Hiring well saves money

When times get tight in our businesses, we look for places to cut expenses (as well as increase revenue). We might cut marketing costs based on the size of the expense (not wise). You might review the performance of your lead sources & reduce / eliminate some that aren’t performing well. In a business that manufactures things, we’d look at automation and raw material costs. We also look at ways to reduce waste. We’re also likely to look at hiring and staff-related expenses.

Getting rid of folks generally creates production and process challenges, but there are “easy” cuts sometimes. So-called easy cuts might include “extra” people, poor performers, and folks who aren’t adapting well to your culture, work, etc. Thing is, these are last minute cost-savings tactics with their own costs – and I’m not referring to unemployment insurance or severance. Our hiring process and ongoing curation of our team rarely gets a look – and that’s where the long term savings are hiding.

Careful hiring can avoid disruption

In general, business owners are a little impatient. Like the girl in Willy Wonka, we want it NOW. However, that sort of impatience is not a good investment at hiring time.

When we don’t take the time to learn enough about a candidate, we risk disrupting our business far and above the level of disruption that a need or departure has created. When we hire badly, we take even more time to fill the position. We create a mess trying to fit the person in, salvage the hire (or place them in another role), and perhaps get rid of the person and end up looking again. Making a hiring mistake can turn the wrong candidate’s life upside down. Getting hired is as much of a pain as hiring someone – and just as difficult.

A bad hire doesn’t imply a bad person. Sometimes, you get the wrong person for the role. Maybe there’s a skill / experience mismatch, or a culture fit that doesn’t work. Sometimes, there’s a behavioral / motivational issue. As such, it makes sense to work a little harder and a little longer to find the right person the first time. 

Hiring better almost always takes longer and it’s certainly more work. I hear and read a lot of “can’t find anyone qualified” comments, but that’s often more about your company, the role, and your pay / benefits scale than it is a lack of people. Hiring isn’t something to rush. It’s one of the biggest investments you’ll make. Hiring before you’ve found the right candidate can be incredibly costly in time, money, morale, and other areas. 

A rough example

A scenario like this played out in Missoula last week. A prominent public facing position became open due to a medical retirement. A replacement was named rather quickly, at least it seemed so. Soon after, the replacement’s comments on social media surfaced. Among other things, they were not particularly complimentary of the company’s industry. Other comments by the candidate received a lot of reaction. In some cases, they wouldn’t matter. It appeared the candidate’s social posts hadn’t been reviewed by the employer, who rescinded the offer the next day. 

Reviewing a candidate’s social media posts may seem like a trivial thing to do. It might even seem like a silly waste of time. However, it’s become essential part of the hiring process and it’ll likely take less than an hour. 99% of the time, you’ll find nothing disqualifying. You’re almost certain to learn more about what’s important in the candidate’s life. The remaining one percent of the time – it’s likely to save you from making a mistake. This is particularly true for hires that might stick for 20-30 years.

I know… when you find a highly qualified candidate, you don’t want to look for disqualifying info. Do it anyway. It’s important to understand as much as possible about a candidate BEFORE you hire them, for your sake and theirs. 

That position has been temporarily filled by the person who planned to retire. My guess is that this generous act will allow the business a bit more deliberate hiring process this time around. 

This isn’t about what happened in Missoula. It’s about what might happen to your business. The time you might waste. The disruption to your business and to the life of the person you hire by mistake. Hire carefully and intentionally. 

The future of ethics

The news seems to document a consistent parade of unethical behavior by executives. You see it both in “startups” (Uber, Theranos) and in more traditional large corporations. Even if you ignore Enron, Tyco, and the well-known cases, they’re in the news almost every week. Have you ever wondered how so many people with a severe lack of ethics managed to get into leadership / ownership positions? The reasons add up.

You hired them.

My answer? “You hired them.”

OK, maybe it wasn’t you specifically. Think back through your career. Any of us who have hired someone can probably think back to a time when something happened related to a hiring, a firing, or a delivery of discipline – and we let something go.

Without thinking hard about it, your natural response is probably “Nope, not me.” I suspect that would be my answer as well, so I decided I should think back a bit and provide some examples.

