SlideShare ist ein Scribd-Unternehmen logo
1 von 66
Downloaden Sie, um offline zu lesen
Maximizing Profit Through People
Management	

	

Donnie Shelton	

Raleigh, NC	

donnie.shelton@trianglepest.com	

@donnieray3
Let’s take some time to focus	

Turn off or do not disturb…. Don’t be offended!	


© Triangle Pest Control LLC. All Rights Reserved
The purpose of this presentation is
how to increase profits through
productivity and efficiency	

	

“Any intelligent conversation begins with
defining your terms” – my old statistics
professor	

	

© Triangle Pest Control LLC. All Rights Reserved
Definition of terms	


What is your definition of winning in
business?	


© Triangle Pest Control LLC. All Rights Reserved
Definition of terms	


What is winning in business?	


	

“Profits and cash are the only true
measure of health of your business”
-- George Cloutier	


© Triangle Pest Control LLC. All Rights Reserved
Definition of terms	


What is winning in business?	

	

	

	

	

•  For the purposes of this discussion, winning is	

•  How much profit does your business generate	

•  How much cash you have for emergencies	

•  The sustainability of your profit model	


© Triangle Pest Control LLC. All Rights Reserved
Definition of terms	


What do you consider a “healthy”
profit (before taxes)?	

	

	

	


© Triangle Pest Control LLC. All Rights Reserved
Definition of terms	


What do you consider a “healthy”
profit?	

	

Regardless of size for the purposes of this discussion	

	


>15-20% on the bottom line	

•  After owner salary	

•  It is ok to re-invest profit for growth (but you
should be able to pull it if needed)	

	

© Triangle Pest Control LLC. All Rights Reserved
Definition of terms	


How is productivity defined for this
discussion?	

	

- How many people measure this?
Care to share?	


© Triangle Pest Control LLC. All Rights Reserved
Definition of terms	


How is productivity defined for this
discussion?	

	

	

Rev/Stop*/**	

•  >$100k per stop	


	

*Note that large one-time revenue spikes can skew this number. It should be calculated by service line to identify
these anomalies	

	

**Note that you can also look at revenue per hour	


© Triangle Pest Control LLC. All Rights Reserved
Some final disclaimers…	


1.  This is what has worked for me and my
company	

a.  That does not mean that it will work at
yours	

2.  This presentation has both opinion* and
facts	

	

*The facts are well researched. The
opinions are well… opinions	


© Triangle Pest Control LLC. All Rights Reserved
Part I	

	

The thought process of how
we run operate our business
(the theory)	

	

	

© Triangle Pest Control LLC. All Rights Reserved
How many of you know a business owner like this? 	

	

•  Very frugal	

•  Dissects the P&L for profit leaks	

•  Will send a rep packing over $0.30	

•  A true price shopper	

•  Refuses to pay much over minimum wage for
technicians	

•  Has technicians driving around just
wasting time	


© Triangle Pest Control LLC. All Rights Reserved
What is the largest expense on the P&L?	

	

	

	


© Triangle Pest Control LLC. All Rights Reserved
What is the largest expense on the P&L?	

	


Payroll	


	

In my example, some business owners have misplaced
enthusiasm for making a profit	


© Triangle Pest Control LLC. All Rights Reserved
Profit comes from productivity	


What do we really sell customers? 	

	

-  Operationally speaking? This is not a marketing
presentation!	


© Triangle Pest Control LLC. All Rights Reserved
What do we really sell customers?	

	


	


Time	

© Triangle Pest Control LLC. All Rights Reserved
Profit comes from productivity	

What is the point?	

To win on the bottom line, you have to be really good
at managing your expenses 	


	

	

Revenue – Expenses = Profit	

•  Spend your time on the largest expense on the
books (not small game)	


© Triangle Pest Control LLC. All Rights Reserved
Do you see a trend?	


© Triangle Pest Control LLC. All Rights Reserved
Principle #1: Profit comes from high productivity	


Profit	


Your ability to do more with less is directly
proportional to your profit (assuming pricing is
in line)	


© Triangle Pest Control LLC. All Rights Reserved
We are going to talk about pirates	


© Triangle Pest Control LLC. All Rights Reserved
Why are we talking about pirates?	


This is a logic fallacy	

	

Sometimes we have the tendency to confuse
causation with correlation… 	

	

Causation ≠ Correlation**	

	

**Interestingly… The number of pirates in the last 8 years have skyrocketed. As such, the planet
has been cooling	


© Triangle Pest Control LLC. All Rights Reserved
Quick question	


Have you ever came back from a conference with
a great idea, implemented it and then a few
months later it….. Just….. Died? 	


What’s he
looking at?	


© Triangle Pest Control LLC. All Rights Reserved
Which is more important?	


