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

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.

The post Put Your People on the Same Team appeared first on The Barefoot Spirit.

Brian Tracy says, “If you want to be successful, ask yourself this question: How can I increase my service to my customer today?”

More than any other type of business, service businesses are reputation driven. After just two years, most service businesses are fully reliant on 80% return business. Are your clients sending in more clients?

Here are four ways to classify your clients and customers to help answer that critical question and provide some insight about your ability to satisfy them:

1. New: These folks are new to your business. They walk in the door, either because of your advertising or because of the general reputation of your business. In the early days of your business, they represent the majority of your clients. It is critical that each one of these new clients, “trying out” your business for the first time, leaves with glowing reviews to pass on to their friends and associates. But new, first time clients, can’t go on forever. Sooner or later you will go through all the new clients in your area. If you are in business for even 6 months and you still have 75% new clients, you are in trouble!

2. New Requests : These are New Clients who are requesting a specific person on your staff. This benefits the overall reputation of your business, and ultimately, its very security. The requested party needs to be rewarded for this personal reputation. Conversely, your associates who never get requested by new clients may be going through the “new” clients without them ever recommending your business or coming back to your establishment. Time to review their tenure.

3. Returns: (not necessarily requesting anyone in particular): These clients are good news – bad news. The good news is that they trust your business as a whole, without loyalty to any one particular associate. They are touting the merits of your business in general. The bad news is, if they have a bad experience, they are liable to say that the whole business is going down hill and hurt your reputation. Aside from a “New” client who is dissatisfied, that you never hear from again, “Returns” are the next most likely type to disappear. Try to find someone with whom they will be happy with as soon as possible.

4. Return Requests: These clients are returning to your business, requesting a specific person. They are loyal to the person who provided dependable and added-value service in the past. If that person leaves your business, those clients will follow him. Associates who have a large percentage of “Return Requests” should enjoy higher compensation and ultimately some equity in your company to reduce turnover. Your compensation plan should encourage this type of service professional. That plan will attract and keep the type of performers you need to grow your business. It is critical that you know early and often who they are.

The best time to find out what type of clients your service business is attracting is when they make an appointment or reservation. A few short questions at that point will quickly tell you into which category they fall. Constant vigilance and analysis of these four simple client types will give you the insight you need to craft compensation plans that get and keep return clients and customers.

Today there is much talk about Customer Relations Management, but it’s critical to step back and look at the big picture with these four general categories in mind, especially when you are in a service business.

Next time we will discuss some tips to attract new business, keep your performers, and increase your service to your customers.

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.

The post How to Improve your Service Business appeared first on The Barefoot Spirit.