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Using A Customer Service Culture To Drive Profit

By Patty Crabtree

In the ever-evolving business landscape, customer service remains a critical function that has been significantly impacted by the pandemic and the trend of employee turnover.

However, amidst these challenges lies a tremendous opportunity. Businesses can establish a customer service culture that not only sets them apart from competitors but also drives long-term success and profitability. Understanding the customer’s perspective is paramount in creating a customer-centric environment.

Consider this eye-opening statistic from a Harvard Business School study by Reichheld and Schefter: a mere 5 percent increase in customer retention can lead to a remarkable profit increase ranging from 25 percent to 95 percent (HBS Working Knowledge, July 10, 2000). This highlights the undeniable impact customer service has on the bottom line.

Bain & Company, a global business consulting leader, reports that repeat customers spend up to 67 percent more with a company during months 31 to 36 than in the initial six months (Bain & Company, customerloyalty.com). It’s evident that taking care of existing customers provides a faster path to cash and fosters increased spending and referrals. As a result, astute business owners prioritize customer retention as a cornerstone of their strategy.

by rekre89

While customer service is often associated with rectifying issues, it is crucial to shift the narrative and view service as an experience that can proactively prevent problems. Too often, businesses design their operations around the expectations of an ideal customer, disregarding the fact that most customers are not perfect.

To truly meet customer needs, organizations must serve customer preferences and anticipate customer requirements in advance. This approach not only enhances customer satisfaction but also minimizes costs, reinforcing the brand and creating a lasting positive impression.

In a notable customer service encounter, Jacob, a representative for a finance company, demonstrated a thoughtful focus on customer care. During a conversation with a potential client, Jacob listened attentively as the client shared their struggles and concerns leading to needing a loan as they inquired about their potential interest rate.

Thoughtfully taking the potential client’s anxiety into account, Jacob said, “This is what we are going to find out together.” This simple statement created a partnership between Jacob and the potential client, putting the prospect at ease and energizing the conversation.

By guiding the potential client through the screening questions with understanding and support, Jacob’s approach fostered a sense of trust and ensured the prospect felt heard and valued. Through this empathic approach, Jacob illustrated the transformative power of a customer-centric mindset, highlighting the importance of partnership and understanding in delivering exceptional customer service experiences.

While this story illustrates working with a prospect, the mindset of being in it together with your customers is critical to a successful customer service culture.

At the heart of a successful customer service culture lies the belief that customer support is not limited to a single department but rather filters through every aspect of the organization.

Adopting Home Depot’s adage, “If you’re not supporting the customer or supporting those who do, what is the value of your job anyway?”, is crucial for establishing a customer-centric mindset that resonates throughout the company. When customer service becomes an integral part of operations and every employee embraces it as their responsibility, the organization can achieve remarkable outcomes.

by Tumisu

One company took such an approach. Each department was challenged to define their customer path pointing back to the external client. This initiative aimed to instill the belief that every individual within the organization had customers to support, and that every action taken contributed to serving those external clients.

Not only did this shift in perspective lead to a profound cultural transformation, it also led to increased profitability. Employees realized that their roles extended beyond their specific departments, encompassing support for every customer within the organization, including their fellow co-workers. Silos were eliminated and processes were streamlined, replaced by a unified focus on providing exceptional service to all customers, both internal and external.

By embracing this holistic approach, the organization witnessed remarkable outcomes. Interdepartmental barriers dissolved as employees recognized the interconnectedness of their roles in delivering a seamless customer experience. The heightened sense of unity and shared purpose fostered collaboration, increased efficiency, and amplified customer satisfaction.

This inspiring story exemplifies how adopting a customer-centric mindset breaks down obstacles, promotes collaboration, and creates an organizational culture dedicated to serving all customers. By recognizing the value of every individual’s contribution and nurturing a shared commitment to customer support, companies unlock the full potential of their teams and deliver exceptional experiences to their customers.

by Milada Vigerova

In the pursuit of a customer service culture, it is vital to shift focus from solely nurturing prospects to consistently supporting existing customers. While businesses invest significant time and effort in the sales process, the post-sale phase is equally crucial. Implementing a comprehensive onboarding process allows businesses to not only collect essential contact and billing information but also begin building a deeper knowledge of their customers. Gaining insights into their preferred contact methods, mailing address, and personal interests enables businesses to tailor interactions and deliver personalized experiences.

Another vital aspect of a customer service culture is speed. Customers have increasingly high expectations when it comes to receiving prompt solutions. Surprising studies reveal that even minor delays can significantly impact a business. For instance, 20% of customers are deterred from making a purchase if an organization takes minutes to respond, and an additional 25 percent refrain from buying if it takes hours to receive an answer. Slow service not only frustrates customers but also results in lost sales, diminished loyalty, and reduced recommendations.

Furthermore, customer rage can initiate a harmful cycle of declining revenue, increased customer dissatisfaction, reduced employee morale, and higher job turnover. Although the Great Resignation may be a recent phenomenon, the trend of quiet quitting has long existed. To counteract this trend, organizations must prioritize creating a customer service culture by empowering employees, providing them with the necessary tools, and offering ongoing training to foster authentic engagement.

In conclusion, cultivating a positive customer service culture is pivotal for sustained business success. By prioritizing customer retention, proactively meeting customer needs, and fostering a customer-centric mindset throughout the organization, businesses can differentiate themselves, drive profitability, and achieve lasting success in a highly competitive landscape.

By Gerd Altmann

If you are open to a conversation about how to use a positive customer service culture to drive profit, or how our in-depth work style and personality assessment could help your team, please contact us at 310-453-6556, extension 403 or email us at [email protected] and our website is www.lighthouseconsulting.com.

Patty Crabtree, Chief Executive Officer guides LCS clients seeking to improve culture design, human capital management, and develop or expand effective remote workforce initiatives. To this specialty she brings 25 years of Operations and Finance leadership, excelling in equipping and empowering profit-focused teams.

Lighthouse Consulting Partners, LLC

Testing Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCP can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication.

Business Consulting for Higher Productivity Division provides stress & time management workshops, sales & customer service training and negotiation skills, leadership training, market research, staff planning, operations, ERP/MRP selection and implementation, refining a remote work force, M&A including due diligence – success planning – value creation and much more.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact Lighthouse Consulting Partners LLC, Santa Monica, CA, (310) 453-6556, ext 410 [email protected] & our website: www.lighthouseconsulting.com.

Now is the Time to Prepare for the Uptick In 2025: Leveraging Opportunity & Setting Your Direction

By David Shaffer, MBA, Sr. Consultant

News item: Economists, investors and the Federal Reserve have sounded alarm bells for months that a recession could come later this year. According to CNN, here are predictions from three financial institutions:

by Thomas Breher

• Bank of America CEO Brian Moynihan told CNN that he believes the US economy could tip into a recession early next year.
• Vanguard economists wrote in their mid-year outlook that they see a high probability of recession, and the “odds have risen that it could be delayed from 2023 to 2024.”
• JPMorgan Chase economists said that there could be a “synchronized global downturn sometime in 2024.”

Investors and economists last year predicted that the US could enter a recession in early 2023, after the Fed set out on its aggressive interest rate hiking campaign to tame inflation.

As we enter the fourth quarter of 2023, most organizations turn their attention to reviewing the success/issues of the current year and try to determine the appropriate focus for the upcoming year and beyond.

With uncertainty comes opportunity if a company can define strategies that incorporate its strengths and recognizes its weaknesses.

With political uncertainty and the rebound from Covid-19, this year more than ever companies are looking into the mirror to see how best to position for uncertainty. This becomes the element of strategic planning that focuses on a realistic assessment of the current environment and a projection of what an optimal future target operating model should look like.

The process of strategic planning we recommend provides an initial, objective assessment and facilitates the strategic planning necessary to meet future opportunities. This planning should focus on the definition and implementation of critical initiatives that project alternatives based upon projected potential scenarios.

What differentiates us is our ability to recognize the resources available, integrate financial scenarios, and develop a process that provides well-defined milestones and deliverables. The planning is designed to leverage the businesses’ capabilities into value creation thereby creating future options for stakeholders and owners.

Most companies schedule their management retreat to develop and establish the strategic direction for the remainder of the year, as well as a three-to-five-year outlook.

The process, although it can contribute to team building by getting away from the daily grind, frequently does not result in strategy. That’s because what starts as a noble intention or cause ends with little to no accountability, letting life return to normal soon after the planning meeting. Effective strategic planning implementation requires accountability both in the creation and management of strategic initiatives.

