Company culture | The Barefoot Spirit

Give Your People Permission to be Brilliant

Michael Houlihan & Bonnie Harvey — Wed, 19 Apr 2017 17:00:13 +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 profits. 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, and 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!

To read the complete article, please visit The Business Journals

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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Millennials Want a Positive Company Culture

Michael Houlihan & Bonnie Harvey — Thu, 14 May 2015 17:00:33 +0000

Seems like every week there’s a new report out on Millennials. The latest one from the management consulting firm Accenture is an eye opener. 60% of the 2015 grads in the survey said they would take a pay cut to work for a company that had a “positive social atmosphere.”

Sure, 70% of all those responding also said they were being subsidized by their parents, and perhaps that’s why they have the luxury of making such a choice. But we still find it interesting that what we call “positive company culture” is the deciding factor for so many young people today.

An analysis of the Census data by the Pew Research Center showed that Millennials now account for the largest share of the US work force. So, if you are an employer, you’d better take positive company culture seriously if you want to attract and keep the largest and fastest growing segment of potential employees.

So what does a positive company culture look like?

Fun. That’s right, just plain fun. Fun titles, fun events, and fun environment. The ability to laugh at yourself and not take yourself too seriously. Working in teams that are highly collaborative with clear goals and celebrations for accomplishing them. Colorful work spaces, with natural light, and playful graphics.

Respect. Staff is recognized for outstanding performance with public acknowledgement. New team members receive mentoring to help them achieve their goals. Staff is viewed as an asset, not as a cost. The company practices know-the-need instead of need-to-know so challenges are shared and everyone brainstorms solutions.

Philanthropy. A company that stands for more than the mercantile value of its goods and services. A company to be proud of, to tweet about, and to share its good deeds with a social network of friends. A company that is making a difference in the environment, society, health and education. A company that is committed to a better world, not just a better product. A company that matches employees’ charitable donations.

Flex-hours. A company that allows more time to live life outside of work. Deadline-based timetables rather than strict work schedules. Financial rewards for performance rather than attendance. Allowing for working at home as much as possible. Minimizing commute hours and maximizing remote production.

Family. Smaller companies over larger ones. Knowing the owners. Integrity and stability. A feeling of kinship. A tribe, a team, a support group that has your back and your best interests at heart. Basically, a friendly group you look forward to working with during the majority of your waking hours.

Success in business requires personnel management with a positive company culture, and this is essential if you intend to build a team of Millennials to power your company.

And what happens when their parents can’t subsidize them anymore? Think they’ll settle for less in the workplace – just to make a few more bucks? Soon enough your competition will woo them with higher salaries and a positive company culture. So now is the time to get in front of the curve and attract the folks you need to build your company and more importantly, keep them.

After all, shouldn’t work be fun? Isn’t that when we all do our best anyway? Isn’t that the fertile ground for the best solutions and disruptive ideas? And aren’t challenges and respect the basis of company loyalty? With the right people in the right environment your company will be more likely to hit its numbers and be able provide those increased salaries when mom and dad pull the plug.

Who We Are

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

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SCORE Webinar

Michael Houlihan & Bonnie Harvey — Fri, 10 Apr 2015 17:48:01 +0000

We recently hosted a webinar with SCORE “The Barefoot Spirit and Company Culture: Sales is King.” To view the taped version of the webinar, please visit SCORE.org and click on “Take this workshop”.

Who We Are

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

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Should Some Clients Be Fired?

Michael Houlihan & Bonnie Harvey — Sat, 13 Dec 2014 19:30:18 +0000

With the New Year upon us, we are all reflecting on our past and how we can improve our future. In the early days of our business, we took any client or customer we could get. We had to stay in business. It’s humbling and sometimes we had to put up with a fair measure of abuse. Clients, after all, are human with all the strengths and weaknesses that go along with that. They are in a position of power and they know it.

Good clients realize that treating their vendors (you) with respect will result in you doing an even better job for them because your are more concerned about their needs. They understand that developing a genuinely positive and friendly relationship will pay dividends over the years. Some clients, however, may use their position of power to further their own agenda which may not have anything to do with business or getting the job at hand done. Every salesperson knows this.

