Changing facilities is an important decision to make in the life of the company.

Typically associated with the growth and expansion of a company, changing facilities, despite the hassles, should be viewed with optimism. However, from the psychological point of view, it is always associated with negative concepts such as rupture.

Each company, given its specific culture, should keep workers as knowledgeable as possible about the strategy of change. In this situation, there is nothing worse than maintaining secrecy. General meetings, luncheons, cocktails, newsletters, e-mail, the choices are multiple to explain the new phase that the company will go through. The communication should be as direct as possible in order to avoid changes in the information, so that the transmission of information through the hierarchical chain should be avoided.

It is never too easy to explain the reasons for the change, always highlighting the positive aspects such as the favorable economic situation of the company and the need to adapt to the market and customer requirements. Factors that imply expansion.

But beware: you should not give wrong expectations.

Step 1 – Plan for change

The first and only basic rule in changing a company’s facilities is planning.

There are several criteria to consider when a company plans a change of this type:

• Volume of change. It’s one thing to change two people, another is to change 250.
• Destination. A change can only be successful if the destination is fully prepared. It is pure fiction to think that one can change and then gradually adjust the new installations, because one is eternally in poor condition.
• Timing: Deciding on the best time to make the change is almost impossible. Firstly, it is an exercise in pure divination because of the many setbacks that arise in the execution of the works. And then why there is not something like “the best time to make a change”. Holidays are not the best time because there are many workers absent, and the end of the year also not, because it coincides with the closing period of accounts. Conclusion: “the best time” is when the new facilities are ready.

Step 2 – Appoint a Project Leader

In order to deal with all the logistics of change the company must appoint a project manager, a step that must be followed in both small and medium-sized companies.

The person in charge of the project is someone:

• With increased availability for, for a month or two, think about the change. In a larger company, it is not feasible to manage and plan a change with the day-to-day concerns.
• Responsible, moderator, dynamic and serious
• With management capabilities
• With own or delegated authority of the Administration
• That it can be assisted by specialists and consultants, in particular for the computer, electrical and telecommunications aspects
• With a controlled but available budget for change

If there is no person with these characteristics in the company, then it must be contracted from abroad. This may prove to be the most accurate decision, although at first glance it may not be the ideal solution as it is the most expensive.

Step 3 – Determine who moves to where

In a process of change the first step is not to hire an architect, but to define who will change, where and how to regroup people. Only then does the architect enter because it is not his responsibility to define “who changes where”, decisions that involve organic and functional criteria of each company.

The housekeeping of the company staff has, in part, to do with status. It is necessary to define who has the right to cabinet, who occupies the noblest areas, with more light and opt or not for an open space.

The distribution obeys rules of common sense and logic, keeping in mind that one of the objectives of the change of facilities is to increase the profitability of the company. The direction is with the noblest areas, that is, the private offices or the brightest and quietest areas of the office, if you opt for an open space. And those who work closest to the steering should be positioned close to it. The location of meeting rooms should not be too far from this area.

Grouping people by teams or sections according to the functions performed can also help increase productivity. At the outset, the possibility of increasing the number of jobs should be considered without having to restructure the entire organizational structure.

The hierarchy of places obeys criteria such as:

• Light
• Quiet
• Space
• Accessibility
• Furniture

But it is the functional aspect that should be privileged and not the “privileges” of each person.

A small leisure space where workers can have coffee or smoke a cigarette in the case of a “green” office and ease the tension at work will help make the whole office quieter, thus creating a better working environment.

The architect, in possession of the information of “who moves to where”, will manage all the remodeling, taking into account the function to give to the space, but always under the supervision of the project manager. It is to this unique interlocutor that the architect must present options such as the type of furniture or coatings.

The first problem arises at this point because the architect’s suggestions usually reach values ​​higher than the initially assigned budget.

Step 4 – Install the technical infrastructures

There are three infrastructures to take into account: electricity, computer and telecommunications. Eventually, one can add the air conditioning.

• Electrical energy: As regards the installation of electricity, it is usually concluded that a sufficient number of electrical outlets have not been installed and that the existing ones are not in the right places. Therefore, it is advisable that the project is done by specialists. Again, it is critical to have the prior definition of “who moves where” so that the outlets are in sufficient numbers and in the right place. In addition, do not forget to have general purpose outlets for photocopiers, water or coffee machines and even the cleaning vacuum cleaner. A minimum of four sockets are recommended per workstation, ideally six, to avoid, for safety and aesthetic reasons, triple plugs and extensions.
• Telecommunications: The first step is to request external telephone or data lines. All telecom operators take some time to install them. So the project manager has a clear idea of ​​”who moves where” should request the lines to the operator because he already knows where they will end. When it is decided to change facilities normally it is because the company is expanding and therefore will have to review the telephone exchange. If the company decides to acquire this equipment, it must immediately negotiate with the supplier the resumption of the old plant. The control unit must be switched on and ready to operate before the first person arrives. The task is not difficult, it just has to be planned. If there is not a new telephone exchange it is recommended that the change be made at a weekend, the center of the last elements leaving the old installations and the first to enter the new ones because its installation takes some time, especially if there is many extensions. Telephone and computer communications networks are closely linked, with the same type of outlets and cables. Non-pre-planning will involve separate and much more expensive independent wiring harnesses. At present, there are technologies available at the level of structured cabling, which allow for undifferentiated use for telephones or computers and which include compatible sockets.
• IT: It is important to build a good computer architecture that may imply, depending on the needs of each company, the acquisition of new servers. In this area it is essential to hire specialized personnel in the construction of computer networks, if the company does not have these resources. The central servers and systems are the latest equipment to come out and the first to come. Depending on the complexity and number of servers changing these equipments should be planned for the night or the weekend. In 90% of cases this equipment can only be stopped 24 hours. If the activity to which the company is dedicated does not allow its termination at any time, it is necessary to opt for the temporary installation of replacement equipment until the definitive one is installed.

Step 5 – Choosing a Moving Company

The shifting company must be hired to do the whole service because the costs are not too high and the remedial solutions turn out to be disastrous.

The choice of the removal company must take into account the following criteria:

• specialization in company changes, with experience in the change of computer equipment
• presentation of references of work already done
• verification of the identification of all material, ensuring that nothing is forgotten, complete transportation and check delivery in the right place
• existence of insurance

The project manager must draw up an inventory of the material to be transported, check the condition after delivery and do not hesitate to file any claim related to the change.

Step 6 – Change staff

Once the facilities are fully ready then one must begin to organize the people change.

The first conditioning is the impact on the service. It is necessary to evaluate the maximum time that each worker / service can be immobilized and to decide when to make the change: days of week, weekend, hours of services or after the file.

A planning matrix should be developed to determine who should change first and develop a contingency plan for people on vacation, absent on duty or sick.

The detail is the word of order at this stage. Each worker has to transfer three things, each deserving a different treatment:

• Individual belongings: At least 48 hours before the date of the change, workers must be provided with crates, tape and markers. Each one has to identify their things with three basic information: name, job post where it comes from and where it goes. From this moment the shippers can begin to transport the crates that must be deposited in the exact place in the new facilities.
• Computers: Ideally, you should turn off your personal computer (PC). In the background it is about disassembling four pieces: body, keyboard, monitor and mouse and eventually the printer. It is important to remember that copies of the most important data must be made. The PCs are packaged by the personnel of the change, after being properly identified by its users.

References

• Toad – Search for transport; www.sapo.pt/empresas/servicos/transportes/mudancas/
• Yellow Pages Internet; www.paginasamarelas.pt
• AEIOU – Transport research; www.aeiou.pt/assunto/inicia?239

Author: PME Business

Managing stocks is an issue that is often neglected in industrial and even commercial enterprises. However, this is a fundamental issue as a good stock management can make the difference between the company’s viability and serious financial difficulties. It is not by chance that the Japanese have paid close attention to this problem and invented such well-known systems as Just-In-Time (JIT) or Kanban, among others. Even a small business has to manage a large number of stocks. It is therefore necessary to find a fair balance between the costs of managing the different stocks and the risk they incur if there is a break.

Step 1 – Develop an Operations Plan

An operations plan is an important document for any company that has to buy raw materials. It is a document detailing and for each operation or task to be performed in the company, the following:

• Your description,
• The number of people directly involved,
• The time required to perform it,
• The materials used,
• The precise equipment and machinery.

To these elements, two items should be added that have to do with evaluation and control:

• How to quantify results (output per unit of time, quality, etc.)
• How control is performed

It is on the basis of this document that the entrepreneur must evaluate his method of production.

Step 2 – Make a material needs plan

Depending on the operational plan, it is now necessary to evaluate all material resources, ie not only the raw materials from a classical point of view but also all the other components, which will be necessary for the execution of the various tasks, namely the elaboration of products to be sold on the market.

In order to prepare the material requirements plan, it is necessary to base the plan of operations described above, but also on the structure of the product and the stock policy chosen by the company.

The product structure

The structure of the product is embodied in a document that indicates with extreme precision all the components that integrate each product to be manufactured. It is easy to understand that this document can be extremely extensive. But that’s not all. It is also necessary at this stage to evaluate all alternative or alternative materials that can be used, depending on:

• Acquisition costs: it is necessary to evaluate how much it will cost to acquire large volumes of a given raw material and if the company has ways of supporting it financially, taking into account the payment term demanded by the supplier.
• Quality: you must know to what extent an inferior quality will not affect the structure of the product, its robustness and also its image in the market.
• Availability: It is necessary to know how easily the supplier can make the material available under both normal and exceptional conditions.
• Suitability to the product: It is essential to know if the replacement material adapts to the product without creating mismatches.
• Storage conditions: finally, managers have to assess whether the stocking conditions of the new material are very different in terms of conditioning, space, etc. And the costs or cost translation that entails.

All this must be done according to the company’s strategy: for example, is the market that the company wants to achieve more sensitive to quality or price?

At this stage, it is necessary to define, in relation to the materials themselves:

• Their characteristics from a physical and chemical point of view
• Operating conditions
• The required dimensions
• The maximum permissible tolerances not to cause problems in production

And finally, no longer in relation to the physical characteristics of the materials but to their handling, it is important to mention: • How is the packaging and the way of shipping done,

• What are the reception conditions of the materials,
• How is the quality of materials checked?

The stock policy

It is the stock policy that will define the level of stocks that the company intends to adopt. Of course, this level will depend on many factors, internal and external to the company. To know:

• Delivery times agreed with customers
• Risk-prone: storing material is expensive but risking a stock breach with dissatisfied customers is a very high risk to the company
• Relationships with suppliers: a good relationship and a real commitment on the part of them as well as their relative physical proximity may be factors that reduce the need to have a high stock. In the extreme case, the company can adopt a policy of just-in-time, which tends to have zero materials in stock knowing that it can receive from its suppliers everything they want in a minimum time.

Step 3 – Choosing suppliers

Choosing suppliers is a critical phase for many businesses, especially when they are in the launch phase. Choosing a supplier hurriedly and closing a deal with it without evaluating the market may be a mistake that will cost the company in the future. Thus, once the necessary materials are defined, it is necessary to evaluate the suppliers of each of the materials in several aspects:

• Its weight on the market
• The quality of materials
• The level of service
• The prices charged
• Terms of payment
• Delivery times
• Seriousness of behavior
• Integration into economic groups.

