Featured Coaching Excerpt - Notes & Transcript, Part 1
Inventory Control: Use a checklist for everything.
Action Step: Create a checklist for every item that employees use to do their jobs.
Action Step: Create a checklist that requires a signature line for the employee and manager for checking in and checking out equipment. Make sure employees know they are financially responsible for any lost or broken materials.
Notable Quotable: "People are only going to respect what you inspect."
Inventory Control: Share the responsibility
-Have you ever wondered what these Thriver of the month mentoring sessions looks like? Well, Daniel McKenna here. And today we are here with Clay Clarke and the Thriver of the month winners, AJ and Steve Hulsey. They own a window and glass service company, specializing in window repair and insulation.
In this training with the Hulseys, Clay will go over topics like creating value for your business, managing time to grow your business, pricing your product or service, search engine optimization, and many others. Let's waste no more time and get into this mentoring session.
-It is a subject near and dear to my heart because we used to have thousands of CDs and speakers and sticky fingered employees that we had to fire and all that kind of weirdness. So inventory control is huge. And also, it's a deal where I feel like, just with the attorney, you can get really screwed over on ridiculous SKUs services or products that are supposed to help you keep track of your inventory but they really don't.
So we're just going to get into the very brass tacks of this situation. I call it garage logic. But Steve Jobs started in a garage. Hewlett Packard started in a garage. It's sort of like, yeah, I'm sure I could get a scan gun with the SKU thing and a database, but meanwhile I need to get it done. So this is the garage logic.
So these are your steps here. So one, we need to use a checklist for everything. So literally, every time a guy hops out in a van, I want a checklist of every single item he took. Now, you can break them into little parts, like he took the tool box. We don't have to list every single tool in the tool box, but you want to have a tool box checklist for all those items.
So let's look at it. If you put it into your merit based pay system, you say, hey, if you break glass, this is how it comes off your check. You see what I'm saying?
That's why we're offered $27 an hour to install a window. That's huge! But thou shalt not break crap, right? I'm just telling you, it's a whole different world when people's money is involved there.
So, you have a checklist for everything and you require a signature. Now even though you have a van-- work with me on this-- this is the employee, this is the boss, check, check, check check. Great, you left with all this. Great, you're coming back with all this.
So you have over here, this is in, over here, this is out, employee, boss. Cool? Really intense, every time they go out or in, because this is what you don't do. This is what I did.
I don't check. I don't check. I don't check. I'm like, hey, Nathan, where did the mic stand go? Oh, I hadn't been here. I mean I took the van last week and it wasn't here.
OK, was it there the week before? Well, I don't know. I didn't see it last time. I guess it might have been John.
John, did you have it? I don't know. I mean, I took it and it didn't have it then. At some point it disappeared. Why? We don't know.
Then you call the event planner and you say, hey, do you have any mic stands at your event? Yeah. John left it last Friday. Whose fault is it? My fault. So people are only going to respect what you inspect, so it needs to be a part of your system there.
Now, next point, the employees have to share responsibility. They need to share the responsibility. So if you're going to give a guy a big old bonus for doing stuff, if he breaks glass there's got to be something done there. So in my mind it's like a 50-50 share. Maybe 70-30, you pay 70, he pays 30.
But something where he's like, I basically don't get paid tomorrow. Ah! And you're like, yeah, me too. Some way to do that.
Now, other stuff. I would give bonuses for taking care of equipment. Hey, guess what, buddy, you haven't broken glass for a year. So you want to do a bonus for doing the right stuff. It's a bonus for quality.
Featured Coaching Excerpt - Notes & Transcript, Part 2
Action Step: Implement systems so that employees are aware they are financially responsible for any damage or loss incurred while they use company equipment.
[MUSIC PLAYING] -Otherwise it's just empty words. It's endless meetings. It's us meeting with the guy for the 47th time. Dude, you got to quit breaking stuff. You don't understand though.
And then it's what you do is you say-- it's a true story. Always remember this. I used to drive any one of these mystery vehicles that we can't really draw here. But it was one of these Ford Explorers. I'm just trying to give you an example. It was a Ford Explorer. It's got like four doors, whatever. My wife used to drive this vehicle. And she would drive it. And we had no issues-- no issues.
We let an employee borrow the vehicle. This was before I had these systems. He breaks the windshield. He says, well, because we're moving, I had to stop. The light stand went flying and hit it. I mean, somebody in front of me cut me off. I didn't have a system. So I talked to him. Dude.
So this probably cost me $700 to fix the windshield, this and the side. Then he comes back. He rips the handle off. I don't know what that comes-- probably $500. It's an older car, I mean. Then he did the move that is forever reminded me of why this system-- because I wouldn't do this system before I knew about it, but I wouldn't do it because I didn't want to hurt people's feelings. I didn't want to lose any staff.
He leaves the car on empty. So another employee gets driving to a wedding. No gas, nobody can help him, probably cost me $1,000 because we got to the wedding late. Now I'm really motivated, but still for whatever reason not going to do it. Just ugh.
Then my wife sits in her car, and he covered all the seats in frosting with wedding cake that he just spilled over the car. So my wife's on the way to a very important thing, frosting completely covered all over her. And she just like, that bastard. I get--
And I'm like OK, I got it. And for some reason it was only when she-- so the little drawing here is when she got mad at me, then I got mad at him. That's sort of the drawing here right. But I had to, for some reason, I had to get where I was-- it was a weird deal. But I had to get to that next level.
So we're going to have to, right now, decide how mad are we? I mean, is it a real big issue? I mean, are we getting frosting on our pants every day and we're losing 40,000 worth of broken glass, or is it like?
-Yeah, it's like eh, it's the glass business. It's going to happen. But it's coming out of my pocket, not your pocket-- my pocket.
-Oh yeah, I worked with landscapers this year. Same deal. We talked about a half dozen times. Finally I was like, listen, are you two bastards mad about it, or are you mad about it? I mean, are we mad about it, or are we just mad about it? Are we talking about it, or we done talk about it? What is the situation. They were like, are we done talking about it, or we going to talk about it? Because if we want to talk about it again, we'll talk about the same thing we talked about last week. And you're like, we're going to do it.
So you put in this system, if you break the weed eater, comes off your check, whatever the cost of the repair is. You break the mower, well guess what happened? First guy breaks something, you can't do that to me. You're like no, we put it in their operations manual. You've signed off on the handbook. You knew it. We're charging you.
Well I quit. Good. He quits. The next guy comes in. He understands it's part of the job. Now everyone understands it's part of the job and now it's fine. So yeah, $50,000 a year turn around on broken equipment just by getting it. So this has to be like a-- making sense?