acknowledgement | The Barefoot Spirit

7 Steps to Engage Your People (And Get the Results You are Looking For)

Michael Houlihan & Bonnie Harvey — Thu, 14 Jun 2018 17:00:53 +0000

When we sold Barefoot Wine, we received the Wine Industry’s coveted Top Brand award for multiple years, sold 600,000 cases per year in 25,000 stores, were growing in all 50 states and 28 foreign countries, had no turnover for 10 years, and did it all with just 40 employees. We got tons of awards for quality, growth, and innovation.

But it wasn’t because we were so clever, in fact we made most of the big mistakes! It was because our people were engaged and empowered to make a big difference. They came up with most of the clever solutions that got us through the tough times and over the seemingly insurmountable obstacles. They did more with less, improved our policies and procedures, and used innovation to disrupt a rather stuffy industry.

At the closing talk for the C-Suite conference in San Francisco this month, Michael shared 7 of the tools we used to build an outstanding team that was engaged, empowered, and committed to the success of our business. Here is a brief summery from the top:

1. Hire Good People, Build Great People.

Hire for hustle, integrity, and enthusiasm. Look for extrapolation learners. Test their comprehension. Be prepared to redesign the job to fit the talents of each employee. On the last interview, you do all the talking. Explain the business process and why their job is essential. Then ask for a summary by 5 pm the next day.

2. Overkill on Orientation.

When the cement is wet, you can move it with a trowel. But when it gets hard, you’ll need a jackhammer! Don’t let them develop and harbor early misconceptions about how the business works, where the money comes from, and how the customer must be serviced to get the funds that go in their paychecks.

3. The Money Map

Show them a “Money Map”. Start with the community from which the initial customers emulate. Show the transactions that starts the money moving as those customers purchase goods and services that effect your business. Show all the twists and turns that the money goes through on the way to their paychecks.

4. The Two-Division Company

Give them a second graphic that shows how your company is organized with the customer on top! Then, right under that, the only people they talk to daily, your sales and customer service people (The Sales Division). Then right under that, everybody else in the company, regardless of specialty (The Sales Support Division).

5. Know the Need

Contrary to the popular Need-to-Know basis that most companies use to keep their people in the dark, practice Know-the-Need to demonstrate respect for their intelligence and commitment to your company’s success. Share your sales and marketing challenges and ask them for help. You’ll be surprised at the results!

6. Public Acknowledgement

Communicate their accomplishment in writing. Copy the entire staff. Get more of what you are praising for. Get them the respect of other staff. Send a “message” that everyone can get the same kind of top-level acknowledgment when they perform as well as the one being singled out for admiration.

7. Staff Wide Quarterly Bonus

Reward on a quarterly basis. A year is too long (They’ll forget, sand bag, or give up). A month is too impractical (Months are more subject to anomaly and it’s difficult to get the numbers together that fast). Reward everyone to build team spirit. Make it based on sales, growth, and profitability. We used a variable 401K quarterly match.

Want more details or additional suggestions? Check out our short book on the subject, aptly named, The Entrepreneurial Culture, 23 ways to Engage and Empower Your People. It worked for us. it can work for you. You may just hear them say, “I love working here!”

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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Acknowledgement, Confirmation, and Status Reporting Demonstrate Responsibility

Michael Houlihan & Bonnie Harvey — Thu, 07 Jun 2018 17:00:16 +0000

A Classic Case of a Lack of Acknowledgement & Confirmation

Our friend recently graduated with an advanced degree in Nursing. To celebrate, we invited her and her friends over for a party. A week before the party, we went to our friendly neighborhood grocery store where a young man does barbecuing out in front on the weekends. We thought, “Why not keep the money in the neighborhood and support a local merchant?”

So, we went to the barbecue guy and asked him if he was going to be barbecuing the following weekend. He said he would start at 11 AM on the day of our event. So, we ordered several chickens and several sides of ribs, enough for everyone. It was a sizable order. We told him we would pick the order up at 2 o’clock on the day of the event. He agreed and took our name and number.

On the day of the event, we showed up at noon to add to the order as the RSVPs had increased. But to our surprise, no barbecue guy! We went inside and asked the store manager what was up. The store manager said the barbecue guy wasn’t going to be there that day and there would be no barbecue!

Yikes! Now we were panicked! We had all these folks coming over and no barbecue. We quickly got on the phone and found another barbecue guy who was barbecuing in the next town. Luckily, they could fill the order by 2 o’clock. We had to drive a one-hour round-trip to pick up the barbecue. Problem solved.

Then at 3 o’clock, we get a phone call from our original barbecue guy. He wants to know when we’re going to pick up the order. We told him that the store where he worked said he wouldn’t be there that day and so we had to go elsewhere for the barbecue. We felt sorry for the guy but felt we had no choice under the circumstances taking the action we took.