Once these elements have been identified and some of the potential supplier companies have been excluded, it is important to visit suppliers in order to assess, as far as possible:

• Your actual production capacity
• Production quality control methods
• The technical means and age of equipment
• Human resources
• Manufacturing methods
• The possibility of extending the
• The organizational structure
• The financial situation.

A more analytical method for evaluating potential suppliers involves:

• Define the key criteria (quality, price, service, etc.)
• Assign weights to key criteria
• Choose modes of quantification (for example, quality can be the number of defective parts in a thousand)
• Calculate the score of all potential suppliers and choose the one that has a higher value.

Once the suppliers have been chosen, it is time to sign the supply contract, with the duties and obligations of both parties.

Two final notes:

• It is essential to establish a partnership relationship with the supplier, so that he is not just a seller of raw materials but someone who is also committed to the success of the client company. More and more business relationships go through this partner side and not just seller and buyer
• It is also important to leave the door open to other suppliers so as not to be dependent on one, which makes the balance of forces too unbalanced to the supplier’s side. Staying dependent on a vendor is the worst that can happen to the independence and manageability of the buying company.

Step 4 – Choose the quality of materials

The temptation to avoid at all costs is to buy cheap. Not spending too much on purchases of raw materials can be a strong temptation especially for businesses in the launch phase but can be fatal to the development of the company and its affirmation in the market. It is often better to delay start-up or delay the break-even point, sales volume that allows you to recover fixed costs, and to produce a product that has quality in the eyes of customers. A strategy of putting the product in a low segment (average perceived quality and low price) is perfectly defensible, if there is a market for it, but such a decision makes it unfeasible, or at least makes it extremely difficult to attack later segments of the market, especially using the same brand. Thus, some Japanese car manufacturers, whose models were considered reliable but cheap during the 1970s, preferred to change the brand of their cars to attack the segment of luxury cars.

Step 5 – Assess the key factors for the stock policy

Having too few stocks represents a very high risk for a company. Being unable to provide resellers and end customers can seriously damage the company’s image by creating serious difficulties for them. On the other hand, having excess stock represents a capital immobilization that is difficult to bear financially. For this, the company has to define very clearly which stocks policy it intends to adopt. The decision on the level of supplies that the company must have depends on three factors:

• The duration of the product cycle: the time it takes to make a product or service available. Includes purchases of raw materials and their delivery time, manufacturing and control.
• Sales forecasts: the company will have to make as detailed forecasts as possible of expected sales volume. This forward-looking document should take into account past sales volumes, possible seasonal effects, the effects of economic developments on sales, etc.
• Delivery times: Delivery times agreed with customers indicate the time between the receipt of an order by the customer and actual delivery: this takes into account the product cycle as well as the transport.

Step 6 – Calculate the security stock

The security stock represents the stock additional to normal stocks, which minimizes the impact of an unexpected increase in demand by customers and an unforeseen delay in the supply of suppliers, ie an increase in delivery time. Its main purpose is to avoid a stock break.

The stock of security is the quantity of products equivalent to the number of days of sales (number of products sold per day in average) to be considered in order to be able to satisfy the orders in case of failures or delays by the suppliers.

There are several ways to calculate the security stock:

• Simple formula: It depends on the variation of the average monthly consumption for each period; this formula is used for companies with a strong seasonal component in sales;
• Formula Vicente / Santos: Depends on the foreseeable increases both in consumption and delivery times; leads to a security stock between 10 and 20% higher than the average monthly consumption;
• Battersby Formula: Depends on the breadth of sales in certain periods (months);
• English formula: It depends on the average monthly consumption, the delivery period and the service level constant (ie the inverse of the allowable break, a value defined by the company).

Step 7 – Manage Stock

As has been said, the number of raw materials that an industrial enterprise, even small in size, has to own, and therefore have to manage, can be extremely high. But not all stocks need to be dealt with at the level of purchase and storage with equal care. Thus, the ABC method can be applied, which consists of the following:

• Calculate the financial value of each existence, ie the unit price times the annual purchases by the company;
• Sort inventories according to the financial value previously calculated and calculate the accumulated value;
• Divide stocks as follows:

A: represent up to 80% of the financial value: they require very careful treatment

B: represent up to 15% of the financial value: justify some treatment

C: represent up to 5% of the financial value: do not justify treatment.

It should be noted that in class A, less than 10% of the articles in class B will normally contain about 20 to 30% and in class C of 70 to 80%.

Bibliography:

• Costa, Horácio; Correia Ribeiro, Pedro; Creation & Management of Micro-Businesses and Small Businesses; Lidel, 1998
• Cavinato, Joseph L; Kauffman, Ralph G .; The Purchasing Handbook: A Guide for the Purchasing and Supply Professional; McGraw-Hill; 6th Edition; 1999
• Arnold, J. R. Tony; Chapman, Stephen N .; Introduction to Materials Management; Prentice Hall; 2000
• Reis, Lopes dos; Stock and Purchase Management Exercises; Modern University; 1996
• Schroeder, Roger G .; Operations Management; McGraw-Hill

Author: PME Negócios

At present, quality certification is no longer a distinguishing mark capable of making Portuguese SMEs known notoriously, but it is still important. On the contrary. In fact, today it is an ISO 9000 certified company and already an obligation for most companies. At least for all those who export their products. More and more foreign clients require such certification to start negotiations. From the point of arrival to excellence, certification has become a mere starting point for simply having the right to be looked at by customers across borders.

Step 1 – Making the decision to certify the company

Once it is decided that the company wants to obtain a quality certification, it is necessary to start preparing the organization immediately for this long and often difficult task. This initial preparation is divided into several parts:

• Establishment of objectives: definition of what is intended, certification according to the norm NP EN ISO 9001: 2000, and explanation of the implications for the company.
• Scheduling: setting precise dates to achieve the goal in a timely manner. Without this step, it is likely that the process will last forever since those responsible for implementation will often be taken over by the day-to-day tasks, leaving the certification for later.
• Resource allocation: A quality certification action consumes a lot of time and energy for the organization. And so it is necessary to rigorously program the whole process at the level of both financial and human resources and spaces for the task.
• Choice of a manager: it is important that there is a manager, who may not be the general manager, who is in charge of managing the entire process as the engine of all the transformation that will operate in the organization. He must be an enthusiastic and determined person with broad powers in the company and who knows how to manage very well the diverse sensitivities that exist in the organization.

Step 2 – Identification of customer needs and expectations

In simplistic terms, a certified company is one that is able to satisfy its current and future customers, being able to change their products and services to meet customer requirements, exceeding their expectations. It is therefore necessary to conduct interviews with key clients, to understand what they think of what is being sold to them, and to tighten relations with them so that they function more as partners than as buyers at the end of the process. Your opinions are important and you need to hear them.

Step 3 – Definition of quality policy and objectives

Standard NP EN ISO 9001: 2000 defines eight principles of quality management that must be adopted by the top management of the companies that want certification. These are the guidelines. Each company, at this stage, must see how it can adapt them to its organization, analyzing the transformations necessary to put them into practice.

• Customer focus
• Leadership
• Involvement of people
• Process approach
• Management approach as a process
• Continuous improvement
• Approach to evidence-based decision making
• Mutually beneficial relationships with suppliers

Step 4 – Message transmission within the company

This point is fundamental. Such a transformation can only be done if there is real involvement by all the people involved in the project, ie all employees of the company, from the doorman to the maximum person in charge. This transmission goes through training to all the staff of the organization to achieve their involvement and commitment in this mission. This training should be done in stages. First the top management, which in turn will transmit it to its subordinates, cascading, always under the supervision of the person in charge of the quality of the company.

Step 5 – Analysis of existing processes in the company

Before you can modify anything, it is necessary to make an exhaustive survey of all the processes used in the organization. In particular, it is necessary to know how the flow of information in the company evolves as well as how decisions are made, whether routine, operational or strategic. This gives a cartography of the multiple processes of production, transmission of information and decision-making that are used in the company in its day to day. The collection of documentation for this purpose represents a large part of the work at this stage of the process.

Step 6 – Establishment of the new model

It is here that one decides how the company will function in the future, so that it has implemented a true quality management. One of the essential points of this definition is the systematization of all the processes so that they are not owned by one person but by the whole organization. So if for some reason the person responsible for one of the functions, for example the provisioning, fails or is absent, there will be a set of strict rules allowing the other person to take his place without the quality being affected. The most important document produced during this phase is the company’s Quality Manual, document that explains all the procedures that the company follows in order to have management that is truly focused on quality.

Step 7 – Implementation of the necessary activities

Since the changes to be made are defined and approved by top management, they need to be put into practice. Often this is the most time-consuming step because, among other things, it is necessary to overcome some resistance to change by people and departments within the company. Here again, it is necessary for the permanent intervention of the person in charge of quality, in order to explain what is wanted and above all the reasons for the change and how it will improve the work of each collaborator. This is how to motivate everyone involved in each of the company’s levels.

Obviously here the actions to be taken will depend on many factors and it is not possible to establish a detailed list of all there is to do. The actions will essentially depend on:

• The level of preparation that the company already had prior to the decision to obtain certification
• Of the branch of activity
• The basic training of your workforce
• Company size
• The type and volume of your contacts with the outside: clients (national or international), suppliers, society in general, etc.
• Others

Step 8 – Internal Audit

After the system has been running for some time, very variable depending on the company, it is useful to carry out an internal audit to see if the quality management system is actually working well. At this stage, it is normal to find defects in the processes and will need to review some of the decisions previously made in order to improve the quality system established. The process then goes back again so that the procedures are redesigned, where appropriate, and new training is given to all company employees affected by the changes. It is not worth advancing to certification without several successful internal audits; Otherwise the company will only be wasting time and money.

Step 9 – Selection of the certification company

There are about ten certification bodies in Portugal at this time. The factors that should help the choice decision are several:

• Price: there is some negotiating margin here; in addition the value will depend on the number of people in the company and the geographical distribution, or location, of the various units of the company
• Follow-up during the application process: it is advisable to carry out a previous audit, carried out by the certifying entity and which has no value but allows identifying any non-compliance with the clauses of the Standard
• Availability

Step 10 – Application process

The company must provide the certifying company with a series of documents, namely:

• Company Quality Manual
• List of Quality Assurance procedures
• A completed questionnaire
• Flow chart of the most important manufacturing phases, indicating the various points where the controls are carried out
• Listing of documents that the various users / employees of the company use in the quality control in the various points of the processes
• Description of all measuring and testing equipment
• Organizational chart of the company, which specifies in particular the various responsible for quality and how these are integrated into the hierarchy of the organization
• Schemes for access to all company facilities

It is also at this stage that the payment of the investigation, in the order of 200 contos, is verified.

Step 11 – Audit by the certification body

This is an in-depth audit at all levels of the company, but it usually does not take more than three days. In the end, there is one of two situations:

• Approval: the company complies with all clauses of NP EN ISO 9001: 2000. In this case it is the certification entity itself that informs IPQ, the national body that manages and develops the Portuguese Quality System. The company does not have to do anything other than receive the certificate.
• There are nonconformities: situations that are not compatible with the Standard have been detected and, therefore, the company will have to respond, changing what is necessary in certain points, considered less good. Subsequently, after a few months, there is a new audit, called a follow-up audit, which will only address the requirements that were not in order.

