Being in any sort of business, or in reality being in life, we all face problems every day. In fact, I feel the mark of a business is how it solves problems, both for itself and it's customers. If you don't spend enough resources on problem solving, your problems will bury you. If you spend too much of your resources on problems, you don't have enough for your core business.
Let's define a problem. It is an event in your glass business that will cause you to expend unplanned or unbudgeted resources, which are money, your time and your co-workers time. A broken piece of glass in your rack is an inconvenience, it becomes a problem if you cannot complete a scheduled installation. The biggest controllable cost in problem resolution is stress. When you or any of your employees are stressed, dollars start flying out the window. A calm and controlled approach to the solution will always save money. Yes, sometimes it feels good to yell, but that will solve absolutely nothing. No problem is ever solved during the yelling phase.
Let's take a look at problem solving. First step, define what is a problem for your business. Is a broken piece of glass a problem? NO, if it is an annealed piece of float; YES, if it is a tempered, hi-performance insulating unit. The definition of a problem will be different in every different business, based on the company and the people in it. Through your experience you should have a handle on what is a problem within your scope of work. Teach your new people how to solve problems. Learn from those around you how they solve problems.
When a problem jumps out at you the first step is deciding on the severity of the problem. Do you tackle it right now? Tonight? In the morning when you are fresh? This decision is based on the time related consequences of the problem. Will it cost twice as much to solve tomorrow? You have a crew at the job site with a problem. Will it be cheaper to solve this problem on overtime or send a fresh crew tomorrow? What are the consequences of finishing tomorrow? Are there brownie points for finishing on time? Penalties for not?
I like to look at the high-low cost range of problem solving. The O/T, the work that is already scheduled for tomorrow, maybe a premium cost from a fabricator, a potential time penalty, if scaffolding is scheduled to come down, etc. An old pro may do this in his head, but us young whippersnappers should write out the costs for quick or slow resolution. This is one piece of the puzzle.
Should costs be the only factor in deciding to solve a problem? No, but they sure are a part of the equation. There are times though where you weigh other factors. Your customer pays his bills in 120 days...you are not going to go out of your way as readily as for the customer that pays on time. You established a finish date, but one last mirror in a bathroom does not prevent a building from opening. All the facts have to be weighed to make the go-now, go-later, or don't go at all decision. Always, ALWAYS, consider the law of unintended consequences. Pulling a crew from job A to fix job B will cause job A to be late...the snowball effect. If you rush to replace a broken unit, will the low-e match? Will the spacer be the same? If you send an inexperienced crew on a special call, will they do more harm than good?
When you have estimated the cost in dollars, the cost in time, and factor in the business decision, now decide if it is a problem to solve or not. If a customer is being unrealistic, but it will take 15 minutes and no cost, the decision point is based on if they are a good current customer. When in doubt, customer service is always better than not.
Once you decide to solve a customer problem, don't do it with a sour puss face. Don't tell the customer they are wrong, but for the sake of customer service you will fix the problem. They'll take the free fix and go somewhere
where the vendor doesn't call them a liar.
There is a lot more to discuss on problem solving, especially creative problem solving...and we will go there next week...to get the creative juices going I am posting a short contest on the US Glass Forum. This fill-in-the-blanks sheet makes you realize that the most common answers are right in front of you.
More on problem solving next week, so have fun in our contest now!
Sunday, April 29, 2007
Tuesday, April 24, 2007
The Fortune Cookie Column
The other night Elaine and I had take-out Chinese food. The fortune cookie was typical, “Be Sure To Use Low-E Glass In All Of Your Installations”.
Gotcha. It didn’t really say that, but right now I hope you’re smiling. It really said, “May Your Life Be Prosperous”; I started to throw away that little slip of paper with the trite saying and the lucky lottery numbers when I started thinking about it.
My life is prosperous, specifically in the important column of a wonderful life with healthy and somewhat respectful kids, relative good health and a job I truly love. While I don’t think this was the intent of the cookie, it’s nice to have this come first.
I took this little cookie slip to be referring to financial success and it got me to thinking what does it take to be a prosperous glass business. In my career I have had contact with thousands of glass business owners, primarily in the Northeast. I came up with the following definition of financial and emotional prosperity and the ways to get there.
So, what is the definition of prosperity?
