Breaking Bureaucracy

Have you ever thought that your unconventional way of viewing the workplace tends to create cold sweat down the back of your boss? That is if he is a bureaucrat - a custodian of the status quo! It’s not really old fashioned shoes or light green krimpilene trousers that make your boss’s management style so outdated. It is his closed mindset, which passionately resists change and obsessively treasures policies and procedures. This is fertile breeding ground for complacency and killing creativity in a team!

Achieving results are not at the top of the list for your boss. Whipping up a whirlwind of rules and regulations is. He embraces the company’s policy at the expense of everything else. Getting things done with speed and a high sense of urgency doesn’t even make it onto his list. He will rather unleash report-writing mediocrity. Knowingly or unknowingly, he is an expert in causing obstruction. Your boss is a proper and self-respected ambassador for “rules” and “red tape”. Today’s accomplishments are not that important, but years and decades with the organisation are incredibly admirable from his point of view.

Your thirst for performance and drive towards excellence is quite frankly a major irritation to the boss. He has already concluded a long time ago that there is absolutely no reason to get overly excited or passionate about the company. Not then, not now and not in the future! The ultimate goal for him is to retire and until then, bask in the glory of all his titles. Someone still has to break the news to him that times have changed and these days, you buy your own gold watch at retirement. The valuable contribution that you can make towards the organisation doesn’t even feature on his radar screen. Through years and years of service, he has “arrived”. Your boss is acutely aware of his positional authority and power. Everyone obeys him, because they are forced to. He is oblivious to the unproductive effect of his lack of influence on the team. Culbert & Ullmen caution that we recognize the hierarchy trap: “one must also recognize that hierarchy is a cancer that causes human systems to close down. It almost always limits truth telling, authenticity, openness, and give-and-take exchanges.”

So why does your boss hail from the stone-age?

Your boss doesn’t need to drive around in a Fred Flintstone car, wearing a leopard skin and carry a club to have a primitive way of thinking. It has also nothing to do with age. William Blake once wisely remarked that “the man who never alters his opinion is like standing water and breeds reptiles of the mind.” Years and years with the organisation without any competition in the industry forged your boss into a bureaucrat. Quantity in the absence of quality has become his measurement of success. Charles Foley describes these types of bosses as: “bureaucratic adversaries, with their single-minded devotion to preserving the order of things and their place within that order.”

Bureaucratic bosses form part of a global clan that spans around countries, cultures and continents. Their “well-deserved” justification is always the same: “been there, done that, got the tie”. The walls in their offices announce in stereo surround sound their self-perceived value through framed diplomas, degrees and certificates. Their views and behaviours in the workplace reveal it all. It can only be described as self-justified entitlement. The organisation “owes” it to them. They have given years of loyalty towards the company in exchange for job security. But guess what? There waits a rude awakening! The workplace has changed. No company or organisation can afford to give you permanent job security anymore. You have to make yourself invaluable by producing results, mentoring those around you and contributing towards the bottom-line.

How do you manage a boss that is a bureaucrat?

Maybe you are bored out of your skull in a sleepy business setting or stifled beyond comprehension in a stuck-up bureaucracy. You need to do something! A word of caution: be prepared to fight an uphill battle against your boss’s self-justified complacency and inward focus.

In modern times, there is no way that any one of us can afford to get stuck in the rut of rigid tradition. It is easy to understand that innovation adds vitality to any organisation. Unfortunately for most of us, working under a bureaucratic boss, there will always be a nagging fear of being criticized, looking stupid or failing with our new ideas. This is why you need an abundance of courage. You should never be scared to deal with this type of boss. The future of the organisation is depending on it. If you are not going to stand up, who will? This is leadership in action! Don’t bargain on your boss to sponsor any change. Your influence and enthusiasm will have to create the necessary momentum for transformation. Build your business case slowly and back it up with solid data. Continue to lobby your boss tactfully.

