Leadership and Building a Great Team

Dave Roemer

Once you find that “right fit” franchise and sign on the dotted line, that’s when the work begins. One of the most important tasks you take on as a franchisee is building your team. What follows is an excerpt from chapter 3 of my book So, you bought a franchise, NOW WHAT?

Unless you bought yourself a job, you will never grow your business without surrounding yourself with great people and building a team.  I like to use sports analogies because I think they have great relevance in business, so here is the first of many you will see in this book. If you think about it, no successful person in any sport has done it alone. Even athletes in individual sports such as tennis, golf, swimming, or track have a team around them. They have a coach, a trainer, nutritionists, and family and friends to support them. Golfers have a caddy who does much more than just carry the clubs. In short, to be successful at anything, you need a team of people who believe in you and your cause.

Some might argue that building a great team is the most essential aspect of a successful business. While their argument certainly has merit, I would ask them how they plan to attract the type of people they need without being able to explain where they are going, why they are going there, and what success looks like. The people you want around you are people who want to be a part of something and are not just in it for the paycheck.

When I was a young manager running a 24/7 business, I thought hiring people with specific skills and experience was the way to go. I had a lot on my plate, and training new people took time and effort. I learned that my approach led to high turnover, which took more time than if I hired people who cared about customers and had the right attitude and trained them well. Those people stayed a lot longer and were instrumental in growing the business.

You have likely heard the phrase “attitude is everything,” and you probably think it’s true. My experience has taught me that it is. To illustrate and communicate this belief to my teams over the years, I have used this example. Take the letters in the word attitude and write down its corresponding number in the alphabet like this:

A           T             T          I           T            U         D          E

1          20        20       9         20        21       4         5

 

When you add up the numbers, the total is 100. Attitude is everything

As a leader, it is your responsibility to learn about what drives people in general and your people in specific. Then it is your job to provide them what they need to be successful as part of your team. If you want to create a successful company that will allow you to achieve your WHY, it is completely on your shoulders to set the vision that attracts great people and give those people

the tools to succeed, which includes creating the environment in which their needs are met, and they feel part of something larger than themselves. Think of it this way; your team members are your customers. To you, they must be your number one priority. Take care of them and they will take care of the paying customers who in turn will fuel the success of your business helping you achieve your WHY. It is the business life cycle depicted in Figure 3.1.

 

Another way I like to describe this diagram is this:

The experience of your customers will never exceed the experience of your team. Click To Tweet

Giving people the tools and setting them up for success is essential to you and them. Customers don’t understand when someone is poorly trained and cannot execute their job. They just think the person is stupid or incompetent, and the team member feels that way. When I encounter this, I always ask if the team member is new and tell them it’s OK. I don’t blame them; I blame the leader for not properly protecting his or her team member with proper training.

Don’t just take it from me, though. Here is what Lynn Given, a ComForCare franchisee in Orlando, FL, had to say about training her team:

“Training is the key to the success of the business. Without well-trained staff, we have unhappy customers, which then becomes a cycle of uncertainty. We start with four days of training in the field and then ongoing training each week in the office with reminders of our policies and techniques. We find that repetition is key. We coach and train on the go, daily. Then reward the team and share the joys.”

I have told many leaders and business owners over the years that if
they are not willing to spend at least 25 percent of each day in some form
of training, put the “for sale” sign on the door today because the value of
your business will only go down from here. I believe that statement with
my entire being. A leader’s number one responsibility is to train, coach,
and give feedback to his or her team. Everything else comes second.

Providing feedback is the key to developing your team but that topic will require another article so stay tuned.

Dave Roemer is a consultant at The Franchise Consulting company and an almost 40-year veteran of the franchise industry. Dave’s book So, you bought a franchise, NOW WHAT? Is a collection of stories, best practices, and tools collected over the years. It includes quotes from several successful franchisees interviewed for the project. It is available online at amazon.com and barnesandnoble.com.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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How HR Can Proactively Prevent and Prepare for Cyberattacks

Jim Cichanski – CEO FlexHR

Since Russia invaded Ukraine in early 2022, cyber-attacks have become more of a threat than ever before. Any countries that had ties to Ukraine were made vulnerable to Russian cyber-attacks. To keep ahead of these, HR departments stay apprised of the latest cyber threats from Russia and can advise companies about how to best protect themselves.

Some of the most harmful attacks are those on payroll, where funds are rerouted to untraceable debit cards. These cyber-threats can be costly and must be prevented.

Yet, those aren’t the only cyber threats companies should be worried about. We need to look no further than the LinkedIn data breach in 2021 to see that cyber security threats come in all shapes and sizes.