Strategy	

•  Techniques that you use
to compete and gain
customers	

•  Are based on multiple
factors: market,
positioning, etc…	

•  Change as market
conditions change	


Culture	

•  How your people work	

•  How your people interact
with your customers 	

•  How your people view
you, your customers, and
their role in the
organization	


© Triangle Pest Control LLC. All Rights Reserved
Who are these guys?	


© Triangle Pest Control LLC. All Rights Reserved
Who are these guys?	


Mark Fields	

•  Next CEO of Ford	

•  Responsible for Ford’s
turnaround	


Peter Drucker, PHD	

•  Medal of freedom	

•  Professor of business	

•  Famous Author	


“Culture eats strategy for
breakfast”	

© Triangle Pest Control LLC. All Rights Reserved
Causation vs. Correlation	


Where do we get into problems in our business?	

	

We tend to assume profit is a result of strategy, but
actually it is not quite that simple… 	

•  Strategies are the cause (Correlate) 	

•  Culture will take care of itself (Cause)	

	

What it means is that no strategy can be executed
without a strong foundational culture	

I personally think both are important. It is the order
that really matters.	

© Triangle Pest Control LLC. All Rights Reserved
Culture vs. Strategy	


Think about it. 	

	

•  You can have the most genius
strategy in the world, but if
you don’t have the culture
you cannot execute	

	

•  It is like having a great

Broken computer
(not an Apple)	


program but a broken
computer. 	

© Triangle Pest Control LLC. All Rights Reserved
Culture eats strategy for breakfast	


Jack Welch	

•  Arguably one of the best CEOs ever	

•  30 yrs in the job	

•  GE’s value rose 4000% on his watch	

How he operated	

•  20-70-10 vital curve 	

•  80% of his time was on culture (not strategy)	

•  Public hangings for bad culture	

•  Biggest mistake looking at numbers and not
culture fit for acquisitions	

© Triangle Pest Control LLC. All Rights Reserved
Principle #2: High productivity is a first a function of
culture and then strategy	

Profit	


High Productivity	


© Triangle Pest Control LLC. All Rights Reserved
How many have read this book?	


	

	

	

	

	

Jim Collins	

•  Massive research project of “great” businesses	

•  Determine principles makes companies “great” 	

•  Outperform the market by multiples	


© Triangle Pest Control LLC. All Rights Reserved
Good to great	


Key findings	

•  “Sustained great results depend upon building a
culture full of self disciplined people who take
disciplined action” 	

•  “A culture of discipline is not just about action.
It is about getting disciplined people who
engage in disciplined thought and then who
take disciplined action.”	

	


© Triangle Pest Control LLC. All Rights Reserved
Good to great	


This makes sense	

•  How many successful, undisciplined
business owners do you know (that
have been in business >10yrs)? 	

	

•  Disciplined people will debate and find
the right strategies	

•  Discipline is the bedrock upon which
strategy is built	

© Triangle Pest Control LLC. All Rights Reserved
Principle #3: A disciplined culture produces high
productivity	

Profit	


High productivity	


Disciplined culture	


© Triangle Pest Control LLC. All Rights Reserved
Part II	

How we developed our culture and
productivity to support a high profit
company	

	

	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	


Profit	


Theory	


Execution	

High productivity	


Disciplined culture	


© Triangle Pest Control LLC. All Rights Reserved
My typical day	

I have ideas - I get them	

•  The morning run	

•  The morning shower	

•  On the way to work	

•  When I read an article	

•  While I am reviewing a operational reports	

	

	

Patience is not a virtue that I was blessed with	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

What did this behavior create?	

	

	

	

	

	

	

•  Staff that never fully executed anything	

•  Lots of activity but little work	

•  A constant place of shifting priorities	

•  We suffered from “CADD”…. And I was the cause	

© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	


It all starts at the top	

	

	

As a leader, I had to develop management discipline	

•  Decide what was really priority	

•  Stay the course, even though it was killing me	

•  Learn how to say no when I really wanted to
say yes	

•  Realize that I had to involve others in decisions	

•  Create “stop doing” lists	

© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

Change #1: I had to be disciplined myself in how I
managed the company and how I engaged my
managers	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

Have you ever taken the time to get very clear on
what type of people and culture you want at your
company? 	

	

	

	

	

	

Can anyone in your company recite what’s
in it?	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

I am sure that you know where you want the
business to go and how to get there. 	

