difficult decisions that will result in positive long term gains while championing change as a change agent and understanding the need for and the process of change.

Leadership from results is built on admiration and respect for the leader.

Level Four - Leadership From People Development
People follow you because of what you have done for them. It is a leader's responsibility to develop their people to do the work that is expected to contribute future growth opportunities to the company and the people who serve it. People are loyal to you because they see first hand personal growth opportunities for them as well as, the company. Leadership success is underscored by a win - win scenario and a high commitment to success.

To be effective at this level place a priority on developing people. Focus your attention on the fact that people are your most valuable asset and your leadership success will depend on your ability to surround yourself with an inner core of competent people who compliment your leadership style and goals.

Leadership from people development is built on honesty, commitment and loyalty.

Level Five - Leadership From Mentorship
People follow you because they respect you. As a leader you have credibility, you may appear larger than life and your success is shown through a life of proven accomplishments. People seek you out after you have left the company because you have left an indelible mark on the organisation, its employees and its clients. Although less than five per cent of all leaders will attain this level of leadership, it is a level worth striving for.

In summary, everyone can become a good or better leader. It is important to keep in mind that the higher you want to go up the leadership scale, the longer it takes to accomplish results and the higher the commitment will need to be. It is imperative that we know what level we are on with our people, the team and the company.

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.