Ethics | The Barefoot Spirit

American Business Ethics are Based on Good Business

Michael Houlihan & Bonnie Harvey — Thu, 21 May 2015 17:00:29 +0000

We are often asked to speak about the financial advantages of American entrepreneurial practices when we speak to people in emerging markets. Even though some American entrepreneurs may have forgotten, it is our ethics that ultimately give us the edge. Compare this to the new emerging economies where cultures of fear, desperation and dog-eat-dog may appear to be the order of the day.

One of the themes we keep coming back to in our keynote speeches is that integrity and good business values just plain make good sense. Beyond the warm and toasty feeling doing the right thing brings, we’re also talking deposits here. The term “ethics” has been overdone, dated, and evokes a goody-goody image, but don’t limit it to that. Being reliable, trustworthy, and fair are real business advantages today and in the future.

Buyers have many choices when it comes to products and services. They look beyond for companies that stand behind their products and resolve quality related issues quickly. When buyers have a positive experience with a company, they become not only loyal customers, but strong advocates.

Having empathy in every business relationship is the true guide to treating customers, employees and associates right. When you put yourself in their shoes, you know what they would ideally like to happen in any given situation. This insight is the blueprint for the action you and your company must take to maximize these relationships.

For instance, you can significantly reduce your need for capital, so important to a start-up, by being honest with your bankers, investors and vendors. Meeting with them often and laying out your business plans will give them the sense of confidence they need to make allowances that can increase your credit and extend your terms.

Bending over backwards to bring mistakes to the attention of the effected parties before they find out will build your credibility and demonstrate your honesty, and show them that you are the kind of company they want to do business with. This demonstrates that you have their best interests at heart and may result in more beneficial programming and promotion of your products. Further, they gain respect for you because of how you handled a foul-up, missed delivery, or defective product.

Rather than fighting your competition, get out of the negative cutthroat mode and into the creative mode. Distinguish your products and services. If you want to compete, do so with yourself, and do better this year than you did the last. We build Barefoot Wine by attacking where the “enemy” was not. The retailers in remote areas were so happy to get attention from us, they strongly supported us in places most people never heard of. This gave us a firm financial foundation to expand into the more popular markets.

These are just a few ways taking the high road will pay off financially. By framing these values in business terms instead of moral terms we hope to appeal to a wider audience. Often, the threat of ruthless competition, shorting the customer, doing the minimal, and ignoring your commitments are sold as shortcuts to fortune. We are told that everybody is doing it and if you don’t, you will be left in the dust. We find this fear-based attitude is taking hold in the developing economies. And for a while it may appear to be advantageous, but in the long run it is short sighted and forgets that people remember. Ultimately this cut-throat approach will cut your own income.

We offer an alternative to sustainable entrepreneurship that is based on loyal customers, increased credit, and mutually beneficial strategic alliances. There are no short cuts to the bank!

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 American Business Ethics are Based on Good Business appeared first on The Barefoot Spirit.

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.

The post Should Some Clients Be Fired? appeared first on The Barefoot Spirit.

How to Get a Job in Today’s Market – Part 1: Your Résumé

Michael Houlihan & Bonnie Harvey — Sat, 26 Apr 2014 18:30:51 +0000

Today’s college graduates face increasing competition for the fewer jobs that are out there. We often are asked by college students, “What do I have to do to get hired?”

Many students chase the courses that seem to align with a particular profession hoping that their formal education in a specific area will attract an employer all by itself. It won’t!

Many students who put themselves through school with borrowed money face double jeopardy. First, the payback on the loan they’ve taken out is sometimes 3 and 4 times the amount borrowed, and because they had funds from the loans, they didn’t feel pressured to get a job while in college. So they pass up the opportunity to get real-world experience. Yet that experience is one of the qualifications an employer is seeking.