As an entrepreneur, you are in sales, no question about it. So the question is, how long do you put up with guff before you fire an abusive client? Well, certainly not in the first few years if you depend on their fees or purchases to stay in business. But eventually you will achieve a positive cash flow and have the luxury of choosing what clients you want to do business with.

Sure, it takes a lot of courage to fire a client. It seems counter-intuitive and counter-productive, but look at it this way: You can do a much better job for your remaining clients when you are working under less emotional stress. Removing fear and negativity from your mind share will do wonders for your ability to perform.

Michael’s father once told him when he was a young boy complaining about a schoolmate, “You are like a space station orbiting the earth. You only have 3 or 4 ports where visiting space ships can dock. When all the ports taken, no new ships can get in. First, you have to open up a port.”

Bonnie’s mother, a Rosie-the-Riveter type from World War II, lived with us for 7 years and supplied us with salt-of-the-earth wisdom and common-sense insights. She used to tell us that seasonal pruning makes the trees grow stronger and produce more fruit. This basic gardening philosophy, along with Michael’s father’s advice, can be applied to your company as well.

As the year comes to a close, take a good look at what clients you love to work with and those that give you that pain in the pit of your stomach. Are you still at that desperate stage where you can’t afford to let them go? Or are you now in a position to take a chance on filling that vacancy with a new client who may be more rewarding to work with? If you are, maybe it’s time to prune. You may just open up the opportunity for the right client that you now have time for. You may find that when unhampered by negative emotions, you can give your company and all your clients your very best.

You have a life too. And your work takes up a major chunk of it. If you’re anything like us, you work hard because you sincerely want the best for your clients. Why not pare down to the clients who really appreciate your efforts and encourage you to be your best? Why not open up a port for the ideal client to dock at your space station?

Who We Are

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

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Can Extensive Orientation Improve Job Performance?

Michael Houlihan & Bonnie Harvey — Fri, 09 Aug 2013 23:55:07 +0000

In an attempt to quickly get a new employee into production, some companies spend the minimum amount of time on orientation. It usually consists of the job description and a brief history of the company and its products. Some seem to feel that extensive information about the company’s processes, organization, and customers is just too much information and that somehow it’s not necessary.

This minimalist approach to orientation can have some counterproductive consequences, especially where judgment, relationships, and potential are involved. When people just know the “whats” and not the “whys” of their job, the company suffers in the long run.

Invest in time during the orientation process and beyond. Make sure new employees understand how the money gets into their paycheck, who the customer is – at every level, and how the process works to provide those customers with goods and services. Show them how your various divisions of labor provide the specialties necessary to your company, and how each person fits in to the big picture. This investment in extensive orientation will pay off handsomely and will save you time, money, and relationships down the road.

The orientation period should extend beyond the initial orientation and continue into the first year. Listen carefully to the questions your new employees ask — not just to the actual questions, but to the assumptions, logic and even preconceived notions behind the questions. They often mask real deep-seated misunderstands the employee may hold about the way things work. We would often get questions that could have been answered by a simple yes or no. Instead, we sometimes spent 15 minutes or more unraveling misconceptions that could lead to future problems. If you listen for the misconceptions between the lines, rather than giving a short answer to the question at hand, you build the kind of understanding that pays off in better decisions, reduced supervision, and improved performance.

When people don’t get a clear answer to their question, or more importantly, the reasoning behind that answer, they tend to make up a plausible explanation that seems logical to them. Then they act on it. If they do this over time with no apparent negative repercussions, it gives them “permission” to believe it’s true, and that’s where the trouble begins. These misconceptions can be ingrained for years until one day you are surprised by unexpected behavior that suddenly costs the company thousands! This is why it’s very import to listen to the logic behind every question, be proactive, and give detailed explanations.

We found that this extensive approach to orientation produced people that actually improved our organization, processes, and relationships. Because our staff had a comprehensive view, they regularly suggested new or better procedures, reorganization, and even entirely new jobs that we didn’t know were necessary, but became pivotal to our success. They often came up with unsolicited solutions to challenges we faced in execution and communication. Our company culture benefited immensely from our people’s understanding of what was really happening and why. It gave them the respect they needed for their co-workers, affiliates, and customers, resulting in solid and productive relations.

So, the next time you hire a new person, spend the time it takes early and often to give him or her a thorough orientation. Don’t stop at the job description, but include your entire business model and how it works to give your customers the goods and services that make everyone’s job possible. When the cement is wet, you can move it with a trowel, but when it gets hard, you’ll need a jackhammer!

