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You Get What You Pay For

A friend of mine’s wife was teaching a dance teachers workshop and one of the participants asked her how she was able to get such good musicians for the program.

She replied, “Pay them!”

The universal truth is that you get what you pay for.

It especially applies to your staff.

There are two management approaches you can take towards your staff. Either they are one of your largest expenses or one of your largest assets.

The business owner who approaches payroll as an expense will try to cut it to the barest minimum, keep pay as low as possible to keep labor costs down.

The business owner who sees the employees as an asset will invest in them and do whatever necessary to get the highest possible return from those assets.

Either way, you will get what you pay for.

Choose wisely, my friends, choose wisely.

Phil
www.PhilsForum.com

PS Need help getting the right assets in place? Buy my book Hiring and the Potter’s Wheel: Turning Your Staff Into a Work of Art. It will make a difference immediately.

How to Remain Special

The independent retailers are often called Specialty Retailers because rather than carry a wide swath of departments, we specialize in one or two general niches.

Specialty was also a way of saying we offered a little more in the way of a shopping experience, something special that the discounters couldn’t offer, that the department stores couldn’t match.

Our stores truly were Special.

  • Special products not found everywhere.

  • Special services not matched by our competitors.

  • Special experiences enhanced by our staff.

Of course, those last two things cost money. Thanks to the margins on the first item, our special products, we could afford them.

But those margins are disappearing fast. The product that used to be found only in specialty stores is all over the Internet. Some of it is even on the shelves of gas stations and pharmacies. While the cost of those goods continues to rise, the retail price holds steady or shrinks.

Without that margin many specialty retailers are finding it hard to afford those services that made them special. But to compete, we have to hold the line. We have to find ways to keep our stores Special.

The best way to remain Special is to focus on your staff, on the frontline folks who make or break the experience for the customer.

It starts with hiring great people. It moves forward by constantly teaching and training them, never getting complacent.

Whatever you do, don’t give up being special. Start by making your staff special and the other stuff will fall into line. And don’t worry about the special products and lost margin. This is just a cycle we’re going through. They’ll be back soon enough.

Phil
http://www.philsforum.com/

PS In the meantime, there are some simple things you can do to make your prices look better and help you move some more merchandise. Check out my free eBook Pricing for Profit.

Smoothing the Rough Spots

Wow, what a fun ride!

Last June I published my first book, Hiring and the Potter’s Wheel: Turning Your Staff Into a Work of Art. The book has received wonderful praise from store owners and HR people alike.

And sales have been phenomenal! I have shipped copies all over the world.

I set a pretty high goal for myself, to sell enough books in one year to pay for all the expenses of printing and design. And I’m really close. I only need to sell 10 more copies of my book by June 22 to reach my first year goal.

Anyone responsible for the hiring and training of others will benefit from reading this book. Plus, it makes a far better and more useful Father’s Day gift than a tie.

To whet your appetite, here’s another excerpt from the book…

Chapter 14 Lesson #7 Smoothing the Rough Spots
“Nothing is so strong as gentleness. Nothing is so gentle as real strength.” – Frances De Sales

As Mary smoothed the rough edges of her bowl she pondered what lesson she could learn from this step in the process. “If I’ve put them in a safe place to use their skills, what roughness will be left?” she thought. A smile came to her face. “Evaluations! I’ve got to make sure there is time for evaluations during and after the safe zone period. Even though they are using their skills, there will still be rough edges needing smoothing.

“I know,” she thought, “I can take the training skills checklist and do follow-up evaluations on each skill just to make sure there are no bad habits, no rough spots. Oh yes, and the evaluations must be completely positive – show them what to do right, rather than harp on what was done wrong. They’re still fragile at this time. Yes, fragile. That’s what Peter meant. The bowls, while dry, are still fragile and need to be safe. The trainees, while trained, are still fragile and need to be in a safe environment where they can learn from their mistakes. It all makes sense,” Mary concluded.

Peter wandered the room checking up on everyone’s bowls, looking for missed rough spots. By the end of class he deemed every bowl to be ready.

“Okay, put the bowls safely on the rack. On Wednesday we fire them for the first time.”

“The first time?” Mary asked.

“Yes,” Peter replied. “On Wednesday we are going to do what is called ‘bisque-firing’. This will harden your bowls so that they won’t be so fragile.

“By the way,” Peter continued. “We will not be meeting here. All of you are invited to my studio. I’ve put the address and directions on these little slips of paper. Unfortunately, the directors here at the YMCA will not let me build a kiln inside the Y, so we’ll use my kiln at the studio. See you Wednesday.”