Here’s our short list of what employers are looking for today:

1. Experience. It is better if it’s in your chosen profession, but even if your experience is not, it demonstrates that you can and have held down a job. Hopefully, your boss provided you with a great recommendation you can put on your résumé. So, while you are going to college, consider working your way through, even if it makes your curriculum extend beyond the typical four-year standard. That job gives you a big edge over the students who just borrowed their way through school. And if you do borrow, you’ll be in a much better position to pay it off.

2. Entrepreneurship. Yes, employers are now starting to hire grads with entrepreneurship education and experience over those who don’t have it. Why? Because they want to hire folks that understand that all the money- including their salary, benefits and bonuses- originates from the sales of the company’s products or services. They want folks who understand that sales and customer service is the key to maintaining and growing cash flow. They basically want to hire people who really understand how their position fits into the big picture of the company.

3. Stability. Probably the first thing employers do when confronted with a ton of résumés is to eliminate the ones that look “unstable.” Instability is easy to spot because it’s measured by how long you have held onto each job. If, for instance, you have been jumping around from job to job with less than one-year tenure at each, it makes them question, “Why should I hire this person? The training alone will take 3 to 6 months.” It’s difficult for a college student to demonstrate long-term tenure with an employer, but holding on to a part-time job for two years or more speaks volumes.

4. Ethics. What was the biggest mistake you made working for an employer and how did you handle it? No, it’s not a trick question. It’s all about whether you cover up and blame others, or whether you take responsibility for your own behavior – and sometimes, for the behavior of others. Employers want to hear that you are honest and can take responsibility. So, if you can, demonstrate what you did to make sure you, or anyone, wouldn’t make that mistake again. It may be that you rewrote the policies and procedures; checklists and signoff sheets; or even put a new clause in a contract or a sign on the door! Employers want to hear how you added permanent value to your last employer’s company.

Remember, when all the résumés are lined up, you want yours to stand out. Employers are looking for employees that will justify their investment in time, money, and training. Your resume has to say, “I’m worth the risk!” So make sure your resume distinguishes you from the rest. We wish all the grads good luck landing that all-important job after graduation!

Who We Are

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

The post How to Get a Job in Today’s Market – Part 1: Your Résumé appeared first on The Barefoot Spirit.

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.

The post Corporate Structure Can Turn Information into Currency – Part 1 appeared first on The Barefoot Spirit.

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.

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

A Solid Business Foundation is Necessary for Success

Michael Houlihan & Bonnie Harvey — Fri, 02 Mar 2012 02:41:14 +0000

When you build a house, the foundation must be laid strong and straight. If it’s not, the framers try to make up for it. When they can’t, the drywall guys try to make up for it. When they can’t, the painters try to make up for it. When they can’t, you’re going to have to live with it. So rather than cause problems all the way up your structure, lay your foundations straight and true.

It’s been said that it’s not the journey of 1000 leagues that wears down the mighty soldier, but the tiny pebble in his shoe. Here are some philosophical considerations that can help lay the foundations for your business and make the journey less wearing:

1. Have you put yourself in your customer’s shoes? Does your product add value to your customer’s life? Is it dependably available? Are you willing to do what is necessary to provide exceptional customer service? How will you gain feedback and keep your product relevant?

2. Have you put yourself in your distributor’s shoes? Do you know why he would carry your product? Are you willing to help him sell it? Do you understand the processes involved? Do you know why his retail customers buy your product? It might not be for the reasons you think.

3. Have you put yourself in your own people’s shoes? What are their goals, expectations, and aspirations? What kind of training and direction do they need? Are you willing to write down policies and procedures? What kind of culture will you provide? Will they be compensated to perform?

4. Have you put yourself in your creditors’ shoes? Are you willing to provide honest communication even when you can’t perform? Are you concerned about their payables? Will your integrity give them a reason to increase your credit and terms? Would you lend money to yourself?

5. Are you willing to take a smaller slice of a larger pie? Are you willing to share in the increased profits with those who make it possible? Are you going to reduce the cost of turnover by providing financial opportunities to stay with your company?