Who We Are

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

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Corporate Structure Can Turn Information into Currency – Part 2

Michael Houlihan & Bonnie Harvey — Fri, 05 Oct 2012 15:49:26 +0000

Johnny Carson used the expression, “I did not know that” and brought the house down. It was his way of stating his lack of knowledge about any surprising event. The audience was also surprised and couldn’t help but laugh.

It’s no laughing matter when your staff finds out that they are out of a job because your company lost a major buyer or couldn’t solve a critical problem. But if they don’t understand the challenges, they can’t help with the solutions. If their good ideas are suppressed or the free flow of information is stopped because of politics or turf wars, the challenges your company faces can be become even greater.

Your people are your greatest assets. They all come with a brain, imagination, and a desire to better themselves. They will use those resources to the benefit of your company if you let them.

Here are some effective practices we found that engaged our people to help us solve our challenges and keep the information free flowing:

1. Need-to-Grow Trumps Need-to-Know. We told our entire staff our major challenges and asked for their suggestions. Their outsider’s view in many cases provided fresh, out-of-the-box solutions. What if they didn’t know? We would have lost those insights.

2. De-Specialization. Every year we asked each employee what they would like to do within our company. We put our various job requirements on the table and they were all picked up, but not necessarily by the same folks who had them the previous year. We found that people whose job fit their skills and desires out-performed strict job specializations.

3. Performance-Based Compensation trumps position, tenure, or attendance-based compensation. Once all our people were getting bonuses on sales it became clear to them that the money came from the customer, and not the “company.” Sharing information and ideas was good for everybody’s paycheck.

4. Out-sourcing. Rather than trying to do everything in house, we would out-source for as much as possible. We paid only for the products and services that were to our specifications. Our people managed outsourced companies, which had the net effect of keeping us smaller and less restrictive. It reduced the typical company pyramids and enabled people to communicate directly with the decision-makers in our company, allowing more good ideas to reach top management.

5. Public Acknowledgement. We would “catch” someone doing something beneficial to the entire staff and, much to the chagrin of the lawyers, publicly acknowledge them in writing. We encouraged everyone to come forward with new ideas and for that they would gain appreciation. This practice also built a strong company culture since everyone understood and appreciated how other folks in the organization were improving their job security and increasing their paychecks!

Of course, all these ideas may not work in every situation, but it’s the spirit behind them that can help any business. Respecting the intellect of your human resources, giving them a financial reason to work as a team, and sharing your challenges can avoid hardening of the information arteries and prevent them from saying “I did not know that.”

Who We Are

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

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Corporate Structure Can Turn Information into Currency – Part 1

Michael Houlihan & Bonnie Harvey — Sat, 29 Sep 2012 22:00:45 +0000

The corporate structure is based on a division of labor into specialized groups who tend to isolate themselves from the rest of the company. Each division has its own professional organizations that reinforce this view. Within these divisions of labor are further structural elements that stratify the chain of command into pyramid-like structures.

Although these structures seem unavoidable just to get the job done, they can have a sinister creative-stifling side effect. The heads of each mini- and maxi-pyramid can actually stop good ideas simply because they did not think of them, and they find that threatening to their position. Job preservation can become job number one, even at the expense of the company itself. When this happens, the flow of information and ideas become constricted.

Add to all that the well-meaning policy of “need to know.” Now you have inadvertently put a price on information. It can become a commodity used as a type of corporate currency where one person will only tell what he knows in return for administrative favors or other scraps of information. When you add in the possibility of incorrect information, rumors and gossip, corporate culture and morale can suffer. This results in a decline in productivity and profitability.

Since the top of the pyramid is narrower, there’s simply not enough room there for all the ambitious and aspiring folks further down the pyramid. So there’s a natural competition for those top jobs. Many see using and controlling information as critical to their advancement.

We recently attended a fund-raising dinner and sat next to a top executive from a major corporation. We were talking about why so many of the new good ideas seem to be coming from the entrepreneurs and not the big companies. When we pointed out the free flow of information and ideas enjoyed by entrepreneurs and the restriction of information flow in some corporate structures, due to their size, he responded, “We don’t have those problems in my division.”