Was there ever a time when a resume didn’t seem 100% up and up? Maybe there was “a little something” that made you wonder. Did you investigate? If not, did you hire them anyway?

Was there ever a time when you didn’t speak with every reference on a resume? How many hires have you made where you didn’t talk to ANY of a candidate’s references? 

Have you ever assumed a degree listed on a resume was legitimate and decided not to take the time to confirm it? 

You didn’t fire them.

Have you decided not to fire someone who deserved it – and not because of paperwork or contract requirements? 

Have you ever said “No” when someone asked if they could work from home, even for a day? If you said no, was it because you didn’t believe they would actually work? Or perhaps because you didn’t believe they’d give you a full day’s work? If you can’t trust them to do that, how can you trust them at all?

Have you kept someone who deserved to be fired, only to see them repeat the behavior that you didn’t fire them for? 

While you might’ve thought that you were doing someone a favor, you may have encouraged them to continue that behavior. It’s also possible that you helped them see the light & turn things around. Only they know for sure. 

Hiring and not firing adds up

OK, so we can probably all remember maybe one of these situations. Perhaps you can recall seeing it happen as someone more senior overrode a decision you made. Or you watched them make the decision as a leader elsewhere in the company, but you had no input into it.  You might even have been a line employee who watched it happen with a new employee. Maybe you were told to “get a warm body ASAP” and pressured to make a hire before you were ready. 

No matter how it happened, it reinforces the bad and/or unethical behavior.

Thinking back, these little things may not seem important. They put something on their expense report that really shouldn’t have been there. It’s OK, they were on the road, etc, etc.

Reinforced bad behavior creates more instances of bad behavior.

Eventually, the size and scope of this behavior will increase as success is repeated. Why? When someone gets away with these things, they gain confidence to do it again. The more it happens, the more it seems normal. The more confidence they get, the bigger the reach.

But that isn’t the worst of it. What could be worse? Like many things, ethics has a network effect.

The network effect works for good & bad. Team members with poor ethics (at any level) likely have more tolerance of bad behavior from others. Once they get into a leadership role, are they going to come down on that sort of behavior?

Everyday ethics sends signals

Recently I suggested that when people tell you who they are (in words or via behavior), believe them. Everyday behavior sends signals to indicate how they’ll behave when you leave the room. IE: how they’ll act when you’re at lunch, out of town, or sick.

Which of your people do you feel you can trust while you’re gone? Discuss it with them. They need to know how you feel. It sends signals about your leadership.

PS: The rest of your team already knows about these folks.

Why role specific training matters

Last week in “Reflecting on Leadership“, I said “The more I thought about it, the more disturbing this reflection became. I thought back to any number of employers and client businesses and the training they offered to new team members. Training was never about preparing a new (albeit, sometimes experienced) employee to succeed / survive IN THE ACTUAL SITUATION / ROLE.

It’s important to unwrap this & explain why I find this disturbing.

Why “disturbing”?

I said “disturbing” because the short and long term impact of this lack of role specific training hit me. It impacts the company’s success, the employee’s short term success in the role, and the employee’s career in the long term.

Think about the perspective of the employee who steps up. Employees might be stepping outside of their comfort zone in order to take a shot at this role. While access to opportunity is important, employees like to help their company & manager by filling an important role. Consider the potential chaos created by the departure of someone with “big shoes to fill”. Everyone knows the impact of that departure – yet someone is likely to volunteer to take on that role.  Employees who step up to fill a role created by increased workload feel similarly. 

From the owner’s perspective, each of those situations imply that success in the role is important to your company. An existing staffer who steps up deserves to be well-prepared for the role.

What happens if someone who “steps up” to take on a new role is “thrown to the wolves”? The natural response is that other employees will be less likely to step up when the opportunities present themselves. Eventually, the perceived lack of opportunity will provoke them to leave your company. 

They reflect what we teach.

The lack of role-specific training teaches the employee what “normal” is. As their career continues, they’re likely to manage others – and will likely do so as they have been managed. There will be exceptions, of course, but our own experience tends to be our teacher. Consider the long-time employee who becomes one of your senior leaders. Would you want them based role-specific training decisions based on the training they received? 

Anything you do is everything you do. It all ties together. 

