Sunday, October 11, 2009

The Undercover Manager

I was visiting with a friend of mine a while back about what it takes to be a great manager. He said, "You know, it is like, when a manager is really doing their job right, other people don't even know that they are being managed." I responded that it was almost like the manager was undercover. That is when it hit me. The truth is that when a person IS managing the right way, people will respond to them without having to be pushed, coaxed, or coerced. They simply do what the manager wants because the believe in the manager.

It has been my experience that I was always willing to work hard and perform at a high level when the person managing me was someone that I trusted. If I did not believe in them, or trust them, then I would not perform for them. As my friend and I continued our discussion, we went over some of the managers that we had in the past that were undercover, and then some who were not the least bit covert in their style. The characteristics that seemed to make the great ones great were...

  • They listened intently to me and to what I was experiencing without jumping to solving the problem before I had truly defined what it was.
  • They found ways to ensure that I had a chance to meet my goals - both personal and professional.
  • They went out of their way to equip me for success.
  • They invested in themselves.
  • They admitted when they were wrong.
  • They were genuine.
  • And, they focused on people so that those people could focus on results.
I found that my response was to find ways to make them look good. I wanted to succeed because I wanted to hear the accolades that I knew I would get from them. I also wanted to see them beam with pride in their team. I knew that if they did not succeed they would be let down, but would shoulder the responsibility. I didn't wan my manager to have to suffer like that. I am sure that I was not thinking of all of this at the time. However, in reflection, we can see clearly what our motives were.

As a result of this discussion, I have begun to put together the skills of a great manager in short video clips. I have always believed that people need help at the time of need, not just on "training day." You can check out some of the videos on www.undercovermanager.com and on www.murfsystems.com. I would love to get feedback on how to make them the most effective. I was going for the "undercover" appearance by sneaking up to the desk and giving short bursts of advice. An example would be that if you needed advice on how to confront a person or calm an angry customer or conduct a performance review, it would be easier and more effective to go to a specific video, watch how to do it in a couple of minutes, then implement. Difficult would be to call someone up and ask them to walk you through it. They might be available, or they might not. Either way, your success as a manager is in your hands, and nobody else's.

If you have undercover management success stories, you can post them as a reply to this blog, or email them to me at mgr@undercovermanager.com.

I look forward to hearing from you and getting your feedback, stories, and input.

Monday, July 20, 2009

Building Sales in the Car Industry


Cecil Van Tuyl, 78, started in the car business selling used Studebakers. In 1950 he purchased the first of the many dealerships that was to grow into V.T. Inc., a Kansas City, KS-based operation that today consists of many franchises and 34 stores. His son Larry operates an equally expansive operation in the south and southwest. In June of 2005, Mr. Van Tuyl celebrates his 50th anniversary in the retail new car business. Mr. Van Tuyl was interviewed by Dealer Magazine to learn about his success.

Cecil was asked, “What does your organization do differently than other dealerships to be successful?”

“Hiring the right people and training them, constantly. You've heard it before, but the car business is really a people business. Turnover in the fixed end is an important focus, but for all of us the turnover in the sales department is a real problem. Fortunately, due to our hiring policies and continuous training our sales turnover isn't too bad.”

Cecil continues, “And you know, that sales job is a tough business. It's hard at first, unless you're a born super-star, to get the critical referrals and repeat business a salesman needs to make the necessary volume to make a good living. The gap can sometimes be several months. Here, to keep these new people in the game, we give them a guarantee for several months, that critical time where so many new salesmen fall by the wayside. Our program works like this: We give the salesman a guarantee through several months and then we cut it back a little because we figure they should be selling a little more after a few months. In essence, this guarantee lasts for six to nine months, but the guarantee amount decreases with each passing 30- to 60-day period. This is just a guarantee to put bread on the table while the salesman is getting started. It starts off at $1,500 to $2,000 per month even while they are in training.”

Cecil was asked, “What volume must your salespeople achieve each month?”

We won't keep a salesperson around who is not averaging at least 10 units a month. But if the sales rep isn't selling 12 to 14 units a month over time, with an average commission of $350 to $400 per unit on Fords and Chevrolets, they're not going to make a very good living.”


Cecil was then asked, “In your opinion, what are the biggest challenges facing new car dealers today?”

“Well, we were just talking about the biggest one and that's sales people. Believe it or not, we have a bigger problem coming up with quality people to sell cars than we do to service the vehicles. You would think it would be more difficult to find people who want to work with their hands in the service department, but we can hire technicians easier than we can good sales people. (Source: www.Dealer Magazine.com, 05/2005)

Sound familiar?  It should because the new and used car sales industry suffers from some of the highest turnover rates of any industry.  So, what does this turnover cost you?  Have you ever stopped to think about the dollars you are spending on attracting, recruiting, hiring, training, and the lost sales while all that is going on?