Here is practical and accountable approach to effective strategic planning and implementation:

by Mario Aranda

Step One. Develop Strategic Initiatives. Many times there is confusion between what initiatives are truly strategic versus what are simply tasks and obstacles that impact the daily operating procedure.

As an example of what not to do: one company identified distribution of various financial reports as a strategic means of raising financial performance. Although the concept may sound strategic it is merely an improvement in task execution, addressing an operational issue rather than a strategy that aligns with the direction of the company.

Here is what you should do: Your strategic planning session should generate and classify two types of initiatives.

1. A few critical initiatives expected to be implemented in the short term, within the current fiscal year
2. A few growth initiatives, requiring more exploration in order to lay the foundation for future critical initiative consideration.

Organizations that define more than five to six critical initiatives are generally focused on task implementation rather than strategy. Likewise, exploration of more than two to three growth initiatives represents a strategic planning outcome that has no direction or focus.

Step Two. Assign Accountability. Once both critical and growth initiatives have been defined, individual project managers should be assigned to lead the charge, plan the implementation, drive the process and communicate the results. The use of chartering is a process commonly used by project managers that allows organizations to clearly convert strategy into action while managing accountability.

For each strategic initiative a charter is written, reported against and reviewed regularly by the management team. It is important to note that as a result of exploration efforts, growth initiatives can often become new critical initiatives that require project managers and charters.

Step Three. Build Strategic Project Charters. Multiple resources are typically used to implement each strategic initiative. However, it is essential that one individual have responsibility and accountability for each project and project charter.

The aggregate of strategic initiatives and associated charters represent the short term and long-term implementation of the key strategies. Although they are prepared and managed by different individuals, it is important that the approach is consistent.

So just what does one include in a charter? Let’s take a deeper look:

Background. Description and facts related to the problem, opportunity or situation that the project is going to address. The background lays out the context of the charter; however the details of the charter are laid out in subsequent sections. The background should refer to discussions generated during the strategic planning session.

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Key Challenges. In every endeavor there are generally challenges. This section provides a description of the challenges, obstacles and issues that must be overcome in order to successfully complete the charter (project) and to deliver the benefits. This is not a description of the tasks, even though carrying out the tasks may be challenging.

Project Overview And Rationale Description of what the project will accomplish at a high level, and a list of the project objectives and business benefits.
Brief example: The objective of this project is to develop and implement a new, automated sales order entry system. The new system should reduce the time to configure and enter a new order from four hours to approximately 20 minutes (objective). It will significantly reduce order entry errors, increase sales and improve customer satisfaction (benefits).

Approach. Description of how the project will be carried out: the team, methodology, and timeframe for carrying out the project. The description should be a high level and should not duplicate the list of milestones or major deliverables.

Scope. Description of the boundaries of the project: what it will and will not address.

Major Milestones. Milestones should reflect the overall approach and should cover the complete lifecycle of the project. The list of milestones does not however constitute a complete project plan. Milestones will be changed and should be updated when the project plan is completed.

Start Date: xx/xx/xxxx End Date: xx/xx/xxxx
First Major Milestone: xx/xx/xxxx
• Major Action: xx/xx/xxxx

Middle Target Date xx/xx/xxxx
• Major Action: xx/xx/xxxx
• Major Action: xx/xx/xxxx

Milestone close to completion: xx/xx/xxxx

Major Deliverables. List of specific accomplishments, documents, or other tangible outputs of the project. Deliverables are not the same as objectives or business benefits. The deliverables may duplicate some of the major milestones (i.e., the completion of a deliverable could be a milestone.)

Stakeholders and Resources

• Customer: [Group that will directly benefit from this project. Could be an internal or external customer or stakeholder group. Be specific.]
• Sponsor: [Executive who has overall responsibility for the project. Approves the charter and budget. Heads up Steering Committee as needed.]
• Project Manager: [Manager with responsibility for the leadership and day-to-day management of the project.]
• Outside Resources: [As needed.]
• Team Members: [Resources assigned to the project who will participate throughout the project. Do not include SMEs (subject matter experts) or other resources that work on specific tasks or are consulted with during the project.]

Project Budget:

Training materials: $ X
Marketing materials: $ Y
Outside resources: $ Z

Assumptions, Constraints and Concerns

Business Consulting Services from Lighthouse Consulting

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Assumptions:

• [Events or conditions that must be in place in order for the project to start or to be completed.]
• E.g. new marketing manager must be hired and in place by no later than 6/1.

Constraints:

• [Limitations that the project must adhere to.]

Concerns:

• [Events or conditions that may occur, that would impact the successful completion of the project.]
• E.g., If the pending acquisition closes before 7/31, some of our team resources may be pulled into the integration effort.

The assumptions, constraints and concerns must be specific to the project – not conditions that are necessary for any project. Examples of conditions that should not be listed are:

• Having adequate budget, resources and strong support from leadership. (True for any project.)
• No major economics or business disruptions. (True for any project.)

Step Four. Monitor And Communicate Progress. Many organizations struggle with the implementation of key initiatives; accountability is frequently a major stumbling block. By assigning Project Managers and the consistent use of project chartering, project plans can be well defined, resourced and monitored. The aggregate results of the charters collectively address the implementation of defined key initiatives. It is customary that on a weekly basis, each Project Manager reports the status of their charter so that combined project plans are managed by a single source. That is, for quality and consistency the overall progress of the initiatives is maintained in a central repository accessible to the entire management & leadership team.

There are many ways to distill strategic planning into execution. Chartering is a great way to focus on execution while creating accountability and buy-in throughout the process.

by Hans

The Economic Outlook For An Uptick In 2025 To 2030

The US Congressional budget Office predicts the economy will continue to expand during the second half of the decade. Output should grow at an average annual rate of 2.1 percent over the 2025–2030 period—faster than the 1.8 percent average annual growth of potential output. The unemployment rate should continue to drift downward, reaching 4.4 percent by the end of 2030. Inflation should be stable during the 2025–2030 period.

If you are open to a conversation about how to develop your next strategic plan to prepare the recession and coming uptick, or how our in-depth work style and personality assessment could help your team, please contact us at 310-453-6556, extension 403 or email us at [email protected] and our website is www.lighthouseconsulting.com.

Recent Open Line event on this Topic

We recently had an Open Line event on this topic with David Shaffer… to see the webinar, please click the link below:
Preparing for the 2024 Potentially Mild Recession & the Uptick In 2025 – Leveraging Opportunity And Setting Your Direction
https://lighthouseconsulting.com/openline/081723/OpenLine081723.mp4

David Shaffer is our practice head for our Business Consulting For Higher Productivity Division for our ERP, M&A and process improvement practice. He is recognized for his ability to effectively integrate all aspects of the business, including financial management, information systems, infrastructure, sales management, sales strategies, and operations. David assists companies from planning through operational and business process improvement opportunities to the selection and integration of management information systems solutions. His range of company support includes start-ups through Fortune 500 firms.

Lighthouse Consulting Partners, LLC

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Customer Service is an Entire Company Endeavor

By Dana Borowka

“If you want to know how to retain customers, you need to step outside your own processes and consider what it is like from the customer’s perspective”, says Deb Brown, author of the upcoming book, Lifelong Loyal Clients.

Brown notes that a mere 5 percent increase in retention will increase profits anywhere from 25 percent to 95 percent, according to a Harvard Business School study (Reichheld and Schefter. “The Economics of E-Loyalty.” HBS Working Knowledge. July 10, 2000).

Clearly customer service has a bigger impact on the bottom line than acquiring new customers. Bain & Company (a leader in global business consulting) reports that repeat customers spend more with a company— up to 67 percent more in months thirty-one to thirty-six than months zero to six.

“Taking care of existing customers is a faster path to cash than pursuing new customers,” says Brown. “Long-term customers spend more and refer more. Knowing this, smart business owners focus on retaining customers.”

Brown runs a company called Touch Your Client’s Heart. She works with business owners who want to build better relationships and never let an important contact slip through the cracks.

In her book she also notes a study done by customer experience consulting firm, Walker, which predicted that by the year 2020, customer experience will be more important than price or product to customers.

“The experience the customer has determines their loyalty and retention,” says Brown. “Customer retention makes a huge impact on your bottom line.”

Nobody’s Perfect

“Customer service is often seen by customers as the place to go when things go wrong,” says Mike Wittenstein, an international customer service expert. “Designing service as an experience is how you can get things to go right in the first place.”

Wittenstein is the founder of StoryMiners, one of the world’s first customer experience design consultancies. Based in Atlanta, he is an accomplished consultant, designer, and speaker who works globally in four languages.

