The Donald Cooper Corporation Newsletter
Volume 3, Issue 9 - September 2004
 Greetings !
You could be the winner of one of our Video Seminars: Hidden somewhere in this Newsletter is the name of one of our subscribers. If you find your own name and contact us before October 15th, you'll receive one of our outstanding Video Seminars...for FREE. Happy searching!!
1. What should you be "losing" in your business?
(time to read this article is about 75 seconds)
For a printable version of this article, click here.
I've just completed a speaking tour for a transportation company that leads its industry in customer satisfaction, management smarts...and profitability. But it wasn't always that way.
Several years ago, they were doing $95 million in sales and losing $12 million. That's not an easy thing to do. You have to work overtime to lose $12 million on sales of $95!
The company was sold and sharp new management put in place. One year later, their sales were down to $85 million and they broke even. That may not sound like much of an accomplishment, but it was a $12 million turnaround on the bottom line.
How did they do it? How did they go from "bleeder" to "leader"? First, they developed clarity about who they were and what they could do well and profitability. Then they analyzed every customer for sales volume, profitability and potential. What they found was that a whole bunch of their customers were hugely unprofitable...and they politely "fired" them. Over time, they replaced those unprofitable customers with profitable, growing accounts.
At the same time, they analyzed which routes and services were profitable, and which were not. They immediately dropped anything that was losing money that couldn't be turned around. Next, they consolidated and streamlined their terminals across the country to increase efficiency, reduce overhead and improve customer service.
Finally, they hired the best people in the industry at every level of the organization and invited poor performers to "move on". In short, they had the wisdom and courage to "lose" the customers, the products and services, the physical facilities and the people who were not making them money. They did all of that with dignity and class...but they did it! And now they're four times the size with a bottom line to be proud of.
Here are three questions for you to consider in your business...
1. Do you have clarity about who you are and what you're really good at?
2. What business are you doing, right now, that's losing you money?
3. What products, services, physical facilities, policies, processes or staff are hurting your bottom line?
So, what do you need to "lose" in your business to be more focused, more effective and more profitable...and what specific action will you take to make it happen?
2. Are your front-line people driving customers away...and whose fault is it?
(time to read this article is about 90 seconds)
For a printable version of this article, click here.
My brother John recently went into the Canadian Tire Store in Orillia, Ontario to buy a tin of teak oil for the trim on his ski-boat. For those of you who don't reside in Canada, Canadian Tire is Canada's largest retailer of automotive aftermarket parts and a major player in hardware, power tools, paint and sporting goods. In the past few years they've made great strides in their store design, merchandise presentation and staff training...but apparently they still have a ways to go.
John tracked down a young man to help him in his search for teak oil and after searching five isles unsuccessfully, this Canadian Tire employee turned to my brother in great frustration and said, "I have no idea where it is! Why don't you just go to Home Depot like everyone else?" This guy is being paid to send customers away...and it's not his fault!
So, here are five "Reality Checks" for your business, or your department...
Reality Check # 1: Are your people effectively screened for aptitude, ability, attitude and values...or are they chosen at random? If you're struggling with this one you're making a huge and costly mistake. You might want to contact Jack Leitch at Performance Resource Group in Brampton, Ontario (email jack@employeepower.org). Jack is a senior associate with one of the world's leading personnel assessment organizations with offices around the world. Wherever you're located, Jack can put you in touch with leading experts on how to select staff with the aptitude, ability, attitude and values that you need.
Reality Check # 2: Are your front-line people properly trained on an ongoing basis? Remember, "training" is a process, not an event. Are they given information, processes, policies and empowerment to do their job effectively with as little stress as possible? I've seen surveys that show that 70% of employees believe that they've not been properly trained to do the job that they've been given. Is that happening in your business?
Reality Check # 3: Do you have clear and specific sales, service or other performance objectives for your front-line staff, along with clear standards of behavior and appearance? In other words, do these people know exactly what's expected of them? Were they involved in setting those objectives and standards? Do they embrace them...and if not, why not?
Do you share with them how they're doing, individually and as a team, compared to where they need to be to deliver their revenue, service and other commitments?
