Thursday, March 15, 2007

Training & Development - A Career in Itself

The first mistake I see in training in many companies is that they simply do not do it. And this does not happen only in small companies. I have been hired more than once only to be thrown into the position and left to figure it out for myself. Don’t get me wrong, I received training.

Day One – This is where we keep our coats, the kitchen is here on the left and the bathroom is down the hall, now let me show you the rest of the office and introduce you to everyone.

Day Two – Remember where the coffee is? The coat closet and the bathroom? Today I want you to work with Bob. Bob is in charge of a different department but since you will be working together, I thought it was important for the two of you to get off on the right foot…

Day Three – Hang up your coat, we don’t have time for coffee. Today I want you to work with Mildred. Mildred is in charge of a different department but since you will be working together, I thought…

Day Four – Go and find Roger. His office is over there. Roger is in charge of…

Day Five – Well what do you think? One week of training under your belt. Are you settled into your office? Anything you need?

Yes. I could use some training…

Many business owners and executives make hiring decisions on the assumption that you already know how to do your job. After all they interviewed you, tested you and checked your references. “Thank god that problem is solved.” I believe most employees know how to do “the job”, but what they don’t know is how I expect them to do the job (my expectations!). This critical difference must be addressed from the moment the new employee joins your staff.

For most of you, labor is your biggest non-fixed expense. And yet you have more systems in place to watch the inventory or the lobby than systems for making sure that your new employee succeeds. And the longer the employee works for you, the less training they receive. It only gets worse as time goes on. My experience has shown me that most employees who are fired for “not doing the job” aren’t “not doing the job” because they don’t want to; they were not taught the proper expectations from the moment they were hired. As you will see direct communication is an integral part of making every new hire a long term success.

Training is not a program. Training is not a department. Training is a part of your job description. If you have a single employee working for you, their success or failure is your responsibility.

Many years ago I was fortunate to meet Norm Schaub. Norm was a Store Manager. I was a rookie, “wet behind the ears” District Manager. Technically Norm worked for me, but I promise you I learned more from Norm than he ever learned from me. You see Norm was on the downside of his career. He was in his sixties, had moved to Florida earlier anticipating retirement and took the job as a Convenience Store manager to keep busy. But he made a lasting impression on me.

When I first met Norm he immediately started going through his pockets almost as if he were having a spasm.

Norm what are you doing?

“I am looking for my notes. I always put them in my pocket. When I have a question, I write it down.”

And then he said the following words to me for the first time. I’ll never forget them.

“Paper remembers so I can forget.”

I’ll tell you why that is so important to me a little later.

During another visit a few months later he said something to me that was so profound I can still hear him explaining it to me 25 years later. I was complaining about an employee who had failed to do what I expected of them when he said,

“I have yet to meet the employee who woke up, came into work and said today is the day I plan on screwing up! If an employee is not doing what you want them to do, the fastest way to identify the problem is to look in the mirror.”

In essence, an employee that doesn’t do the job I want and to my satisfaction, is my fault.

Remember earlier when I said there are only two reasons to fire an employee – theft and basically not doing the job the company way? It is your job to teach the employee “the company way”. If you have failed to do this, their failure is your fault.

Training and developing employees, when done properly, never ends.

Training is not a department, it is everyone’s job.

Training is three parts.

 Education
 Motivation
 Behavior Modification

Next we will tackle the differences in these three areas and why it is important to recognize the importance of each one as you train and develop your employees.

Ironically, most companies get the first week or two right. They have a structured program to get employees off to a strong start. Heaven help you though once you have finished the structured part.

Tuesday, March 6, 2007

One Bad Apple...

One Bad Apple…

As I was perusing The Blade, our local newspaper, I came across an interesting article that helps validate my assertion that the hiring process is more than an aptitude test. Chemistry, passion, niceness… Call it what you want but the cost of hiring an individual who does not match your own style of management is very expensive. That is why I try to hire people who are outgoing, fun and who enjoy coming to work everyday. Someone who will love their work. According to Rueters on this 5th day of March 2007:

Study Finds 1 Bad Employee Can Ruin a Workplace

One “bad apple” can spread negative behavior like a virus to bring down officemates or destroy a good team, according to a new study examining conflict in the workplace.

Neagative behavior outweighs positive behavior, so a bad aaple can spoil the whole barrel, but one or two good workers can’t “unspoil” it, researchers at the University of Washington said in a recent issue of the journal Research in Organizational Behavior.

“Companies need to move quickly to deal with such problems because the negativity of just one individual is pervasive and destructive and can spread quickly,” said co-author Terence Mitchell, a professor of management and organization.

