November 29, 2024

You’re the Boss Blog: Bill Courtney Offers Leadership Lessons on the Field and in Business

Bill Courtney: Lance Murphey for The New York Times Bill Courtney: “The great thing about all of this is that anybody can do it.”

Building the Team

Hiring, firing, and training in a new era.

A couple of weeks ago, I took to Twitter with the following imperative: “If you haven’t seen the film Undefeated, you should asap. @IamCoachBill is a real #leader who draws out the true #character of his players.”

I tweeted this message after watching “Undefeated,” which won the Academy Award for best documentary feature in 2011. The inspirational film takes place in Memphis and follows Bill Courtney and his Manassas Tigers high school football team through their 2009 season. It is a compelling human interest story — a school based in an impoverished part of Tennessee, where the average median income is less than $10,000, more than 70 percent of the homes don’t have a working car, and only 6 percent of the homes have a college graduate.

It is a great sports story about a football team that in the 10 years leading up to 2003 had accumulated a record of 5 wins and 95 losses and just six years later was casting an eye toward its first playoff appearance. Most important for readers of this blog, it is an extraordinary story of leadership.

Coaching football isn’t Mr. Courtney’s only accomplishment. He is a husband – celebrating his 22nd wedding anniversary this December — a father of four, and a successful entrepreneur. He started his lumber company, Classic American Hardwoods, out of his living room in 2001. Today, it employs 120 people and expects sales of approximately $40 million in 2013.

Mr. Courtney responded to my tweet. We exchanged e-mails and then had the chance to chat by phone. Here’s what I learned about his approach to building and leading a team.

Recruiting

In the film, you were shown recruiting folks at school to join the team. How did you approach recruiting?

I was always recruiting. I would be recruiting all day, every day with a smile and a pat on the back for students as they walked by in the school. If you walk in the hallways, recruiting kids, and they’ve already heard from their peers that you love the heck out of your team and help to get the best out of them, word gets around. All it takes is a sincere reaching out.

I also recruited great coaches to be on my staff. It wasn’t just me. I had nine men on my coaching staff, many of which had played big time college football. All of these guys were volunteers, but they bought into the vision of the football team and the vision for what we could do for the kids.

Practicing

What was your philosophy on practicing and training?

Kids at Manassas worked hard. I approached practice as key to our success and ran it like I run my business: coaches for different positions, organized, on time, and on schedule. The point of practice was to take the natural raw ability that we had recruited onto the team, and then teach them to be good at the fundamentals of the game – both general skills and specific positions.

Motivating

How did you get your team to work so hard?

By working hard. I really believe that. If you’re going to build an organization – a sports team, a business, or any organization, you have to figure out how to get the team members to work hard. At Manassas, the kids knew that I was running my own business, and had a family and my own kids at home, but they saw me working hard every day, volunteering at the school to be their coach. The kids on the team knew that I cared about them and worked hard for them, and as a result, they worked hard for me.

Data-driven decisions versus intuition

In the movie, you are shown watching a lot of game film, using data to inform your strategy. Yet, in one game, you made a spur-of-the-moment decision to put a different player, Chavis, in on defense. He was clearly a talented athlete, but he had never played the position before. How do you balance between data-driven decisions and intuition?

We do that every day in business. We’ve got systems, policies and procedures in place to make decisions based on information that we have gathered, but sometimes you have to make decisions that aren’t in the playbook. You go in with one plan, but you better have backup plans and instinct. The truth is, you’re not risking much when you make a decision with instinct, because what was currently happening wasn’t working. It also comes down to knowing the talent on your team. Players win games, not coaches. I knew Chavis, and I knew he would do what I asked him to do, and that he would win the game for us. Talent would prevail.

Doing something meaningful

One of the most moving parts of the film was when you arranged a sponsor for Money, one of the seniors on the team, so that his entire college bill would be paid. How did you think about doing things that would make such a big impact on the lives of these students?

When I first went to Manassas, long before the cameras were there, I went there to coach football. After a year, it became obvious that there was so much more to do than coach. As time wore on, and as the relationships became deeper, we recognized the opportunity to make a positive impact on kids’ lives.

Mr. Courtney stopped coaching at Manassas so he could spend more time with his family and at his company. He applied the same leadership skills to Classic American Hardwoods that he did to football, and his business has thrived. He had started the company after spending four years at another lumber company, where he rose to become executive vice president of sales. He realized, however, that he needed to start his own business.

Why do you think your company was a success?

Honestly, I tell everybody this, the exact same fundamentals that you use to build a football team are the very same things that enable you to have success in business:

  1. Act with character and integrity.
  2. Out-work the competition.
  3. Understand that sometimes you are going to get knocked down and just get back up.
  4. It’s not whether or not you make mistakes – you will – it’s how you handle them.
  5. Surround yourself with like-minded, hard-working people. Experience doesn’t matter. Character and hard work matters.
  6. Treat people well. Give them the help, tools and training that they need. Then get out of their way and let them grow.

Your business success is even more amazing in the context of raising a family of four and coaching the Manassas team at the same time. How were you able to do it all?

I know I’m repeating myself, but I cannot emphasize enough how important hard work is. In 2003, when the company was only two years old, and I started coaching the Manassas team, my schedule looked like this:

5 a.m.: at the office
2:45 p.m.: leave for practice
3-5:30: practice at Manassas
5:30: leave to attend my kids’ practice
6:30-8:30: kids’ practice
9:00: dinner
11:00: go to bed

Do it all again the next day. There’s no silver bullet. It is hard work. The great thing about all of this is that anybody can do it. To achieve success in America, you don’t need to be a Rhodes scholar or have a Harvard degree, great connections, or tons of money. You just have to be willing to work really, really hard. Isn’t that great?

Bryan Burkhart is a founder of H.Bloom. You can follow him on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/04/30/bill-courtney-offers-leadership-lessons-on-the-field-and-in-business/?partner=rss&emc=rss

You’re the Boss Blog: This Week in Small Business: 6,297 Chinese Restaurants

Dashboard

A weekly roundup of small-business developments.

What’s affecting me, my clients and other small-business owners this week.

Must Reads

Mark Suster shares a favorite story about an entrepreneur. Jason Zweig maintains there are five compelling reasons the United States is a hot emerging market.