What makes an outstanding selling professional? What do they look like? What kind of background do they have? How tall are they? Salespeople come in every imaginable form known to mankind. As a hiring manager, do you spend countless hours trying to figure out which ones would be successful selling your cars and which ones wouldn’t?

No matter how long you have being hiring and interviewing, sometimes you’re right and sometimes, you’re wrong. The problem is – those mistakes cost you a lot of time and money. Time in training the wrong ones, and money in frustrated prospects and customers not being treated right are several of the losses you suffer.

It is hard to tell what combination of intelligence, communication skills, technical skills, aptitude, perseverance and a dozen other factors make up successful sales professionals. And then, as if that wasn’t challenging enough, some salespeople sell some cars better than others and some salespeople relate to different kinds of customers better than others.

 

Technology tools and resources are available to help you make the right selection for your next sales hire, and give you extremely accurate information on your current sales team. What’s in it for you? Increased performance, which translates to increased sales is just one of the benefits.

There are many types of assessments on the market today. Sixty-three percent of Fortune 500 companies are using assessments in building stronger teams and in hiring new employees. Why would so many Fortune 500 companies use performance assessments? Because they work!”  (Source: www.Dealer Magazine.com, 06/2002)

 

According to research on the subject, costs to dealers for their sales force turnover will vary from $5,000 to more than $15,000 per lost salesperson.  Costs include, recruiting, hiring, training, and the costs of lost sales.  Additional costs include hiring more people than you actually need because everyone does not meet their sales goals so you throw more people at the problem hoping someone will be the top salesperson you are needing.  There is a better model.

It is clear that selecting the best person for that open sales position requires an edge so that your dealership out performs the competition.  Research has demonstrated that the top 20% of sales persons get 80% of all the sales and the bottom 80% fight over what’s left.  Here are a few reasons why you should use a web-based, validated selection tool for your sales force:

1. It is the right thing to do. Most automotive salespeople are carrying a quota between $1.5 - $3 million per year in sales. You want to insure success, hire the right people the first time. To keep the momentum going, use performance assessments like the Selling Skills Assessment and Management Profiler on your whole sales and management team to get a full understanding of their strengths and challenges. Use the DealerSmarts on all pre-hire candidates for sales positions.  You can’t fix what you don’t know.

2. It is the profitable thing to do. In Carl Sewell’s book, Customers For Life, he describes how he uses assessments in his hiring process. “The odds of somebody working out were about one in four before we started testing, and now they’re better than one in two. That makes testing a hell of a good deal.” (Customers For Life). Sales training is part of growing a strong team. Yet, we often provide a general sales training instead of the focused training needed. If we knew the areas before we invested in training, we could spend the right money on the right training. Performance assessments can target strong and weak areas in your sales and management team with a high degree of accuracy.

3. It provides you a competitive advantage. What will set your dealership apart? If your inventory is about the same as the others, if your service and parts department performance is like the others, and if your CSI rating is about the same as the others, what will set you apart? It will be your people. What do you have to work with? Without objective data to validate and support your “gut feeling,” you really do not have the complete picture. Your competitive edge is your staff, and knowing what you want, by objective analysis, which allows you to hire only the very best.

What if you could know these things about your current staff and candidates you are considering hiring:

  • Sales Characteristics
  • Personal strengths
  • Communication skills
  • Time management
  • Motivation
  • Management
  • Leadership skills
  • Areas For Improvement
  • Most importantly, prediction for sales success!
  • And more…..

4.  It is cost effective.  Compared to the cost of not using assessments as an edge, you are risking thousands of dollars annually in wasted time, training, and lost sales.

The DealerSmarts, Selling Skills Assessment and Management Profiler performance assessments are Internet-based, and require the applicant to answer a few questions, and it then provides an immediate report printed on your printer in your office.  The applicant can take the assessment from any computer that has Internet access.  The report is easy to read, offering accuracy between 95-99%. (Validation report available upon request.) How could you use this at your dealership?

First, have all your sales staff and management take this assessment to determine a baseline of performance. Look at the similarities of the top salespeople. Use this as a benchmark for all new hires. Second, use the DealerSmart to get to your short list of sales candidates, and then conduct your normal background checks and interviews. Now, compare the ideal candidate to the top salespeople identified in the normalization group. If he/she has what it takes, you have a good chance this new hire will perform to a strong level.  The DealerSmart will provide an indication (accurate 99% of the time) of the potential for this candidate to sell at least 10 units per month.  The higher the score, the higher the prediction for unit sales.  The lower the score,the lower the prediction of unit sales.

Again, this is your competitive edge in the marketplace. By knowing what to train on before you invest plus you increase your odds of hiring the best potential sales person before you spend all your money on training only to find out that they can’t or won’t sell.