1. Someone who smiles more often than not, both in person and on the phone.
2. Someone who does work through problems, professionally, without screaming.
3. Someone who pays their bills on time, without needing a phone call or workouts.
How did these prosperous people get this point? Here are the characteristics that crossed my mind.
1. Work Ethic
Work as if no one owed you a living. Work hard, expect to be recognized for your hard work, and work hard even if your not.
Set an example for your employees by working hard. Don’t tell them to work hard as you leave for the golf course or your boat. Expect your employees to work hard and then recognize them when they do. Reward their hard work as they are making you money. The ones who don’t get rewarded will soon get the hint. Replace the ones who don’t get the hint.
Work hard for your customers. Give them ‘mother-in-law’ quality, (you know, you go out of your way to do a good job so she won’t nag you) on each job to each customer.
If you are an employee do what the boss requests. With a smile. If you think you have a better way, do it the boss’ way first, and then suggest a better way. Show the boss you follow direction, but that you also think about improvement.
If your boss doesn’t get this, find a new one.
2. Quality of work
Care about giving good quality in the area that you can control the best, the installation. Be neat, be on time, and leave your job site better than the condition you found it in. Of course, do the job well.
Sell the best product you can. If you have a choice of two vendors for something, always use the one with the better quality product. This may cost a few dollars more, but will pay dividends in less call-backs, easier installations and happier customers.
Follow up every job with a phone call or site visit to confirm your customer's satisfaction. If something is still needed, do it. When it an add-on, discuss pricing with the customer. If they feel that is was part of the original job, go over the sale in your head and think through where you and the customer disagree, and change that part of your work order or sales pitch on all future jobs. You'll find yourself soon getting paid for every add-on. In the beginning you will eat some add-ons, but you will earn dividends by getting paid for all of your add-ons in the future.
Follow up again. In a month. Call to see if there is anything else they need done. Do they have a friend who needs a job done? May you use them as a reference?
These steps will bring in repeat business on a steady basis.
3. Be fair in business and expect to be treated fairly in business.
Be fair to your customers. Explain the work you will do, the cost, the things that may go wrong, possible additional costs and the expected result of your work. Do the work that is expected. Expect to get paid within the terms you provide. If you get a deposit, don't start the job without it. Don't compromise your own standards for the potential big job. There can be an occasional home-run in our business, but more often we are hitting singles and doubles.
Be fair to your employees. Pay their wages correctly, offer the best benefit package you can to help you recruit and retain the best people. When you treat your employees fairly, expect that they will do the same to you. It doesn't hurt to explain that to them. And if the fairness is not returned, by your definition, then replace the employee. When it is, value the employee as treasured jewel.
Be fair to yourself. Pay yourself a good living wage but don't be extravagant in your business. If you happen to own a sports car or a boat, don't store it at your business. Drive your truck to work. Don't put a lot of no-show family on the payroll. The few cents you save in one area are eaten up by productive people discussing the boss' habits. (You can bet on this!) If you want to live an extravagant life style, don't do it in front of the working people in your shop. If you are the working people, look for a company that believes in reinvesting profits in the company. Just as you get interviewed for a job, you can interview the company and see if it is a fit for your goals.
(I worked for a gentleman who could have afforded hundreds of times over to live a high life style. By the very fact he didn't, people worked harder because they saw the profits being pumped back into the business. This is by far the most important part of this blog.)
4. The prosperous business person continues to learn everyday.
Learn leads to earn. Sounds corny, but it is true. Every time you come across a new product, learn from it. Ask questions of vendors and specifiers. Why do they want to work with this product? Why is it better? How will it help you with your customers? How will help you to make money? How will it be easier or better for your employees to work with?
The best place to learn about new products is the advertising pages of trade magazines. (Even though I am sponsored by Deb Levy and US Glass Magazine, this is not a plug...it is true) When a manufacturer creates a new product that they want to sell, an advertising budget is created. Read the ads, study web pages, quiz salespeople that stop in your shop.
Encourage your employees to learn. Don't be afraid that they might learn too much and go on their own. It will happen no matter what. Keep them educated, give them product literature, the magazines and access to a computer. Have them attend a regional trade show with you, and watch their eyes open up like a kid at Disneyland. That is the person you want to keep on your team. A knowledgeable work force is your best friend.
5. The willingness to invest in a business to get a return from the business leads to prosperity.
Invest your time, for as long as your time is there. Work full days, none of this half-day stuff. Don't play golf every Tuesday. That's when the productivity goes down.