Employees who join other companies in your industry send a message. Not because they left you, but by reflection. Their skill set, experience and how they work reflects upon your company. Your peers and your customers will eventually figure out that your team is “making it up as they go along”, if that’s how things work. Poorly trained people are easy to notice. 

What about seasoned staffers?

You might expect them to step in and “hit the ground running” since you selected them because of their background & experience (among other things). Even so, experience & background aren’t everything. New team members joining from “the outside” should take part in discussions about your company’s culture, resources, role expectations, etc before a hiring decision is made. Culture is a critical piece for experienced people. Behaviors expected / tolerated elsewhere can cause failure of a new team member as if they never had a chance. 

Avoiding the blank sheet

While the specifics of role specific training will vary, some topics likely occur across industries.

Examples to get you started:

  • Specific duties of this role on a daily / weekly / quarterly / annual basis.
  • Process-specific training required to succeed. 
  • Where / how do the duties in this role fit into its department? 
  • How does this role’s work fit into and contribute to the company’s big picture / mission?
  • Information / data received regularly.
  • Which events to be concerned about.
  • What events to expect.
  • Events you should be concerned about – if they don’t happen.
  • Data the company creates and/or collects that’s related to this role.
  • Expected deliverables & their due dates.
  • Sources of industry info that should be monitored.
  • Industry influencers to interact with / follow.
  • Available ongoing training / certifications needed.
  • Company’s policy on getting initial & advanced training. Time out of office, travel, tuition, reimbursement, etc. 
  • Time normally required in this role before going to advanced role specific training.
  • Company experts (in this role’s context) and the person whose job requirements include mentoring the person in this role.
  • Internal company groups related to this role / department. When / where they meet. What to gain from them. Insight they need. 

What ideas / suggestions do you have?

Sell. Don’t simply take orders

For many businesses, the best month or two of the year ended late last week. For others, it starts next week. Your “big month or so” might be some other time. The real question is, will you sell, or will you only take orders?

This year, many businesses and their teams chose to take orders. You probably experienced this personally at least once this year. Anyone can take orders. Maybe they’ll need a form, a point of sale system or a yellow pad combined with some guidance from the customer, but ANYONE can take orders.

Does “anyone” work for you? Or does your sales team have industry expertise? My guess is that the latter is true.

Taking orders

The last time I was in what should have been a consultative sale, rather than speaking to someone with industry expertise, I was given to an administrative assistant who appeared to have little domain knowledge. The admin was following a computer form to sell me what I appeared to need. I’m OK with that when there’s no choice or when the sale is doesn’t involve financial risk, safety, or similarly serious matters.

Even when those things are involved, it’s OK to start the process with an admin and a computer screen when there’s follow up by someone with industry expertise. Unfortunately, there was no follow up by anyone in their office to be sure that I got not only what I wanted – but also what I needed.

Customers buy stuff.

Sell

When financial risk or safety is involved, someone has to be there to consider what carnage might be introduced into your clients’ lives. Don’t make your clients do your job. I would be far less concerned about the admin-driven sales process if follow up occurred. In this case, the downside risk is awful, annoying, inconvenient and time-consuming. They know this.

Despite this, I wasn’t asked about a four dollar a month option that would manage much of that risk. This is why follow up occurs. While it will almost certainly increase your upside, it will also show your clientele that you’re taking care of them.

You can show the team what taking orders feels like, then show them what selling feels like. Ever talked with a bad (or perhaps poorly trained) life insurance salesperson? Ever talked with a good one? The difference is amazing.

If there’s any sort of consultative selling process in your line of work, the difference probably feels amazing to your customers. It doesn’t matter what business you’re in.

For example, go to WallyWorld to consider buying a power tool. Got questions? What will happen? Now go to Ace or the Depot on a Saturday mid-morning. I suspect you’ll find the experience differs.

Customers often buy solely based on price. Clients tend to buy based on the expertise of those caring for them. Sure, they might run to WallyWorld for a commodity, but when domain knowledge is essential – they’ll come to the expert.

Clients are taken care of.

Review their work

If you do have an admin or inexperienced salesperson take care of the initial sale, review what they sold to your client.

Not simply now and then. Review EVERY sale.