6. Do you know how to make mistakes right? Will people be fired because they made a mistake? Will your staff hide mistakes as a result? Or will you reward those that solve potentially reoccurring mistakes by identifying how they were made and suggesting new documentation?

7. Do you understand that sales provide all the income for your business and pay all your salaries? Will you organize you company, pay structure, and culture accordingly? Will the customer be on top, then the sales and customer service people, then everyone else?

The answers to these questions will determine the philosophical foundation of your business. Everything else that follows is influenced and shaped by those answers. Make sure you have answered them honestly before you begin to structure your business. The journey is hard and long enough without a pebble in your shoe.

Who We Are

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

The post A Solid Business Foundation is Necessary for Success appeared first on The Barefoot Spirit.

The Advantages of Being a Small Start-Up – Part 1

Michael Houlihan & Bonnie Harvey — Mon, 16 Jan 2012 03:02:47 +0000

Today we need new products, new services, and new ideas to invent our way back to prosperity. Small start-up producers have always been the backbone of the economy, not just because they provide the most new jobs, but because they improve the very quality of our lives by bringing more good ideas to the market. This is the first in a four part series on why small start-ups have an advantage over big companies.

“Build a better mouse trap” is the challenge to today’s inventors, entrepreneurs and start-ups. If you have a good idea, why wait 10 years just see someone else take “your” idea to the market, and say, “I had that same idea ten years ago!”

Sure, you’re undercapitalized, inexperienced, and up against the “big guys,” but you have several advantages that can make the difference:

Humility. Small start-ups tend to be more open about what they don’t know and are more likely to hire, contract, or otherwise engage the experience of experts outside the company. It’s OK if “it wasn’t invented here.” Your people’s jobs and raises are not dependent on coming up with all the good ideas or even pretending they can. Its OK to give someone else credit because you and your people’s concern is company survival. No one thinks he will have a job if the company goes under. No one thinks that company survival is not his concern. Your company is small and fragile, and your people know it.
Positive cash flow earlier. Being undercapitalized tends to force a cautious start that pays the bills as soon as possible. You simply won’t exist if you don’t. The big guys can get a budget for a new project that will lose money for years, or worse, they might not let a bad idea die because they have put so much time and money into it. The small company has to dump what’s not working fast to survive. Its OK to admit you’ve made a mistake and learn from it.
Innovation and Resourcefulness. If necessity is the mother of invention, being undercapitalized is surely the “father”. A start-up is forced to be resourceful. In the process, you can discover advantages you may never find with a second or third round of financing or a bigger budget. Bonnie says, “I feel sorry for a person with a good idea and I feel doubly sorry for them if they have money!”
Hire whom you want. If a candidate has all the skill and experience you need but lacks the credentials, you can still bring him on board. The big guys are concerned about liability and setting a precedent, so in their effort to remain safe and consistent they can miss out on some real gems. You can write and bend your own rules to accommodate opportunity when he or she knocks.
Freely shared information . In a small business, your staff knows more about the total operation. They may even manage several different jobs. Information in the big corporations tends to be treated like a coveted commodity, often used as a type of currency to buy a lunch, get a promotion, receive kudos, or trade for other information. Some information is down right suppressed because it may threaten some supervisor’s concept of job security.

Next time we will examine the advantages of being new, closer to the ground, communicating better, engaging in out-of-box-thinking, allowing good ideas to come from anywhere, and having an “outsider’s” view of your industry.

Who We Are

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

The post The Advantages of Being a Small Start-Up – Part 1 appeared first on The Barefoot Spirit.

