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Employee Training Leadership Management

Mental errors

So, this past weekend my alma mater’s football team visited Tuscaloosa. As with most guests of the University of Alabama football team, they came away with a loss. Despite losing by 41, it could have been worse. Really it could. The score didn’t really bother me – I mean, seriously – we’re talking about an unranked team vs the top ranked team in the country. We knew it was going to be ugly.

Coaching?

Even when you “know” your team is going to be clobbered, there are two things you don’t want to see. In fact, I spoke with a sportscaster friend from college about it shortly before kickoff. I mentioned that I’d like to see four quarters of motivated play, ie: no appearance of quitting or giving up, and four quarters without a bunch of stupid mistakes – ie: mental errors. Fortunately, we didn’t see the team giving up late in the game, despite a 40+ point deficit. Mental errors, however, were a problem.

We don’t generally expect major college athletes to commit mental errors week-in and week-out. If they’re a problem in a game, it happens, and you expect the coaching staff to spend some of the ensuing week’s training time to address them. It speaks to a coaching problem when these things happen repeatedly, particularly in consecutive games.

On two consecutive kickoff returns, two different kickoff returners made back to back junior high school football level errors – stepping out of bounds at the two yard line pursuing a ball they’d deflected, and catching a ball heading out of bounds inside the 10 yard line (rather than simply letting it go and getting it at the 20 yard line). Neither player appeared to be aware of their location on the field. I can’t recall the last time I saw this egregious an error of that type at the major college level, much less on consecutive kickoffs. It may not have affected the outcome this time, but it would against a different opponent. Unfortunately, these were not the only two mental errors – they’re simply the easiest ones to describe.

In a football game, you expect mental errors due to nervousness, fear, a pressure-filled situation, fatigue, and/or a lack of preparation. When you are down by 24 in the early first half, about all that’s left is the lack of preparation option. To me, that speaks directly to coaching. At this point in his tenure, there’s already the drumbeat of replacement – so fixing the preparation is essential. You can’t replace your team with better players (or players who fit better into your system) in the middle of the college season, but you can significantly impact their preparation. If you don’t, a lot of other things will likely go badly.

A tie to business?

Of course, there’s a connection to business. The situation speaks directly to hiring well, on-boarding, continuing education, mentoring, management, and leadership. Those things aren’t enough to eliminate mental mistakes, but they certainly help. The preparation that we didn’t see evidence of in last weekend’s game We all make mental mistakes in business situations.

The strategies that reduce or eliminate mental mistakes during the business day are the same ones as in football. Coaching, training, mentoring, and practice are all a part of preparation. Any one of them will not do the job. For example, you can stand at the front of the room and teach people, but until they get out in the field and do what they were trained to do, it’s extremely unlikely they will perform at a high level. Even when they do, practice and mentorship is essential.

An easy example? Your sales team. Some members of your team may not enjoy practicing sales calls with other staffers, or going over recordings of sales calls with a manager or an experienced, successful salesperson – but both practices have proven useful to developing expert salespeople.

It’s on the leader

While the team members are the ones making the mistakes, the responsibility rests largely with the leader. They set the tone and performance expectations, while deciding how much preparation of their team (or their staff) is enough.

Business leaders are all under some sort of deadline. Coaches can’t put off next Saturday’s game. Both have to field the team they have each day or each week. Both are responsible for making sure their teams are well-prepared. What can you do with your team to make sure they are better prepared for their next effort?

Photo by Mari Carmen Del Valle Cámara on Unsplash

Categories
Employee Training Entrepreneurs Leadership Management

Are you holding on too tight?

Have you ever driven something to the post office because then you’d be absolutely sure it was put in the right box and actually mailed? Seemed rational at the time, right? The biggest turning point in a business owner’s life is when they trust someone enough to let them do something the business owner used to do. Yes, bigger than deciding to start the business itself. It’s one of the most difficult achievements for owners because it’s driven by fear, an emotion as primitive as there is. This fear convinces us that no one else can do the work as well as we can, even when the task is unimportant but necessary.

We have a bias toward the illusion and value of control at least in part because we did everything when there was no one else to do it. We remember the good old days when we built it alone in our basement, kitchen table, garage, etc. We did it all, thumped our chests, and drank from the skulls of our competitors. Our fond memories tell us we were in control of everything. The reality was more likely daily firefighting in an environment where we were alone and nothing was truly in our control.

