Human resources | The Barefoot Spirit

Hire a Person with a Sense of Urgency

Michael Houlihan & Bonnie Harvey — Sun, 04 Nov 2012 02:01:38 +0000

We have a friend in Chicago who uses a self-styled word to define the quick moves a person uses to accomplish the task at hand. He calls it “hustlative.” It stuck with us as a great descriptor for this critical attribute. It can be the difference between success and failure, especially in a start up. It can save the bottom line with the proverbial “stitch in time.”

We used to interview people to try to get a feel for where they stood on the “hustlativity” scale. Beyond their skill set, personality, or even intelligence, their ability to move quickly on a project with a sense of urgency was critical to our grossly under-capitalized and growing business.

We had to hustle, and everybody we hired had to as well. When we got a write-up in a trade journal, or won a gold medal in a wine competition, we had a print version of the announcement up on the shelf in the stores the very next day! If our salesperson got a last minute appointment with Mr. Big at 10 o’clock the next morning, our accounting people had a report in his hands before day’s end.

When we had a deadline, everyone would pitch in. Our team was aware the major advantage that our company had over the big, sluggish corporations was – we had hustle. We were lighter, faster, and able to adjust quickly to take advantage of sudden changes in the market place.

When we heard of a distributor who lost a big brand in our price point, we went to them the same day with a proposal to put our product in everywhere the brand they lost had been. Hustle meant money to us, and we built a national award-winning brand in spite of the size of our staff, the size of our competitors, and the size of our budget. Hustlative counts.

Here are three ways we used to try to determine how hustlative our job applicants were:

1. Get Water. During the interview we would ask them to go out and get us some waters. We would watch how they got up, opened the door, left the room, how long they were gone, and how they moved on their return. Were they deliberate, determined and focused, or were they unstable, slow and just shuffling along?

2. Grab a File. Later, we would ask them to get a report on the other side of the room. We could see how they executed a simple physical task, and how long it took them.

3. Take a Walk. After the interview, we would invite them to take a walk with us around a nearby lake. We would take mental notes of their cadence, posture, and balance. We walked rather quickly, and observed if they could keep up.

Their body language shouted volumes. Our experience told us that their approach to the job, with all its challenges and deadlines, would not be much different than how they used their body to perform simple physical tasks.

Looking for, finding and capitalizing on opportunities that suddenly present themselves, and approaching them with a sense of urgency, all took a great deal of hustle. We were successful because we worked as a team, and each of us was hustlative!

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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The 9 Essential Elements of Mentoring

Michael Houlihan & Bonnie Harvey — Sun, 21 Oct 2012 03:04:27 +0000

We’ve all had mentors who, one way or another, have encouraged us to live up to our potentials. Perhaps they recognized a natural talent in us that they wanted to help elevate. Perhaps they wanted to see us get ahead. We may have lost touch with our mentors, but we can certainly show our appreciation by passing it on and helping others the way they helped us.

As the principals of a successful start-up that became a well-known national and international brand, we had the opportunity to mentor many wonderful people who worked with us. We also learned by the experience. We learned how to be better mentors.

Here are what we consider to be the 9 essential ingredients of successful mentoring:

1. Sincerity. You have to really want to help make a difference in someone’s career. It can be trying at times. To stick in there long term requires a sincere level of concern.

2. Qualification. The candidate you are mentoring has to be both receptive and willing to improve. They prove this by demonstrating steady improvement over time. They have to realize and appreciate that you have their best interests at heart.

3. Investment. You have to be willing to be patient and make a long-term investment in that person. Everyone says they are fast learners, but how many examples do they need to understand the concept and apply it to new situations? The time and attention required by you will differ with each person.

4. Permission. Your apprentice naturally looks to you as an authority figure. As such, you are in a unique position to grant them permission to experiment, discover, and yes, even make mistakes. We’ve found permission to be the most important ingredient in progress.

5. Encouragement. Look for them to “get it,” master a new skill or demonstrate a more sophisticated level of judgment, and when they do, congratulate them! Tell them you knew they could do it. And when they fail, ask them what they learned and how they are going to apply it next time.

6. Communication. When they ask a question, listen for the underlying question. They may have a serious conceptual misunderstanding. Take the time to explain the details behind the concept, even though they may not have asked about that in particular.

7. Seasoning. Some aspects of what you have to teach them they may already know, or learn quickly, but some aspects can take much longer for them to understand and apply. You have to be patient and hang in there. They may not get some of what you are trying to impart until after you have left, but maybe you laid the foundation for a later epiphany.

8. Examples. We’ve found that folks respond better to real life examples from which they can draw their own conclusions than they do from a more prescriptive, text book approach. Rather than repeating the lesson, give them more examples. One will finally resonate.

9. Validation. As a mentor and authority figure, your acknowledgement, approval and appreciation are probably the most powerful tools you have. Folks want to know that they did it right and that someone they respect confirmed their success. They will then repeat that success with confidence.

People ask us what we are the most proud of. We always point to the success of the people we’ve mentored. Nothing is quite as rewarding as seeing another person avoid the pain you’ve endured and capitalize on the experience you’ve imparted when you “pass it on!”