If a bad apple slips through the hiring process, he or she should be placed to work alone as much as possible, the studies lead author, William Felps, said.

The study defines negative workers as those who do not do tier fair share of the work, are chronically unhappy and emotionally unstable, or bully or attack others.

Mr. Felps said he was inspired to investigate workplace conflict by his wife’s experience with a “bad apple” and what happened when the worker was out sick for several days.

“When he was gone my wife said the atmosphere of the office changed dramatically”, Mr. Phelps said. “People started helping each other, playing classical music on their radios, and going out for drinks after work. But when he returned to the office, things returned to the unpleasant way they were”.

“He truly was the bad apple that spoiled the barrel”, Mr. Felps said.

The researchers said they found that a single “toxic” or negative team member can be the catalyst for a group’s downward spiral. In a follow-up study, the researchers found the majority of the peole they surveyed could identify at least one “bad apple” with whom they had worked and who had produced organizational dysfunction.

Hiring Managers could head off the problem by being more thorough when screening potential employees, Mr. Felps said. He recommends checking references and administering personality tests.


You are going to have to work with the individual you are in the process of hiring for eight hours per day, five days per week. You owe it to yourself and your team to make sure they are a good fit.

So what do you do when you make a mistake and the new hire turns bad? Most companies hire employees with the stipulation that “there is a 30/60/90 day probationary program and at that time we will determine whether or not to retain your services”. This is done primarily to satisfy the thick blanket of safeguards our litigious marketplace has forced upon us.

My grandmother, Gracie May Overcash Pritchard, always told me to “be bone honest”. That was her way of telling me to tackle problems by telling the truth. The true reason you are going to let this employee go is that you have a problem with their behavior. If you are any type of leader you should be up front, honest and tell them the truth. But if you wait until the “probationary period” is up to address this issue, shame on you. Employees want leadership and an employee should never be surprised to know they are being fired (let go, down sized, not retained – all euphemisms). If an employee is not behaving the way you want them to, it is your job to give them the leadership, training, tools and time necessary before you terminate them. This does not mean they have for ever, but if it is not working out after one week, it your job to tell them – not to wait until day 89. More on behavior modification later...

Saturday, March 3, 2007

Unlike You, They Are Not Mind Readers

You may be sursprised to know that for 25 years I have abided by the same two simple rules in every position I have held. Actually they are more principles than rules.

I know companies that have “employee conduct or operational manuals” that drone on for hundreds of pages. I have written some of them. But I have found over the years that “rules” have a nasty side affect – you have to enforce them. Unbiased. Everytime. No exceptions. Otherwise they aren’t rules, they are suggestions.

I am not suggesting that we do away with operation manuals, codes of conduct and ethics guidelines. I know we live in a litigious society and everything has to be documented to the nth degree. I am merely suggesting that operating a business on principles makes many complex issues a lot simpler. I find that as I surround myself with like minded individuals (passionate, principled, outgoing), the rules take care of themselves.

I cover these two principles with every employee that I hire. Every time. The most common cause for employee problems is a lack of communication. Later on I will give you another guiding principle that works for me. “I have yet to meet the employee who woke up one morning and said today is the day I am going into work and screw up." If an employee is not performing or behaving the way you want them to, look in the mirror to fund the root of the problem. You are looking at it. But more on this later.

I prefer principles of conduct and mine boil down to two simple principles. Here is what I tell every employee before they are hired:

Be Honest. Do not steal. Maybe it comes from my early days in the convenience store business where you have to worry about employee theft every day, but if you steal from me (the company, the client, the vendor) there are no second chances. I need to trust you. Period.

I still remember the day that I had to drive one of my store managers to the police station and have him arrested. He had been one of my finest managers for more than three years. Always ran a clean, profitable store. Employees loved to work with him. Never a problem. Always went the extra mile. Two months prior our company gave him an award for discovering a customer’s wallet with several hundred dollars in it, tracking him down and returning it. Money intact.

But on this unannounced trip to the store something didn’t “feel” right. For the first time probably in years I decided to do a “cash count” on him. A cash count is where you close the register and add up all the money to make sure there is nothing missing. Too much money in the till means you have a problem (theft – money doesn’t grow on trees – the thief just hasn’t gotten around to taking his cut). Too little money in the till means you have a problem (theft again).

On this occasion, I found WB with $800 of “my money” in his front left pocket. When I asked him why, he said he needed to borrow it over the weekend, he was not expecting me to come by and he was going to pay it back on Monday.