“Too many companies design their business around their expectations of a perfect customer’s needs,” says Wittenstein. “The problem is that most customers aren’t perfect. Most walk in expecting a business to fit the way they want to work.”

A big opportunity for customer service across most industries is to not only respond to customer requests when they ask—but to anticipate their needs earlier. Sensing what customers will need sooner means you can make them happier—and do it at lower cost to the business and with a lift for the brand.

“If you’re not supporting the customer or supporting those who do, what is the value of your job anyway?” says Wittenstein. “That’s a Home Depot adage. It applies to everyone. Customer service works best when it’s brought into the heart of operations. It is truly everyone’s job.”

Onboarding Customers is Job One

“Often, businesses focus on prospects,” says Brown. “They give attention, nurturing, and lots of touches to bring prospects though the sales process. Sometimes, when they come to the end of the sales process and make the sale, business owners breathe a sigh of relief and then stop paying attention.”

Brown says onboarding is where you can change the way you do business and make a big impact on your customers. Customers, at that time, may be feeling a little bit apprehensive about the investment they just made. They may be feeling excited about starting to work with your business, but if you stop the communication, the excitement wanes and they may be a little unsure about what comes next.

“Having a formal intake process can not only assure you have vital information like contact details and billing information, but also be a great way to start getting to know your customers.,” says Brown.

As you interact with your customers, continue to pay attention to details about them and about their lives. It’s those personal details that help you get to know them better and deepen your relationship with them. What are their hobbies, their families? Do they have kids, grandkids, or a significant other? Are there things going on in their extended families? Do they have parents they are caring for? All of these little details are very important to them, and when you pay attention to those details, you find out what matters most to your customers.

“Touching your customers’ hearts and really wowing them is the best way I know to build loyalty to your business,” says Brown.

According to Brown, there are several things you should know about your customers so that you can wow them in a personal way.

• All Contact Info. We live in a virtual world and sometimes never meet face to face with customers. Other times, customers come to our place of business. It’s easy to think that the only information you need is a phone number and email address. Take the time to also get their mailing address.
• Who Do They Care About Deeply? Most people have someone who is important to them, be it a significant other, children, parents, siblings, pets, or a close group of friends. They probably sacrifice for them and spend most of their free time with them.
• What Are They Passionate About? Are there hobbies, activities, causes or organizations they spend their time with? Knowing what is important to them and what brings them joy helps you know them better as individuals.
• How Do They Indulge Themselves? For some people, a piece of chocolate or a cup of coffee is the thing that makes them happy. Others enjoy going to the theater or reading a book. Knowing what your customers would do to treat themselves allows you to customize how you reward them.

We’re Sorry, So Sorry

Sometimes, you make one mistake and you can apologize and move on. Once in a while, however, you may feel the need to do a little more. It may be that you have dropped the ball more than once. If you need to apologize in a bigger way, it might be a good time to send an “I’m sorry” gift.

“It isn’t necessary to send a gift every time you make a mistake,” says Brown. “Often a simple apology in person or over the phone is enough to fix what went wrong. An email or personal note in the mail can add to your sincerity. Don’t overdo it. Once the other party has forgiven you, it is time to move on and let it go.”

An “I’m sorry” gift doesn’t necessarily have to cost a lot; it depends on how big the mistake was.

“The act of going the extra mile and sending something out to say you are sincerely sorry can do a lot to repair the trust you have broken,” says Brown. “You are showing your customer that you acknowledge whatever you’ve done to mess up his or her day or to take up his or her time. You understand the value of time and you’re willing to pay for it.”

When you take the time and effort to apologize with a gift, it goes a long way in repairing a situation. You are able to reestablish trust and that person is willing to try again with you. Hopefully you’ve learned your lesson and you won’t make the same mistake again.

Dana Borowka, MA, Partner of Lighthouse Consulting Partners, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business”. They do this through the use of in-depth work style & personality assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. Dana has over 30 years of business consulting experience and is a nationally renowned speaker, radio and TV personality on many topics. He is the co-author of the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”. To order the books, please visit www.lighthouseconsulting.com.

Lighthouse Consulting Partners, LLC Divisions

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, extension 410, [email protected] & our website: www.lighthouseconsulting.com.

How To Develop The Next Generation Of Company Leaders

By David Shaffer, MBA, Sr. Consultant

Finding and keeping great employees is getting increasingly hard. Your company’s ability to fight and win the ongoing talent wars hinges on your most important asset: your leaders.

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According to research in the Harvard Business Review, “Leaders who prioritize relationships with their employees and lead from a place of positivity and kindness simply do better, and company culture has a bigger influence on employee well-being than salary and benefits (“The Power of Healthy Relationships at Work,” June 21, 2022).

When it comes to attracting and retaining better employees, it comes down to leaders fostering positive relationships at work. But positive leader-employee relationships do not happen by chance.

Most managers weren’t born knowing how to create those positive relationships. But your organization should not suffer while your leaders learn by trial and error. In an age when there is an ever-escalating war for the better employees, it has never been more important for a business to invest in developing leaders.

This is why CEOs of privately owned companies in the $5 million to $100 million in revenue range and division heads of global organizations need to make sure to invest in training managers.

In other words, so one day they can confidently turn over the day-to-day management of the company to the next group of leaders. Here is a comeback story of a business owner who did just that.

How Fred Developed New Leaders

This is the tale of a 48-year-old business owner named Fred (not his real name), who created a small manufacturing company with annual revenues north of $5 million. On a personal note, Fred was a spiritual man who enjoyed being an active volunteer at his church.

On the job Fred had faith in his people and believed in them to work issues out. Unfortunately, that led to him being a victim of undeserved misfortune, His people loved working for Fred and knocked themselves out for him; however, as the adage states, haste makes waste.

Fred’s business problem was wasteful rework costs in excess of 35%, which meant that millions of dollars of the products required rework. That’s a tremendous amount of dollars that had to be absorbed by the business on a regular basis.

When Fred invited me in, I did an assessment to determine the root causes of the troubles. On the basis of that review as well as doing the LCS in-depth work style and personality assessment, we identified two solutions that needed to be implemented.

“On top of the rework nightmare, sales are dropping like a stone because all of the sales are being funneled through me, and I am totally consumed by the rework issue,” said Fred. “My sales team has been reduced to being order takers, not order generators. These are good people, and I do not know what to do.”

“We can fix this, Fred,” I told him. “It’s not going to be easy because you have some blind spots. You need to make some changes, but we can tackle the two needed solutions together.”

The first solution was a lean manufacturing process, which included quality control checks throughout the manufacturing process. That way, they could identify potential defects right at the point of the defect rather than at the end when it’s delivered to the customer.

By Mihai Surdu

That may sound like a very simplistic thing to do. However, understand that within the operation, there was a need to develop leaders who understood how to schedule the projects, communicate the goals to their team, and resolve issues with the people.

We conducted workshops for each of the shop supervisors, plus the shop foreman. We also brought in the sales team to talk about effective communication between sales and operations so that we could identify where time was being spent.

The second solution was to turn over the reins to the next generation. Eventually, we removed Fred as the owner from the day-to-day operations and put in place an executive team that included sales management, supervisors, shop foremen, as well as accounting to meet on a daily on what are the issues. We also did our LCS team building program, which includes using our LCS in-depth work style and personality assessment for the staff members. This provided me with insights into how to get the most from the team members as well as with helping them to bond and communicate with each other at a whole new level.

The net result was that the rework was reduced to 5% from 35%, and sales rose by 15% because now sales were not having to deal with the quality issues that were affecting sales. And here’s the kicker, Fred was a happier owner because it allowed him more volunteer time to lead bible study sessions at the church.

Seven Steps To Develop The Next Generation

With Fred, we followed these seven steps:

Step One. Maintain the mission, vision, and values that are a part of the company. The journey begins with an assessment of the DNA of the business.

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Step Two. Recognize the strengths that each person brings to the company. Leadership is not a birthright; it is about potential. So, test your people to assess leadership potential. Conducting in-depth work style and personality assessments can be extremely useful.

Step Three. Understand that leadership is something that is developed. Know this: leaders are not born; leaders are trained. Never has a baby been born, and the doctor slapped his or her bottom and declared, “Now here is a future company president.” Certain positive traits develop during a person’s life, which is a gift. But just relying on gifts and not training future leaders is a bad option for small-to-midsized companies.

Step Four. Dispel the belief that the best performers make the best leaders. Don’t make the classic blunder of just thrusting top performers into leadership roles. That is a 50/50 proposition at best. Once, I was a director of business process improvement and information systems consulting at one of the big accounting firms. The philosophy within the CPA firm was that you took your top-performing senior managers who were outstanding in doing tax returns, and you, therefore, promoted them to partner. Then we came to the realization that they don’t know how to be good at business development, a key requirement of a partner.

