High-Performing Contractor - Sep 2007

**************** Leadership
Leadership is more about how we act than what we say. Leaders paint the picture of where the organization is going; then step forward and take action to go there. Research on what makes the difference between average companies and high-performing companies always agrees that having and following a vision is essential. Creating that vision takes some work and thought; it is an investment well worth the time. [If you need help setting your vision, there are many consultants including myself that can help you do it.] Where many company executives fail is not in setting the vision, but in living it. Here are 10 ways to live your vision:

1. Talk about your vision every opportunity you get. Tell what it is, why it is important to go that way and share your ides about what the company would be like when the vision is achieved. Managers usually under-communicate key ideas by a factor of ten.
2. Put your vision statement at the top of every agenda and begin each meeting by asking such questions as:

· What is our vision?
· What has anyone done this week to move us towards our vision?
· What is the most important action we can take today/this week to work towards our vision?

3. Wherever a key decision is to be made or a new job is considered, ask, “How will this move us closer to realizing our vision?”
4. Catch people doing things right. Watch for someone doing something that supports your vision, and praise him or her. Create a Living the Vision certificate or award and give it to those who live your vision.
5. Do a vision alignment review by looking at:

· Department plans and goals – do they align with your vision?
· Company practices and policies – do they conflict or support your vision?
· Resources and tools - do you have the resources to reach your vision??
· Does the timing of the objectives reflect your ability to change?

6. Have your vision statement appear on all your computers when starting up each day.
7. Print your vision statement. Put it on your paychecks, on company letterhead and envelopes. Print it on the front and back of business cards so when people write notes on the back they will be reminded of it. Print it on mugs, hats, shirts and other company items. Print it on posters and display them in meeting rooms and on trailer walls at job sites. Consider printing it on mouse pads and floor mats.
8. Have a discussion with your senior management team about what the company will look like when you finally achieve your vision. What would you do differently than how you do things today? How would you treat employees differently than today? Discuss how to start acting that way today. Identify how you, as leaders, need to act now.
9. Hold a supplier day and describe your vision to your key suppliers; ask them what they can do to help you achieve your vision. Ask about their company vision statement and look for alignment with yours.
10. Start a company newsletter or add a column to your existing one to discuss living the vision. In each issue give one example on how someone in the company demonstrated the vision or did something to move towards it.

A vision is a dream or becomes a reality depending on the strength of those doing the visioning. It becomes real as leaders live it. Employees will never get the vision until you live it. Do you have a vision of what your company can become? How are you living your vision today? How do your employees know your vision is real?

**************** Customer Focused
What’s wrong with this picture?

Sprint recently dropped 1,000 to 1,200 mobile phone subscribers out of their contracts. They claim these customers were dropped for calling customer service too often. The dropped group called an average of 40 calls per person/per month. Sprint claims that this excessive number of calls was keeping them from providing good service to the remainder of their 53 million customers.

Sometimes it makes great business sense to fire the customer. But as the editor of Quality Digest suggests “there’s a much bigger question: Why would more than 1,000 customers feel a need to call Sprint 40 times a month? As the infrastructure guy at Quality Digest, I make a half-dozen calls each month to various service, software, and product-support reps, and I can give you one probable answer -- poor customer service.” (1)

Just like the communications business, the construction industry has its share of strange and challenging customers. The first reaction for most contractors, when encountering these customers, is to drop them just like Sprint. Maybe they should be dropped; but maybe we should ask ourselves the golden questions: “How would I like to be treated if I were this customer? Am I being treated that way now?” There is something to be learned in every experience and a customer calling to complain can be treated as a bad experience or a learning opportunity. How are you dealing with your customers?