Dress for Success (Especially in the Office)

Michael Houlihan & Bonnie Harvey — Mon, 09 Jan 2012 02:35:50 +0000

Many companies these days seem to think that they are giving their office staff some kind of a benefit by letting them dress any way they want. Business casual has become casual and casual has become downright scruffy. What happens when Mr. Big walks into your company and your people are dressed in a way that doesn’t telegraph customer service and professionalism? Before you can say anything, your new client has made a judgment about you, your company, your service, and your product based on how the first person he met was dressed. Now, un-ring that bell! It seems old-fashioned and unpopular to enforce a dress code, but before you write the whole idea off, consider the following:

Are you influenced by the way your retailers, vendors, and people trying to sell you something are dressed? How would you like it if your pilot wore jeans, your attorney wore a tee shirt, your doctor wore a sweat shirt? Would you be more likely to chose a service or product presented by a crisp and sharp dressing representative? Why give the advantage to a competitor who gets the “first yes” just because of the way she dressed?
Is your staff influenced by the way other staff members are dressed? When your staff looks around at their fellow staff members, does the dress they see convey expectations for productive and time-sensitive action, or is it a message that is laid back and disorderly?
Are your sales people influenced by the way your office staff is dressed when they visit? Most sales people have to dress at least business casual or better to gain the respect of their clients. Their success pays everybody’s salary – everybody’s! What kind of message do they get when they visit the office? Do they think “hey, these guys are with me!” or do your sales people think that they are somehow separated from your office staff?
Are your vendors influenced by the way your people are dressed when they visit your offices? Your vendors can provide valuable information about the market, your competition, discounts, how to buy to be the most cost efficient, and advise you about overstocks that you can pick up cheap. Do they want to waste that valuable information on what appears to be a laid-back company? Do they want to save it for a company that looks like they mean business and will expand and give him more business?
Is there less likelihood of problems between the genders when they are dressed to a certain standard? When men and woman are in business dress they tend to view one another as professionals, on the same team, playing by the same rules, and with the same business goals. They know they appear as capable go-getters and are proud of it.

When we had Barefoot Cellars, everybody thought, because of our beach and care-free California lifestyle theme, that we would be wearing go-aheads, shorts, and T-shirts in the office. They just naturally expected a laid back staff with surf boards out in the lobby. In fact we all wore business suits!

Customer service is Job One. Once your people start to get bonused on the profitability of your company, they’ll want to do everything they can to give your company the edge. They’ll want to dress for success. The way you dress in business reflects your respect for the impressions you and your staff give to your customers, vendors, sales people, bankers, and each other.

Who We Are

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

The post Dress for Success (Especially in the Office) appeared first on The Barefoot Spirit.

Positive Company Culture is critical to Growth and Survival – Part 3

Michael Houlihan & Bonnie Harvey — Sat, 31 Dec 2011 21:05:55 +0000

This is the third part in the series about the original Barefoot culture. Culture really sets the tone, boundaries, and expectations the team has toward your company, your mission and your product.

We’ve saved the best for last because having a common cause and a common challenge forges, more than any other single factor, positive company culture.

When you are growing especially a new a brand, something out of the box that has never been done before, you are going to face stiff resistance from the distribution channels and the retail establishment. You can’t blame them because what you are attempting to do is new and unproven. We jujitsued that resistance into the glue that held our team together and gave it a common cause.

The Culture of Common Causes

When Barefoot was trying to get traction in the marketplace, it was an uphill battle. Just to keep the bottles on the shelves was a daily struggle. The Barefooters ( Sales Reps) spent much of their time just replacing vacancies and point of sale materials that had been removed by competitors. Being a small company, Barefoot did not yet have the respect of the distributors or the retailers, and, therefore, did not warrant the attention required to keep the product in stock. Every Barefooter faced the same challenge all over the country.

“How could you put a foot on a wine label?” is what the wine snob detractors were demanding at the time. They thought it was just a passing fad, and a wine not to be taken seriously. The Barefooters were out to show them differently, and they did! Thanks to a great winemaker, Barefoot wines kept winning more medals than any others in the same price category. There’s nothing like team victory to bind the team together!