We know that performance assessments are helpful and accurate. We know that they can improve your current team and the candidates you are seeking. So, how much do they cost? Depending on quantity, these assessments range from $35 - $150 each if purchased individually.  Considering what you are spending on advertisement, time invested in interviewing, and costly learning curves, this investment is well worth it.  To make it better, for a low monthly fee, you can have unlimited access to the tools mentioned above.  This makes the most sense and ensures that you are not limited on your use of the tools.  If you use the tools over time, you will increase the strength of your sales force and be able to reduce the total number of salespersons needed to meet or exceed your sales goals.  A model also exists for increased service sales.  This model is the auto industry version of a training program known as "Sales Judo."

Why not test-drive this tool today?  Get the competitive edge before your competition gets it.  We are so confident in our tool, that we will identify your top and bottom performer based solely on our assessment without you telling us which is which... for free!  Call or email us today for this offer.

Start building a top performing team today!

For more information on the tools, or the "Sales Judo" process, contact Jody Holland at 806-355-5567 or jody@murfsystems.com.  

Effective Management

Part 5 of 8 in the MuRF Solution-centric approach

Effective management is the cornerstone of effective employees.  Most people can think back to when they worked for a manager that was ineffective.  When asking people to describe a bad, or ineffective manager, words like mean, self-centered, arrogant, and overbearing are often used.  However, the other end of the spectrum is just as true for ineffectiveness.  Managers who are withdrawn, disengaged, and apathetic will also not get the results that the organization needs.  Many times, managers become managers because they were either good at something unrelated to managing people (i.e. building widgets) or they were just such a good person that they deserved a shot.  Effectiveness and being a good person, or even a great widget maker, are completely different from one another.  Effective management can be defined simply as the ability to accomplish the right work in a timely manner through others.  It is the "trough others" part that makes it tough for a lot of people.  Individual performers have a tendency, when promoted, to continue to perform individually.  They do not have a tendency to make a magical change into a great manager because of the title.  Particularly when you account for the attitudes of the multiple generations, you will see that effectiveness will behave differently for each unique group of people being managed, and in some cases will have to be adapted to each individual.

Young people (Millenials and Gen-Xers) are not inclined to automatically respect a person because of their age or their title.  The Boomers and Traditionalists had a tendency to show respect based on rank.  This stems from the reality that more than 60% of males in the traditionalist generation were active duty military and learned the rank system as the chain of authority.  This could be referred to as "job definition" authority.  After job definition, people tend to rely on expertise.  This has been frustrating for the multiple generations because older generations describe expertise as experience, while younger generations define it by education.  The third type of authority in management is "contractual" authority.  This would be used in a case where someone is contracted to assist with an area.  The expectation is that they are given authority because the company trusts them.  In each of these three types, there is a fundamental flaw for today's workforce.  That flaw is that employees are expected to blindly give commitment before there is any proof that it is a good idea.  This leads us to the fourth type of authority - "relationship" authority.  This authority is based on the idea that managers have demonstrated that they care about the employee and are earnestly seeking to provide the best environment for them to achieve success in.  Relationship authority is the only type that appeals across the board to followers, regardless of their generation.  It is not the easiest to implement, but it is the only one that leads to employee engagement.  If our goal is to accomplish the right work through others, then we have to understand how to engage them, and we have to develop the right skills in ourselves and our management team.  Development should always be from the very top down.  This may not be possible, for the CEO to participate in all development sessions, but it makes a profound impact on how seriously the rest of the team takes the development.  There are 12 basic skill-sets and 6 advanced skill-sets that need to be developed in any leader/manager to assist them in becoming effective.  

The first 12 skill-sets are taught through the MuRF Buddy-2-Boss Series...

1.  Generational Differences: The new face of diversity in the workplace is not just one of color and ethnicity, but one of age. The greatest diversity challenge we will face for the next decade is the integration of four generations into a cohesive and effective work team.

2.  Communications: Effective leaders understand the nature and characteristics of effective communication. Participants will learn the cues of non-verbal communication and how to project appropriate messages with non-verbal cues as well as why people interpret the same messages differently...

3.  Employee Motivation: Motivated employees are needed in our rapidly changing workplaces. Motivated employees help organizations survive and thrive. To create this more productive environment, managers and leaders must understand the principles and psychology of motivation.

4.  Coaching: Most managers intellectually accept the value of coaching. How to coach is another matter. Participants will learn the most effective skills of coaching employees. Coaching enables a manager/leader to propel their employees in the right direction, reinforce good behaviors, and pro-actively eliminate bad behaviors.

5.  Conflict Resolution: Conflict is a common event in business settings. There is good conflict and there is bad. Which way it is seen is determined by the way it is faced? Good Conflict Resolution builds stronger and more cohesive organizations and more rewarding relationships. Effective Conflict Resolution is teachable.