A Growing Problem

We see this is a problem on the increase everywhere. Many folks don’t think to advise those who are depending upon them about the status of their requests. The local barbecue guy expected his customer to blindly trust that he would perform even though he knew that announcements had been made indicating that he could not. He did not feel obligated to call to reassure us. Perhaps he will next time!

To put this problem another way, some may think avoiding acknowledgement, confirmation and proactive status reports is a type of protection. They may think their silence insulates them from criticism. That way, if they perform, great. If they don’t perform, it’s up to the person who’s made the request to get back and ask where they are. That way they don’t really own the job.

The problem with this line of thinking is that most people who have been disappointed in the past assume their request will be dropped if they don’t get acknowledgement, confirmation, and timely updates. They have to! They have taken responsibility for the action whether or not the person they asked performs. That’s because they do own the job! And they will take alternative actions to meet the deadlines.

We’ve seen this minimalist approach in other forms like, not acknowledging a request, dropping an assignment until it’s re-requested, getting the requested information but not reporting it. These are all forms of not owning the job.

Removing Anxiety thru Acknowledgement & Confirmation

The key to being dependable is not give anyone who depends on you apprehension. They shouldn’t have to ask themselves: “Are they going to do it? Are they going to do it on time? Can I rely on them? Are they going to drop it? Do I have to go around them? Why haven’t I heard from them? And why do I have to check up on them anyway?” Remove all these types of anxiety with acknowledgement, confirmation, and status updates. When it comes to a job that others depend on you for, just own it!

Who We Are

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

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5 Ways to Get Good Ideas Out of Your People

Michael Houlihan & Bonnie Harvey — Thu, 21 Sep 2017 17:00:54 +0000

Companies ask us, “How can we get the entrepreneurial spirit?” The real question should be, “How did we lose it?” When their founders started in that garage or basement so long ago, there was no question in their minds, if they didn’t make sales, they’d go out of business. But something changed along the way. They lost the entrepreneurial spirit!

What happened? Did they get so carried away with the specialization of human resources, they forgot what their founders knew – that sales are essential to survival? Did the various siloed specialties, like engineering, marketing, R&D, and admin, actually begin to believe that they were more essential than sales?

The specialties began to organize, have their own groups, their own conferences, their own publications. And as they became isolated and insulated from sales, they began to take sales for granted. “Sales can’t happen without my skill set,” became the refrain. Or worse, “Sales? That’s not my job!”

A “good idea” was thought to be all about improving some part of the production process. But did the folks who executed and improved those processes know why their process was essential to sales? Probably not. Management might say “They didn’t need to know.” But knowing why you are performing a process is the backbone of the entrepreneurial spirit. Sales is the reason!

We were honored to be the Keynote Speakers for the 75^th Anniversary Summit for IdeasAmerica. These are the folks who brought you the suggestion box in the early 1940’s and have advocated for employee-authored good ideas ever since. We decided that our message should encourage them to explore the cultural conditions that allow for, and promote, the engagement of employees.

Here’s our short list:

Overkill on Orientation. It’s not just where the bathroom, coffee, forms, and go-to person are. It’s how the money that’s in paychecks, benefits, and bonuses gets to your employees. Show them a graphic “money map” that identifies everyone who touches your company’s products or services, and what each one wants from your company. They will see more clearly how they fit in.
Pay for Performance. At least some part of your employees’ compensation must be tied to sales, growth, and profits. When you put all your people on the same bonus plan, you create the comradery of a well-practiced team with the same goal. The most effective bonuses are given quarterly – long enough to get the numbers and short enough to stay attainable.
Know the Need. Some companies are convinced that their people don’t need to know about sales, marketing, or competitive challenges. But when your people get the big picture, see how they fit in, and realize that you view them as a valuable problem-solving asset, they become more creative, and more loyal.
Grant Permission. Mistakes will happen. Make them permissible, as long as they are followed by immediate improvements to the company’s processes and procedures so they will be less likely to reoccur. Grant permission to brainstorm and entertain “crazy” ideas to solve problems. They often lead to a bright idea and a practical solution.
Give Acknowledgement. Make acknowledgement both public and written, and copy the whole team. Everyone will know more about who is being praised and have more respect for that person. They will likewise anticipate public praise when they solve problems. Some studies show that being appreciated is even more important than salary.

We salute IdeasAmerica and acknowledge the fine work they continue to do for both American and international companies. With a bit of encouragement, your people will provide a plethora of good ideas!

Who We Are

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

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Are You Giving Your People Permission to be Brilliant?

Michael Houlihan & Bonnie Harvey — Thu, 21 Apr 2016 17:00:31 +0000

These days there are tons of companies that say they want their people to be more engaged, but are they giving them permission to do so? Yes, permission! It’s subtle, but powerful.

Permission is a powerful idea in determining company culture. Are you giving your people permission to be creative, make decisions, solve problems, and take responsibility? Or, in the name of efficiency, structure, or compliance, are you preventing the very type of support you need?