Step 12 – Evolution and improvement of the quality system started

A certification process culminates in obtaining the certificate, valid for 3 years, but the quality process never ends. Quality is a permanently unfinished work and it is a mistake to think that the company can rest on the day it finally gets the desired diploma. Manage quality and make continuous improvements and an obligation. Even because a certification is not eternal. A follow-up audit is performed annually. At the end of the third year, the certifying company performs a further, renewal audit to see if the company continues to respect the clauses and whether it has improved.

Bibliography

• Laudoyer, Guy; ISO 9000 certification; 2000; Organization
• Lamprecht, James L .; ISO 9000 for Small Business; 1996; McGraw-Hill
• Lamprecht, James L .; Quality and Power in the Supply Chain; 2000; Butterworth-Heinemann
• Monin, Jean-Michel; The certification qualité dans les services; 2001; AFNOR
• Paiva, Ana Luísa; Total Quality Management and Business Certification; 1996; Portuguese Catholic University

References • IPQ – Portuguese Quality Institute; www.ipq.pt

• APQ – Portuguese Quality Association; www.apq.pt
• APCER – Portuguese Certification Association; www.apcer.pt
• BVQI – Bureau Veritas Quality International Portugal; www.bvqi.com
• DNV – Der Norske Veritas; www.dnv.com
• EIC – International Certification Company; www.eic.pt
• TUV Rheinland Portugal; www.tuv.com
• LRQA – Lloyds Register Quality Assurance; www.lrqa.com

Author: PME Negócios

Sooner or later, any brand or product on the market needs publicity, to increase demand and avoid losing the market or to stay alive and healthy with the consumer. Communication techniques are a powerful tool and can influence the attitude of consumers towards the product / brand. Advertising campaigns mainly serve to gain or maintain a leading position, as well as to differentiate and increase the level of awareness of products or services in an increasingly competitive market. Advertising is thus an instrument to help businesses sell while enabling consumers to increase product knowledge and distinguish them.

Step 1 – Know the concepts of advertising

Advertising is a means of promoting mass sales. In this sense, you must:

• to interest,
• persuade,
• to convince,
• lead to action.

Advertising, based on the knowledge of human nature, must influence consumer behavior. The more you know the needs, the desires and the impulses, the easier it becomes to put into practice an advertising strategy. For an ad to fulfill its mission, leading the consumer to acquire the advertised product requires the call to a need, arousing or creating the desire.

Thus, advertising:

• It is a means of making known a product, a service, a brand or a company
• Its main objective is to awaken to consumers the appetite for the product advertised, or to create / elevate prestige to the advertiser
• You must adjust the message to the target consumer
• Must lead to the act of purchase

Step 2 – Determine Advertising Goals

Advertising achieves the following objectives:

• Inform: advertising allows to know the characteristics of the products, as well as to increase the levels of knowledge about them. Content, forms of use, locations and acquisition and technical assistance constitute some of the useful information for the consumer that advertising should provide.
• Increase awareness: the level of knowledge about a product / brand increases significantly the chances of acquisition. The disclosure of the marks allows potential consumers to know their existence in the market, increasing their notoriety.
• Reducing the purchase effort: the greater the knowledge about an easier brand becomes, faced with the range of existing products, make a decision.
• Influencing the purchase decision: this is certainly the ultimate goal of advertising.

Step 3 – Do the campaign briefing

The implementation of an advertising campaign results from a marketing plan, which includes other important instruments that encompass the communication mix:

• public relations
• sales force
• promotions
• direct marketing

The campaign aims to meet the objectives initially proposed in the marketing plan vis-à-vis the product / service.

Since most companies do not have departments dedicated to carry out all phases of a campaign, the first step is to select the agency responsible for preparing the advertising brief. This selection procedure may be done by direct award or by tender.

Depending on the goals set by the advertiser and the available budget, the agency is responsible for outlining the campaign baseline, taking into account the following:

• Product
• Characteristics and needs to be met
• Positioning in the market
• Competition
• Product and competition market shares
• Key strengths and weaknesses of the product in relation to the competition
• Marketplace
• Dimension and characteristics
• Segments
• Seasonality
• Communication objectives
• Level of notoriety
• Quota and sales volume in the company segment
• Target definition
• Characterization of distribution and price policies
• Schedule
• Setting the timings for the proposed objectives
• Definition of actions to be developed
• Budget
• Quantification of the total available for the campaign

In addition, advertising planning should take into account:

• Market knowledge
• Analysis of the reactions
• Consumer buying habits
• Actual knowledge of the product relative to competitors

Step 4 – Establish the creative strategy

Once the campaign briefing is approved, the agency begins the creative process based on the idea defined by the advertiser and the budget available. This process involves the design and processing of messages and the selection of the respective media:

• Locution
• Photography
• Posters
• Jingles
• Movies

In the creative process, several agency teams are working closely with each other. Under the baton of the creative director, an art director, a graphic designer and a copywriter, together conceive the advertising message.

In general, the message revolves around:

• Benefits to customers: the attributes that the product or service present to the target customers are communicated.
• Functions of the product: the market is informed of the characteristics and performance of the product in its consumption or use, in order to maximize customer satisfaction.
• Positioning: The message also seeks that your targets get a strong and clear impression of the product against the competition. The differentiating aspects that seek to gain space in the market and in the minds of consumers are highlighted.

Step 5 – Select the means

The selection of the means to be used in an advertising campaign depends on the targets that are to be attained and the type of message to be transmitted. Not least is the budget, which can often condition the use of certain means, especially those that require more investment. Here are the main advantages and disadvantages of various means.

• Television: allows a high degree of penetration and rapid results but implies high budgets and long term planning.
• Radio: allows for more precise segmentation and high repetition rates on a reduced budget but the lack of image and the difficulty in capturing the attention of the listener are disadvantages of this medium.
• Outdoor: it allows for good geographic segmentation and great exposure besides being a relatively flexible medium but it is not advisable for sophisticated messages and it is not cheap.
• Written press: it allows good segmentation depending on the magazine or newspaper chosen and implies a longer exposure time but the life span is short and has a low level of coverage.
• Internet: the great advantage is the possibility of interactivity and one-to-one communication but its degree of penetration is still small in Portugal.
• Mailing: allows high segmentation and personalized contact but has high costs and a short service life.
• Catalogs: allows segmenting the target but is expensive.
• Transport: Allows for high exposure, attracting attention more easily but it is difficult to change the message and formats.

Step 6 – Analyze the results

The results of an advertising campaign can be evaluated by impact and effectiveness. The impact is assessed according to the following:

• Memorization – determine, on the one hand, the number of individuals in the target audience who remember that they have seen or heard the campaign, on the other hand what elements in terms of images or written messages they remember.
• Attribution – in the group of individuals who remember the campaign, how many correctly identify the product that was the subject of the campaign.
• Understanding – aims to assess to what extent everyone who was in contact with the campaign really understood the main messages.
• Credibility – of the people who understood correctly the message, how many adhere?
• Acceptance – you want to determine how many people liked the campaign and some of its components, such as characters or aesthetic and graphic issues.
• Incitement to purchase – aims to assess to what extent the people exposed to the campaign consider it convincing and are willing to buy the product advertised.

To evaluate the effectiveness of a campaign, in turn, two methods are used:

• “Before-after” surveys – aim to measure attitudes and behaviors that the campaign seeks to change. As the name implies, the first phase occurs before the start of the campaign and the second phase after it ends.
• Tracking – it is a question of permanently measuring the evolution of a brand / product’s image and its main competitors. Based on a questionnaire that is the same for everyone, you interview or question 100 or 200 people per week during a pre-established period.

Glossary

• Media Agency – A company that provides services to advertisers, in the areas of research, planning, negotiation and media buying.
• Advertising agency – A company that provides services to advertisers in the sectors of definition and implementation of communication strategies, creative development and specialized support.
• Audience – Set of individuals who contact an advertising medium.
• Audiometry – Television audience collection system, based on an electronic system connected to TV sets.
• Circulation – Total sales, signatures and offers of a printed publication.
• Cost per thousand contacts – Investment needed to impact one thousand individuals in the target group. It results from the division of the total cost of the plan or insertion by the total number of contacts achieved by the plan or insertion, times thousand.
• Advertising medium – Advertising media of the same kind. The press and / or billboards belong to the print media, while radio, television and the Internet are part of the audiovisual media.
• Audience or target – Set of individuals to achieve in a communication process.

Bibliography

• Brochand, Bernard; Publicitor; Don Quixote
• Lendevie, Jacques – Mercator 2000 – Theory and Practice of Marketing; D. Quixote; 2000
• Pires, Hannibal; Marketing – Concepts, Techniques and Problems of Management, Editorial Verbo; 1998
• Gomes, António Silva (coordination) – Publicity and Communication; Text Editora 1999
• Roman, Kenneth – How to Make Advertising – A manual for the advertiser; Editorial Presença

References

• APAN – Portuguese Advertisers Association; www.apan.pt
• Advertising Directory: www.pub.pt
• E-Marketing Portal; www.marketing.co.pt
• MKT – The marketing portal; www.mktonline.net

Author: PME Negócios

The era is past when it was enough to make a product or service and put it on the market for customers to appear. From a product-based design, a customer orientation was developed. Knowing what customers want at any time, what their preferences and tastes are fundamental questions for any manager.

But being able to anticipate what the latent needs of these customers will be is even more important and more profitable for the company. There is a method that allows to do this same and it is called CEM – Conception to Listening to the Market. Conceived by Japanese professor Shoji Shiba, “CEM organizes the process of designing a product, or a service, from the operationalization of an array of expectations collected through a representative sample of precursor customers,” says Mário Ceitil. The starting point is quite obvious: a product will be considered quality if its design responds to the diagnosis made by its current or potential customers.

This notion of listening to customers, that is, the continuous effort to bring the supply of goods and services more and more to the business that truly interests the customer, can not be separated from the concept of Total Quality. It is that the quality, in terms of ISO 9000 and certification, corresponds to giving the customer what he wants, neither more nor less. It consists of meeting your expectations. And for this you need to listen to it. The professor of the University of Tsukuba established a method to obtain it.

Step 1 – Capturing Customers’ Voice

This is the initial phase of the whole process. It will depend a good development of all the action and the results and utility of this. It is based on the idea that it is necessary to go and talk to customers. It is not enough to carry out analytical studies, it is also necessary to visit who, in fact, is, or is, using the products or services. Thus, the visits to be made to the clients and the interviews that will provide the essential information should be organized. An important preliminary step is to generate an attitude of listening to customers in the company’s employees. This first step can be divided into four stages:

1 – Define the clients to contact

The data to be collected are not quantitative but qualitative. So, choosing the right people is more important than arranging a large number of clients. Usually 12 to 20 people will be able to collect about 70% of the most important information. On the other hand, these customers should be representative of:

• the different market segments
• positioning against the product (satisfied, dissatisfied, lost)
• positioning in the face of market trends (precursors, backward, followers)

2 – Organize the visit

Before you begin, you need to be clear about what the intended objectives are. In relation to the market:

• meet customer expectations
• collect information about competition
• accentuate the centering effort on the customer.

Or these actions may aim to understand:

• How the products are used
• How Distribution Works
• What are the decision mechanisms on the part of the client
• What elements lead to customer loyalty

It is also necessary to not forget the essential point of the choice and training of the interviewers. These should be company employees, not necessarily the marketing area, and be good listeners.