The Economy: Increased Tonnage

Growth fails to meet expectations. Orders for durable goods plunged 5.7 percent in March and recent factory data is indicating slowing growth. Charles Hugh-Smith laments the decline of small business. New residential home sales (pdf) increased in March, and there has been positive momentum for architecture billings. But existing home sales fell unexpectedly. Trucking tonnage increased again, but vehicle miles driven hit another post-crisis low. The Federal Reserve Bank of Richmond said manufacturing activity pulled back in its district and Kansas City reported the same in its region (pdf). One study said that small-business owners remained mixed on the state of the economy and their growth outlook. Here’s an updated state of the economy.

Washington: Online Sales Tax

The Senate votes for an online sales tax, but eBay says it is unfair to some small businesses — and it may be too late for others. A small but growing number of American corporations, operating in businesses as diverse as private prisons, billboards and casinos, are making an aggressive move to reduce — or even eliminate — their federal tax bills. A survey from Sage finds small businesses struggling with the complexity of tax regulations and code. Republicans advance a bill to prepare for another debt-ceiling fight. The sequestration budget cuts cause air travel delays and the furlough of 89,000 Internal Revenue Service employees (but the Justice Department is fine). A Chinese mother sues the Federal Reserve over her shrinking cash (this infographic explains how the central banking system really works). The economy will get a boost in July when the government recalculates gross domestic product. The president celebrates young inventors at a White House science fair, and a Pew study says American teenagers are doing better on science tests than the public realizes.

Entrepreneurs: Lessons Learned

Brian Cauble shares 50 lessons he’s learned as an entrepreneur, including: “If you don’t figure out your sales, you will fail.” Rosie Percy says self-employment is on the rise. Saint Louis University’s Center for Entrepreneurship names its first “diamond in the rough” student entrepreneur, and the Western Pennsylvania Small Business Administration names its (reluctant) young entrepreneur of the year. The Wharton Business Plan Competition went to a pair of M.B.A. students who created Zenkars, an online used car dealer that aims to connect wholesale buyers with individual customers, and the grand prize winner of the University of California, Berkeley, Start-up Competition was Resido Medical, which has developed a small wearable device for patients with essential tremor.

Management: Profit by Quitting

Joe Taylor Jr. reports on the secrets of century-old businesses. Lisa J. Jackson suggests celebrating when you hit goals and milestones. Greg Digneo argues that quitting may be the most profitable thing you do this year. A UPS Store owner explains how her business works. Jason Fell explains how to be more like Steve Jobs. A new book says nice companies finish first. A Portland rap legend, Cool Nutz, discusses the secrets of his success. A manufacturing chief executive shares the seven skills of a “lean leader.” Here are 10 quotes that inspire business leaders, and these 27 successful people reveal the things they can’t live without.

Finance: Shake It

Greg Kumparak explains what is needed to raise a million bucks. A Kickstarter project aims to raise $155,000 for a cellphone that can be recharged by shaking it, and another company gets $5.9 million to create a “Kickstarter for people.” Investors sink $30 million into a 3-D printing company. Bryan Goldberg feels some chief executives like to raise money just for the sake of it. Milton Berle’s joke files go up for sale. The 15-year fixed mortgage rate hits a low. American Express Open introduces a tool to help small businesses simplify expense tracking. A financing firm announces an $82 million credit line to finance small businesses. Boston Beer expands its microlending and coaching program. Here is why big corporations are supporting the entrepreneurial ecosystem.

People: 6,297 Chinese Restaurants

A National Public Radio report explains how young adults with autism can thrive in high-tech jobs. These are the worst jobs of 2013. Adriana Gardella’s business group debates whether employees can be rehabilitated (even if they bite people?). Martin Zabell reports on the aftermath of Hurricane Sandy on small businesses, and Sarah Green says much has been learned about communicating with employees in an emergency. Miranda Marquit writes about ways to protect yourself when you fire someone. A study finds more than two-thirds of small-business owners support increasing the federal minimum wage, and a Staples survey reveals that the boss is probably not the most trusted person in your company. After a bad quarter, I.B.M.’s chief executive urges employees to act faster. This guy has eaten in 6,297 Chinese restaurants in the United States and Canada.

Going Green: Electric Cars

Earth Day is celebrated, but the government’s investment in electric cars is not doing well — even in the country’s top 10 green car markets. The world’s “greenest commercial building” opens in Seattle. An energy company introduces a program in Ohio that offers electricity and natural gas to small businesses at a fixed rate. Office Depot reports that 20 percent of small and midsize businesses are greener than last year.

Around the Country: Luring Companies

Rick Perry tries to lure companies from Illinois. A national conference aims to help female veterans accelerate the growth of their small businesses and create jobs. Meanwhile, some women are cashing in on the North Dakota oil boom. Las Vegas taxis bilked passengers out of $15 million last year. Many Americans are breathing cleaner air. Catherine Rampell says New York may be more affordable than you think. A guy rides the tallest bike in Los Angeles, and NASA announces its 2012 small-business industry awards.

Around the World: No Triple Dip

World steel output ticked up during March, but Markos Kaminis is alarmed by the economic data from overseas. German private sector output declined for the first time since November but Britain escaped a triple-dip recession. Chinese stocks slumped the most in weeks as manufacturing slowed. This is how much food $5 buys around the world. A provider of language tools reports that business English proficiency scores have increased strikingly. Adam Dawood thinks Pakistan may be the next frontier for entrepreneurs: “The Internet industry in Pakistan is at an extremely exciting point, and the outlook for local entrepreneurs and venture capitalists is strong in the mid- to long run.” These are five global trading tips for small businesses.

Marketing: No Tricks

Kristin Zaslavsky warns that when sending e-mails not to “trick your clients or potential clients.” Brian Carroll lists four steps for sending e-mails that 85 percent of business-to-business businesses probably are not taking. This is how to use webinars as an e-marketing tool. Ben Bland has a few thoughts on how to write good proposals for tendered projects. Doug Kessler reveals four truths about his content-marketing clients, including “too many content-marketing clients don’t understand their own business.” There are eight types of content every business should consider publishing and five branding mistakes that will cripple your business. Vincenzo Ravina shares seven tips for generating leads at a trade show or conference — without attending. Nicole Crozier explains why marketing is your most important system. Shelly Kramer explains how smartphones can maximize sales, and here is what shoppers really want from mobile. This is why baseball is awesome.