	

	

	

You know what type of people you want to be there	

	

The problem: As you grow staff, it becomes very
difficult to communicate that vision with absolute
clarity	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

	

Strategic Objective	

•  A document that details	

•  What kind of company you want to be 	

•  Your values	

•  Your culture	

•  Your customers	

•  What you do and more importantly, what you
don’t	

This is not a mission statement or a platitude of values(though it
contains both) to be put on a wall	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

Change II: We created a “real” Strategic Objective	

	

	

	

	

•  Clarity on where you are going as a company	

•  Every employee is tested on it	

•  Every company meeting I talk about it	

•  When people start rolling their eyes, I know
that I am talking about it just about enough	


© Triangle Pest Control LLC. All Rights Reserved
Riddle	

What cost us 4k in three weeks (with $0 return on
capital) and only increases exponentially each and
everyday that it exists?	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	


A BAD HIRE	

	

• 
• 
• 
• 

It will happen to everyone	

Approach recruiting much like you do marketing 	

What is the demographic? (age, likes, dislikes, etc)	

Market relentlessly to that person	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	


Disciplining people

Disciplined people	


	

Step 1: Creating a disciplined culture
starts with staffing with
disciplined people	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	


	

How do we hire disciplined people?	

•  The following is required for consideration	

•  Usually have hobbies outside of work that
require discipline (sports, intellectual)	

•  Usually is already employed	

•  No prior experience in our industry	

•  I hate “the way we did at “_______” 	

•  Ownership	

•  Demonstrated ownership in something	

© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

What is the point? 	

	

Make hiring the disciplined people priority #1	

-- Hint: It is! 	

	

•  We select based on our culture (from Strat Obj) 	

•  We use personality profiles	

•  We use scorecards (that line up with our culture)	

•  Probing questions that dig (and then dig more)	


© Triangle Pest Control LLC. All Rights Reserved
Jim Collins, How the mighty fall	

How companies move from great to irrelevant	

	

Same approach as Good to Great (researched
declining companies with comparisons) 	

	

Key marker of a company on the decline:	

“There is a declining proportion of the right people in key
seats, because of losing the right people and/or growing
beyond the organization’s ability to get enough people to
execute on that growth with excellence” – Jim Collins	

	

	

© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

Change III: We completely revamped our hiring
systems to produce disciplined people	

	

•  Clarity on who those people are (Strategic Obj)	

•  Systems to attract those people	

•  Systems to filter the wrong people (Scorecards)	

This is not something you want to delegate.
Remember Jack Welch and 80%? 	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

Go through the process and you do the following: 	

	

1.  You create a strategic objective to get clear on the
culture you want and what your business stands
for	

2.  You re-vamp your recruiting and hiring systems to
produce disciplined people	

3.  Now what?	

	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

During the tenure of a politician, what is the most
productive time? 	

	

	

	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

90- Day Objectives	

•  All positions at Triangle Pest Control have them	

•  Talk about a 1st impression of how we do things	

•  Clear document that details 	

•  A clear path to success in the first 90 days	

•  Clear communication of what is expected 	

•  Clear communication of performance
expectations	

•  Clear communications for where the lines of
responsibility lie (training, performance, etc…)	

	

© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

Change IV: We got very deliberate about the onboarding process of each team member	

	

This	

Not This	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture Summary	

1.  Start with yourself as a leader 	

2.  Develop a “real” Strategic Objective	

3.  Build a targeted recruiting and hiring system that
attracts disciplined people	

4.  Manage the on-boarding process to clearly
communicate and set expectations	


© Triangle Pest Control LLC. All Rights Reserved
How we improve and manage productivity	


Profit	


High productivity	


Disciplined culture	


© Triangle Pest Control LLC. All Rights Reserved
How we improve and manage productivity	

Would you like to watch or play the following game? 	

•  None of the players know the score 	

•  Feedback is given at the end of the game 	

•  No clear out of bounds, no clear score lines 	

•  Rules are pretty much made as you go along	

	


© Triangle Pest Control LLC. All Rights Reserved
How we improve and manage productivity	

Total transparency & frequent feedback	

•  Don’t be afraid to tell people where you are out 	

•  My experience is that oftentimes employee views
of their performance are over inflated	

•  It is easy to be “real” when everyone knows what is
going on	

	

	

“Meatin” our goals (idea from Harden Blackwell)	

© Triangle Pest Control LLC. All Rights Reserved
How we improve and manage productivity	

Change #1: We completely opened our books to let
everyone on the team know what the score is	

	

•  You can use ratios	

•  No one needs to know your salary	

•  If you cannot measure it, you cannot manage it	

•  You will get more people who play the “game” vs.
just playing for themselves	


© Triangle Pest Control LLC. All Rights Reserved
How we created a disciplined culture	

If you want have high performance team, everyone
must always be getting better (otherwise they are
getting worse)	

	

•  Being in a car traveling uphill with no brakes. The
only choices are moving forward or backwards.
There is no holding steady. 	