Control isn’t the secret sauce

We think control is an important and essential element to building and growing a company. We think this because it’s all we know. When we’re the only one doing the work – control of everything is the default behavior model. Over time, “control of everything” stakes its claim as one of the essential ingredients of our success comes to us simply because we were the only employee. That doesn’t mean it’s the ideal.

Delegating work is one of the hardest and most valuable skills a business owner can develop. We usually won’t admit to ourselves that being bad at delegating (or not wanting to delegate) is a product of our desire to preserve our illusion of control.

We convince ourselves to stay small with thoughts like these:

  • I built this thing myself when I discovered others weren’t doing this, or weren’t doing it well.” (until I delegate to the right person with the right details, assuming this was ever true, and of course the task is so critical that I MUST be the only one to do it. Except it usually isn’t that critical, it’s simply work that must be done.)
  • No one knows what we went through.” (and?)
  • No one works like an owner.” (which is understandable – they aren’t owners).
  • It’s faster to do it myself than to teach you how to do it.” (Except for the second through nth times, assuming you taught it properly)
  • Others don’t care like I do.” (even though they might – worst case, they care enough or in their own way. Again, they aren’t owners.)
  • So and so’s work isn’t perfect.” (Neither is yours)
  • I can always do it better than anyone else.” (Are you sure? Is 10% better worth not getting to that truly critical work that is of a nature that you really are the only one who can do it?)
  • No one but me has the twenty seven years of experience that’s necessary to do this work well.” (It isn’t usually necessary, we just think it is. If we use that experience to guide our training & delegation, someone else *can* do it as well.)

Control has limits

How many items can you carry at one time? At some point, you’ll either stop adding items, or you’ll start dropping things. Our minds have a similarly finite ability to control things. That “control” includes managing people, projects, relationships, much less doing the work our role demands of us.

Your leadership role requires your full attention. Would you prefer to lead your company well, or lead it poorly because your mental and physical energy is consumed by less important tasks other people can do?

Holding on too tight stifles growth. We had to hold tight when we were working alone, but it’s a serious liability when you have a team. The best NFL quarterbacks throw or hand the ball to someone else most of the time, despite most of then having great running skills. Your children won’t learn to walk if you never let them out of your arms.

An executive who works with famous bands and professional athletes regularly asks his clients how their work changed once they “went pro”. In both groups, the most prevalent answer was “having the time and mental space to focus solely on our music / on-field performance and the wants / needs of our clientele, without the distraction of little things that used to consume their time.

The fear of letting go of the control that we think helped us succeed when it was just us – is exactly the thing that keeps us small.

Hiring my assistant Lorena is one of the best decisions I ever made.
But, many entrepreneurs don’t know how to go about hiring one. (Myself included! I got lucky with Lorena!)
Many entrepreneurs don’t know where to look. They don’t know what to pay.
They don’t know WHO to trust.
But most of all, they don’t know HOW to trust.
They don’t how to let go of tasks they really need to let go of. They don’t know how to let go of control.
I get that. We entrepreneurs have skin (and blood and hair and sweat) in the game. We can’t take our eye off the ball or things slide into chaos in a hiccup.

A comment from Perry Marshall

Photo by davide ragusa on Unsplash

Categories
Employee Training Employees Management

Do they know they work for an airline?

A recent graduation had both sets of grandparents, an aunt, and an uncle flying from the Midwest into two different airports, converging on Spokane. On the morning of my mother’s flight through Dallas, a thunderstorm with a tornado-like attitude stretched from Austin to Missouri. My mother’s flight to Dallas took a circuitous path around New Orleans, past Houston, into Austin. After an hour in Austin, her flight left for Dallas and landed there too late to allow her to catch her connecting flight to Missoula. A re-route through Seattle changed her arrival in Missoula from 11am to midnight, making a 22 hour travel day. Her baggage was a different story.

We all have baggage

After all that, Mom’s bag didn’t make it to Missoula. Given that her rerouted flight terminated on a different airline & was booked to Kalispell by the original airline (later corrected by Alaska in Seattle), it wasn’t surprising.

I called Alaska baggage in Seattle the next morning. The data said the bag was in Missoula the night before, but that didn’t seem right. Even so, it required a visit to the airport – and that’s where the magic started.

