Problem solving | The Barefoot Spirit

5 Principles For Solving Problems

Michael Houlihan & Bonnie Harvey — Tue, 22 Nov 2016 16:22:09 +0000

When we took on the building of the Barefoot Wine brand, we really didn’t understand the problems we would have to overcome to be successful.

We had no idea how long it would take, the opposition we would face, or the enormous hurdles we had to clear in compliance, distribution, and personnel management.

Every day there were new fires that had to be put out. Every day there were unexpected bills hungry for bucks. And every roadblock challenged our very approach to problem solving.

After a while, we began to develop actual problem-solving principles that gave us structure and a set of standards we would apply to future problems. As we solved problem after problem, we slowly improved our approach to problem solving itself.

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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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Problem Solving Barefoot Spirit Style

Michael Houlihan & Bonnie Harvey — Sat, 25 Jan 2014 19:34:34 +0000

Entrepreneurs learn to eat problems for breakfast. It seems like there is an unending onslaught of daily challenges starting, growing, and keeping any new venture afloat. As soon as one is solved, another one pops up just like the arcade game whack-a-mole. If it’s not lack of capital, it’s access to market. If it’s not a personnel situation, it’s being discontinued by a big buyer.

When we speak to colleges of entrepreneurship, students often ask us, “How do you handle problems?” Well, we don’t have all the answers but we do have a proven formula for successfully staying afloat. Here are seven tips we use to solve any problem.

1 Relax! That’s right, chill. Getting all excited and freaked out can actually blind you to the solution. You need a calm demeanor to allow your eyes and ears to communicate with your brain and give it some time to think about the problem from all angles.

2 Blast off! Take the 10,000-foot view. Don’t just look at what you think the problem is, look at the bigger picture. You may be surprised to discover relationships that can give you clues to the solution. You may even discover solutions you couldn’t see when you were up close and personal with the problem.

3 Take Inventory! Just like when you run aground on a remote island, see what you’ve got in the boat, explore the island, and find out what you can use. Your resources may not be evident at first, so spend some time looking at everything you can utilize, including goods, friends, suppliers, and customers. Don’t forget your own people as they are often the source of solutions you would have never thought of.

4 Have Fun! Yes, make a game out of it. Assume there is a solution and the challenge is to put the pieces together like a big puzzle. Make sure to identify as many pieces as possible, and keep looking for more. Ask for help. Make a list. See how the pieces relate to each other.

5 Be Elegant! Many times the solution is a simple one that solves more than one problem. So get all your other problems out there on the table as well. The elegant solution is sometimes the best statement of the problem. So constantly restate the problem from different perspectives.

6 Find Allies! Who else is affected by the problem and stands to gain by its solution? Identify your allies. Then discuss your problem with them. You might be surprised to find out that they will be more likely to make accommodations on your behalf when they see how they will benefit. Look for the Win-Win solution!

7 Let it Simmer! The best solutions pop up when you least expect them. Even when you are not actively searching for a solution, “the little grey cells,” as Agatha Christie’s famous detective Hercule Poirot says, “are working all the time; they see everything.” So give them a lot to look at. Then take a break, get away from it all and let it simmer.

These are the steps we have found that consistently result in the best, and many times out-of-the-box solutions. Think of problems as challenges. They are mysteries and puzzles that you, your people, and your allies get to solve. Know that the answers are there. Discover the clues and wait for the elegant solution to reveal itself. And remember to have fun!

Who We Are

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

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Problem Solving, Barefoot Spirit Style

Michael Houlihan & Bonnie Harvey — Sun, 20 Oct 2013 00:57:25 +0000

There are many approaches to problem solving, but the one we like best requires a multifaceted view of the situation. Sometimes the key to the solution is in the best definition of the problem. Having just one point of view, or relying on your initial impression, can actually blind you to the solution.

The ideal solution is more likely achieved when the problem is viewed in the context of the bigger picture. For instance, many times we found solutions that solved more than the one problem that we were originally focused on. After this happened time after time, we decided to deconstruct this phenomenon. Instead of working forwards, we worked backwards. We started by imagining the problem as already solved, and asked ourselves what other issues would be improved if the original problem was solved.