Reality Check # 4: Do you acknowledge, thank and reward success? And, are you dealing with non-performance by inviting poor performers to "move on"?
Reality Check # 5: Have you created a business environment in which frustrated employees feel comfortable coming to you with their concerns and ideas, or are they taking their frustration out on your customers and driving them away? If you're creating stress for your employees, you can be sure that they're passing some of that stress on down to your customers...and you can be sure that this is driving customers away.
So often, when I run into crappy service, I ask the front-line people something like, "Why do you do that?" and the response is usually the same, "We know it's wrong and we keep telling our bosses, but they won't listen!" They always say this with great sadness. In this kind of environment, the good people leave and the bad ones stay and take "I don't give a damn pills"...and hope that you won't notice.
Using the five "Reality checks" above to jump-start your thinking, specifically what will you do to create a powerful front-line team that is building value-added relationships with your customers rather than driving them away?
3. Finally, the "straight goods" on what a business Vision really is, why you really need one...and how to create it!
(time to read this section is about 35 seconds)
There's huge confusion about both Vision and Mission in business today. Just about nobody "gets it". I've worked with small business entrepreneurs who don't have time to get it and CEO's of major corporations who have spent years and a hundred thousand dollars on consultants and "Strategic Retreats" only to come up with a Vision that isn't worth the paper it's written on...but they put it up in the lobby anyway. It usually says...
|
"We love our customers and we honour the diversity of our staff.
God is a nice person, the planet is a really good place to hang around
...and we'll work hard and have fun!" |
You've seen hundreds of these (maybe one is in your own lobby). They're meaningless! You may as well put a picture of somebody's grandmother up on the wall.
I've just completed a three-year intensive study on the whole messy business of business Visions and Missions...and I've finally got it figured out for you...and the good news is, it ain't that complicated.
The other good news is that it’s FREE, at least for the time being. Just click here to download our step-by-step guide to creating a clear and compelling Vision & Mission for your business.
If you need my help in facilitating this breakthrough process of creating a clear and compelling Vision Statement for your business, that's not free...but it will be a lot less expensive than not knowing where you're going, or exactly how you're going to get there.
So, if you want to be a profitable market leader in 3 to 5 years or, if you feel that your business somehow lacks a clear and compelling purpose, download this powerful new "Vision stuff" now. Then actually read it and if you want help, email me personally at donald@donaldcooper.com and we'll talk.
4. Opportunities to tie in with Donald’s overseas speaking schedule:
(time to read this section is about 10 seconds)
If your company has overseas divisions in Australia, New Zealand, Singapore, the UK or continental Europe, or if you have business or Association contacts there, here’s an excellent opportunity to be their “hero” by letting them know that I shall be in their “neighbourhood” in 2005.
I shall be speaking in the Far East, Australia and New Zealand from about March 20 to April 10th and in the UK and Germany from June 10th to the 18th. We’re keen to add some additional engagements to both of those schedules, which makes it more cost-friendly for everyone.
If you have any thoughts about “possibilities” here, just email the Sharen lady at sharen@donaldcooper.com or call her at 1-416-252-3704.
5. Bits & Pieces:
(time to read this section is about 40 seconds)
ITEM # 1: In the "Who's winning and who's loosing" department...
The USA trade deficit for the three month period ending June 30th was a record $166 billion. What this means, in simple terms, is that America paid out $166 billion more than it took in over those three months. How long do you think that could last at your house?
Every country that trades with the USA (including Canada) wants to keep their currency low compared to the US dollar so that their goods are cheap for Americans to buy and so that American products and services are too expensive to be competitive in their country.
America is fighting to keep jobs at home but between lower wages in third world countries and weaker currencies in competing developed countries, the deck is stacked against them and with a roughly $50 billion trade deficit every month, it can't continue.
The choices for the USA are simple. Return to the days of protective tariffs, or lower the value of the US dollar. Whichever way it goes, if your company does business with America or overseas, this mess is going to affect you.
ITEM # 2: Is this the kind of response you get to your promotions?
For years businesses have struggled to accurately measure the effectiveness of their advertising and promotions. And now, finally, a breakthrough. Just measure the dead and injured!
