People | The Barefoot Spirit

7 Steps to Engage Your People (And Get the Results You are Looking For)

Michael Houlihan & Bonnie Harvey — Thu, 14 Jun 2018 17:00:53 +0000

When we sold Barefoot Wine, we received the Wine Industry’s coveted Top Brand award for multiple years, sold 600,000 cases per year in 25,000 stores, were growing in all 50 states and 28 foreign countries, had no turnover for 10 years, and did it all with just 40 employees. We got tons of awards for quality, growth, and innovation.

But it wasn’t because we were so clever, in fact we made most of the big mistakes! It was because our people were engaged and empowered to make a big difference. They came up with most of the clever solutions that got us through the tough times and over the seemingly insurmountable obstacles. They did more with less, improved our policies and procedures, and used innovation to disrupt a rather stuffy industry.

At the closing talk for the C-Suite conference in San Francisco this month, Michael shared 7 of the tools we used to build an outstanding team that was engaged, empowered, and committed to the success of our business. Here is a brief summery from the top:

1. Hire Good People, Build Great People.

Hire for hustle, integrity, and enthusiasm. Look for extrapolation learners. Test their comprehension. Be prepared to redesign the job to fit the talents of each employee. On the last interview, you do all the talking. Explain the business process and why their job is essential. Then ask for a summary by 5 pm the next day.

2. Overkill on Orientation.

When the cement is wet, you can move it with a trowel. But when it gets hard, you’ll need a jackhammer! Don’t let them develop and harbor early misconceptions about how the business works, where the money comes from, and how the customer must be serviced to get the funds that go in their paychecks.

3. The Money Map

Show them a “Money Map”. Start with the community from which the initial customers emulate. Show the transactions that starts the money moving as those customers purchase goods and services that effect your business. Show all the twists and turns that the money goes through on the way to their paychecks.

4. The Two-Division Company

Give them a second graphic that shows how your company is organized with the customer on top! Then, right under that, the only people they talk to daily, your sales and customer service people (The Sales Division). Then right under that, everybody else in the company, regardless of specialty (The Sales Support Division).

5. Know the Need

Contrary to the popular Need-to-Know basis that most companies use to keep their people in the dark, practice Know-the-Need to demonstrate respect for their intelligence and commitment to your company’s success. Share your sales and marketing challenges and ask them for help. You’ll be surprised at the results!

6. Public Acknowledgement

Communicate their accomplishment in writing. Copy the entire staff. Get more of what you are praising for. Get them the respect of other staff. Send a “message” that everyone can get the same kind of top-level acknowledgment when they perform as well as the one being singled out for admiration.

7. Staff Wide Quarterly Bonus

Reward on a quarterly basis. A year is too long (They’ll forget, sand bag, or give up). A month is too impractical (Months are more subject to anomaly and it’s difficult to get the numbers together that fast). Reward everyone to build team spirit. Make it based on sales, growth, and profitability. We used a variable 401K quarterly match.

Want more details or additional suggestions? Check out our short book on the subject, aptly named, The Entrepreneurial Culture, 23 ways to Engage and Empower Your People. It worked for us. it can work for you. You may just hear them say, “I love working here!”

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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World’s Best Sale Pitch: “My Product will help you Increase Sales”

Michael Houlihan & Bonnie Harvey — Sat, 28 Jul 2012 21:50:23 +0000

We’ve spent over two decades in sales, and it’s true – nothing happens until the sale is made. We have a friend who described her sales job as “conveying the value proposition of (her) product to (her) buyers.”

There are many books written on the subject of sales, sale techniques, and best closing strategies. We’ve often said the best sales person is the “Assistant Buyer”. The key to sales success is simply to sincerely have the buyer’s best interest at heart.

When you produce a product that goes through distribution channels, or when you offer a service business to business, the funds your buyer has to buy from you came from the sale of their product or service. If you are selling direct to the consumer, you still have to recognize that they have to work for the income, one way or another, that enables them to buy your product.

Everybody who sells products or services wants to sell more. The ultimate question from your prospect is: “How does your product or service help me sell my product or service?” or “How can you help me make more money?” That’s why positioning your sales pitch as enhancing theirs is so effective.

