Gordon Ramsey - Expert or Amateur

I do not watch much TV, aside from  some sporting events.  I do, however, have a love of cooking. So watching a few cooking shows from time to time helps me be a better cook.  This is where Gordon Ramsey enters the picture.  Gordon Ramsey is a world renowned chef and restaurateur.  He owns over 15 restaurants around the world, all are Michelin rated (high honors).   In addition, his TV credits include his highly successful Hell’s Kitchen, The F Word (BBC), Masterchef, Ramsey’s Best Restaurants and my favorite, Kitchen Nightmares.

Why Kitchen Nightmares?  Simple, if you want to see a turnaround in action, watch this show.  Gordon goes into a restaurant to help save it and turn it around.  The things you see are the things needing to be fixed.  Call it reality or call it scripted but it is a script for a turnaround.  Let me tell you why.

First, and foremost, the only goal is to make money.   Making money insures the future of the restaurant.  Once everyone understands the goal he takes the restaurant, its owner and employees through the same checklist every time, as follows:

1.       Product – taste and quality?

2.       Customer Service – high touch?

3.       Culture – empowered employees?

4.       Cost structure – too high, too much waste, too many menu items?

5.       Create a plan – change the menu, people, décor?

6.       Execute the plan – to perfection

7.       Review the goal and repeat 1 to 6 constantly

What does he produce?  He produces success which is the result of the goal and the execution of the plan.  How does he produce the success?  He produces success through:

1.       Outstanding product

2.       Superior service

3.       Better culture, improved relationships

4.       Quality at the highest levels at the lowest cost.

Agree or disagree with his tactics (yelling, pushing people to their limits) but his ability to create change and effect the turnaround far outweigh his failures.  Remember, not every turnaround is sustainable.  Unless owners and managers are committed to the change it will fail.  The failure is typically not in the process, the failure is owners and managers inability to make the necessary changes in their behavior, leadership and decision making to sustain the turnaround. 

So what do you need to turnaround then sustain a business?  Simple:

1.       Focus – like a laser beam.

2.       Interpersonal Skills – empower and motivate.

3.       Training – changing how you do things is critical to your success.

4.       Hunger - to succeed.

5.       Perseverance - practice until improvement is found.

6.       Social consciousness – being part of the community you are in.

7.       Ability to develop culture – it will take all your skills to change it.

Turnarounds, the lessons they teach and their sustainability are all about attention to detail and a plan for the future.  Without both, close the doors.

I challenge you to watch Kitchen Nightmares with a new sense of what is happening on the show.  I challenge you to look at your business the way he does a restaurant.  Are you in need of a turnaround?  Follow the roadmap I have laid out and your business will be successful and sustainable.

Gordon Ramsey and I have a few  things in common – a passion to make money, empowering people to make a difference, creating customers that can't wait to do business with us and having fun doing what we love doing.  We work hard and have a passion to help others be successful and reach their goals.  For that I believe he is an expert.

If after you take my challenge and you think your company needs help, contact me at billdonnelly@bac2profit.com for a no charge consultation. 

The 7 Laws of Social Media

There has been an enormous amount written these days about social media. I was reading a LinkedIn string from a group I belong to and saw The 7 Laws of Social Media by Colin Netting, partner at In Sync Marketing and a colleague at the Institute for Independent Business (IIB). Like it or not, social media is here to stay. How you use it is up to you. What I like about these 7 Laws are they lay a foundation of values when putting together your social media strategy. It’s not technical, you can find all the advice on that you want on the web. Agree or disagree, it resonated with me, I hope it resonates with you or at least gets you thinking.

THE 7 LAWS OF SOCIAL MEDIA

1) The Law of Giving: The businesses that do best in this world are ones that GIVE really useful, valuable things to people, rather than crafting sales messages.

2) The Law of Listening: Listen first, speak second (sounds like my last blog). Social media is a two-way conversation. Businesses will increase profits and productivity by listening to what people have to say and responding based on customers WANTS. It’s an outside-in approach, rather than an inside-out approach.

3) The Law of Talent: All talk and no walk will fail in this new world. You cannot rely on clever marketing and smoke and mirrors to get you through anymore. The product has to be good, the service has to be great and the customer has to love the product/service itself.

4) The Law of Action: ‘Just do it!’ – Businesses that do the best are the ones that are constantly moving, getting involved, implementing customer feedback and responding quickly. You can’t spend months planning and rolling out slowly anymore. You need to get do it, respond and be constantly moving.

5) The Law of Candor: Honesty is the best policy. Brands that are over produced will struggle in this new world of nakedness. Being perfectionist will do you more harm than good, perfection is a lie. Allow yourself to admit faults, allow negative feedback to stay up, and be honest when things go wrong and when you just don’t know how to do something!

