What If Turnover Came With An Invoice?

We all know that there are costs associated with employee turnover – reduced productivity, increased stress on remaining team members, loss of organizational understanding, time devoted to interviewing and onboarding replacements, etc. – but other than fees for job boards and recruitment services, those “costs” never require you to make a payment.  The losses are in work not getting done and income not being realized, not in money leaving your bank account.

But what if that changed?  What if every time a Team Member leaves you had to sit down and write a check?  $2500 for lost productivity until a replacement is found and brought up to speed.  $1500 for the customers who start to go someplace else because they’re no longer greeted by name when they come through the door.  $5000 for the employee who is looking for another job because they are now trying to do the work of two people. 

Would you start to pay closer attention to Team Members’ Engagement and Morale?  Would you start to have more frequent conversations about career goals and opportunities?  Would you (could you?)  put more effort into getting to know your Team Members and building real relationships with them? 

If your electric bill goes up, you immediately start to look for ways to reduce it.  If the costs of repairing and replacing equipment get too high, you look at improving your care and maintenance programs.  You shouldn’t have to receive an invoice for “Cost of Jill Leaving” to begin to look at turnover the same way.

3 Incredible (and Impactful) Days

For Leadership Development Workshops to be successful you need to start with great content. But great content is just that, the start.

The foundation of the Annual Marco’s Leadership Institute Gettysburg Workshop is the world-class content and experience provided by Diamond6 Leadership & Strategy. Following their model of “Learning from the past to prepare for the future”, participants are presented with the events of July 1863 and then asked to examine and apply the modern day leadership lessons based upon that history. They experience that learning in one of the most historic and important settings in the United States… the impact of Lincoln’s Gettysburg Address is multiplied ten fold when you are standing within yards of where the Address was delivered.

But as I said, the Battlefield component of the workshop is the foundation.

Leadership Development should also be an “experience”. To paraphrase one of my favorite authors, Priya Parker, a chance “to ‘Gather’, to create meaningful and memorable experiences.”

The MLI Gettysburg Workshop is purposefully designed to bring together a diverse group of individuals – Franchisees, Marco’s Pizza (Marco’s Franchising, LLC) Team Members and Senior Leadership, and Business Partners – and provide them with the opportunity to get to know, and to better understand, one another. The fact that they are doing that relationship building (and hopefully having fun) in some incredible venues and locations only adds to the experience.

Finally, the ultimate value of any leadership development workshop or program is measured by what happens after the event; putting education into action.

MLI Gettysburg Workshop Participants spend a full day working on how they will apply the lessons that they learned on the Battlefield. They focus on self-awareness through the use of the Predictive Index and Emotional Intelligence and Leadership Style assessments, increase organizational and Team awareness through structured analysis, and finally, using the Logic Outcome Model, begin to develop both Organizational and Personal Strategic Visions.

We packed a lot into 3 days, but we’re confident that the participants had an experience that will take them to the next level on their Leadership Development journeys, fulfilling our Mission of “Inspiring the Passion and Potential within others to contribute to the Greater Good.”

Leadership vs. Management or Leadership + Management?

One of the most often asked questions: What’s the difference between Leadership and Management?

If I’m in a rush, the answer is, “Management gets you through today; Leadership gets you to tomorrow.”

It’s quick, it’s concise, and it isn’t wrong.

Leadership is about creating and communicating a strategic vision. It’s about putting together, and sustaining, a team that will be productive for the long haul. It’s about nurturing a curiosity that will insure you organization is riding the wave, not getting wiped out by it. Ultimately, Leadership is about the future.

Management on the other had is primarily focused on day-to-day and week-to-week results. It’s about scheduling and production and controlling costs. Management provides the solid business operations that make planning for the future possible.

What makes the Leadership vs. Management question tricky is that when it comes to individuals, there often isn’t a clear line between the two: Most Leaders have solid Management skills and most Managers, especially the very effective ones, have strong Leadership skills. The most important distinction is where they focus the majority of their time and energy. A strong Leader can’t ignore day-to-day operations but they can’t become so bogged down in the “now” that they aren’t building for the future. Similarly, a strong Manager needs to be able to think long-term but they can’t spend so much time doing so that day-to-day operations slip.

