When trusted employees steal

theft_000016530240XSmallA coaching client just informed us of their discovery that a trusted employee has been stealing from the company by manipulating and creating false transactions in the company’s business software. Luckily, another employee saw something questionable and informed the owners. After hours of examining and comparing transaction logs, it was clear who the culprit was, how it was done, and for how long it’s been happening. Damn…isn’t running a business difficult enough without having your own employees stealing from you – especially one from your trusted inner circle?

The owners were shocked and devastated to discover just how extensive their trust was violated by this key employee. To learn that thousands of dollars had been siphoned out of much needed cash flow is one thing, but to learn that someone you trusted intentionally stole from the company right under your nose is where the real and lasting damage is done. [Read more...]

Set employees up to win – not fail

simplifyEmployees get set up to fail more often than you think. It’s never done intentionally – it just happens. Tasks are poorly defined. Desired results are sketchy. The chain of command looks like a pile of broken links. Training is inconsistent and inadequate. There are leaders that actually expect employees to know what they’re thinking … and to execute their nonverbal commands perfectly.

Some employees try their best to deliver what they perceive they were charged to do and get chewed out when their performance doesn’t match unspoken expectations. Others give it half an effort knowing they can’t win. The end result is always a demoralized team and de-powered culture that is capable of so much more. Once a pattern of getting set up to fail settles into a company’s culture, getting things done takes more time, money, and resources. The company springs leaks that it cannot plug up fast enough.

When Strategies does onsite No-Compromise Leadership sessions, we interview employees. That’s when we hear the other side of the story as employees vent about their frustrations with the company and its leadership. Don’t get me wrong – these aren’t “rip the leader to shreds” sessions. Rather, they are open and honest opportunities for employees to express their concerns with the practices, thinking, and behavior of the company and its leader(s). It’s no different than leaders expressing their concerns about employees. Everyone wants the company to be the best it can be – to be set up to win. [Read more...]

Dealing with change resisters

Every moment of every day, change is all around us. Seasons change. Weather changes. Our bodies change. Our lives change. Likewise, business changes. Every day, new businesses are born – some grow, prosper, and endure for a long, healthy life, while others stumble and die. The one constant we can be sure of is that change is relentless. Some embrace it with open arms. Some wait to see what the new reality looks like and then jump onboard. And then there are the change resisters that hold onto the status quo with a white-knuckled grip.

Contrary to popular belief, change resisters don’t exist to drive you crazy – even though they can and do. Change resisters simply deal with change differently than most. They lock into patterns of thinking, behavior, systems, and cultures that become their “normal.” They get good at functioning in their “normal.” They know everything about their “normal.” And then change comes along, often with a wrecking ball, and starts knocking down their “normal” to replace it with something new and foreign. Their natural response is to protect their “normal” by resisting change. [Read more...]

Do not be an Undercover Boss

I’ve watched the television show “Undercover Boss” a few times. It’s entertaining proof that most leaders are afflicted with the same form of tunnel vision. They get so wrapped up in “their work” they disconnect from what’s most important – their employees. The story line is always the same; the boss goes undercover by assuming the identity of someone looking to start a new career, works alongside employees, discovers things are wrong, bonds with some employees, gifts employees thousands of dollars and/or training they should have had to do their jobs. The show ends with the leader vowing to maintain the connection with employees.

Every MMWU is a reminder that leading and growing a company is tough work and that keeping your finger on the pulse of your company isn’t as easy as it sounds. As Undercover Bosses discover, to truly feel the pulse of your company means monitoring its pulse from the corporate office to the front line. The bigger your company gets, the easier it is for you to get disconnected from your people and the quality of their work. Even if you have a small company with just a few employees, it’s easy to get disconnected because you’re so busy working and generating sales. [Read more...]

Hurts so good: Overcoming the pain of positive change

John Cougar Mellencamp said it best: “Hurts so good. Come on baby make it hurt so good”.

Personally, I can think of a few times when that statement was actually true. One time was when I finished my first marathon in 95-degree weather. All the pain and commitment from months of training finally paid off as I crossed the finish line after 26.2 miles. Another was recently when I had to have physical therapy on my shoulder due to two dislocated ribs. As a stylist of 29 years, the pain in my shoulder had become almost unbearable when I would blow dry. My physical therapist pulled, twisted, massaged and made major adjustments that were down-right painful, but at the same time “hurt so good”. Now I’m on my way to a full recovery thanks to the pain I was willing to endure to get the end result.

Now let’s put a spin on this and relate it to running your salon or spa business. Do you have some painful areas that are clouding your vision for your company? Or perhaps there are some sore spots you need to address, such as people on your team that you would be better off without? Maybe you need to make some serious financial cuts that would be painful at first, but in the end would be more beneficial for the company and your financial future? The pain is worth the end result.

I have been on a five-year journey to change our company’s future, and have been working hard to become debt free. I have had to make serious cuts, such as closing a location, ending some toxic relationships within our company, changing our payroll structure and improving my leadership skills so that I am better prepared to address behaviors that are not in the best interest of our company. Change is painful, but today I have a fantastic culture, inspired teamwork, a highly-profitable company, benefits for my team members (like 6 weeks paid maternity or adoption leave), paid vacation and a strong education system. Yes it was often painful, but it was worth it in the end.

