Create and cultivate
Learn how to build your team today for tomorrow’s economy
By John Kennedy
As our industry slowly returns to the new normal, and ourselves and our teams begin to recover from the sacrifices we asked to make (reduced hours, more with less, and hopefully trimming the underperformers), the need to rebuild, renew and re-engage has never been more important.
As I write this, I am in a Midwestern town readying to work with an industry leader that has adapted to the “new norms” of the green industry, and is meeting them with great success head on.
In fact, after many years of pondering change, and even punting change, they are now fully engaged with the process of change, and are moving the ball down the field with momentum on their side.
“When the pain of remaining the same is greater then the pain of change, it is then that we finally commit to what we have instinctually known for quite a while.”
Overall, there are three types of change—change by crisis, change by drift and change by design. To build a new and improved culture to meet the new and improved needs of our clients, we need to design/build our team.
Change by design
I think we are all done with change by crisis, so let’s focus on change by design.
The first step in building your team is called forming, and that means looking at every player and determining the right seat for him or her on the bus (think Jim Collins’ book Good to Great).
Four years ago I encouraged clients to trade up to the talent that is going to get you where you need to be. If you haven’t yet, do it now.
Second is called storming—facilitating and debating the changes necessary to get to where you are headed. Keep in mind, having the right team is far more important than the direction you are headed, because with the right team, anywhere is possible.
The third stage is called norming—getting everyone aligned to a common cause, purpose or direction. And this is where the traction begins.
Whether your cause is a 98.5 percent fill rate on your orders, reducing energy usage, raising the average sale on each transaction/client (up-selling green) or increasing your customer satisfaction ratings, these can become the established norms that everyone can believe in, buy into and deliver.
Some clients chose values such as integrity, respect, faith, teamwork and commitment as their cause. These are also powerful “norms” to consider.
True leadership is where the norms are established, communicated and measured for success—daily. The team is only as great as the leader who is willing to invest to make them great. How invested are you?
And finally, my favorite, performing. What incentive programs do you have in place to make sure that not only engagement, but also rewards for excellence, are in play?
I love creating incentive programs for organizations. It is established in a concept called the “Great Game of Business.” In essence, you cannot expect what you cannot inspect. And rewards for excellence in inspection are a very key ingredient in building and sustaining a successful team. Setting the metrics in place for basic success is important, but what is imperative is what happens when we go above and beyond the call of duty.
Consider other norms/causes such as energy reduction, fuel usage, safety, inventory management, shrink, accounts receivable, sick days, overtime hours, new client acquisition, client sales growth, client retention, and my favorite of all—sales.
Games lead to gains
A classic example that I love to share is a grower and garden center on the East Coast was looking at ways to increase the average transaction for each client visit. We formed the team, stormed ideas, came up with a norm and executed (performed) it extremely well. The team agreed that a particular soil amendment would be a great way to up-sell anyone who is buying plant material. They all believed in the product, they were knowledgeable of its features and benefits, and they all saw the potential in adding it to any purchase.
We reviewed the numbers from the previous year and set a “game” where everyone could participate and win. If they sold twice the amount as last year, each team member would receive a $10 gift card. If they sold three times the amount, each team member would receive $20, and so on. The team committed to the game. The managers tracked it each day, reported how the team was performing, and motivated the team to sell five times the amount they had done the same time last year.
The best part about this success story is the momentum that it created—a belief that they can, when united after a common cause, motivated by leadership, supported by other team members, can accomplish great things. Who doesn’t want this? We created a solid and unified force of people and energy focused on accomplishing the same mission, which is awesome. And it works.
When customer satisfaction ratings continue to perform at 94 percent or better three months in a row, reward your team with a monetary spiff. And studies show that higher-than-average satisfaction ratings translate to higher-than-average sales, every time.
Change by design is one idea, one customer, one team and one change at a time.
Creating a culture of sales and service is paramount in today’s new economy. The client’s expectations have changed dramatically over the last five years. What used to be acceptable is no longer acceptable and those growers, garden centers and landscape companies that get it will grow. Those that don’t, won’t. It’s that simple.
John Kennedy is an industry strategist, author and speaker. Reach him at john@ishakeitup.com or www.upsellinggreen.com.
