April 23, 2024

You’re the Boss Blog: Why We Are Hiring Outsiders to Critique Our Performance

Hoi-Sun Tong (left) and Franya Barnett (right) are Vanessa K. Rees Hoi-Sun Tong (left) and Franya Barnett (right) are “process rhinos.” Sonu Panda is co-founder and chief operating officer.

Building the Team

Hiring, firing, and training in a new era.

Sonu Panda is an animal.

As co-founder and chief operations officer of H.Bloom, Mr. Panda is maniacally focused on the minute details of our business. His mission is clear: to make sure that each delivery that we make is a luxurious experience for our customers. To aid him in his quest, he is building an internal consulting group made up of folks who carry an unusual title: process rhino.

In a column for Forbes called The Rhino Principle, Paul Johnson described the rhinoceros as single-minded: “When it perceives an object, it makes a decision – to charge. And it puts everything it’s got into that charge.” Our process rhinos are putting everything they’ve got into analyzing the daily processes that enable H.Bloom employees to buy the best flowers, design exquisite living art, produce remarkable arrangements and deliver those arrangements to our corporate and consumer customers.

If you are wondering why I’m writing about Mr. Panda and rhinos, it’s about training. In my last three posts, I’ve written about our fundamental belief in gaining a competitive advantage through practice, how we facilitate management classes, and how we emphasize the lessons learned in those sessions. Today, I want to describe the dedicated team that we are building to identify and document the best way to do things at H.Bloom. The playbook that they create will enable us to provide better training to our team. And, it is with better training that we will ensure we deliver the best products and services to all of our customers.

In the first of the these posts, I referred to our SEED Program, where we train aspiring business leaders to run the operations of future H.Bloom markets. Today, graduates of the program manage four of our five markets, and we have another four folks in the program currently. Until now, though, the training has focused almost exclusively on the job, rotating trainees through all aspects of a market’s operations and shadowing the existing market manager. It has been learning by doing.

The ideal training program would provide SEED participants with a playbook, enumerating every process that happens within an H.Bloom market and identifying the right way to do things. Practice makes perfect only if you are practicing how to do things perfectly. We needed to take the time to analyze our operations, but everyone involved in our operation was already working at full capacity. In order to analyze the processes and build our playbook in a meaningful time frame, we needed a dedicated team to do it. So, we are creating a team of internal consultants — our team of process rhinos.

We are hiring these folks from outside of the company, so that they bring an unbiased perspective when determining whether processes are optimal. Instead of coming from a background of deep experience at H.Bloom, these new full-time employees will apply the Socratic method of asking question after question until they identify our best practices. We rationalized the additional expense of this team in a very straightforward way. First, if we build a team of process rhinos, and they help us expand rapidly to cities around the world, their amortized cost will be negligible. Second, if their work to build the playbook has a positive impact on the rate at which we expand to new regions – directly affecting the slope of our revenue growth – the investment will be well worth it.

Here’s the plan that Mr. Panda has laid out: Examine existing operational processes. Document those processes with great detail. Seek feedback from all stakeholders to determine the best ways to do things. Roll out the new procedures to all markets. Track what happens. Build a new training curriculum for SEED participants.

With a playbook, all employees in an operational role will train faster, retain more, and have fewer on-the-job questions. Moreover, our SEED participants will now have a formal curriculum to augment the on-the-job training. This is particularly important as we begin to accelerate our expansion in the coming months.

Mr. Panda has already hired two of the rhinos, and he is actively looking for a third. The profile of the ideal candidate is simple – someone who is smart and has the ability to synthesize a lot of information and then can disseminate new standards across the company. The person will also have to be ready and willing to work hard.

If all of this works, we will deliver a better product and better service to our customers. We are making a big bet on training, and with this internal consulting group, we are investing in the people and playbook to ensure that we train well. Now that Mr. Panda has hired a team to develop our playbook, he meets with them weekly for status updates, but otherwise, he gets back to his role as C.O.O. and gets out of their way.

Once you find a team of rhinos to analyze and optimize your processes, it’s best not to get in the way of their charge.

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

Article source: http://boss.blogs.nytimes.com/2013/05/30/why-we-are-hiring-outsiders-to-critique-our-performance/?partner=rss&emc=rss

Building the Team: Introducing Building the Team: Flower Power

H.Bloom's New York team, including co-founders Sonu Panda and Bryan Burkhart (back row, second and third from the left).Courtesy of H.Bloom. H.Bloom’s New York team, including co-founders Sonu Panda and Bryan Burkhart (back row, second and third from the left).

Three years ago, I knew nothing about flowers.

Today, I am chief executive of what I believe is the world’s fastest growing flower delivery service, operating in five cities, with $18 million in venture capital and more than 80 employees.