Shawna (an Alaska gate agent) in Missoula took my details & filed a claim. She said the bag was en-route to Kalispell. Shawna sent instructions to return the bag to Seattle on the next flight, then forward it to Spokane since we were heading there to meet the rest of the family. Then Shawna took the first of several unexpected steps. She gave me her direct number in Missoula, telling me she’d be off in a few hours but someone else (whose name I forget) would help me if I called after she left for the day. She also wrote them a note to make sure they checked on the bag. Then she gave me the direct number for her peer in Spokane’s Alaska baggage office and the direct number for the Seattle office, just in case.

Expectations

My expectations were mixed. I’d had re-routed luggage before. Eventually, it finds me. The process is frustrating until the bag arrives. This was different. About noon, my phone rang. Trevor (Alaska baggage) said the bag was en-route to Spokane. He asked if I wanted to pick it up or have it delivered. He took my delivery address and said “Call me if it doesn’t arrive by seven” then he texted me an additional number as a fall back.

About six pm, I received a call from Alaska’s Spokane baggage office. The woman said the bag was out for delivery and would be delivered soon. About 15 minutes later, it arrived.

My bag delivery expectations were met. Despite having flown a good bit, I’ve never lost a bag. Today, a bag’s barcode is scanned so often that it would take odd circumstances to make one disappear without a trace.

My expectations of the people were a different story. I had never experienced such attention to detail and effort to make sure I always had a local phone number and a name to ask for when tracking down a bag. I was never on hold where “my call was important yet they were experiencing unexpectedly high call volumes” repeated incessantly. Instead, my calls were answered in a ring or two & always handled well.

Uncle!

The uncle arrived at midnight on the evening of the arrival of my mom’s bag. He came in on a different airline (not Alaska) but his bag didn’t. He spent much of the next day on hold with his airline’s central baggage office. They didn’t seem to know where his bag was or when it’d arrive. After dinner, I suggested he call Alaska’s Spokane baggage office. What could it hurt? He was skeptical, but called them anyway and, unlike my experience, had to leave a message.

Five minutes later, he received a return call from Alaska baggage. Even though his airline was unsure where his bag was, the woman said she had his bag. He could come pick it up or she would have it delivered. He’d have clean clothes for graduation in the morning.

I don’t know what Alaska does differently, but their people don’t seem to know they work for an airline. Does your team act like they work in your industry, or do they provide service to a higher standard?

PS: the Monday after all this happened, Mom received a discount code for a future flight “for her trouble”.

Photo by Calle Macarone on Unsplash

Categories
Employee Training Employees Sales

The role of a salesperson

I recently took a short business trip to Southern California. I conveniently missed out on the single digit and sub-zero temperatures and harsh winds that chilly Montana week. As if winter was following me, my hosts found ice on their lawn furniture one morning during my visit. While there, my host served a really nice Cabernet Sauvignon. When I got home, I called my local wine specialist to see if they could get it – it was that good. When the salesperson answered, I asked if they carried the particular winery and vintage of the Cab. They replied, “We don’t have that one, but we have plenty of other cabs.” I then said, “I understand, but right now, I’m looking for this specific one…” – and before I could finish my sentence to ask if they could custom order it – they hung up.

Opportunity missed

While I appreciated the “we have plenty of other cabs” portion of the salesperson’s response, it’s a weak effort to fulfill the role of a salesperson: Help customers meet their goals / needs and if your goods / services fit those needs – sell them. If your products / services don’t fit their needs, think long term: Send them in the right direction so they still get some value from your employer. You might think that when Macy’s Santa in 1947’s “Miracle on 34th Street” sends customers to another store it’s simply sappy old movie scripting. Perhaps it is, yet it’s also exactly what’s customers want and appreciate.

Customers value when your experts share their expertise to help them solve a problem. It’s exactly why Ace Hardware has (and promotes) the presence of “helpful hardware” people in their stores. When we enter a wine store, we expect the employees to know more about their wine (if not most wine) than we do. If you’re a local restaurant’s sommelier that won’t be true, but most of us aren’t.

Why do we enter a particular type of business? We’re fond of the product / service. We’ve gained more expertise than most over time & enjoy sharing it. People come to experts because they don’t have the time and perhaps funds) to become one – or they need expert advice soon. We have a problem to solve or a need to fulfill. Most of us are happy to exchange payment for that expertise or purchase advice. That’s why I called the wine store.