When companies are in their start-up phase, information and ideas flow freely. They listen to all ideas, from anyone who will offer them, because they are struggling just to stay in business. Being small and undercapitalized encourages this to happen naturally. Everybody in a start-up knows that their job is dependent on the survival of the company. They readily share information with other divisions because they are not cast in stone – yet.

As a company grows, it’s hard to say where this potential “hardening of the arteries” begins to set in, but we think it is more likely to happen as more employees are hired. However, without governing factors, it can happen in a company of any size.

Next time, we will share some ideas we employed to encourage the free flow of ideas and communication, and ways to prevent information from becoming a currency.

Who We Are

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

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Sales Professionals Deserve our Respect

Michael Houlihan & Bonnie Harvey — Sun, 23 Sep 2012 06:31:33 +0000

From the outstanding musical, “The Music Man” to the hilarious movie, “Used Cars,” people in the sales profession have long been saddled with an unfair stereotype. Yet, without sales, few businesses would succeed.

Our economy relies on hundreds of thousands of salespeople that most of us never see, but their skills are responsible for our high standard of living. They call on the buyers who produce and sell the products we all buy.

Salespeople provide buyers with the choices and information that result in the ever-improving products and services we enjoy daily.

Some big companies entertain a culture that demeans sales people to the point that they are given products to sell and pitches to use without any say in the product development or marketing. Because many sales take place outside the office and production plant, the sales division is treated if it was somehow separate from the rest of the company. In many cases, it’s the office vs. the sales people. This attitude can give the marketing division too much power over the development of sales materials. Likewise, the production division can have too much say over product development.

The sales division should be advising production and marketing on a regular basis to ensure that your company’s products remain relevant, competitive, and affordable. Because of the sales division’s direct relationship with the customer, sharing their insight and experience is crucial to the success of your company. Regular feedback from Sales on changes in the marketplace, the features and benefits their buyers are demanding, and the effectiveness of your company’s marketing materials makes dollars and sense.

No one knows the marketplace better than the professional salesperson. Their livelihood depends on it. Progressive companies recognize their special skills and capitalize on their unique position. But of all the skills that these sales specialists must utilize, none is more essential to success than relationship building.

Most buyers make purchasing decisions based on the sales person first, and the product second. We know of buyers who have actually changed the products they carry just to stay with a salesperson they know and trust. It takes years to establish this kind of credibility. Buyers don’t want to start all over “training” a new salesperson about their particular concerns and buying style. The salesperson they know has become an “assistant buyer” to them, and makes their job much easier.

Like they say in “The Music Man,” “Ya gotta know the territory.” But they also have to know so much more. The experienced salesperson knows how his product satisfies the buyers needs better than the competition. He stays on top of his buyer’s inventory. He understands his buyer’s limitations of shelf space and holding capacity. He assists his buyer with promotional calendars and point of sale materials. He makes sure the buyer’s purchases result in the best possible prices.

Over time, salespeople establish a positive track record with buyers with dependable customer service, including delivery, added value, pricing, and follow through. Above all, sales professionals have the people skills and the history to demonstrate they have the buyer’s best interest at heart.

Sales is a specialty skill and the backbone of our economy. Without sales professionals, most of us would be out of a job! Isn’t it time we gave the sales professionals the respect they deserve? Cheers to the salespeople, our unsung heroes!

Who We Are

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

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Put Your People on the Same Team

Michael Houlihan & Bonnie Harvey — Sun, 26 Aug 2012 00:29:36 +0000

No matter what kind of business you think you’re in, you quickly find out you are in the personnel management business. With careful hiring, mentoring, recognition, and compensation plans, your people can be your greatest asset.

Recurrent, personnel issues can be a distraction to you and your staff. Some react to personnel problems by firing the offending parties. Occasionally this may be necessary, however the issue may be a symptom of misunderstanding how your company works.

This is why it’s so important to address the main areas that can permit or actually cause personnel issues:

1. Hiring. Before you are dazzled by a stellar resume with the perfect skill set for your opening, consider the individual’s ethics, motives, and team outlook. Do they think they should be paid whether or not you are paid, or whether or not the company satisfies its customers? Are they bringing an agenda to work that has nothing to do with the job? Do they want to get paid for attendance or for production? Are they willing to take responsibility for their own behavior or are they looking to blame and complain?