Funny thing – every time I have caught an employee stealing money from the company, they were only borrowing it. They always planned on paying it back.

I asked him what would have happened if he had asked me personally for the money and WB said, “You would have found a way to lend it to me.”

“What do you think we need to do now?”

“I guess you are going to drive me down to the police station.”

And I did. Truth is, I still miss Wes.

And no, stealing does not just mean money. It means theft. You do not need a list of what items can not be taken from a business. Hopefully, your own moral compass will guide you and if your moral compass is not in tune with mine, I guess I hired the wrong person. But for those of you who want examples - money, product, kickbacks from vendors, office supplies, computers, other people’s property including their lunch in the refrigerator… Perhaps the best way to determine what is right and wrong is to ask yourself, if Jeff were standing here watching me, would I feel comfortable doing this?

The Company’s Interests Come First. Seems simple enough to me. You are working for the company’s best interest. You should not make decisions that enrich you – the individual – but are detrimental to the company.

A job provides you with a living. The company must be healthy in order for you to continue to have a job. The two are dependent on each other. “Business is nothing more than the summation of the efforts of individuals”. And don’t get the idea that I am designing a one way system in favor of the company. It is a symbiotic relationship. Happy employees are more productive. Companies can not exist without employees. Employees do not work unless there is a company.

Most jobs are 50/50. By this I mean that I give my employees the latitude to do the job the way they feel most comfortable 50% of the time. The other 50% of the time their work is dictated to them. No room for negotiation. Each business will have its own definition of what is negotiable and what is not. At Hickory Farms, the 5 Step Sales Cycle was carved in stone. Greeting, Sample, Commitment, Invitation to Buy, Close. No variation.

However, I am not going to tell you how to greet someone. I will offer suggestions and sample scripts. “Good Afternoon, how about those Buckeyes?” “Nice to see you again!” “How is the weather outside?” “I like that sweater!” “Do you know what the square root if 15 is?” But ultimately, in order to be comfortable and successful, you have to determine the style that is most comfortable for you.

At The Custom Shop, I required employees to wear a suit to work every day. You get to pick the suit. And the shirt and tie. In the convenience store business I required you to show up, on time, every time for your shift. But you could swap shifts with another employee as long as your shift was covered and the other employee did not mind. At Tuffy Auto Service Centers technicians were required to use an inspection form when looking at customers cars “insuring uniform diagnostic procedures”. But they could choose their right or left hand. Start at the top or bottom. Use pencil or pen. Front page or back first. I didn’t care. And when entering a customer’s vehicle, always use a seat cover and floor mat BEFORE you get in. You can choose which one to put in first.

Life is about give and take. Work is no different. Most employees know this and what they really want is leadership, not a vacuum. Tell them when they do something right (in public). Tell them when they do something wrong (in private). Clearly and consistently communicate your expectations and follow up with them. Unlike you, they are not mind readers.

No ambiguities about my expectations when you take the job.

I Would Rather Tame a Wild Duck...

So what makes an individual worthy of recruitment? Note I said recruitment, not "run an ad and lets see what trickles in. Maybe we will get lucky."

There are a lot of factors to consider when looking for a new employee, but to me nothing replaces passion. Passion for the work. Passion for family. Passion for life. I want to surround myself with people who enjoy life, not people that simply exist.

As you look out into the marketplace there are a great number of people who you can recruit to join your team, but for me, I will select passion over just skills anytime. Skills can be taught. Passion can not.

While some positions (rocket scientist, doctor, nuclear technician) experience is a dominating factor in selecting a new hire, there are millions of positions each year that are filled where experience and aptitude alone does not have to be the determining factor in the hiring decision.

Most positions that interact with the public need employees who are passionate about what they are doing. They are the face of the company. The nice lady at the video store is the face of XXXXXXX video, whether she chooses to be or not. Salesclerk, receptionist, secretary, customer service representative, stock clerk, managers, tellers, hair stylist, manicurist, sandwich maker, drive through attendant, flight attendant, pilot, ticket counter, auto mechanic, Seven Up salesman, telemarketer, police officer, fireman… If you interact with the public or individuals outside of your company, you are the face of the company. And as the hiring agent responsible for filling all these positions, it is your responsibility to select the very best person for these positions. And all things being equal, hire the individual who has the most passion. Someone who enjoys interacting with people. I will take a lesser “qualified” individual if I think I can train them in some of the operational issues if they demonstrate a passion for the job to me. Every time.

“I would rather train a wild duck, than wild a tame duck.”

I can teach a bright outgoing person to ring up a sale, answer a telephone, and use a computer. I have had considerable less success training an introvert to smile and make a client feel good about doing business with my company.

