Integrity | The Barefoot Spirit

7 Rules for Successful Delegation

Michael Houlihan & Bonnie Harvey — Thu, 01 Feb 2018 18:00:23 +0000

One of the hardest thing for any Type-A business owner to do successfully is to delegate. Some believe, “If you want it done right, you have to do it yourself!” They say, “Nobody can do it like I can do it.” And this may be correct, but sooner or later you must delegate. There’s just too much to do in a growing business, you simply can’t do it all yourself.

It’s certainly a compromise, but we believe successful delegation is a two-way street. The owner must accept less than “perfect” performance. The employee or contracted services individual must move out of their comfort zone, develop new habits, and accept new responsibilities.

Here’s what we have learned after years of experience, most of which was painful. Perhaps it will help you delegate more successfully.

Look for Extrapolation Learners. People who can extrapolate the underlying principle from an example and apply that principle to a new example they haven’t seen before are good candidates for delegation. Many people don’t bother looking for principles since they can get cut-and-paste examples for pretty much everything they need on line.

You will find many who say, “Like what?” to everything you ask, even when they have seen an example of the same principle in operation before. Avoid delegating to these people. Delegate only to people who glean overarching principles from the examples given in trainings and their own experience.

Seek Integrity. When people do what they say, don’t drop assignments you haven’t regularly asked about, and voluntarily keep you posted on the status of their projects, they are good candidates for delegation. Look for people who take responsibility to get the job done and don’t blame others.

Avoid delegating to people who say, “They never got back to me” when you have to ask, “What happened on that project?” because they didn’t voluntarily inform you. Don’t delegate to people who have demonstrated they will only accept the minimum level of responsibility required of them in order to get paid.

Look for Coachability. When people can take and apply constructive criticism, look for policies and procedures that can help them get their job done better and faster, and show steady improvement, they are excellent candidates for delegation.

Avoid candidates who take constructive professional critique personally or don’t seek experienced help because they so desperately want to appear self-sufficient and all-knowing.

Seek Self-Starters. When people see the big picture and, without being asked, initiate appropriate action, mitigate a problem, or improve an unstable situation, they are great candidates for delegation. They still require some supervision, but are less likely to require micro-management.

Avoid delegating to people who have already demonstrated a need for constant supervision and vigilant oversight.

Look for Mistake Learners. Accept that mistakes will be made. Look for candidates who learn from them, candidates that see them as an opportunity to get to the bottom of what happened, candidates who write new documents to prevent a reoccurrence, and candidates who can improve your company’s policies and processes.

Avoid those who hide or try to cover up their mistakes, or blame others (finger pointers). Seek to rid your company of those people who continue to make the same mistakes.

Provide Incentives. Create a bonus structure for the folks you delegate to. Make sure you both agree on the metrics. Use your new bonus plan for just one year, so in subsequent years you can improve the requirements as you discover and fine tune what’s necessary to achieve the results you are looking for.

Give Regular Reviews. Make the reviews more frequent in the beginning to avoid the formation of bad habits or misconceptions. Always come back to the principles. Always remind the candidate about the importance of sales, growth, and profitability. Go over the decisions they have made, validate the correct ones and offer advice on the ones that need improvement.

Delegation is an imperfect art, but you can mitigate the risk of failure by looking for the attributes in others that will give you confidence and peace of mind. You must train your candidates on the process knowledge and operating principles necessary to take on the responsibilities involved. Then you must give them clear goals and regular reviews – and let them do it their way.

We like to say, “When the cement is wet, you can move it with a trowel. When it gets hard, you’ll need a jackhammer.” So, overkill on orientation, make sure they know where the money comes from (sales!), and confirm that your candidate thoroughly understands the principles that will guide their decision making. Then accept the inevitability that they will make mistakes, and they will make decisions that will be different that yours. Some of those decisions may even be better!

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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Are Your Company Values Shared by Your Customers and Employees?

Michael Houlihan & Bonnie Harvey — Thu, 23 Feb 2017 18:00:07 +0000

You can’t enter a reception lobby of any established company these days without seeing a plaque on the wall that says “Company Core Values.” This is the company’s way of announcing to vendors, employees, and customers the principles, ethics, and morals for which the company stands. Terms like honesty, integrity and morality are common. Some companies get more specific and talk about treating people equally, being a good neighbor, or even making the world a better place. But today’s customers and employees are looking for specifics that can help them justify an association with your company.

Most companies want to keep their core values statement as politically neutral as possible. They consider “political” issues those that have been politicized, even if they are more a matter of survival and security. For instance, a company may use a term like “fairness” but not take a public stand on massive deportation, even though they have employees whose families would be impacted. They want to play it “safe.”

Companies may use terms like “integrity” but have a huge carbon footprint. Or they may say they are an “environmentally conscious” company, but their product comes in a single-use plastic container. Is it “ethical” to damage the environment to make a buck? At some point your company may be called upon to take a public stand. You don’t want to be put to the test trying to justify your apparent two-faced stance.