We once received a recorded message on our 800 number from a concerned customer. She wanted to know, “Why can’t I get a full measure when I buy your wine? All the fill lines are at different levels; some are high and some are low!” When we played the recording for our production people, they said, “Well, of course the fill lines are different. For one thing, you need an air gap so the wine can expand with the varying temperature and barometric pressure, and for another you need space to add the nitrogen so the wine won’t oxidize. And besides, all the other wines have the same problem!”

With our motto,“the customer is always right,” we called her back and said, “Of course you deserve a full measure! Thanks for bringing this to our attention. We are working on solving this problem right now!”

Later that week we were at a fundraiser and Bonnie commented on how much she liked a particular woman’s outfit. She said, “I really like that midi-length skirt.” Michael said, “Is it the color or fabric, the style or what?” “No,” she said, “I like that it covers the knees which better shows off the calves of her legs!” Michael retorted, “Covers the knees! That’s it! We’ll cover the fill line with a longer closure!”

It seemed simple enough. No matter what the temperature or atmospheric pressure, with a longer closure (or “foil”), the fill line would be covered. It took over two years to get the mechanical technology working properly to actually do it effectively on the bottling line. But, voila! No fill line visible! The customer always get a “full measure.”

Interestingly, another problem was solved in the process. Now that the fill line was no longer visible, we reduced the number of horizontal lines on our wine package that had rather chopped it up. This gave our product a cleaner look than the other brands on the retail shelf vying for the consumer’s attention. All of a sudden, our package looked distinctive, as it did not have the choppy lines that all the other wines had.

We appreciated the comments of the “complaining” customer. We knew that for every one person who complained there were hundreds who wouldn’t take the time to voice their concerns. She made us aware of the perception that the fills were not consistent. So we committed ourselves to “fixing” it, and in the process, improved not just our packaging image, but our marketing image as well.

We also believed there was a solution, and studied the problem from all sides. Once we saw all the parts, we waited for the inspiration we believed would come, even from the most unlikely places.

Who We Are

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

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Build Your Business using Guiding Principles – Part 2

Michael Houlihan & Bonnie Harvey — Sun, 10 Feb 2013 03:08:44 +0000

Ever wonder what goes through a creditor’s mind when they decide whether or not to give you credit? Creditors, like suppliers, vendors, and bankers who extend credit to you, are a bit anxious and for good reason. They don’t know how you’ll behave when times are tough. They don’t know if you will be a “beg pay” or worse. On the other hand, they want to increase their business with you, so they hope you will succeed and buy more of their products and services. When you grow, they grow.

How can you turn this apparent dichotomy around? How can you put them at ease with your account to get better terms, extended credit, and get real cooperation in your mutual growth? By putting yourself in their shoes, you can discover how your basic attitude toward creditors affects your credit. Here then, is our second question to help you discover successful guiding business principles:

2. Would you extend credit to yourself? Would you extend credit to a customer who falls behind in their payments, and is difficult to reach? Or would you prefer one who sees you as a strategic business partner, keeps you up to date, shares challenges and opportunities, and understands that you have bills to pay too?

Here are 4 ways we extended our credit when we were behind in our payments:

Strategic Alliances. We identified the vendors, suppliers and services our business depended on. We looked for alliances with other small start-ups and market climbers that needed our business to grow as well. Many were willing to “make an investment” in our business with favorable terms to help us get started and grow. Of course, they wanted to see some seasoning and loyalty as well, but identifying those strategic allies was critical to our success.

Quarterly Meetings. We took the time to meet with our creditors quarterly, especially during the first few years, and allay their anxiety. We showed them our plans, and how and when we expected to see return on our investment. We showed them how we were making adjustments in the ever-changing marketplace. We told them our challenges and goals, and took them in as partners.

Advance Warnings. As soon as we knew we were going to be late on a payment, we called them. We told them that we realized that they too had bills to pay and we wanted to give them advance notice so they could make adjustments to save their credit. Then we gave them a payment plan based on our receivables that would bring our account up to date. Guess what? Several of them said they not only appreciated the advance notice and plan, but also extended our credit on the spot. They said we were the kind of customers they wanted!

Pop-Up Opportunities. Sometimes we would get an opportunity we didn’t have the funds to take advantage of. Suddenly a buyer wanted a big load that pushed our inventory and credit to the breaking point. That’s when we picked up the phone and laid out the scenario for our creditors, suppliers, and vendors. We asked them all for help. Depending on the deal, they often surprised us with cooperative teamwork to make it happen.