3 – Conduct the interview

The most important point at this stage is that the interviewer should not be guided by a procedure that is too rigid but open-minded, collecting as much information as possible, even if not directly related, using luck and also trusting in intuition. It is important to remember that the company does not want quantitative information but rather qualitative information. The conversation must therefore be oriented in this direction and be cordial. The role of the interviewer is not to contradict the client, even if the client is not right, nor sell the product, nor interrogate the client. It is a simple gathering of information. Also note the presence of the scorer: person of the company that attends the interview and is taking notes. This avoids recording the conversation, which is often not appreciated by the customer.

4 – Transcribe the information collected

Once the interviews are done, it is necessary to organize and triage the information, which is done in three steps:

• Write on labels all phrases spoken by the customer
• Draw the images described by clients (this phase allows you to identify which key ideas are most important and select them)
• Construct a structured diagram representing the customers’ voice.

Step 2 – Identify customer expectations

At this stage, the important thing is to transform the voice of the clients, gathered through the interviews, into the expectations of those same clients. It is necessary to translate the desires and disparate opinions of the clients contacted into useful language for the company. It is necessary to transform the voices of the clients in needs and precise expectations, to select the most significant ones and to present them.

Translate into expectations

In this sub-step seven recommendations should be taken into account:

• Formulate negative sentences into positive affirmations
• Choose phrases that reflect multiform thinking without getting stuck in numbers
• Choose specific and concrete words instead of notions that can be interpreted in various ways
• Expressing needs rather than a specific solution (eg equipment)
• Do not go into details but express the important
• Use verbs in the present tense
• Use concrete expressions and not abstract concepts.

Often, at this stage, it is necessary to move forward through successive approaches, and it is not possible to arrive at the formulation of final objectives immediately. Thus, it is necessary to:

• Select the most important expectations
• Present the expectations in a structured way: it is convenient to draw up a diagram, often in the form of a tree in order to have an overview and establish a hierarchy.

Step 3 – Analyze customer expectations qualitatively

Once customer statements have been transposed into concrete expectations, it is time to look at them to see if and how to respond appropriately. To this end, a series of indicators is created. These are intended to identify the functions of the products or services to which the customers give more value or importance, and may consider them mandatory, attractive or indifferent. For this it is necessary to prepare a questionnaire and submit it to the clients.

This step involves several steps:

• Prepare a questionnaire: for each client’s requirement, it is necessary to create a question that evaluates each customer’s reaction to the presence or absence of that function.
• Choose the recipients of the questionnaire: they should be representative of the diversity of clients
• Prepare the application of the questionnaire: schedule, assign responsibilities, explain.
• Test the questionnaire: pass the questionnaire to two or three people
• Apply the questionnaire: send the questionnaire to the clients and collect the answers
• Group the answers: according to the dominant expectation
• Analyze responses: This stage includes brainstorming sessions to define the specifications that can meet customer expectations, build diagrams, analyze the relevance and feasibility of measures.

Step 4 – Define product / service strategy

The company now has all the elements it needs to make strategic decisions, a set of customer expectations and the indicators that characterize these expectations. In this step, you need to:

• Build the quality framework: This framework is composed of a matrix that combines expectations (the characteristics that customers value) and the indicators (measurements or presence of important elements) and that allows analyzing how these same indicators measure what is important fact, ie the expectations of customers. At the intersection of each expectation with each indicator is a number that indicates whether the indicator is a good measure for the expectation.
• Focus on strategic expectations: The above table allows you to identify the most important expectations. At this stage, another table is drawn which includes the positions of competing companies. The analysis of competitive bidding allows one to choose strategic expectations.
• Formulate the strategy in a sentence: It is always helpful if each strategy is formulated in a clear, understandable sentence for the client, and whenever it translates a client orientation.

Step 5 – Need the concept of the product / service

The last step of the CEM – Conception to Listening to the Market, could not fail to be the choice and definition of one or several new products or services to be made available to customers. This step can be divided into three phases:

• Decompose and regroup
• Decompose the phrase that defines the strategy in several elements
• Place each idea on a sheet of paper, illustrated by a drawing
• Write a sentence for each drawing
• Generate more ideas from the phrase, in groups of two
• Make selection
• Moving from ideas to solutions
• Identify key concepts and ideas associated with the chosen solution
• Define new solutions
• Make another selection
• Choose the final solution
• Compare the solutions with the defined strategic orientation
• Compare the solutions with the demands of quality through a matrix that weighs the solutions according to the expectations of the clients.

This is the end of the process. Solutions are chosen if they meet the strategy defined at the outset and if they have every chance to meet customer expectations. Let us not forget that this is the main point that served as a guide to this whole process: satisfy customers. And for this, nothing better than listening to them. The next phase no longer concerns the CEM – Conception to Market Listening, but matters related to the supply of materials and manufacturing (in the case of new products) and to the commercialization.

Bibliography

• Shiba, Shoji; Conception to Market Listening; Editions Sílabo; 2001
• Shiba, Shoji; Walden, David; Four Practical Revolutions in Management; Productivity Press; 2001

References

• CQM: www.cqm.org/4prim/
• APQ: Portuguese Association for Quality; www.apq.pt
• IPQ: Portuguese Quality Institute: www.ipq.pt
• Mouvement Français pour la Qualité; www.mfq.asso.fr

Author: PME Negócios

Companies have a diverse range of marketing options to achieve their product, price, distribution and communication goals. In this context, business fairs are an extremely important instrument. In many cases they can even be decisive for success in the market.

The advantages of participating in a contest are multiple, such as:

• The presence can be the marketing action with the best ratio / cost per contact because the vast majority of those who take part in the contest are potential customers.
• The simple fact that visitors are more available makes it easier to attract customers, reducing the cost per contact.
• Competitive companies are present in the same space, which allows customers to compare conditions and therefore to decide more quickly.

Participating in a fair is a good time to keep customers loyal, either by sending personalized invitations to customers or through personalized service at the stand. In addition, participation is an excellent opportunity to promote new products / services or test them by directly investigating the market. Therefore, in the stand must be present qualified technicians able to do this analysis to the reaction of the visitors.

Three more advantages:

• The presence in a fair is also a way to strengthen or start the presence in regional or international markets.
• It is also useful for finding new companies and updating information on the market and competition.
• Halls are a means of combining elements such as sales forces, advertising, promotion and public relations.

Participation in a fair should not be considered as an isolated event, insofar as this reality is related to all the components of marketing-mix, ie the coherent set of decisions regarding the product’s price, distribution, and communication policy. product.

But the mere fact of being present in a contest is not enough condition to win in the market. Fairs should be seen as a targeted marketing measure, in a long chain of actions that must be perfectly coordinated before, during and after the fairs. But there are several mistakes to avoid.

Step 1 – Prepare to participate in a fair

Participation in a fair involves extensive preparatory work that must be started four to six months before the start date of the fair and obeys several rules. The importance of this preparation, which must be thought through in detail, lies in the fact that it is the image of the company itself that is at stake.

But before you even start this step you have to:

• Choose the event in which to participate – it is a mistake to select the fairs only because the competition also participates or because it is already habitual to attend a particular hall. The choice must take into account the company’s strategy, economic situation and market trends. There are options to save time and money. These options are based on a set of criteria to assess the potential for success arising from participation in a particular fair. The decision as to the type of fair in which to participate is also important. There are several types of fairs:
• open to the public
• for professionals, there are no direct sales in these and they are mainly aimed at contacts and orders
• Ask for all the available documentation about the fair chosen – this way you will be able to obtain useful information such as:
• date of realization

Scope

• number of edits already made
• schedules
• Exhibitor profile
• visitor profile
• occupied zone
• number of exhibitors
• evolution of the event
• exhibitors of previous and current editions
• number of expected visitors
• Means of dissemination of the event
• date and times of assembly / disassembly
• safe
• how far in advance the reservation should be
• list of hotels and surrounding infrastructure
• Start planning properly following a marketing strategy that will be based on a plan that should include:
• fair objectives
• analysis on Monday
• budget
• identification of the target market
• choice of products to be displayed
• promotion and advertising plan
• coordination of staff
• determination of the staff for the fair
• attribution of responsibilities
• elaboration of the service scale
• performance after the fair

To carry out the execution of this plan the company must appoint a responsible one. It is important that it is only one person who supervises and controls the process of participation in the contest in order to avoid dispersing the essential tasks by several people. Otherwise there is the risk of disorientation, which is always regrettable given the large investments made.

Step 2 – Define the stand

The stand is the structure where the participation of a company in a fair materializes and therefore should not be spared in its preparation. It is the image of the company and aims to draw the attention of the target audience.

The stand can be divided into:

• free floor, ie rented square meters
• physical structure which, in turn, can be constructed:
• With elements provided by the organization itself (walls, carpet, lighting, etc.), which is presented as a cheaper solution since the rental of the space itself is not expensive and would only invest money in the decoration.
• By the exhibiting company, which will bring a much higher cost, but in return the company will create its own environment more adapted to what it intends to convey, and more likely to draw attention to its space.

These two options must be considered taking into account the use of the stand, if it is adaptable to other sizes and consequently to other fairs and if it is easy to assemble / disassemble and transport, not forgetting the place where it will be stored while it is not being used .

The location of the stand inside the fair is not of great importance, since most visitors travel throughout the fair, but must:

• Attract the gaze should be avoided by avoiding the panels with excessive text
• Inform the professionals
• Facilitate living together

The definition of the stand must also take into account

• the target audience
• the messages and image to be communicated
• the products to be highlighted.

Step 3 – Set the budget for the fair

The investment depends very much on the objectives and the financial availability of the exhibitor, the objectives and the potential of the fair. But participation must always be seen as an investment and not as a cost. In fact, it is an expense that, if properly done, will bring returns in the future.

The budget should be divided into seven categories:

• Space rental
• Stand
• Transportation of goods
• Fair services, such as hiring staff to assemble, electrify or carpet the stand; Cleaning services; rental of furniture; photographer; safe; plants; phone, etc.
• Personnel: assess whether extra people are needed, how much extra staff pay, etc.
• Advertising and publicity
• Travel and stays.

Step 4 – Do marketing pre-trade

In order to reach as many visitors as possible, with interest for the company, it is necessary to bet on good marketing by sending invitations, direct mail or advertising in the press. Each exhibitor should try to captivate not the largest number of visitors but their target audience. There are several tools to use:

• Personalized invitations – are the best way to ensure the presence of the most important visitors, for this you have to prevent in advance the universe that you want to reach and build a database with the actual and potential clients.
• Mailing – is the way to reach potential customers and in this area there are several options to choose depending on the intent of the company. Invitation mailing should be done two months before, but the company should make a second mailing a month before the fair.
• Telemarketing – is a good tool within the scope of personalized contacts and is essentially related to the appointment of interviews for the event. This work should start about two to four weeks in advance and is very useful when the exhibiting company wants to take the opportunity to participate in the fair to organize a parallel activity.
• Press – the strategy to follow will be determined by the existing budget. The frequency of ad serving should be preferred to their size. The publication of news, especially in the specialized press, is equivalent to free advertising of the products / services that will be on display. However there has to be something new or the article risks giving an unfavorable image of the company and be counterproductive.

Step 5 – Know which errors to avoid at the stand

One of the most common mistakes is to select a fair because the competition also participates or because it is already usual to attend a particular show. However, choosing not to participate because of fear of being seen by competitors is also a mistake.

