Small Business News July 2024

Managing Under Performers

How do you help an underperforming employee to turn things around?

Dealing with an underperforming employee can be a real headache for everyone involved. It slows down projects and can create a negative vibe in the team. But don’t worry.

As soon as you notice someone struggling, it’s time to act. Start by documenting specific instances where they’ve fallen short, including any problematic behaviours. Once you’ve got your examples lined up, it’s time for a private, one-on-one meeting. Avoid jumping to conclusions about the root cause. Instead, set a positive tone and ask questions to understand their perspective.

During the meeting, clearly outline the role expectations and the areas needing improvement. It’s also a good time to ask about their hopes for the job and see if there’s a mismatch in expectations. If there is, you’ll need to discuss adjusting those expectations.

After getting to the bottom of things, set some actionable objectives together. Suggest ways they can improve and encourage them to come up with their own solutions, too. Make sure to schedule regular check-ins to monitor progress and provide feedback. Keep records of all discussions in case things don’t improve.

ROI in Marketing

Measuring the return on investment (ROI) on your marketing strategy.

Getting a handle on your marketing ROI is key to understanding what’s working and what’s not. It all starts with setting clear, measurable goals—like boosting sales, increasing website traffic, or enhancing brand awareness. Each goal should have specific metrics that you can track.

Next, keep a close eye on all your marketing costs. This includes direct expenses like advertising and content creation and indirect ones like staff salaries and overheads. Having a comprehensive record of these costs is essential for accurate ROI calculations.

To measure ROI, use a simple formula: ROI = (Net Profit / Cost of Investment) x 100. For example, if a campaign brought in £10,000 in revenue and cost £2,000, the ROI would be 400%. Use analytics tools like Google Analytics, social media insights, and CRM systems to gather data on customer interactions and conversions. These tools help you see which marketing activities are driving revenue.

Remember to look at both short-term and long-term impacts. Immediate sales are easy to measure, but long-term benefits like brand loyalty and customer lifetime value are equally important. By regularly measuring ROI, you can refine your marketing strategies and ensure resources are used effectively.

The Power of a Story

Stories have the power to grab attention, connect with emotion, and persuade us to take action. Storytelling isn’t just a fancy marketing trick—it’s a must-have skill for anyone looking to stand out in today’s noisy market. Stories make complex ideas relatable and memorable.

One big advantage of storytelling is its ability to humanise your brand. Sharing authentic stories about your origins, values, or customer experiences can create deep connections with your audience. This emotional bond often leads to increased loyalty and trust.

Facts and figures are important, but they can be dry and hard to remember. Stories, on the other hand, are engaging and easier to recall. They add context and meaning, making your products or services more relatable. For example, a tech company might use customer success stories to highlight the benefits of their software.

When it comes to making purchase decisions, customers are more likely to buy from brands they can relate to. By understanding your potential customers’ needs, wants, and pain points, you can craft compelling stories that resonate with them and motivate them to choose your brand.

Storytelling is also vital in leadership and team building. Leaders who share their vision and values through stories can inspire and motivate their teams, fostering a shared sense of purpose and direction. This approach enhances communication and drives engagement and productivity.

Integrating storytelling into your communication strategy can help you build emotional connections, enhance persuasion, and inspire your team. This can differentiate your products or services in the market and foster lasting relationships with key stakeholders.

The Evolution of CSR

CSR has developed into a central pillar in business strategy.

Corporate Social Responsibility (CSR) has come a long way from being a nice-to-have to becoming a core part of corporate strategy. Initially seen as philanthropic, CSR is now recognised as integral to sustainable business practices.

Early CSR efforts focused on community engagement and charitable contributions, mainly to enhance public image. However, as globalisation increased corporate influence, stakeholders began scrutinising companies more closely. This shift led to a revaluation of the role of businesses in addressing broader societal issues.

Regulatory frameworks have also pushed CSR to the forefront. Governments and international bodies have introduced guidelines requiring companies to disclose their social and environmental impacts. For example, the European Union’s Directive on non-financial reporting mandates large companies to report on their CSR activities, emphasising transparency and accountability.

Integrating CSR into corporate strategy creates long-term value. Sustainable practices can lead to operational efficiencies, risk mitigation, and enhanced brand loyalty. Environmentally friendly processes, for example, can reduce waste and energy consumption, resulting in cost savings. Companies with strong CSR reputations attract top talent and loyal customers, providing competitive advantages.

Stakeholders now expect businesses to integrate CSR into their core operations. Investors consider environmental, social, and governance (ESG) criteria in their decisions, while consumers demand ethical behaviour from brands. This shift has made CSR a crucial part of corporate governance and strategic planning.

CSR’s evolution highlights its importance in modern business. Companies that effectively incorporate CSR into their governance frameworks not only meet societal and regulatory expectations but also position themselves for sustainable success.