Achievements | The Barefoot Spirit

Are You Paying for Attendance or for Production?

Michael Houlihan & Bonnie Harvey — Thu, 14 Jul 2016 17:00:01 +0000

When you are a startup entrepreneur, you must hire those who are production driven and not attendance driven. Brian Tracy says, “Fully 80% of all production problems are caused by compensation plans!” In other words, you get what you pay for. If you pay by the hour, you get hours. If you pay for production, you get production. We think the best hires are other entrepreneurs.

When you pay by the hour or based on tenure, you’ll hear, “I haven’t had a raise in a year,” like the amount of time that has passed earns them the raise. You will also hear, “I’ve got enough to keep me busy,” as if keeping them busy is a goal of the company. And then there’s the classic, “I was there. Pay me,” as if their mere attendance is all you needed.

This is not to say that hourly employees and outsourced services ipso facto aren’t good producers. Many are. Especially the ones who know their job is on the line, and the ones who clearly understand their goals and deadlines. But there is far less lurking and sandbagging among folks who get paid for deliverables. They simply can’t afford it any other way!

As an entrepreneur, there is no question in your mind about the critical nature of sales and customer service, but what if your team gets paid whether or not you make sales, and whether or not your customer is happy? Do they have the same incentives you have? Probably not.

We like to say, “If you are paying your people right, the non-producers can’t afford to stay, and the producers can’t afford to leave!” Just take a moment to think about that…

When you pay your people right, you increase production, engagement, urgency, sales and the excellent customer experience you are looking for. Here are some ideas to get you started:

Clearly Define the Deliverables. Plainly state exactly the expectations you have of each team member. It is likely different for each player, so consider this carefully. One approach to get going is to ask each person to make a list of what they do and the relevant deadlines. This gives them ownership and forces them to think in terms of outcome. Then refine this list to better suit your company goals.
Create a Bonus Structure. It’s easy to pay the salespeople on production – their commission is based on it! But what about the receptionist, the assistant, and the bookkeeper? What about the marketing, legal, production and administrative people, and other folks who are paid by the hour industry wide? For them we created a quarterly bonus. The bonus was paid as a corporate contribution to their 401K tax-free retirement plan, matching at 50%, 100%, or 150%, and was based on sales, growth, and profitability.
Take a Smaller Slice of a Larger Pie. Be prepared to share the wealth in various ways appropriate to each individual’s accomplishments. One way is to bonus for a specific accomplishment that clearly adds to profits, like a new client, a big savings in overhead, achieving a stretch goal, or meeting a difficult deadline. Once your team sees the direct relationship between their production and their compensation, they will become more interested and engaged in the process of making your business more successful. Plus, now you have more “found money” to share with them.

Congratulate each one publically for their achievements, especially those who impact everybody’s bonuses. You’ll see more of what you acknowledge, create a stronger and more cohesive team, and get the production you paid for!

Who We Are

Michael Houlihan and Bonnie Harvey co-authored the New York Times bestselling business book, The Barefoot Spirit: How Hardship, Hustle, and Heart Built America’s #1 Wine Brand. The book has been selected as recommended reading in the CEO Library for CEO Forum, the C-Suite Book Club, and numerous university classes on business and entrepreneurship. It chronicles their humble beginnings from the laundry room of a rented Sonoma County farmhouse to the board room of E&J Gallo, who ultimately acquired their brand and engaged them as brand consultants. Barefoot is now the world’s largest wine brand.

Beginning with virtually no money and no wine industry experience, they employed innovative ideas to overcome obstacles, create new markets and forge strategic alliances. They pioneered Worthy Cause Marketing and performance-based compensation. They built an internationally bestselling brand and received their industry’s “Hot Brand” award for several consecutive years.

They offer their Guiding Principles for Success (GPS) to help entrepreneurs become successful. Their book, The Entrepreneurial Culture: 23 Ways To Engage and Empower Your People, helps corporations maximize the value of their human resources.

Currently they travel the world leading workshops, trainings, & keynoting at business schools, corporations, conferences. They are regular media guests and contributors to international publications and professional journals. They are C-Suite Network Advisors & Contributing Editors. Visit their popular brand building site at www.consumerbrandbuilders.com.

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

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9 Steps to Achieving Your Goals for the New Year

Michael Houlihan & Bonnie Harvey — Sat, 07 Dec 2013 15:31:40 +0000

As the current year winds down and we look forward to the New Year, start thinking about your annual goals. Don’t wait until the New Year is upon us. These last few weeks of December are a great time to identify what you want to achieve during the next year. Writing goals seems like a daunting task, but we have discovered a fun and easy way to get started:

List Your Achievements. How have you progressed so far? How many goals have you achieved this year? Reviewing your achievements is always encouraging because you can see the value in setting goals.
Identify Your Incomplete Goals. What goals did you set for this year that are yet to be achieved? Are they still relevant? If so, they need more time, so those are a great place to start your goal list for next year.
Write Your Annual Goals. What are the big goals you want to achieve for the New Year, for your business, your career, your health, and your education? Add those to the list of this year‘s goals that need more time. Now you have a core goal list.
Study the Year Ahead. Take a good look at a calendar with holidays and events already printed on it. This is the landscape of the New Year. This is the layout you can’t change, the one you must work within.
Set Your Deadlines. Break down your annual goals into achievable milestones to be completed before each 3-day holiday weekend and post them on the calendar. Make a list of the milestones for that period and keep it handy throughout the period as a reminder to keep you on track.
Set the Lead Times. Calculate how long it takes to prepare for any event. Look to see if there are there overlaps. By working backwards from the events, you will see when you must begin preparations.
Post the Must-Attend Dates. Identify the dates that you absolutely must attend, whether it’s at work or for a social affair. Those are the dates you can’t be on vacation.
Identify the Holiday Periods. When does school begin and end? Vacation spots are less crowded and often less costly when students return to school. When are the three-day weekends? These are great for short getaways. When are the key selling seasons? Some business people must plan months ahead to assure all is in place for essential selling seasons, and can take a break only after this essential work is completed.
Book Your Vacation. Now that you understand the fixed landscape of the coming year, when would be the ideal time for you to take your vacations? Buy your tickets now! You’ll get a better deal and you will have some hard dates by which to accomplish your goals. The rest of your work will fall in “magically” around your vacations.

By working with your goals on an actual calendar, you will be more likely to achieve them. When you discover the existing dated landscape that you must work within, you are setting yourself up for success. You will see the practicalities of the New Year and use it to your advantage. Your personal time-off rewards will be visible and your milestones will be more realistic.

You’ll be surprised how much you can achieve when you can see the end of the tunnel whether it’s a booked vacation or a three-day weekend. Nobody wants to come back to unfinished business and you won’t either. Be practical about your goals, the calendar, and your much-deserved rewards. Book your vacation now!

Who We Are

To make inquiries for keynote speaking, trainings or consulting, please contact sales@thebarefootspirit.com.

The post 9 Steps to Achieving Your Goals for the New Year appeared first on The Barefoot Spirit.