The problem with the wine store call was the answer I didn’t receive, not the answer I received. I wasn’t asked if they could try to order it for me. They didn’t offer to check with their distributor and get back with me. They didn’t even finish the obvious part of “we have plenty of other cabs” with “such as this, this and this.” I called them because the store doesn’t have stock on their website (with or without pricing). Sidebar: At first, I thought it might be illegal to list wines on your website in MT, given our love/hate relationship with our sometimes inane alcoholic beverage laws. Nope. I eventually managed to find a Montana wine store who listed specific in-stock wines on their website.

Wanted: A well-trained salesperson.

These days, the difference between a great salesperson and a good one doesn’t really matter in most situations – including this one. It’s tough to hire great salespeople because they can work anywhere. In some environments, they’ll make more than the CEO / owner. At a retail store, a passable salesperson is one who knows the product. A good one knows the products (maybe loves the products too) and makes an effort to help the customer solve the problem that brought them to your store. This doesn’t happen simply by having people fill out a W-4.

It takes training. Not one day. Not a sheet of paper with a checklist, though that can serve as a cheat sheet in the early going. Hire people who like the game you’re playing, and like the people you’re playing it with. Make them more valuable to you by training them to be better salespeople of what you sell. They should know the goods and services better than most customers. They should know why people should choose this over that. Sure, they might move on someday. In the meantime, an untrained or under-trained salesperson reflects on you and your store, not on them. You know what breeds loyalty in your customers? Knowing that there will always be a considerate well-trained expert in your store.

Categories
Employee Training Recurring Revenue Sales

Where subscribers hide: Pt 1

Watching my wife shop / interact with salespeople is always a refresher course. Gaps in customer service & sales training / tactics always reveal themselves. This is the missing piece of “Secret Shopper” type services – no audio / video. The report is fine, but you don’t get to see and hear what happened – that’s where the gold lies. We’re going to go over an experience we had while shopping in a local retail business that has a subscription model. Yes, a local retail business (a wine store) with subscribers. All too rare, but I see more of them than I used to. Bear in mind that there have been wine subscriptions by mail / via internet for decades. 

My wife is an intermittent repeat shopper at this store. They have a good selection. The sales people know their wines – and at least one of them is a standout in that department. She’s the one who really knows their point of sale / CRM (customer relationship manager) system. Isn’t it interesting that the product expert also happens to be the CRM expert – and she isn’t the owner. She’s “just an employee”, right? 

Working with the expert

A couple of weeks ago, the Mrs. sent me to pick up a white wine to go with some smoked fish sent to us by a friend in Michigan. She didn’t remember the brand name, but she did say that it was the white she thought she’d bought most often. So, being the CRM nerd that I am, I asked the salesperson “My wife wants a white wine but I don’t know the name. Can you tell me which one she’s bought most often?

In some stores, I might get a shrug or a “We don’t collect that info.” In this store, I got exactly what I came for.

Turns out that I was fortunate to be working with the standout salesperson there. She knew their CRM like a pro. She quickly found my wife’s purchase history, identified the most frequently purchased item, grabbed a bottle, and I was out the door in less than five minutes. That’s my kind of shopping.

Not working with the expert

Yesterday, we went back to this store. The expert had moved out of state, apparently for a new opportunity. My wife asked basically the same question I had asked two weeks earlier. Our salesperson, who was in the store when I was there two weeks ago, didn’t know how to find purchase history.

A promo sheet at the checkout counter mentions their monthly subscription program. Two bottles, four bottles, etc. My wife was in the four a month program a year or so ago. She quit because bottles were piling up. Four a month is too many for her.

The selection in the four month program fits her tastes better than the two month program, so backing off to two per month didn’t work. The promo sheet prompted her to ask if she could get the four bottle program every other month. 

The response: “No.”

There are plenty of possible answers to that – and most of them are questions. “No” ends the sales conversation. 

The owner questions

The owner overheard the conversation from the backroom. He steps out asks why the four per month every other month works better than the two per month. The point of curiosity is obvious – it’s the same number of bottles. She explained that high tannin wines make her feel bad, so she likes the four-per-month subscription’s selections. 

The owner says “We can handle that. Let us know when you pick up your monthly selection. We’ll be happy to swap out wines that’ll bother you.” He continues, saying that they can do an every other month plan, but will need to look into the details to make sure she isn’t charged every month.