6.  Corrective Counseling: Participants will learn how to facilitate their employees' improvement, instead of merely disciplining them. The course covers when and how to apply corrective action, and provides strategies for motivating employees to improve. Learning the proper techniques moves a leader from facing rebellion to employees who desire to follow.

7.  Problem Solving: Participants will learn the basics in identifying and solving problems. By using these techniques, participants can start to tackle problems which might otherwise seem huge, overwhelming and excessively complex.

8.  Setting Goals: Through interactive learning, participants are exposed to Work-life Balance skills to better manage both projects and relationships. The outcomes for the individual are more control, value and balance in the professional and personal lives.

9.  Group Decision Making: Many groups meet to solve problems or make decisions. An awareness of how decisions are made and what prompts groups (teams) to move in particular directions is critical to effective leadership.

10.  Building Effective Teams: People in every workplace talk about building the team, working as a team, and belonging to a team, but few understand how to create the experience of teamwork or how to develop an effective team. Participants will learn the why and the how of team building as well as the systematic process of a team.

11.  Priority Management: Effective Priority Management skills are essential for success. These skills are the practical techniques which have helped leaders in all industries and sectors to reach the pinnacle of their success. Without effective prioritization and task management, time manages us.

12.  Ethics and Values: The best leaders exhibit both values and ethics in their leadership style and actions. A leader’s values become evident by the behaviors (habits) they exhibit. Understanding what a leader is portraying will enable them to develop and expand credibility with their teams.


The 6 advanced skill sets are taught through the MuRF Boss-2-Leader Series...

  • Leadership Defined – It used to be a common belief that all great leaders look alike.  They had the same skill set, thought patterns, and behavioral tendencies.  Very few people believe that today.   In order to become effective as leaders, we must understand what it is that we are trying to become.  The practical skills and behaviors of a leader are what make up the perception that others have of them as a leader.  The first course in this series defines leadership, its behaviors, attitudes, and practical functions. 
  • Leadership Styles – Each of brings our own “style” of leadership to the table.  Understanding our style, what it means, and how it affects others will give us the foundation necessary to learn to read people, adapt to their needs, and manage our style.  There are very distinct style categories that we fit into.  These style categories have consistent behavior sets with them.  Therefore, once we understand what category style we belong to, we can better manage the results we get from others.
  • Strategic Thinking -  A person’s thoughts lead to their decisions, which lead to their behaviors, which lead to their results.  That means that if we can purposefully control how we think, then we will ultimately control how we succeed.  In business and in life, strategic thought processes change our outcomes.  As we develop our skills in broadening our thinking, we will begin to view the world differently.  We will develop the ability to dig deeper and better evaluate all of the possible angles for both problems and opportunities.  No challenge is overcome without strategic thought and action.
  • Leading with Clarity Rather than Certainty – There are hosts of leaders in this world that are absolutely certain about being right, about the direction they are going, about who they are to the world.  There are very few, however, that are truly clear on the right direction.  Developing clarity in business enables a leader to make the right decisions for the right reasons.  Only having certainty will cloud the judgment of a leader, often keeping them on the wrong path.  As our businesses are developed, it is critical to be clear on what is best for all stakeholders.
  • Employee Engagement – Approximately half of our workforce is actively disengaged.  This means that they are not satisfied, motivated, or committed, and they are certainly not an advocate for our organization.  This course establishes the stages that employees must go through and how to transition them through those stages into an engaged and accountable workforce.  You will learn what engagement is, what managers and leaders do to create it and what they often do to destroy it.  You will also learn how to maintain an engaged workforce once you get them there.
  • Transformational Leadership – Creating lasting change within organizations is about transformation of people, attitudes, and culture.  From understanding who you are as a leader, to recognizing your style, to thinking the right way, to engaging your teams, you have to be able to change the hearts and minds of the people you lead.   This course walks you through the transformation process and how to build a better organization, that will produce significantly better results than you could have ever thought possible.

Understanding and developing these skills is a process.  It does not happen overnight and the change that happens is incremental.  Each course is designed to build off of the previous one, resulting in a completely new behavior set from the manager/leader.  Be patient, but persistent on the development of your managers and leaders.  It will pay huge dividends in the long run.

For more information on how to build effective managers, contact Jody Holland directly at 806-355-5567 or by email at jody@murfsystems.com.


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Monday, July 13, 2009

Succession Planning

Part 4 of 8: MuRF Systems’ solution-centric approach to organizational success.

Succession Planning is the process of finding and developing a pool of leaders who can meet the organization's current and future personnel needs. It is about moving the right people with the right skills into the right jobs at the right time and getting the wrong people out of the way. The challenges that many organizations face in relation to effective succession planning are:

1. Knowing who the right people are and why

2. Understanding what the needs of each leadership position are

3. Creating a plan the allows for buy-in from employees at all levels

In 2005, Harvard Business analyzed the cost of acquiring new talent vs. retaining talent within the organization. Harvard places the cost of replacing an executive at three (3) times their annual salary. That would mean that a $95,000 per year executive would have a measurable cost to the organization of $285,000. To complicate things, baby boomers are set to retire in record numbers with the rebound of the stock market. It is estimated that if the market rebounds, as it traditionally has, as many as 61 million Americans will retire in the next two years. We know that we need to keep people, but the question is which ones. There are several ways that you can identify the high-performers within an organization.