© Triangle Pest Control LLC. All Rights Reserved
How we created a high-profit company	


Profit	


High productivity	


Disciplined culture	


© Triangle Pest Control LLC. All Rights Reserved
Parting thoughts	

“Everything in our strategy our competitors could copy
tomorrow … but they can't copy the culture – and they
know it.” Herb Kelleher, Founder, Southwest	

	

	

	

	

What is the point? 	

•  You have to build the proper foundation
before you can expect to see the results	


© Triangle Pest Control LLC. All Rights Reserved
Triangle Pest Control Business Framework	


Profit	


Culture of execution	


Disciplined people	


© Triangle Pest Control LLC. All Rights Reserved
Resources to help you get started	

Managers	

•  Good to great, Jim Collins	

•  E-Myth, Michael Gerber	

•  Entreleadership, Dave Ramsey	

•  How the mighty fall, Jim Collins	

•  Who: Hiring “A” players, Geoff Smart & Randy Street	

	

All Staff	

•  Making yourself indispensible, Mark Samuel	

•  Super Service,Val & Jeff Gee	


© Triangle Pest Control LLC. All Rights Reserved
Questions?	

	

Donnie Shelton	

Raleigh, NC	

donnie.shelton@trianglepest.com	

@donnieray3

Weitere ähnliche Inhalte

Ähnlich wie Pest world 2013 managing people for profit

2014 npma academy presentation
2014 npma academy presentation 2014 npma academy presentation
2014 npma academy presentation jessrehm
 
Approaches for Commercialization of Post Harvest Technologies
Approaches for Commercialization of Post Harvest TechnologiesApproaches for Commercialization of Post Harvest Technologies
Approaches for Commercialization of Post Harvest TechnologiesRamabhau Patil
 
Business operations 101: build the company that you always wanted
Business operations 101: build the company that you always wantedBusiness operations 101: build the company that you always wanted
Business operations 101: build the company that you always wantedDonnie Shelton
 
Kivi health start_of_a_startup
Kivi health start_of_a_startupKivi health start_of_a_startup
Kivi health start_of_a_startupRajandeep Singh
 
Business operations 301 getting your employees to think like owners
Business operations 301  getting your employees to think like ownersBusiness operations 301  getting your employees to think like owners
Business operations 301 getting your employees to think like ownersDonnie Shelton
 
Now is the best time to start a company… Now what?
Now is the best time to start a company… Now what?Now is the best time to start a company… Now what?
Now is the best time to start a company… Now what?Brian Kelly
 
Npma 2015 referral websites reputation management
Npma 2015   referral websites reputation managementNpma 2015   referral websites reputation management
Npma 2015 referral websites reputation managementDonnie Shelton
 
Overview of Lean Startup and FastWorks
Overview of Lean Startup and FastWorksOverview of Lean Startup and FastWorks
Overview of Lean Startup and FastWorksSarvesh Tiwari
 
Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...
Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...
Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...Snag
 
Effective Business Practices 101 (7/8): Market and Environmental Health Consi...
Effective Business Practices 101 (7/8): Market and Environmental Health Consi...Effective Business Practices 101 (7/8): Market and Environmental Health Consi...
Effective Business Practices 101 (7/8): Market and Environmental Health Consi...Dmitri Tcherbadji
 
Starting up evaluating the potential of a business by mahesh krishnamurti jul...
Starting up evaluating the potential of a business by mahesh krishnamurti jul...Starting up evaluating the potential of a business by mahesh krishnamurti jul...
Starting up evaluating the potential of a business by mahesh krishnamurti jul...GetEvangelized
 
Moving the Needle on Employee Engagement
Moving the Needle on Employee EngagementMoving the Needle on Employee Engagement
Moving the Needle on Employee EngagementQualtrics
 
Guidewire values and_practices
Guidewire values and_practicesGuidewire values and_practices
Guidewire values and_practicesDenise Airlie
 
Fiona Anderson, My Change Expert - Grow your own highly productive culture
Fiona Anderson, My Change Expert - Grow your own highly productive cultureFiona Anderson, My Change Expert - Grow your own highly productive culture
Fiona Anderson, My Change Expert - Grow your own highly productive cultureRose Adderley
 

Ähnlich wie Pest world 2013 managing people for profit (20)

2014 npma academy presentation
2014 npma academy presentation 2014 npma academy presentation
2014 npma academy presentation
 
0-2M 6 yrs
0-2M 6 yrs0-2M 6 yrs
0-2M 6 yrs
 
Agility mgt v2md
Agility mgt v2mdAgility mgt v2md
Agility mgt v2md
 
Approaches for Commercialization of Post Harvest Technologies
Approaches for Commercialization of Post Harvest TechnologiesApproaches for Commercialization of Post Harvest Technologies
Approaches for Commercialization of Post Harvest Technologies
 
