Posted on Tue, Oct 30, 2007
One of my oldest friends has worked for a company for the last 26 years. She was complaining to me the other day about a scenario that took place in her office. Although it is not exactly a retail story, there are some universal management elements we can all learn from.
There are 4 characters in this scenario. The first is my friend of 40 years who is an Administrative Assistant to the Sales Manager. Her name is Rachael. Understand, she has worked in the department for 20+ years so she knows what to do and has seen many changes and managers over the years.
Then there is her boss, the Sales Manager, who has had this job for the last 5 years but she has also worked in the department for almost 15 years. We will call her Bobbie.
The other two characters in this little scenario are the new Vice President, named Lester, and his Administrative Assistant. The VP has been with the company for only a year and his assistant arrived at the department shortly after he did. However, the assistant that we will call Hilda has worked at the company for almost 10 years.
Bobbie, the Sales Manager, was always in charge of sending flowers, fruit baskets, or cards for any happy or sad event to all of the members of the Sales Department. Events ranged from hospital stays, to new babies, to the loss of a parent or spouse. She would spend about $50 and probably sent things out 8 to 10 times a year. The business always paid for the gift and Bobbie included the gift in her expenses.
Well, the plot started to develop when Bobbie had a baby. Rachel, Bobbie’s assistant, took it upon herself to order the customary $50 floral arrangement congratulating the birth of Bobbie’s new son. Rachel mentioned it in passing to group of people from the department in the break room as something she had to do. She said that because it always fell on her shoulders to actually do the ordering.
Hilda, the VPs assistant, was also in the break room when it was mentioned. She went to Rachel’s office to inform her that the budget had been eliminated for any type of flowers or gifts to employees. She also informed Rachel that she would have to personally pay for anything that she sent. However, Hilda was also taking a collection from all of the employees to send a restaurant gift certificate to Bobbie
Finally, an email was sent from Lester, the VP, announcing the birth and how nice it was that everyone was chipping in to give a gift and he would be contributing as well.
Needless to say the gossip mill was now running at full capacity. Here is where the problem is. Lester, in his short one year tenure at the company, had leaned on Bobbie for her experience and had both complimented and expanded her scope of responsibility. Yes, she even had a substantial raise. But why make an example of a key employee? Why have all of the employees wondering if that is how he treats his key people, then what could he think about them? Why did he send his assistant to deliver an obviously sensitive message? Why did he create this friction over a silly $50 assortment of flowers that lead to more lost hours of productivity than $50?
Why would Hilda risk her working relationship with a well respected member of the department to have a reputation as being the department snitch? Do you think anyone is ever going to trust her or say anything in front of her again? Hilda cooked her own goose and she will live to regret her actions.
Yes, it’s only a $50 basket of flowers but it’s always those little things that tell a lot about a person. This man’s management effectiveness has taken a blow and this incident and actions speak volumes. Why didn’t he first send flowers on his own? How do you think Bobbie felt about it? And you just know it will get back to her.
My take is simple. This is much ado about nothing. What a rookie this VP must be to allow such nonsense to occur. Think about it–a non-issue becomes an issue that wastes more time and money than it’s worth. It also puts into question his management capability. Perhaps he is just a manager because he sure isn’t a leader. Leaders lead by example. They focus on the big picture and have a mission in mind all of the time. What kind of example is he creating?
The lesson is simple. Don’t win battles that weaken you to a point where you can never win the war. It’s the soldiers on the front lines who win the battles but leaders must keep their morale up. This man and his flunky lieutenant made an issue where there should never have been one. Examine how you are spending your time on and don’t let the rumor mill get started over stupid stuff. Are you moving the cause ahead or are you just getting stuck in battles that should never be fought?
It’s a lesson we can all learn from and many of us have been there before. Commonsense goes a long way but unfortunately commonsense isn’t so common.
Thanks for reading and have a great week!
Posted on Tue, Oct 23, 2007
Last week I had a very interesting job–a type of assignment I had never experienced before and will never forget. I worked for a credit company that makes loans and consults with farms and farm related businesses. I was asked to present because many of these farmers had expanded from temporary farm stands into full blown retail operations and the credit company wanted me to share my retail expertise.