Social Media: Quitting Facebook

A hacked Twitter post sinks the stock market, but new supercomputers could generate warnings of future impending crashes. Here are 25 social media influencers who should not be ignored. Publishing the right post at the right time is one of Brian Michaelson’s four tips to help engage Facebook users. Tina Hamilton explains how a small business can find love on Yelp!, and Harrison Ford refuses to answer questions about “Star Wars.” Sarah McLaughlin gives advice for making your blog post interesting regardless of the subject. A couple of Emerson College students use Facebook to raise $500,000 for a Boston Marathon charity. Ronni Ann Hall is trying to free herself from Facebook.

Technology: Kill the Password

These five Android apps will lessen the stress of the daily commute. These 26 mobile apps will improve your business and networking. These eight must-have apps will run your small business anywhere, and these are the top five software programs for a small business. The “Microsoft Princess” will make an appearance at a conference in May. (Will she make the “start” button magically reappear?). A study from Carbonite finds most small-business owners are not taking full advantage of the cloud. Google joins a PayPal-backed effort to kill the password. These are the new features of the Samsung Galaxy S4. A cool magnetic putty can absorb objects, and laser sensors can automatically fertilize the crops that need it most. This photo app will make your wife or husband look gorgeous. Contactually releases a new version of its powerful relationship-building application. And you all know General Petersen from I.T., right?

Tweet of the Week

@DJRotaryRachel30m: I refuse to celebrate Earth Day until Wind Fire are recognized.

The Week’s Best Quotes

David Wessel shares seven lessons for fixing an economy, including: “A financial crisis is about economics, not morality. There’s a temptation to preach after so many people make so many mistakes: Avoid the sins that created the crisis. Punish the perpetrators. Pursue the economic rectitude of thrift. In the long run, that’s surely right. But in the immediate aftermath of a financial mega-shock, if everyone simultaneously reduces debts, the economy will keep contracting. There’s a strong case for encouraging borrowing and spending in the immediate aftermath of a financial crisis and for temporarily putting aside the fear that doing so might lead people to sin more in the future.”

Charles Kane says that the best place to introduce your start-up is either in Silicon Valley or the Boston area: “They remain the hottest centers of entrepreneurship and venture capital, so you’ll be in an inherently supportive ecosystem where entrepreneurship is as natural as drinking water.”

This Week’s Question: Do you think you understand your own business?

Gene Marks owns the Marks Group, a Bala Cynwyd, Pa., consulting firm that helps clients with customer relationship management. You can follow him on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/04/29/this-week-in-small-business-6297-chinese-restaurants/?partner=rss&emc=rss

You’re the Boss Blog: Paid Sick Leave Has Some Business Owners Feeling Ill

The Agenda

How small-business issues are shaping politics and policy.

When the advocates at Family Forward Oregon sought to muster support among businesses in Portland for a local paid sick leave ordinance, they found a sympathetic ear in Tony Fuentes. Mr. Fuentes and his wife operate Milagros Boutique, which sells cloth diapers and clothing for babies and children on Portland’s northeast side.

“The idea that 80 percent of low-income workers don’t get a minute of protected time was not in line with my view of the country, or of the social compact,” Mr. Fuentes said, who testified in favor of the bill at a council hearing.

But to judge by the efforts of local business organizations in Portland and in New York City, which is poised to pass its own paid sick leave law, as well as from interviews with a handful of businesses, the more common response is hostility, or at least wariness.

Portland’s new law, which passed the City Council in March, follows a template set by a handful of other cities, and Connecticut, in the last seven years. (In Philadelphia, a similar proposal could not overcome a veto by the mayor.) Businesses with at least six employees have to provide one hour of paid sick leave for every 30 hours an employee works, up to 40 hours a year, as well as protect the employee’s job. Companies with five or fewer employees must offer the same amount of unpaid, job-protected time off. An employee must work at least 240 hours before becoming eligible. In Portland, the law takes effect in January.

Mr. Fuentes said that he already offered paid time off to all of his employees (the number fluctuates between five and seven). They can use the time for any purpose, he said, and he has found that offering the time has added just 1 percent to his total labor expense. “The costs are pretty minimal,” he said, “and, talking with other businesses in Portland doing the same thing, our costs are line with theirs.”

Because Mr. Fuentes has a paid time-off policy that is at least as generous as what the city will soon require for sick leave, he will not be affected by the new law. But whether a business owner supports the law does not necessarily turn on how much strain the law will put on the company. Family Forward Oregon also tried to press Lisa Schroeder, owner of Mother’s Bistro and Bar into service for paid sick leave. Ms. Schroeder also offers paid time off and may have seemed a promising candidate to be a public face for the measure, since she is well known for her liberal views on other issues. But Ms. Schroeder demurred.

“I believe in it,” she said. “However, in my business, there’s a lot of ‘brown bottle flu,’ so you have people who call in because they had a rough night the night before.” Ms. Schroeder said she offered paid sick leave in addition to vacation days for employees who are “legitimately sick” — “I have the right to reserve judgment” — and she had hoped the ordinance would require a doctor’s note, but others called that a hardship for employees.

In the end, she said, “I just chose to stay neutral and let the chips fall where they may.”

Debbie Kitchin, a contractor who runs Interworks, a Portland remodeling business, worries about the paperwork associated with the law. Ms. Kitchin provides paid time off for her three full-time workers, but not for her crew of part-timers, which this year has ranged from one to three — she said she wasn’t sure whether the law would require her to offer paid leave. (Lisa Frack, spokeswoman for Family Forward Oregon, said that question would be resolved when the rules to carry out the law are written this summer.)

“For some of our people that we’ve brought in part time, they might work 20 hours one week and four hours the next week,” she said. “And our payroll software doesn’t really track the benefits by cumulative hours. It tracks them by pay period, or by month, which adds to the cost.

“By itself, it’s not the end of the world. But do you know how many other things there are like this? It’s the cumulative effect of all these little things,” she continued. “In my field, there are contractors who not only won’t do this but don’t even pay payroll taxes, liability insurance. They don’t get licensing and bonding. So this is just one more burden to businesses that are trying to follow the rules.”