OK, that covers sales positions. What about all the other positions I have to fill? Accounting, auditing, tax, truck drivers, meter readers, scientists, number crunchers, janitors, maintenance, painters… They have little or no contact with the public or other companies.

But each of these employees is the face of your company because they interact with other employees in the company, frequently across departmental lines. I feel that every employee who works for me is a direct reflection on me. Personally. I hire accordingly.

Rely on some instincts, not simply the test scores.
Let’s look at how technology has affected the hiring process today. Back in the time of “yore”, when you wanted a new job you frequently contacted a recruiter by telephone. You then mailed a resume. The recruiter then called you back and you entered into a dialog about strengths and weaknesses, experiences, you actually had a conversation, which started a relationship. There was interaction. You got to know one another.

Today for many positions, everything is done on line or by email. “Data” (your accomplishments, skills, education, etc.) is complied into databases and searches are done by recruiters looking for specific skill sets. I spoke to an executive recruiter recently who told me that when he posts a job search, he almost instantly receives more emails than he can possibly respond to. “I upload them into the database and when someone needs a person with SQL or Oracle experience, I can get an immediate print out of all the individuals in our database with the pertinent skill set. I then set about contacting the individuals. The vast majority of these individuals I have never spoken with. We are simply over whelmed by information.”

He went on to say in many respects he “missed the good old days”. He may have had fewer contacts, but he knew something about everyone of them and frequently followed their careers for years. (As a side note, I have experience working in SQL, Access and Oracle – on the analysis end user side of the product – but I still receive unsolicited job offers from people who “found” my resume online and feel I would be “the ideal candidate for an SQL database manager position I am looking to fill in…” )

I have enjoyed a reputation, at times, as being “A little out there”. Frequently I interview “fringe” candidates and occasionally unqualified candidates. I have been asked on more than one occasion, “Why are you bothering to interview that person? They are not qualified for the position.” It is simple. I look for people, not just skill sets. I look for the diamond in the rough, not the perfect, finished product.

I wonder where I would be today if Norman Gates had not taken a chance on me in 1973.


WARNING: You can only adopt a passionate new hire program if you are willing to invest in Training a Developing your employees.

I have faith in my ability to train and develop.

Friday, March 2, 2007

Back to Basics – It’s the People Stupid

Back to Basics – It’s the People Stupid

I am amazed that some businesses stay in business. I guess one of the advantages to being a large company is that it allows you to make more mistakes. “Sales cover all sins.”

I was visiting my local video store yesterday. It is part of a large national chain that has consolidated a series of independent video chains over the years. And even though the building is the same, this location has had three names over the past few years. But “Josh”, the store manager, has remained constant. He is one of the reasons I continue to go there rather than sign up with one of the mail order companies.

Today I noticed the large “Now Hiring” sign on the front door. And the checkout. And in the front window. I wasn’t too surprised since it seems like Josh works there all day, every day. However today he was enjoying a rare day off. During an earlier visit I had asked him about the hours he worked. He admitted that worked a lot of hours, mostly because it was hard to find good help… Maybe I should consider working here part time I thought. I have always wanted to know more about the video rental business model…

Today, I stuck up a conversation with the clerk behind the counter. She also mentioned the difficulty in recruiting help, so I took a chance and asked if they were still looking for part time help.

“You bet! Always!”

May I have an application, I would like to apply.

“Sorry, we don’t have any. Ran out.”

“Must make it hard to recruit if you don’t have any applications.”

“It sure does. I had someone in here yesterday asking for an application and had to tell them that we were out.”

“Can I go to your web site and download an application?

“I have no idea.”

“Do you know when you will have applications?”

“Nope.”

Vince Lombardi once said that football is nothing more than blocking and tackling. I believe that this business would not fair well in Mr. Lombardi’s eyes.

One thing that I have learned in more than 25 years in business is that “business is nothing more than the summation of the efforts of individuals”. For more than 25 years I have carried a card in my wallet that describes my job description and this job description has not wavered from one industry to the next. Following these simple rules has always allowed me to be successful. Here is my secret. Printed on the front:

Recruit
Train and Develop
Motivate
Retain
Enforce Company Standards


Printed on the back:

The highest level of performance a supervisor can expect from the people he supervises is determined by the minimum standards he has established and maintained.

That’s it.

The first rule of running a successful business is to always be recruiting. Never wait until you have an opening to recruit. Part of this process is to make sure that you “block and tackle”, so having applications on hand is paramount to successful recruiting.