I was speaking to consultants and credit professionals for two days, after which the consultants and credit people were broken down into four teams of 6 or 7. The next activity was a field trip to visit a farmer/retailer. The owners were there to answer questions and the teams were given a 35 page report about the business with facts and figures. The teams then had to prepare a presentation the next day as to the condition of the business and what they could do to expand and become more profitable. (They worked until the wee hours of the morning preparing.)
The next day the four reports were presented to three judges, myself being one of them. The other two judges were interesting as well. One was the VP of Product Development for Timex and the other judge was the VP of Consulting from the hosting company.
These teams really worked painstakingly through every detail of the business. It made me feel good that all of the teams incorporated many of my retail principles in relationship to ecommerce, signage, data base marketing, and visual merchandise. Each presentation was a full color, customized presentation in PowerPoint. Picking the winner was tough but the deciding factor came down to the smallest of details. Actually, there were really just two areas where they nudged out their colleagues. But it is a bit uncanny that the two areas for a consultant’s presentation are the exact two areas that will determine a retailer’s success as well.
The first was in the quality and attention to detail of the presentation. It just looked good. It looked professional. The basic recommendations were just about the same but the way it was presented made it look better. Does this sound familiar or what?
The second area was in the simplicity of the presentation. They made it simple to understand and easy for the store owners to act upon. They didn’t give them an information dump or a daunting list of things to do. Are we sometimes confusing our customer with too many choices?
There were other lessons to be learned from this exercise that came from the other judges. The VP from Timex, who was a brilliant, soft spoken engineer from Germany, stressed the importance of testing and evaluating. Ideas can sound good but before any business jumps into any new product, initiative, or strategy, it must be tested and evaluated at various stages. We have all seen great ideas that never make it and products that we thought were duds become winners.
Create time tables and expectations for every project. That way you will reduce the risk and be better prepared for the big successes. So many times we make a decision without planning for the stages of testing and evaluating. That would have saved and made me a lot more money over the years!
Having said all of that, there was something said by the VP of Consulting that really stuck with me and was the real motivation for this article. He summed up the competition this way. He said that if the four teams and the judges were to come to his house they would be able to recognize things that needed to be done. The garage needs to be painted, there are some dead shrubs that need to be removed, and yes the leaves needed to be raked. He said, “I know that.” The bigger question for a team of consultants is not just preparing a list of what needs to get done but rather to try to determine why these items haven’t been addressed and to figure out a plan of action that is required.
He proposed that more than three priorities to address would be a too much. Objectives must be broken down into small bite size pieces that are doable with realistic time tables. He was addressing his consultants when he said that most of the businesses that they will consult with know what needs to be done but they don’t understand how to get it done. He suggested that you can have a laundry list of all the things that need to be done but a to-do list of just three things. Focus. Focus. Focus.
How many times do we make out a to-do list that is so intimidating that we get frustrated before we even get started? How many times do we try to look for answers from someone else when we might have the answers ourselves? Trust yourself. My experience tells me that many times you are much better than you think you are.Thanks for reading. Have a great week.
Posted on Tue, Oct 16, 2007
It’s Monday afternoon and I am just getting to my desk to work on my article for this week. I have been on the road all week traveling to eastern Connecticut and then three super days in Nashville, TN at The Opryland Hotel. What a great facility to work and stay at! Normally, by this time of the week, my article is all done and just waiting to be sent out but this week is different.
Last week I shared some ideas that I have used in hiring the right people. I asked my readers to share some of their best ideas and said that I would publish them. That’s what I am doing this week. There are some real gems here that I plan on using and sharing but the biggest gem of them all has nothing to do with hiring. Think about the power of this newsletter and emails. I never dreamt I would be creating a community of retailers helping retailers but it sure is a nice feeling knowing that I did. I will be doing more of these. Enjoy and learn!