Ms. Kitchin, who testified against the ordinance in a council hearing, said that next year, she might rely on a staffing agency or have her current employees work longer hours rather than hire additional part-timers, though she acknowledged that both of these alternatives would add to her costs as well.

For businesses like Ms. Kitchin’s, the bill in New York City promises a somewhat lighter touch than the Portland ordinance. Should it become law — it is likely to come up for a vote in two weeks — only businesses with at least 20 employees will be required to offer paid leave when it takes effect in the spring of 2014. A year and a half later, the threshold will drop to 15 employees. Businesses with fewer employees would still have to offer unpaid leave and job protection.

Jason Chung, who owns a Key Food supermarket in Forest Hills, Queens, that employs about 35 people, called the proposal undue interference. “Lawmakers should leave those kinds of things to the business people,” he said. Mr. Chung does not offer paid sick leave or time off now, but, he said: “If somebody’s sick — they have a legitimate excuse, a doctor’s note — oftentimes we give them full pay. So we don’t have to be told to do it.”

When asked if the rule would raise his costs, Mr. Chung, who is considering opening a second store, paused. “Not as much as Obamacare,” he said. “But I know Obamacare will have a big impact on the business.”

Article source: http://boss.blogs.nytimes.com/2013/04/29/paid-sick-leave-has-some-business-owners-feeling-ill/?partner=rss&emc=rss

You’re the Boss Blog: What It Takes to Create a Start-Up Community

Richard Florida: Martin Prosperity Institute courtesy of Atlantic Cities. Richard Florida: “In the past several years we’ve seen an incredible, accelerating shift in start-up activity back to urban centers.”

Start

The adventure of new ventures.

Entrepreneurs exist everywhere, but start-up communities don’t. Some rise up organically and others are created deliberately — or at least people try to create them deliberately. Many hope to create the next Silicon Valley.

Brad Feld, who is known for helping to turn Boulder, Colo., into a robust start-up hub, which he wrote about in his book, “Startup Communities,” said entrepreneurs lead a community’s creation and everyone else feeds it. Those feeders include government, universities, mentors, investors, service providers and large companies. Start-up communities also need a steady supply of talent — engineers, yes, but designers, scientists, sales and marketing experts, management consultants and investors, too. Another essential is density — lots of people sharing ideas and collaborating — and lots of places for entrepreneurs to network and share ideas.

One recent example of a burgeoning community is a segment of Los Angeles that is becoming known as Silicon Beach. With a steady supply of engineering, business and creative talent from Hollywood studios and major universities like U.C.L.A. and U.S.C., plus lots of meet-ups, co-working spaces and start-up events, Silicon Beach — which includes the beach communities of Santa Monica and Venice, as well as downtown L.A. and Hollywood — has become a haven for start-ups that blend technology and media, especially gaming companies.

Richard Florida, co-founder of the Atlantic Cities blog, and an urban studies professor at the University of Toronto and New York University, said Silicon Beach is part of an interesting evolution happening in entrepreneurial activity — it’s moving from the suburbs to the cities. “During the Industrial Age, a lot of activity moved to the edge of cities and to the suburbs,” he said. “And we believed then cities had been supplanted. High tech was happening in suburban areas of Silicon Valley, and outside of Boston, Seattle, in the Austin suburbs, in Research Triangle. But in the past several years we’ve seen an incredible, accelerating shift in start-up activity back to urban centers.”

Population density, he said, allows for the serendipitous encounters that inspire creativity, innovation and collaboration. “Entrepreneurs are competitive,” Mr. Florida said. “But they are also looking for people to partner with, people they resonate with.” Boulder is an unusual example of density. The city has only about 100,000 people, but Mr. Feld has hypothesized it may have more entrepreneurs per capita than any other community in the country. “The number of people working for start-ups is off the charts,” he wrote in a 2011 blog post.

According to Mr. Feld’s site, Startup Revolution, Boulder has 191 start-ups today, six accelerators, three incubators, 35 investors (including angels, seed investors, venture capitalists and corporations), five meet-up groups and a host of events like Ignite Boulder, Startup Weekend and TEDx Boulder. The area has attracted lots of engineers as well as sales, marketing, management and finance professionals.

Mr. Feld told DealBook in December that the city’s start-up community has grown because Boulder is a place where people wanted to live, so they built a life around it. But can you create a start-up community in a place like Detroit or even Las Vegas? Both cities lack density, but they do have evangelists — someone with a vision.

Detroit has Dan Gilbert, founder of Quicken Loans. In Detroit today, the median house price is less than $60,000, household income is around $25,000 and the number of people living in poverty is more than three times the national average. Talent is leaving in greater numbers than it’s arriving — which runs completely counter to what a start-up community needs. But as you can read in this recent Times story, Mr. Gilbert has already spent $1 billion to try to change all of that.

Meanwhile, Tony Hsieh, the founder of Zappos, is investing $350 million to revitalize Las Vegas, with $50 million going to tech start-ups through the VegasTech Fund. (The Times Magazine wrote about Mr. Hsieh’s efforts in 2012.) Drawing start-ups to economically challenged cities like Detroit and Las Vegas is hard enough but once there, those start-ups still face the usual challenges — finding investors, hiring talent and connecting with their communities.

Those connections are essential, said Scott Case, chief executive of Startup America Partnership, a private-sector initiative that aims to encourage the development of high-growth start-ups. Mr. Case said that is one thing his organization is focused on, recruiting and making its members visible. And that’s why the presence of accelerators and incubators, as well as events like meet-ups and pitch fests, are vital for a community’s growth.

Over the next several months this blog will take a closer look at a variety of start-up communities nationwide — those that are established and that that are emerging, or perhaps even struggling — in an effort to learn more about  what makes these places work.

Do you think it’s possible to create start-up communities deliberately? Or do they have to happen organically? And which communities would you suggest we look at?

You can follow Eilene Zimmerman on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/04/26/what-it-takes-to-create-a-start-up-community/?partner=rss&emc=rss

You’re the Boss Blog: Yes, You Treat Customers Well. But How Do You Treat Employees?

Creating Value

Are you getting the most out of your business?