Get your book today!

Phil
http://www.philsforum.com/

PS All orders online will get a signed first edition. (So will books bought in the store, as long as I’m working that day:-)

Are You Working ON Your Business or IN Your Business?

Morgan Freeman’s character “Red” said it in The Shawshank Redemption, “You either get busy living or get busy dying.” Never have more truer words been said about retail.

So what are you busy at right now?

Are you busy coming up with new ways to market your business?

Are you busy evaluating your inventory mix to make sure you have the right items, the right amount of items, the right prices?

Are you busy measuring your financials to make sure you have enough cash flow, are keeping expenses in line, and building profits for the future?

Are you busy training your staff, teaching them how to please your customers and make their experience both memorable and worthy of talking about?

If you want to get ahead, you have to spend just as much time working ON your business as you spend working IN your business. Maybe even more.

Here are some simple things you can do to find more time to work ON instead of IN.

  • Don’t waste your time stapling, folding, cutting or hole-punching. If you don’t have a staff person in need of a simple project, give it to your kids or grand kids. (And if that isn’t an option take it home with you and do it while you catch up on your favorite show).

  • Don’t micromanage. Train your staff how to do it. Then empower them to do it. Even encourage them to come up with their own ways to do it better.

  • Don’t ever say or think “it would be quicker for me to do it myself.” The first time, you’re right. But if you teach someone else how to do it, the first time will be your last time.

  • Hire somebody. Let them do all that day-to-day stuff that bogs you down. Not only does it free up your time, but it forces you to work ON your business just to find the money to pay them.

And if you aren’t sure where to begin working ON your business, think about it as a three-legged stool.

  • The seat of the stool is the products. Without the seat there is no need to prop it up.

  • The first leg, then, is the marketing. What are you doing to get people in to see your products?

  • The second leg is selling. How well trained is your staff? Do they know the benefits of the products?

  • The third leg is the financials. How is your cash flow? Profit? Inventory levels? Expenses?

Pick the wobbliest leg and get to work. (Let me know if I can help).

-Phil

Hiring & The Potter’s Wheel Principles in Action

I was going to post another excerpt from my book, Hiring and the Potter’s Wheel: Turning Your Staff Into a Work of Art.

Instead I’d like to give you a glimpse into how one business put the principles of the book into action.

The first principle of the book is to identify the right raw ingredients, the inherent traits that someone must already bring to the table to be successful in the role for which he or she is hired. I call these the non-teachable traits.

This business wanted to hire a Sales Position. The number one non-teachable trait for the perfect candidate must be his or her ability to communicate simple ideas effectively.

So in the interview process they put together an exercise to see how well a candidate can communicate a simple idea. They gave the candidate a picture that had three shapes in it, a rectangle, a triangle, and a circle. Then they asked the candidate to describe the shapes to another person who had to then draw those shapes.

Seems like a simple task, right?

The results were more than telling. The candidate struggled mightily with this activity. The communication skills simply weren’t there. The interviewer commented to me that he was pretty sold on the candidate up until this activity. The candidate had experience and education and passed the eyeball test. But when it came down to doing the one thing he would have to do consistently day in and day out, he didn’t have the skill.

By knowing exactly what traits and skills the perfect candidate needs and focusing their interview on determining if the candidate has those traits, they were able to avoid one of the most costly mistakes any small business can make, hiring the wrong person.

If you would like to avoid making this costly mistake in your hiring and training, buy the book and follow the process. It’s simple, intuitive, and pays off immediately.

-Phil

How One Bad Apple Nearly Spoiled the Ski Trip

The big family Christmas gift was a long ski weekend at Boyne Highlands in northern Michigan.

Although not as immediate as a box of Legos, the boys were thrilled. And the experience was incredible!

WOW Customer Service
We showed up at the Zip Line just as it was closing – no problem. They got us dressed and ready in no time at all and made it seem like we had made their day to stay open an extra 20 minutes. Korie was just a gem.

We showed up for our free buffet breakfast and had Martha, our waitress, treat us like rock stars. Dirty plates whisked away immediately. Tips on which buffet stand to get the freshest food. Anticipating our every needs. It was a free meal, so she wasn’t in it for the tips (although she got a big one). She just obviously loved doing her job the right way.

At the bottom of the chair lift Tyler was able to strike up a conversation in the few seconds before we were lifted away that we kept going back to the same lift time and again just to keep the conversation going. No wonder he won employee-of-the-year last year (at least that’s what he claimed, and I wouldn’t argue.)

