We Messed Up FAR TOO OFTEN

I became a customer service GEEK in 1981 when I read Tom Peters and Robert Waterman’s book, In Search of Excellence.  I was then thrilled to hear they made a documentary on the book and it was going to be shown on PBS.  I recorded the show onto my VHS.

Every employee I’ve had (that’s well over 300) since then has watches the customer service sections of that documentary.  Since I wore out my recording, I eventually bought the VHS and then the DVD.

From 1981 on, we were REALLY GOOD at listening to our clients, putting ourselves into every client interaction and make things right when we messed up.

By 1991, we had grown dramatically, and while we did a great job of making things right when we messed up, we messed up far too often.  We wasted a bunch of time and money fixing things and I was totally burned out being the know- it-all King Solomon.

I had become a slave to my business.  It seemed like I was always responding to things and taking care of problems.  I had no time for myself.  It was not fun.

I decided I didn’t want my business to grow anymore.  It seemed like the only things that grew as fast as my business were my headaches, and I sure as heck didn’t want any more employees… talk about headaches.  I might as well have been a babysitter.  I in fact, considered throwing in the towel and going back into sales.

Happily, that wasn’t the end of the story.

By 2005 I owned 5 profitable businesses and loved what I did.

But what happened?

How did I go from a guy who didn’t want to expand his business, who had more headaches than he could handle, to a guy whose business has grown dramatically, added four more businesses, loves his work, has the time he wants to spend with his wife, kids, and grandkids, has time for his many hobbies, and recently sold that original business for millions more than like businesses?

Now, since 1995, when I go on vacation, I never get interrupted.  I come back refreshed and excited to get back to work.  Instead of problems, I come back to a business running as well, or better, than when I left.

Before I sold my big business, I went on a 3-week Mediterranean cruise, with no cell phone and no email.  I told my Vice President of Operations the ship I was on, and I told her “You’ll have to figure out how to get in touch with me if you need me.”  I knew she wouldn’t need me.  Like I said, since around 1995 when I go on vacation, I never get interrupted.

How does the business get better while you’re gone?

It’s the system.  The entire system is designed for continuous improvement whether you’re there or not.

I invented THE small business management system that made me more money, made my job infinitely easier and more enjoyable… a system that our employees love and in fact led to us being named “The Best Small Business to Work for in Washington State” by Washington CEO Magazine.

It’s a system that creates great clients who love doing business with you.  At the same time it gives you, the owner, more time to work on the important things in your business: more time for your family, more time for your friends, more time for yourself and it is simply a lot more fun.

What they teach in business school doesn’t work for small businesses – I know, I’m and business school graduate.  I was using that crap when I was burned out!

Do you think this system just might work for you?  Frankly, it’s not right for everyone, so why don’t you schedule a free 30 minute consultation with me to see if it will work for you.

Don’t worry, I’m not going to sell you anything.  We’ll simply have a conversation.  If it’s not right for you, it’s not right.  I’ll learn about you.  You’ll learn about me.  We’ll still stay in touch and remain friends.

Go here to pick a time to schedule our 30 minute consultation https://keith12.youcanbook.me/

How to Have the PAY Discussion

How to Have the PAY Discussion

There is no discussion that creates more anxiety for a business owner or manager than that of talking pay with a team member.  It doesn’t need to be like that.

When you have guiding principles, and a written document, that everyone understands, the discussion simply become another business discussion.  It simply, is not a big deal.

I was talking with a Kyle, a private client, last week and we got on the topic of pay, and raises.

He had previously done Performance Reviews in his business and like most business owners he hated them.  He admitted that he was, in fact, months overdue in getting them done because he hated them.

He was also feeling guilty because the Performance Review was the time they discussed pay, which meant he was behind in giving raises.  Then he confessed that one of the main reasons he hated Performance Reviews was the pay discussion.

Everyone was used to get a raise at their review, and he had a lot of people that didn’t warrant a raise right now.

I pointed out to Kyle that his experience with Performance Reviews and pay is the same as everyone’s.  It’s a NO-WIN for both parties.