Step Five. Allow for creativity yet stay within the values of the company. People are not robots. And nor would you want them to be.

Step Six. Train leaders throughout all levels of management or job responsibilities. If you think training is expensive, then look at the costs of not training. Trained leaders make it easier for the company to fill jobs with the right people, retain top talent, and keep employees fully engaged. Today this is no easy feat, and paying more in wages and benefits is not the answer.

Step Seven. Introduce accountability and taking responsibility. Are you familiar with the “Miracle on Ice” with the US hockey team winning the Olympic gold medal in 1980? The underdog US team beat the Russians and made it to the finals to win it all. But if you really dig into the analysis of what happened, the coaches of that team took a bunch of individuals that were stars at different levels and molded them into a team. They achieved their goal of winning a gold medal by introducing accountability and taking responsibility.

Use A Three-Phase Approach

To optimize success, companies use a three-phase approach:

by Ronald Carreño

Phase One. Company Assessment And Understanding. This starts with meetings with executives and ownership to understand the company’s mission, vision, and values. Then comes outlining a key strategy for transition and personnel development. Follow this with preparing an objective assessment of the current environment, including gaps analysis to reach the desired structure. Next, we need to get everyone on board with the changes, so we prepare a presentation for review with key personnel.

Phase Two. Conduct A Workshop On Leadership And Accountability. Begin by reviewing components of leadership. Next, cover how to create an environment of accountability. Then cover the characteristics of effective communication. This is followed by a discussion of setting and achieving goals by leveraging talent and reaching individual potential. Lead the group to understand how to achieve team effectiveness. Nothing is ever smooth, so cover how to handle and resolve conflict. Finally cover the most effective means of coaching.

Phase Three. Continued Follow-up. This is not a case of setting it and forgetting it. Schedule one-on-one coaching sessions. Conduct group meetings to share experiences. And celebrate milestones that measure achievement.

Summing It Up

In my experience, privately owned companies are looking to put in place the next level of leadership within their company.

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The main goal is to allow the existing ownership to be able to have appropriate leaders developed within the organization that allows for the owner/manager to extricate themselves from the day-to-day business and still be in a position to provide high-level feedback on what’s going on within their company.

If you are open to a conversation about how to develop your next generation of leaders, or how our in-depth work style and personality assessment could help your team, please contact us at 310-453-6556, extension 410 or email us at [email protected] and our website is www.lighthouseconsulting.com.

Lighthouse Consulting Partners, LLC

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Better Hiring With The Eight-Point Success Matrix

By Barry Deutsch

Why do 56% of all executive hires fail in their first year to eighteen months?

Because most companies don’t hire according to a documented process. They use outdated techniques and depend too much on luck when trying to find and hire successful candidates.

Typical hiring evaluations go something like this:

by Brooke Cagle

Bob and Sue meet in the hallway after the interview with Charlie. Bob turns to Sue and says, “So, what did you think of Charlie?”

The hallway conversation of the evaluation of Charlie will most likely be filled with ambiguity, superficial statements, and silly platitudes.

The comments will take the form of “seems like a nice guy, appears to be bright, showed a lot of enthusiasm, asked some good questions, impressed that he showed up on time.”

That is worthless feedback. These are not the insightful, rigorous, probing assessments to determine if the candidate can do the job.

My firm’s trademarked Eight-Point Success Matrix overcomes the traditional method of water cooler comparisons and forces a fierce conversation around whether the candidate can deliver the desired results and do it with a set of behaviors and style consistent with your values and culture.

To eliminate interviewers’ ingrained tendency to focus on superficial criteria and miss substantive evidence, we developed a structured tool to help each interviewer evaluate each candidate objectively, fairly, and comprehensively.

The matrix is the tool we have our clients use to rate fit based on the examples, illustrations, specifics, results, accomplishments, and patterns of behavior that emerge in candidate interviews.

It is quick to use, easy to understand, and focused on the job itself. Perhaps most importantly, it calibrates interviewer ratings, keeping everyone on the same page. Built around the five key predictors of success in our trademarked Success Factor Methodology, the Eight-Point Success Matrix forces interviewers to ask the right questions and probe until they have enough information to complete the form.

What Goes Into The Matrix

Candidates are rated on these eight dimensions.

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1. Work history and education
2. High initiative and self-motivation
3. Flawless execution
4. Leadership of teams
5. Similar success
6. Adaptability
7. Personality and style
8. Culture and team fit

Candidates are rated on a scale of 0 to 3.
0 = Less than required.
1 = Meets requirements.
2 = Exceeds requirements.
3 = Greatly exceeds requirements.

Free Copy Of Eight-Point Success Matrix
For a free sample Eight-Point Success Matrix, please email [email protected] with the subject line Success Matrix.

Accountability To The Interviewing Group Is Vital

When interviewers know they will have to justify the ratings assigned to each candidate to the entire group of interviewers, the whole process is taken more seriously.

Because each member of the interviewing team fills out an Eight-Point Success Matrix form after each interview, by the end of a long interview cycle a candidate’s file may contain 20 or more. The full file allows the person with final hiring power to evaluate a full spectrum of evaluation on all success factors. Skimming the right column helps the hiring executive to rapidly compare the same candidate interview-to-interview, and also to evaluate candidates’ qualifications against each other, on equal footing.

Warning About Use Of The Form

The most important consideration in using the matrix is this: do not, under any circumstances, put off completing the form after each interview. Human memory fades rapidly four to six hours after an event. Once details are gone from short-term memory, they are lost forever.

You absolutely must ensure that your hiring process does not fall victim to procrastination and memory loss (“Er, gee, I think this was the guy with the orange tie who used to work at Enron, yeah? Or was that Exxon? Shoot, I don’t remember.”).

by Gerd Altmann

The hiring team leader must make sure each interviewer sits down immediately after the interview (or by that same day’s end, at the latest) to complete the sections for which they have gathered enough information.

It is almost certain that no interviewer will be able to fill out an entire matrix after just one interview. That’s fine—they should leave blank any sections that require more information, and make notes regarding what questions to ask in the next interview in the comments area.

We highly recommend that somebody on the interviewing team—preferably the hiring manager him- or herself—be charged with distributing and collecting the Eight-Point Success Matrix forms before and after each round of interviews. When people know they’ll be held accountable at the end of the day, they won’t put off what needs to be done.

While there are few rules about using the matrix, there are several tips to keep in mind:

• The form should be explained and discussed fully among the team before interviews.
• Each interviewer should understand the difference between a score of zero, 1, 2, and 3.
• Each interviewer should understand what each of the factors is intended to measure.

A candidate who rates zeros in any category is probably not the best choice for the job.

The sweet spot on the Eight-Point Success Matrix form is a ranking of 2. Not too hot or too cold—just right. Depending on the job, it is possible that a candidate with one or two ratings of 1 might still be up to the job.

Define Success By SOARing

The SOAR method is an alternative to the traditional method of writing up a job description. A job description doesn’t predict or manage performance. Most job descriptions are designed to define minimum education requirements, minimum skills and knowledge, vague behaviors and attitudes, (for example, “Gets along well with others”).

by Eric Bailey, Pexel

The SOAR method, however, is designed to define success. SOAR is an acronym which means:

S—Situation. Describe the situation or problem. What aren’t you getting what you need?
O—Obstacles. Describe the main obstacles your new employee will encounter as they try to deliver the results you want.
A—Action. What action needs to be taken to solve the problem? Each action step should map back to each obstacle.
R—Results. What are the measurable/quantifiable results required? Tell the candidate specifically the result you’re looking for and show how each action step contributes to that result.

Share the key success factors by stating specifically how you want the candidate to contribute. “You’ll help us launch two new products this year,” or “You’ll help us reduce costs by 50%.”

Clearly, this looks very different than your typical job description. Both you and the candidate know exactly what results are required from the position and what actions must be taken to achieve them. More important, because those results are closely aligned with the company’s most important objectives, achieving them means that everybody wins.

Testing Is Also Valuable

Using an in-depth work style and personality assessment is a valuable adjunct to the Eight-Point Success Matrix, which will uncover useful information about personality traits, potential for high achievement, and other factors that might not be immediately evident in an interview situation. Note: please use an assessment that has a minimum of 164 questions. Otherwise, you will have an incomplete picture of the candidate or staff member.

However, there are several cautions about assessment instruments.