Business operations 101: build the company that you always wanted
Business operations 101: build the company that you always wantedBusiness operations 101: build the company that you always wanted
Business operations 101: build the company that you always wanted
 
Business Operations 101
Business Operations 101Business Operations 101
Business Operations 101
 
Kivi health start_of_a_startup
Kivi health start_of_a_startupKivi health start_of_a_startup
Kivi health start_of_a_startup
 
Business operations 301 getting your employees to think like owners
Business operations 301  getting your employees to think like ownersBusiness operations 301  getting your employees to think like owners
Business operations 301 getting your employees to think like owners
 
Business Operations 301
Business Operations 301Business Operations 301
Business Operations 301
 
Now is the best time to start a company… Now what?
Now is the best time to start a company… Now what?Now is the best time to start a company… Now what?
Now is the best time to start a company… Now what?
 
Npma 2015 referral websites reputation management
Npma 2015   referral websites reputation managementNpma 2015   referral websites reputation management
Npma 2015 referral websites reputation management
 
Overview of Lean Startup and FastWorks
Overview of Lean Startup and FastWorksOverview of Lean Startup and FastWorks
Overview of Lean Startup and FastWorks
 
Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...
Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...
Being a Cultural Warrior: 3 Proven Practices for Driving Engagement and Effic...
 
SWaMFest_-_PM_for_Entrepreneurs_v2
SWaMFest_-_PM_for_Entrepreneurs_v2SWaMFest_-_PM_for_Entrepreneurs_v2
SWaMFest_-_PM_for_Entrepreneurs_v2
 
Effective Business Practices 101 (7/8): Market and Environmental Health Consi...
Effective Business Practices 101 (7/8): Market and Environmental Health Consi...Effective Business Practices 101 (7/8): Market and Environmental Health Consi...
Effective Business Practices 101 (7/8): Market and Environmental Health Consi...
 
Starting up evaluating the potential of a business by mahesh krishnamurti jul...
Starting up evaluating the potential of a business by mahesh krishnamurti jul...Starting up evaluating the potential of a business by mahesh krishnamurti jul...
Starting up evaluating the potential of a business by mahesh krishnamurti jul...
 
Hedgehog & BHAG
Hedgehog & BHAGHedgehog & BHAG
Hedgehog & BHAG
 
Moving the Needle on Employee Engagement
Moving the Needle on Employee EngagementMoving the Needle on Employee Engagement
Moving the Needle on Employee Engagement
 
Guidewire values and_practices
Guidewire values and_practicesGuidewire values and_practices
Guidewire values and_practices
 
Fiona Anderson, My Change Expert - Grow your own highly productive culture
Fiona Anderson, My Change Expert - Grow your own highly productive cultureFiona Anderson, My Change Expert - Grow your own highly productive culture
Fiona Anderson, My Change Expert - Grow your own highly productive culture
 

Kürzlich hochgeladen

Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyfashionfound007
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxesiyasmengesha
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First RespondersBPOQe
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyHanna Klim
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKELtd
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 

Kürzlich hochgeladen (20)

Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Amazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the companyAmazon ppt.pptx Amazon about the company
Amazon ppt.pptx Amazon about the company
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptxChapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
Chapter_Five_The_Rural_Development_Policies_and_Strategy_of_Ethiopia.pptx
 
Trauma Training Service for First Responders
Trauma Training Service for First RespondersTrauma Training Service for First Responders
Trauma Training Service for First Responders
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Anyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agencyAnyhr.io | Presentation HR&Recruiting agency
Anyhr.io | Presentation HR&Recruiting agency
 
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
ISONIKE Ltd Accreditation for the Conformity Assessment and Certification of ...
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 