1. Their current output, appraisal rankings, and achievement record can be evaluated.

2. Valid 360 evaluations can be used.

3. Psychometric assessments, looking at leadership behaviors and competencies can be used to identity character sets that need to be replicated.

For decades, promotions seem to have happened in a natural progression. You would begin by learning the ropes in a company, pay your dues, work your way up through loyalty and hard work. Management would notice and give you an opportunity to move up more and more until you reached the highest level you were capable of succeeding at. However, each generation grew up with different values and experiences. This means that every generation brings their own ideas about work, loyalty, growth, etc. to the table. Many boomers have experienced frustration at the way the younger generation works and thinks. In order to create a business that will prosper into future generations, we have to have an adaptive plan for how we will overcome obstacles and blend the new with the old. We cannot demand that everyone be like it was in 1950, 1970, even 1990. The world is not the same anymore. In order for the strategy to be effective, it is necessary to follow seven (7) basic steps to success in succession planning. They are:

1. Foundational planning
You have to truly map out what you wish to accomplish as a result of implementing a succession plan. Don't implement one because "everybody is doing it." Understand who is potentially leaving your organization, what knowledge they possess that might be only in their head, what they are like (values, behaviors, results) and what you want for the future. Much of the success that exists within any business is from its people. Even with a great product or service, without great people, success will not come. Map out when, how, and why a succession plan is needed.

2. Communicating the plan and goals
Once you have completed the foundational planning, refine the message that will be sent to each of the employees via staff meetings, intranets, and other mediums of communication. Make sure that the goal of business growth and employee growth are well documented and buy-in starts with the very top person in the company and works its way down to all levels. It is ideal to find some champions within your organization that will sing the praises of the idea to their peers to alleviate any heartburn that might exist.

3. Identifying the existing leadership characteristics in your team
The office of personnel management conducted 13 years of research to identify the specific leadership core qualifications that are needed in any organization in order to attain success. It is ideal to review these and identify which of the 27 are the most critical in your organization and whether or not the values, behaviors, and competencies vary by location, division, and position.

4. Assessing your bench strength
Using a combination of Leader Talent 360 Evaluations and psychometric assessments, an organization needs to identify where their leaders are, beginning at the very top and working their way down. Many time we think a person is great because we relate well to them. We need to know, not think, that the person has the competencies to succeed and in which position they would be best suited. This can be done by creating success patterns by job position, level, and industry. The Leader Talent 360 Evaluation, a MuRF solution, will enable an organization to see exactly where their skills development needs are and what needs to happen in order to overcome the existing skill gaps.

5. Identifying existing high-potentials
Once leaders at all levels have been evaluated and assessed, a talent map can be created using that data. As a part of the talent map, skill gap clusters will be mapped out allowing the organization to create a training plan for small groups as well as for individual coaching and development. This talent map will show who has the closest match for success moving up to future vacancies. This is your contingency plan for when people do retire, quit, or leave suddenly.

6. Strategic talent development
Based on the skill gaps, developmental needs, and business model of the organization, specific training and coaching would be implemented in order to ensure the growth of the organization in the right direction. There are certain skills that all managers need, certain skills that all leaders need, and specific skills that your managers and leaders will need in order to ensure growth in the right direction.

7. Evaluation of the plan, participants, and future
Never forget to go back and inspect what you are doing. You can evaluate the plan, people, etc. in several ways. One way is to re-identify who is likely to leave in the next 1,3,5, and 7 years. It is also important to re-evaluate their skills, competencies, and attitudes through the Leader Talent 360, psychometric assessments, and interviews. Finally, you need to evaluate the state of the organization. It is ideal to do an employee climate survey at least once per year to keep your finger on the pulse of the people at all levels in the organization.

To quickly sum things up... Know your people and how they feel about the leadership, the organization, and the future. Invest in your people through proper planning, development, coaching, and spending time. The more you know about what they hope to achieve with their lives, the more you will be able to identify what the future holds for you and your organization. MuRF would love to assist you and your team in identifying your high-potentials, ensuring they are ready to manage and lead, and managing the succession plan.

For more information or if you have questions about this solution, please contact me, Jody Holland, directly by email at jody@murfsystems.com or give me a call 9-5 CST at 806-355-5567. I look forward to helping you plan for the future and succeed now and into the future.

Friday, June 19, 2009

Selecting The Right People

Part 3 of 8: MuRF Systems’ solution-centric approach to organizational success.

