creating a raving fan

The Tamale Lady

She stands outside of the store with a cooler full of warm tamales. The handwritten, cardboard sign lists the three or four types she has available for sale. And just in case you don’t see her, she politely says “tamales” to passersby. Her tamales are fantastic—and her customers rave about them! It had been a while since I saw her, but there she was last week. Her price had increased since the last time I saw her. As I paid her, she handed me a business card along with the package of tamales. She now provides tamales for parties.

What a smart lady! The store sells tamales for more and they don’t taste as good as hers. She realized she could increase her pricing without impacting her sales. And she is expanding into large orders based on requests from customers. Understanding the market and customer interests is at the core of any business. How well do you understand yours?

what are your red flags?

Want to lose your top talent? Here’s how

The company was growing rapidly. Desks were tucked into every nook and cranny of the crowded office to accommodate the people recently hired. The days were long and people hardly had time to eat. So as we spoke, I was surprised to hear about the person who wasn’t carrying his load. It wasn’t clear why, but he wasn’t. So, he was transferred to the front to greet visitors, at the same pay. There he could relax, surf the net and greet the periodic visitor. People noticed. They noticed the consequence for not doing work was getting an easier job at the same pay. They also noticed they got more work. That is how you lose your top talent and keep your underperformers.

when better isn't better

When Better Isn’t Better

My dog’s favorite toys are her blankets. She has a pile of them she drags through the house, creating new piles for playing and sleeping. The flattened piles don’t look like the best bed, so when I was at Costco, I got her a fluffy new bed. It looks great and should be way better than the pile of blankets. Apparently she doesn’t think so. She sleeps on the pile of blankets next to her brand new bed. I think the new bed is better, but clearly she doesn’t.

This is a classic lesson in business. As a leader, it doesn’t matter if you think it is better. Your people, your customers, your investors and the community must think it is better too. You may need to demonstrate why it is better if it isn’t readily apparent. People will change their behaviors when they are better off. So, if you want people to do something different, understand what they believe is better. What is stopping you from getting started?

Check out my new book, Leading the High-Performing Company. You’ll find more ideas about how to lead your business to new heights.

are there new ideas

How Many New Ideas Really Exist?

The Portland Art Museum is currently featuring an exhibit called the Shape of Speed. It is an amazing display of rare cars primarily from the 1930’s. Each of the cars and motorcycles have been designed with the concept of streamlining in mind. I have to admit they are all pretty cool.

The Scarab caught my eye. Built in 1936, it has moveable chairs and a table. As I looked at it, it reminded me of designs I’ve seen for autonomous cars. It is amazing how many “new” ideas are really inspired by something that already exists. How do you get your inspiration for new ideas?

Check out my new book, Leading the High-Performing Company. You’ll find more examples of inspiration in the chapter about innovation.

are you spending time in the right place

Time is Your Most Precious Resource

It is Monday.  How often does this happen? You walk into work and look at your calendar to find a series of meetings, many of which you dread. Maybe they don’t have an objective designed to get to decisions.  Maybe they are designed to share information that can be done via memo instead of a meeting. They are all time sucks that have a low return on your time.  But, because they all appear urgent, you spend your time there instead of sitting back and determining whether the activity needs to be happen or can happen a different way. The reality is, you only have so much time in a day and it should be spent on in the highest impact areas.

Time is the one thing you can’t get more of.  You can always find more money, equipment, etc.  I don’t say that lightly, because finding more of those can be hard.  But once time is gone, it is gone.   And we all have a finite clock that we work with, so where we spend our time matters. What actions are you taking to make sure you are spending your time wisely?

My new book, Leading the High-Performing Company, shares tips on how to maximize your time.

what is language telling you?

Are you listening to language?

Last week, I was speaking with a local contractor. His day had been upended by one of his people injuring himself. The individual will be fine, but getting there required spending the day in the hospital. The conversation ended with “accidents happen.”

I was horrified. He told me through his language that he doesn’t have a safety program. People will continue to be hurt because they don’t focus on how to prevent accidents from happening.

People say a lot through the words and phrases they use. You’ll find a lot about why your business is operating the way it is. Are you listening?

does your business act with integrity?

A simple repair of a costly one? That’s when integrity arises

Last week, I was driving home at 7:30 pm when a rock hit my windshield, leaving a chip. By morning, it had feathered leaving a crack about 3 inches long. That happened before and was able to be fixed. So, I went to the place that fixed it before and was told I needed to replace the windshield. Another business was able to get me in right away and fix the crack and chip in 15 minutes. The woman at the front desk was fantastic. Upbeat, polite and helpful. They were honest and had integrity dealing with me. The experience was great and I’ll definitely go back. Which business would you patronize? Do you run your business the same way?

we're different because

We’re Different Because…..

“We’re different because…” is one of the phrases I hear regularly, either directly or indirectly. But, it isn’t typically used to describe why the business is blowing away the competition. It is used to explain poor results, typically accompanied by insults or disdain aimed at the person on the other side of the conversation. Just look at Elon Musk’s Q1earnings release teleconference. It was so bad, he had to apologize in his Q2 earnings release.

The thing is, there are business fundamentals that apply to everyone, regardless of industry. When things are tough, it is natural to feel a bit defensive. Rather than push back on the question being asked, understand why the question is being asked. It is usually a valid reason and an indication something is missing in the business. The only time to use “we’re different” is to describe unusual success.

how much friction is in your business?

Is the friction in your business higher than you think?

The roads in the area are in the process of being repaved. When I moved here, they were in bad shape and have worsened in the decade since. Ruts, potholes, and rough pavement made the drive an adventure. But it wasn’t until the freshly paved lane stood next to the lane waiting to be repaved that I realized just how bad the old one was. The freshly paved lane was quiet and smooth. Switching lanes brought a significant amount of noise and vibration from the rough surface.

The thing is, things wear down over time. They don’t work quite as well. The friction increases. And it isn’t until they are fixed that you realize how bad it was. That’s why it is important to have measures in place to signal when it is time to make a change. If you go by feel alone, you’ll miss when it is time to pull the trigger. How are you measuring the friction in your business?

the sunk cost dilemma

The Sunk Cost Dilemma

Last week I called “customer service” to resolve an a billing error. It should have been a very simple fix. I thought I’d be on the phone for no more than 10 minutes. An hour later and 4people, the issue was resolved, kind of. I was mad I wasted an hour of time on such a small issue. Once I was on the phone, I didn’t want to hang up as I was transferred from person to person. I had already invested a lot of time. Surely, the issue would be resolved in a few minutes. It was the classic sunk cost dilemma.

In business, we keep investing in products, services, capital, facilities, etc. because we think it will just take a little more time and money to achieve the results we want. But sometimes continued investment is not worth it. There comes a point when you are just throwing good money after bad. That is when you need to recognize the costs are sunk and should not be the reason to continue investing.

Do you have a method for evaluating whether continued investment is warranted? How do you get out of the sunk cost dilemma?