There is the danger that you can be negatively perceived as a non-conforming rebel, because you are threatening that which is familiar to your boss. Remember that bureaucrats become stuck in the strait jackets of their own comfort zones and tradition. The time will come where you have to sit down with your boss for a discussion. You might be anxious. Let your boss know that it is difficult for you to speak up, but you do it out of respect for the company and him as an individual. Don’t forget to express your appreciation for his “attendance”. Use non-judgemental words and describe the result of his management style on everyone. Give specific examples. Listen respectfully to your boss’s version of events. Provide non-threatening, but practical suggestions on how to potentially remedy the situation. Make sure to thank your boss for lending his ear to you. Remember, you had the vision, so now you have a job to do!

So what is the ultimate solution?

Some managerial minds in the workplace are like cement permanently set! They need to understand that persistent innovation is a lasting competitive advantage. Innovation and change is a sure way to open the doors of accomplishment for any organisation.

Everyone needs to grasp the hard-hitting business reasons that demand innovation. No strategy, procedure or course of action has a permanent lifetime. We live in an age of killer competition and the key to a company’s survival in the ever-changing workplace is innovation. Leaders need to nurture innovative organizations. They have to tap into the trust and collective guts of all employees to stomach uncertainty and risk new and creative ideas. True innovation is exactly the opposite of a bureaucracy. It requires a new way of thinking and viewing business. Traditional assumptions must be challenged at all times!

Estienne de Beer is a Professional Speaker and Leadership Coach. He is the author of the book “Boosting Your Career - Tips From Top Executives”. Over the past few years, Estienne has empowered people in 7 countries. To receive his free personal development newsletter, visit his website at http://www.leader2leaders.com or e-mail him at estienne@lantic.net with your first name, surname, city & country in the body of the email and “My FREE subscription to Leader2Leaders” in the subject line.

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How to Finance a Medical Practice That is Growing Quickly

Regardless of what industry pundits say, opening a medical practice can be both very rewarding and very lucrative. Of course, as with any business, medical offices have their own specific financial challenges. One of the biggest challenges for medical practices of all sizes is adjusting to the long payment cycles of private insurance providers and Medicare/Medicaid. It is not uncommon for bills to insurance companies to take up to 120 days to pay. This slow payment cycle wreaks havoc in the office’s cash flow, forcing the medical office to carry the costs of doing business - paying rent, equipment leases and office staff - while waiting to get paid. This can be prohibitively expensive and prevent the office from growing and hiring additional staff. At its worst, it can threaten the very existence of the medical practice.

However, there is a light at the end of the tunnel. There is a financing tool that lets you capitalize on your slow paying insurance companies and turn their slow payments into immediate payments. The solution is to factor your medical receivables.

How does medical receivables factoring work?

Medical receivables factoring (or medical factoring for short) is a financing tool that allows you to turn slow paying invoices into actual cash, by selling them to a medical factoring company. The medical factoring company pays you for them and waits to be paid by the insurance companies. It eliminates the slow payment cycle, reducing the payment time from 90 days to two days. This provides the medical office with the necessary funds to meet expenses, such as paying rent and staff. It also frees up capital to grow the business into new areas.

The medical factoring process is fairly simple. Once a factoring arrangement is established, your office sends its weekly receivables to the factoring company for immediate financing. The factoring company will calculate the actual amount paid by insurance companies (called the net collectibles) and advance you up to 80% of that amount. The remaining 20% is called the reserve, and is used to settle billing discrepancies. Once the insurance company pays the medical bill, the remaining 20% is rebated, less the financing fee. The financing fee varies based on how long the invoices were financed.

Although qualifying for factoring is relatively simple, most financing companies will only work with medical offices that have net collectibles of at least $50,000. Terms usually get better as the practice grows. Medical practices, testing centers and medical supply companies that have over $200,000 a month in net collectibles are in the best position to get the best terms. This is because insurance payment processing can be very complex and there are a number of efficiencies that can be realized with high volumes.

