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| INSIDE THIS ISSUE |
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| 7 SECRETS TIP |
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| Be Patient and Persistent |
 Most people who want their plans to happen have a tendency to be impatient. In contrast, Great Entrepreneurial Masters (GEMs) are patient and persistent in their negotiations. Too many people approach negotiations believing the deal has to get done quickly. This makes them vulnerable because the longer the negotiations process continues, the more they press to come up with an agreement.
To learn more about how TAB can help you develop your negotiating skills, contact us at 720.304.3300 or Blair@TABDenverwest.com. |
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| OPERATIONS |
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| Incentive Plans |
We divide our employees into three groups for compensation.
Group A—“Bring the Meat.” These employees are the ones who make the company go. We want to keep them for the length of their career. They receive long-term incentive plans, the value of which grows with the company. Our objective is to compensate them at a level that will change their lives.
Group B—“Key Managers.” These employees make our operations happen month after month. They have great influence over expenses and profits. They work with individual incentive plans. Each is custom-developed for a specific manager and contains written personal and departmental objectives.
Group C—“Rank and File.” Their incentive plans are built around increased productivity. We do not grant cost of living or longevity raises. In order to encourage everyone to pull together as a team, we have a company-wide profit goal. If we fail to achieve that target, no one gets an incentive.
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Juan Pablo Cabrera, The Rooster Group, San Antonio, TX |
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| STRATEGIC |
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| Develop Metrics to Monitor Performance |
In our business, which is a truck and automobile service center, we are continuously developing and assessing the right metrics to monitor each department’s performance. Due to the labor intensive nature of our business, measuring the “total revenue per billed labor hour” provides a quick, ongoing assessment of the efficiency of our technicians. Another metric, “total revenue per invoice,” adds a dimension for improving customer service as well as labor efficiency.
These calculations are performed monthly, but could be available more frequently if desired. Although we also issue financial statements monthly, we no longer need to wait until the month-end close to know how we are doing. The metrics we’ve adopted allow us to monitor performance quickly and efficiently. |
Dennis Broehm, Accurate Service Center, Appleton, WI |
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| HUMAN RESOURCES |
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| Plain English Office Policies |
| As employers, we are frequently frustrated at our workers’ inability to understand policies that are plainly spelled out in employee manuals. The reality is, when a new employee is unsure of a policy, he or she usually asks the coworker they are most comfortable with. That is likely to be another new or lower-level employee. The answer given has no better than a 50/50 chance of matching your written policy. In our company, we are developing FAQs to go with each section of the policy manual. They are “plain language” answers to such questions as, “Can I wear shorts on a Saturday service call?” |
Randy Smith, Forum Systems Group, San Antonio, TX |
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| HUMAN RESOURCES |
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| Excuse Management |
| Salespeople often offer excuses involving things outside their control as to why they have been unable to meet their quotas. These excuses may or may not be valid, but each one needs to be examined, dealt with and systematically removed. Once the excuses have been taken away, then you can evaluate performance accurately. |
Stuart Tenzer, New Horizons Computer Learning Center, Commack, NY |
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| HUMAN RESOURCES |
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| Minimum Wage—A Competitive Tool |
| While discussing the impact of minimum wage laws, our managers realized they can only help us. We already pay above minimum wage, so our competitors will have to increase prices or decrease their margin to comply with the change. In the meantime, our employees see us as the better company to work for. Regularly examine your wages, not only against your direct competition, but against the other industries in your area. |
Dennis Schulte, DRS Acquisitions, Woodbury, MN |
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The Alternative Board® brings business owners, CEOs and presidents of
non-competing businesses together in boards, where members can present
challenges and opportunities to the board for seasoned, practical advice
from other owners who understand one another's perspective and contribute
meaningful solutions. The boards consist of up to 10 members, meeting
monthly under the guidance of a TAB-Certified Facilitator. Over 300 TAB Boards are operating each month across the United States, Canada and South America. Since its inception, thousands of businesses have benefited from membership in The Alternative Board®. For more information on The Alternative Board®, visit www.TABBoards.com |
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