A much more detailed explanation from one of my favorite authors/thinkers:

What Leaders Really Do

It’s Not Versus

“…leadership and management are two distinctive and complementary systems of action. Each has its own function and characteristic activities. Both are necessary for success in an increasingly complex and volatile business environment.”

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“Management is about coping with complexity. Leadership, by contrast, is about coping with change.”

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“What’s crucial about a vision is not its originality but how well it serves the interests of important constituencies—customers, stockholders, employees—and how easily it can be translated into a realistic competitive strategy.”

Center for Creative Leadership – “15 Tips for Effective Communication in Leadership”

30-60-90 Day Onboarding Plan

I worked with a recruiter who always said that starting a new job should “feel like your birthday”. But far too often, we take the excitement and energy that comes with starting a new position and turn it into a stack of forms and a cursory introduction to your co-workers before jumping into the to-do list.

Successful onboarding, the kind that maintains that excitement and turns it into long-term engagement, takes a plan that goes well beyond the first day or week.

In this article from the Association for Talent Development, Andrew Joly lays out what a great Onboarding Plan should include.

https://www.td.org/atd-blog/the-art-of-the-start-how-to-build-and-update-your-30-60-90-onboarding-plan

“It Must Be Nice”

Confusing the “Cost” with the “Investment” of Recognizing and Rewarding Team Members

For several years I had the honor of attending the Length of Service Recognition Dinner for a non-profit that, for a whole host of reasons, I think sets the Gold Standard for Organizational Excellence.

Their general guideline was to spend $100/year of service for gifts for the employees who were being recognized: 1 year = $100, 5 years = $500, 10 years = $1000, etc.

Whenever I would tell that story, especially when working with other non-profit organizations on identifying ways to reward and recognize their employees, the response was almost always the same; “It must be nice to have that kind of money to throw around.  We could never afford to do that.”

Then I would break down the numbers…

$100/ year = $2 / week = 40 cents / day = 5 cents / hour!

Five cents per hour to say “thank you” to your most dedicated team members and recognize them for their commitment.

But more important than the cost of the gifts was how they were selected.  The CEO would personally select, and in many cases shop for, the gifts based upon what she knew about the individual.  The Elvis fan got a weekend trip to Memphis.  The fishing fanatic was given a chartered fishing trip that included his family.  The doll collector received a custom ordered, one-of-a-kind, hand made doll.  The gifts weren’t special because of the cost; the gifts were special because they reflected how much the CEO knew and cared about her team members.  (Compare that to my wife’s former employer who for her 15th anniversary sent her a catalogue with instructions to pick anything from pages 32 to 37.  The globe she decided on is beautiful, but there isn’t anything “personal” or, for the most part, “meaningful” about it.)

So, forgetting about the “cost” (at least for the moment) what can you do to show your team members how much you “value” them?  More flexibility in scheduling?  Surprising them with lunch? Replacing the generic Big Box Store gift card with one to their favorite restaurant? Or, as crazy as it sounds, budgeting the extra 5 cents per hour and taking the time to get them something that shows you know them and value their contributions?

Everything is a “Presentation”

Several years ago I was reading a book on effectively delivering your message and two key points jumped out, and stuck:

1> Every time you present you should be “acting”. You’re not being fake or even necessarily performing, but you are acting as the best version of yourself for what the situation and the audience requires.

2> Every time you communicate with someone you are “presenting”, whether it is from a stage to hundreds of people or one-on-one at the coffee machine (or over Zoom.)

In her latest newsletter, award winning speaker and author Bridgette McGowen explains how to apply her presentation approach to what is probably the predominate thing on every leader’s calendar – the recurring meeting.

https://www.linkedin.com/pulse/meetings-presentations-too-bridgett-mcgowen-xaotc/

Why Training Is More Important Than Marketing

http://nrn.com/sullivision/why-training-more-important-marketing?eid=forward

Aug 27, 2015

What is in this article?:

Jim Sullivan is a keynote speaker at foodservice leadership conferences worldwide. His newest book Fundamentals is available at Amazon orSullivision.com. Check out his leadership video series at NRN.com. This article does not necessarily reflect the opinions of the editors or management of Nation’s Restaurant News.