The LinkedIn data breach exposed 700 of the 756 million LinkedIn users to being hacked, as their personal information was scraped. Armed with email addresses, phone numbers, usernames, and other personal information, the hackers had the potential to target millions more easily.

How Employers Can Prepare

Many employers are aware of the devastating effects of cyber-attacks, but not all of them know how to prevent and plan for them.

As Jim Cichanski, the CHRO and Founder of Flex HR, states, ” Many companies have put extensive policies and procedures in place to protect cyberattacks,” but “stop short on the employee preparation on how to get critical tasks done. If they lose internet or power, what would they do?”

So, what should employers do to protect their employee’s data? How do you prevent and prepare for a cyber-attack?

First, every company should have policies and procedures that safeguard information, just in case. Companies need to prevent important information from being stolen and create plans to keep the business operating if there is a cyber-attack.

One of the most important pieces of information that needs protecting is payroll. One of the latest cyber threats is someone hacking into the system and rerouting the money. To protect against cyber-attacks, always check that the information for direct deposit is correct before pressing payroll.

Similarly, if you receive an email request to change or set up a new direct deposit, never do so automatically. Always call the person who sent it and verify the request. Additionally, you may want to send a new email instead of replying to the thread so that you can check the source of the email you received.

Cyber-attacks usually happen in grids, and therefore each company should have a backup grid if one is shut down. At Flex HR, our payroll partners have a 3-loop backup. If up to two of the grids get hacked and shut down, there is still a third available.

IT supports should also have backup internet and files. If a grid is shut down, all the important files should be backed up so they can be accessed elsewhere.

How HR Helps to Prevent and Plan

HR can help companies create plans to prevent and deal with cyber threats. If the power grid has to be shut down, HR can devise a strategy to communicate to employees what they need to do.

Employees will need to be prepared to move to a different grid if necessary, which would require them to have enough gas, emergency food and water, and internet backup such as a cell phone.

Employees would need to be able to continue operating as normal, which means that they should have phone internet cards and be able to use their office, home, or a family member’s home as backups. Similarly, employees can prepare to operate when the power is down by having solar-powered devices and chargers.

Additionally, the company will need to have their clients’ numbers on hand to let them know what is happening.

HR can help companies create a tiered protocol plan in the case of a cyber-attack. Using payroll management as an example, the first backup plan would be to do payroll in the office, then in the employee’s home, and thirdly in a family member’s home. If none were possible, employees could use an air card with internet access that does not require a cable to be hooked up.

It Could Happen to You

We all want to believe cyber-attacks won’t happen to us, but they are increasingly common. Human Resources can be a great asset in preventing and planning for cyber-attacks. Contact Flex HR to increase your cyber security and peace of mind.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

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The Breakthrough

Sometimes when you least expect it, you may become part of a breakthrough. This past week I experienced a breakthrough. It was fantastic to behold. I think breakthroughs are lovely. I relish the thought of making and being a part of one. What follows is an update to my post of June 27, 2022; “Make Better Decisions.”

As you will recall, in my post of June 27, I talked about a prospective client whose decision had an unfortunate outcome. He chose not to hire a driver to use an idled vehicle to transport workers to another job site. His decision sidelined workers, reducing overall productivity. Having had time to sleep on his decision, he realized he could have done better. Also, I believe he heard an earful from his employees and others.

When he made his ill-fated decision, he was overly concerned about the cost of gasoline and a dedicated driver. He faced a timing and scheduling issue, not a long-term increase in demand—a classic problem. After I had my say, I detached myself from this prospect and his situation. I considered it unlikely that I would ever sign him as a client. So, I backed off and focused on other opportunities. He made time to process his decision and its outcome alongside the alternatives. Eventually, the downside effects of his decision made it into his conscious mind.

After thinking it over, he recognized that an idled vehicle and several workers resulted in lost productivity and revenue. This cost was far greater than that of a driver, fuel, and wear and tear on a vehicle. It also created a negative impact on the morale of his organization. Having to fix the flat tire on the idled truck was not lost on him either. He crafted a policy statement and updated the company operations manual.

I must give him credit for conducting a critical review of his decision. He is an intelligent person, motivated to improve his company’s performance. The point is that he made good use of his time by reflecting on the outcome. He recognized the opportunity to improve his decision-making skills and hence the profitability of his enterprise. And, he hired me!

His self-assessment led to a more productive situation. Now, he authorizes rental vehicles and drivers to support peak demand without the need for capital to expand his fleet. This policy is a better use of his financial resources. Additionally, other opportunities have surfaced to resolve peak demand issues.