If you have to contact the client to fix or complete the sale, be sure to include the person who made the initial sale. Call or email. Ask questions. Make sure they got what they wanted. Ask questions to make sure they got what they needed. Do you need to suggest any changes based on your experience, or what you know about me? Do you have questions that aren’t part of the form the admin uses? Perhaps that form is issues by your national provider and you need to apply some local knowledge to properly configure a purchase.

If the admin or inexperienced person did everything right – tell the client and tell whoever made the sale. Both need confidence in your team members with less experience.

If it didn’t go well, it identifies an opportunity to review your process and improve the sales materials your team uses, even if that means yours are over and above what the national dealer provides for you (or perhaps forces on you).

This coming year, decide to sell. Anyone can take orders. Remember: Customers buy stuff. Clients are taken care of. There’s a big difference.

Are you using comfortable tools?

Almost all work teams use tools. Sometimes these tools change over time, sometimes they don’t. Some tools have a long history and rarely change from their original form – other than perhaps the materials they’re made of. The pocket knife is a good example. While it was once wood, bone or stone, over centuries it evolved to steel and other metals. Today, you can buy a pocket knife in almost any form you want. If you have the right tools, you could make the knife yourself.

Comfortable tools, comfortable shoes

We can get so comfortable with a favorite tool that we don’t consider the use of alternatives. In some cases, we might be blind to alternatives or improvements. Either we don’t realize that everyone who generally does what we do has moved on to new, better, safer, or more productive tools, or we aren’t paying much attention to changes in our industry.

Tools become like comfortable shoes or a car that we’ve owned for a long time. They fit just right. They don’t give us blisters (real or mental). We become so adept at using them to perform our work that they become a part of us. We can use them to perform a task and find ourselves done with the task and realize that we performed the task without really thinking about it. At that point, work becomes much like muscle memory. We can do it inattentively or without focused thought.

While this sort of comfort and familiarity is a good thing, we need to be careful not to let ourselves be lulled into complacency.

Are your tools state of the art, or close?

When we don’t get outside of our comfort zone on tools – and this could be tools of any kind – things can happen to our work and our output that we never saw coming. If you still use a claw hammer for every nail you drive, the houses you build will be as sturdy as those built by someone with a modern tool like the pneumatic nail gun. The problem you might run into is your level of productivity would be the close to what it was 40 years ago. That might seem ok until your ability to complete a structure in a particular time frame is compared to builders who use nail guns.

The nail gun is an example and these issues aren’t limited to any single trade, skill, or career. Even if you love your industry’s equivalent of the claw hammer, it’s worth taking time to review the alternatives that have sprouted in the last year. Some industries experience tool changes quite frequently. In particular, software changes in many industries, but there are many other changes that occur frequently that you may not want to (or need to) switch to. Even so, stay aware of them.

Flavor of the month

Tools in some industries change so frequently that keeping up with them can put a serious dent in productivity. Thrashing around because you’re constantly changing to the “flavor of the month” tool-wise adds hidden burdens to your productivity and costs to the bottom line. This is one of those areas where you see software changes creating problems. This isn’t as much about the software industry as it is about the industry where the tools are used. The software business has plenty of challenges with flavor of the month technologies – but they aren’t alone.

If you feel like you are repeatedly tempted by the “bright, shiny object” tool-wise, stop to reflect a bit on what’s creating the desire to switch to another tool. Is it desire or need? Marketing tools frequently fall into this category, while proven, productive activities such as the manual labor of following up after a sales call are neglected.

Tool changes are often positioned as eliminating the need for a skilled craftsman (regardless of gender), or eliminating the need for a tool user with substantial training and experience. Safety is often a prime component in the introduction of newer tools. None of these things replace training, skill, and experience with a tool. Even with 3-D printing and similar technologies, there’s skill, experience and training at some point in the process.

Build a process with your team that evaluates new tools and gets people to stretch their comfort zone beyond the tools they’re familiar with. This tempers “random” tool changes & allows both experienced & novice staff to offer input & learn the business process for evaluating tools.