This flexibility matters because it gets them a subscriber. She liked the previous plan she was on, but it wasn’t clear there were substitution options. Result: She cancelled. There was no follow up to ask why. Knowing why helps you keep more subscribers longer and learn about gaps in your plans.

Obvious reminder: Subscribers are sales you make every month, often with little sales / marketing effort. You have to fulfill well, regardless of tannin, to keep them. More next week. 

Categories
Employee Training Leadership Management strategic planning

What makes your customers safe?

We have attorneys, insurance, OSHA, safety regulations, procedures, safety gear, training, etc to help us protect our business, while keeping our staff members & customers safe. We know that in some markets, someone still might get hurt despite all our preparation, training, safety equipment, etc.

If you run a hotel with a pool, offer zip line rides, take people on boat rides / float trips, lead hikes or offer horseback rides into the backcountry, there are obvious risks, but almost every business has some level of risk like this. Have you wondered how you’d respond if something horrific happen to your customers while they were at your place of business? It’s one of a few worst possible nightmares for a business owner. Could you, much less your business, recover from something like that? Could your staff?

There are (and will continue to be) a lot of what ifs related to the recent duck boat disaster in Branson. It’s difficult to comprehend, much less try to relate to what the victims’ families, the employees and the business owner are going through. While it’s the worst possible time for all involved, the rest of us owe it to ourselves, our team, and our customers to learn from it.

If your business involves activities that could put your employees and/or customers in a scenario where they could get hurt, you should watch the process closely as they talk to the media, address safety issues that are discovered, and change processes while customers are in their care.

Review. Look for clues. Ask for help.

What you’re able to see from the public perspective of this accident will help, but the opportunity to learn won’t stop there. There will likely be additional considerations discussed by your advisors that they will want to share with you. As an example, you’ll want to talk to your attorney, insurance agents, licensing and related safety enforcement agencies, as well as industry groups.

As details come out about what went wrong in Branson, you may find subtle gaps in your tools, gear, processes, inspections, or training. Even if you have 40 years of experience in your business, as the boat tour business does, you can still learn from the lessons and discoveries that come out of this.

Your customers know they’re putting themselves at risk to take part in adventures. They expect your team to be experts. Reviewing your current procedures, training and equipment use is at least as important as making sure that you’ve developed enough of a sales pipeline to have the necessary cash flow to make payroll three months from now.

One more critical tool

There’s more to this than safety equipment and training.

When bad things happen, time has a way of changing. For some people, time stands still, or more commonly, slows down a good bit. For others, it accelerates.

It’s easy to find stories about highly accomplished people (athletes and others) who describe what happens when they get really good. They’ll say the game or activity “slows down”. It means that they are so ready, so fit, so well-trained, and so mentally prepared that the activity feels as if they have plenty of time to do whatever they’re good at. It looks easy when they do it because to them, it is. For the rest of us, the game or activity feels like it keeps getting faster and faster. When we try to keep up at a pace we aren’t used to, we start making mistakes.

Leadership works this way too.

When bad things happen, preparation slows things down. When you’re the owner and 20 people are asking questions at once, preparation, experience, and practice help you keep your bearings, calm everyone, and handle the questions.

You aren’t the only one who needs this preparation. Your ENTIRE team needs leadership training. When everyone else panics (and perhaps rightfully so), they will need leaders to help them find a safe way out. Leave no one out. That kid in produce might be the one who takes charge and guides your customers to safety when the worst happens.

Train your entire team. All of them will need one another to get through it, both during the event, and afterward. You’ll need their leadership most of all. If the worst never happens, you still have a team of leaders. Your customers will notice.

Photo by Symic

Categories
Employee Training

Are you testing your training?

By the time you read this, we’ll have finally arrived home from an almost six week long work / play trip. What that really means is that I worked as we travelled and she played. Ok, I played a little bit too. The beauty of having a business that isn’t tied to a single physical location is that you can do that work from anywhere. BUT… that isn’t today’s topic. I think I’ve harped on the value of remote work enough, at least for now.