Be wary of free online tests. Unless they come from a highly regarded institution, they may not be valid and reliable.

by Pexels

The instrument must be administered and interpreted professionally. An in-depth work style and personality assessment is difficult to interpret for a nonprofessional. HR professionals are generally not qualified to administer psychological or behavioral tests.

Some companies choose to administer an in-depth work style and personality assessment for pre-hire and others after the job is offered and accepted. If a potential personality or communication mismatch is discovered, then all parties can be briefed ahead of time so needless conflicts can be avoided.

Barry Deutsch is a principal with Impact Hiring Solutions. His phone number is 310-378-4751 and his email is [email protected] . He is co-author of the book You’re Not The Person I Hired!

Lighthouse Consulting Services, LLC – Testing Division provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, skills testing, domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication. Business Consulting for Higher Productivity Division provides stress & time management workshops, sales & customer service training and negotiation skills, leadership training, market research, staff planning, operations, ERP/MRP selection and implementation, refining a remote work force, M&A including due diligence – success planning – value creation and much more.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

If you would like additional information on this topic or others, please contact Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

The Secret To Successfully Managing A Hybrid/Remote Workforce

By Patty Crabtree

Let’s look back on some recent history. In August of 2021, 4.3 million workers quit their jobs because they were looking for something better or they did not want to return to working back in the office again. The media dubbed it The Great Resignation and the trend has continued.

By Brooke Cagle

Why the exodus? Because the remote work environment created by the pandemic is a double-edged sword: employers can recruit employees from far, and your employees can seek or be lured away by employers who offer greater flexibility.

The Conference Board released the results of its 2022 survey of CEOs called “Reset and Reimagine: Surviving and Thriving in a Uniquely Challenging Business Environment.” The report contains interesting perspectives about what CEOs think are important business challenges. Topping the list were inflation, Covid-19 disruptions and attracting and retaining top talent in this new hybrid/remote workforce.

Let’s go farther back in time to those disruptive days of March 2020 when the pandemic pushed the work world into a new era. Some companies successfully transformed into a remote work environment almost overnight. But others reasoned this was just going to be a few weeks so they would wait and see. Then it became a few months. Soon reality set in and almost every business had to create a hybrid work environment that embraced remote workers.

Now for many, a remote workforce has become a way of life. There is no going back. Soon we’re going to have three years of this journey in our rear-view mirror. What are the lessons to be learned? Those who are embracing this change will be ahead of the game. But those who are fighting it are going to see challenges with retaining employees and recruiting the best staff for their team.

The Secret Is Manage By Outcome, Not Hours

Before the pandemic, more and more companies were already starting to develop remote work environments and were empowering certain employees to work from home on a regular basis. They saw the benefits and increased performance. Then the pandemic pushed us into fully embracing this flexibility out of a need versus a want. This also moved us into a new understanding of how to create a high-performance work force.

Managing for high performance is hard regardless of thw work location. There is an old business joke about a man who asked a CEO, “How many people work at your company?”

“About half,” replies the CEO.

by Dylan Gillis

The humor illustrated how much unproductive time employees typically spend in an office. The management challenge is to maximize productivity for the hours the employees work. Or is it?

Here is the real question: do you measure hours versus outcomes? If you define the outcomes for a position, do you care, aside from labor laws, when they work and how they work? Granted there are some positions that may not have this level of flexibility, but many jobs do. As long as they’re getting the outcomes accomplished in a timely basis, an employer has the opportunity to leverage the higher productivity a hybrid work force can deliver.

During the pandemic, the work environment evolved and employees experienced the opportunity of a better balance based on more flexibility. The challenge now is to embrace this remote work revolution that had been gaining speed well before the pandemic and was accelerated by the work-from-home mandates.

Naturally, many employers want their employees back in the office. These employers miss the good old days of easier access and camaraderie.

But do you really want to fight progress? One reason so many companies are embracing the hybrid revolution is the advantages of attracting the best talent. There are no longer geographic restrictions on where you can draw the best talent to join your team.

Not Every Company Was This Fortunate

At the end of 2019, one mortgage company decided to eliminate its home office and go 100% virtual. The company already had some remote staff, but it developed a game plan to close down the office to get everybody working from home. The company came up with the systems, purchased the necessary, and created a plan to ensure its culture stayed strong. Events like five-minute mid-morning group stretch breaks leading the team through some simple exercises to keep the body moving. Virtual meetings would start with a quick round robin of how everyone’s week was going before they would jump into the business part of the agenda. The company was creative and did multiple team building exercises like virtual scavenger hunts and escape rooms.

Did it pay off? When the world went into lockdown, its business thrived. By being ahead of the curve, the company was able to outperform its competition. Were they just lucky? As the famous scientist Louis Pasteur said, “Chance favors the prepared mind.”

The Great Opportunity

Managing a hybrid or fully remote workforce takes a different focus. I use the word intentional when describing this management style. A more intentional focus on the nuances of a diverse work environment is critical to continue a healthy, successful workforce. Over time, this intentional focus will become second nature but in the beginning it is an intentional effort.

Wise employers are not hanging on to the comfort zone of the old structure they had pre-pandemic. The path of wisdom is to choose a structure that will stay ahead of the curve.

Were employees really producing to the level they could, or are they producing better in a remote environment away from the distractions of an office? Many studies indicate remote workers actually have a greater productivity than those in the office. There’s less water cooler talk, less hanging out in the hallways, and more focus on getting the work done and moving on to the next action item.

By Jonny Lindner

Many companies have successful track records with remote work. When a company I worked with created a remote work environment back in 2006, we achieved more and more productivity from our remote staff. From reduced distractions to better systems, staff performed higher each year and were happier and more engaged. A win-win for everyone.

Commuting to and from work can be a huge productivity drain and a distraction to one’s day. Think about the staff who were walking into the office frustrated, unwinding with a cup of coffee and venting about the person who cut them off or volume of the day’s traffic. Instead of the driving hassles, remote staff can take a short walk from the kitchen to the home office. They can feel more energized at the start of the day, have a better focus and achieve more success. They also experience a better life-work balance which brings more engagement.

Developing strong systems not only helps monitor productivity but also communicates expectations to staff. Workflow tracking systems ensure that effective assignments are happening and timelines are being met. People know exactly what’s expected of them, and your leaders are able to monitor employee progress helping it along the way.
Higher productivity leads to greater client satisfaction and profitability.

Productivity Tips From Harvard Business Review

Rebecca Knight, writing in the Harvard Business Review on “How to Manage a Hybrid Team,” offered these (excerpted) tips:

Offer support. Your primary role as a manager is to support your employees, including the hybrid/remote one. And do they ever need it. You may have done a lot of this when the pandemic first started but continue to check in, as circumstances have likely changed.

Create and set expectations. Talk with your hybrid/remote team about creating new practices and protocols. Come to an agreement on norms for communicating.

by Jud Mackrill

Prioritize with flexibility in mind. The only certainty is that the future is unpredictable. The best way to prepare is to set clear priorities so that everyone on your team knows what’s most important. Consider holding a regular huddle, where you prioritize the most important work that needs to get done that week.

Emphasize inclusion. Building a fair and equitable workplace is more complicated when you’re running a hybrid team. There’s a proximity bias that leads to the incorrect assumption that the people in the office are more productive than those who are not.

Strive for equity. Another risk in a hybrid environment is that it will exacerbate your biases about particular employees, good and bad.

Watch for signs of burnout. Pay close attention to your team members’ stress levels. Many people are stressed, irritable, and exhausted and that can be a sign of burnout.

Make it fun. It’s also worth thinking about “how to bring some playfulness into the workday.” Many of us miss the laughter and levity from our pre-pandemic lives.

Take heart. Don’t expect any of this hybrid/remote managing to be easy. There will be bumps along the way. Be humble. And be patient.

Other Tools Are Key

Have you also built recognition into your systems so that it’s visible? Empower people to share their successes with others through their day-to-day interactions without an extra effort. It’s there in front of you displayed in the system. Who is leading the charge? Just check the system. It is a great motivator to keep things on track or even ahead of schedule along with celebrating success.

Team building is critical in any type of work environment, and that is especially true with a distributed workforce. So, how do you encourage connection among your groups? One option is to consider is to have an element of team building built into your team meeting agendas. Set aside a few minutes in the beginning to have everybody share what’s going on or their successes for the week, or even something personal such as what is their favorite vacation spot, or what dish do they like to bring to a potluck? Get creative with the team building questions.

Now Is The Time To Hire Differently

There are some other important questions to consider.

Have you included a work-style assessment as part of your hiring process? Do you have a tool to help you understand how someone fits in with the team? Do you have a library of interview questions designed to help understand how somebody will thrive in your hybrid work environment?