Now, I have a new client. The issue for me is to find the best way to build on his breakthrough. My first objective is to provide positive reinforcement for his change of heart without demonstrating “I Told You So” arrogance. This recognition should encourage his professional growth.

My second goal is to help him avoid ‘knee-jerk’ decision-making, the genesis of this recent situation. This goal may be a significant challenge as my new client has a self-assured, take-charge personality. I believe he should reduce his involvement in routine operational matters. Supporting this goal, I will encourage more delegation of authority.

Frankly, that is my focus. Help my new client determine how to optimize his time. He must focus on more important matters. He should make decisions that offer the most significant payback and the greatest risk reduction. Toward this end, I will encourage him to follow the decision-making model I presented in my June 27 article, an excellent way to begin this engagement. Eventually, when I am successful, I will introduce benefit/cost analysis and probability analysis to aid his decision-making.

It isn’t often that one can see a breakthrough as it happens. I am pleased to have been a small part of this one. You might say that this breakthrough was a breakthrough for me. I was able to nudge this potential client towards a different mindset. So, I can take some gratification in his change of heart. Breakthroughs are fun to experience. I love the exhilaration they create. One breakthrough makes me want to find another one, and then another.

Thank you for visiting our blog.

 

Jim Weber, Managing Partner – ITB Partners

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so please leave a comment.

 

Still No Plan to Sell Your Company? Do you Even Know What It’s Worth?

 

David Shavzin

When do I start my exit planning and how much is my company worth? We have gotten these questions for decades, especially from Baby Boomers. Sometimes it comes across casually: “So what do you think, should I start my exit plan 2 years ahead, maybe 3 years ahead?”

 

 

They often ask knowing the answer. They are trying to make themselves feel better because they haven’t created an exit plan and they know they should have started it long ago. They don’t know what their company is worth, but often get some outsized value stuck in their mind. If I respond that waiting until 24 months ahead of the sale is ok, they can let themselves off the hook for not having an exit plan or succession plan in place.

We talk to hundreds of business owners.

    • Some say they are tired and would like to get out. They do not want to put in much more time or invest in building the value of the company. Yet, they are not satisfied with what it is worth today.
    • Some family businesses have put off building a succession plan for a generation-to-generation transfer. They may feel they have time, or they may feel that their children (children often in their 30’s and 40’s) are “not ready yet”. They may fear losing an income stream as they transition out of the business.
    • Some are simply working the business, taking no time to develop an exit plan that could dramatically increase the value of the business when it comes time to sell.

 If any of these ring true for you, there are many potential solutions to address your concerns and situation. Take the first step and have a conversation with all involved. A good advisory team can help guide those exit plan discussions and provide an objective, experienced perspective. There are so many business exit options.

If you do have just a few years, there are a number of things you can do to optimize your exit and get everyone on the same page. But “2 – 3 years” is NOW, especially if you are a business owner in your 50s, 60s, 70s, or older. You have heard when talking about stocks that you can’t time the market. It’s the same thing for your business. And remember, the sale process itself can take 6 or 9 months to a year or more from start to finish.

With all of what’s going on out there in the world, a plan is critical to monetizing your life’s work! A sudden downturn could keep you captive in your business for another few years as you try to rebuild.

 Questions to ask yourself:

    • Do you know the value of your business? Don’t rely on a value that is some industry multiple or that sounds reasonable or what you’d like. Get professional assistance. This is your life, livelihood, and retirement.
    • When do you want to be completely or mostly out of the business?
    • Can you wait out the next downturn? If you are thinking of a 2- to 3-year timeframe, what if the economy slows down? Can you wait another few years to rebuild the value of your business? What do you really need out of the sale?
    • Do you have a solid plan for what you will do after your exit?

 By the Way, It’s NOT all about YOU!

Without an exit plan, you are not just risking your own retirement or next phase of life. You are putting in jeopardy your spouse, children, their families, your employees, their families, and more. Click To Tweet

The message is simple: work with your advisors now to get a good understanding of your situation. The more informed you are, the better positioned you will be to create an exit plan that works for you, maximize value and minimize risk. You will leave the legacy that you want, not what others want. You will create your future!

Need to Get an Idea of Where You Stand on Business Value and Your Options?

David Shavzin, CMC
Founder, The Value Track
M&A Advisory, Exit Planning, Building Value
770-329-5224
david@GetOnTheValueTrack.com
Atlanta, Georgia
Our BLOG  // LinkedIn // www.GetOnTheValueTrack.com

Thank you for visiting our blog.

 

Jim Weber – President
New Century Dynamics Executive Search

Jim Weber – Managing Partner,  ITB Partners

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.