I consider myself to have an employee guardian angel and have been blessed with some incredibly talented people over the last 10 years. When I hire I go with my gut- do I like them, trust them and does it feel like a good fit. Often they are the not the best resume we receive but they evolve into the best hires. I am very honest about what I am like to work for- the good, the bad and the ugly. People appreciate it and it sets the tone for the work environment they are entering.
Joan Schnee
On Paper
Columbus, OH
Hello Rick – My supervisor provided me with a very interesting question for interviews. It follows your idea about thinking on your feet and can give you some interesting insight to a perspective employee!! We ask them to give us the name of 3 people they admire and why. The people can be real or fictional, alive or dead and from any walk of life. Thank you – this was a very timely email for me!!
Judith A. Hurlock
Walters Art Museum
Baltimore, MD 21201
An HR mgr. friend of mine shared a great tip that I use as a standard question now. She said it had revealed a wealth of information for her and saved her firm thousands of dollars. Here it is: “Is there anything that might be revealed in a background check that you would like to tell me about now?” Another of my favs is…”What do you like to do in your free time?” This one can speak volumes about a person as well. Feel free to use my name.
Connie Barr
Magical Creations Btq.
Portland, Or. 97213
I like to give potential employees a scenerio and then ask “how would you handle this situation?”. Even if their response is totally different from how I would handle a situation it doesn’t mean it is necessarily the wrong way. It sure tells you how the person 1) interacts with others and 2) thinks on their feet!
Tom
Here are a couple of tips that have made a difference in our hiring success.
1 – If a resume or application is hand delivered, that’s the first interview. The quality of dress, attitude and professionalism exhibited often exemplifies what we can expect over time if we hire this candidate.
2 – We have a place near the bottom of the stairs where we put boxes to be taken up to the people who handle our mail order returns. As I walk with an applicant to our conference room, also upstairs, for their interview, I grab a couple of boxes. My best hires usually offer to carry a few boxes as well. If they don’t I have to wonder if they will be self-starters once they are hired.
3 – Walk and talk. I get a great impression as we walk to the interview room. The applicant is not nearly as nervous as they are once they are sitting across the table from the interviewer(s).
4 – When interviewing a phone customer service applicant, the first interview is done on the phone and is not treated like an interview – just a follow up question to hear their phone voice. During the on-site interview one current supervisor is sitting outside the interview room, listening to the applicants voice and communication style. The customer service will be on the phone so it is important to listen without the benefit of body language – listen for sincere smiles!
Dee Wendel
I really like the questions you proposed and I am going to incorporate them into my interview process. There are two questions that I ask that tells me a lot about the person and that is for them to tell me some of their ” greatest strengths” and then some of their “greatest weakness”. This puts them on the spot and I am get some very honest answers from the especially the weaknesses.
Gwen Wilburn President/CEO
Independence Chamber of Commerce
Always look forward to your weekly newsletter. With regard to hiring tips, some businesses may find value in performing a background check on the individuals they are considering hiring. In our state, the State Patrol maintains a data base of convictions ( note, only convictions, not arrests) that is accessible on line for about $10. As one who does not like unpleasant suprises, I find this a cheap cost of doing business.
Larry Johnson
Corvette & High Performance
Olympia, WA
I always finish any interview I sit on with this question – “Why should I give you this job?”. I have found the answers offered to be most revealing. I was asked this many years ago. It initially caught me by surprise but, after a moments thinking I must have given the right answer as I got that job. Regards,
David Laugher
David’s Mainstreet Furniture & Decor
Moruya NSW Aust
Always do a background check and a credit check. If you hire someone with credit problems and a lot of debt they may be tempted to steal. Someone with credit problems have made some bad decisions and usually will continue to do so. No matter how great they may be during the interview, beware of applicants with bad credit.
Don Willingham
PGA Member
Golf Etc. of America, Inc.
Granbury, TX 76048
Great e-letter. I appreciate all your suggestions. Here’s a few of my tips: When interviewing, I like to ask these questions:
If you could take any class, what would you take? (Give you insight into their weaknesses that they need to work on, or their hobbies — and if oftentimes opens a new topic of conversation.)