By Motihada

Once you find that right candidate, does your onboarding process facilitate connection along with specific job training for a new hire? Are there team building events included in your onboarding process? Have you formalized the onboarding into a schedule of events, meetings, and trainings that guides that new employee through the process and ensures communicates the company’s culture and values along with making those connections that are so critical across the organization?

Here is the bottom line: Developing a successful and lasting remote/hybrid workforce takes some effort. From enhancing your culture to implementing better systems, this intentional focus will bring positive results and keep you as an employer of choice.

Patty Crabtree is a Senior Consultant at Lighthouse Consulting Services with 25 years of operations and finance leadership experience. Her phone number is 310-453-6556, ext. 410 and her email is [email protected].

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

If you are open to a conversation about how our in-depth work style and personality assessment could help your team, including pricing and the science behind the tests, please contact us at 310-453-6556, extension 403.

If you would like additional information on this topic or others, please contact your Human Resources department or Lighthouse Consulting Services LLC, Santa Monica, CA, (310) 453-6556, [email protected] & our website: www.lighthouseconsulting.com.

ERP Help for Companies Drowning in Data But Thirsting for Actionable Insight

By David Shaffer, ERP Practice Head, Lighthouse Consulting Services, LLC

Do you feel it is “sink or swim” with the tidal wave of data that is hitting your business? “Data, data everywhere, and not a drop to help us think” is a common lament.

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But there is a tremendous opportunity you might be missing that competitors are taking advantage of, including interactive dashboards. These highlight key performance indicators – clearly and concisely – so executives can make decisions based on data and reality and not in a vacuum.

These capabilities are powering a next generation change in how the deluge of data can help you make better decisions. Consider these quick examples:

A men’s grooming product maker successfully implemented enterprise resource planning (ERP) to better track inventory and financial data.

A rapidly expanding confectioner used ERP to standardize thousands of chocolate-making processes and restructure an ineffective warehouse management system that could not keep pace.

A manufacturer of chemical products, which are used in electronics, automotive, and housing industries, implemented an ERP system to avoid human errors and to be able to automate workflows for increased productivity.

In each example, ERP was used to harness data.

Today, any business can obtain ROI with effective systems and processes that promote growth strategies.

Companies, regardless of industry, need to recognize the ever-growing need to integrate responsive information with optimal best practices within day-to-day operations. In the past, the selection of appropriate systems has been confined to those who have large budgets, resources, and time to do extensive evaluations and due diligence. That is no longer the case.

ERP Is The Mortar In The Brick Wall

To use a masonry metaphor, an ERP system is like mortar, the cement-like mixture of sand and lime that keep bricks in place. You can think of an ERP system working like the mortar that binds together the different computer systems for a large organization (your bricks). Without an ERP application, each department would have its system optimized for its specific tasks. With ERP software, each department still has its system, but all of the systems can be accessed through one application with one interface. The systems stand together like a strong brick wall.

by jonathan kemper

Please understand that the appropriate evaluation and selection of systems is equally critical and important to the success of the mid-size, growing business. Based on years of evaluation, support, and success, we have developed a proprietary process that brings the same value and benefits of past selection without introducing extensive costs. Our belief is that hard-earned dollars should be directed toward solution implementation and not toward selection.

We recommend a process that incorporates a series of integrated steps that quickly and efficiently highlight the following:

• Scenarios that mirror operations in order to test the viability of proposed solutions

• Accountability for vendors that align implementation of value applications with operational efficiencies

• Selecting software solutions that follow business processes from ordering through fulfillment rather than just specific application areas

Implementation And Project Management

To help position our clients for success, we created an ERP selection process called Quick Start, developed with the expertise of consultants who bring business and system knowledge to the selection process. Our team recognizes the value of your investment and have first-hand understanding of the impact effective systems and processes can have on meeting growth strategies.

by alexanderstein

The Quick Start process encompasses several key interrelated steps that build upon each other and are directed toward the selection and implementation of the Information System that meets your requirements. The process focuses on your unique and key business flows rather than the nice-to-see demonstrations that many vendors focus on during demonstrations.

We recommend the following steps to select an ERP system:

1. Begin The Right Way. Get a qualified consultant who has traveled this road many times. Start with an initial kickoff meeting to set expectations, including an outline of preliminary observations gathered through an interview and site walk-through evaluation process.

2. Make A List; Check It Twice. Based upon the preceding interviews and data gathering, develop and review a list of key requirements for the new system, comprising needs that are distinctive for strategic growth. Create a list of key requirements and key business scenarios. Receive suggestions based upon observations for possible operational efficiencies.

3. Set The Scenarios. Develop key business scenarios as a framework for software demonstrations Unlike most selections that focus exclusively on application capabilities, recognize that businesses rely on the flow of information across departments. Scenarios reflect overall flows from order through fulfillment.

4. Assure Accurate Scenarios. Review the key scenarios with interview participants to assure accuracy.

5. Round Up The Vendor Suspects. Distribute requirements and scenarios to select software vendors. Identify possible solutions based upon experience and software vendor feedback from distribution of requirements. Assure that vendors understand the need to demonstrate the scenarios.

6. Demo That System Please. Participate in vendor demonstrations. Obtain consultant support to help your team in evaluating the potential fit of vendors. Assure that demonstrations are addressing the scenario requirements. Consultant should assist your team to evaluate the best fit.

7. Plan The Implementation. Review the recommended implementation plan. Some negotiation is required at this point.

8. Support Project Management. Have consultant provide interface between your company software implementation team and the vendor. The consultant should support the implementation of best practices.

Final advice

The selection process must put you in control over the software vendor by assuring the proposed solution meets the process scenarios, and the consultant can help maintain that delicate balance of power. A selection process typically can be completed within an eight-to-ten-week window. Utilize consultants that are able to integrate business understanding with the value creation associated with information systems. Make sure the funds are spent on the right things, which translates to software delivery rather than consulting evaluations.

by Campaign Creators

If you are open to a conversation about an ERP system, improving manufacturing workflow, or how our in-depth work style and personality assessment could help your team, including pricing and the science behind the tests, please contact us at 310-453-6556, extension 403.

David Shaffer, who heads up the full-service business consulting ERP practice at Lighthouse Consulting Services LLC, is recognized for his ability to effectively integrate all aspects of the business, including financial management, information systems, infrastructure, and operations. David assists companies from executive strategic planning through operational and business process improvement opportunities to the selection and integration of management information systems solutions. His range of company support includes start-ups through Fortune 500.

In addition to a full-service Business Consulting Division, Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, sales and customer service training, negotiations training, interpersonal communication, stress and time management, and leadership training.

To order the books, Cracking the Personality Code, Cracking the Business Code, and Cracking the High-Performance Team Code, please go to: www.lighthouseconsulting.com.

Preventing Burnout in Today’s Environment

By Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC

Could employee burnout impact your company?

Burnout that causes companies to lose great employees occurs when your workers experience too much stress for a prolonged period. The employee is left feeling mentally, emotionally, and physically exhausted. Not only that, your employees are less productive at work, show reduced concern for others, and are more likely to miss work.

by dasstudios

Burnout is no doubt tied to stress, and workers in the United States are some of the most stressed employees in the world. That’s according to the 2022 Gallup State of the Global Workplace report, which captures how people are feeling about work and their life.

Surprising statistic: U.S. and Canadian workers, whose survey data are combined in Gallup’s research, ranked highest for daily stress levels of all groups surveyed. Some 57% of U.S. and Canadian workers reported feeling stress on a daily basis, up by eight percentage points from the year prior and compared with 43% of people who feel that way globally, according to Gallup’s 2021 report.

Too much stress at work and home leads to burnout, which can be defined as lower psychological and physical wellbeing, as well as dissatisfaction, and employee turnover.

This stress spike isn’t surprising to Jim Harter, Gallup’s chief workplace scientist, who told CNBC that “rates of daily stress, worry, sadness and anger have been trending upward for American workers since 2009. Concerns over the virus, sickness, financial insecurity and racial trauma all contributed to added stress during the pandemic.”

by Pexels

There is also a side effect called “quiet quitting.”

According to the newsletter The Daily Skimm, quiet quitting is “when employees quit going above and beyond what they’re paid to do. The pandemic blurred the lines between home and work — leading to burnout. And many have felt stretched thin by doing more than one person’s job, especially during The Great Resignation. On top of that, employees have become frustrated with the lack of growth opportunities and little pay.”

Quiet quitters are still doing their jobs, but common side effects of quiet quitting include: no more staying late after work, no more attending events like virtual lunches, and no more doing anything beyond the job description.