Photo by moonrat42

Sustainable revenue demands leadership

Recently, an employee of a tool company publicly commented (in a snarky way) about another vendor in their market. The target of his remarks isn’t a competitor. They create tools which complement what’s created by tools sold by the company that the snarky guy works for. Do employees who publicly snark about a vendor (or a client) think about the outcome of a vendor conflict that escalates badly? Perhaps. Let’s take a look at what’s at stake. The situation speaks to the leadership you provide to your people, even at a small company, and how it affects the sustainability of your company, and possibly that of your market.

What does sustainable company really mean?

We talk about sustainable companies and how culture, hiring, marketing, product, service, and leadership all contribute to create a company that lasts a very long time. Let’s tear this down into the pieces you and I can directly relate to. We’ll do it in the context of the two companies I’m referring to, but keep in mind that these things affect every company – including yours.

Many millions of dollars (and other currencies) are made each year from work created by the tools sold by the company that snarky guy works for. The company is rather small and one might think they’re insignificant in the big picture when compared to the big vendors who own that market internationally. You might think the same thing about your business. Don’t. When you look at regularly performed analyses of tool usage worldwide, the snarky guy’s company rarely appears on the list. In the rare occasions when it does appear on such lists, it’s in the second 50 or second hundred. In this market (perhaps like yours), it may seem insignificant. As such, why should we care what one employee said in public, right?

The leadership of that “insignificant” company should care. As should you when your people speak.

The math of an “insignificant” company

While there may “only” be 5000 to 10000 people worldwide who own tools made by snarky guy’s company, a portion of them are generating a good income – good enough to support their families for decades in some cases. This is not “random math”. I know a fair number of these folks. Many have employees. A few have 50 or more employees in the U.S. and/or scattered around the globe, and/or their products are a critical tools for companies with many employees.

When you take that community as a whole, we’re conservatively talking about between 100,000 and 200,000 people affected by the income generated via products created by these tools. Included in that figure are employees, customers, family members of the vendors, client companies, and other groups directly affected by that income. Expand that to the users of the products created by these people by adding those who make a living from the products. Add those making a living where these products are a critical tool in their work day. Now add their employees and families. Add the vendors all of these companies and families buy from. While this tool isn’t a global leader (and that’s OK), it still creates a significant amount of impact. For those who keep the lights on and their kids fed based on income rooted in those tools or businesses run by products created with those tools, it’s quite personal.

I suspect the 100,000 to 200,000 figure is quite low, even though it’s the estimated cumulative impact of one small tool maker who rarely (if ever) shows up on the radar of their industry. Small, much like the impact from any number of small businesses in your town. Including yours, perhaps.

So how does leadership affect sustainability?

The impact of even the smallest of companies must be taken seriously. Your company may seem insignificant compared to large multi-nationals, but the sustainability and leadership of your company has real impact. It affects homes, cars, kids, retirements, groceries, utility bills, and college plans for more families than you may have considered. Your team’s behavior follows the leadership example you set, which reflects upon your community, your company and you. Counsel your people about speaking about your company, your clients, your competitors, and those you collaborate with even in the smallest of ways. The smallest of things start a forest fire. When they do, everyone gets burned. Photo by Payton Chung

Work, Caring, and Filtering Employers

While last week’s “don’t work and don’t care” piece was inspired by comments about millennial workers, those “tests” evaluate things important about all prospective employees. Yet there’s more. One non-millennial responded: “Saw your blog post. Filtering employees is only part of the problem. The other side of the coin is filtering employers.

Exactly. So how do you filter employers?

Don’t filter employers because…

Do you avoid employers who filter prospective employees as I described? Don’t. The more care someone takes when hiring someone to join your team, the more likely that person will fit in and carry their share of the load. Good employers have learned to place small obstacles or tasks in the process to identify those who don’t pay attention to details and/or don’t follow instructions. “Email your resume to gimmeajob@company.com in Microsoft Word format” tells someone you aren’t a bot, you read and follow instructions, and you have a baseline of necessary skills. Can you use Word? Can you email an attachment? Is your grammar horrific? Did you use a spellchecker? If you submit a resume littered with errors, employers will rightly discern that you aren’t a good fit for their work, or the quality their work demands. For some jobs, these kinds of skills things are critical – even if they aren’t the core job skill.