6) The Law of Unity: Unite and Conquer. Social media is more than just people, it’s about groups. Your focus should be on developing a culture and a group of people and becoming a part of the community. The old top-down approach no longer works in a world where people distrust authority. They trust people who are like them. You need to become part of the community you create and help to introduce people to each other and further nurture that community.

7) The Law of Greater Purpose: Businesses that are purely driven by the bottom line cannot survive. While a business will always have making money as a primary objective, it is important to have greater purpose and a cause and culture that your brand represents as opposed to just being a ‘brand’ operating to sell for profit.

Next  topic – Social Media and Customer Service.

Typing Beats Scribbling: Indiana Schools Can Stop Teaching Cursive

Are you kidding me?  The last line says it all, what's next?

Your Mouth is Worn Out, Your Ears are New

Have you ever wondered why of all the ways we can communicate that listening, in my opinion, is the most important? 

Listening is one of the most difficult competencies, because it asks we take our own thoughts and hold them to the light of our own scrutiny. Listening involves hearing, then understanding and communicating that understanding back to the person you are listening to.  Listening is not focusing on your own thoughts, ideas, beliefs and expectations. For a leader this can be near impossible, because our thoughts, expectations and ideas form the basis for our success and strengthens this behavior through which it  our success has been created. 

Effective leaders are GOOD listeners.  Think back -  what highly effective leader have you known  who is a poor listener? When was the last time you complained about a superior because he/she was a good listener? 

Funny thing, but most people do not go to a leader to be heard; in fact, they look to their leader to talk to them. Most people would prefer not to talk when their leader is near; they want to listen to what their leader has to say. So what you observe is leaders evolving into talkers the longer they are leaders.   It is, therefore, important for a leader to be able to listen and ask questions, preferably in the reverse order, because asking questions will start the other party talking, after which you can start listening.

So what can you do to become a better listener? Here are a few basics and a game to play.  First the basics:

1.       Ask questions. In addition, ask questions in response to questions.  Why?  It makes people feel as though they count.

2.       DO NOT interrupt while your question is being answered.  Sit back and fight the urge.  Understand the answer before you move forward.

3.       DO NOT even think about your next question while listening; the instant you do so is the moment you stop listening.

4.       Solicit feedback and take action on the feedback.  Solicit opinions and discuss them. Taking action means you listened. 

5.       Focus intently – listen more, talk less. 

6.       Maintain eye contact. 

Lastly, the Questioning Game.  The rules are quite simple.  Your job in any conversation you choose is to only ask questions in response to what the person who is talking said to you.  In addition, the question has to be directly related to what they just said to you.  You cannot change the subject; if you need to make a comment, make it but add a question to the end of the comment (a tag question as we call it).  The tag question can be as simple as “Do you agree?”  The point here is staying in the moment and focusing intently on the person with whom you are engaged (the “critical” word here) in conversation. 

Leadership is almost entirely a communication activity. Naturally, effective leaders communicate clearly, in a timely fashion, keep employees informed and listen empathically. Effective leaders “walk the talk” by taking actions that are consistent over time and with what they say. In addition, clear focus and direction with the ability to communicate clearly is the “hallmark” of effective leadership. 

There is a relationship between effective leadership and effective listening skills.  Effective leaders hear what others have to say and empathize with their issues.  Actively listening to and empathizing with what people have to say are two of the important qualities of effective leaders.  True leaders know how to listen. They possess crucial qualities that promote positive work relations, inspire trust, and bolster the “bottom line.” Effective leaders recognize people have a need to be heard. Empathy is as valued as the willingness to listen.

Finally, the need for listening skills is to assure alignment has been reached.  Question, rephrase, question and confirm.  Without using the listening skills discussed here people will assume they have reached alignment and agreement but, in reality, have agreed on different issues resulting in the breakdown of intention and outcome.

Communication is not just speaking and writing clearly.  It’s about open and focused listening, too.

Bill Donnelly is a Managing Partner and Founder of Bac2Profit, LLC.  In addition, he is a certified Executive Coach and Master Mentor.  Working with companies that are underperforming and financially distressed he provides a parallel path to profitability and behavior modification to sustain the company into the future.  If you and your company are underperforming, call Bill at 732 - 979-4459 to set up a no cost, no obligation meeting to discuss your situation.

Why Good Companies Go Bad

What is it that makes good (and by that I mean profitable) companies, growing with a good future, go bad?  Some will point to the economy and how tough it is.  Some will cite pressures brought to bear by customers’ need for better prices and faster delivery.  Others will blame the rapid changes occurring in their business and industry.