The time for change is now — stop putting it off. The pain is worth the end result.

YOUR TURN: What painful challenges have you overcome in your business, and how much better off are you now? What are some issues that are causing you pain? What’s holding you back from addressing them?

How to get employees to do great things

It’s one thing to be a great individual achiever by outperforming and outselling everyone around you, innovating the coolest breakthrough ideas, mastering the work that feeds your passion – perhaps even leaping tall buildings in a single bound. Yup, there’s nothing like being at the top of your personal game and being recognized as a rock star in your chosen field. It’s what’s possible when you have the courage and tenacity to relentlessly push yourself beyond the comfort zone of “ordinary” to “extraordinary.”

It’s something completely different to lead and inspire an entire company of people to do great things. It doesn’t matter if there are five, 500 or 5,000 people looking to you for direction and inspiration; it’s just not that easy to get that fire in your gut to burn bright in others. As a leader or entrepreneur, your dream was to grow a company – not be a cheerleader, disciplinarian, or babysitter. Heck, just getting employees to show up on time for a meeting or follow a new policy can be a Herculean task. It’s that “people thing” that keeps getting in the way. It wears you down and takes all the fun out of growing a company. [Read more...]

How to avoid hostage management in your salon or spa

We have all seen a hostage situation, either on the nightly news, a drama or in the movie theatre. The situation is usually the same: You have someone that is irrational, angry, and unwilling to negotiate or reason with sound resolutions. The situation often appears hopeless as emotions run high. And many times, either a life is on the line, or people are endangered. Usually, the individuals that are holding others hostage have high demands — like a large amount of ransom money, a getaway car, political power or perhaps a one-way ticket out of the country. Whatever their reason, rarely does it ever have any direct connection to the individuals being held hostage — but it always has an immediate connection to the needs and desires of those in control.

Unfortunately, this same type hostage mentality plagues the day-to-day operations of thousands of salons and spas everyday. Think about these scenarios:

  • Have you ever had a high revenue-producing service provider that is holding your salon/spa hostage with excessive demands on the business (i.e. higher commission, Saturday’s off, a personal assistant that the company cannot afford, a new product line, etc.)?
  • Is this employee irrational and unwilling to negotiate/reason with sound resolutions that would make your company stronger  (i.e. pay that is in alignment with the health of the company, attending staff meetings, dress code, showing up to work on time, running on-time to care for the customer)?

What is at risk? Is it the financial health of the company, the clients or the other team members? Unfortunately, it’s all three.

According to law enforcement the hostage situation has three phases.

Initial phase: This is the phase where the demands have been asked for. There is a lot of emotion during this time. Perhaps in your company it looks like this:

  • “I need to make 60% commission or I am going to work someplace else.”
  • ”If you don’t let me have every Saturday off I will quit.”
  •  “I am not working those hours.”
  •  “I don’t sell retail”

Stand off Phase: At this point, the owner has been given the demands. This phase can last for days, months or even years. Law enforcement refer to this as the “stand off” phase. Nothing about the situation appears to be changing (the company and the employee stay both hold their ground). However, under the surface, turmoil is brewing as company culture and relationships are being damaged around the dynamics of the situation. These times can be exhausting for everyone involved. The negotiator’s job — or in this case the owner’s job — really boils down to working out the situation so the company ends up with a peaceful resolution.

Termination Phase: This is the brief — and often times violent — ending phase. Usually one of three things happen: The hostage will surrender and be taken into custody; police will use force and take them into custody (sometimes others are hurt during this process); the hostage-takers’ demands are granted and they escape.

As the leader of your company, it is your duty to play role of negotiator and to end the stand off as soon as possible. Far too many salons and spas are stuck in the stand off phase. If this is you, now is the time to step up to the plate and to be courageous like the heroes we see on the news or in the movies. Are you willing to continue on until your company is in the termination stage where there is loss of staff due to the high demands of the hostage taking employee? Or will you stand up for what’s right for your company? I know which ending I will choose for my salon.

Have a story of how you successfully addressed a hostage management situation? Tell us about it in the comment box below.

5 ways to boost summer sales in the salon or spa

Ah yes, the lazy days of summer. Often times, those lazy days seap into the atmosphere in the salon/spa — and you can tell things at the salon are little too slow, or just too quite. You walk on the floor and you feel as though you are being watched, and it looks like the staff is lacking energy or urgency. Is it because its summer and we are all chilled and relaxed? In the end, it doesn’t really matter what it is — we need a mood shift!

Here are few tips to recharge your team’s morale — and boost those summer sales:

  1. Identify who in the salon need an uplift, get them to go to hair show or class.
  2. When times are not so busy, bring in a motivator to come for an ” hour of power” (stand up comedy theaters often do team building sessions), or just play a game every morning to boost moral.
  3. Change the music.
  4. Have a sale contest with a team goal. This will hike up the urgency and, if you add elements that make it fun and engage clients, now you’ve created buzz!
  5. Great game: Give your staff an opportunity to do great things, and reward them for their efforts. Example: Each member has the opportunity to “wow” the client. The best “wow” gets a reward. Give a budget of up to $25.00 a person to wow the client, although you don’t have to use money for it’s not in the budget — everybody can get creative .