Some employers have a complex interview process. As long as the interviews are engaging, it’s OK. If some interviewers are disinterested or not engaged (such as during a team interview), give the impression they don’t want to be there, or are unprepared to interview you, investigate. Ask about their hiring process. They’ll either be able to describe it, or not. If they tap dance, beware. Ask why they are involved in the process of selecting you as a candidate, but do so late in the discussion. You don’t want probing questions to take the interviewer off-task.

Even so, they need to sell you on their company as a good place to work. How prepared for the interview was this person? Did they seem to know little about you? Did you get the impression they were reading your resume, cover letter and other materials for the first time while conducting the interview? This could indicate a lack of organization, a lack of preparation, a random “Hey, go interview this person” assignment, or it could be that the person who normally conducts that interview is traveling or sick.

Filtering employers

You already know that you’ll be asked if you have questions. Do you prepare for them in advance? It’s clear from my comments that you should expect the interviewer to be prepared – and the same holds for you. The quality of your questions is critical.

Your questions during the interview:

  • Indicate whether or not you did your homework on the company.
  • Identify reason(s) to walk away, or become even more enthusiastic about the job.
  • Help the interviewer figure you out while letting you play detective.

About 20 years ago, I flew to West Virginia to interview for a senior executive-level position. Something seemed off, so I dug deeper than usual. At the time, online information was scarce, except for stock market info. I found news of a buyout, a bankruptcy, & reorganization. I asked about these things during my visit. They were floored – no one else asked about these events. They told me later that these questions were the turning point to them making an offer. I didn’t take the job, but I learned a valuable lesson about homework.

Ask about:

  • … company meetings: Do they have an agenda? Are people there who don’t need to be? Are they frequent or infrequent? Are they productive? These things speak to management style and organization, among other things.
  • … projects: How are projects managed? What happens after a successful project? What about an unsuccessful one? Ask to hear project “war stories”.
  • … the sales team: Some companies have them, some do not. The longevity of the sales team, if there is one, can indicate how things are going.
  • … how they use data: Is there a CRM or other strategic data use?
  • … their on-boarding process. What should you expect day one?
  • … crisis management. How did the last crisis / emergency get handled? What did the company learn from it? Was it something that allowed a change in process / design so it could be prevented in the future? How did this affect the staff?

If someone wonders why you care about these things – tell them that you’re looking for a solid, well-run company to grow with, not simply a paycheck.

Photo by adpowers

The Value of Trust

In personal relationships, trust is something we generally have a handle on. We know whether or not to trust a family member or friend (and how much) based on their behavior over time. In a business environment, things may not be that simple. Think about it… If you have employees, do you trust them? If you have people working under contract, do you trust them? If you work for someone else, whether you’re considered an employee, team member, associate, or staff member, do you feel as if the business owner (or your manager) trusts you? Likewise, if you’re an employee or working under contract, do you trust your manager / the business owner?

Brick by brick, we build trust over time, yet it can be lost in an instant. What creates that trust? Your pile of bricks grows as time passes based on your consistency, dependability and/or responsiveness. And what else?

What owners need to trust a team member

What do owners see in team members that provides the faith to trust them? Owners like to know you have their back. They’d like every employee to behave and think like an owner at some level. Note that I said BEHAVE and THINK like an owner.

The best employees think like an owner, even if their responsibility is limited to coffee machines, ice machines, and floors in your building. When you think like an owner, you want the machines to be cleaned and disinfected regularly so no one gets sick, even if they don’t get sick enough to take time off. Clean, puddle-free floors are safer than cluttered floors that occasionally have puddles like the one that your peer slipped and cracked their elbow on.

When you behave like an owner, you don’t walk past that puddle because you aren’t the one in charge of the floors. You mop it up before someone gets hurt.

What team members need to trust a business owner

Some owners work 80 hours a week. When owners think “behaving like an owner” means their employees should also work 80 hours a week, they aren’t really looking for people to behave like an owner.

Owners: What trust doesn’t mean

If you are thinking “I can’t trust my employees because…”

  • they don’t work as hard as I do.
  • they don’t think like an owner.
  • they don’t take ownership of their work.
  • I have to monitor everything they do.