How To Spot Burnout

“Burnout looks like extreme exhaustion paired with low engagement, high hopelessness, poor motivation and limited efficacy,” says Colorado therapist Carrie Johansson, PhD, author of the book Self Help On The Go.

Helping companies prevent employee burnout is a critical element to employee retention and performance, says Johansson.

“Balancing challenge with breaks, prioritizing values and purpose in work, and encouraging employee autonomy all help keep employees engaged and motivated to perform,” says Johansson. “Employees should be encouraged to use cycles of effort interspersed with rest, to have systematic self-care strategies in place and to connect with fellow employees to stay actively engaged and connected in their work.”

Doug Clute takes a pragmatic view of burnout. Clute is a human capital consultant who provides Lighthouse Consulting Services clients with his insight accumulated in over 30 years as a human capital management executive within four different industries on an international scale.

“Typically, there is a bit of cynicism on the part of the employee when they’re experiencing burnout,” says Clute. “The employee’s mindset is: ‘I’m working so hard, but what difference does it make? Whether I do a good job or not, I don’t see how my role is connected to the bigger whole.’”

Clute says the misalignment piece of the puzzle needs to be addressed.

“Sometimes it’s important for companies to create what I like to call it a buddy system,” says Clute.

Clute says oftentimes new employees get assigned a sponsor for a couple months. They have lunch, touch base, but eventually that relationship dissipates after 90 days. Assigning employees in danger of burnout with a buddy could retain a great employee.

“The buddy must be a friend as well that can hold the employee in check when they’re too invested at work and are turning a blind eye or not paying much attention to their personal life,” says Clute.

The field of neuropsychology offers other clues on how to assist employees struggling with quiet quitting or burnout.

“Combating burnout sometimes means not following common success advice,” says neuropsychologist Steve Swavely, PhD, author of the upcoming book Optimal Team Performance. “For example, ‘Eat your frog first thing’ is an adage about tackling your toughest challenges first thing in the morning. It has some merit, but not if you’re combating burnout. A better approach is to tackle some small challenges early to experience the satisfaction of success. This causes the brain to release a host of neurochemicals that lift your mood, and your capacity to tackle more difficult challenges. Save the frog for lunch.”

What Can Employers Do

“We are working on one engagement right now with an organization where they brought us in to help a junior leader develop their leadership skills and learn how to balance their life,” says Patty Crabtree, a senior consultant with Lighthouse Consulting Services. “This junior leader over commits to everything and says yes to everything. The company brought us in to help that person understand how to put boundaries in place, which is really critical. The senior leadership team wants to grow this individual so that they can step up in their role.“

Without this coaching, it is easy to see how this junior leader with great potential could be lost to burnout.

by Ronald Carreño

“The big lesson here is that as the world moves more and more toward this virtual remote environment, leaders need to be more thoughtful in the way they engage their staff,” says Crabtree.

Here are three actions employers can take:

Hire Better. Improving hiring and talent development through in-depth work style and personality assessment tests is a great start. Take more time scrutinizing candidates who apply for leadership roles, identifying their empathy, emotional intelligence and ability to perform under pressure.

Train Better. Use personality assessments for the basis of team building. Good leaders must learn how to shield employees from unnecessary stress. Sometimes through training we discover we hired the right employee for the wrong job. Understanding preferred work styles goes a long way to improving retention and productivity and decreasing burnout and quiet quitting.

Communicate Better. In-depth work style and personality assessments give managers and employees a common language about how they like to interact. When people use their strengths, they feel more competent and engaged. Staff are less likely to experience high levels of burnout when they decide on how and when they complete their work. Supporting and recognizing good work reduces stress while promoting a sense of belonging.

by Moni Mckein

As the work world shifted from workplace to working from home to now returning to a workplace, everything is not just going back to the way things were. ”That’s not reality,” says Crabtree. “When you make this change in this new environment, you need to really work and be thoughtful in designing that way that environment’s going to work.”

Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC and his organization constantly remain focused on their mission statement – “To bring effective insight to your business.” They do this through the use of in-depth work style & personality assessments to raise the hiring bar so companies select the right people to reduce hiring and management errors. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. Dana has over 30 years of business consulting experience and is a nationally renowned speaker and radio and TV personality on many topics. He is the co-author of the books, Cracking the Personality Code, Cracking the Business Code and Cracking the High-Performance Team Code. To order the books, please visit www.lighthouseconsulting.com.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division.

Correct your Sales Oversight: Where are the GAPS?

By Patrick McClure

CEOs, board members, and sales leadership are often faced with a terrible dilemma: how to accurately evaluate sales performance without having much experience or preparation for the task! Unless they came up through the ranks “carrying a bag”, they wouldn’t have the experience or skills needed to properly diagnose the efficiency and effectiveness of their sales team.

Too many, measuring sales performance is similar to Voodoo or guesswork. What should we look for? How can we benchmark our team against the competition? What factors should we examine? Are we fooling ourselves about our sales performance, just taking everything for granted? How can we evaluate —with accuracy – where we really stand?

Sales Diagnostics

Before a full GAP Analysis is performed, it is useful to perform a quick assessment of your sales organization’s Health. Using a unique and proprietary Sales Performance Diagnostic tool, we can accurately assess how your sales team stacks up against the “best of the best” in three key areas:

1. Sales Leadership
2. Forecast Accuracy
3. Drive for Improvement

The results of this assessment often result in an immediate boost in sales performance because the mystery of why sales are down has been narrowed to specific areas. Which of these critical areas were deficient, and where should management be spending their time correcting, coaching, and improving performance?

Gap Analysis

After the Sales Diagnostic has been performed, you are ready to move into the full GAP Analysis, which will give a more complete and company-wide view into Sales & Marketing.

The GAP is performed to review and analyze the current sales operational processes and performance, determines the process and performance required to achieve a desired level, and develops and recommends alternative solutions to eliminate the gap between the current and desired position. Three aspects of a business need to be considered during a GAP:

1. Current performance environment
2. Desired performance environment
3. Skills and processes required to implement the desired outcome

Gap Analysis Methodology

To establish the baseline data, our team works closely with management and key executives to develop an interview schedule and key questions for all stakeholders and key groups involved in the operation (internal & external). During the data-gathering phase of a Gap Analysis, we focus on the following critical areas:

Gap Analysis of Current & Desired Performance Environment

Business Environment and Needs
Product/Service Offerings
Market position — Strengths & Weaknesses
Core Competencies/Key Values Delivered
Target Markets
Sales Performance & Analysis
The Competitive Environment
Desired level of performance and skills required

Gap Analysis Deliverables

The original survey data is correlated and analyzed, comparison is made with industry benchmarks and competition, and the final report is prepared and delivered. Highlights include:

Develop and Document the Optimum Selling Process
Skills Required for Desired Outcome
Identify the organizational structure required
Recommend appropriate Sales methodology
Sales Performance Measurement
Recommended Program of Training & Coaching

Benefits from a GAP Analysis

There are several benefits companies experience from this valuable service. The most relevant benefits include the following:

An accurate assessment by a sales performance expert with detailed findings and recommendations
All the “sacred cows” become visible
An outsider can ask the difficult questions and avoid the internal politics and posturing
The GAPS are exposed, and it is now possible to write a sales plan that will be effective.
Our methodology highlights Best Practices and we can fairly evaluate where your company meets or exceeds
Corrective actions are now effective, since they are targeting the real problems
An effective training program can be developed to reskill your team and arm them with the latest tools & techniques
Sales processes and procedures can be revamped for maximum effectiveness

When the key recommendations from a GAP are implemented, your sales efficiency and effectiveness will surge, and revenue and profitability will soar……in a very short time!

Patrick McClure is a Master Sales Coach, expert in Selling Across Generations and a Sr. Sales Consultant for Lighthouse Consulting Services: – Over the past 30 years, Patrick has trained salespeople and managers to drive breakthrough sales results using innovative and practical techniques. He has a knack for reducing the most complex problems to utter simplicity and showing his audience exactly how start winning new clients. During his corporate career, Mr. McClure sold over $250 MM worth of products and services at corporate giants such as IBM, Hitachi Data Systems, EDS and Digital Equipment. He is a black-belt master at selling complex business solutions to C-Level executives, and today he will share his secrets with small companies hoping to crack into the Fortune 1000. As the author of 3 books on selling, Patrick passionately and patiently serves up his wisdom to readers, clients, and audiences. He caters to both small and large firms seeking to close more business. You can contact Patrick at [email protected].

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style & personality assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication, stress & time management, sales & customer service training and negotiation skills as well as our full-service Business Consulting Division. To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Should Skills Testing be a Standard Operating Procedure for Hiring?