So wouldn’t you rather extend credit to a customer who is informative, transparent, and proactive? Your creditors would too, so adjust your business philosophy to be that kind of a customer.

As we continue to explore guiding principles, we will ask two additional questions: How would you like selling to yourself, and how would you like buying from yourself?

Who We Are

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

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Business Beware Radio Show Interview

Michael Houlihan & Bonnie Harvey — Wed, 19 Dec 2012 09:22:29 +0000

Ashley Bodi, host of the Business Beware Radio Show, interviewed Michael about the challenges and lessons learned along the Barefoot Wine journey. Go here to listen to the interview!

Who We Are

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

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Timelines Are the Lifelines of Customer Satisfaction

Michael Houlihan & Bonnie Harvey — Sun, 11 Nov 2012 01:31:37 +0000

Outside contracted services do things for us that are beyond our skill set or are best done by a specialist. One frustration we, as customers, typically face is not knowing what is expected of us to get the most out of these services.

If you are in a service business, or even a production business, don’t just expect that your customers or clients know what is required of them. Let them know what, when and where they have to perform. Avoid time sensitive surprises and remove their anxiety with good advance information.

Mutual Expectations. Make it clear what you do and what you don’t do. Make it clear what your client or customer has to do. Even though it’s all spelled out in the contract, give them a quick reference, bullet point list of each other’s responsibilities.

Contacts and Roles. Just because you know who does each function on your side doesn’t mean they do. Send them a chart that clearly shows the chain of command and the division of specialties with names and contact info of all who will be responsible for their project.

Key Approvals. Identify the key decisions that need to be made in advance. Give them a list with a timeline of when their approval is required, and why. They may be new at this, or new to your company, which are even greater reasons to hold their hand. Your customer will feel you are easy to work with.

Timelines. Outline the process in a graphic form and give it to them at the outset. It should depict the duration and turnaround times for each step, the points at which their decision will be required, and the amount of time they have to make a decision in order to meet the deadline. Flesh it out early and update it often with real dates. Your client can then plan their vacations, trips and schedules so they will be available when needed.

Deadlines. In order to achieve the desired deadline that your customer desires, educate them about the milestones that must be achieved. When one is missed, immediately update your timeline with the new milestones and deadlines. It’s better to tell your customer the moment you know that there has been a delay. Whether caused by them or you, they will hold you responsible for any delay they are not made aware of.

Sole Responsibility. In the eyes of your customers, you are the one responsible for the outcome of the project – even when you sub out various parts of the job. Sub-contractors require your oversight, monitoring and vigilance. Understand your customers’ needs, what they want, why they want it, and what purpose they will put it to. Learn who their buyers are and how you can help increase their sales.

Put yourself in your customers’ shoes and imagine yourself as a first-time user of your own services. Then you will begin to understand what they need to give you the reputation you want.

Advance these courtesies up front with timely announcements, schedules, updates and reminders. Avoid anxiety that can taint the value of your product or service. Proactively answer your clients’ questions and concerns, and view the entire relationship as an opportunity for your company to gain and retain a satisfied customer.

Who We Are

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

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Corporate Structure Can Turn Information into Currency – Part 2

Michael Houlihan & Bonnie Harvey — Fri, 05 Oct 2012 15:49:26 +0000

Johnny Carson used the expression, “I did not know that” and brought the house down. It was his way of stating his lack of knowledge about any surprising event. The audience was also surprised and couldn’t help but laugh.

It’s no laughing matter when your staff finds out that they are out of a job because your company lost a major buyer or couldn’t solve a critical problem. But if they don’t understand the challenges, they can’t help with the solutions. If their good ideas are suppressed or the free flow of information is stopped because of politics or turf wars, the challenges your company faces can be become even greater.

Your people are your greatest assets. They all come with a brain, imagination, and a desire to better themselves. They will use those resources to the benefit of your company if you let them.

Here are some effective practices we found that engaged our people to help us solve our challenges and keep the information free flowing:

1. Need-to-Grow Trumps Need-to-Know. We told our entire staff our major challenges and asked for their suggestions. Their outsider’s view in many cases provided fresh, out-of-the-box solutions. What if they didn’t know? We would have lost those insights.