I’ve been involved in owning and coaching businesses for about 35 years. I have gone from being one of the worst employers I have ever seen to being one that is at least pretty good. The biggest lesson I learned was that if I ever wanted my employees to treat my customers well, I had better treat my employees well. It took me 10 years to learn this lesson, but once I did, our customer service went from O.K. with lots of effort to great with minimal effort.

For me, this starts with personal responsibility. I wanted all of my employees to be personally responsible for what happened in their area. I recently wrote a post about this in which I talked about treating your employees as experts. The problem was that I wasn’t taking responsibility for myself. I wouldn’t accept mistakes, and I would often blame others or, even worse, try to justify my behavior. Finally, one of my employees suggested that I take a look in the mirror and start walking my talk.

This was a very tough lesson for me to learn. Being young and successful doesn’t always encourage humility. I was no different. But I can tell you that once I stopped blaming others I became a much easier person to work with.

Dan Sullivan of the Strategic Coach talks about this all of the time. He is referring to how you treat those outside of your company, but I think it’s even more important to be considered trustworthy by those who work inside. Mr. Sullivan’s four principles are:

  1. Show up on time.
  2. Say please and thank you.
  3. Do what you say.
  4. Finish what you start.

None of these things are hard to do. It just takes awareness that those who work with us have feelings and want to be treated with respect. But how often do we treat employees poorly and then turn on the charm when we’re with a customer? Our employees see this behavior, and they don’t like it. Today, when people I am working with or thinking about working with don’t follow these rules, I get much less excited about the prospect of working with them.

Here’s another way to show respect: Do you respond promptly to e-mails that come from outside your company but take days to respond to those that come from inside? My advice is to make sure you state your e-mail policy publicly. For me, it’s simple: Don’t send me long e-mails, and I won’t send you long e-mails, either. And you can expect a reply within 24 hours. My own rule is that if an e-mail is more than three paragraphs, I’ll pick up the phone and make a call. Yes, I realize I’m a little older than the average business owner, but telephones still work remarkably well when you need to have a complicated conversation.

Of course, you also have to return phone calls promptly. When employees call you, it’s probably about something important — a problem they believe only you can solve. Sometimes, the problem will be something that should not have come across your desk. When that happens it’s important for you to refer the caller to the proper person. And you need to follow up in a day or two to make sure the problem was resolved.

Following up is essential. Your employee took a risk. He or she called the boss with a problem. Don’t take this lightly. Calling back to make sure the problem was handled shows respect and builds trust.

Of course, there will always be times when we blow it. I know that I occasionally fail to get back to people promptly or let something fall through the cracks. I recently had a person I wanted to work with blow me off three times. Finally, he did get back to me and let me know that he had had several deaths in his family. I felt terrible — but at the same time I was annoyed that he had not let me know why my time was not respected.

Your employees have the same issue. They will know if you blow it. So start with an apology and admit your mistake. And then make sure you don’t do it again, at least not for quite a while. When I make a mistake in communication with someone, I consider myself on probation. It doesn’t matter whether the person works for me or not. I have to make sure I don’t do it again. Otherwise, trust will be lost.

At the end of the day, trust is what it’s all about. If we don’t treat our employees the way we treat our best customers, they will stop trusting us. And it’s very difficult to get that trust back.

Josh Patrick is a founder and principal at Stage 2 Planning Partners, where he works with private business owners on creating personal and business value.

Article source: http://boss.blogs.nytimes.com/2013/04/25/yes-you-treat-customers-well-but-how-do-you-treat-employees/?partner=rss&emc=rss

She Owns It: Up for Discussion: Can Employees Be Rehabilitated?

She Owns It

Portraits of women entrepreneurs.

Susan Parker: Any benefits are temporary, at best.Earl Wilson/The New York Times Susan Parker: Any benefits are temporary, at best.

At a recent She Owns It business group meeting, the owners talked about the odds of rehabilitating an employee who isn’t working out. Susan Parker, who owns Bari Jay, started the discussion by explaining why she was focused on becoming better at ensuring she has the best possible employees.

In 2008, she and her sister Erica Rosenberg inherited the business — and its employees — from their father after his death. Under those circumstances, Ms. Parker explained, she did not, at least initially, have control over whether she had the right employees in the right roles.

Some of those employees had been with Bari Jay for 15 to 30 years. “You have loyalty to them,” she said. This loyalty extends even to employees who have been with the company for far shorter periods of time — to those who helped Ms. Parker and her sister during the difficult transition period. For this reason, she said, “Erica and I have really tried hard to rehabilitate people.” Ultimately, however, she said she had come to the realization: “You just can’t.”

Ms. Parker said she came to this realization — and many others — while reading “Who,” a book on hiring that her business coach recommended.

Deirdre Lord, who owns the Megawatt Hour, said she had also conducted lengthy rehabilitations throughout her career — and come to a similar conclusion. While nobody wants to be fired, she said, she has found that the person who is not working out is often relieved. “There is this sense of, ‘Oh, thank God, we can stop this charade,’” she said.

Beth Shaw, who owns YogaFit, asked a question: What do you do with an employee who is really good at the job itself but has a bad attitude? When dealing with someone who fits this description, she said, she gets tired of the defensive stance and pushback that she and other YogaFit employees confront when offering feedback or suggestions.

Ms. Lord pointed out that it sounded as if this employee was not actually good at the job.

“There has to be a cultural fit,” said Jessica Johnson, who owns Johnson Security Bureau.

“Exactly,” Ms. Lord said.

Ms. Johnson said the resistance to feedback was especially jarring given that Ms. Shaw runs a yoga company, and it was critical that yoga instructors gave feedback. “Even if that’s not your role, there’s a disconnect,” she said. “You’re going to be schizophrenic in your job.”

Alexandra Mayzler, who owns Thinking Caps Group, said her biggest struggle was over how detailed to be when describing job requirements to a new hire. For example, is it sufficient to say timeliness is essential? “To me, that means you get there five minutes early and you’re ready and you have a few minutes to prepare yourself,” Ms. Mayzler said. “For some people, it might mean that you run in on the minute, and some people think if you’re five minutes late, you’re actually on time.”

She also said that she did not want to judge employees unfairly if the problem was her own failure to be specific when explaining job requirements. She said she wondered whether rehabilitation sometimes became necessary because the employer was not clear from the start.