Sullivision.com chief executive Jim Sullivan

What is the function of a business?If you answered, “To make money,” you’re wrong. The function of a business is to attain and retain customers. The goal is to make money.

As I’m sure you know, having a full dining room, bar or drive thru is no guarantee you’re profitable. Volume can hide a multitude of sins: Chefs over-order perishable goods; cooks burn food; servers underwhelm guests; bartenders break liquor bottles; patrons knock over glassware; busers drop china-filled bus tubs; dishwashers drop forks in garbage disposals; and drive-thru cashiers over-portion napkins, sauces and condiments. Full house? Awesome. But a lack of customer retention via effective training means you just lost money tonight.

Money spent on customer acquisition (advertising and promotion) can fill a restaurant, but money spent on customer retention (training and service) makes that restaurant profitable by transforming a single visitor into a lifetime guest.

So, if our function is to attain and retain guests, which of the two is more important: customer acquisition or customer retention?

Regular readers of this column now presume that I will vociferously support and defend customer retention. And, if you’re a regular reader of this column, it stands to reason that you’re not only smart; you’re right.

When’s the last time you saw a TV ad for Starbucks or Chipotle? How about McDonald’sor Subway? McDonald’s spent $963 million in advertising last year, according to Business Insider. AdAge Data Center reports that Subway spent $516 million. Both Starbucks and Chipotle spent a fraction of those amounts in advertising. Now which two of those four brands have a stronger reputation for taking care of their employees and customers? Which ones invest more in customer retention (training and service) than customer acquisition (advertising and promotion)? Just saying.

Let’s look a little closer at the four stages of marketing and the role that training plays in its success. Restaurant trial occurs either by chance or by choice. Chance patronage is just that: circumstantial patronage resulting from either proximity or error. “I ate there because it was close to work and I tried it,” or “I got lost and was hungry.” Choice patronage, on the other hand, is a much more nuanced decision, initially triggered by external marketing (ads, promotion). But sustained patronage results from internal marketing: unit-level teams excelling at execution and hospitality.

The four stages of marketing

Awareness. In this initial stage of engagement, potential diners may not have even heard of your restaurant. So advertising, promotion and social media marketing budgets tend to be heavily weighted toward new customer engagement. Your potential new diners become aware of you through these efforts. Those who miss your message may hear about you from influencers who didn’t (influencers being the one person in 10 that affects awareness in the other nine).

Consideration. This stage is characterized by contemplation and then decision-making on the part of the potential customer. They’re now aware of you and trying to determine if you’re worth their time and money. If they decide you’re not, then the Awareness stage marketing campaign was money ill spent. If they decide you’re worthy of their time and money, you move to the next phase. Marketing has done its job and operations/training takes over.

Visitation. The diner has now moved through two complex and formidable marketing stages (Awareness/Consideration) and actually goes to the restaurant. This is why customer retention strategy (service and training) is so important: it’s where the brand meets the customer. Cherish this stage, because you experience the double win of patronage: The customer spends money with you and simultaneously does not spend money at the competition. Huzzah!

Preference (Affinity). This stage is the ultimate target for every foodservice department, executive, employee, manager, trainer and stockholder. Preference drives repeat business and lifelong patronage. Only by excelling at the Visitation stage every time do you convert customers to prefer your brand over others. Marketing is the car, training is the engine and execution is the steering wheel of customer retention.

How do you balance efforts between attaining and retaining customers? Join the conversation in the comments below.

As you consider the four stages, evaluate how your marketing, ops, HR and training teams can improve each one. When a new restaurant opens, most of its marketing dollars should be allotted to customer acquisition. But as diners accrue over time, shift those dollars into customer retention. Don’t overspend on marketing and underspend on training, lest you fall into the vicious cycle of constantly acquiring customers you can’t retain.