Selecting the Right People - Many people believe that their is an art to finding top talent.  According to Robert Kiyosaki, author of Rich Dad, Poor Dad, the first and most important step in finding the right people is to get rid of the wrong ones.  This takes a holistic approach to managing HR.  From the selection side only, there is a process that you will need to follow in order to get the right team members through the door.  Obviously, the best way to begin is by being the right company.  Your reputation will precede you.  If you are not the kind of company who values performance and can demonstrate that by eliminating non-performers and rewarding performers, then you will have a lot of trouble attracting performers.  The 6-step process that will help you succeed is...
  1. Define What You Want
  2. Make The Process Objective
  3. Create and Match to Success Patterns
  4. Use Situational and Group Interviewing
  5. Use Background, Credit, Sex Offender, and Other Checks
  6. Make A Conditional Offer of Employment
1.  Define What You Want - When managers describe what makes a person a top performer on the job, their amount of experience or where they worked almost never comes up.  The characteristics of a great employee are listed as... integrity, work ethic, reliability, teamwork, communication, style, mission focus, not having to worry when they are on the job, and things of this nature.  The next question I ask managers after they describe what a great employee is like, would be...  Where are those things on your application?  The answer is that they are not on the application, anywhere.  We try to deduce those things from looking at the number of jobs, etc.

2.  Make the Process Objective - The first and most important word here is "Process."  Most organizations either have no process or one that could only be loosely defined as a process.  A process is a set way of doing things in order to create consistency.  Objective means that it is done in a way that takes out the emotional response for the purpose of simply getting the best data for decision-making.  An example would be that where I reside, Texas, the handshake and looking someone in the eye are considered viable ways to judge someone's integrity, work ethic, commitment, etc.  I have heard numerous times that when you shake a man, or woman's hand, you can tell what kind of person they really are.  Reality check... You can only tell a lot about a person's handshake by shaking their hand.  According to SHRM (Society of Human Resource Management), two-thirds of all hiring decisions are made in 4.3 minutes or less.  Most managers that I have spoken with say that they know in the first 10 to 20 seconds of meeting a person what they are going to think of them.  If that is the case, there really is a problem.  That means we spend the next 20 or so minutes convincing ourselves that we were right.  The process, defined in the six steps here, is one that looks at people for what they bring to the business, not for whether they are like the interviewer.

3.  Create Success Patterns and Match Candidates to Them - A success pattern is a way to match the psychology of the individual to the metrics of proven success within an organization.  The way that you accomplish this is by assessing three or more successful people in the same job, team, etc.  By evaluating existing top performers, you will be able to pick up on the success characteristics that are consistent.  Once you have a pattern for a position, you will be able to match people up to that pattern to find out where they match and where there are gaps.  You then decide if you are willing to invest in the person where the gaps exist in order to make them successful, or if you prefer to keep looking for that "right" candidate.  Assessments like the Pro-Screen (for non-managers), the Management Profiler (for supervisors and key positions), the SMARTS (for sales, marketing, and promotional positions), and the Dealer SMARTS (for car sales) are examples of tools that can have success patterns built in order to do better hiring.  The Healthy Workforce and the Nurse Retention Tool are examples of tools that have industry benchmarks / success patterns built for them.  The key is that with the patterns built, you have the greatest likelihood of finding great people who can and will perform the way that other successful people have.

4.  Use Situational and Group Interviewing - A situational interview is one that is conducted for the purposes of seeing how an individual will respond when facing situations that actually exist within your organization.  It might be explaining a scenario where a client is upset and asking... "In this situation, what would be your response?"  Or, "In this situation, what would you do to make the outcomes positive?"  You are looking for behavioral patterns that they would exhibit.  The easiest way to use realistic situations would be to ask your staff to write down difficult or challenging situations that they have dealt with, leaving out names and other identifying information.  The group aspect would be that you involve the potential future peers of the candidate to ask questions and give their take on the candidate.  This accomplishes a couple of things.  First, it gives the team a voice in who they work side by side with.  Second, it gives the team buy-in with who gets hired, unless of course you as the leader do not listen to them.  Not listening as the leader always proves destructive to morale and counterproductive to performance.  It is ideal to use a rating sheet so that each person get to give input on the candidate rating them from 1 to 10 on each area that is important to the job.  You then tally and average the scores so that you have objective interview data to back up your psychometric evaluations.

