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Peak Your Profits: Results rule! Part 2
Here’s more good stuff from Randy Pennington, a friend, author, (Results Rule!) and speaker.
Jeff Blackman: What are the biggest lies, an individual or company, perpetuates about itself?
Randy Pennington: Companies lie to themselves all the time. Let’s start with customer expectations. From the customer’s perspective, fundamentals are the minimum. Distinctive is the difference.
Most of what’s written on the walls in your strategy sessions is the same stuff being written on the walls at your competitors. And it’s usually something customers view as fundamental. You can’t ignore fundamentals. But you’re lying to yourself if you believe mastering the fundamentals is enough to make you a hero to your customers.
Another lie that gets you in trouble, is the one based on some semblance of truth. Lies, based on truth? How can that be? Let’s take branding campaigns as an example. The truth is, every company must be focused on building its brand.
The lie is, a campaign will ensure success. Great brands began as great companies, not great campaigns. Remember the Pets.com sock puppet? Great campaign. Lousy business model and lousy execution. Be careful any time you assure success, based on something other than building a great company with a culture focused on delivering amazing results.
There are even lies that drive your approach to business. You may be lying to yourself if you think you know who your competition is or assume low cost is the only way to compete. And, there are lies about your people, i.e., employees only care about themselves or the younger generation, doesn’t know the meaning of responsibility. These lies limit your ability to build a committed, successful team.
JB: Tell me more, about the choices an organization makes.
RP: Everything a company does falls into three “choice” categories: leadership, operational and people.
1. Leadership choices deal with directional and overall performance issues, like; purpose, strategy, values, goals, and measures.
2. Operational choices include decisions about product and service delivery, as well as customer service and engagement.
3. People choices relate to having the right people in the right place at the right time with the right skills, attitude, and motivation. You can simplify your planning process if you think about every decision as either leadership, operational, or people.
JB: Where do results rule?
RP: At Sewell Motors: Sewell Lexus is the number one Lexus dealership in the United States for service. Their sister Cadillac dealership is a brand leader. So are its dealerships in the other brands within the Sewell family.
Sewell sells the same products with the same features as other companies within its region, yet Sewell consistently delivers amazing results.
Here’s why:
1. Their purpose is all about service and building customers for life. That, and an insatiable desire to be the best, drive every decision and action. Carl Sewell, the owner, told me the decision to be the best was the most important choice they ever made. It provides incredible focus and energizes everyone.
2. Sewell takes great care in staff selection. Joe Stallard, head of HR told me Sewell talks to about 2,500 people to hire less than 50. And, Sewell hires college graduates for positions where a degree isn’t required at other dealerships. Then, it trains and treats their people well. As a result, Sewell has little turnover and a highly skilled workforce which goes out of its way to delight customers.
3. Sewell has a process for every action and interaction related to customer service. Sometimes the process is five bullet items. Sometimes it’s five pages. Its culture is defined by an obsessive discipline to deliver what customers expect every time, and a little bit more.
4. Sewell measures virtually everything. Other companies measure stuff, but Sewell does it differently. For many companies, measures are used like a report card, telling you how you did in any given period. Sewell uses measures as a management tool to foster continuous improvement. They look at real time data to make real time decisions about how to improve performance.
5. Sewell has a heart for its customers and staff. The two are connected. Sewell customers are some of the happiest and most loyal anywhere. Sewell Lexus provides dog treats for owners who bring their pets to a dealership. That’s unique, but not unheard of.
What’s unheard of, is the employee who orders glycerin-free dog treats because a customer mentioned her dog was glycerin intolerant. On the staff side, Sewell offered every employee at its New Orleans Lexus dealership, (post hurricane Katrina), relocation assistance and a job at one of its other operations.
Linda Arnold, a sales and leasing consultant for Sewell told me, “I owe this company a lot. They stood behind me during my mother’s illness. I have a huge sense of loyalty and desire to help them succeed.”
JB: How do you hold folks accountable?
RP: The process is simple, yet deceiving. That’s because most managers have a problem with accountability, because they’re not accountable!
Therefore, leaders must:
1. Provide clear, specific expectations.
2. Let others know when and how results will be measured.
3. Ensure the other person has the time, tools, and training to do the job.
4. Be available to provide assistance as needed, without taking on the responsibility yourself.
5. Follow-up and take appropriate action, as you said you would. For more performance and profitability pointers, be sure to visit www penningtongroup.com.
That’s where results rule!
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Jeff Blackman is a speaker, author, success coach, broadcaster and lawyer who lives part-time on Marco Island. His clients call him a “business-growth specialist.” Send an e-mail to jeff@jeffblackman.com or go to www.jeffblackman.com to subscribe to his free e-letter.

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