“One of the reasons that I rehabilitated in the past was that I thought, ‘This person’s three months into the job, they know something already,’” Ms. Shaw said. She said another reason was that as the owner of a yoga business, she always felt it was important to “try to bring out the best in people and see the good in them.” But, she added, the values of a “spiritual mission” may not be the same ones that work in business.

Ms. Parker said she had found that any benefits from rehabilitations were temporary, at best.

“That’s what most rehabilitations are, even in relationships,” Ms. Shaw said. “They will rehabilitate, and chances are in three months, most people go back to their old behavior.”

“It’s not that they’re rehabilitated, it’s that they’re performing differently,” Ms. Johnson said.

Ms. Mayzler repeated that her biggest struggle was over whether she should expect employees to share her standards, even if she had not specifically defined the ways in which they should perform their duties.

“It’s a big communication issue, and I think it’s balance,” Ms. Johnson said. “For us, timely might be being there 15 minutes before the meeting starts, but you don’t know how somebody else interprets that, and if you don’t have that discussion. …”

“But if you hire the right person, from the beginning, they should know that,” Ms. Parker said.

“Right, that’s the question,” Ms. Mayzler said.

“Yes, they should know,” Ms. Shaw agreed.

“You shouldn’t have to explain to somebody what timeliness means,” Ms. Parker said.

“I’m not just talking about timeliness, but everything,” Ms. Mayzler said.

Ms. Parker said the book “Who” had been an eye-opener for her. She said it made her realize, “If I hired the right person, I wouldn’t have to micromanage, and I wouldn’t have to explain everything.”

This discussion will continue in our next post. In the meantime, what has been your experience with attempts to rehabilitate employees?

You can follow Adriana Gardella on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/04/24/up-for-discussion-can-employees-be-rehabilitated/?partner=rss&emc=rss

Case Study: Reconciling Retail Sales With a Wholesale Business

Although Mr. Shvartsman ships to hotels and resorts beyond his home state, he does the bulk of his business in South Florida, where he strives to deliver exceptional customer service, more in keeping with a small retail shop than a wholesaler.

THE CHALLENGE Having established five channels of distribution, Mr. Shvartsman found himself worrying that he might have to forgo his most profitable channel — a direct-to-consumers approach that was starting to offend his wholesale clients.

THE BACKGROUND A Toronto native, Mr. Shvartsman learned his first sales lessons at the age of 7, helping his parents sell jewelry at a Sunday flea market. He was smart, but he struggled in school because of an undiagnosed attention deficit disorder.

Passing on college, he went into business with his older brother in a 36,000-square-foot nightclub with 150 employees. Next, the brothers sold mall advertising on food court tabletops and ran a company that erected walls bearing “Coming Soon” announcements for obscure mall shops under renovation.

On the lookout for opportunities, Mr. Shvartsman had an aha! moment when he went to buy deck furniture for the patio of his family’s Miami condo.

“A sectional to seat four or five? Fifteen thousand dollars,” he recalled. “Chaise longues? One thousand dollars apiece. I was flabbergasted. I looked in store after store, but I couldn’t afford to buy what I like.”

Knowing nothing about the furniture industry, Mr. Shvartsman assumed he could jump in at a lower price and win buyers.

“My mother raised me to think there was no such thing as barriers to entry for me,” he said.

He disregarded the rumblings of the looming recession, as well as the industry’s old-school way of selling to retail stores through representatives. When his first four containers of outdoor furniture arrived from China, Mr. Shvartsman became a one-man sales force. He personally called and visited every furniture retailer in a 60-mile radius.

“I started attacking them,” he said. “In a short time, all had some of my furniture in their store or were selling off my catalog, which at the time was terrible.”

Then he opened several other South Florida distribution channels. He struck deals with local decorators and designers, and also with condos that needed half a dozen sectionals and dozens of chairs for each ground-level pool. Starting with one enterprising online furniture seller, Mr. Shvartsman also began fulfilling orders taken over the Internet by other businesses. Retail stores and online sellers paid him 60 percent off full price. Decorators, designers and condos got his goods for 50 percent off.

But Mr. Shvartsman also sold his furniture another way. As many as six or seven times a year he would fill a truck and unload it at a big Florida home show, selling directly to the public.

Most of these sales were at full price, with margins greater than 300 percent over his own costs — the equivalent of grand slams versus the singles of selling to furniture retailers and the doubles of selling to decorators and condo associations.

Even the home-show items he discounted were generally slow-selling pieces that had been clogging his warehouse and that he was only too happy to move, especially at margins around 100 percent.

But one day in 2010, his third year in business, Mr. Shvartsman answered the phone and found his second-best retail customer on the line with a beef.

“Gerald,” said the Fort Lauderdale furniture store owner. “I understand you’re doing home shows. I know that’s important to you, but we’re your customer. It’s not fair to us. You might be taking our sales.”

Mr. Shvartsman feared such a call might come, and he had already been weighing the pros and cons.

Article source: http://www.nytimes.com/2013/04/25/business/smallbusiness/reconciling-retail-success-in-wholesale-business.html?partner=rss&emc=rss

Staying Alive: Why I Pay What I Pay

Staying Alive

The struggles of a business trying to survive.

Sometimes, when I sit down to write, I focus on documenting a recent experience. Other times, I think about things that I would like to know about other businesses but have never seen publicly discussed. This post is the latter. It’s about how business owners decide what to pay their employees.

I’ve been thinking about wages and wondering whether I am paying my people too much, too little, or just the right amount. I don’t have a good way to answer that question, but I thought that it might be interesting for me to list what I expect to get for various hourly wages, starting at the minimum and working up the scale. I’ll be eager to see your thoughts in the comment section.

I have to preface the list with a little background. My willingness to pay a given wage to a given person is influenced both by the relative scarcity of trained woodworkers with the skills I need and by the cost of living in my location, suburban Philadelphia. I am also going to omit, for the purpose of simplicity, the cost of benefits that we offer (paid vacation, retirement plan, health insurance and, coming soon, profit sharing). My benefit costs for each of my workers depends on that person’s years with the company (we offer more vacation time for longtime employees) and family structure, which drives health insurance purchases.