5.  Use Background, Credit, Sex Offender, and Other Checks -  Background checks of various types will help to ensure that what the potential hire says about themselves is actually true.  The media has exposed time and time again that people will lie to get a job.  Obviously, not everyone is telling a lie when they interview and/or fill out an application.  However, Harvard Business indicated in a study of ethics in job applicants, that as much as 80% of resume's have information that has been stretched or is a complete lie.  Background checks are important because you need to be sure that any potential employee will be an asset, not a liability for your organization.  One example of this would be an employee that was hired to work in a restaurant that was across the street from a junior high school.  This assistant manager had been convicted of statutory rape and the court had ordered that he was not to be within 200 yards of any school.  He was across the street.  After being hired, he admitted (30 days later) that he lied about not being convicted of a crime on the application and resigned.  Had a background check been done, that conviction would have surfaced.  By doing these checks, you as a business, are taking the necessary precautions to keep your customers and employees as safe as possible.

6.  Make A Conditional Offer of Employment - The conditional offer of employment is a one-page bullet point paper that indicates the expectations of the potential hire by the organization.  It is different than what is spelled out in the employee handbook.  This offer is given to the candidate with the following stipulations...  They are to take the offer with them and if they are willing and able to commit to all, not some, of the statements on the sheet, then they will be hired.  They can bring it back up to 48 hours later, but they cannot sign it right then.  It would include things like...  A commitment to be to work on time every time, a commitment to work with a positive attitude, a commitment to complete work when assigned and on time and then seek more ways to help the company succeed.  It can be anything that is really important to the leadership of the company, or that particular department.  This sheet gives you some accountability for the way the employee will work.  It also tends to set the strong expectations right up front.  Without expectations, they are guaranteed to let you down.  Don't skip this part.  It is very important!

To learn more about the tools, training and processes that will help you identify and retain top performers and make better hiring decisions as well as bolster your bottom line, visit us at www.murfsystems.com, or email me directly at jody@murfsytems.com.

Thursday, June 18, 2009

Increasing Sales

Part 2 of 8: MuRF Systems’ solution-centric approach to organizational success.

 

Increasing Sales

 

With the current climate of today’s economy, industries across the board have mounted a significant campaign toward increasing their sales efforts. The most intriguing aspect of this effort is that the majority of businesses still follow the traditional approach to selling, which has little effect on younger generations. Perhaps the most telling example of this has been the auto industry. If you were one of the millions of people who purchased a car in the last couple of years, you likely heard your sales representative start the buying dialogue with, "Where do your payments need to be to get you into this puppy today?" In my own purchasing, I have told several sales people that the one statement that is sure to prevent a sale is the one mentioned above. So, why is this such an ineffective statement? Younger generations do not want to be sold! Gen-Xers and Millenials are much more informed about what products cost, how much markup is in them and the average purchase price. They want someone to facilitate their buying experience; they do not want to be sold. This means that a more consultative approach much be employed.

 

After nearly 30 years in martial arts, I modeled our Sales Judo course after the governing principles behind Judo and Karate. Participants in the course learn to use the buyer’s own energy and desire to help them make the best purchase. This ultimately results in a buying experience rather than a selling experience. The goal is never to "push" a product or service; doing so only cheapens the experience and agitates the buyer. Socrates believed that all information already exists within us; we need only to unlock it. We unlock it by asking great questions and having genuine concern for the buyer’s interests. This is the foundation for creating a positive sales experience for both buyer and seller.

 

While there are many other elements that factor significantly into the sales outcome, let’s look at three of the most important ones:

  1. Organizational Culture
  2. Who is Doing the Selling
  3. Investing in People

Organizational Culture: Culture can be mapped in an organization by understanding the existing perceptions of the team at all levels. People choose not to do business with a particular organization because of a negative experience they’ve had with a company representative; most often someone who is outside of the sales process. If the culture in the organization views its employees as liabilities rather than assets, the employees will tend to be actively disengaged. This results in disinterest toward company success, because the company is disinterested toward employee success. Decisions in this type of culture will center on policies, processes and profits—not people. The real irony is that when people are the focus, profits are the result. When profit is the only focus, goals are achieved sporadically and success is never sustained. Our Employee Climate Survey can be used on an annual basis to provide decision-makers with the most accurate information on corporate culture and offer a side-by-side comparison between perception and reality.

Who is doing the selling: Studies reveal that nearly three-fourths of those people currently in a sales career should not be. They do not have the psychological makeup to be successful in that endeavor. Even with a great presentation that is scripted and memorized they still tend to struggle. Ever notice how some people seem to be “born to sell?” What is it that makes them so successful? Ever notice how some people have incredible success in one industry or with one product, but cannot convert that success to another industry, product or service? While there is no sales gene found within our DNA, there are distinct psychological characteristics that impact the success or difficulty a person may have in a sales career. Imagine knowing the likelihood of your sales teams’ success. Imagine being able to dial in trait-specific training to bolster your sales teams’ productivity. Our SMARTS (Sales Marketing And Representative Traits Survey) tool can provide sales managers with an internal look at the makeup of their sales team and take the guessing out of sales management.