By Dana Borowka, MA

I’ve noticed an interesting trend that I want to share with you. In the past 12 months we’ve been receiving a lot more questions about pre-employment skills testing. We’ve taken notice. Something has shifted. Companies that had never before considered using skills testing in their hiring process, now ‘suddenly’ had an interest in learning more. Other companies that had used skills testing only sparingly were exploring what additional tests were available.

Yes, something was up alright. As I talked with these companies the reason behind their intensified interest in skills testing became clear.

Elephant in the room by David Blackwell

The Elephant in the Room

Every company I spoke to was having an exceedingly difficult time hiring people that had the right skills for the job, no matter what the job. The elephant in the room during these discussions was that companies were getting burned time and time again. The cost of the hiring mistakes was escalating. Too many candidates who went through the screening and hiring process failed to perform up to expectations once on the job.

Anecdotally, I knew this was a big problem. Employers can’t be 100% certain that a candidate has the right skills based on resume, references, and interviews. Even in-depth work style and personality assessments, like we do for our clients, aren’t designed to verify job skills. I wondered just how big a problem it is. I did some research.

The Department of Labor estimates the cost of a bad hire is equal to at least 30% of first year salary. “Wow”, I said to myself, doing some quick math in my head. Hire a $30,000 bookkeeper that doesn’t have the right bookkeeping skills, and there’s a $9,000 hit to the bottom line. Hire a $50,000 PC administrator without the right technical skills, write off another $15,000.

These numbers got me to think about what contributes to the high costs.

1. Lost time and productivity of the people involved in the hiring process
2. The new employee’s mistakes often have hard costs associated with them – poor service or product quality for example
3. The productivity of the new hire is well-below expectations
4. The possible negative impact on customers and your brand image
5. Training the new hire to achieve a skill-level they should have had in the first place
6. Replacing the employee

As managers we know the hassle and frustration attached to hiring someone without the right skills. What’s more, there are considerable hard and soft costs associated, too, as the list above shows and the Department of Labor statistics prove.

Is Skills Testing the Panacea for Hiring Mistakes?

With a problem this large we at LCS saw an opportunity. We’re now offering a catalog of online skills tests for our clients. But, I’m getting ahead of myself. Let me explore with you how skills testing is best used. I’ll debunk a few myths along the way.

How Skills Testing is Best Used

If you really want to improve the success of your new-hires, incorporate skills testing and personality assessments in the hiring process. Nothing is fool-proof, but believe me, if you do both types of testing together with smart interviewing, your new-hire success rate will go way up. The failure rate (and the costs associated with it) will drop like a rock.

I’ve been a proponent of skills testing for a very long time, IF they are used properly. Skills testing is a tool, like so many others available to managers. Tools can be misused. Tools can be trusted too much.

Here’s the point. Just because a candidate has the right skills for a specific role in your company doesn’t mean you should hire the person. A great skills test score doesn’t mean the person will be a great fit in your company.

The mistake that I’ve seen made by hiring managers is to place too much weight on skills test results. Good resume, good references, interviews went well, aced the skills test – fabulous, make that woman an offer fast!

Not so fast. Is her work style a good match for the role? Is her personality a good fit for the level of responsibility and interaction necessary? Skills testing doesn’t venture into these waters. This is the realm of the in-depth work style and personality assessment.

Skills Testing Only Works if you Know What Skill Level Matters

I can’t emphasize this point enough. If your company hasn’t identified the specific skills required for each position, a test is not going to be all that useful. Let me use a sports analogy.

A track coach has try outs for his sprint team. Five athletes show up wanting to make the team for the 100-meter event. The coach gets out his stop watch. Lines all five at the starting line and fires the starting gun. Bang. Off they run.

The coach looks at his watch as the first racer crosses the finish line several steps ahead of the others. Click. The fastest racer covered the 100 meters in 11.2 seconds. Better than the other four. Does the coach offer the racer a position on the team? He will if he doesn’t know what speed is necessary for his 100-meter squad to compete effectively. Sure, he’ll have a racer for the 100 meter event, but the team will never win. He won’t offer the position to any of the five candidates if he knows that a pace of at least 10.1 seconds is necessary to win in his conference. In this case the required skill is running the 100 meters in 10.1 seconds or less.

The Never-Ending Search for the Perfect Candidate

LCS is deeply involved in the active hiring processes of hundreds of clients. I make this claim just to point out that few companies are better positioned to observe and assess the hiring practices of so many companies. What we’ve noticed is companies tend to fall into two categories. Those that take too long to find and hire employees. And those who have found a way to hire more quickly and retain those employees. What is the difference?

There are many facets to this. Most are beyond the scope of this article, but one is very relevant. The companies who are the most successful realize that the perfect candidate doesn’t exist. They know it’s fool-hardy to spend valuable time and resources searching for the perfect person.

They identify the best person available and which areas will need to be developed in that person once hired. This change in strategy presents an integrated view of hiring and training. So, where does skills testing enter the picture?

Let’s go back to the race track. The coach has one athlete who ran the 100 meters in 11.2 seconds, a full second slower than a competitive pace. If the coach knows that a short period of training and conditioning can shave a second off the time, he’ll gladly bring the person onto the team. A diamond in the rough, so-to-speak.

Same philosophy holds with enlightened companies who use skills testing wisely. If you have a fabulous candidate who is missing a few skills that can be learned quickly, hire the person and build the training into the 90-day probationary period.

The skills test results tell you exactly what skills need to be learned. The training can focus on those areas.

This also makes it a lot easier and more effective when it comes time to buy the training, or arrange the mentoring in-house. You know exactly the skills to be gained.

LCS to the Rescue

After doing our research and talking with more clients about skills testing, we’re convinced this is a service we should be offering.
The catalog we’re offering has been hand-selected from tests Fortune 500 companies rely on in their hiring. These are time-proven, industry-accepted tests in the following categories:

• Accounting
• IT
• Office Software
• Language
• Industrial
• Customer Service
• Sales
• Math
• Honesty

I invite you to visit the Skills Testing page on our website that includes more information, including brief descriptions of the tests we’re offering.

Lighthouse Consulting Services, LLC provides a variety of services, including in-depth work style assessments for new hires & staff development. LCS can test in 19 different languages, provide domestic and international interpersonal coaching and offer a variety of workshops – team building, interpersonal communication and stress management.

To order the books, “Cracking the Personality Code”, “Cracking the Business Code” and “Cracking the High-Performance Team Code”, please go to www.lighthouseconsulting.com.

Our Sino-Am Leadership Program helps executives excel when stationed outside their home country. American managers in Asia and Asian managers in America face considerable business, personal, and leadership challenges because of the cultural differences. This unique program provides personal, one-on-one coaching. For more information visit, https://lighthouseconsulting.com/performance-management/talent-development/sino-american-management-style/.

We also have an affiliate in the UK who covers all of Europe so we are now a true multi-national company that can support our clients globally.

By Patty Crabtree

By David Shaffer, MBA, Sr. Consultant

By Dana Borowka

Nobody’s Perfect

Onboarding Customers is Job One

We’re Sorry, So Sorry

By David Shaffer, MBA, Sr. Consultant

How Fred Developed New Leaders

Seven Steps To Develop The Next Generation

Use A Three-Phase Approach

Summing It Up

By Barry Deutsch

What Goes Into The Matrix

Accountability To The Interviewing Group Is Vital

Warning About Use Of The Form

Define Success By SOARing

Testing Is Also Valuable

By Patty Crabtree

The Secret Is Manage By Outcome, Not Hours

Not Every Company Was This Fortunate

The Great Opportunity

Productivity Tips From Harvard Business Review

Other Tools Are Key

Now Is The Time To Hire Differently

By David Shaffer, ERP Practice Head, Lighthouse Consulting Services, LLC

ERP Is The Mortar In The Brick Wall

Implementation And Project Management

Final advice

By Dana Borowka, MA, CEO of Lighthouse Consulting Services, LLC

How To Spot Burnout

What Can Employers Do

By Patrick McClure

Sales Diagnostics

Gap Analysis

Gap Analysis Methodology

Gap Analysis of Current & Desired Performance Environment

Gap Analysis Deliverables

Benefits from a GAP Analysis

By Dana Borowka, MA

The Elephant in the Room

Is Skills Testing the Panacea for Hiring Mistakes?

How Skills Testing is Best Used

Skills Testing Only Works if you Know What Skill Level Matters

The Never-Ending Search for the Perfect Candidate

LCS to the Rescue

In-Depth Work Style Personality Testing

Talent Development

Lighthouse Consulting Partners, LLC

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