2. De-Specialization. Every year we asked each employee what they would like to do within our company. We put our various job requirements on the table and they were all picked up, but not necessarily by the same folks who had them the previous year. We found that people whose job fit their skills and desires out-performed strict job specializations.

3. Performance-Based Compensation trumps position, tenure, or attendance-based compensation. Once all our people were getting bonuses on sales it became clear to them that the money came from the customer, and not the “company.” Sharing information and ideas was good for everybody’s paycheck.

4. Out-sourcing. Rather than trying to do everything in house, we would out-source for as much as possible. We paid only for the products and services that were to our specifications. Our people managed outsourced companies, which had the net effect of keeping us smaller and less restrictive. It reduced the typical company pyramids and enabled people to communicate directly with the decision-makers in our company, allowing more good ideas to reach top management.

5. Public Acknowledgement. We would “catch” someone doing something beneficial to the entire staff and, much to the chagrin of the lawyers, publicly acknowledge them in writing. We encouraged everyone to come forward with new ideas and for that they would gain appreciation. This practice also built a strong company culture since everyone understood and appreciated how other folks in the organization were improving their job security and increasing their paychecks!

Of course, all these ideas may not work in every situation, but it’s the spirit behind them that can help any business. Respecting the intellect of your human resources, giving them a financial reason to work as a team, and sharing your challenges can avoid hardening of the information arteries and prevent them from saying “I did not know that.”

Who We Are

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

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The Advantages of Being a Small Start-Up – Part 2

Michael Houlihan & Bonnie Harvey — Tue, 24 Jan 2012 03:35:06 +0000

This is the second installment in a four-part series designed to encourage small start-ups by recognizing some of their inherent advantages.

Small start-ups face a myriad of challenges. They are undercapitalized, unproven and have no market traction. They are up against the status quo that will use its established power and influence in the marketplace to suppress any new challengers. Buyers are reticent to take a risk on anything new or unproven.

The big boys have might and muscle, but there are still several advantages the little guys have that can move them ahead:

6. Being New. The small start-up has not yet established its direction and can turn on a dime. This advantage affects everything from plans to budgets, from design to being responsive to consumer feedback. Flexibility is a big advantage when it comes to satisfying your customer and improving your product. The big corps are well established with set ways of doing things that can bog them down.

7. Closer to the Ground. If you are the little guy, survival is dependent on having your ear to the ground and in most cases, your feet as well. Starting out requires a lot of hand-selling and “missionary” work. You are painfully aware of what needs to be done in the market place. Because it’s your company, you deal with your customers up close and personal on a daily basis. You can’t afford to be isolated and insulated. You don’t have MBAs and focus groups to rely on. You rely on yourself.

8. Faster Communication. Information can cross departmental lines easily in a small start-up. For one thing, there are fewer departments. For another, staying in business is more important than “going through channels,” which can be a maze of department heads, divisions, silos, and, if you’re lucky, ending with the intended recipient. The big company keeps order by installing informational gatekeepers. They can stop, change, or delay a critical message based on their perception of priorities, and, too often, job security.

9. Out-of-the-Box Thinking. Because the small companies are usually under financed, they are always scrambling for inexpensive and effective ideas to stay in business. This apparent financial hardship forces you to discover and employ unorthodox ideas, strategies, and tactics that the big guys wouldn’t dream of. They don’t have to. In a small company, cost-saving ideas, customer retention, and marketing concepts can come from anywhere. The big guys tend to want ideas to originate from their proper divisions, which can miss or kill some gems in an effort to defend precious turf.

10. Better Risk Tolerance. Just starting something new is a big risk, and most start-ups don’t make it. Because they are desperate to survive and have less at stake, they are more risk tolerant than the established companies. Small companies tend to tell their legal advisors what they want to do, then ask how to do it. The big guys are more risk adverse and tend to be guided by their legal advisors. Risk adversity can blind companies to new, unproven concepts.

So when you feel overwhelmed by big, established competition, remember that your flexibility and freshness can help you survive. The benefits of being a start-up give you the flexibility to grow and ultimately improve not only your own company, but also your industry.

Next time we will see how being an outsider, with enhanced concepts and simplified processes can have an advantage over an insider with simplified concepts and complicated processes.

Who We Are

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

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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.

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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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