Pest world 2013 managing people for profit

  • 1. Maximizing Profit Through People Management Donnie Shelton Raleigh, NC donnie.shelton@trianglepest.com @donnieray3
  • 2. Let’s take some time to focus Turn off or do not disturb…. Don’t be offended! © Triangle Pest Control LLC. All Rights Reserved
  • 3. The purpose of this presentation is how to increase profits through productivity and efficiency “Any intelligent conversation begins with defining your terms” – my old statistics professor © Triangle Pest Control LLC. All Rights Reserved
  • 4. Definition of terms What is your definition of winning in business? © Triangle Pest Control LLC. All Rights Reserved
  • 5. Definition of terms What is winning in business? “Profits and cash are the only true measure of health of your business” -- George Cloutier © Triangle Pest Control LLC. All Rights Reserved
  • 6. Definition of terms What is winning in business? •  For the purposes of this discussion, winning is •  How much profit does your business generate •  How much cash you have for emergencies •  The sustainability of your profit model © Triangle Pest Control LLC. All Rights Reserved
  • 7. Definition of terms What do you consider a “healthy” profit (before taxes)? © Triangle Pest Control LLC. All Rights Reserved
  • 8. Definition of terms What do you consider a “healthy” profit? Regardless of size for the purposes of this discussion >15-20% on the bottom line •  After owner salary •  It is ok to re-invest profit for growth (but you should be able to pull it if needed) © Triangle Pest Control LLC. All Rights Reserved
  • 9. Definition of terms How is productivity defined for this discussion? - How many people measure this? Care to share? © Triangle Pest Control LLC. All Rights Reserved
  • 10. Definition of terms How is productivity defined for this discussion? Rev/Stop*/** •  >$100k per stop *Note that large one-time revenue spikes can skew this number. It should be calculated by service line to identify these anomalies **Note that you can also look at revenue per hour © Triangle Pest Control LLC. All Rights Reserved
  • 11. Some final disclaimers… 1.  This is what has worked for me and my company a.  That does not mean that it will work at yours 2.  This presentation has both opinion* and facts *The facts are well researched. The opinions are well… opinions © Triangle Pest Control LLC. All Rights Reserved
  • 12. Part I The thought process of how we run operate our business (the theory) © Triangle Pest Control LLC. All Rights Reserved
  • 13. How many of you know a business owner like this? •  Very frugal •  Dissects the P&L for profit leaks •  Will send a rep packing over $0.30 •  A true price shopper •  Refuses to pay much over minimum wage for technicians •  Has technicians driving around just wasting time © Triangle Pest Control LLC. All Rights Reserved
  • 14. What is the largest expense on the P&L? © Triangle Pest Control LLC. All Rights Reserved
  • 15. What is the largest expense on the P&L? Payroll In my example, some business owners have misplaced enthusiasm for making a profit © Triangle Pest Control LLC. All Rights Reserved
  • 16. Profit comes from productivity What do we really sell customers? -  Operationally speaking? This is not a marketing presentation! © Triangle Pest Control LLC. All Rights Reserved
  • 17. What do we really sell customers? Time © Triangle Pest Control LLC. All Rights Reserved
  • 18. Profit comes from productivity What is the point? To win on the bottom line, you have to be really good at managing your expenses Revenue – Expenses = Profit •  Spend your time on the largest expense on the books (not small game) © Triangle Pest Control LLC. All Rights Reserved
  • 19. Do you see a trend? © Triangle Pest Control LLC. All Rights Reserved
  • 20. Principle #1: Profit comes from high productivity Profit Your ability to do more with less is directly proportional to your profit (assuming pricing is in line) © Triangle Pest Control LLC. All Rights Reserved
  • 21. We are going to talk about pirates © Triangle Pest Control LLC. All Rights Reserved
  • 22. Why are we talking about pirates? This is a logic fallacy Sometimes we have the tendency to confuse causation with correlation… Causation ≠ Correlation** **Interestingly… The number of pirates in the last 8 years have skyrocketed. As such, the planet has been cooling © Triangle Pest Control LLC. All Rights Reserved
  • 23. Quick question Have you ever came back from a conference with a great idea, implemented it and then a few months later it….. Just….. Died? What’s he looking at? © Triangle Pest Control LLC. All Rights Reserved
  • 24. Which is more important? Strategy •  Techniques that you use to compete and gain customers •  Are based on multiple factors: market, positioning, etc… •  Change as market conditions change Culture •  How your people work •  How your people interact with your customers •  How your people view you, your customers, and their role in the organization © Triangle Pest Control LLC. All Rights Reserved
  • 25. Who are these guys? © Triangle Pest Control LLC. All Rights Reserved
  • 26. Who are these guys? Mark Fields •  Next CEO of Ford •  Responsible for Ford’s turnaround Peter Drucker, PHD •  Medal of freedom •  Professor of business •  Famous Author “Culture eats strategy for breakfast” © Triangle Pest Control LLC. All Rights Reserved
  • 27. Causation vs. Correlation Where do we get into problems in our business? We tend to assume profit is a result of strategy, but actually it is not quite that simple… •  Strategies are the cause (Correlate) •  Culture will take care of itself (Cause) What it means is that no strategy can be executed without a strong foundational culture I personally think both are important. It is the order that really matters. © Triangle Pest Control LLC. All Rights Reserved