Ask yourself if you worked as hard as the owner did in your last job. Rather than expecting them to be as vested as you (assuming you have everything on the line and everything to gain), consider your last gig as an employee. How’d you feel about it? What’d you like? What’d you dislike? Did you trust the owner? Did the owner train you to think like they did?

If your people don’t take ownership, do you encourage them to take responsibility and own their work? More importantly, do you reward them based on those actions? Do you “over-manage” them? Some might call it micro-management, but over-manage might be more descriptive.

MBWA (management by wandering around) isn’t micro-management. Training isn’t micro-management. Good hiring, middle managers, documented work processes and management systems take the place your innate need to “monitor everything they do”. It’s an adjustment as your company outgrows you – which it should do. Employees expect owners to focus on strategic work that prepares the company for its next challenge(r), not over-managing.

Employees: What trust doesn’t mean

If you are thinking “The owner doesn’t trust us because…”

  • they installed a security system, digital access keypads for some areas, etc.
  • they installed security cameras.
  • they ask us to have a peer confirm bank deposit before we head out the door with the bank bag.
  • they ask us to have a peer double check the shipping list before we close a box going out to our largest commercial customer.

… you aren’t thinking like an owner.

When you complain about these things, it sounds like you aren’t interested in protecting the company’s assets or reducing the company’s risk. The value of double checking deposits or shipments to an important customer is obvious. Mistakes happen. Security systems limit access to assets by those with no business need to access them. Increased risk increases costs. These systems impact insurance costs & provide evidence gathering capability that protects good employees from bad ones.

When a family member threatens their ex who works with you, your spouse or your kid, it’s the owner who worries about whether or not it’s safe to allow people to come to work. Before you doubt that, bear in mind that I’ve lived that situation and had those thoughts. You can’t install security cameras and harden your business overnight. You have to be “a bit more ready” when you can afford to be.

Put yourself in the other person’s place, no matter what your role.

Consistency vs. inconsistency

Consistent behavior, delivered consistently, is looked upon by your clients as a good thing. Even if your consistent behavior is patently customer antagonistic (yes – such companies do exist), at the least, the customers who continue to tolerate such behavior will know what to expect from you. On the other hand, inconsistent behavior consistently drives customers away. Think about your favorite restaurant. Why is it your favorite? Is it because the food is sometimes hot, sometimes cold and sometimes just right? Is it because the service is sometimes friendly, sometimes unfriendly? At your favorite hardware store, is the staff helpful on some visits and inane / incompetent / ambivalent during other visits?

Why does consistency matter?

Customers like a predictable outcome. They provide comfort when customers aren’t comfortable. This is particularly common when they are out of their element – such as during travel to an unfamiliar place. You’ve been flying all day, you’re tired, and you’re famished. You have a big day tomorrow. You may want some comfort food, but you also want a high level of assurance that you aren’t going to end a long travel day with a bad meal or an disconcerting experience.

One of the primary reasons that franchises do well (and that customers revisit them) is that they have an operations and training program that’s consistent across all locations. This includes a common and frequently updated operations manual that documents each job process in the business. However boring they may seem, you can generally depend on the consistency of behavior, service and product whether you’re visiting a franchise location in Springfield Illinois, Springfield Missouri, or Springfield Georgia. Franchises don’t have sole rights to having documented operations processes or a consistent training regimen for their teams. Your small business can create and use those things as well.

Over the past 20 years, there are two places where I have seen the most obvious differences in these areas:

  • the employee on-boarding process after a new hire
  • process documentation for day to day jobs.

Interestingly, these are connected, since one of the first things a new hire often encounters is a lack of process documentation for a job they’re expected to do. This doesn’t mean they don’t receive training, but without a documented process, the training they receive will be inconsistent from trainer to trainer. Each employee is likely to perform the task with slight differences and train differently as well. One of the best things about documenting a process is the discovery of nuance and surprises that occur when producing the documentation. The process being documented rarely manages to fail to produce something that the person documenting it will not be told by anyone who performs the task. There will be dependencies on materials, staff and/or timing. There will be gotchas, both known to management and most likely unknown as well.