Here are some ways your product or service can help your customer’s bottom line:

1. Reduce his overhead cost per unit sold. He has to pay rent, lights, power, insurance, staff, cleaning, etc., whether he sells your product quickly or slowly. If it’s a fast seller, his cost per sale is reduced. He improves his ROI on his capital investment, maintenance, advertising, and staffing.

2. Increase his profits with lower acquisition costs and, consequently, higher profit margins on your product. Give him a volume purchase program that enables a lower retail price and increased volume resulting in higher profits per month.

3. Make his retail environment more attractive with seasonal point of sale materials and promotional programs geared to the theme of the given holiday. Make your displays festive decorations to his retail space.

4. Increase his business with local promotions and support for neighborhood causes. Use Worthy Cause Marketing to bring in customers who have a social reason to buy your product. Let the membership of the non-profit you support know where your product is for sale in his neighborhood.

5. Sell him a product or service that makes him more attractive and more competitive to his clients or retail customers. Give him the best price in your category, or an area-wide exclusive for an introductory period.

6. Add value to his total sales package. Is there something you can sell him that makes what he’s selling more valuable, adds an extra feature or delivers another benefit – like a guarantee, excellent customer service or loyalty program? Does your product give him “green” bragging rights?

7. Improve his personnel’s efficiency by providing training, benefits or tools his staff can use to increase his sales. Help him find and keep good people.

These are just a few examples of how you can help your buyer increase profits and do his job more efficiently. When you focus on what your buyer is trying to do, you can quickly get a clue as to what you can do to help him increase his sales. Adding value to his sales efforts with your product allows him to say to his customers, “But wait, there’s more!”

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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B2B or Not to Be? That is the Question!

Michael Houlihan & Bonnie Harvey — Tue, 24 Apr 2012 20:13:01 +0000

We often hear, “Oh, we’re B2B (business-to-business), so we don’t have to worry about customers at the general public level.” The fact is, you do.

It is an erroneous assumption that B2B is somehow insulated from the source of most income, the general public. If your client goes out of business, your B2B loses that account, and you lose an income source. Of course you need to worry!

The more your company understands and assists your clients to sustain and grow their customer base, the better your chances of keeping that revenue. Don’t be the last one to find out your client is in trouble. Be proactive and help them stay healthy so you too will benefit from their success.

Here are some ways your B2B can help your client or customer:

1. Take an interest in how they make their income, including its source. Is it another business that sells to another business that eventually sells to the public? How many layers exist before reaching the end-user? Do they sell direct to the public?

2. Take an interest in their industry, including the trends that are on the rise or decline. Are your customers experiencing rapid growth, or having difficulty maintaining their market or price points? The answers to these questions can give you a big hint about how you can possibly help them.

3. Show them how to buy your products or services to best match their current needs. When they are in a growth cycle, provide them with discounted quantity purchases. When they are struggling, provide them with longer terms. By being sensitive to their needs beyond your product or service, you help them and your company succeed.

4. Provide them with information and objective feedback. Show them that you care and act like an engaged team member. Your input will be respected since they know you have an interest in their success. You may have some insight that only an outsider could have, or you may see something in the market that they may have missed.

5. Keep your eyes peeled for talent. You may have more contacts than they do, thus, you may be aware of hiring opportunities they may not know about. Find out what they are looking for and pass the word. Strong companies and strong clients are made up of strong people. It’s their most valuable resource.

6. Call for a meeting in person, if possible. Ask about their business challenges, growth, and customers. Let them know you care about their business and are interested in helping them succeed. A face-to-face will reveal lots of information that an email or phone call can never achieve. And it helps build an invaluable personal relationship.

When you think about it, there are many ways you can help your client remain viable beyond what you are selling. You will win their loyalty and increase their purchase orders by being a real team player.

No business is truly isolated and insulated from their client’s customers. As these last few years have painfully demonstrated, we are all interdependent. The more you know about your customers, the more you can help and the more your B2B will continue to be.

Who We Are

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

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