In addition, there is a set of rules that should not be forgotten within the stand of a company in a fair:

• Avoid sitting
• Do not read
• Do not smoke
• Do not eat or drink
• Do not ignore visitors
• Do not talk on the phone
• Do not stay focused obstructing the view of customers
• Do not distribute leaflets indiscriminately
• Do not be aggressive
• Do not leave unresolved issues
• Do not underestimate potential customers
• Do not talk to friends in small groups.

Taking into account these mistakes that need to be avoided, the program of participation in a fair must be framed in the marketing and communication strategy of a company.

Step 6 – Act during the fair

The fact that the visitor / buyer goes to the receptive and motivated stand is something that should be taken advantage of. Contrary to other forms of marketing, at the fairs you can see, touch or taste the products. Thus, the events allow to show the products in the best conditions.

To ensure the success of this action is advisable:

• Define a strategy
• Adapt the products to the markets and choose the products or services best suited to each market
• Demonstrate and deliver free gifts
• Distribute documentation
• Know the competition
• Fill in contact sheets, in order to get qualified contacts, that is, contacts that will turn into purchases
• Take advantage of the services proposed by the organization (press, parallel activities)
• Analyze visitor attendance
• Animate the stand
• Maintain daily meetings with all stand staff
• Photograph the stand
• Keep the stand clean and tidy.

Step 7 – Prepare the report of the fair

Subsequently, and even during the event, it is important to record in global terms what happened at the stand and at the fair – this register, which is called the report of the fair, must be done regularly throughout the fair’s participation and must gather several documents:

• Planning: includes budget, meeting notes with staff, participation objectives, etc.
• Services of the fair: archive the copies of the services ordered.
• Exhibition: include the design of the stand, the implementation of the products to be exhibited, assembly / disassembly instructions, company contacts, emergency numbers, fair regulations and exhibitor’s guide.
• Promotion and Publicity: keep a list of the companies to which the invitations were sent, make a map with the media where the participation was announced.
• Transportation: include copies of correspondence exchanged with the carriers and their contacts.
• Staff: copy of staff manual
• Contacts: file a copy of the contact sheet as well as planning how to convert the contacts into actual sales.
• Take the necessary steps to successfully face the days of the event.

Step 8 – Manage the post-market

After the initial contact established with a customer at the fair, the follow-up of the fair is fundamental to result, whenever possible, in the conclusion of a business.

The exhibiting company must gather all contacts made and:

• Establish a new phone call
• Submit required documentation or product sample
• Visit the client.

The company should also send thank-you cards to the customers who accepted the invitation and attended the show.

In another framework, the person appointed by the company to manage the participation in the fair must make a final balance sheet which will include an evaluation of the results of the participation. This evaluation should be done at three levels:

• technical aspects
• commercial aspects and
• administrative aspects.

This document will then be used as a starting point or guideline for future participation in events.

Bibliography

• Viegas, Márcia; Trade Show Marketing, Exhibitor’s Manual, 1st Edition, Sílabo Editions
• Lendrevie, Jacques, Theory and Practice of Marketing, 1993, Publications D. Quixote
• Sarmento, Maria de Lurdes, The importance of participation in fairs in the Marketing strategy, 1997, Universidade do Minho
• Deloitte & Touche, Study on the market for fairs and exhibitions, 1995, Ministry of Economy

References

• Expolíder: www.expolider.pt
• FIL – International Fair of Lisbon: www.fil.pt
• Exponor: www.exponor.pt
• Exhibition: www.exposalao.pt

Author: PME Negócios

Franchising is, by definition, a model or system of business development in partnership, whereby a company, with an already tested business format, grants the other company the right to use its brand, exploit its products or services , as well as the respective management model, with a financial contribution.

Opting to franchise can prove to be advantageous, above all because this is a system that enables faster coverage of the market with a lower cost of investment. But keep in mind that creating a network requires compliance with a set of basic conditions.

Step 1 – Register the brand

Intellectual and industrial property is a sine qua non for advancing to franchising. The brand must be registered in the country in which it intends to act. The obligatoriness extends to the registration of the name of establishment. In Portugal, it is treated with the National Institute of Industrial Property (INPI).

It is also fundamental that the brand to franchise has some notoriety, the only way to bring together attractions that can capture the interest of potential franchisees.

Step 2 – Define the concept and test it

The concept to be franchised must be objective and well identified. The franchisor should be able to state, without a doubt, what the success formula of your business is. The creation of a pilot unit is crucial. This is where the franchisor must test the whole concept, at least for a year, before deciding to franchise him.

The pilot unit functions as a laboratory and serves to:

• Test and adapt processes;
• Test the launch of new products;
• Evaluate the evolution of the concept.

Although not mandatory, the company must hold a portfolio of preferred and registered products under the same name as the brand. In addition, the mix of products should be as balanced as possible and always oriented from the consumer perspective.

Step 3 – Study the Market

The decision to franchise should only be made after an exhaustive market assessment. By becoming a franchisor, the company makes a long-term commitment to its partners, so it has to be able to ensure that the business in which it bets will become profitable. There are certain points you can not ignore:

• Definition of the basic indicators to enable a store / unit (for example, number of inhabitants of the region);
• Prospects for developments in the sector concerned, particularly from the point of view of commercial margins;
• Analysis of direct and indirect competition;
• Evaluation of the network’s potential for expansion (number of franchisees potentially interested in the business).

Step 4 – Transmit the know-how

The franchisor has the obligation to pass on to the franchisee how he manages his business. Only in this way can you guarantee that by following the same rules, you may get identical results. The know-how of the franchisor has to be: • Secret: Not to be generally known or easily accessible;

• Substantial: Give competitive economic advantage;
• Identified: Converted to written form through operations manuals.

The manuals should be as exhaustive as possible and divided into as many formulas and procedures as those that make up the business.

Step 5 – Prove Profitability

Another of the obligations of the franchise is to prove the profitability of the business. One should not try to win a franchisee by promises alone. You have to show yourself real data, based not on projections but on facts.

The franchisor can not, on the other hand, fail to point out to its future business partner the real investment values ​​needed to set up a franchised unit.

Step 6 – Review the company structure

When advancing towards setting up a franchise network, the franchisor must start out fully aware that the franchisee is a partner and not an employee. To do this, you will have to change your way of thinking, acting and even, in certain cases, the way your company is structured. Opening a franchise unit is not the same as creating a branch office and the franchisee will certainly – even because it is their right – require permanent support.

The evolution of the franchising structure can and should be gradual: the company must adapt to the needs that the network itself creates. Ensuring the full operation of the entire network implies a proven economic capacity. The franchisor needs to have funds to keep the concept alive and dynamic.

Step 7 – Analyze the feasibility

Once the base requirements were met, it was time to assess the viability of the business. Often, compliance with these preconditions does not imply that the project is viable. The following analysis aims to determine in detail the characteristics of the concept, taking into account the operating conditions of the company and the particularities of the business model to be formatted. It can be conducted autonomously or with the help of experts. It is the key that allows the complete design of the project and the indispensable basis for further documentary development. The following components must be taken into account:

• Initial situation: Evolution of the concept to be franchised, profile of current clients, strengths and weaknesses versus threats and opportunities;
• Key factors of franchising: Determination of the know-how, franchise-type profile, training process, loyalty factors;
• Operational aspects: Logistics, monitoring and control of the network, support to the franchisee;
• Implementation: Definition and characterization of the local-type, required areas, minimum population;
• Expansion of the network: strategies for expansion, analysis and definition of areas with potential;
• Economic-financial formula: It must be thought both from the point of view of the franchisor and from the point of view of the franchisee. It consists of the definition of entrance rights and royalties, the initial investment plan and the necessary initial capital;
• Analysis of legal aspects: Generic definition of the franchisee / franchisor’s rights and obligations, generic analysis of aspects such as the duration and renewal of the contract, exclusivity zones and sale or assignment of the business, identification of the key aspects for the drafting of the contract of franchising.

Step 8 – Format the deal

Once the feasibility plan is finished, and being the positive result, it is time to move everything to paper. The documentary basis of the project should be structured as follows:

• Manuals: They are the basic elements that allow the formatting and duplication of the predefined model. Are many:
• Operational Manual: Describes all the indispensable procedures for the daily management of the business (attendance, stock management, invoicing, structure and functions of the unit);
• Relational manual: Defines the relationship between franchisor and franchisee (control and monitoring of the network, continuous support to the franchisee, description of the structure and functions of the franchising center and communication rules);
• Manual of management: It is essentially aimed at the franchisee. It addresses the essential points that allow you to evaluate the performance of your business;
• Technical manual: Teaches how to work with the necessary equipment for the good operation of the business (machinery, special software, etc.);
• Site adaptation manual: Defines all the characteristics and constraints that the place of implementation of the business must respect (access, parking, window size, licenses);
• Manual of visual identity and corporate image: It establishes the rules of use of the brand and production of publicity materials.
• Franchise agreement: It is the final piece and must accurately reflect the relationship between franchisor and franchisee. It should be prepared by a specialist lawyer, based on the legal and relational conditions that have been defined in the feasibility plan. The content of the content is, of course, based on the ethical framework established by the European Franchising Code of Ethics, Portuguese legislation and current Community legislation.

Step 9 – It’s Time to Disclose

Once the formatting is complete, bet on the disclosure of your business. Do not do it without first:

• Define the profile of franchisees: It varies from business to business. As basic criteria may be the requirement or exemption of exclusive dedication, the obligation of previous experience in the sector and financial capacity. The remaining criteria are generally of a qualitative nature and are very much based on one essential aspect – empathy between franchisor and franchisee;
• Define the selection process;
• Create an image file and capture franchisees: It allows the franchisor to provide information to potential franchisees in an appropriate way, so that they can assess the advantages of joining the network. It is the first reference that the franchised potential has of the company and its business model, so it is a strong constraint of maintaining its interest in the selection process.

Franchisors have a wide range of specialized media available at national and international level to aid in the dissemination, which, if well used, can be crucial:

• Franchising Trade Shows
• Specialized magazines
• Franchising directories / guides
• Internet franchising sites
• Advertising posters and pamphlets available at the brand’s own units.

Mistakes to Avoid

Throughout this process, there are obviously a number of errors to be avoided, which can lead to network failure. Among the main highlights for:

• Hasty franchising launch;
• Incorrect selection of franchisees;
• Poor adaptation of the company structure to the new reality that is the franchising;
• Poor location of stores;
• Wrong definition of areas of territorial exclusivity;
• Errors in the definition of the economic formula.

Glossary

• Franchisor – company that grants rights to use the trademark and transfers all its know-how to third parties:
• Franchisee – a person or company that purchases the right to exploit the concept and brand of the franchisor;
• Franchise / initial fee – amount paid upon joining the network, usually on the date of signature of the contract. In part, this fee covers the costs that the franchisor had to attract, select and train the candidate, as well as other costs that will have until the opening of the store. In addition, the right of entry acts as a kind of jewel paid for the advantages of becoming a member of a chain already established in the market and the right to use the mark;
• Royalties – amount paid monthly, usually by a percentage of the billing, by the continuous use of the brand and by the support services provided by the franchisor.