I told him the experience of my brother-in-law at Boeing who hated Performance Reviews and why the discussion of pay during Performance Reviews was a NO-WIN for both parties.

When my brother-in-law had a Performance Review and was told he did everything great and got a dollar raise, he left saying to himself, “I did everything great and I got a measly dollar.”

But, seldom would he leave being told that he did everything right because the manager knew he had to limit raises, so he had to find something that was lacking.

So he would be told that he was lacking in some area, and then the next time we saw him he complained about how he wasn’t appreciated at Boeing.

Performance Reviews are stupid to start with.  Managing one’s performance in REVIEW is idiotic!  Adding pay into the discussion is BEYOND IDIOTIC!

Kyle’s question was, how do you address pay in The Make-You-Happy Management System?

My answer – “Pay needs to be transparent.  I don’t mean everyone needs to know everyone else’s pay.  In fact discussing your pay with others in our business if forbidden.”

“What I mean by transparent is, they need to know what is taken into consideration in determining pay.”

We then talked about the pay document included in The Make-You-Happy Management System.  It’s entitled, “How Pay is Determined.”

I told him this needs to be shared with every team member on their first day of employment.  It will make pay transparent for that individual, and it will motivate them to continually look for ways to improve the business.

I also told him he needs to distribute the, How Pay is Determined document to his entire team right away.

How Pay is Determined has eight bullet points that spell out exactly how each person’s pay is determined.  Kyle and I discussed the preamble to the document and the first bullet point.

How Pay is Determined

It is the manager’s responsibility to review the pay of each of their team members, at least, once a year (more often if the manager sees fit).  Whenever the manager thinks it is necessary (s)he should review the team member’s pay with the president of the company, and make recommendations for adjustments.

This is a discussion of how pay is determined:

If you are on commission you should expect that your pay will rise and fall with your commission and that you will create your own pay raise.

While many of the issues discussed below may apply to commission positions, this statement deals primarily with salaried and hourly positions.

A number of issues are involved in determining wages at <Business Name>.
Here are a few:

  • Prevailing wage – The reality is no manager, including the President of the company, sets the pay at <Business Name>. The biggest factor in setting a pay range is the market.

It is very simple.  If our wages are too low, we won’t attract or keep quality employees.  If our wages are too high, we won’t make money and we will be out of business.

Just because someone is here for a matter of time it doesn’t mean they automatically get a cost-of-living raise.  It is very possible, in fact likely, that we currently have positions in which the job being done simply is not worth any more money to the company.  At this point, regardless of how well the job is being done, a wage increase would be very small and possible nothing.

A huge problem with mature businesses is that over time their payroll can get out of line with the rest of the industry and the company can no longer be competitive (think United Airlines, Trans World Airlines, Pan American Airlines, General Motors, Ford).

When we as a company are more efficient and productive than others in our market place our team members can be at the top of the pay scale for a particular job.  In fact, we can create a NEW top above what the market pays for a particular job.

This is why it is so important that you are an active participant in our continuous improvement.  You are needed to insure that our MJRs service both our internal customers and clients in the most efficient and effective way possible.  You need to speak up when you see an opportunity to improve a MJR.

In every Personal Development Interview you will be asked, “Since we last met, what did you find that was broken, or could be improved; and what did you do to fix, or improve it?”  It is critical that you always look for ways to improve our deliverable to our clients.

The How Pay is Determined document then goes on to discuss the other seven factors in determining an individual’s pay in a Make-You-Happy Management System business.

There is no reason for a pay discussion to cause the anxiety it does.  Discover how to truly take control of every part of your business in my book, “How to Control Your Business and Your Life.”  It’s free for you.  All I ask is your help with shipping and handling with a $2.97 fee.

Click here to get “How to Control Your Business and Your Life.” 

The Law of Reciprocity and Your STAFF

The more I coach business owners the more I’m convinced, the teacher learns more than the student.

A few days ago I told you Dave Coyle, the owner of a very successful chain of dry cleaning stores, In The Bag Cleaners, in Wichita, KS, told me that everyone wants to feel important and appreciated and Personal Development Interviews give Dave, and his managers, a specific time to sit down with each team member and show them they are important and appreciated.