Advantages of medical office factoring

Medical office factoring has some advantages over other financial products. The most important is that the financing is recurring and happens every time you invoice an insurance company. This makes it a cash on demand product. As opposed to loans and lines of credit, the factoring line has flexible limits. As a matter of fact, the limits are based on your ability to invoice, making it an ideal growth tool. Lastly, doctor office factoring is easy to qualify for and the personal credit of the practice owners is usually not involved in the financing decision.

Invoice Factoring Group

Invoice Factoring Group can provide you with a medical factoring or medical receivables factoring quote for free. Marco Terry, the president, can be reached at 1-866-730-1922.

Copyright© 2006 - All rights reserved. Article may be reprinted provided it is not modified and all links are kept intact.

Tags: factoring, , , , invoice factoring, medical factoring, medical receivables factoring

Wealth Building in Four Steps

First, a definition of wealth. I’m not talking about a wealth of friends, or interests, or experiences. Those kinds of wealth are wonderful, definitely. But right now, I’m talking about money - lots of money.

Exactly what “lots of money” means is subjective, but let’s say that when your annual income becomes your monthly income, you’re playing in the wealth ballgame.

Wealth building, for the most part, involves four financial aspects:

* Growing a cash machine

* Allocating assets

* Spending planning

* Managing/eliminating Debt

*Growing a Cash Machine*

This is the most important aspect of the wealth building foursome. In fact, it is the foundation for the other three areas, whose sequence depends on the nature of your particular cash machine.

Your cash machine is an incorporated business, which is ideally based on leverage of your existing skill set. For example, say you are an automobile mechanic. That’s a service. How can you leverage your skills so that you have a business that makes money while you sleep? (The definition of a cash machine).

Here’s a scenario: People buying used cars come to your shop for inspection before they buy, and you realize that many of the things you check during your inspection, the consumer could easily check for themselves. You teach a class at the community college and you package the hand-outs you’ve created for the class. Make them into an ebook, hire a marketer, and voila’ you have a cash machine.

That’s simplified, but you get the idea. Wealth builders are generally entrepreneurs. Think of something similar you could do with your skill set, and grow a cash machine.

*Allocating Assets*

With the income from your cash machine, plus all your other assets, create a comprehensive plan for your assets to work for you. You’ve heard the saying, “Stop working for money and get money working for you.”

If you haven’t already put a team together to grow your cash machine, with asset allocation a team becomes critical. You’ll need advisors to set up an incorporated business for your tax strategy as well as asset protection. And, you’ll want a financial advisor to help create your overall plan.

One of your most important assets to allocate is time. Millionaires “hire” time. Invest in building yourself a team of experts and support personnel. In addition to expert advisors, hire bookkeepers, housekeepers, assistants, etc.

*Spending Planning*

When the cash starts rolling in, a common mistake is to allow spending to keep pace with the increased income. This makes for a cushy lifestyle, but isn’t part of a good wealth building plan.

When you create your spending plan, it should reflect your personal priorities. It doesn’t need to be restrictive (like a budget). Think of it more like a framework for financial decision-making that serves your long-term interests at the same time providing resources for you to enjoy the present.

*Managing/Eliminating Debt*

Once you’ve got your cash machine going, turn your attention to arriving at zero consumer debt: credit cards, mortgage, etc.

However, not all debt is bad. Sometimes, you want to leverage someone else’s money. Buying income real estate is an example of such a time. But for the most part, a focus on minimizing or eliminating debt is a sensible part of any wealth building plan.

The ultimate goal of wealth building is financial freedom - when your passive income supports your lifestyle, and you work because you choose to, rather than because you have to. Use the wealth building foursome to lay the foundation of your financial freedom.

Lila Norden is a business and financial consultant. Lila offers valuable information to help you make decisions about your business growth and financial development. Visit Lila’s web site FCI Money.
Additional articles by Lila are also at Yes Investing and F-Com Finances

Tags: asset, , , , , , , , , , , business, debt, finances, financial, financial freedom, income, money, success, wealth, wealth building
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