Bibliography

• Shook, Carrie & Robert L; Franchising: The Business Strategy that Changed the World, 1993, Prentice Hall
• Kinch, John E .; Franchising: The Inside Story, 1986, TriMark
• Bradach, Jeffrey L .; Franchise Organizations, 1998, Harvard Business School Press
• Tomzack, Mary E .; Tips & Traps when Buying a Franchise, 1999, Source Book Publications
• Mauro, Paulo C .; Guide to the Franchisor, 1999, Nobel
• Business & Franchising Magazine, various numbers

References

• How to Become a Franchisee Course, from the Franchising Information Institute; www.infofranchising.pt
• National Institute of Industrial Property; www.inpi.pt

Author: PME Negócios

What makes two companies competing in the same sector different in terms of innovation and positive developments on the market? In fact, there are companies that are capable of constantly creating new products, of conquering markets and of continuing to grow. The solution may be easier to achieve than it first appears. It is enough that they do not allow themselves to be dragged by some self-imposed obstacles that sometimes even lead to bankruptcy.

Trying to perpetuate the source of income that seems inexhaustible, take it for granted that the market is mature, rather saturated, and thinking that it is not possible to innovate or bet on new products are a few mistakes to avoid. The idea that the ability to innovate has been granted only to a few geniuses is another obstacle to avoid. Preconceived notions that, in order to create, it is necessary to take risks capable of causing catastrophes and betting on more human resources can also lead to stagnation. Here are listed the seven mistakes to avoid by entrepreneurs and managers who want to grow their companies.

Point 1 – Do not devise the main source of income

It should be borne in mind that what today is a good source of income for business, tomorrow may not matter. Business managers must have the courage to realize when it is time to leave, for example, a product that is on the rise. At the outset, this attitude may seem anti-nature but, in fact, it is a solution for those who think about the future.

The reasoning is quite simple. When a company is relying on its main source of income, competitors are also trying to destroy it. It is imperative that companies know how to renew in time, even if the creation of a new source of income anticipates the destruction of the existing one.

If it is not so:

• The decision process stagnates;
• There is no initiative.

Point 2 – Remove the idea that markets are mature

Believing that a market has matured, that is, that there is no longer where to grow, is a mistake. A few years ago, no one could have expected to spend dozens of short stories when buying sneakers. But the evolution of the product allowed the market to change and that today it was possible to spend that money with a pair of shoes.

Undoing the myth of mature markets:

• Be able to look at small opportunities, for niche markets, even if they are not obvious. The segmentation of the type of consumers and the fragmentation of the markets could allow the discovery of new areas of growth.
• Whenever possible, companies should be one step ahead of the market. When it shows signs of not growing, it is preferable to make an effort and find a way to move it forward.
• Access to information and the ability to screen are decisive factors for the perception of what can be harnessed.

Contrary to what it may seem, Small and Medium Enterprises are also well placed to stifle the new opportunities that markets offer. With a smaller structure, they are also more flexible and bold in the search for new solutions.

Point 3 – Bear in mind the need to innovate

Massification is not a necessary evil today. Differentiation is still a hypothesis to follow. Manufacturing tires, for example, is not just about making tires. It is possible (and necessary) to create small points of differentiation. There are tires of various colors today. The French were masters in differentiating another product that may always seem the same, water. They created styles, brands and flavors. In this sense, it is concluded that it is a mistake to think that it is no longer possible to innovate.

Companies that have a more creative vision can surprise the market and win it. The best companies have realized this and invest in something as important as the change factor.

Point 4 – Create hypotheses for the reinvention of products

A company is made up of a group of employees, distributed by different functions, some more qualified than others. But entrepreneurs must be able to realize that new ideas can come from any of them. Sometimes, from where least expected. For this reason, team leaders must demonstrate the ability to plan and manage opportunities and ideas that may arise, complementing the more pragmatic with the more idealistic. In this way, teamwork is also important.

Some of the great inventors gave their name to the brands, to the companies and to the products that they created. They were entitled to a historical record. But compared to the unknown are only a small percentage. A crass mistake that companies sometimes make has precisely to do with the lack of attention given to these workers who are able to create, innovate and invent, even in anonymity, being even more entrepreneurial than entrepreneurs.

Human capital is already recognized as a decisive factor for the growth of a company. It is the human mind that discovers the new riches and opportunities that are in sight, but not all of them see.

Number 5 – Work to create

To think that it is only capable of innovating who was born with this faculty is a mistake. Although each employee has certain trends, it must be understood that work can also mean innovation.

Certain aspects need to be taken into account:

• Management system: It is a decisive factor in a company and can contribute to the creation. It is not difficult to understand this premise. Just think that there are companies that have developed a strong propensity to innovate. This does not mean that they hire employees who were born with the gift of invention. What happens, in fact, is that this is a consequence of the style of management to which they are subject.
• Institutionalized system: Implementing a process to make possible the evaluation and introduction of new products can be a good tool for business development and an advantage over competitors.
• Organizational process: Corporate management and the incentives created are key factors to enable business innovation. It is necessary to identify the foci of innovation and to collect it in a systematic way, so that it is not wasted.

Point 6 – Creating innovative products does not mean blindly risking

Risks considered prudent are sometimes necessary when it comes to innovation and the creation of new products. Experienced managers know how to measure both platters and determine when innovation brings no devastating risk.

Negotiating is also a right risk and entrepreneurs with a certain amount of weighting do not usually take unnecessary risks. They know when to launch the card that will put them in a good market position and that will bring to companies the innovation factor. The risk must be calculated, but not castrated. It is a mistake to stand in fear of creating risky products.

Point 7 – To innovate you do not need to have more human resources

Entrepreneurs should know that business initiatives mean looking for new opportunities, regardless of the number of staff available. After all, quantity does not mean quality.

The commitment and the taste for the work to be done are two factors that may seem insignificant but they are not. On the contrary, they can persuade employees to engage in solving problems and creating products and ideas that enable companies to evolve. Sometimes, just bet on the right person, who can be just one.

Change management can be done, for example, by paying attention to areas or resources that are low, turning them into areas and resources of higher productivity.

Bibliography

• Cordeiro, René; Robert, Michel; Product Innovation Strategy; Cultural diffusion.

References

• Business Association of Portugal; www.aeportugal.pt/Areas/Destaques/BaseVigilancias.asp?Menu=9

Author: PME Negócios

In a scenario of real and “psychological” crisis installed in the Portuguese economy, and not only, knowing where we are going, who we are and what we do is crucial for companies to overcome troubled times and require greater management capacity.

A company is defined not only by its name, norms and bylaws. In times of crisis, as well as in times of bonanza, it is important to never forget the reason for the existence of your company. Not only, you who make the decisions, but all those who are part of it.

Defining the business mission and making it understood, internally and externally, is one of the great challenges facing those who lead the destiny of a company.

Step 1: Know the reasons for communicating the mission of your company

At the internal level, the mission statement should enable the team that is part of it to clearly understand what the company they are working in and their reason for being.

The mission must also, in the final analysis, be able to communicate what the objectives are to be achieved by the team and at the same time encourage the commitment to achieve them.

Mission statement should be linked to attainable organizational goals and based on success factors clearly identified by all, so that it takes on a guiding role for the whole organization.

At the external level (clients, suppliers and society in general) the mission statement of the company contributes in a positive way to the image of the external audiences and customer loyalty. For example, British brand of natural cosmetics Body Shop has distinguished itself in various parts of the world and won customers by defending its values ​​and objectives clearly expressed in its business mission.

By defining the mission of your company will be easier to delimit what goals you want to achieve, as well as the strategy you will have to outline to achieve this. In order to do so, it is necessary to carefully analyze the critical success factors before implementing its action plan. In other words, keep in mind that the “raison d’être” of your company will help you to determine which way to go.

Step 2: Know what should be included in the mission statement

But for the mission to be understood in its entirety, it is essential that the objectives defined are realistic and expressed in a clear and credible message. This should be easily perceived by both internal and external audiences.

The mission statement should express the fundamental purpose of the company in order to inspire everyone working on it. In addition, it should reflect what the company intends to “be”.

Lastly, it must clearly and objectively refer to the values ​​of the company in order to guide the behavior of all those who are part of it.

On this basis, the manager or team responsible for developing the mission statement should bear in mind that it should reflect the following principles:

• The mission statement is the result of the consensus reached at decision-makers’ level.
• The mission must effectively convey company values.
• In the text, the link between behavior and values ​​advocated by company culture must be clearly identified.
• The mission statement should reflect the leadership style and goals of the company.
• The mission must be able to be used for a long period of time, preferably for a few years.

Step 3: Identify the mistakes that can make the mission statement fail

• The statement should not be long or generic.
• It should not be very specific, so that there is no chance of losing the topicality of the new projects developed by the company.
• The mission statement should reflect the aspirations of the company, but without running the risk of being a declaration of well-intentioned wishes.
• The statement should not be imposed by an influential group within the company, otherwise it will not be internalized by all.
• The mission should not be a list of goals to achieve. It must go further and achieve greater timelessness.
• Mission statement requires careful discussion and may take a few months to reach a conclusion. So do not rush to define a phrase that you can not play the role that underlies the company’s mission.
• The mission should not be ideal, but realistic and achievable by all who will play it, ie your team.

Step 4: How to prepare the mission statement

It is up to the top manager of the company to make a prior statement about their perception of the company’s values, culture, objectives and strategy. This document should serve as a basis for discussion between the management team responsible for carrying out the mission statement.

In order for there to be no risk that the final result is a mission statement that is too elaborate or reflects a weak balance between the different opinions of managers, it is important to keep in mind that the final declaration should be able to be summarized in a clear sentence and with impact of audiences.

Like this:

• Define the business objectives first.
• Analyze your company’s strengths and weaknesses as well as external threats and opportunities.
• Do not forget that the mission of your company must meet the expectations of managers, employees, shareholders (if any), consumers and other external stakeholders important to the life of the company.

Most business mission statements include the following data:

• The clients.
• The products or services.
• The main markets.
• The company’s beliefs about its employees.
• The company’s position vis-à-vis the company and its contribution as a member of the company.
• The geographical limits, or other, in which the company develops its activity.
• Definition of long-term economic objectives of the company.

Before deciding that it is necessary to make public the mission of the company, check that it is the right time to do it and that the final declaration meets the consensus of the whole team responsible for its execution.

Glossary:

• Company culture – Results from values, beliefs, behavioral norms, formal and informal systems of a company. The company culture is the link that binds all those who are part of the organization. It must help the adaptation of those who enter and simultaneously serve as an element of cohesion and motivation of the group / team.

Bibliography

• Villafañe, Justo; Positive Image; Syllabus; 1998
• Cushway, Barry; Lodge, Derek; Organizations, Planning and Behavior “, Classical Publishing House; 1998
• Stacey, Ralp; Strategic Thinking and Change Management; Publications Don Quixote; 1998

Author: PME Negócios

The interview represents a key moment in the recruitment process. Most likely

it is the first time that recruiter and candidate meet and can give rise to a collaboration with reciprocal advantages. This is a moment that generates bilateral tensions, since both parts are under pressure. On the one hand the recruiter needs to find the right professional and, on the other hand, the candidate submits to a test that may or may not determine his future professional.

In order for both to achieve the objectives it is necessary for both parties to obtain the necessary information for decision making and this must take place in a favorable climate.