I posted this video on YouTube to tell you about that.

Then in the comments section below the video on YouTube Dave added.

“The hidden truth (or maybe not so hidden truth) behind this video is that when you learn to make team members in your organization FEEL important and appreciated, the law of reciprocity kicks in, and your team works much harder, and more autonomously, because they FEEL invested in. When they work harder, they are empowered, and the business owner has more freedom to enjoy the rewards of business ownership. And you see a business owner like Keith who is able to do videos from his boat!! This video is a result of Keith becoming a master at Personal Development Interviews – which inspire and motivate team members! “

Thanks, Dave, for the wish words on The Law of Reciprocity.

The Law of Reciprocity from BrianTracy.com

“Have you ever felt the need to help someone who has helped you in the past? This is known as the law of reciprocity. It is one of the many different persuasion techniques that you can use to influence others.

Law Of Reciprocity

Persuasion by reciprocation is based on the law of reciprocity. It’s considered by many to be the most powerful law of human nature. Basically, it states that,

“If you do something nice for me I’ll do something nice for you. I feel obligated to reciprocate.”

For example, if we go out to lunch and I pick up the bill, you almost always offer to pay for it next time. Next time we go out to lunch, you insist on paying for the bill.”

How are you using The Law of Reciprocity with your staff? What are you doing, other than giving them a pay check, to have your staff feel the need to help you and your business?

Do you have my newest book, Performance Review Suck, How to Replace Demotivating and Counterproductive Performance Review with Motivating, Inspirational, and most Importantly Productive Personal?

You can get it here.
https://www.performancereviewssuck.com

When you implement Personal Development Interviews you initiate one of the most powerful laws of human nature with your staff.

Do What You Do So Well
That People Can’t Help Telling Others About You

Keith Lee
Keith@KeithLee.com

How to Empower Every Member of Your Team

I’m mostly a black and white kind of guy.  There’s good, there’s bad.  There’s right, there’s wrong.  There’s proper behavior, there’s stupid behavior.  You succeed, or you fail; and you don’t blame anyone else.

So when I heard the term “Situational Leadership” I thought, Holy cow, another feel-good, politically correct excuse for not performing. I was wrong – way wrong.

Situational Relationship Behavior is the extent to which the leader engages in 2-way communication; in other words, your interaction with people.

High relationship means you’re highly engaged.  You’re giving them additional training and support on an ongoing basis.  You’re interacting with them quite frequently.

Low relationship behavior means that you’re not as engaged in 2-way communication.

Task Behavior is the extent to which the leader is engaged in spelling out the duties and responsibilities.  High task behavior means the manager is more detailed and directive toward telling the subordinate step-by-step what to do.

Low task behavior is when the manager assigns the task, delegates the task, and is not involved with actually getting the job done.

A new employee (team member) typically starts in Q1 (see picture) and the manager does a lot of Telling (high task, low relationship).  There is a lot of instruction showing them how to do the job.  You’re not patting them on the back yet because they haven’t shown anything yet.  You’re teaching and training them, so there is not a lot of relationship behavior.

After a few months, the new employee is making some progress and it’s time to move from telling to Selling (high task, high relationship).   The manager is still directing and showing, but the communication is more 2-way.  The manager gives a lot of reinforcement while explaining, clarifying and persuading.  The manager is mining for ideas from the team member and teaching them to think on their own.  The leader still defines the roles and tasks, but seeks ideas and suggestions.  The leader pats them on the back.  The more you can guide them to thinking things out the more beneficial it is to you in the future.

As the individual grows, it’s time for the manager to move from selling to Participating (high relationship, low task).  The person understands the job and knows how to do it, but doesn’t have a lot of confidence yet.  They need reinforcement on an ongoing basis until they develop confidence.  The manager gives the individual a lot of support, pats him on the back, and stays very close.  Because the individual knows the job, there is much less directive behavior from the manager.

As the team member becomes more and more competent, he becomes a true expert at the job and the manager moves to Empowering (low relationship, low task).  The team member is doing 80% or more of the talking during the PDI.  The manager is observing, monitoring, reinforcing, and delegating.