When we were building the Barefoot Wine brand, we decided to support several non-profit conservation groups that were, at the time, considered to be radicals with intentions to damage the economy. They included The Surfrider Foundation that was cleaning beaches and the ocean, The League to Save Lake Tahoe that was keeping pollution out of the lake, the Mono Lake Committee that was supporting the restoration of Mono Lake and the Mono Basin, which meant reducing water consumption in the greater L.A. Metro.

We were advised against “taking sides” on these “political issues.” We were admonished that people who made their money polluting and destroying the environment wouldn’t buy our brand if we took such a stand. In 1990 during the AIDS crisis we came out in favor of LGBT rights. Again, we were admonished not to take sides on such a “political” issue.

Turns out we were on the right side of history, but also we gained a big advantage in the marketplace with these marginalized groups. They saw us as early supporters and as a result, they became loyal customers and advocates. Was it risky? Yes. Did we suffer some push back? You bet! But the detractors eventually became supporters as they “evolved” and became better educated over time. And for us, as a new product, we needed customers even if it meant that some people disagreed with our stance. The one’s who agreed created our solid customer base.

Today, when you realize that you are dependent on selling your products to folks who are being marginalized by race, religion, or sexual preference, can you really afford to remain silent and play it safe? Is your company’s silence on these issues “ethical?” Is it even good business?

It’s time for companies to takes another look at those “values” they have hanging in the reception area. It is time for companies to take a stand and perform according to their values, rather than merely stating them on a plaque. Their customers are looking more closely now to justify their spending choices with companies that share their values. And employees are concerned about the real values demonstrated by the company that gives them their paychecks.

It’s time for companies to build a strong and loyal customer base by taking a stand on the issues that affect their customers and employees. Why risk losing business with corporate silence to a competitor who sees the advantage of speaking out?

Who We Are

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

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5 Key Elements of Productive Business Relationships

Michael Houlihan & Bonnie Harvey — Thu, 08 Oct 2015 17:00:39 +0000

As you conduct your business, you will find a myriad of folks you will interact with, and their cooperation and support are crucial to your success. Simply having a killer product at an unbeatable price just isn’t good enough to guarantee success. You must gain the trust of everyone you do business with whether they are a buyer or a supplier. Here are some essential elements of business relationship building that worked for us:

Time: For years we called on a big buyer who never gave us an order. But when he finally did buy, he bought big! We asked why he hesitated, and he said he had to get to know us first. He said our persistence proved we were dependable! When we asked a supplier for a higher credit limit they initially said no. But after years of sharing our plans with them quarterly, generally making timely payments, and calling in advance when we were late with a plan to bring us up to date, they dramatically increased our credit. Time is the ingredient that turns an acquaintance into a trusting supplier or buyer who will work with you to help grow your business.

Integrity. Do what you say you are going to do. Show up when you say you are going to. Honor your pricing and delivery dates, even when it hurts. Be reliable. Remember, you are judged by your behavior and that behavior can make the difference between business as usual or a growing business. Your buyers and creditors want to trust you. They make money when you are dependable, so give them no reason to worry about your company. Eventually we had buyers who said, “Keep me in stock on your products and let me know when you want to promote them.” That relationship was built on integrity.

Empathy. Put yourself in your customers’ and suppliers’ shoes. Find out what is important to them. From your buyers, find out the products and suppliers they like and why, and the ones they don’t and why. From your suppliers, understand their concerns extending you credit. Have their interest at heart. Demonstrate this with suggestions, products, and the kind of dependability that puts their fears at ease. If you show that you are concerned about their needs, sooner or later you will find an opportunity to provide them with a solution that solves their concerns – and yours!

Resolution. When there’s a problem, solve it quickly and in a way that makes the offended party whole. Then show them how you will prevent the problem from reoccurring. Remember, you are judged more by what you do when you’re “bad” than what you do when you’re “good.” So go beyond just apologizing and “make it good.” Make up for the time and hassle you caused, even if it costs you to do so. That will impress them more than a hundred great performances where everything went smoothly.

Loyalty. Give special treatment to the buyers and suppliers who took a chance on you and your product. Think twice before making a move that may hurt anyone’s business with whom you have been working with for years. Remember, they helped you and were expecting to benefit by your growth and success. When suppliers and buyers help you get off the ground, look for a ways to keeps your relationship strong, and give them your loyalty.

Sure, there’s more but these are the deal breakers when they are missing, and they cement the relationship when they are followed. Building relationships is the most important part of successful business. Take the time and show them what you are made of. It doesn’t cost, it pays!

Who We Are

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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Integrity Trumps Everything

Michael Houlihan & Bonnie Harvey — Sat, 19 Jul 2014 18:30:50 +0000

We can’t have a cop on every corner or a regulator in every office. At some point we must rely on the people we hire, do business with, and buy products or services from. When we cannot depend on on these people, we look to terminate the relationship and search for alternatives. It’s only human nature. We need a stable, dependable platform that we can rely upon to build any relationship.