Editor’s note: John is joining Nursery Management as a contributor in 2014. Watch for his column, The Catalyst.
Sidestep second best
Recognize the behaviors that keep your company out of first place.
By Joseph Callaway
“We’re number two!” You’d never say it, but these eight red flags warn your company might be living it.
Picture this: You’re relaxing on your couch and watching your favorite crime drama. You’ve halfway tuned out during a commercial break when something catches your attention. “Come see what we have to offer. We’re proud to be second in area sales and customer satisfaction since 1992!” an announcer enthuses while a giant yellow “2” flashes on the screen.
Sure, it sounds absurd. But while most of us pay lip service to our desire to be our customers’ first choice, our actions may say otherwise.
Any time you don’t make the client your top priority, you’re tacitly agreeing not to be their top priority. You cannot truly be number one until your clients are. Being number one really is a two-way street, and it’s not an easy street. You can’t coast your way to number one—and when you settle for doing so, you soon fall to number two or even lower.
Putting your customers’ interests ahead of your own—every time—can seem counterintuitive, risky, and even frightening. That’s why so many businesses fail to be as competitive as they’d like: Even if they don’t realize it, they’ve chosen to operate in a way that makes it impossible for them to come in first from a customer’s perspective. Especially in an uncertain economy, you can’t settle for being number two—or three or four—because that puts you on the road to eventual failure. Sooner or later, your vulnerability will catch up with you. The best job security is being the best.
Here are eight signs that your business is aiming lower than you may have thought.
8 red flags
1. Your number one business goal is to make money. You may be asking, isn’t that the point of running a company? Well, it’s a point, but it’s not the point. A too-acute focus on improving the bottom line takes your attention off of the people who are going to enable you to raise it: your customers. Your clients can always tell when they’re not your first priority. If you’re skeptical, just consider the backlash that often occurs when small businesses are bought out and transformed by larger, more impersonal corporations.
The difference between paying attention to customer service so that your clients will give you more business and doing so because serving the customer is your first priority may feel slight, but it’s significant. Yes, taking your focus away from the bottom line may feel uncomfortable at first. But you’ll soon find that when you focus on how best to serve clients, tough decisions make themselves. If it serves the client, you do it. If it doesn’t, you don’t. This neutralizes moral dilemmas and really simplifies your life. And it almost always has a miracle effect on your growth and success.
2. You let the little things slide. So…what’s the problem? Rushing through paperwork so you can get home early, failing to spellcheck an email or two, and running late to a meeting probably won’t matter that much six months from now. It’s the “big” things like growing your company, expanding your client base, hiring more employees, and making a profit that are most important, right? Not necessarily.
So often in life, it’s the small details that differentiate “good” from “great.” So be careful not to become so fixated on the forest that you fail to see the trees. In other words, stop being so distracted by the ‘big grand ideas’ and start getting the small details right. Promises kept, deadlines met, little extra flourishes, and small acts of kindness add up to happy clients.
3. You habitually let certain clients go to voicemail. It’s happened to everyone: When you see that name flash on your phone’s caller ID, you slowly pull your hand back from the receiver and let the ringing continue. You just don’t want to deal with the drama, or the whining, or the accusations, or the belligerence just now. Yes, we all have “problem” clients. But to avoid them or just go through the motions for them is a mistake. They will notice and remember your behavior. And be honest: Would you want to give your business to someone who might write you off when the going got tough?
Clients first means all clients. In over fourteen years, my wife and I have never gotten rid of a single client—even when we secretly wished we could—and we believe this no-fire strategy has contributed significantly to our ultimate success. Here’s the payoff: When you make the choice to stand by all of your frazzled, frustrated customers, you will eventually reap financial and personal rewards.
You may even become known in your company or industry as the guy or gal who can handle the toughest customers. And chances are, your clients themselves will be grateful that you didn’t give up on them and may even send others your way.
4. You find yourself telling white lies. It’s true that telling clients white lies, or exaggerating, misdirecting, or omitting, might make life easier temporarily. It’s also true that we can often justify such behavior to ourselves (She’ll never know, and it’ll save me hours of work, for example). But these “little” lies are just as bad as the whoppers. There is always a chance that customers will see through you and call you on the carpet. And even if they don’t, a willingness to play fast and loose with the truth is indicative of a broader attitude that relegates clients to second or third priority.