Your goal as the manager is to get your staff to Quadrant 4, but as the arrows in the graph above show, it’s not a one-way street.  Depending on the job or task, you may move down or up a quadrant, or even two – and sometimes even three.

In one of my businesses, one of my vice presidents is fabulous at her job and my management style is almost always empowering.  But she’s not a numbers person, so when it comes to working with numbers my management style moves to Participating and sometimes to Selling or even Telling.  With her it was not uncommon for me to say, “That number doesn’t make sense, check it out.”

It’s also important to understand that you’re working with people, not machines.  We all have personal lives away from business and for all of us, our personal lives influence us at work.  Sometimes it’s critically important to move down a quadrant when a team member has personal problems.

Leaving your empathy and understanding behind, you have a lot invested in someone who’s in Q4.  Moving up on the relationship scale to Participating or even to Selling is sometimes critical to get that person back up to speed.  And, of course, if things get worse you may need to move to Telling with get this done or you’ll be fired.

For a complete discussion of Situational Leadership get my book Performance Reviews Suck for FREE. I just ask that you help with postage and handling by paying $2.97.

Click here to get the book.

Do What You Do So Well
That People Can’t Help Telling Others About You

That Complainer May Be Your Next Great Leader

Here’s an excerpt from John C. Maxwell’s book, The 360 Degree Leader.

 

“Have you ever found yourself saying something like, “You know, if I were in charge, we wouldn’t have done this, and we wouldn’t have done that. Things sure would be different around here if I were the boss”? If so, let me tell you that there’s good news and bad news. The good news is that the desire to improve an organization and the belief that you’re capable of doing it are often the marks of a leader. 

 

Andy Stanley said, “If you’re a leader and leaders work for you, they think they can do a better job than you. They just do (just like you do). And that’s not wrong; that’s just leadership.” The desires to innovate, to improve, to create, and to find a better way are all leadership characteristics.

 

So next time you’re complaining about that complainer, you might want to consider that she may just be what you need as a leader.

I tell our mangers in our divisions away from the home office that they, at times, need to be a pain in the butt for me.  It’s easy to tell who is and who is not really trying to improve things and grow.  They are the people who tell you things you don’t always want to hear.

 

Here’s an excerpt from an email I sent to one of our division managers who, in a previous email had apologized for “causing a problem”.

 

“Remember I told you a good division manager would be a pain in the butt at times.  You do that well. 

 

Seriously, thanks for the great comments.  I don’t need a yes lady and I certainly don’t want the responsibility for coming up with all the good ideas or fixing everything myself.”

 

Now, I wouldn’t say it like that to a newer person who didn’t know me, but I could with this division manager.

 

With The Make-You-Happy Management System you don’t just allow someone to complain, you require them to help with a solution when they see a problem.  If they are constantly coming up with problems but don’t have solutions, they just may be an immature complainer and not a true helper.  If that’s the case, you need to quickly train them to have a solution when they see a problem or fire them.   

 

But if it is someone who is uncovering true problems and opportunities to improve, that’s what the Make-You-Happy Management System is all about.  With these people, do not always require them to come up with a solution.  A huge principle in the Make-You-Happy Management System is that a few heads are better than one in solving problems and taking advantage of opportunities. 

 

But does that complainer have what it takes to be a leader?  Sure you want a leader that can recognize problems and opportunities, but they also need to be tactful.  So keep your eyes open (or maybe better yet, your ears) for that person who thinks they can do the job better than you.  You just might have a great leader.

 

Follow the link below and discover How to Control Your Business and your Life with Proven Secrets to Creating Highly Productive Teams

 

https://americanretailsupply.wistia.com/medias/jl3pr8dbpk

 

Exposed!!! Owner of Company Named, “Best Business To Work For In Washington State” is a “Ruthless Manager

It was reported today that Keith Lee, the owner of American Retail Supply, which was named the Best Small Business to Work for in Washington State by Washington CEO Magazine is a Ruthless Manager.

How is that?  How can the owner of the company named “The Best Small Business to Work for in Washington State” now be revealed as the co-author of the New Edition of No B.S. Ruthless Management of People & Profits?