Left undocumented, these differences in business process performance and execution become dependent on the attitude, experience and wherewithal of the staffer performing them. Consider your business. Do processes exist in your business that, when performed differently, can substantially alter customer experience? Does that experience depend on performance trifecta of attitude, experience and wherewithal of the staffer? I suspect it does. What tools or systems (even a checklist counts as a “system”) do you use to assure that quality standards are consistently achieved by your staff?

These things don’t have to be perfect on day one. Start small and implement incremental improvement, both to your processes and the documentation and training intended to improve them.

“Without a leader, there are no standards. Without standards, there is no consistency.” – Chef Gordon Ramsey

Remaining: On-boarding

One of the single biggest differences between most small businesses and high-performing businesses is their new employee on-boarding process. One of the best assets for your on-boarding program is the process documentation discussed above. While it shouldn’t be the only component of on-boarding, it’s a critical one. On-boarding needs to include delivery and configuration of work equipment, internal IT systems, mundane work space gear like phones and staplers, facility familiarization, emergency training, process training, culture (which should have been part of hiring), and how to deal with various human resource-related functions. You can probably think of others. If you’ve ever held a job working for someone else, think back. What made joining a new company stand out at the best companies? What made it regrettable at the worst of them?

Photo by Internet Archive Book Images

Employee metrics and the fantasy football parallel

My son and his friends talked me into joining their NFL fantasy league this season. A fantasy team owner “drafts” players and those players’ statistics are used to score points each week. You face off against one other team owner in the league. The owner whose players score the most points that week determines who wins. It struck me this week that gathering good employee metrics, monitoring them and taking action on the data is not unlike what you do when managing a fantasy sports team.

The last time I played a fantasy sport, the draft involved Larry Bird and Magic Johnson. It was 1986. Getting statistics for every game was laborious. You had to scour the newspaper to get the data you needed and for NBA basketball, it became a daily chore due to the volume of games. In a lot of ways, the difficulty of getting a player’s game statistics for every game for a fantasy sport 30 years ago reminds me of the difficulty of gathering the right employee metrics these days. For some data, you really have to want it.

Employee metrics should include condition

In the NFL and other professional sports, there are well-defined rules and timelines for determining whether or not a player can play, communicating their condition and deciding their availability for the next game. Scrutiny on professional sports players is very high and the data is readily available, so it’s easy to determine if a player is injured, will play this week, has the flu, is dealing with a family member’s illness or death, etc.

In your business, things are not that simple. While you’ll know about an employee family member’s death, you won’t often learn about an employee’s family drama or relative’s illness until it has progressed to a state that impacts the employee’s ability to show up at work. The impact starts well before you find out about the situation.

Sometimes it isn’t sickness. Employment situations change. Kids move back home, or go off to college, or both. Weddings, divorces, financial and legal struggles and other things can put stress on an employee, even if those things aren’t their life changes. When these things happen to an employee’s child, parent or sibling, they can affect work performance, whether they like it or not.

In the NFL, a player has to go through the concussion protocol after “getting their bell rung“. They must be cleared to play football by someone who is not associated with the team. While it’s mostly about caring for the player’s condition and their future health, it also has a big impact on the team. In the old days, a player could brush aside such concerns and play anyway. Sometimes this helped the team, sometimes not.

Your employees have the same types of issues. Who is monitoring their condition? Are the people you have “on the field” in optimal condition for the task? These things are a form of metrics, but they’re difficult to gather / measure. What would help them return to their normal performance level or better?

Typical business metrics say a lot of about day to day performance, but don’t lose sight of more personal “metrics” that can affect employee performance.

Who’s the opponent?

In a NFL fantasy league, who you “play” that week is very much determined on which team they are playing. The quality of the opponent is everything. The best quarterback in the league isn’t likely to have a huge game against the best defense in the league. To score higher, you might shift to a quarterback who’s playing against a poor defense this week.

In your shop or office, the opponent may be a work task, the sales prospect, or that meeting with partners. While you probably don’t think of them as opponents, the same ideas apply. Given the situation, task, and people involved, do you have the best available players on the field? In other words, are the right people involved?

What’s the history with those people, tasks, and situations? Does that impact who you assign to the job? Pro teams practice against an opponent’s “look” the week before they play that opponent. How do you test your team in advance of the real thing?

Metrics are situational, behavioral and yes, hard numbers too.