What did you like about your last boss? What didn’t you like about your last boss? (This gives you an idea of how they like to be managed… or not.)
Tell me about when you had a really great customer service experience. (If they don’t know what customer service means it could be a problem.)
Thanks for all you share!
Karen Burdick
Paramount Sewing & Vacuum
When I managed a garden center, I would hire regular shoppers. When I noticed a regular customer that had the same passion for gardening that I do, and know how much grunt work goes into gardening, I would say to them, “you should work here.” It worked well. We got hard working, knowledgable, passionate employees, and they got a discount on their plants. Try it, it works.
Mary Ann Mingo
After many years as a job search coach, here’s what I told my clients who were looking for jobs: The decision to hire is the decision to like. Personality cannot be trained, job skills can. Be prepared to answer the question Tell me about yourself …
Robbie Grady
Goffstown Main Street ED
Thanks again for great advice, I really enjoy reading your pages. In the retail industry it helps to find people who know how to talk to customers and interact with the public. With this in mind, we have had success in our interviews by finding a unique item in the store and having the potential hire “sell” that item to us. We found that a little role-playing helps them understand your needs and their strengths and weaknesses. Hope you can use this tip. Thanks,
Kendra Zern
Z Games
Vancouver, WA
We love your articles here but you probably hear that all the time. Anyway, what I like to do is walk an applicant to his or her auto. If it is dirty and loaded with junk in it I won’t hire them. My feelings are if they think that little of themselves then how can I expect them to take care of my business and customers. I have made exceptions over the years but not a single one has ever worked out.
Will Frothingham
Store Director
Birmingham, UK
There you have it. Thank you for your input. I hope you enjoyed. I also appreciate all of the tips people sent in that asked not to have their names appear. I elected not to publish those for many reasons but mainly because of the length of this piece. I will compile them and use them in another article at a later date.
Have a great week!
Posted on Tue, Oct 09, 2007
Sometimes I look at companies that grow and prosper and compare them with companies that seem to hit the wall at a certain size. The difference comes down to the person on top. Great managers build great companies. But what makes a company great are the people they employ. Certainly, great managers inspire and get the most out of their people. Many times jealous competitors will dismiss the company’s success with comments about how easy it would be if they had employees “like that”!
Even the great Jack Welch, the legendary Chairman and CEO of General Electric, said that his greatest asset was finding, attracting, and keeping great people. He openly admits that without his people GE would never have been what it had been.
All I know is that these companies hire right. I would like to share a few ideas about the hiring process. Let’s start with some of my most favorite interview questions.
1. What is the most important feature to you in a job?
This can be a very revealing question. If they answer a long lunch, I don’t recommend you hire them. But if they say things like learning new things or I like to be challenged, these would be more appropriate.
2. Why did you accept your last job?
If they answer “Because my mother threw me out of the house”, this is not a good sign. However, if they say things like I needed to gain experience to make me feel confident about applying for this job– this would be a better answer.
3. What did you like the best about your last job?
Lunch again doesn’t make it. But if they say the people or the customers, you might have the right person.
4. What did you like least?
If the answer is the boss wouldn’t let us take calls on our cell phones while at work, that would be a bad answer. But if the answer is that my last job couldn’t allow me to reach my full potential, then you are on the right track.
5. What is the most important feature you look for in
a supervisor?
This is a very important question to ask because if you hire this perso, they are stating exactly the best way to handle them. Somehow it’s much easier to ask this question before you hire someone than after they are working there. It could a roadmap to success.
6. Where would you like to be in 12 months?
If the answer is in Hawaii or back home with their sister who lives 2000 miles away, then don’t waste your time training this one. This seems like such an easy question that somehow we forget to ask. Unfortunately, there are people who will take a job with all intentions of only staying therefor a few months. Yes, many of these people will lie to us during an interview and that’s why it’s important for us to watch the applicant’s face when they answer the question. Many times we can tell when someone is lying.