Although all of the foregoing are symptoms, I would suggest that the real challenges reside at a much more basic level.

Think about the entrepreneur who starts a company on a shoe string.  He/she fights for every sale, fights to save every penny and fights to keep the dream alive.  Fast forward to success!  The company is profitable, growing and has a management team and employees.  The founder now has the nice house, company car and the exclusive clubs.  The future’s so bright everyone’s got to wear shades!!!

Business is a series of highs and lows, and my experience has taught me the following:

1.       Nothing lasts forever.

2.       Most owners and their management teams live off their past successes.

3.       There is no clear vision of the future.

I’ve seen a lot of examples, like the owner who:

·         Used only his income statement to measure business performance and could not understand how the bank moved him to workout

·         Invested so little in technology that he lost customers

·         Thought his customers were the problem

·         Allowed deliveries and quality to be so poor that it cost the company 1/3 of its business. 

The words that come to mind are arrogant, ignorant, denial, lazy, sloppy and asleep!

The irony here is it is more difficult to manage a growing company than in managing a turnaround.  A successful turnaround is done for the collective benefit of all involved while, on the other hand, a growing company will begin to show signs of personal agendas and individual successes as things “get better.”

What every company needs, in no certain order, are:

1.       A vision for tomorrow that avoids relying on past successes.

2.       Profitable customers who are loyal.

3.        Investments in technology.

4.       Accountability and results.

5.       Actionable plans and goals.

There is a quote I heard recently that says, “Tomorrow is the day when failure will succeed.”  If you are comfortable that you finally made it, procrastinate and deny what is happening around you, and think you can wait it out and it will get better, you are three feet from failure.  Good companies go bad due to leadership failure and then market forces.

Wake up, get engaged and go back to the future!  Things don’t have to go bad!

If you are interested in talking about your future, send me an email to set up an appointment.

I do not watch much TV, aside from  some sporting events.  I do, however, have a love of cooking. So watching a few cooking shows from time to time helps me be a better cook.  This is where Gordon Ramsey enters the picture.  Gordon Ramsey is a world renowned chef and restaurateur.  He owns over 15 restaurants around the world, all are Michelin rated (high honors).   In addition, his TV credits include his highly successful Hell’s Kitchen, The F Word (BBC), Masterchef, Ramsey’s Best Restaurants and my favorite, Kitchen Nightmares.

Why Kitchen Nightmares?  Simple, if you want to see a turnaround in action, watch this show.  Gordon goes into a restaurant to help save it and turn it around.  The things you see are the things needing to be fixed.  Call it reality or call it scripted but it is a script for a turnaround.  Let me tell you why.

First, and foremost, the only goal is to make money.   Making money insures the future of the restaurant.  Once everyone understands the goal he takes the restaurant, its owner and employees through the same checklist every time, as follows:

1.       Product – taste and quality?

2.       Customer Service – high touch?

3.       Culture – empowered employees?

4.       Cost structure – too high, too much waste, too many menu items?

5.       Create a plan – change the menu, people, décor?

6.       Execute the plan – to perfection

7.       Review the goal and repeat 1 to 6 constantly

What does he produce?  He produces success which is the result of the goal and the execution of the plan.  How does he produce the success?  He produces success through:

1.       Outstanding product

2.       Superior service

3.       Better culture, improved relationships

4.       Quality at the highest levels at the lowest cost.

Agree or disagree with his tactics (yelling, pushing people to their limits) but his ability to create change and effect the turnaround far outweigh his failures.  Remember, not every turnaround is sustainable.  Unless owners and managers are committed to the change it will fail.  The failure is typically not in the process, the failure is owners and managers inability to make the necessary changes in their behavior, leadership and decision making to sustain the turnaround. 

So what do you need to turnaround then sustain a business?  Simple:

1.       Focus – like a laser beam.

2.       Interpersonal Skills – empower and motivate.

3.       Training – changing how you do things is critical to your success.

4.       Hunger - to succeed.

5.       Perseverance - practice until improvement is found.

6.       Social consciousness – being part of the community you are in.

7.       Ability to develop culture – it will take all your skills to change it.

Turnarounds, the lessons they teach and their sustainability are all about attention to detail and a plan for the future.  Without both, close the doors.

I challenge you to watch Kitchen Nightmares with a new sense of what is happening on the show.  I challenge you to look at your business the way he does a restaurant.  Are you in need of a turnaround?  Follow the roadmap I have laid out and your business will be successful and sustainable.

Gordon Ramsey and I have a few  things in common – a passion to make money, empowering people to make a difference, creating customers that can't wait to do business with us and having fun doing what we love doing.  We work hard and have a passion to help others be successful and reach their goals.  For that I believe he is an expert.