All the sales staff knew that Barefoot was indeed destined to become big, very big, so they worked together, shared war stories and kept each other energized. They felt like Davids, up against the Goliaths of the wine industry.

They also knew that their fellow Barefooters were actively engaging the ultimate market, the general public. They knew that Barefoot had a “secret weapon”: worthy cause marketing. They were making the world a better place through wine, and they were proud of it.

These forces forged a real team spirit and life-long friendships between the Barefooters. They all knew that it takes a certain type of person to be a Barefooter. They were happy to be one of the team, and they sincerely enjoyed each other’s company and support.

The original Barefoot culture was based on the human desire to have a positive effect on the industry, the community, and the environment, and to be recognized and appreciated for it. It was a philosophy of win-win-win.

Although the example of the original Barefoot culture was that of a consumer product delivered through conventional distribiutions channels, we hope that the lessons we learned will be helpful to you and your business no matter what it is. Good luck and good selling with a positive company culture!

Who We Are

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

The post Positive Company Culture is critical to Growth and Survival – Part 3 appeared first on The Barefoot Spirit.

Positive Company Culture is critical to Growth and Survival – Part 2

Michael Houlihan & Bonnie Harvey — Fri, 23 Dec 2011 20:19:28 +0000

A company survives and grows due to sales and the loyalty of customers and staff. Sales are based on price, value, dependability, integrity, availability and perception. The basis of perception is image, networking, and more recently, the transparency of the producer.

Transparency is what the brand stands for, its authenticity, its identification with higher values, and the actions it takes to demonstrate those values.

When companies subscribe to a higher order of value, beyond the products they sell, they have an advantage in today’s marketplace. Employees excel, and tend to stay with these companies, providing long-term relationships with retail buyers, customers and complementary organizations.

The Culture of Customer Service

At the time Barefoot Wine was founded, the business model was considered radical. The founders viewed it as more of a “service” rather than merely a product. At Barefoot’s price point, which we termed the “velocity price point”, it was clear that it could not survive without becoming “America’s Personal House Wine”. From the beginning, it was understood that it had to sell massive quantities to stay in business.

“Personal House Wine” was defined as the wine one serves in one’s own house as a staple: “Tuesday night wine, picnic wine, beach wine”. It was the wine to always keep on hand. It was the brand you discovered that consistently delivered the quality and value you had come to expect from your own “personal house wine”.

The company knew that customers (“foot fans”) would be loyal to the brand as long as the price remained stable (at the velocity price point), the taste profile was consistent (delicious), and it was available and easy to buy (in stock).

The original Barefoot culture wa based on the most comprehensive definition of customer service. Imagine a company that, through worthy cause promotions, encouraged customers to go into specific retail establishments to buy their brand. Imagine a company that viewed its displays as retail entertainment, adding color, fun, and theme sets for the enjoyment of its customers! This is the ultimate in customer service to your retailer, your end-user, and to your community.

The Culture of Acknowledgement

People are motivated by goal achievement, but also by public recognition. It not only validates their creativity, but it send a message to the rest of the troops that this type of behavior is not only appreciated, but also identified and exemplified.

Appreciation goes a long way toward building team spirit and encouraging everyone on the team to be creative in a productive and fun way. They know that top management and their teammates will recognize their achievement and are not afraid to speak up about it. They are encouraged to create imaginative promotions and fun events.

Public acknowledgement, especially in written form, circulated to all staff, is validation. Employees want to know that they are contributing, and that their efforts are being appreciated. Third party validation from managers, peers, customers, associates and non-profits builds confidence to go out and do more of the same, or better! It also give your people an appreciation of what their team mates are doing to improve everybody’s circumstances.

Positive company culture is the foundation of company success. It reduces turnover, improves morale, cooperation and overall team spirit, all of which result in increased imagination and productivity. Next time we will examine the culture of Common Causes.

Who We Are

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

The post Positive Company Culture is critical to Growth and Survival – Part 2 appeared first on The Barefoot Spirit.