Have You Shifted Gears?

Has your company shifted gears, to take advantage of these 4 developments in the economy?

• GDP growth 4.1% in June
• Unemployment 3.9%
• American workers received largest pay raise in 10 years
• Corporate taxes driving profits

Simply put, if your company is not seeing gross revenue and profit growth of 8-10%, you need to speak with us. There are either structural problems with your organization preventing you from taking part in this economic boom, or you have people unable or unwilling to ramp up their performance.

During times of economic hardship, many employees slide comfortably into a mode where they coast along, secure in the fact that no one seems to be doing any better than they are. These are precisely the people you need to retrain, re-motivate, or replace today. Many have found comfort in mediocre performance and are loathe to gear up and run fast again; they will curtail your revenue while poisoning your new personnel.

If your staff is ready to go and free from the malaise described above, but you are still not performing better than last year – see us about structure. Many companies make the necessary changes to save on costs (usually payroll) during the down times, only to be caught unprepared for the influx of capital and opportunity in a booming economy. Processes and staffing changes that made sense a few years ago could well be hampering your progress now – don’t let any more time elapse without talking to someone who can analyze your company and point out opportunities.

We offer a 1-hour free consultation that can help you determine where you stand, but whether you speak to us or someone else – look at your company critically and determine if you’re keeping up with your competitors and taking full advantage of the current economic trends. Remember – inflation is coming, as sure as night follows day. How are you going to afford higher costs when your income has remained flat?

Sticking your head in the sand only ensures you will be eaten without warning.

That is the question………..

I’m old enough to remember the music industry back when we all eagerly awaited the release of our favorite band’s next “album”. New acts would come around, but you spent years following each new release of your trusted favorites. Then something changed – it seemed by the late 90’s people were not anticipating the next album, but the next new band. Gone was loyalty for the most part – it was more about the next new group, or genre.

We are seeing the same trend across the business sector – as millennials become a larger part of the consumer base of any industry, brand loyalty seems to be decreasing. Social Media advertising and marketing plans allow small startups to compete much more effectively than ever before. Restaurants, big-box retailers, and fitness centers seem to be hit particularly hard by this, just to name a few. Is anyone really excited about another Chili’s or 24-Hour Fitness opening up? The new hip coffee shop, or boutique gym, is certainly much more exciting to an ever-increasing number of consumers.

Add to this the exorbitant cost of maintaining a franchise relationship with some of these big brands, and it is not surprising that so many operators are choosing to “de-brand”. This presents its own host of risks, and should not be taken lightly; however, if it is managed correctly it can yield great results. It is a process and must be planned out far in advance so as to cause the least upheaval possible among your staff and clientele. The timeline must include research and implementation dates for a host of categories – here are just a few:

• Communication – when and how to notify company stakeholders, employees, key clients, potential clients. Each of these needs a separate strategy.
• Physical changes – plant changes, branding, equipment purchases depending upon the industry.
• Training – management and staff training on new procedures, pricing, policies.

These are just a few of the myriad of issues you will need a plan for. Simply deciding to re-brand to save money on royalties or franchise fees is reckless; you must consider all the aspects of this decision. When done correctly, according to both the trends of your industry and best practices of those who have gone before you, it can be a great benefit to your bottom line and promote growth and new customers, many of whom were uninterested in you as a national brand.

If you are considering this change or know someone who is, please contact us for a free one-hour consultation regarding this important decision.

As I watch a company I once knew fall apart, losing manager after manager, I cannot help but wonder how the C – Suite occupants failed to see it coming. Gone are the days when district and regional management came up to the front lines to help out; it’s now a conference call, distribution of blame, and threats – with the inevitable comp plan changes designed to elicit more dedication from the managers.

This story is all too common.

So often the establishment of KPIs results in a false sense of security amongst lazy executives; they think they can manage performance from their easy chair. Countless conference calls to go over the numbers, the assignment of blame without any first-hand knowledge of what is going on in a market – this is so common it would be laughable, if not for the deleterious effect it has on managers.

KPIs are meant to raise awareness of particular problems; these problems cannot be solved by a phone call. When you are too lazy or inept to actually go teach, train and inspire, your people will simply manipulate the reporting until they get caught. The ensuing response from the C – Suite is usually to install more reporting, designed to catch people cheating on their numbers when the simple solution is staring at them the whole time.

Get out of your office and go help them. Travel to markets or locations where managers are underperforming; they will appreciate the fact that you care enough to try to help. If you cannot actually perform the task you are asking them to do, you’re in the wrong job to begin with and are probably terrified they’ll find out. This is common in companies who hire upper management from the outside. It’s the old philosophical problem of infinite regress – I need better people because mine aren’t ready, and mine aren’t ready because I need better people.

When we consult with companies, we embed ourselves with their people as well as their systems. If this sounds interesting to you, please contact us for a free 1-hour consultation.