  • 28. Culture vs. Strategy Think about it. •  You can have the most genius strategy in the world, but if you don’t have the culture you cannot execute •  It is like having a great Broken computer (not an Apple) program but a broken computer. © Triangle Pest Control LLC. All Rights Reserved
  • 29. Culture eats strategy for breakfast Jack Welch •  Arguably one of the best CEOs ever •  30 yrs in the job •  GE’s value rose 4000% on his watch How he operated •  20-70-10 vital curve •  80% of his time was on culture (not strategy) •  Public hangings for bad culture •  Biggest mistake looking at numbers and not culture fit for acquisitions © Triangle Pest Control LLC. All Rights Reserved
  • 30. Principle #2: High productivity is a first a function of culture and then strategy Profit High Productivity © Triangle Pest Control LLC. All Rights Reserved
  • 31. How many have read this book? Jim Collins •  Massive research project of “great” businesses •  Determine principles makes companies “great” •  Outperform the market by multiples © Triangle Pest Control LLC. All Rights Reserved
  • 32. Good to great Key findings •  “Sustained great results depend upon building a culture full of self disciplined people who take disciplined action” •  “A culture of discipline is not just about action. It is about getting disciplined people who engage in disciplined thought and then who take disciplined action.” © Triangle Pest Control LLC. All Rights Reserved
  • 33. Good to great This makes sense •  How many successful, undisciplined business owners do you know (that have been in business >10yrs)? •  Disciplined people will debate and find the right strategies •  Discipline is the bedrock upon which strategy is built © Triangle Pest Control LLC. All Rights Reserved
  • 34. Principle #3: A disciplined culture produces high productivity Profit High productivity Disciplined culture © Triangle Pest Control LLC. All Rights Reserved
  • 35. Part II How we developed our culture and productivity to support a high profit company © Triangle Pest Control LLC. All Rights Reserved
  • 36. How we created a disciplined culture Profit Theory Execution High productivity Disciplined culture © Triangle Pest Control LLC. All Rights Reserved
  • 37. My typical day I have ideas - I get them •  The morning run •  The morning shower •  On the way to work •  When I read an article •  While I am reviewing a operational reports Patience is not a virtue that I was blessed with © Triangle Pest Control LLC. All Rights Reserved
  • 38. How we created a disciplined culture What did this behavior create? •  Staff that never fully executed anything •  Lots of activity but little work •  A constant place of shifting priorities •  We suffered from “CADD”…. And I was the cause © Triangle Pest Control LLC. All Rights Reserved
  • 39. How we created a disciplined culture It all starts at the top As a leader, I had to develop management discipline •  Decide what was really priority •  Stay the course, even though it was killing me •  Learn how to say no when I really wanted to say yes •  Realize that I had to involve others in decisions •  Create “stop doing” lists © Triangle Pest Control LLC. All Rights Reserved
  • 40. How we created a disciplined culture Change #1: I had to be disciplined myself in how I managed the company and how I engaged my managers © Triangle Pest Control LLC. All Rights Reserved
  • 41. How we created a disciplined culture Have you ever taken the time to get very clear on what type of people and culture you want at your company? Can anyone in your company recite what’s in it? © Triangle Pest Control LLC. All Rights Reserved
  • 42. How we created a disciplined culture I am sure that you know where you want the business to go and how to get there. You know what type of people you want to be there The problem: As you grow staff, it becomes very difficult to communicate that vision with absolute clarity © Triangle Pest Control LLC. All Rights Reserved
  • 43. How we created a disciplined culture Strategic Objective •  A document that details •  What kind of company you want to be •  Your values •  Your culture •  Your customers •  What you do and more importantly, what you don’t This is not a mission statement or a platitude of values(though it contains both) to be put on a wall © Triangle Pest Control LLC. All Rights Reserved
  • 44. How we created a disciplined culture Change II: We created a “real” Strategic Objective •  Clarity on where you are going as a company •  Every employee is tested on it •  Every company meeting I talk about it •  When people start rolling their eyes, I know that I am talking about it just about enough © Triangle Pest Control LLC. All Rights Reserved
  • 45. Riddle What cost us 4k in three weeks (with $0 return on capital) and only increases exponentially each and everyday that it exists? © Triangle Pest Control LLC. All Rights Reserved
  • 46. How we created a disciplined culture A BAD HIRE •  •  •  •  It will happen to everyone Approach recruiting much like you do marketing What is the demographic? (age, likes, dislikes, etc) Market relentlessly to that person © Triangle Pest Control LLC. All Rights Reserved
  • 47. How we created a disciplined culture Disciplining people Disciplined people Step 1: Creating a disciplined culture starts with staffing with disciplined people © Triangle Pest Control LLC. All Rights Reserved