2. Orientation. Don’t just show them the lunchroom and the bathroom. Show them where the funds come from that pay their salary, benefits, and bonuses. Give them an info graphic that traces the money from your customer, through your sales people, to cover your overhead and eventually pay them. Show them how their job affects the bottom line. Show them how everybody else’s job affects their paycheck. It’s easier to look beyond a co-worker’s personality when they know how everyone fits into the big picture.

3. Compensation. Most compensation plans are based on an hourly rate, which is paying for attendance, not necessarily production. Consider offering bonuses based on sales, cost reductions, and customer retention. Give them a financial reason to help the team perform. With the ideal compensation system, non-producers can’t afford to work for you and producers can’t afford to leave.

4. Mentoring. The time and attention you put into a new hire pays off. Listen to their questions. Clear up quickly any misconceptions about processes and interrelationships. Instead of narrowing down their focus, broaden their outlook to include their co-workers and the larger processes at work. Help them establish priorities. Seeing the big picture keeps the focus on their careers and performance rather than personnel issues.

5. Acknowledgement. A great way to build team spirit is to send out written acknowledgements or make an announcement when a person does something that positively affects business. We did this on each employee’s anniversary. Your people will gain more respect for their co-workers’ value as a team member. It is great when your employees can be friends, but respect and appreciation for their interdependence can be more effective in reducing personnel issues.

When your people know how their check gets to them, how they depend on their teammates, and how their bonuses are affected by the company’s performance, they are more likely to all pull together. Then you can focus on the journey and not the pebble in your shoe.

Who We Are

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

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Find Good People – Make Great People

Michael Houlihan & Bonnie Harvey — Mon, 11 Jun 2012 19:30:23 +0000

People always ask us what we look for in a job applicant because we had such a great staff. Sure, we looked at qualifications, but we looked beyond that.

We wanted people who were not only qualified, but also had foundational qualities we could build upon. We wanted to see our staff achieve the highest and best use of their talents – many of which did not manifest for a year or so.

We looked for enthusiasm, confidence, honesty and integrity. We also looked for a willingness to learn. And, they had to be fun. It is much like finding a new friend, and we created great friends in the process.

The key to developing great people is to start with good people – and then provide the environment, encouragement, resources, and flexibility for them to become their best.

Culture. A positive company culture is essential to the nurturing people. Constructive attitudes toward mistakes and a policy of permission allow for greater creativity. Use positive language. Talk about what you want, not what you don’t want.

Compensation. Brian Tracy says most performance problems are caused by compensation systems. Reward for production and growth. Clearly state what you want in each phase of their training.

Encouragement. Catch your people doing something right. Tell them two things they did well for every one thing they can improve. As their “boss,” you become an authority figure they look to for validation.

Monitoring. Know what questions to ask of the data. Identify the metrics that best quantify performance. Make the reporting intervals as short as possible, especially during the first 90 days.

Mentoring. A person is worthy of your time when they quickly pick up on concepts and extrapolate principals to other applications. Put more energy into him or her. Your time and efforts will be rewarded when you start with the right people.

Acknowledgement. Give public acknowledgement, and tie it in to how it affects everybody’s salary, security, and potential. When you educate staff about what individual team members contribute, this encourages them to do even better.

Written Resources. Have a policy of documentation. The same mistakes will not be repeated, the nuances of a job can be passed on, and your new hire can study what is expected of her. To keep job descriptions current, ask everyone to update their own annually.

Training. Having written materials will reduce the training time. Stage this information so the new hire can focus on mastering one aspect at a time. Expect to spend three to six months in training before proficiency is achieved.

Conferences. People want to improve their skill set. Of course, this will add to their resumes. However, if you are paying them right, they won’t leave, and they will create the income for their own raises. So, yes, send them to training conferences.

Architecture. Natural and supplemental lighting, air conditioning, workspace, and noise levels all effect production and concentration.

Best IT. Probably the most frustrating part of any new job is learning the IT and protocols. Have an IT “guy” who can quickly “fix” problems. Make your systems intuitive and user friendly.

To get the best out of your people, find out what they excel at. Then, redesign their jobs to fit those skills. Ask others to pick up the aspects of the former job that still need to be done. You might be surprised at the positive response. Don’t put the square peg in the round hole. Build a square hole.

Who We Are

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

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