This was a long road trip. We saw long “lost” relatives we hadn’t seen in 20 years, had a little bit of beach time, spent time with family and college friends, as well as knocking off a few things on our “gotta do this” list. One of the constants of a road trip – particularly one that takes consists of a lot of time in the high desert plains and mountains – is thirst quenching. There’s a certain drive through place we visit that has a happy hour twice a day – half off or very cheap drinks (no, not THOSE kind). These places are (almost) everywhere along our trip’s path, so we managed to visit quite a few of them.

At almost every one of these places, we found that we had ordering problems. An unbelievable frequency of them, in fact.

The problem is not the problem

At first, we thought it was my accent. I don’t have one, according to me. Ok, I really don’t have one and I have had enough trouble with this at drive ups that I tend to be that guy who enunciates every word slowly so that even Siri could understand it.

Didn’t help. When you’ve had this issue in Louisiana, Texas, New Mexico, Arizona and a few other states whose people talk far differently accent-wise, you start to get the idea that it isn’t you.

The same data and experiences that help you figure out that it isn’t you also help you figure out that it isn’t the person on the other end. That was the good news.

Eventually, we started asking questions. Yes, I know. Who does that?

The real issue?

At first, it really wasn’t clear what was creating this issue at so many locations. While I was still thinking it might somehow be me or engine noise, the problem was consistent in too many places, even with the engine off. Plus we were driving a Subaru, not a diesel pickup.

What was clear was that employees of this franchise system were having massive problems all over the West, Midwest, and as far east as the Florida panhandle.

After talking to a few employees at different locations (after we had trouble ordering at each of them), we found out that they were having terrible struggles with their point of sale ordering system. It wasn’t clear if it was new, poorly designed, unclear, and/or if an awful lot of people hadn’t been getting trained well, or all of those things.

It eventually became clear that the more experienced employees were doing ok with the system (think: Morning visits usually staffed by a manager), while afternoon visits were the source of the struggle. It finally seemed to come down to newer employees who may have recently started for the summer. They would be less familiar with the menu and the point of sale system, as well as the challenges of voice ordering.

In one case, the flustered person trying to take a two drink order finally called over their manager, who cleared up the point of sale issue almost immediately. The manager was very apologetic to us, but I don’t think we deserved an apology. I think the employee who perhaps hadn’t been trained enough or mentored enough was the one who should have received the apology (and some additional training).

The point? Test, train, repeat.

We encountered similar things at other businesses during our trip.

If you implement point of sale, tech support or order management systems in your business – whether you own/run a restaurant or a heavy manufacturing business, find a local fast food joint that has deployed do-it-yourself ordering kiosks.

Every manager (including senior ones) will benefit from watching the general public as they use these systems. Having done that… watch newly trained employees do the same with your systems. Only then will you know if your training is working.

Photo by familymwr

Categories
customer retention Employee Training Leadership Management

Discarding clients & the math of job security

How often are you discarding clients? When fussy, needy, and/or high-maintenance clients complain repeatedly, there’s significant temptation to simply toss them out with the garbage. Some business owners build “filters” into their marketing designed to repel such clients.

When an existing client provokes thoughts of “Life’s too short to deal with this“, who fires them? How is the decision reached? Is the process documented? How is the decision communicated to the client and to your team?

Hammers, nails & curmudgeons

I asked some friends how they describe people they’d fire as clients. Their responses included unreasonable, unrealistic, frustrated, afraid, disgruntled, troublesome, pedantic, rebarbative, cranky pants, curmudgeon, etc.

Are you teaching your team that getting rid of imperfect clients is the only acceptable solution? Owners know there are situations that don’t merit dropping a client. Owners discard clients based on their experience. Does your team have that experience to back up their decisions? Take care that your team doesn’t use this tactic like a hammer while seeing every complaining customer as a nail.

It’s essential to be careful using “You’re fired!” as too-frequent use can damage your reputation. Businesses learn to detect bad apples and few are surprised when these clients get fired. Taken too far, your business can get a reputation for arrogance. People will think you discard clients the first time there’s an objection or even a question. You don’t want your reputation to be “At the first hint of a problem or even a question, they tell people to leave and not come back.” Some prospects will hear that and decide not to show up.

The math of discarding clients

Discarding clients sometimes feels as easy as pulling a splinter. The pain and aggravation fades quickly, making you wonder why you ever tolerated them. Even so, every choice to discard a client impacts your bottom line. While getting rid of high-maintenance “time vampires” will probably improve your bottom line, you have to be careful not to let your team believe that’s the only solution available. That’s where the math kicks in.

