Tag Archives: managing

November 21, 2016 · 11:17 am

Can Overhead Mean Profit?

I was chatting with a friend the other day and he told me about some layoffs that were going on at his place. Many of the people being cut were what we euphemistically used to call the “non-revenue generating portion of our staff.” You might term them overhead. You know – sales assistants, secretaries, accountants – the people to whom direct revenue isn’t attributed. I told my friend that I think it was an incredibly short-sighted move and in an effort to help your business not make the same sort of error, here’s why I feel that way.

First and foremost, there is a decent amount of research that tells is that salespeople – the people who bring in the fuel that drives your business’ engine – spend only about a third of their time (36%) actually selling. You know – meeting or connecting with clients either in person or virtually. 64% of their time is spent on non-sales activity, and a good chunk of that is with administrative tasks (25%) and service tasks (16%). A great sales assistant can take over much of those tasks, freeing the salesperson up to do what only they can do. Is it cost-effective? If a salesperson is making $200,000 a year and you can boost their output, making them worth $50,000 more, then you’ve paid for the assistant, right?

The same can be said of other support people. A smart accountant or lawyer can help boost profits, even if they do nothing more than find a way to say “yes” in making deals happen. That’s not always the case – I’ve worked with internal lawyers who were a bigger impediment to business than a crappy marketplace. If there is an internal awareness of revenue goals and a commitment by everyone to making deals happen, there is no such thing as “overhead.”

Selling has changed, no matter your business. Focusing on customers’ needs, not trying to sell them products they don’t want or need, and being a trusted advisor are the key ingredients in sales (and revenue) success. The more people your company can put to that task on behalf of your clients, the better. Make sense?

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November 11, 2016 · 2:43 pm

Hiring Cast Iron People

It’s Foodie Friday and this week I want to dwell on cast iron pans. Hopefully, you own a couple and they’re not sitting in some drawer rusting away. What I’ve been thinking about today is how there are some real misunderstandings about cast iron and how a number of those misunderstandings have equivalencies in how some folks look at employees. Let me explain.

Those of you who don’t use cast iron regularly probably have a few misconceptions. You think that it’s an outdated technology and newer types of pans are lighter and have better non-stick surfaces. You feel that cast iron is temperamental. You can’t wash it with soap and water and as a result, it always has a gross sheen of old cooking oil and other gunk on it. You fear using anything metal on it in case you disrupt the non-stick surface. Finally, you fear cooking acidic food such as tomato sauces in it because the acid will result in an off taste as it interacts with the metal.

None of the above is true. Well, ok. The pans are heavy. I have a 15-inch cast iron skillet that requires a back brace to lift. But it makes a roux like no other pan I have. It took a while to learn how to use cast iron properly. It doesn’t heat evenly but it holds heat fantastically. Because of that, it puts an amazing sear on anything. It can go from stovetop to oven with no fear. I wash mine with soap and water all the time and the non-stick surface is fine. Why? Because it’s not old oil that creates the non-stick. It’s a layer of polymerized oil that has already bonded to the surface. That is also why I cook acidic foods in it without issue as well. The more I fry it in the better that layer becomes. So what does this have to do with business?

We often look at people much as we look at cast iron pans. We think that people who are older can’t have the properties that make them valuable. We hear rumors they’re difficult and that they’re temperamental. We don’t think they are versatile enough to deal with any situation. We hear they require constant care and maintenance. None of those things are true, at least not to a degree that’s any worse than we face with any demographic. The reality is that more experienced people can often perform a multitude of tasks and, like cast iron, get better at them over time and with use.

There is one other thing cast iron has that’s extremely valuable. It’s called emissivity, which is its tendency to expel a lot of heat energy from its surface in the form of radiation. Not only does it cook what’s in contact with its surface but also the food above that surface (think roasting). Who wouldn’t want an employee that radiates high energy to those around them?

If you have a cast iron pan in a closet someplace, take it out, clean it up, reseason it, and put it to work. Not a bad thought for the underutilized experienced employee in your midst either!

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November 7, 2016 · 2:12 pm

Affirmation And Information

Tomorrow is Election Day here in the US. That’s usually followed in most places by “get out and vote” but not here. Instead, I’m hoping that all of us who are eligible will get informed and then vote. The problem is that many people believe they’re doing just that but aren’t. It’s a problem common to business as well. 

I am pretty sure you’ve shared the experience I’m about to describe although I wonder if you’ve thought about it in business. A friend shares something on social media which you discover is just not true. I had that happen twice last week. I saw something and rather than immediately dismissing it because it didn’t jibe with my world view, I did a little hunting to see it what he posted was factual. It wasn’t and I let him know. Did I expect him to take it down? Hoped, maybe, but not expected. Instead, many of his contacts with a similar world view ignored the facts and continued to comment as if what he posted was gospel.

That’s the issue, both in our business lives and our personal lives. Most of us no longer seek information but instead want affirmation. We want something to tell us we’re right and not something that tells us the truth. That is how businesses go off the rails. The boss has a point of view based on misinformation and his minions spend time finding affirmation, not information. I think it’s also how a country gets off the rails too.

Here comes the cranky old man part. As the internet evolved I was happy because it eliminates gatekeepers of many sorts, including those that restrict the flow of information. Given the absolute deluge of crap, lies, misinformation, and worse that’s out there, I yearn for some responsible gatekeeping. We all need to be better informed as we make important decisions. Seeking what’s true and not just what we want to be true makes a huge difference in our decision-making. Maybe today’s a good day to pledge to do that because there are important decisions to be made, both tomorrow and beyond and in the voting booth as well as in the office. You with me?

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