Honesty can be tough in the moment, but a reputation for trustworthiness (or untrustworthiness) can stick with you for life. Live by a policy of never holding back or sugarcoating and you’ll gain customer loyalty that money can’t buy. Plus, when you have only the truth, you don’t have to worry about getting the story straight or remembering what you have and haven’t shared. You know you’re doing the right thing.
5. You spend more time trying to get off the phone than really hearing what the customer has to say. Chances are, you roll out the red carpet in order to get prospective clients on board. And you’re probably willing to bear with the whims, questions, and requests of fairly new customers whose business isn’t yet cemented. But what about older, more established clients? Do you take the same amount of time and care with them, or do you assume they’ll stick with you out of habit and convenience?
If you wouldn’t hang up the phone at the first opportunity with a client you signed last week, don’t do it with one you signed ten years ago. Companies that become No. 1 don’t do so because they win customers over once, but because they do it every day. A good experience last month usually won’t keep a customer coming back this month if he or she believes that your level of service has slipped.
6. You don’t know your client’s daughter’s name or what he likes to do on the weekends. In your eyes you’re being professional when every question in your meeting is about the client’s financial preferences, for example, and not his family, pastimes, and interests. But in his eyes, you’re cold and impersonal. Remember, to truly serve, you have to care. When you keep yourself at arm’s length, you can’t give your clients 100 percent…and you give them an incentive to take their business elsewhere.
Do you see your clients as sources of income, or do you see them as actual human beings with likes, preferences, quirks, and stories? People want to do business with individuals they like—and they like people who like them! Make a deeper connection with your clients by asking about their kids, their pets, their hobbies, and their jobs or businesses. You’ll find that most of them are just like you: filled with worries, hopes, and dreams. Once you get familiar with and invested in these things, you’ll work that much harder on each client’s behalf, and you’ll earn their loyalty in the process.
7. You feel your main obligation to employees is writing their paycheck. While (of course) you don’t treat employees like dirt, you may feel that you don’t owe them any special favors, either. After all, you’re paying them—isn’t that enough? Well, no. The way your people treat customers reflects the way you treat them. Are you courteous? Kind? Enthusiastic? Do you listen when they talk to you and try to accommodate their needs? Or are you short, perfunctory, and even (sometimes) rude?
Your job is to serve others, period. You can’t do that by making distinctions between the people who work for you and the people to whom you provide a good or service. Realize that you set the tone for your company’s “personality,” and that you’re creating a tribe of people who will beat the drum for your message. Try to see your employees through a client’s eyes and be honest: Would they win first or second place in a customer service competition? If you don’t like the answer, try adjusting your own attitude first.
8. You’re not above badmouthing the competition. Some leaders don’t hesitate to casually say things like, “Sure, Outlet X is cheap, but the quality of their merchandise leaves a lot to be desired,” or, “I’d think twice before I took my business to Firm Y—didn’t you hear they had to lay off half of their staff last year?” But take what happens in the political arena as an example. When you sling mud at your opponent, some of it is likely to get on you, too. Besides, wouldn’t you rather rise to the number one spot solely on your organization’s merit, not because you took cheap(ish) shots?
In fact, you can—and should—strive to win the approval, goodwill, and admiration of your competitors. If possible, get to know their leaders and employees and help them when you can. You don’t have to give away trade secrets, but you can offer advice, for example, or refer a customer whose needs are better matched to what another business has to offer.
Don’t do these things manipulatively but in the spirit of giving. Your efforts will come back to you with interest. Have faith that there is enough business to go around.
Finally, don’t put the cart (being number one) before the horse (serving your clients). A customer isn’t focused on where you stand in the big picture so much as on how well you treat and serve him or her individually. And that’s the beauty of how this whole thing works: By keeping your commitment to clients first, you’ll win enough loyal supporters to put you squarely in the lead position after all.
Joseph Callaway and JoAnn Callaway are coauthors of the New York Times bestseller Clients First: The Two Word Miracle and founders of the real estate company Those Callaways.
Explore the October 2013 Issue
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