  • 48. How we created a disciplined culture How do we hire disciplined people? •  The following is required for consideration •  Usually have hobbies outside of work that require discipline (sports, intellectual) •  Usually is already employed •  No prior experience in our industry •  I hate “the way we did at “_______” •  Ownership •  Demonstrated ownership in something © Triangle Pest Control LLC. All Rights Reserved
  • 49. How we created a disciplined culture What is the point? Make hiring the disciplined people priority #1 -- Hint: It is! •  We select based on our culture (from Strat Obj) •  We use personality profiles •  We use scorecards (that line up with our culture) •  Probing questions that dig (and then dig more) © Triangle Pest Control LLC. All Rights Reserved
  • 50. Jim Collins, How the mighty fall How companies move from great to irrelevant Same approach as Good to Great (researched declining companies with comparisons) Key marker of a company on the decline: “There is a declining proportion of the right people in key seats, because of losing the right people and/or growing beyond the organization’s ability to get enough people to execute on that growth with excellence” – Jim Collins © Triangle Pest Control LLC. All Rights Reserved
  • 51. How we created a disciplined culture Change III: We completely revamped our hiring systems to produce disciplined people •  Clarity on who those people are (Strategic Obj) •  Systems to attract those people •  Systems to filter the wrong people (Scorecards) This is not something you want to delegate. Remember Jack Welch and 80%? © Triangle Pest Control LLC. All Rights Reserved
  • 52. How we created a disciplined culture Go through the process and you do the following: 1.  You create a strategic objective to get clear on the culture you want and what your business stands for 2.  You re-vamp your recruiting and hiring systems to produce disciplined people 3.  Now what? © Triangle Pest Control LLC. All Rights Reserved
  • 53. How we created a disciplined culture During the tenure of a politician, what is the most productive time? © Triangle Pest Control LLC. All Rights Reserved
  • 54. How we created a disciplined culture 90- Day Objectives •  All positions at Triangle Pest Control have them •  Talk about a 1st impression of how we do things •  Clear document that details •  A clear path to success in the first 90 days •  Clear communication of what is expected •  Clear communication of performance expectations •  Clear communications for where the lines of responsibility lie (training, performance, etc…) © Triangle Pest Control LLC. All Rights Reserved
  • 55. How we created a disciplined culture Change IV: We got very deliberate about the onboarding process of each team member This Not This © Triangle Pest Control LLC. All Rights Reserved
  • 56. How we created a disciplined culture Summary 1.  Start with yourself as a leader 2.  Develop a “real” Strategic Objective 3.  Build a targeted recruiting and hiring system that attracts disciplined people 4.  Manage the on-boarding process to clearly communicate and set expectations © Triangle Pest Control LLC. All Rights Reserved
  • 57. How we improve and manage productivity Profit High productivity Disciplined culture © Triangle Pest Control LLC. All Rights Reserved
  • 58. How we improve and manage productivity Would you like to watch or play the following game? •  None of the players know the score •  Feedback is given at the end of the game •  No clear out of bounds, no clear score lines •  Rules are pretty much made as you go along © Triangle Pest Control LLC. All Rights Reserved
  • 59. How we improve and manage productivity Total transparency & frequent feedback •  Don’t be afraid to tell people where you are out •  My experience is that oftentimes employee views of their performance are over inflated •  It is easy to be “real” when everyone knows what is going on “Meatin” our goals (idea from Harden Blackwell) © Triangle Pest Control LLC. All Rights Reserved
  • 60. How we improve and manage productivity Change #1: We completely opened our books to let everyone on the team know what the score is •  You can use ratios •  No one needs to know your salary •  If you cannot measure it, you cannot manage it •  You will get more people who play the “game” vs. just playing for themselves © Triangle Pest Control LLC. All Rights Reserved
  • 61. How we created a disciplined culture If you want have high performance team, everyone must always be getting better (otherwise they are getting worse) •  Being in a car traveling uphill with no brakes. The only choices are moving forward or backwards. There is no holding steady. © Triangle Pest Control LLC. All Rights Reserved
  • 62. How we created a high-profit company Profit High productivity Disciplined culture © Triangle Pest Control LLC. All Rights Reserved
  • 63. Parting thoughts “Everything in our strategy our competitors could copy tomorrow … but they can't copy the culture – and they know it.” Herb Kelleher, Founder, Southwest What is the point? •  You have to build the proper foundation before you can expect to see the results © Triangle Pest Control LLC. All Rights Reserved
  • 64. Triangle Pest Control Business Framework Profit Culture of execution Disciplined people © Triangle Pest Control LLC. All Rights Reserved
  • 65. Resources to help you get started Managers •  Good to great, Jim Collins •  E-Myth, Michael Gerber •  Entreleadership, Dave Ramsey •  How the mighty fall, Jim Collins •  Who: Hiring “A” players, Geoff Smart & Randy Street All Staff •  Making yourself indispensible, Mark Samuel •  Super Service,Val & Jeff Gee © Triangle Pest Control LLC. All Rights Reserved