My background is in business, entrepreneurship and technology. I studied entrepreneurial management at the University of Pennsylvania’s Wharton School for my undergraduate degree. After college, I moved to San Francisco and joined a software start-up, Callidus Software, as one of its first business hires. Our task was to figure out whether we could sell the software to anyone. Thankfully, we did. We grew the business to more than $100 million in revenue, taking the company public in 2003. I was 28 at the time. I ultimately became senior vice president of global sales, responsible for 76 employees in offices around the world.

It was an amazing first ride, but I was feeling dissatisfied for two reasons. First, as the 800-pound gorilla in a very small market, we were as big as we were ever going to be. Plus, the product was boring. If I described it here, you would fall asleep.

I wanted more. I wanted the chance to build something great, something with a product that people loved and that had a chance to be a really big business. However, I’m not Mark Zuckerberg. I don’t know how to code, and I have no idea how to create a market that doesn’t already exist. But I am willing to work really hard. So, I took a year off to come up with the next great idea.

I left the software company in 2009. My thesis was simple: try to apply technology to a really big, existing market that was bereft of technology, preferably a market with a product people love. I considered all sorts of industries before stumbling upon flowers.

It turns out that the flower industry is a $35 billion dollar market in the United States alone. That’s right, $35 billion. That was certainly enough to pique my interest. But I didn’t know anything about flowers, so I did the only thing I could think of to learn more. I put an ad on Craigslist, saying that I wanted to buy a flower shop. I got dozens of responses, and spent the next two weeks at Chelsea Market in Manhattan, sitting in front of one of the city’s best espresso stands, meeting with flower shop owners (and drinking inordinate amounts of coffee).

From these meetings, I learned that flower shop owners (there are approximately 22,000 of them in the United States) are extraordinary artists. They create living art every day that customers love. But they don’t have a background in technology, and they don’t necessarily enjoy the business side of things. Moreover, they deal with a huge economic challenge: spoilage. The average rate in the industry is anywhere from 30 to 50 percent. It’s a tough way to run a business. The only way that the shop owners can make money, as a result, is to mark up the price of flowers to five times what they pay for them. This was my moment of epiphany.

I knew that there was a type of customer – hotels, restaurants, retailers, offices, buildings, spas, and affluent households – that viewed flowers as living art, something to be enjoyed continuously. But their flowers died every week. These customers were perfect candidates for a subscription model: sign up once and receive this luxurious product, hand-delivered to your door every week. For H.Bloom, my new company, the subscription model was the silver bullet. It would allow us to buy only what someone had already subscribed for, thus reducing spoilage almost completely.

I emerged from my year off ready to start what I thought would become the Tiffany of flowers – a game-changing business that would eventually be a world-recognized brand. But I’m sure a lot of people thought I was crazy. I was leaving a successful career in enterprise software to start a flower company? Thankfully, a good friend told me to keep my own counsel. I had come up with the idea; the logic was sound; just make it happen.

And the idea worked. We launched H.Bloom in April of 2010 in New York City. We signed corporate customers, impressed them with our designs, provided them with 20- to 30-percent savings off the vendors they had used previously, and most importantly, we offered world-class service thanks to the software we built to make operations run efficiently. Soon after, we opened H.Bloom in other cities – Washington, then Chicago, San Francisco and most recently, Dallas – and they have done well.

As we thought about our growth plans, we realized that to grow quickly, we would have to expand to new cities fast. While we  believed that our software would enable these markets to deliver our luxury flowers in a sophisticated way, we knew that it would take great people to make everything work. If we hired the wrong people, or didn’t provide them with the right training, the operation would simply not function. So, we decided to build our own farm team – a formal talent-development program – to groom future leaders and team members to run new H.Bloom markets. We call the program H.Bloom University.

Today, many of our employees – managers, future managers, sales people, operations folks and floral designers — are participating in the program. Five people have graduated successfully from the future-leaders program (called SEED) and are now leading H.Bloom markets. We have focused on all aspects of building the team – from defining needed positions, to recruiting the right candidates, hiring them, training them, providing them with a road map for career growth and constantly communicating the strategy, successes and failures of our business. We’ve also had to let people go. We view all of this as integral to building the team. We’re not good at it yet, but we aspire to be great.

And that brings me to why I’m writing for this blog. I love business and want to build an extraordinary one. I believe that building a team and developing talent is the foundation of any business, no matter how big or small, but it is often overlooked amid all of the other things that happen day to day. I hope to use this blog as a way to share our experiences and to get your feedback on what you’ve seen work and fail in your businesses. In the coming weeks, I’ll be writing about the five main areas that we focus on as we try to build a team: recruiting, training, communications, career development, and leadership. I will also talk about team builders that I’ve met and that we try to emulate and some of the new technologies that we use to manage the process.

During new-hire training at H.Bloom, I always tell new employees that together, we have the opportunity to build a great company. With Building the Team, I am hopeful that together, we can discover how to build a great team.

Article source: http://boss.blogs.nytimes.com/2013/01/16/introducing-building-the-team-flower-power/?partner=rss&emc=rss