Featured Coaching Training: SCALE or Fail: Build Your Business With the Big Picture in Mind
Every business has several key systems that when run properly will help the business to be profitable. This series will coach you on a duplicatable and trainable system that can take your personal life and business to a higher level of excellence.
Featured Coaching Excerpt - Notes & Transcript, Part 1
S.C.A.L.E.: Accountability Focused
Notable Quotable: "Being nice to people is just 20% of providing good customer service. The important part is designing systems that allow you to do the job right the first time. All the smiles in the world aren't going to help you if your product or service is not what the customer wants." -W. Earl Sasser Jr., Leonard A. Schlesinger and James L. Heskett (Service Profit Chain)
Action Step: Determine the merit-based pay system that you will use to incentivize the behavior that creates value for the business.
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Lesson Nugget: The checklist acts like the "referee" in a game that keeps you on target to accomplish your tasks for your business. Checklists keep you accountable.
- Absolutely, I think this next one is extremely important. Especially the letter C, it stands for accountability focus. It's talking about here on the scale system. Accountability focus. This notable-quotable here, it's by Sir Earl Sasser Junior and Leonard A. Schlesinger. Help me there with my Spanish.
- I'll tell you this, this book, and I wouldn't get I wouldn't get hung up on that author's name. I'll tell you what, this is service-profit chain and the only thing we need to know is this is from Harvard. The Harvard Business School.
- [Speaker 2] There we go. There we go.
- The service-profit chain. And this notable-quotable will blow your mind.
- It says this, "Being nice to people is just 20% "of providing good customer service. "The important part is the signing systems that allow "you to do the job right the first time. "All this smiles in the world aren't going to help you if "your product or service is not what the customer wants."
- So accountability, we're talking about accountability. Is what you're doing, is if you had the rules. Let's say we're making the rules of football, okay? And again I know we have a lot of Thrivers who think that football is soccer. So I'm gonna go with the soccer mentality here. Soccer, you can't use your hands to score a goal. You can't hit the ball with your hands into the goal. You can use your head, you can use your feet. Those are the rules. And so what will happen is occasionally a player will try to use their hand and act like they didn't do it. And the referee will blow the whistle or whatever happens right? And then they go, "Hey, you know home skillet, "you can't do that, it's against the rules." And there's certain penalty or the ball, either the other team gets the ball, whatever. But the point is you can't do that. So in business, you have these checklists that you make but if you don't have a referee, if you're not the referee. If you're not willing to occasionally call a foul or call a penalty when someone doesn't follow the checklists. They're not gonna get done. So you gotta have an accountability focus where you actually account for each thing and make sure things are done properly.
- [Voiceover] Right, right.
- And that's really what we're talking about.
- Because that checklist keeps you in point, keeps you in target, keeps you focused on actually accomplishing the tasks and the items that need to be done for that day.
- Now I'll give you a little story. I worked years ago with a medical business in the dental world and this dentist was awesome. Neat guy and I'm one of the coasts here and I'll give you all the details but he, on the coasts. And he bought this molar machine to make a molar in an hour.
- [Voiceover] Wow.
- So people were like, "Yeah, well, I guess I'd like "to have my molar made in an hour." So they, fortunately, people need to have a replacement tooth if they have the molar made and it would take them like 12 hours. Well, the dentist is like, proudly telling people, "Hey, the molar would be ready in about an hour." And then he peaces out, right? Well his staff had no sense of urgency. So that one hour molar was taking people 12 hours. Well, how did the customers feel who paid a premium for the one hour moral that wasn't ready until the next morning?
- [Voiceover]I'm guessing extremely disappointed.
- Yeah but because there was no--
- [Voiceover] And frustrated.
- But because he did not know they weren't doing it, he couldn't hold them accountable. But once he put in a system, there was a merit-based pay system. And think about the companies that have this. You have QuikTrip, you've got Starbucks, you've got Disney.
- [Voiceover] Oh yeah.
- American Air. You got the Southwest Airlines, UPS. These are companies that have a merit-based pay system in place. Think about how different Southwest Airlines is than most major air carriages. Think about how QuikTrip gas stations, how much different they are than other gas stations. Maybe you don't have one near you but think about like a Starbucks. How much different that is than the typical coffee shop. They have accountability systems they put in place and merit-based pay where people get paid based off of the results they deliver not based on the amount of time that they spend on something.
- [Voiceover] Oh wow.
- They get paid for the results they deliver not based on the amount of time they spend on something. And by putting up a merit-based pay system, you're paying people based on the results not based on just the hours they're working. So what that does is it forces an accountability and you need to do that. Everybody here has to have a merit-based pay system of some kind.
- [Voiceover] So an action item for this specific item that we're talking about.
- [Clay] Yeah.
- Doing our checklists is... Determining the merit-based system that they can, our Thrivers can begin to implement in order to move them forward.
- Yeah so, I'm just going to give you a specific example. If you right now own a donut shop. And you're paying the guy. Say you're paying him $10 an hour to make donuts. I would recommend that you lower his pay to $8.50 an hour. And then you'll say, "Hey, I'll pay you $11 an hour "if you complete your checklist at the end of your shift." So instead of talking to the guy over and over and over about, "Hey, could you please try to remember "to clean up when your shift is done?" Just say, "Hey, right now I pay you $10 an hour, "I'm cutting your pay now to $8.50 an hour. "But if you do your checklist, "if you just doall of it. "If you follow the checklist and you check off the items, "you mop the floor and you do everything, "everything you're suppose to do anyway. "If you finish it completely and wholly, you fully do it. "You execute it to the best of your ability. "I'm gonna go ahead and bonus you out an extra dollar "more than you're making now."
- That's really powerful because you're incentivizing but at the same time, you're giving them, even adding more value to their life.
- I like to pay people more than most people would pay them based upon. So, we have guys in our office who do search engine optimization, article writing, we have video editing. And I like to pay somebody the same rate whether they take four months to do the video or they get it done in a few hours because I want people to go fast and to hustle. If you're a search engine optimizer, you get paid per article not per hour. That's how you have to do it. And so, as we go into our next point. I want to make sure that if we go through the time. Think about this, if we go through the time. If we invest the time here today to build systems. Then we build all the checklists then we build a merit-based pay system. What we're doing has to be learnable and trainable. If you build a system that only a genius can understand, you might be dumb. So you want to build a very learnable and trainable system. The most intelligent people can build systems that anybody can do.