It was revealed today that Dan Kennedy, the author of numerous No B.S. books, chose Keith Lee as the co-author for his newest edition of No B.S. Ruthless Management of People & Profits.

Our intrepid reporter, Lois Lane, caught up with Mr. Lee as he was sneaking into his office today and asked him how he could head the Best Business to Work for in Washington State and be a Ruthless Manager.

Mr. Lee replied… “I don’t choose the names for Mr. Kennedy’s books, and Dan and I don’t agree on everything, but when it comes to managing a business and the people in it; we agree much more than we disagree.”

Keith pointed to page 14 in the No B.S. book where Dan Kennedy writes about business owners, “And one thing they all have in common: gripes, complaints, disappointments, frustrations, pain and agony with regard to their employees.  Much of this has to do with unreasonable expectations and a misunderstanding of the actual nature of employer-employee relationships.  Some of it lies squarely at the fault of the business owner for failing in one or more of the Three Requirements for Having Employees: Leadership, Management, Supervision.”

Mr. Lee continued, “While I don’t think the nature of the employer-employee relationship need be as adversarial as Dan, the expectations and the nature of the relationship needs to be addressed during the employees’ first day of employment.  With our DVD training business owners who use our Make-You-Happy Management System set those expectations during the first hour of employment.”

Mr. Lee agrees wholeheartedly with Mr. Kennedy’s statement that business owners failing in one or more of the Three Requirements for Having Employees is the cause of many of their headaches.

Mr. Lee says, “Business owners usually lead, manage and supervise as they were led, managed and supervised, or how they learned in business school; neither of which work very well.”

Performance Reviews Suck

Mr. Lee pointed to Performance Management.  Every business owner knows that they need a Performance Management System but the only type of system they know about is Performance Reviews and they know that Performance Reviews Suck.  With this the business owner continues with Performance Reviews knowing that they suck, or they stop them altogether, and are left with no Performance Management System.

Mr. Lee informed this reporter than Dan Kennedy agrees that Performance Reviews are “like looking in your rearview mirror to drive your car.”  Mr. Kennedy’s tells the story of how the late Mike Vance, who worked personally with Walt Disney on the original Disney University and other projects, laughed and scoffed at standardized annual or quarterly ‘performance reviews.”

Mr. Lee’s management system replaces Performance Reviews with Personal Development Interviews.

Mr. Lee went on to explain.  “Just listen to what they’re called.  Which would you rather give… a Performance Review or a Personal Development Interview?  Would you rather review someone’s performance, or develop someone?

What if you’re on the receiving end?  Would you like your performance reviewed or would you rather have someone work proactively to develop you?

Which do you think gets better results, developing people and coaching them or reviewing their performance after the fact?

Traditional management focuses on catching people doing things wrong.  If every time I do something wrong the boss catches me, but he doesn’t catch me when I do things right, my creativity is stymied and I stop using my creativity, stop stepping out front, and stop helping the organization grow by using my creativity.

Conversely, when we start catching people doing things right, we encourage empowerment.  People start to do things in the organization.  Productivity improves on an ongoing basis.  Improvement doesn’t just come from management but from the whole organization interacting with each other and picking each other up.  The organization is permeated with a motivating environment.

Another benefit of this type of management is you create a learning organization.  Researchers tell us that as we move forward, people are going to stay with organizations where they have an opportunity to grow and learn.  There are going to be many more skilled positions than there are people to fill them.  And if there are a lot of skilled positions and not enough people to fill them, money isn’t going to make the difference.  Money is going to be a given.  You’re going to have to pay in the competitive market to get good people.  But they want to work in a place where they can grow, where they can enjoy themselves, where they can use their creativity to help the organization grow, and that happens in a learning organization.  That’s exactly why my company, American Retail Supply was named the Best Company to Work for in Washington, by Washington CEO Magazine.”

You can get Keith’s hardcopy book (not an e-book), How to Control Your Business and your Life, Proven Secrets to Creating Highly Productive Teams at www.HowToControlYourBusiness.com.  Your cost is $2.97 and that includes shipping and handling.