There is an interesting related story. The American Customer Satisfaction Index (ACSI) conducted by the University of Michigan did a survey of customer’s satisfaction with phone call service centers. Users of these services rated the following:

· Catalog call centers – 80 (out of 100 possible)
· Banking call centers – 70
· Cell phone service call centers – 69
· Cable & Satellite television call centers – 68
· Insurance call centers – 68
· Personal computer call centers – 64 (2)

In a recent survey of customers of the HVAC and Sheet Metal contractors, the customers rated their satisfaction with the contractors at 8.4 out of ten (3). This would be roughly equal to 84 on the ACSI scale. Contractors are a little better than call centers! However, loyal customers will rate their satisfaction a 9 or 10 (90 to 100 on the ACSI scale). How do your customers rate your services? How do you know?

(1) “The Pin Drops” Quality Digest, August 2007, page 11.
(2) “I’m sorry. Could you repeat that?” by Carey Wilson, Quality Digest, August 2007, page 10.
(3) “Measuring Customer Loyalty”, The New Horizons Foundation 2006.

**************** Employee Focus - The Instant Turnaround
By: Harry Paul and Ross Reck, PhD

“Do you have a company, department, team or sales force where the employees routinely underachieve, fail to take initiative, refuse to work together as a team, or intentionally sabotage the success of your organization? Would you like to turn your situation around immediately -- as in overnight? Think something like this is impossible? Think again! Last year, Jim Leyland, manager of the Detroit Tigers, took a team that had 12 straight losing seasons and put them into the World Series -- an "instant turnaround" of an unbelievable magnitude. What made Mr. Leyand's feat even more amazing is that he did it with the same players who were on the team the year before and he made it look easy!

“How did he do it? The answer is simple: He went against the grain of conventional business wisdom by motivating his players with trust instead of fear. He knew that when players trust their leader, they become confident. This freed them to turn their work into fun. When work becomes fun, even the most routine tasks associated with the daily grind of pursuing a championship become enjoyable. What Jim Leyland did was turn work into a destination -- an exciting place that the players looked forward to coming every day; a place where they came to get their batteries recharged. In return, those players gave Jim Leyland their best efforts; day in and day out, throughout the entire season and the results speak for themselves.

“If you'd like to create the same kind of turnaround, all you need to do are three things:

“Win your employees over by showing them that you care. This lays the groundwork for trust. And it starts with being nice. For example, Tony Dungy and Lovie Smith, the two coaches who coached in the 2007 Super Bowl, got there by treating their players with dignity and respect instead of cursing at them or sarcastically chewing them out. The lesson here is that if treating people with dignity and respect (being nice) can result in Super Bowl appearances, just think what could happen at work if managers, supervisors and team leaders in business adopted this same leadership style.

“Single out those people who have just gone the extra mile and blow them away with your expression of appreciation. Make them feel so good for having done so that they can't wait to do it again. For example, instead of merely saying "thank you" to someone who has just gone the extra mile, do something like recognizing them at the next department meeting or send a letter to the general manager or company president touting this person's "above and beyond the call of duty" contributions to the company. This will not only motivate that one person, but it will also encourage the whole staff to search for new opportunities to go the extra mile. And it will dramatically increase their level of excitement as well.

“Make sure you do those things necessary to win people over and blow them away on a consistent basis day in and day out. Keep in mind that employees don't like being treated like "light switches" -- where you turn them on when you want something and then ignore them until you want something again. This sends a clear message that you are taking them for granted which says you don't care. Once people receive this message, they become "turned off" about going the extra mile for you.

“As you put these three steps into practice, you'll find that an instant turnaround is not only possible; it's very doable. What's more, you won't have to wait a month, six weeks, or a year to see results; you'll notice significant improvement the very first day! These steps are easy to execute, cost nothing and the big winner is YOU.”

Source: Jeffrey Gitomer's Sales Caffeine Issue 280

**************** Thought for the day
We are what we repeatedly do. Excellence, therefore, is not an act but a habit.
- Aristotle

For more information about the High-Performing Contractor assessment process contact Dennis Sowards at 480-835-1185 or at dennis@YourQSS.com