If your team gets rid of one customer a month, what does that mean to your bottom line? You likely know the typical customer’s lifetime customer value (LCV). Owners usually know how often the typical customer buys from them. They also typically know how much customers spend on average per transaction. Combined with the rate at which you are adding new customers, you can determine what an improper “firing” costs you and how long it takes to recover from it.

Uninformed profitability math

Employees don’t usually know the financial impact of discarding clients. When you explain the financials of your business to your team, it helps them understand why you think the way you do. Tools like “The Great Game of Business” (start with the book) help employees understand how the business works financially (free resources) vs. how they think it works.

Learning how the business works from a financial perspective encourages employees think more like owners. It can alter “I’m working my tail off for $15 an hour while the owner gets rich.” to something closer to reality. Even if the owner IS getting rich due in part to the risks they took & the investments they made, “uninformed profitability math” isn’t healthy. This “uninformed profitability math” rarely create behaviors that are positive for the business.

Many employees have never had the opportunity to see how their work (and how they work) impacts company financials. Meanwhile, business owners regularly complain how their people don’t think like owners. Part of that thought process is understanding the financial impact of events that occur in the business each day. Knowing that what your work does for the bottom line carries substantial value.

A “We’re having a good (or bad) month” message to employees is rarely accompanied by data explaining why. Understanding what good and bad month means affects the security a team member feels about their job. This impacts their confidence in their ability to provide for their family – and certainly affects job performance and attitude.

What does “we’re having a good/bad month” mean at your business? What message does it send to your team?

Photo by Shinichi Haramizu

Categories
Employee Training Leadership Management

Training: One cure for sales problems

When having a conversation about sales problems, I might remind you about the folly of only taking cash (depending on the type of business). I might also remind you to eliminate the tedious & annoying out of your buying process. There are cases where that’s useful, but mostly – it isn’t. But not today. Today, I’d like to remind you of the value of training your sales team.

You’ve got questions

Heard of Quora.com? Quora is a website where you can ask questions. Many times, you’d never have access to those who answer: world-class subject matter experts. If you asked an airplane question, you might hear from an engineer who helped design it & three commercial pilots who fly it.

Why Quora? Because I found a Quora question pertinent to this discussion: “What can businesses learn from the military?” It reminds me of the not well informed “Why don’t non-profits run like a business?” question, but this is a much better question.

A Marine named Jon Davis who deployed to Iraq & Afghanistan answered: “Training”.  His answer breaks down like this: 1) A detailed process to track progress. 2) Regular job specific training. 3) An annual schedule to ensure standards are met. 4) Find & reward teachers. 5) Ignore the “training them to leave” myth. 6) Discipline.

If those six items are checkboxes – can you check any of them?

I’ve recently met several folks who work in the car business. The one I wrote about last week is the only one I’ve encountered recently who knew the product well. I don’t mean he could wake him in the middle of the night & tell me (blindfolded) how to change a timing belt. I mean he didn’t have to run to the showroom to find out the horsepower for a vehicle whose manufacturer makes cars with only two engine choices across the entire product line. Yes, it happened.

This isn’t a sales team failure. It’s a management failure. Are you preparing your salespeople to succeed? Product knowledge isn’t what sells cars. Rapport is. Guiding me to a “special value” (car that’s been on the lot too long) because it pays more than a mini (minimum commission) doesn’t build rapport.

A question about the value of rapport: What’s worth more to you, getting that “special value” off the lot, or creating a relationship that provokes me to return every x years to buy only from you for the rest of my vehicle buying days, while also encouraging my friends to do so? You decide.

Sometimes product knowledge is critical: “Can you help me find a good red wine?” The salesperson who knows less about your product than most prospects will struggle – & reflect poorly on your business. You need someone who understands the problems your prospects want to solve & how your solutions address them.

Don’t have a sales team? Still affects you.

One of the best parts of the answer Jon gives relates to on-boarding. He describes how the military trains recruits and leads them. He then compares that to the training that most businesses provide: haphazardly, if at all, and with little ongoing mentoring –  which unfortunately matches my observations over time.

You probably hire experienced people so they’ll step in & become effective quickly. Do they do it the way you want it done? Did they learn a completely different way of doing what you do? What if you don’t want them to do it that way? How will they learn your proprietary way of doing things?