Create fun and it will change the atmosphere.

Have some fun times to beat the summer blues in your salon or spa? Share them with us below.

Inside the mind of the entrepreneur

Entrepreneurs are definitely a special breed. I like to say that being an entrepreneur is both a blessing and curse. We think and move at lightening speed, we aren’t afraid to take risks, and we can virtually see into the future. In fact, our vision at times seems so crystal clear that we often wonder why no one else can see what we see. We implement change and then it’s quickly on to the next initiative. We add and subtract, we move this here and that over there. Employees in our companies who resist change hate how we operate, and find it hard to keep up with our pace. The only time we’re really comfortable (and understood) it seems is when we are around other entrepreneurs.

Just recently, after a string of bad hires in my company which cost us dearly on so many levels, we decided to re-engineer our recruiting and hiring strategy. Okay, who am I kidding? I decided to re-engineer our recruiting and hiring strategy. There it is again, that pesky entrepreneurial attitude that rears its head like a race horse ready to bust through the starting gates at the sound of the gun.

I’ll keep going, so bear with me. The basis of our new strategy was to simply slow down and be more thorough in our interviewing, creating a six-step process to carefully evaluate candidates and find people who share our core values and company purpose.

Since we have strong relationships with area cosmetology schools, we literally interview hundreds of applicants from these schools every three to four months. To support this new approach, I had this brilliant idea to utilize one of my favorite apps to date, Evernote, to help us facilitate our efforts every step of the way. I remember it so vividly, standing in my shower where it seems like most of my ideas come to me. Like a bolt of lightening, this new vision of how the whole thing would work struck me out of nowhere. Everything was crystal clear. I knew exactly how it was going to work. Amped up like I had just had five cups of coffee, I made it into work later that morning and immediately started changing everything. I created the new system in Evernote, and I started telling everyone on my team how it was going to work. I expected everyone to be onboard, totally engaged and excited about my new idea. Almost immediately, everyone was confused. Not only were they frustrated, but so was I! I kept asking myself, “How can something so simple, be so hard to understand?” “What’s wrong with these people?” “Why can’t they see what I see?” These are the questions that entrepreneurs grapple with when implementing change.

I almost caused my Human Resource manager to have a nervous breakdown without even realizing it. It wasn’t until I saw her emotions in a very exasperating conversation that I realized that I was trying to ram rod this amazing idea I had into place without taking into consideration other factors for the process to work. Here’s what I learned out of all of this. Allow me to share four key points to consider when implementing change in your company:

  1. Slow down and allow others to catch up
    What we owners typically forget is that we’re usually six months ahead of the rest of the pack. We’ve already had time to think and process the changes that we want to happen. When we introduce our ideas and change initiatives to our teams, we have to allow them time to process the information and catch up.
  2. Share and then listen to what others have to say
    Just because we think we have an amazing idea doesn’t mean that it’s the only idea that should be used. Tap into the brain power of your team. Often times they might share your vision but have an even better way to execute. When this happens, you might be surprised how fast your vision becomes a reality because you now have team members who are just as excited as you.
  3. Frustration is often part of the process
    Charles Darwin said, “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” Change is hard. It’s human nature to want to stay comfortable. Understand that when we initiate change, it requires energy. Part of the change and learning process is frustration amongst those that are involved. Think of it as a type of sorting process where we must “sort” through the information, process it so we can figure out where it needs to go and where we fit into the new model. If you go into it knowing that there will be frustration, you’ll be better prepared to handle the process.
  4. Be prepared to communicate your vision over and over again – Why? What? How? and What if?
    This ties nicely into #3. To overcome frustration, be prepared to communicate your idea to those who will help you make it a reality. This is where we must put our sales hat on and sell our team on what we’re trying to accomplish. Help them see how it will benefit them, the clients and the business. If it’s a better way to do things, communicate how it will look. Paint a picture for everyone to see. If you can answer WHY this important, WHAT it is that you’re trying to accomplish, HOW the whole thing will work, and IF we do this, then we will enjoy these things; you’ll move much more quickly and with less resistance.

Your turn: What was the last entrepreneurial “Ah ha” moment you had? How hard was it to implement the change or idea that you had? Where did you get stuck? How did you overcome objections?

Six ways to know what is really going on

Scenario One: A key employee leaves your company. As you begin to assess the work and status of various projects the individual was responsible for, you begin to discover things that are disturbing and quite different from what you thought was being done. Projects were far from complete. You learn of conversations that undermined your leadership and created division within your team. You scratch your head and wonder how all this was happening under your nose.

Scenario Two: You have some long-term employees who have become increasingly and openly resistant to change. In fact, they’re outright ignoring change initiatives. You see it. Everyone sees it. It’s been going on for some time and has become the norm. You feel as though they’re holding you hostage. Your frustration hovers near the breaking point. Then, they quit without notice and open a competing business. You feel blindsided and as you discover the elements of their plot, you wonder how all of this was happening under your nose. [Read more...]