I also want to stick to wages for shop-floor workers. There is a lot of chatter about manufacturing jobs in the media, and these are generally hourly positions. The salaried and administrative positions in my company do not fit into any neat categories, because of the specialized nature of our work. So I’m not going to include them in the analysis. That said, let’s start at the bottom:

Minimum wage (in Pennsylvania, $7.25/hour): I don’t expect much for this, beyond a pulse. I don’t think it’s enough for any adult to live on, as it would be difficult to afford a stable living and transportation situation. It might be appropriate for the unskilled, youths or temporary workers, but that is not what I want.

$10/hour: This is my starting wage. For this I expect workers without much in the way of skills but who are reliable about showing up on time and work at a steady pace. They should be able to learn simple tasks (taking out trash, unloading materials) and perform them correctly. They should understand English well enough to take simple directions.

$12/hour: If the $10/hour employees work out and show some ability to learn the simpler technical tasks that we perform while we build our products, I can pay them a little more. I would expect them to perform a set of simple tasks on a regular schedule without supervision and to demonstrate a willingness to work on a flexible schedule. They should also have a valid driver’s license and be willing to work a flexible schedule and long hours when we need to make out-of-state deliveries. (They will be paid overtime for more than 40 hours of labor per week.) They should understand complex spoken English.

This is also where we start workers who have the desire to become skilled woodworkers but have had no training. This class of workers requires significant attention from management and co-workers, so we can’t pay them much. They need to demonstrate a good work ethic, curiosity and willingness to take direction. And, they need to show some talent, which we call “good hands.” This ability is not evenly distributed in the population, and it cannot be taught.

$13.50/hour: This wage is for workers who can speak English sufficiently to convey technical information back to the supervisor. For a worker on the training path, a raise to this level would be a reward for steady progress in acquiring our specialized skill set, and continued reliability and hard work.

$15/hour: This is where I start workers who have had general training in woodworking but do not have experience in the specialized skills that we use. Most woodworking training programs emphasize skills that are, in my shop, obsolete. We do not work with hand tools very often and our equipment is much more sophisticated than that found in schools. So workers fresh out of technical school will need significant training, and we will also have to determine whether they have good hands and a good work ethic.

$18/hour: I would pay this for workers who have had both technical schooling and some experience in another wood shop and whose skills and work ethic have been vouched for by former bosses. I still need to see whether these workers can perform at our level of speed and accuracy, which is higher than the industry average. And we will still need to put a significant effort into expanding their skill set to include the specialized work that we do.

$20/hour: This is what I pay workers who have been with me for sufficient time to learn our procedures and perform at a level where they can do most tasks most of the time without error. As custom makers, we do a very wide variety of projects and have an enormous library of designs. It takes a while for workers to encounter every item we make, because we do not produce every one of our designs regularly. I keep workers in this wage range until they can do a wide range of items without problem. Also, at this level they should not need constant attention from management.

$25/hour: These employees should have mastered every aspect of their jobs. They should be able to manage a helper if required. And they should be able to contribute ideas that improve our operations. This is also where I would start workers who come to us with previous experience doing work similar to ours. Most workers who can make that claim have many years of experience in other shops and a wide range of skills. Unfortunately, many of those skills are no longer needed in modern manufacturing. But their mastery indicates a dedication to acquiring and upgrading skills.

$30/hour: This is foreman-level pay, earned by a worker with complete mastery of both our particular skills and the wider demands of the trade. This worker should be an energetic and innovative leader, able to monitor all the activity in the shop, to provide direction to other workers when required and drive innovation in our procedures. This person will work closely with me and with the office staff and is likely to work a lot of overtime, which enhances pay.

So that’s my wage picture. You might break it down this way: the first $10/hour gets you reliability, the next $10/hour gets you a skill adequate to do our regular production, and the next $10/hour buys all of the extras. One of the paradoxes is that many of those extras are skills that we do not actually use anymore. Anyone who has been around long enough to get to master level has experienced the revolution in manufacturing that I have seen since I started my business in 1986. Back then, the machines were dumb and the workers were brilliant. Now the machines are a lot smarter, and some of the requirement for employee brilliance has been eliminated. Since we are custom makers, however, we occasionally end up doing something that could be done by machine but will require a lot of investment in programming and tooling. It is faster to push it out to the shop floor and let them figure it out. That’s when the master-level workers shine.

I want to close by repeating that this is what happens in my own shop. Different companies, in different industries, and in different locations, may end up with very different numbers. I welcome any thoughts on what I have written.

Paul Downs founded Paul Downs Cabinetmakers in 1986. It is based outside Philadelphia.

Article source: http://boss.blogs.nytimes.com/2013/04/23/why-i-pay-what-i-pay/?partner=rss&emc=rss

You’re the Boss Blog: Up for Discussion: Can Employees Be Rehabilitated?

She Owns It

Portraits of women entrepreneurs.

Susan Parker: Any benefits are temporary, at best.Earl Wilson/The New York Times Susan Parker: Any benefits are temporary, at best.

At a recent She Owns It business group meeting, the owners talked about the odds of rehabilitating an employee who isn’t working out. Susan Parker, who owns Bari Jay, started the discussion by explaining why she was focused on becoming better at ensuring she has the best possible employees.

In 2008, she and her sister Erica Rosenberg inherited the business — and its employees — from their father after his death. Under those circumstances, Ms. Parker explained, she did not, at least initially, have control over whether she had the right employees in the right roles.

Some of those employees had been with Bari Jay for 15 to 30 years. “You have loyalty to them,” she said. This loyalty extends even to employees who have been with the company for far shorter periods of time — to those who helped Ms. Parker and her sister during the difficult transition period. For this reason, she said, “Erica and I have really tried hard to rehabilitate people.” Ultimately, however, she said she had come to the realization: “You just can’t.”

Ms. Parker said she came to this realization — and many others — while reading “Who,” a book on hiring that her business coach recommended.

Deirdre Lord, who owns the Megawatt Hour, said she had also conducted lengthy rehabilitations throughout her career — and come to a similar conclusion. While nobody wants to be fired, she said, she has found that the person who is not working out is often relieved. “There is this sense of, ‘Oh, thank God, we can stop this charade,’” she said.

Beth Shaw, who owns YogaFit, asked a question: What do you do with an employee who is really good at the job itself but has a bad attitude? When dealing with someone who fits this description, she said, she gets tired of the defensive stance and pushback that she and other YogaFit employees confront when offering feedback or suggestions.