If you spend more on customer acquisition than you do on customer retention, you’re actually working for competitors who do just the opposite by providing excellent training, personalized service and a quality experience for every guest.

Jim Sullivan is a popular keynote speaker at foodservice conferences worldwide. You can check out his training catalog of books, videos, apps and e-learning at Sullivision.com, and follow him on YouTube and Twitter @Sullivision.

How External Situations Rapidly Affect Behavior: The Stanford Prison Experiment

The Stanford Prison Experiment, a dramatic simulation study of the psychology of imprisonment and one of the best known psychology experiments ever undertaken.Dr. Zimbardo takes us through the Stanford Prison Experiment, in which healthy college students are transformed into unstable prisoners and brutal prison guards within days by the power of the situation in which they found themselves.

In 1971, psychologist Philip Zimbardo and his colleagues set out to create an experiment that looked at the impact of becoming a prisoner or prison guard. Zimbardo, a former classmate of Stanley Milgram (who is best-known for his famous obedience experiment, was interested in expanding upon Milgram’s research. He wanted to further investigate the the impact of situational variables on human behavior.

The question the researchers asked was how would the participants react when placed in a simulated prison environment. “Suppose you had only kids who were normally healthy, psychologically and physically, and they knew they would be going into a prison-like environment and that some of their civil rights would be sacrificed. Would those good people, put in that bad, evil place—would their goodness triumph?” Zimbardo explained in one interview.

The researchers set up a mock prison in the basement of Standford University’s psychology building, and then selected 24 undergraduate students to play the roles of both prisoners and guards. The participants were selected from a larger group of 70 volunteers because they had no criminal background, lacked psychological issues, and had no major medical conditions. The volunteers agreed to participate for a one- to two-week period in exchange for $15 a day.

The simulated prison included three six by nine foot prison cells. Each cell held three prisoners and included three cots. Other rooms across from the cells were utilized for the prison guards and warden. One very small space was designated as the solitary confinement room, and yet another small room served as the prison yard.

The 24 volunteers were then randomly assigned to either the prisoner group or the guard group. Prisoners were to remain in the mock prison 24-hours a day for the duration of the study. Guards, on the other hand, were assigned to work in three-man teams for eight-hour shifts. After each shift, guards were allowed to return to their homes until their next shift. Researchers were able to observe the behavior of the prisoners and guards using hidden cameras and microphones.

While the Stanford Prison Experiment was originally slated to last 14 days, it had to be stopped after just six due to what was happening to the student participants. The guards became abusive and the prisoners began to show signs of extreme stress and anxiety. While the prisoners and guards were allowed to interact in any way they wanted, the interactions were generally hostile or even dehumanizing. The guards began to behave in ways that were aggressive and abusive toward the prisoners, while the prisoners became passive and depressed. Five of the prisoners began to experience such severe negative emotions, including crying and acute anxiety, that they had to be released from the study early. Even the researchers themselves began to lose sight of the reality of the situation. Zimbardo, who acted as the prison warden, overlooked the abusive behavior of the prison guards until graduate student Christina Maslach voiced objections to the conditions in the simulated prison and the morality of continuing the experiment.

“Only a few people were able to resist the situational temptations to yield to power and dominance while maintaining some semblance of morality and decency; obviously I was not among that noble class,” Zimbardo later wrote in his book The Lucifer Effect.

According to Zimbardo and his colleagues, the Stanford Prison Experiment demonstrates the powerful role that the situation can play in human behavior. Because the guards were placed in a position of power, they began to behave in ways they would not normally act in their everyday lives or in other situations. The prisoners, placed in a situation where they had no real control, became passive and depressed.

Five Simple Steps to Achieving Clarity as a Team

Accountability requires clarity in tasks.

1. Identify a platform for recording all action items (e.g. dry erase board, a Google doc, etc).

2. Create a column in that platform called “What,” where you list out every action item that needs to be executed.

3. Create a “Who” column where you show who is responsible for each action item.

4. Determine “When” each task must be completed by.

5. Create a recurring follow-up schedule.