Here are some ways to give your people permission:

Compensation. Some part of employees’ compensation should be based on sales, growth, and productivity. It will take some time to identify and agree upon metrics used to measure those key indicators, but get started now and tweak it every year until it’s right. If you offer a bonus, make it quarterly. A year is too long for them to remember, or if after a poor first half of the year, they may just give up. Quarterly is short enough to remember, and if they have a bad quarter, well, there’s a new opportunity next quarter.

Knowledge. Your staff can’t help you if you don’t tell them what you need. Many businesses believe in the “need-to-know” policy which keeps employees in the dark. We believe in the “know-the-need” policy which includes them in the company’s challenges, opportunities and triumphs. They already have your corporate knowledge and a stake in solving your problems, especially if they share in your success. We suggest quarterly meetings with sales and sales support staff (i.e., everybody not in sales) to brainstorm solutions. They will surprise you with their great ideas!

Access. Clear the channels of communication. Don’t force interdepartmental messages go through a complex pyramid structure, and back to the department right next door. Don’t lock down creativity by allowing compliance to use fear to demand that everything goes through them. Their extensive turnaround time itself can discourage many good ideas from ever surfacing. Give your people ways to access top management directly to prevent middle managers from stopping good ideas.

Acknowledgement. Thank each of your people publically for all the good ideas they’ve produced to improve your company. This validation will make them want to do more. Their teammates will see your acknowledgement, and want some for themselves. We recommend once a year, on their anniversary, send the entire staff a memo that summarizes what that staff member did during the past year that improved the company, resulting in bigger bonuses for the whole staff. This will give everyone more respect for their teammate’s contribution and improve overall teamwork.

Mistakes. Give your people permission to experiment and make mistakes – as long as they make mistakes in a productive manner. This means that they come to you with the mistake they made and a list of documents that need to be created, altered or improved, so the mistake is less likely to reoccur. Companies that frown on mistakes force their people to hide them and the opportunity to improve the company’s policies and procedures is lost. Encourage your people to aim not blame. Aim at what they can do to prevent a reoccurrence, and don’t disempower themselves by blaming others.

Your people are looking for the limits you will allow. Some are very obvious and necessary like dependability, production and civil behavior. Beyond that, show your “personal settings” by giving them the permissions we have discussed here. The message will soon become crystal clear and they will operate within those limits. Don’t let your structure and procedures deny your people the permission they need to help you!

Who We Are

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

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3 Essentials of Effective Leadership

Michael Houlihan & Bonnie Harvey — Thu, 31 Mar 2016 17:00:31 +0000

Running a company, division or a team is a responsibility that goes way beyond being the executive. In many ways you are in a parental role. It’s not enough to lay out the path and make the big decisions. You must also nurture your people if you want them to perform at their best. After all, they are spending more time with you, in many cases, than they spend with their own families. They not only take direction from you, but they look to you as an authority figure. A word from you can make a big difference in their personal development as well as their skill set.

And isn’t that what you want – team members who are better this year than they were last year? So what exactly are those words from you that can make all the difference to them and your team’s productivity and your company culture? Just like the gas you put in your tank that gets you to your destination, here is the “G.A.S.” that keeps your team running:

Guidance. Make sure your team has clear and achievable weekly goals. Review them again on Wednesday to make mid-course corrections. Clearly describe to every member of the team what they have to do, and by when, to achieve those goals. Be sure to explain why what they are being asked to do is important to the big picture, the health of the company, the security of their jobs, and ultimately their compensation, bonuses, commissions and benefits. In other words, tie it to sales! Get the deadlines on the calendar. Get involved in helping to remove roadblocks and barriers to communication. Make suggestions and offer help when needed. And then get out of their way!

Acknowledgement. This often overlooked essential is the building block of validation. And validation is what your people want when they are creative, take responsibility, and complete a job well done. We feel that acknowledgment is right up there with compensation when it comes to why they even work for you at all. A heartfelt “Thank You” is always appreciated, but don’t stop there. Do it in writing, be specific about what they did and how it moved the project forward, saved money or made money, and copy the entire team. Public acknowledgement creates more appreciation among team members for their team mates, encourages more of the productive behavior you want, and creates loyalty and tenure.

Support. This is not hand holding. This is not micromanaging. This is being there to answer questions, and to provide the right tools, applications, and services. This is conducting yourself in a reasonable and understanding manner during frustrating times. This is taking it down a notch when things get crazy. And this is standing up for your people when they need it. It’s also interceding on their behalf when they run into the type of contracted or other ‘outside’ folks who won’t work with a delegated person and want you personally on the line. Take those types aside in advance and spend the time to convince them to work with your delegate. Then help your own people develop the confidence and people skills to get the respect they need to get things done on their own.

So when it comes to Leadership, don’t run out of G.A.S.!

Who We Are

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

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