Don’t assume an experienced new hire has mastered the systems, machinery, methods, and processes your business uses to succeed. Learn from their experience, but train / mentor them.

No matter what, the last thing you ought to be doing is turning them loose on your customers, prospects, products, and services and simply assuming that everything’s going to work out. Maybe it will. They might survive, or get by, or be good enough. Did you exert all that effort to find just the right person only to toss them to the lions with the expectation that they’d get by?

How much does it cost each time you have to replace a poorly trained salesperson who failed? How much does it cost to keep someone who isn’t as effective as they could be because they had to learn your ways by the seat of their pants?

Photo by formatc1

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Business culture E-myth Employee Training Employees Management

“Sink or Swim” is not training

Pentagon Secretary Rumsfeld once said “…you go to war with the army you have, not the army you might want or wish to have at a later time.” He wasn’t referring to the Army personnel, or to their level of training, but to the number of Humvees that were not armored and therefore prepared for Iraq-style guerrilla warfare, IEDs, etc.

While you don’t need armored equipment for your team, they do still need to be prepared to succeed in their roles. Failing that, they will show up and do their best. Rumsfeld’s troops may have lacked the amount of armored equipment, but they didn’t lack training.

That is one of the primary differences between the military and business: Businesses often fail to invest sufficiently in training. It doesn’t matter if they are new to the business or experienced. Your team needs training and equipment. A lack of training might prevent reasonably effective use of the equipment you provide.

Sink or swim isn’t training

Employees are sometimes expected prove their worth via “sink or swim”. They’re expected to get started and become effective and valuable on their own. Failing to do so is “sinking”, and may result in the loss of that person’s job. When the employee is new, and the skill require is sales, sink or swim is usually little more than setting up the employee for failure.

I’ve seen this touted as a means of “separating the men from the boys“, so to speak. The euphemism is about identifying who is ready and able to produce results, but the reality is more nuanced than that. When you put an untrained or poorly trained sales employee on the floor, on the lot, or wherever they work with prospective customers, never forget this: They’re dealing with prospects.

At your car lot or furniture store, you know the business. If 100 people walk in on a Saturday, you can probably tell me within a small margin of error how many are “just looking” and how many are ready to buy. Likewise, you probably can tell me how many of that 100 you’ll likely sell that day. How many of those prospects are you willing to give to someone else because an untrained salesperson loses them? First impressions are everything. If your team is ineffective when the prospect makes that first visit to the showroom, lot or office, you probably know the likelihood that they will return.

Sink or swim undermines a new (or inexperienced) employee’s confidence, which will certainly be reflected in their performance and interaction with every prospect and client. Worse yet, your prospect may leave and never return because they had an ineffective, unproductive experience with someone who simply wasn’t trained well enough to provide for their needs.

Think of the most valuable customer you have. The one who buys furniture every 10 years for their 50 employee office. Or the one with a fleet of pickups for their on-site service people. How would you feel if you found out your new salesperson was sinking when they met the person who would have been your next “most valuable customer”?

Training isn’t fluff. You can tie real dollars to it.

Got the basics?

They’re called “The basics” because everyone should know them. Don’t assume everyone knows them. Train the basics. Vince Lombardi started a championship run by saying “This is a football” to a roomful of experienced pro football players. Take nothing for granted.

As I visit businesses with the intent of making a purchase, I routinely encounter salespeople who exhibit behavior that leaves the impression that they are untrained, or perhaps under-trained. Some are young and perhaps inexperienced, yet some are not as young and not as inexperienced.

Commissioned salespeople walk around without business cards, don’t know their product as well as the prospect, don’t attend to new arrivals “in the sales arena”, etc. At some level, these problems are the salesperson’s responsibility, yet new and under-trained salespeople don’t often realize they are under-trained. They can lose a great prospect who “appears indecisive”, but in reality is annoyed. Ultimately, these issues are on management. Management decides who gets trained, when, and for what skills.

Good salespeople deliver value. I visited a Michael’s Saturday to get a frame re-glassed. The employee in framing told me exactly what would happen, when it would happen, what else I could expect, and the guaranteed service window. This was not a big ticket purchase – yet this person was obviously well trained in what to communicate to me. I’ll go back because that guy made a routine purchase memorable. Isn’t that what you want?

Photo by Jay Phagan