Every single interaction was over-the-top positive customer service…

Except one.

Not So WOW
It probably wasn’t that big of a deal, but my wife was having a tough time getting off the inner tube course tow rope. The attendant seemed indifferent to her plight, even a little put-off that she was holding up the line (which consisted of one other person, my son). His attitude was a stark contrast to the friendly, caring attitude of the rest of the staff and it almost brought down the whole trip.

His indifference and attitude was all my wife could talk about.

Thank God Korie and the Zip Line team restored our faith later the same night.

But it was a quick lesson on how fast a great experience can unravel because of the careless work of one person in a seemingly unimportant position.

Hiding the Risk
The inner tube tow rope is probably pretty low on the totem pole of jobs at a top-notch ski resort. Maybe management knew this and put their lowest performing person there, thinking he could do the least amount of damage.

But least amount of damage is still damage. Had that been our last event of the trip, it would have been the defining moment.

If you have an employee doing damage, don’t try to protect him or her. Train or fire. There is no middle ground. That may seem harsh, but your customers will be even more harsh. They won’t come back for a second chance.

Korie, Martha and Tyler had to work extra hard to make up for this one mistake. And to their credit, they did! We already know what Santa is bringing next year.

-Phil

An Excerpt from Hiring and the Potter’s Wheel

Another excerpt from the highly acclaimed book “Hiring and the Potter’s Wheel: Turning Your Staff Into a Work of Art”

Chapter 12: Lessons 4, 5 and 6 Centering, Gentleness & Protection
“Kind words can be short and easy to speak but their echoes are truly endless.” – Mother Teresa

“So, how did the conference go?” Mary began.

“Quite ordinary, a bunch of theories using fifty cent words, but nothing that hasn’t already been explored or learned,” Dr. Scott explained. “I’d have rather been in your pottery class. How about you? How was class? Having fun? Learn anything new?”

Mary almost didn’t know where to begin. “The pottery is great. I love it. I think I may have found a new hobby. I can’t thank you enough. And as for business, since we last met, I have learned three distinct lessons.” Mary pulled out some notes she had been taking.

“First, before I can start throwing, I mean training, I have to make sure everyone is centered, that they are starting from the same point. Everyone has to be on the same page. That pretty much goes hand in hand with the earlier lesson of getting out the impurities, the air bubbles. I’ve already developed a clear set of guidelines and expectations, and also a list of bad habits to watch for and weed out, if necessary. But no matter what their previous experience, everyone will start from the same point in their training. That way I’ll be sure not leave anything out.

“Second, once the throwing, oops, I mean training, begins, I have to remember to use a gentle hand, lots of positive encouragement. There’s the old saying, ‘you get more flies with honey than with vinegar.’ The same is true in teaching. The more positive gentle words, the more likely the student will listen and learn.

“That was tough for me, I mean in the pottery. I kept pushing too hard and watching my bowl flop over like it was sick. It reminded me of how I feel when someone yells at me or pushes too hard. Patience and gentleness are definitely the keys. I wrote myself a sticky note on top of my computer to remind me to praise everything done right during the training to help encourage that behavior.

“But wait, as I think about it, you were never gentle with me, Dr. Scott. You always pushed me hard. You and your, ‘you can do better,’ mantra,” Mary added with a slight sarcastic twinge.

“But did I ever push you too hard?”

“No, I guess not,” Mary replied wistfully.

“You’re absolutely right on this, Mary,” Dr. Scott continued. “Pushing too hard never works. But you have to find the right pressure to get the most out of your clay, and your trainee. If you don’t push at all, nothing gets formed.

“I think you’re getting it. Now what about that third lesson?”

“Well, last night it dawned on me as I placed my bowl in the rack to safely dry, how often do we put newly trained employees into safe positions? Usually, once training is done we throw them to the wolves, so to speak. But wouldn’t it be better if we put them in a safe environment to try out their new skills? If they were in limited roles or carefully supervised, they could safely practice their skills and grow stronger. We know, no matter how well they train, they are going to make mistakes. But this way they can make mistakes under a watchful eye and learn from those mistakes before the errors become costly. That way they’ll be even better when they finally take on their new roles.”

“Kind of how your clay is growing stronger as it hardens?” Dr. Scott asked.

“Exactly!” Mary exclaimed. “Once the training is complete, I’m going to come up with a safe way for my new sales reps to use their skills. But Peter said something curious just as we left. He mentioned that our bowls, although hard, would be quite fragile once dried. I think I’ve got a little more to learn about this step and the steps following.