In Jidda, Saudi Arabia, last month, an estimated 8000 frenzied shoppers, drawn by a discount coupon, rushed into an Ikea store killing 3 people and injuring 17. I bet you don't get that kind of response!
ITEM # 3: In the "Wouldn't you love to know what they know" department...
No business in the world knows more precisely how many customers they'll have in any 20 minute period than an airline. Their customers buy tickets days or weeks ahead for a specific flight, departing at a specific time. Then, they probably know, on average, how many minutes it takes to check in each customer. From this information a six year old could calculate how many staff they need, at any given time, to deliver "non-pissing-off" service.
So why is it that most airlines just don't get it? If you have the answer, please write me. There's no prize or anything but I will report the best three explanations in next month's Newsletter.
6. Here's one word that will transform your annual planning process:
(time to read this article is about 20 seconds)
For a printable version of this article, click here.
This is the time of year when many businesses start working on their budgets and plans for the following year. Here's a simple tip that can fundamentally change how your team performs.
Stop using terms like "budgets", "targets", "forecasts" or "projections" and start calling these things what they ought to be. Start calling them "commitments".
First of all, calling them "commitments" will make your team think about them more seriously and they're less likely to promise something that they can't deliver. Secondly, if they miss a "projection" or a "target", how big a deal is that? But, if they miss a "commitment", that's a very serious matter...just as it should be.
Of course, whatever you call them, you must follow up, measure performance, reward success and deal firmly and fairly and non-performance.
Try creating "commitments" in your business, or department, this year and see what a huge difference it makes in your service delivery and your bottom line!
| The "Hidden Name" of one of our subscribers, who will receive one of our outstanding Video Seminars absolutely FREE, is Barbara Lisosky of Oasis Pool and Spa Center in New York. Barbara, please email Sharen Skene or call 1-(416) 252-3704 by October 15th to choose your FREE Donald Cooper Video Seminar. |
7. Chuckles & Hugs!
(time to read this section is about one minute)
We haven't had a "Chuckles & Hugs" section for a while so my friend George Athans (former two-time World Water-ski Champion) has bailed me out with this highly amusing submission.
Top 10 list of things NOT to do on your next job interview!
When a group of HR Managers was asked for their best stories of unusual behavior by job applicants, the following were some of the wackier responses...
1. During the interview the candidate pointed to a picture on my desk and asked who the lovely babe was. When I replied that it was my wife, he asked if she was home right now and wanted my home phone number. I called security.
2. Ten minutes into the interview an alarm clock went off in the candidate's purse. She took it out, shut it off, apologized and said that she had to leave for her next interview.
3. One candidate stated up front that he really didn't want the job, but the unemployment office needed proof that he was looking for one.
4. A balding candidate abruptly excused himself in the middle of the interview and returned two minutes later, wearing a hairpiece. I pretended not to notice.
5. A young lady wore a Walkman throughout the interview, claiming that she could listen to the music and to me at the same time.
6. One candidate asked to see my resume. He said he wanted to know if I was qualified to judge him.
7. One young lady pulled out a Polaroid camera, snapped a picture of me and explained that she collects photos of everyone who interviews her.
8. A candidate being interviewed for a management position said that, if he was hired, he would show his loyalty to the company by having the corporate logo tattooed on his forearm.
9. When I made an offer to a candidate, he asked me to put on my suit jacket to make sure that the offer was formal.
And my personal favorite...
10. Ten minutes into an interview a candidate took out his cell phone and called his therapist for advice on how to answer my question.
8. That's all for this month!
"Thanks" for all of your great feedback and suggestions! We especially love to hear of your successes using our insights.
Don't forget to visit the Free Articles section on our website for lots more valuable info on how to sell more, manage smarter and make more money in your business.
Also, let us know what you'd like to hear more about...or less about. And, do send us your stories and examples of great, horrible or just plain bizarre business practices than you find in your travels.
Finally, if you know of others, anywhere in the world, who will find value in this E-Newsletter, we'll appreciate your sending this along to them and inviting them to sign up at www.donaldcooper.com.
Kindest regards,
Donald Cooper, MBA, HoF
Certified Speaking Professional
Member, Canadian Speaking Hall of Fame
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