Step 1 – Choose the best physical and material conditions

An interview looks like a business relationship, where attention to detail must be taken into account. For this communication to take place without interference, it is necessary to create the following conditions:

The interview should take place in a space:

• Soundproof enough to guarantee privacy;
• adequately illuminated, to allow observation from side to side;
• that you have a meeting table, so that the relationship is as egalitarian as possible;
• where there should be no telephone, or it must be switched off;
• where any interruptions should be proscribed;

Besides that:

• You must control the time required for each interview. An hour is the average, but this is variable according to the pace of the interview;
• Do not lead other candidates to wait, so as not to lead to undesirable tension.

Step 2 – Think about what you expect from the candidate

Although it is intended that the interview be conducted transparently, it is natural for the candidate, without failing to do so, to omit the less positive aspects and to highlight the factors that enhance or facilitate the occurrence of a favorable decision. The natural tendency can lead you to:

• gauge on the current salary, their level of responsibilities or the results achieved, although there may be candidates either for their modesty if they undervalue or omit their achievements. You should be aware of both cases so that the real value is not misrepresented;
• that the stress caused by the interview situation leads to attitudes that mask his / her personality, which may lead to blockages in communication, verbal incontinence or, for example, excessive reserve or affirmation.

Before undertaking any recruitment interview, the company will have defined the requirements of the function for which a collaborator is needed. These requirements are described in the so-called job profile, which identifies the qualities required for a good job performance. This document should form the basis of the whole process and should never be overlooked throughout the various phases.

Step 3 – Prepare the themes

The topics of the interview make it easier to determine and select the ideal candidate. The most used ones offer information about:

• The path of the candidate – on a personal, scholastic and professional level. In order to understand the candidate, it is essential to know his / her course at these levels, to detect inconsistencies, gaps, progression rhythms, what exalts him and what he does not want to talk about, the decisions and options he has been taking, the whys and consequences . This is usually a topic that is well studied by your interlocutor, who will try to adapt your questions to the lesson prepared and thus omit relevant information. It is up to the interviewer to counteract this tendency by interrupting him with concrete questions, forcing him to specify elements he would like to omit, to quantify data, to remember dates or to focus on facts;
• The functions performed – which indicates your professional skills and informs you about your personality. It is an indispensable subject to obtain most of the information about the professional competences of the candidate and because it gives us a multitude of clues about his personality. It is a timely occasion to channel the candidate to report facts, through open questions, usually initiated by who, who, how, where, when. Questions like: “Describe to me your work day, sketch me the project you are developing, how you solved the holiday distribution conflict?” Allow you to see if the candidate really did what he says;
• Previous companies – Talking about the companies where the candidate has already worked or works, their organic structures, their position in the organizational chart is a topic that allows clarifying the responsibilities assumed and the hierarchical level in which it has positioned itself. If you are a Sales Manager and you are a Commercial Director, what position will you put in the box of the organization chart that supervises your business? In describing the companies, it becomes possible to gauge the type of company with which the candidate most identifies himself and to understand how he will integrate himself in the company to which he is applying;
• Relations with and with the manager – this topic allows you to understand how the candidate will perform the managerial duties or how he will react to the type of leadership he or she can meet. Here, the discourse should focus on one’s own experiences as a leader or leader, rather than on an abstract / superficial discourse discourse. How did you organize a particular action, journey, event, project, how you coordinated, what difficulties and how did you overcome them, what impact did your colleagues have on these tasks;
• Motivations – this topic seeks to find out what factors move the caller to apply for that company and that position. “Why did you apply for this job?” Is an unavoidable question. From this, a sequence of others follow to specify what the professional project of the candidate and to see if it fits the objectives of the function and the profile sought. There are socially correct motivations that look good to those who deliver them, and others who are unpleasant to assume or even shameful. It is necessary to be able to distinguish between the motivations that the candidate takes and those he avoids. It will be easy to say that you want to achieve greater professional achievement and broaden your responsibilities, but it can be difficult to assume that your goal is to earn more or have a shorter timetable;
• Revive Emotions – When the candidate relives emotional content, they tend to make him or her experience the same emotions, thereby obtaining rich information about his or her personality and anticipating reactions from the subject in certain circumstances;
• Abstract contents – these are the candidate’s refuge. Telling your story in a synthesized way, painting it in pink, is easy. The candidate may avoid talking about concrete data. For example: “I had a happy childhood, I studied like the others, I looked for my first job with x years, I developed activities”. This type of discourse is not very binding, and the interviewer is responsible for directing him to facts, for a concrete discourse, such as “what is the profession of parents? Have you always been a good student? What are the weakest disciplines and what did they do? What happened at the first job? “These descriptions and the way they are described speak more of the candidate than the presentation initially made;
• Strengths and weaknesses – As a general rule, it has become a common interview question, the candidate can bring in the ready, pre-decorated answers. To avoid this, discuss the topic throughout the interview, take advantage of the candidate’s reports to find out the most negative and positive aspects of this evidence. Asking what repairs and accolades you often hear from family and friends, bosses and colleagues or, for example, asking you to talk about the strengths and weaknesses you have in relation to the tasks you are performing for the job you are applying for are forms alternatives to obtain answers to the same question;
• Extra-professional activities – is a topic that may contain important aspects about the candidate’s personality. The quantity and quality of the hobbies can represent a fulfilled life, a person with initiative, activity, capacity of performance, as well as the level of responsibilities that is able to assume;
• Knowing the company and the role – giving the rights, duties, remuneration, counterparts and all the essential details to your day-to-day function in the new function, it is essential for the candidate to state whether he is genuinely interested or not open vacancy Expressions, words and behavior will allow the interviewer to evaluate whether or not to integrate into the company (if they have the appropriate profile and show interest or not) or negotiate their integration (if they have the appropriate profile but the company’s offer does not meet your expectations).

The approach to these themes during the interview does not follow any predetermined sequence or order. It should emerge as the dialogue evolves, it will be determined by the interlocutor’s answers and by the need to collect elements related to the profile of the function, which should always be taken into account.

Step 4 – Use techniques for conducting the interview

The objective of the interview is to determine which candidate is best positioned to fill the vacancy in the company, both in terms of professional skills (knowledge and willingness to do) and personal characteristics, so that their motivations and way to be fit in the best way in the objectives and culture of the company. Thus, the interview should allow to predict the professional and social behavior of the candidate, through his words and attitudes.

The interviewer should take a natural but studied approach to obtain all the necessary information without blocking the candidate and for this a set of rules and procedures are suggested that allow him to reach the objectives:

• Take an egalitarian attitude, nullifying the possible dominator / dominated relationship or interrogator / interrogator because in reality it is a relationship between two cadres who meet to address a common interest;
• Know how to listen, to ask questions that will deepen the conversation and clarify doubts;
• Ask the right questions, one at a time. Try not to restate the questions if the caller is tense or quiet and not ask questions that influence the answer. Be curious and persist in the same theme as long as points remain unclear. Whenever the candidate uses buzzwords, technical terms of his area of ​​activity, try to deepen, explain and relate.

Step 5 – Adopt an Appropriate Attitude

Be wary of yourself. The statute and power that is naturally associated with the interviewer, as well as the verbal or bodily messages it conveys, are the major emitter of communication interferences and can generate behaviors in the candidate as disparate as mutism, seduction or complicity, masking so its reality.

Step 6 – Complete the interview

To complete the interview, the interviewer should summarize all the important aspects during the interaction with the potential candidate. Presenting the strengths, weaknesses, strengths, and gaps to the desired job profile, and getting feed back on them, will allow the candidate to clarify some unclear points or ask some questions. The interviewer may then conclude that:

• The candidate interests you – can give the good news or wait for new candidates without pronouncing the interest you have.
• If you do not give the good news, you run the risk of losing the candidate, as job seekers are certainly involved in a number of selection processes.
• Giving the good news, forward the calendar of the following steps, such as the possibility of psychological tests, interview with the person in charge, or the date on which you are going to enter the company;
• You have questions about the candidate – if you are in an initial phase of selection, where you can not yet compare it with other candidates, give him a certain date in which he will call to transmit his decision;
• The candidate is not accepted – in this case, he / she immediately transmits his / her decision, to the interlocutor it means the possibility of engaging in another attempt. Do not leave your candidates unanswered. If the decision not to recruit the candidate is done quickly and correctly, the applicant will not get a bad image of the company.

Step 7 – Make the final decision

After screening, the interviewer may come across various situations. Find a single candidate with the appropriate profile or several. If you find only one, please contact us immediately so you do not lose it. If there are several, then look for someone who brings added value to the work team (company), someone who can bridge at least some of the existing gaps. If the team lacks a professional with technical skills, you can bet on someone more experienced, if there is stagnation, look for a collaborator with the capacity for initiative and leadership, capable of driving change. In either case, not only can this candidate solve a problem that is exhausted at present, but may have the potential to evolve into more demanding functions.

Bibliography

• Cardoso, Adelino Alves; Recruitment & Selection of Personnel; 1st edition; Lidel Technical Editions

References

• Superemployment; https://superemplogo.sapo.pt/en/5recomendacoes.htm
• Job-Interview.Net; www.job-interview.net

Author: PME Negócios

The information sown during the interview with the applicant about the company and the job to be performed was certainly not sufficient for the new employee to adjust quickly and efficiently to the new job. The success or failure of this integration, as well as all that it can bring added value to the company, depends on the attitude of the company itself, but also on the attitude of co-workers, managers and the information that it obtains or is supplied to it. What aspects to take into account and how to prepare the integration of a new employee in the company?

Step 1 – Identify the problems of an integration

Many of the new recruits do not exceed the first months of joining the company and others do not go beyond one to two years of permanence. The consequences, in addition to the level of turnover that an unstable and unstable environment produces, are increased costs stemming not only from the costs incurred in recruitment and selection but also in compensation. What else can contribute to this instability in terms of relations, due to lack of an adequate integration of the professionals in the company, are phenomena like the rejection.

The integration of an unknown tends to give rise to defensive instincts, or at least distrustful attitudes within the team where it will be integrated. These may stem from fears about the changes that always happen, and may interfere with or condition the professional expectations of other elements. The typical issues that arise with a new employee are:

• Who is this stranger who appears here?
• Where does it come from?
• How did you get here?
• What knowledge and attitudes can it bring?
• What do you want to do?
• What power does it bring?

The new employee can either come across a friendly environment or a suspicious environment. The interaction between all team members, including the new employee, is what drives the course of events. Either mutual support will emerge or colleagues may tend to make it difficult for you to “live”:

• Showing antipathy;
• Showing less collaboration;
• Withholding information;
• Trapping the terrain.

The role of the recruiter, the manager and the team is fundamental at this early stage. Therefore, preparing or supporting only the new employee is not enough. We must prepare a whole team and a space.