Who We Are

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

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Landing the Perfect Job Applicant Requires Seasoned Piloting Skills

Michael Houlihan & Bonnie Harvey — Fri, 14 Sep 2012 00:56:57 +0000

When we owned Barefoot Cellars and were recognized for our success, we had our excellent staff to thank. So, it is not surprising that people ask us how we found such good people. Probably the most stressful part of hiring is, as Forrest Gump’s mom said, “You never know what you’re going to get!” Hiring anxiety is well founded.

Suddenly you are faced with the loss of productivity caused by the vacancy and the urgency to get a suitable replacement. The advertising and vetting process can last weeks. There’s also the knowledge that whomever you hire will operate at 50% capacity for some unknown period of time, and so will the person who trains them. Then there’s the fear that the new hire might not work out at all – and the process will start all over again.

Is there a way to mitigate some of this cost in time, nerves, and dollars? After years of struggling with this critical challenge, we finally honed in on a successful hiring process.

Typically, we would start by running an ad, posting a job on the web, or using the services of a human resources agency. The first responses were usually a plethora of well-polished and professionally composed resumes, accompanied by glowing cover letters. The red light went on right there, because we weren’t seeing how the person presents himself. And, in any company that sells something, it’s essential to know.

Here, then, is our secret to (more) success in that hair- pulling hiring process: The 7 Steps to Hire by Wire:

1. Standard Take Off. After you have advertised and received your first batch of resumes, begin the standard vetting process. Identify the shortlist of candidates from their listed skill set, experience, and cover letter.

2. Set the Course. Check the references of the top candidates and settle on the prospects you would like to interview by phone.

3. Cruising Altitude. Call up the top candidates and give a short, standard phone interview. Ask the crucial questions.

4. CHANGE COURSE! Explain to them that the position they are interviewing for is not stand-alone, but is one of a team player. Tell them who your customers are, the products or services you provide, how your company makes money, and why this job is essential to the process.

5. Request Permission to Land. Ask them to, on one page only, summarize what you have said, how they are qualified to help the company achieve its goals, and ask them to email it to you by 5PM the following day. This gives them an opportunity to show you that they understand the job, have good comprehension and retention skills, can organize and communicate in writing, and can meet deadlines.

6. Control Tower. You will be amazed at what comes in! During a recent job interview process, we found few applicants wrote in complete, succinct sentences, comprehended what was said, stayed to one page, and met the deadline. And every applicant was a college grad with a well-written resume!

7. Cleared for Landing. Now you can clearly see who you should bring in for an in-person interview. You can learn a ton about an applicant using this email-me-back method.

This may not apply to every job, but we’ve found it provides us with qualified candidates, and saves us time and money. Put into practice, these 7 steps will help you navigate through the glare of the shining resumes. Using the phone and email prevents you from flying blind, and allows you to hire by wire.

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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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.

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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.

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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.

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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.

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Beware of “Money Saving” Suggestions from Your Non-Sales Staff

Michael Houlihan & Bonnie Harvey — Sun, 20 Nov 2011 23:57:02 +0000

Let’s start by realizing that there are really only two divisions in every company, Sales and Sales Support. Since Sales Support includes everyone not in Sales, Sales Support consists of Production, Accounting, Marketing, and so on. Without sales there is simply no money for Sales Support salaries. Still, Sales needs Sales Support to perform.

The Sales people are doing their job out in the field. The non-sales people are at the office or at the plant everyday. They’re the ones you see most often, and can be the most influential.

In their desire to help the bottom line, non-sales people may be undermining sales. They often propose various money and time saving ideas, which is wonderful, but it’s up to you to protect sales. Many well meaning suggestions contain these preamble phrases to look out for:

1. “Why don’t we just…?” This is how the suggestions to cut costs usually start. The suggestion itself indicates that they don’t know why we “don’t just.” Be on guard for this because both you and they must know the reasons why “we don’t just.” A thoughtful discussion usually will result in many answers to this ageless question.

2. “Why do we have to…?” This is usually followed by a suggestion to make their job easier, thus reducing labor costs. This may indicate that they don’t really know or understand why they must do this or that. There are many subtle quality queues and nuances in your product or package that they may not realize. They may well have a good suggestion, but make sure it is not at the expense of sales.

3. “If we just cut this out, we could save…” and they do the math. This is usually a simple multiple of a small savings times the number of units sold. Beware! This may hurt sales in ways they know nothing about. This thinking is based on the assumption that sales will remain at the current level, before the “cost” savings or “labor” savings idea went into effect. Savings can rarely be as simple as a mathematical formula. By discussing the need (or lack of) the particular part of the product or package they are suggesting be eliminated, you both will come to a better understanding of what is necessary to make sales happen.

4. “I just came up with this great idea!” Some suggestions stem from your people’s desire to make their mark on your product or package. Sometimes their motive is career, sometimes it’s based on a desire to be more like your competition, or they may think “its time for a change”. Your product’s uniqueness may be the very advantage that distinguishes it in the marketplace. Consistent packaging and logo designs are critical to your product’s image of dependability.

5. “This will increase sales.” Your marketing people can make or break your company. They may have a tendency to think they have control over your sales people, and that your sales people must use what they are given. What they design on their computer screens may look fine to them and the other marketing people, but until it has it been field-tested, whether or not it will “work” is an unknown. Marketing is expensive, so think carefully before funds are spent on a new idea.

Your Sales Support staff is well meaning, and you should welcome their ideas. In my next article, we will discuss how to keep the good suggestions coming, and how to make money and time-saving decisions that won’t hurt your sales.

Who We Are

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