Many people blame the lack of competent employees on “low employment”, “the decline of our education system” or “an unmotivated work ethic among America’s youth”. All of this may be true, but perhaps one of the reasons this company is having staffing problems is that they do not make it easy for clients (clients are prospective employees) to do business with them.

And we know that this location has been out of applications for at least two days. I am willing to bet it is even more.

I know that mistakes happen. Sometimes you run out of applications. But if always be recruiting were part of the DNA of this organization, this employee would have known what to do. There would be a back up plan in place. She already had my name, address, phone number, email address, etc. because I am a member of their video club. She could have said I will check with Manager, District Manager, someone and have them contact you. Or I will call you as soon as the applications arrive. Or let me check the web site for you. (Please note that I was the only customer in the store at this time.)

Recruiting is more than a Help Wanted ad in the newspaper or a sign in the store. It must be part of a business’ genetic code. Recruiting is a course of action, not a passive undertaking.

For the record I did visit the company’s web site. Sure enough there is an application that you can download and fill out. So I did. Can I fill out the application online so it is routed to the appropriate individual in the field? No. Here is the recruiting page off their web site. I have deleted the company’s name to “protect the innocent”.

Work Hard! Play Hard!
That's our motto at XXXXXXX. We're always looking for diverse, dedicated, enthusiastic people who want to work hard and play hard in our stores and in our Support Center. Opportunities at XXXXXXX include those at the store level, field management level, and at the Support Center (corporate office) which is located in YYYYYYYYYYY. YYYYYYYY is a family community located just 90 miles north of the world's most beautiful beaches. We are an Equal Opportunity Employer, dedicated to a policy of non-discrimination in employment on any basis, including race, color, age, sex, disability or national origin.

How To Start Playing

Store Opportunities
From North to South and East to West, XXXXXXX has stores all over North America that are operated by some of the best Associates in the industry. If you're interested in joining our diverse store team, check out the following jobs we offer in our stores:

Store Manager
The Store Manager is a take-charge person... a problem-solver... a supervisor... and a team leader all rolled into one. He or she provides supervision, motivation and leadership to the staff and exercises management control over all operational and service related functions in the store. He or she insures that the highest standards of Customer Service are maintained while protecting company assets. Store Managers are eligible for quarterly bonuses based upon store performance.
Apply in person at your local XXXXXXX.

Assistant Store Manager
The Assistant Store Manager understudies the role of Store Manager by assisting in training, scheduling, and supervising staff, coordinating promotional activities, and maintaining profitability. Assistant Store Managers provide direct supervision of Senior Customer Service Associates and Customer Service Associates. In the absence of the Store Manager, the Assistant Store Manager is responsible for the effective operation of the store and maintaining the highest standards of Customer Service from all personnel on duty.
Apply in person at your local XXXXXXX.

Senior Customer Service Associate
The Senior Customer Service Associate sets a positive example for Customer Service Associates and is responsible for resolving customer problems. The Senior Customer Service Associate also acts as the Manager on Duty when assigned by the Store Manager.
Apply in person at your local XXXXXXX.

Customer Service Associate
Our Customer Service Associate is the direct contact with our customers. Part-time Customer Service Associates provide outstanding Customer Service and are committed team players.
Apply in person at your local XXXXXXX.

How to Apply for a Store Position:
If you are interested in applying in person at any of our locations, please print and complete a copy of the attached Employment Application and take it to your nearest XXXXXXX or affiliated store. Find Your nearest store.

It sounds like a great place to work. However, I would suggest that they include a simple link in the web site to replace “Apply in person at your local XXXXXXX.” “Click here to fill out an online application which we will then immediately forward to someone who will contact you, or Apply in person at your local store.

Always be recruiting. Recruiting great employees is hunting. Asking interested parties to take an application to the nearest store is gathering. I prefer to put my business fate in the hands of a hunter. Even when you do not have an opening (unless you are operating in a very unique business) eventually everyone has an opening they have to fill. You best course of action is to always be on the look out for talent. Three tips for success:

Always carry a business card. When you are out on the town, if you find some one that strikes a cord with you give them a business card. Invite them to sit down for a cup of coffee. Get to know them. Always be looking for the next member of your team.

Keep a list. Realizing that you may not be in a position to hire anyone you would like at any time, keep a list. I keep mine in a folder in my desk.

Keep in touch. I try and stay in contact with these individuals throughout the year. A quick phone call. Fire off an email. Let them know you are still interested in them.

Rule number one – Always be recruiting. Business is nothing more than the summation of the efforts of individuals.

Next, let’s look at what should be looking for when you are recruiting.