Aspiring entrepreneurs often ask us what the most important factor is in building a successful business. They ask, “How can I keep and grow my customer base? Is it cornering a narrow niche where you’re the only game in town? Is it providing outstanding value for money? Is it a slick package and a compelling slogan? Is it a cute and memorable logo?”

It’s certainly all those things, but one factor stands out above all else. It is the deal breaker when it’s missing and the glue that bonds customers to your company when it’s demonstrated. It’s doing what you say or imply you are going to do, and what you are expected to do. It’s meeting deadlines, covering bases, and looking out for your customer. It living up to your warranties and solving customer problems with your product or service. It’s called integrity.

And what happens when you make a mistake that hurts your customer? You immediately admit to it and make amends. You show them how you learned from the mistake and what steps you have taken to prevent its reoccurrence. We often say, “People don’t remember how you do when things go smoothly but how you do when times are tough!”

Yes, it can be costly to live up to your promises. Once we had to write a check for $5,000 to a major supermarket because we made a mistake on a back label that was scanning through its cash registers at half the price than it should have. The buyer was unaware of the mistake and what it was costing him. He was surprised that we brought it to his attention and instantly made it right. He was reassured when we showed him how it happened and how it would never happen again. At that point, he knew he could trust us. Soon after, he expanded our line in all his stores.

We’ve learned that normal inadequacies, weaknesses, and imperfections are more easily forgiven when we are reliable. It is the most highly valued attribute in business. Sometimes our quotes to clients were too low, but we honored those quotes at a loss to us. Why? Because we said we would and our customer expected it. Our word is our bond.

Through this we learned the importance of understanding our customers’ expectations and all the hidden costs that will be expected of us, and took all this into account before we made our quotes.

The same thing goes with employment. If your boss finds you to be dependable and reliable, he or she will be more likely to tolerate a slower learning curve or the occasional foul-up. When we hire people the first thing we look for is integrity. We know we can generally teach them the skills they lack – if we can trust them.

When we hire a service or buy a product we look for the same quality. We know there are going to be mishaps but we want to know how a business has treated their customers in the past. What does their customer service look like? Do they honor their guarantees? Do they deliver on time? Are they reliable?

When building a relationship, integrity trumps everything!

Who We Are

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

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Successful Hiring takes Preparation, Permission and Patience

Michael Houlihan & Bonnie Harvey — Sat, 14 Jul 2012 22:50:59 +0000

No matter what business you think you are in, you wind up in the personnel management business. Your first hires will require a great deal of your time and energy with no guarantees. Your way may conflict with their previous way of doing things.

For the most part, great employees are not found, they’re made. In order to delegate and allow your company to grow, you really have no choice.

All this takes time, energy, preparation and lots of patience, but by working together in concert, you can see wonders.

1. Good Seed. Start with people who demonstrate a high degree of integrity, take responsibility for their own behavior and have a history of long-term commitment. They should be willing to learn and extrapolate conceptual ideas and apply them to new situations. A good way to test this is to give the applicant a verbal run down of the job, the company’s challenges and your expectations for the position. Then, have them send you a one-page summary on a deadline. This will tell you volumes.

2. Good Ground. Make sure their job is clearly defined in writing and explains how your products and services produce the income to pay their salary, bonus and benefits. We used to give our people a “Money Map”. It started with the consumer and worked its way back through distribution, production, and all the payables to finally get to their check. This gave them respect for how and where the money came from – the customer, of course.

3. Care. You must inspect what you expect, especially in the first year. Once you are convinced you have “good seed” it’s worth your while to regularly spend time with them answering questions and mentoring. Listen to what’s behind their questions to discover what they really need to excel in their new position.

4. Light and Space. Give them permission to make mistakes. That’s what allows them to develop into the independent decision makers you need to confidently delegate. To “make those mistakes right,” have them write down what needs to be done to prevent those mistakes in the future. Have them make new polices, procedures, checklists, sign-offs, or whatever, but they have to document everything. Consider rewriting their job description to fit their real skill set.

5. Nutrients. Give them the training they need, in person and in writing. If a document doesn’t exist, have them write it. Create a mini manual for every job with the growing list of frequently asked questions and as many charts and graphs as are necessary to depict processes, relationships and decisions. Provide outside training with conferences, or field time with sales or production staff. The more they understand your total operation, the faster they will become invaluable.

6. Time. How much time you give them before they “get it” really depends on the position, their ability to learn, and how much faith you have in them personally. Some folks take longer but “get it” at a core level. Others may learn a specific process quickly, but miss the big picture. So it’s a judgment call based on your assessment of their progress and conceptual understandings, and the preparation, time and energy you have put in.

Even if you do these essentials, there’s no guarantee of success, but you will be much more likely to succeed. To grow those new hires into fruitful producers it takes preparation, permission and patience.

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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