Investing in People: Jeffrey Fox once said, “You only have two choices with employees, you can either groom ‘em or broom ‘em.” He is right. People succeed only in those things in which they have been taught to succeed. Training is not just a good idea or corporate buzz word, it is an irrefutable need! Teaching your people the right way to interact, communicate, and consult will mean the difference between your compounded success and your continued frustration. Consider Tiger Woods. Holding more than 25 PGA records, he is still a man bent on the pursuit of excellence. He continues to this day to be coached and trained in a skill for which he is already truly gifted. If he were to ever cease investing in his skills, he would cease to be the success that he is today. Those who succeed at the top level never stop investing in their success, their skills, and their future. The lesson we take from watching elite performers is that they understand that training is the key to their success. Our selling skills assessment was developed as an evaluation tool that focuses on the behaviors of a sales person and helps them to be an elite performer. By evaluating behavioral patterns, a clear picture of the key areas of improvement can be developed. This opens up the training dialogue and creates coaching opportunities to position them for success.

To learn more about the tools, training and processes that will boost your sales and bolster your bottom line, visit us at www.murfsystems.com, or email me directly at jody@murfsytems.com.

Tuesday, June 9, 2009

Performance Feedback



Part 1 of 8: MuRF Systems’ solution-centric approach to organizational success.

 

Performance Feedback

 

When tackling the performance feedback challenges faced by businesses today, there are three critical areas that must be measured and evaluated:

  1. Organizational Climate
  2. Leadership Perception
  3. Work Performance

Organizational Climate: Perception equals reality. In my martial arts training, I remember the first time I tried to break a board with my fist. I was unsuccessful on my first try; I had difficulty perceiving my breaking through the board. It wasn’t until I was able to get a clear mental picture of the other side of the board—three tries later—that I succeeded.

 

In order to get a clear picture of how your organization is doing overall, you must get an overall picture of your employees’ perceptions. You first measure the areas that most influence your employees’ opinions on the overall effectiveness of your organization. These areas include employee engagement and overall culture. Cultures, communication, management values, co-worker values, retention factors, customer perceptions, are all factors that can impact the level of engagement an employee experiences. Once an understanding of the perception can be obtained, a comprehensive training program can be developed. Additionally, it serves to focus corporate communications so as to help everyone get on the same page. Once the big picture is defined—reality equaling perception—you begin a cascade approach to organizational development, which fosters organic momentum-building, which in turn leads to sustained growth and success.

 

Leadership Perception: A good friend of mine recalled his working for a small company whose owner was the antithesis of good leadership. With a lackadaisical and haphazard approach toward business and personnel development, my friend’s boss created an atmosphere for mediocrity, but was ignorant to his effect on the company.

 

Once you have a clear picture of the overall organization, you must then concentrate on improving the leadership within the organization. Management is about the paper and the processes; leadership is about the people. Leaders lead people—not policies and procedures. If a leader is unaware of their ability to influence people, there is a high likelihood they will not be an effective leader. A multi-rater evaluation of leadership behaviors is an excellent way to develop a picture of the leadership capabilities of your team. This type of evaluation creates a comprehensive 360-degree view of the individual. Such an evaluation can help to determine whether the challenges revealed on an organizational survey are related to a leader or if there are other issues affecting the perceptions. The feedback gathered from a 360-degree evaluation is paramount in creating individual development plans, performance objectives, and necessary change strategies for increased effectiveness as a leader. Additionally, the information can be used to develop succession planning objectives.

 

Work Performance: I remember hearing from a career-minded young lady one time that her supervisor called her into his office and informed her that her annual performance review was coming due. He then handed her a piece of paper and told her to write out her own evaluation. While such a situation might seem to be a blessing to less-than-stellar workers, those who are truly focused on turning out peak performance want and anticipate honest, candid and relevant feedback.

 

Rounding out the trifecta of organizational success is a consistent and objective annual performance review system.  Realizing that many employees have had frustrating experiences with performance reviews, it is important to create a feedback system that provides genuine and concise feedback—not only on an annual basis—but ongoing as well. If feedback is only provided once each year, employees who are notified that they are in need of improvement must make sweeping, global changes that are not only more difficult to sustain, but whose outcome will not be evaluated for another year. Instead, providing periodic, timely feedback allows an employee to make small and near-instant changes that are event-based and focused. This helps tie behavior to the event and not the person, thereby creating a much more positive experience for both evaluator and employee. An objective feedback system allows evaluators to provide honest feedback while accurately identifying top, average and poor performance. With an honest and objective feedback system in place, managers can implement targeted training programs to develop their people and maximize the organization’s investment.

 

Consistent evaluation and development in the three areas mentioned above will help you:

·  Develop a clear and honest picture of the performance levels within your organization

·  Develop a plan for consistent performance improvement individually and organizationally

·  Measure and maximize the ROI of personnel development

To learn more about the tools, training and processes establishing or modifying your performance feedback system, visit us at www.murfsystems.com, or email me directly at jody@murfsytems.com.