Is Health and Wellness a cost?

Is Health and Wellness a benefit or a cost? Why would a CFO in a larger, employee heavy firm, not take a look at implementing a Health and Wellness program?

It is easier to get fired for doing something that went wrong or that someone found objectionable than it is to get fired for maintaining the status quo.

For example, in the corporate health and wellness industry, there is decades of evidence that positive ROI can be created with a solid wellness program. (And of course a poorly run wellness program can cost hundreds of thousands.) 

With health insurance costs skyrocketing it often amazes me when I see not fund a proper wellness program and go with "free" health fairs that are designed and run by medical doctors who simply use the corporate event to fill their out-of-network medical practice with patients.

It is management's responsibility to maximize the value of the organization but, despite all of the evidence that corporate wellness programs work, the average CFO still refuses to fund a professional program.  Their Human Resources or Benefits department struggle.

Jacoline Loewen   See Jacoline on BNN, The Pitch  Author of Money Magnet Director, Crosbie Co.

Crosbie & Co.

150 King Street West

Toronto, ON

M5H 1J9

416 362 7726

Why do cost saving ideas not get done?

The degree to which companies are having to cut spending and budget expectation is directly proportionate to the degree of cost saving ideas that have been implemented. 
Gary Hamel startled me in his book, Leading the Revolution, many years ago when he pointed out the top line of ROI and the bottom line.
CFOs are risk adverse by the nature of their characters. Ideas push up their blood pressure. Why take a risk?
Let's keep cutting costs because I can cope with revenue payments but not with a new project face plant.

Of course, wisdom indicates that no one will save themselves to prosperity. But is does turn an umbrella into a shelter.

Are CFOs using "Cost" as a reason not to start new projects?

I believe that cost is a major factor why companies are reluctant to consider new ideas right now.
Implementing new ideas can have significant upfront costs, while the savings and returns are usually only realized in the long term.
Companies are cutting costs and budgets due to the current economic climate, and this has a direct impact on what money is available for innovation and new projects.
Are costs holding back business growth this next quarter?

Jacoline Loewen See Jacoline on BNN, The Pitch Author of Money Magnet
Director, Crosbie Co.
Crosbie Co.
150 King Street West
Toronto, ON
M5H 1J9
416 362 7726

http://www.crosbieco.com/

How terrified are managers to do personal annual reviews?

You can never look bad to the board when you tell them you have some new ideas that will increase revenue that ties into the strategic plan. It shows that you are forward thinking. It is my opinion from being in these type of situations that the answer is this. 

Most of the executives I have worked with (70%) lack managerial courage. When you talk about saving millions dollars that means "beaucoup" changes in the organization that probably will effect people's jobs, layoffs, your power and control and the size of our office. This means having to talk to people who work for you that may not be good news for their self interest. 

Just look at how terrified managers are to do personal annual reviews. It takes courage to tell an employee they just aren't cutting it. A majority of men don't have the talent to resolve conflict and avoid it. They avoid conflict just like at home with their wife. Women run the house. (I learned this in Pyschology and talking to my coach) I was with a company who as a perk gave the three C-Level staff their own coach. 

We all know in our organizations staff who are negative and cause so much unproductivity but are given 5 stars at every review because their boss is afraid of conflict. I had a senior manager have a melt down one time because he was going to a different office without his mountain view. He tried to get me to back down on the change with intimidation. Conflict avoiders are everywhere. 

Many seasoned executives are afraid of new ideas because they don't want the pain of making the changes. Change agents don't last long in an organization. The executives that I have talked to who have been with the company the longest had one pervading quality. "They never took sides on anything and never initiated any change" 

I admire how quickly how quickly Microsoft could make organizational changes versus IBM whose ego really got in the way.

Jacoline Loewen, author of Money Magnet and on BNN The Pitch

Jacoline Loewen   See Jacoline on BNN, The Pitch  Author of Money Magnet Director, Crosbie Co.
Crosbie & Co.
150 King Street West
Toronto, ON
M5H 1J9
416 362 7726

Canada M&A deals drop 15 pct in Q3 as sellers wait

What is happening to businesses in Canada? It seems that the sellers are waiting for uncertainty to pass. When BNN asked Ed Giacomelli, Partner at Crosbie & Company, for his views on where we were, he said that the Q3 deal volume down 15 pct from Q2, 25 pct on year. BNN asked Mr. Giacomelli for his opinion on these lower rates of M&A, he said he believed it was due to the uncertainty but that by next year, sellers will be more confident again.
In addition:

* Deal value of C$40.5 bln was up 18 pct from Q2

* Big CNOOC/Nexen deal skews data

TORONTO, Nov 14 (Reuters) - The volume of merger and
acquisition activity in Canada slowed 15 percent in the third
quarter from the second as market uncertainty held back
prospective deals, though a blockbuster bid by China's CNOOC Ltd
for oil producer Nexen Inc helped boost the overall value of
transactions, a report showed on Wednesday.