Allen Bostrom – Universal Accounting

In a former life, I worked with one of the largest companies in the world. The pay was good and the benefits were generous, but the numerous levels of bureaucracy were stifling to a person’s initiative and personal value.

There’s no question in my mind: employees are the most important asset a company has. A company can have the finest offices, equipment, and products available on the market, and they will be outsold every time, if the employees aren’t the focus.

For that reason, I’ve always disliked the reference often made of management as “superiors”. I feel every person in the Company fills a critical role to the business regardless of their pay and position. That means that management is no better or superior, just different roles.

In working with the staff at Universal Accounting Center, I subscribe to the STAR System that we developed. All of our employees are STARs. It’s an acronym for:

Set standards for performance

Trust them to make good decisions for their jobs

Acknowledge their accomplishments and contributions

Reward them for excellent performance

I find that people rise to the needs of their position if given enough direction, and encouragement. They must first understand the value they bring to the business, and how their contribution impacts everyone. They must furthermore be aware of what is expected of them, and how they can know whether or not they are meeting that expectation. We call this setting the standard for performance.

Secondly, I feel that people can be trusted to help resolve problems in their own group and as a Company. If we have a problem, we take it to those who are most impacted and ask them to help us. For instance, one group didn’t feel the pay structure was as fair as it should be. So we asked them to come up with something better. I think a lot of managers would be afraid that they would write themselves a big check, but instead they came up with a fair, workable plan, that to them was much more fair.

Everyone appreciates being acknowledged for accomplishments and good ideas. When a person goes above and beyond their standard, they receive special recognition. In time, as others witness the extra attention given to those that excel, they raise their own expectations. Eventually, the standards rise as the entire group rise to a new level of production. Furthermore, we recognize those that share ideas whether or not their idea is used.

Finally, I recognize no deal is a good deal, unless it’s a good deal for both parties. That is never truer than when it comes to the Company and it’s employees. There’s a balance between employee pay and profitability. We want the best employees and have to be willing to pay for it as long as it will provide an adequate rate of return. Where practical we will use pay as an incentive so that those that excel will be rewarded exceptionally for their contribution.

Allen Bostrom
Universal Accounting Center