Mary looked at her watch, “Well, I’ve got to run. Oh, and I’ve got interviews scheduled all next week. Can we meet the following Tuesday?”

“Sure. You know I don’t like to miss any meals,” Dr. Scott said with a chuckle. “See you then.”

Get a copy of this book for everyone on your Christmas List who hires and trains. There is still time to get your order in before Christmas (and I promise to sign every copy.)

Merry Christmas!
-Phil

Rocked My Week!

It has been a fun week here and it just got better…

Not only are we just moments away from Black Friday – the real point when the Christmas shopping season begins… (no matter how hard some stores try to push the holidays)

Not only are we just hours away from my last day off for weeks… (I’ll only be at the store for a couple hours Thursday, I promise:)

Not only are we closing in on one of my favorite meals of the year… (it’s actually creamed turkey on Sunday at my mom’s house)

But I just got two bits of news that have rocked my week, so forgive me for doing a little tooting.

Entrepreneurial Vision
The Greater Jackson Chamber of Commerce just named me the 2010 Entrepreneurial Vision Award Winner for helping entrepreneurs and businesses in Jackson County.

Coolest thing about the award is it has nothing to do with what I do for the Toy House, but everything to do with how I share that knowledge with you.

Running the Jackson Retail Success Academy, working with the FasTrac start-up businesses, doing workshops for the Chamber, doing leadership and teamwork training for other local businesses, speaking at the Michigan Downtown Conference, writing this blog, publishing my book has all been a labor of love for me. Being recognized is just icing on that delicious cake.

More importantly, the award spotlights the importance of helping out other businesses, using the skills that have made us successful to help others reach their success. I just love that the Chamber has created such an award, and honored to be this year’s recipient. Cool!

Highlights for Hiring & Potter’s Wheel Book
The second thing to rock my week was an online interview I did for Business Info Guide. The book is getting rave reviews, but this interview will help me open it up to a whole new (bigger) audience.

If you haven’t read it yet, there are excerpts here on this blog. And if you are responsible for hiring and training, it is a book you definitely should read. Heck, at $19.99 it makes a great Christmas gift.

So I’m having a good week. How about you?

-Phil

Spelling Counts for Something

There is no Spell-Check for an application someone has to fill out by hand.

Don’t get me wrong. I like resumes. They show that the customer has some basic computer skills (sometimes really basic). But I like having a handwritten application for two reasons.

  1. You see if you can read their writing. In my business this is important because we have forms that have to be filled out. If I can’t read your writing on an application, I know I won’t be able to read it on a delivery form.
  2. You see if they can spell. Spelling plays a part in the evaluation process. Poor spelling might not be a deal-killer but it can tip the scales between two equally qualified candidates.

Spelling is not so much an education thing to me as it is an attitude thing. A tough word misspelled here or there, no problem – we all make mistakes. But someone with tons of poor spelling and horrible penmanship on her application shows me she doesn’t care about appearance. If she doesn’t care how she appears to me, how much will she care about how she appears to my customers?

Just today I sent a rejection letter to an applicant that it took four of us to decipher his name and address. A sloppy application will almost always equal sloppy work.

Even if you require resumes for your applicants, have a simple addendum they have to fill out by hand. You’ll be amazed at how much you can learn from their handwriting (without needing a psychology degree).

-Phil

PS Feel free to use this post to encourage your children to work on their spelling and penmanship in school. I stress it with my boys this time every year.

How Hard Will They Really Work?

It seems like every applicant to our store lists “hard working” as one of their attributes. But if they really were “hard working”, why would they be looking for a part-time, seasonal job in a toy store?

Here are two questions you can use to see how much hard work your applicants are willing to do.

  • What accomplishment are you most proud of? Tells you whether they take pride in hard work, talent, dumb luck or any combination of the above. If their pride is in something they worked hard to achieve, you know they’re capable of doing hard work and will take pride in the hard work they do for you.
  • What is the hardest task you have to do in your current (previous) job? Easiest? Tells you what they think of as hard work and what they find fun and enjoyable. If your hardest tasks fall into the fun and enjoyable category for them – hire ’em!

Hard work is a subjective notion. Until you know how they define hard work, you’ll never know if your applicants are willing to work as hard as you need.

Note: If you have questions you’ve used on this subject that have proven effective, please share. The more questions we can put in our interviewing arsenal the better.

-Phil