Ms. Lord pointed out that it sounded as if this employee was not actually good at the job.

“There has to be a cultural fit,” said Jessica Johnson, who owns Johnson Security Bureau.

“Exactly,” Ms. Lord said.

Ms. Johnson said the resistance to feedback was especially jarring given that Ms. Shaw runs a yoga company, and it was critical that yoga instructors gave feedback. “Even if that’s not your role, there’s a disconnect,” she said. “You’re going to be schizophrenic in your job.”

Alexandra Mayzler, who owns Thinking Caps Group, said her biggest struggle was over how detailed to be when describing job requirements to a new hire. For example, is it sufficient to say timeliness is essential? “To me, that means you get there five minutes early and you’re ready and you have a few minutes to prepare yourself,” Ms. Mayzler said. “For some people, it might mean that you run in on the minute, and some people think if you’re five minutes late, you’re actually on time.”

She also said that she did not want to judge employees unfairly if the problem was her own failure to be specific when explaining job requirements. She said she wondered whether rehabilitation sometimes became necessary because the employer was not clear from the start.

“One of the reasons that I rehabilitated in the past was that I thought, ‘This person’s three months into the job, they know something already,’” Ms. Shaw said. She said another reason was that as the owner of a yoga business, she always felt it was important to “try to bring out the best in people and see the good in them.” But, she added, the values of a “spiritual mission” may not be the same ones that work in business.

Ms. Parker said she had found that any benefits from rehabilitations were temporary, at best.

“That’s what most rehabilitations are, even in relationships,” Ms. Shaw said. “They will rehabilitate, and chances are in three months, most people go back to their old behavior.”

“It’s not that they’re rehabilitated, it’s that they’re performing differently,” Ms. Johnson said.

Ms. Mayzler repeated that her biggest struggle was over whether she should expect employees to share her standards, even if she had not specifically defined the ways in which they should perform their duties.

“It’s a big communication issue, and I think it’s balance,” Ms. Johnson said. “For us, timely might be being there 15 minutes before the meeting starts, but you don’t know how somebody else interprets that, and if you don’t have that discussion. …”

“But if you hire the right person, from the beginning, they should know that,” Ms. Parker said.

“Right, that’s the question,” Ms. Mayzler said.

“Yes, they should know,” Ms. Shaw agreed.

“You shouldn’t have to explain to somebody what timeliness means,” Ms. Parker said.

“I’m not just talking about timeliness, but everything,” Ms. Mayzler said.

Ms. Parker said the book “Who” had been an eye-opener for her. She said it made her realize, “If I hired the right person, I wouldn’t have to micromanage, and I wouldn’t have to explain everything.”

This discussion will continue in our next post. In the meantime, what has been your experience with attempts to rehabilitate employees?

You can follow Adriana Gardella on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/04/24/up-for-discussion-can-employees-be-rehabilitated/?partner=rss&emc=rss

Case Study: Reconciling Retail Success in Wholesale Business

Although Mr. Shvartsman ships to hotels and resorts beyond his home state, he does the bulk of his business in South Florida, where he strives to deliver exceptional customer service, more in keeping with a small retail shop than a wholesaler.

THE CHALLENGE Having established five channels of distribution, Mr. Shvartsman found himself worrying that he might have to forgo his most profitable channel — a direct-to-consumers approach that was starting to offend his wholesale clients.

THE BACKGROUND A Toronto native, Mr. Shvartsman learned his first sales lessons at the age of 7, helping his parents sell jewelry at a Sunday flea market. He was smart, but he struggled in school because of an undiagnosed attention deficit disorder.

Passing on college, he went into business with his older brother in a 36,000-square-foot nightclub with 150 employees. Next, the brothers sold mall advertising on food court tabletops and ran a company that erected walls bearing “Coming Soon” announcements for obscure mall shops under renovation.

On the lookout for opportunities, Mr. Shvartsman had an aha! moment when he went to buy deck furniture for the patio of his family’s Miami condo.

“A sectional to seat four or five? Fifteen thousand dollars,” he recalled. “Chaise longues? One thousand dollars apiece. I was flabbergasted. I looked in store after store, but I couldn’t afford to buy what I like.”

Knowing nothing about the furniture industry, Mr. Shvartsman assumed he could jump in at a lower price point and win buyers.

“My mother raised me to think there was no such thing as barriers to entry for me,” he said.

He disregarded the rumblings of the looming recession, as well as the industry’s old-school way of selling to retail stores through representatives. When his first four containers of outdoor furniture arrived from China, Mr. Shvartsman became a one-man sales force. He personally called and visited every furniture retailer in a 60-mile radius.

“I started attacking them,” he said. “In a short time, all had some of my furniture in their store or were selling off my catalog, which at the time was terrible.”

Then he opened several other South Florida distribution channels. He struck deals with local decorators and designers, and also with condos that needed half a dozen sectionals and dozens of chairs for each ground-level pool. Starting with one enterprising online furniture seller, Mr. Shvartsman also began fulfilling orders taken over the Internet by other businesses. Retail stores and online sellers paid him 60 percent off full price. Decorators, designers and condos got his goods for 50 percent off.

But Mr. Shvartsman also sold his furniture another way. As many as six or seven times a year he would fill a truck and unload it at a big Florida home show, selling directly to the public.

Most of these sales were at full price, with margins greater than 300 percent over his own costs — the equivalent of grand slams versus the singles of selling to furniture retailers and the doubles of selling to decorators and condo associations.

Even the home-show items he discounted were generally slow-selling pieces that had been clogging his warehouse and that he was only too happy to move, especially at margins around 100 percent.

But one day in 2010, his third year in business, Mr. Shvartsman answered the phone and found his second-best retail customer on the line with a beef.

“Gerald,” said the Fort Lauderdale furniture store owner. “I understand you’re doing home shows. I know that’s important to you, but we’re your customer. It’s not fair to us. You might be taking our sales.”

Mr. Shvartsman feared such a call might come, and he had already been weighing the pros and cons.

Article source: http://www.nytimes.com/2013/04/25/business/smallbusiness/reconciling-retail-success-in-wholesale-business.html?partner=rss&emc=rss