7. What goals do you have?
This is a trick question because very few people can answer it without thinking about it for awhile, like a few days or so. You ask the question because the definition of true intelligence is knowing what to say when you don’t know what to say. See how they respond. Can they think quickly on their feet or are they acting like a fool? The retail business people need to be able to adapt quickly to so many different people today and having someone who can think through awkward situations is important.
8. Tell me about that
Those are the 4 most important words during an interview. When someone revels something about their past or goals, always follow it up with a simple “tell me about that”. Your goal is to make the candidate speak as much as possible.
Two last tips
- Always hire attitude and train the skills required to get the job done. Attitudes are tougher to find and besides give me someone with a great attitude and they can conquer just about anything.
- Lastly, remember this simple rule: There is always an opening for someone good. I say that because great employees cost you nothing. They somehow always make things happen.
If you have a hiring tip to share I will publish them all next week. Also, if you want me to quote you and use your name, please indicate that. Otherwise I will continue my policy of withholding names.
Send your tips here: elist@RickSegel.com
Posted on Tue, Oct 02, 2007
This is the result of last week’s survey question about the store that was trying to decide what to do about her business. If you didn’t read the article you can read it at www.ricksegel.com/blog. Here are the results and I want you to know that my response was not the most popular. So I guess I am going to have to justify why I suggested what I proposed.
But first the results:
a. Close now and face the consequences
received 3%
b. Wait till next summer and close then
(my suggestion) 39%
c. Don’t give up at all and wait till
the end of July to make any decision
like that 46%
d. Try to sell the business, get what
she can get, and even take a small
loss if she has to 12%
Here are some of your comments:
“There is another option which is a combination of the choices. Try to sell it now but prepare to close it if you have to.”
“It’s not that the person is in debt that concerns me, as much as her attitude toward debt.”
“So she bought too much inventory. What retailer hasn’t?”
“Ok its timer to cut expenses and look for every way possible to generate revenues.”
“Why not try to take on a partner and also check out the Small Business Administration for some help.” (Some great ideas.)
“I need more information before I could make such a decision. But based on what you have given me I would have to choose C.”
“Why couldn’t she make some money from the local people. Maybe they will come out for a sale like this.”
“It’s time to have the owner fall in love with her store again. If she turns this around she will feel so good about what she has accomplished.”
“What about if she leases out a portion of the building to another store to reduce her expenses and expectations.”
“Re-merchandise the store and buy more accessories to brighten up the store and make it look fresh and exciting again.”
“Rick, I am surprised you didn’t offer an online solution. Such as E-Bay or setting up a store front online. She could donate things to a charity for the tax benefits.”
“Have a sale and everyone that buys at least $50 worth of merchandise gets a gift. I gave a box of candy. No one left without spending at least $50.”
Here is the most unique comment that we can all learn from.
“Take a vacation, forget about the store for a while. When you come back you will be refreshed with a new perspective.”
Here is my defense:
Please understand that I am first looking at this from a financial point of view. I don’t want this store owner burdened with debt for the rest of her life. I have seen many retailers close their doors selling one type of merchandise, then reopen selling something else very successfully. They simply reinvent themselves. Sometimes just a change of locations can invigorate a business.
I was very friendly with a couple who had a business similar to mine, a specialty moderate to better women’s fashion boutique. They altered just about everything they sold. They closed their doors and opened a sportswear store and did very well with half of the expenses.
Where this store is a seasonal store with only 8 to 10 weeks of really strong business potential, the decision to close should be made prior to the summer. Most Going Out of Business Sales last 8 1/2 weeks. The reason I rejected the wait till July option is because you want to plan this type of event long in advance and bring in the type of merchandise that a store can make money on during a sale like this.
The highest margins I ever worked on were during my closing sale. As for selling the business, you can get lucky but from my experience prospective buyers generally offer between 40 to 50% on the wholesale dollar. Then by the time you include fixtures and goodwill, you are selling your business for the cost of your inventory. Most retailers can run a sale that is far more profitable than that.
Let’s address the emotional side of closing a business. It’s tough even if the business is debt free. Sometimes it’s a hard medicine to prescribe but rarely do I ever hear of any regrets. Just keep moving on…