If after you take my challenge and you think your company needs help, contact me at billdonnelly@bac2profit.com for a no charge consultation. 

INVENTORY MANAGEMENT SYSTEMS:  Is Your Warehouse a “Where? House?”

Why implementing an efficient Inventory Management System can increase profits.

Success starts with a vision, and visions are realized through effective planning. Effective plans are what separate the winners from the rest of the pack (called competitive edge) and having a solid plan will make operations run smoother, eliminating profit-eroding errors. 

The benefits for you may be significant. Successful Inventory Management Systems can reduce warehouse operating expenses by 10 to 35%, or up to 1.0% point to the bottom line (assuming warehouse operations expense is equal to 2.0 to 3.0 of sales). Imagine what a 10 to 35% reduction in inventory carrying costs would translate into $$$ savings!

Maintaining an accurate count of the products in your warehouse by quantity and location will allow you to monitor and regulate storage at the SKU level, as well as, the corresponding shipping and receiving traffic. Keeping the “where?” out of your warehouse will make your business more profitable, while lowering stress levels for you, your customers and employees.

Are inventory transactions (i.e. internal movement, decrements, receipts, etc.), that can make major differences to your financial results, being accurately tracked? Have you evaluated your inventory tracking system lately? Is it as efficient as it needs to be? If not, what have you done to improve?

How to Improve your Inventory Management Program

Our “vision” of inventory is somewhat different than the norm. We see inventory as stacks of crisp $100.00 bills neatly stacked & stretch wrapped on a pallet. After all it is money; you paid for the product, you pay to store it, you pay to handle it and it depreciates in value. Don’t you want to know where your money is? And what’s happening to it?

We realize change is not easy; developing a plan, documenting it and training employees takes time and can be frustrating. But it is a very attractive option to the profit-eroding alternative! When putting together a winning formula you have to build from the ground up and that process starts with the basics…efficient material flow paths, organized storage and process mapping. Most inventory inefficiency is created by smaller underlying deficiencies, either in the physical layout or information flow. It’s important when implementing a new Inventory Management plan, or revamping an old one, to start simple and stick to the basics.

Most people think of automated data transactions like bar coding & scanning when thinking of upgrading warehouse/inventory control operations, and yes they are very effective tools for recording inventory transactions. However, most ignore “The Basics” and set themselves up for failure even if scanning is implemented. Improving the performance of your Inventory Management System can be simpler, and far less expensive, than you think.

• Start by mapping the physical movement of product from pre-receipt to shipping confirmation
• Review the corresponding documentation
• Determine appropriate data collection points based on physical movement
• Initiate a continuous cycle counting program
• Have a storage location for all items and all items stored in the appropriate location (sometimes easier said than done, but try it, it works!)
• Review the “flow” of information, where it goes, to who & why & what is done with it
• Review inventory reports for timeliness and accuracy
• Streamline the flow of information

In business and in life, attitude is everything. Sustaining inventory accuracy should be an integral aspect of your business. It is a mentality that must be promoted from the top and be instilled through every employee.

Additionally, when developing your Inventory Management plan of action, you should seize opportunities to eliminate, or at least reduce, the potential for errors. Taking into account all the scenarios is challenging, so involve key internal personnel whenever possible and utilize external resources to supplement your internal Team when necessary.

Once your plan of action is defined, it must be documented and effectively communicated to all employees. Training is an essential step to promoting inventory control, quality assurance, enhanced productivity, improved safety and reducing overall inventory carrying costs.

Documented studies clearly emphasize that employee training results in better procedure execution, reduced stress, and a clearer understanding of the corporate vision. Proper identification of products and their respective storage locations will dramatically decrease the labor time required to find items, pick orders and perform put-away functions.

Another simple way to improve Inventory Management is to maintain good housekeeping. A clean work environment will reduce “touch labor”, allow quick access to the desired SKU and will increase productivity. The elimination of “reconnaissance missions” (looking for the desired product that is somewhere?? in the "wherehouse") will save valuable time, most likely overtime dollars, and improve Customer Service. Most importantly, aisles free of impediments and temporarily stored product will allow unobstructed access to your inventory. It’s similar to how your car always runs better after it’s washed, but good housekeeping always increases the amount of space in your warehouse.

An effective Inventory Management System starts with an efficient storage system; one designed to support order fulfillment and Customer requirements. It is also important to remember the correlation of Inventory Management to your Supply Chain initiatives and the overall impact on your business objectives relative to Sales & Marketing.

Start with the basics and have a plan to work yourself up to real-time inventory transaction reporting. Accurate Inventory Management requires effort, time, discipline and attention to detail, but the Payback can be huge!

Note - I wrote this as a White Paper for a client a few years ago and it still holds true.