Step 2 – Prepare the team and the space

To avoid negative situations, you must provide your team with all the information that clarifies fears and / or doubts that the admission of a new employee can cause, so that when it is presented is no longer unknown. It is also necessary to prepare a set of actions that facilitate the integration of the recruited in the company and its organizational socialization, both with the team and with the hierarchy. Some of the possible procedures are suggested:

• Prepare the space – prepare, in advance, the space and other equipment that will put at the disposal of the new employee, so that he does not feel like a stranger who is more in the physical context of the company;
• Book the day – set aside a day in your calendar to receive it and free yourself from compromises that may interfere with your willingness to host it. Avoid making him wait, entrust him to someone less prepared or less representative, and avoid leaving him at the mercy of other collaborators;
• Train – Prepare a training course (for one or more employees entering simultaneously) that presents the company’s history, culture and main objectives; internal working rules, main rights and duties, working hours and work habits; the current organization chart, main responsible, framing of the area in which it is going (insert) and its objectives; dominant values ​​shared by the team with whom they will work; objectives of the role it will carry out;
• Provide documentation – Provide you with all available documentation on the above topics and provide for someone to accompany you in completing administrative formalities;
• Set up a team meeting – Provide a wide and relaxed meeting with all the team members you work with, so that each team knows each one individually and their responsibilities are shared. You can also extend this contact to a snack or lunch together, in order to establish the first informal relations;
• Introduce the predecessor – if the predecessor to the new employee has been promoted or transferred to new roles, he should request that the new employee be informed and integrate the new employee in the responsibilities performed in that role, in the implicit and explicit objectives, in the means at his disposal, in the relations with colleagues and hierarchy and other information needed for the quickest insertion and consequent acquisition of a good level of productivity;
• Share the information – seek to ensure the sharing of all information in the team and in the company that clarifies the relationship between the parties;
• Make a visit to the premises – Allow an escorted visit to the premises so that the new employee can know the main responsible and can acquire a global view of the company.

It is appropriate that during this phase the recruiter should accompany and evaluate the new employee, because at the end of the trial period he should decide whether to hire him or not. In order not to be confronted with information that does not reflect the real value of the new employee, the recruiter can use methods that allow the qualities and difficulties of the recruiter to be as objectively as possible, as fair as possible.

Step 3 – Track and evaluate

Although there are several models, methods and theories on conducting performance appraisals, none of them results to 100%. Two different people may obtain different evaluation results, either because they sympathize more or less with certain collaborators, because they perceive issues that another evaluator would not perceive, or because they over-mathematicize the performance, not being able to include unforeseen factors in the assessment, and impossible to calculate. Use basic questions, organized, as an instrument and not as “the instrument”. These serve only as a support.

Instruments to support monitoring and evaluation of performance

It is suggested to use the following instruments:

• Monitoring and evaluation form;
• Interview midway through the trial period or the forward contract;
• Interview at the end of the trial or term contract.
• The monitoring and evaluation form: The form to be adopted must be built on the objectives and the profile of the function. Having defined the fields to be observed, this will help you to follow the evolution of the new employee in this period, and in the end you can express the appreciation about your integration in the company and the decision regarding its continuation.

In general terms the table should include the following factors:

• Professional knowledge foreseen in the profile;
• Main personal characteristics and adaptation to the company;
• Professional performance;
• Expectations regarding overcoming the less positive aspects;
• Proposal for your hiring.

• Interview the employee midway through the trial period (or the term contract): In addition to the permanent willingness to listen and advise the new employee, you should expect a formal balance sheet interview midway through the evaluation period. This may also be an opportunity to advise on the procedures to be followed up to the end of the contract or trial period. At this meeting, you will be able to pre-judge the hearing of the new employee, encouraging him to start the dialogue with his self-assessment, referring to the positive and negative aspects that he encountered and putting all the doubts he seeks to see clarified. In addition to giving you the clarifications requested, you should convey your loyalty to your appreciation, even in the areas where you diverge from the new employee’s self-assessment. Advise him on the procedures to be adopted or corrected over the remaining period and give him a forecast of the continuation of the same in the company if the progression to date is maintained.
• Interview at the end of the trial period or on the term contract: Before the expiration of the period legally foreseen to transmit his decision on the continuation or termination of the tie to the company, he should meet again with the employee to give him account of the intentions from the company. Like the procedure adopted in the previous interview, ask him to begin his self-assessment again and present his expectations about the possible continuation in the company. In turn, it will send you your final evaluation and the decision that the company will assume. If you are positive congratulate him for having earned the confidence of the company, express his expectations and encourage him to continue with a quality performance. If the decision is negative, it will not fail to state the reasons which it has objectively determined, and will advise it on the upcoming career choices.

Bibliography

• Cardoso, Adelino Alves; Recruitment & Selection of Personnel; 1st edition; Lidel Technical Editions
• Moura, from Estevão; Human Resources Management – Influences and determinants of performance; First Edition, Editions Sílabo

References

• Adapting to a new job; www.tiadro.com/artigos/artigo01.html
• Human Resources Manual for SPA employees; www.ais.unc.edu/hr/spaman/section05/sec05-types.htm
• Welcome to new employee; www.writeexpress.com/welcom05.html
• The Contract Emplyees Handbook; www.cehandbook.com/
• Human Resources Learning Center; www.human-resources.org

Author: PME Negócios

The information sown during the interview with the applicant about the company and the job to be performed was certainly not sufficient for the new employee to adjust quickly and efficiently to the new job. The success or failure of this integration, as well as all that it can bring added value to the company, depends on the attitude of the company itself, but also on the attitude of co-workers, managers and the information that it obtains or is supplied to it. What aspects to take into account and how to prepare the integration of a new employee in the company?

Step 1 – Identify the problems of an integration

Many of the new recruits do not exceed the first months of joining the company and others do not go beyond one to two years of permanence. The consequences, in addition to the level of turnover that an unstable and unstable environment produces, are increased costs stemming not only from the costs incurred in recruitment and selection but also in compensation. What else can contribute to this instability in terms of relations, due to lack of an adequate integration of the professionals in the company, are phenomena like the rejection.

The integration of an unknown tends to give rise to defensive instincts, or at least distrustful attitudes within the team where it will be integrated. These may stem from fears about the changes that always happen, and may interfere with or condition the professional expectations of other elements. The typical issues that arise with a new employee are:

• Who is this stranger who appears here?
• Where does it come from?
• How did you get here?
• What knowledge and attitudes can it bring?
• What do you want to do?
• What power does it bring?

The new employee can either come across a friendly environment or a suspicious environment. The interaction between all team members, including the new employee, is what drives the course of events. Either mutual support will emerge or colleagues may tend to make it difficult for you to “live”:

• Showing antipathy;
• Showing less collaboration;
• Withholding information;
• Trapping the terrain.

The role of the recruiter, the manager and the team is fundamental at this early stage. Therefore, preparing or supporting only the new employee is not enough. We must prepare a whole team and a space.

Step 2 – Prepare the team and the space

To avoid negative situations, you must provide your team with all the information that clarifies fears and / or doubts that the admission of a new employee can cause, so that when it is presented is no longer unknown. It is also necessary to prepare a set of actions that facilitate the integration of the recruited in the company and its organizational socialization, both with the team and with the hierarchy. Some of the possible procedures are suggested:

• Prepare the space – prepare, in advance, the space and other equipment that will put at the disposal of the new employee, so that he does not feel like a stranger who is more in the physical context of the company;
• Book the day – set aside a day in your calendar to receive it and free yourself from compromises that may interfere with your willingness to host it. Avoid making him wait, entrust him to someone less prepared or less representative, and avoid leaving him at the mercy of other collaborators;
• Train – Prepare a training course (for one or more employees entering simultaneously) that presents the company’s history, culture and main objectives; internal working rules, main rights and duties, working hours and work habits; the current organization chart, main responsible, framing of the area in which it is going (insert) and its objectives; dominant values ​​shared by the team with whom they will work; objectives of the role it will carry out;
• Provide documentation – Provide you with all available documentation on the above topics and provide for someone to accompany you in completing administrative formalities;
• Set up a team meeting – Provide a wide and relaxed meeting with all the team members you work with, so that each team knows each one individually and their responsibilities are shared. You can also extend this contact to a snack or lunch together, in order to establish the first informal relations;
• Introduce the predecessor – if the predecessor to the new employee has been promoted or transferred to new roles, he should request that the new employee be informed and integrate the new employee in the responsibilities performed in that role, in the implicit and explicit objectives, in the means at his disposal, in the relations with colleagues and hierarchy and other information needed for the quickest insertion and consequent acquisition of a good level of productivity;
• Share the information – seek to ensure the sharing of all information in the team and in the company that clarifies the relationship between the parties;
• Make a visit to the premises – Allow an escorted visit to the premises so that the new employee can know the main responsible and can acquire a global view of the company.

It is appropriate that during this phase the recruiter should accompany and evaluate the new employee, because at the end of the trial period he should decide whether to hire him or not. In order not to be confronted with information that does not reflect the real value of the new employee, the recruiter can use methods that allow the qualities and difficulties of the recruiter to be as objectively as possible, as fair as possible.

Step 3 – Track and evaluate

Although there are several models, methods and theories on conducting performance appraisals, none of them results to 100%. Two different people may obtain different evaluation results, either because they sympathize more or less with certain collaborators, because they perceive issues that another evaluator would not perceive, or because they over-mathematicize the performance, not being able to include unforeseen factors in the assessment, and impossible to calculate. Use basic questions, organized, as an instrument and not as “the instrument”. These serve only as a support.

Instruments to support monitoring and evaluation of performance

It is suggested to use the following instruments:

• Monitoring and evaluation form;
• Interview midway through the trial period or the forward contract;
• Interview at the end of the trial or term contract.
• The monitoring and evaluation form: The form to be adopted must be built on the objectives and the profile of the function. Having defined the fields to be observed, this will help you to follow the evolution of the new employee in this period, and in the end you can express the appreciation about your integration in the company and the decision regarding its continuation.

In general terms the table should include the following factors:

• Professional knowledge foreseen in the profile;
• Main personal characteristics and adaptation to the company;
• Professional performance;
• Expectations regarding overcoming the less positive aspects;
• Proposal for your hiring.
• Interview the employee midway through the trial period (or the term contract): In addition to the permanent willingness to listen and advise the new employee, you should expect a formal balance sheet interview midway through the evaluation period. This may also be an opportunity to advise on the procedures to be followed up to the end of the contract or trial period. At this meeting, you will be able to pre-judge the hearing of the new employee, encouraging him to start the dialogue with his self-assessment, referring to the positive and negative aspects that he encountered and putting all the doubts he seeks to see clarified. In addition to giving you the clarifications requested, you should convey your loyalty to your appreciation, even in the areas where you diverge from the new employee’s self-assessment. Advise him on the procedures to be adopted or corrected over the remaining period and give him a forecast of the continuation of the same in the company if the progression to date is maintained.
• Interview at the end of the trial period or on the term contract: Before the expiration of the period legally foreseen to transmit his decision on the continuation or termination of the tie to the company, he should meet again with the employee to give him account of the intentions from the company. Like the procedure adopted in the previous interview, ask him to begin his self-assessment again and present his expectations about the possible continuation in the company. In turn, it will send you your final evaluation and the decision that the company will assume. If you are positive congratulate him for having earned the confidence of the company, express his expectations and encourage him to continue with a quality performance. If the decision is negative, it will not fail to state the reasons which it has objectively determined, and will advise it on the upcoming career choices.

Bibliography

• Cardoso, Adelino Alves; Recruitment & Selection of Personnel; 1st edition; Lidel Technical Editions
• Moura, from Estevão; Human Resources Management – Influences and determinants of performance; First Edition, Editions Sílabo

References

• Adapting to a new job; www.tiadro.com/artigos/artigo01.html
• Human Resources Manual for SPA employees; www.ais.unc.edu/hr/spaman/section05/sec05-types.htm
• Welcome to new employee; www.writeexpress.com/welcom05.html
• The Contract Emplyees Handbook; www.cehandbook.com/
• Human Resources Learning Center; www.human-resources.org

Author: PME Negócios