1001 Business Bedtime stories…… Truth 3, Finger on The Pulse
Here follows another one of the “1001 Business Bedtime Stories” … Every story comes straight from the New Perspectives Small Business Bootcamp, stories of business and courage and they illustrate an aspect of one of The Ten Truths… You might recognise some of them from your own experience.
Once upon a time… a long long time ago in a country not unlike Australia… Michael had a carpet cleaningbusiness …
Michael owned a carpet cleaning business in Sydney. Michael had 10 vans on the road with carpet cleaning equipment and Michael would book the jobs and do the marketing and generally run the company.
Michael’s life was full of crises, in fact most of his days involved extinguishing brush fires and he would never know where the next crisis would come from. Most of the crises involved his staff not delivering the customer service or quality that Michael’s clients expected and the only way to manage these issues was by Michael going out and fixing the problems himself.
There were many factors at play of course but Michael found it difficult to keep his staff accountable to specific performance criteria on quality and customer service. How do you measure the quality of a cleaning job and how do you measure the level of customer service and satisfaction you have delivered? But as the saying goes, you can’t manage what you don’t measure.
“If only I had a simple way to measure “Good Work” and “Good Service” that I can apply across the board and use to manage the performance of the guys ?” kept going round and round in Michael’s head.
Michael was at the end of his tether.
Working in The Bootcamp with me, Michael learnt that you can create relative measures for intangible things. For example If you were asked to give a score out of ten how happy you felt at this moment, where “10” was that you felt delirious and “0” meant that you were at risk of self harming, you might say “6”. If I were to ask the same question again tomorrow you might answer with “7”. This would lead us to reach a valid conclusion on your state of happiness tomorrow relative to today.
This same principle can be used to measure all sorts of intangible things in life and lends itself really well to measure quality and service and satisfaction levels.
We went to work to create a self scoring system, where a staff-member filled in a small form at the end of each job in which he gave himself and the just completed job a series of scores out of 100 on a number of different measures (for example: “Give yourself a score out of 100 for being punctual”)
The forms would be collated in a spreadsheet and the numbers averaged for each staff member and for the business as a whole. Every week on Monday morning Michael received a report from his admin assistant with the average performance numbers across the company for service and quality in the last week. At the same time Michael had his assistant call 10% of all clients every week and ask them to rate the completed jobs in a similar manner and these ratings were listed side by side with the staff member’s own ratings. The staff members would be given access to the customer ratings as well and as required Michael would sit down with individual staff members, compare notes and generally help the staff improve on their ratings and become more accurate in their self-scores.
This scoring system completely changed the way Michael thought about managing his business and he realised that the way to build a great company and great business value was to step back and create management systems, scoreboards and dashboards.
So she did… and it took a lot of courage… Michael created 3 different weekly dashboards: one for operations, one for marketing and one for finances.
Now 5 years later Michael is negotiating to sell his business. The price he is likely to sell for is at least 3 times what he would have been able to sell it for a few years back, because now he is selling a business that operates almost independently from Michael himself.
And Michael as well as the new owners of Michael’s business will live happily ever after… The End
Ask yourself… Where will you find the courage to make Profound things happen in your Business?
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