Invest the company's money back in the company. It is better to invest in your self than invest in the stock market. You have more control over the investment.
Invest in your employees. You want them to invest their time in the success of your shop. Share some of the profits through special benefit programs like college expense sharing or special needs insurances. This will keep the better employees with you.
6. Lastly, realize that we are all in service businesses.
We make, install or repair a product that is always needed yesterday. We are a 7 day a week world, 24 hours a day. If you offer overnight service, charge what it is worth, but don't complain about it. Tell the customer you are glad to come out at three in the morning. Get paid for it, but with a smile on your face.
90% of people who go into or call a glass shop need something quickly, respond in kind. A customer is never an interruption of your business.
Ok, these are the features that I thought of when thinking about a prosperous glass shop. Nowhere here does it say making money makes your prosperous. The point is, if you do these things, I promise you will make money in our wonderful industry.
Gotcha. It didn’t really say that, but right now I hope you’re smiling. It really said, “May Your Life Be Prosperous”; I started to throw away that little slip of paper with the trite saying and the lucky lottery numbers when I started thinking about it.
My life is prosperous, specifically in the important column of a wonderful life with healthy and somewhat respectful kids, relative good health and a job I truly love. While I don’t think this was the intent of the cookie, it’s nice to have this come first.
I took this little cookie slip to be referring to financial success and it got me to thinking what does it take to be a prosperous glass business. In my career I have had contact with thousands of glass business owners, primarily in the Northeast. I came up with the following definition of financial and emotional prosperity and the ways to get there.
So, what is the definition of prosperity?
1. Someone who smiles more often than not, both in person and on the phone.
2. Someone who does work through problems, professionally, without screaming.
3. Someone who pays their bills on time, without needing a phone call or workouts.
How did these prosperous people get this point? Here are the characteristics that crossed my mind.
1. Work Ethic
Work as if no one owed you a living. Work hard, expect to be recognized for your hard work, and work hard even if your not.
Set an example for your employees by working hard. Don’t tell them to work hard as you leave for the golf course or your boat. Expect your employees to work hard and then recognize them when they do. Reward their hard work as they are making you money. The ones who don’t get rewarded will soon get the hint. Replace the ones who don’t get the hint.
Work hard for your customers. Give them ‘mother-in-law’ quality, (you know, you go out of your way to do a good job so she won’t nag you) on each job to each customer.
If you are an employee do what the boss requests. With a smile. If you think you have a better way, do it the boss’ way first, and then suggest a better way. Show the boss you follow direction, but that you also think about improvement.
If your boss doesn’t get this, find a new one.
2. Quality of work
Care about giving good quality in the area that you can control the best, the installation. Be neat, be on time, and leave your job site better than the condition you found it in. Of course, do the job well.
Sell the best product you can. If you have a choice of two vendors for something, always use the one with the better quality product. This may cost a few dollars more, but will pay dividends in less call-backs, easier installations and happier customers.
Follow up every job with a phone call or site visit to confirm your customer's satisfaction. If something is still needed, do it. When it an add-on, discuss pricing with the customer. If they feel that is was part of the original job, go over the sale in your head and think through where you and the customer disagree, and change that part of your work order or sales pitch on all future jobs. You'll find yourself soon getting paid for every add-on. In the beginning you will eat some add-ons, but you will earn dividends by getting paid for all of your add-ons in the future.
Follow up again. In a month. Call to see if there is anything else they need done. Do they have a friend who needs a job done? May you use them as a reference?
These steps will bring in repeat business on a steady basis.
3. Be fair in business and expect to be treated fairly in business.
Be fair to your customers. Explain the work you will do, the cost, the things that may go wrong, possible additional costs and the expected result of your work. Do the work that is expected. Expect to get paid within the terms you provide. If you get a deposit, don't start the job without it. Don't compromise your own standards for the potential big job. There can be an occasional home-run in our business, but more often we are hitting singles and doubles.
Be fair to your employees. Pay their wages correctly, offer the best benefit package you can to help you recruit and retain the best people. When you treat your employees fairly, expect that they will do the same to you. It doesn't hurt to explain that to them. And if the fairness is not returned, by your definition, then replace the employee. When it is, value the employee as treasured jewel.
Be fair to yourself. Pay yourself a good living wage but don't be extravagant in your business. If you happen to own a sports car or a boat, don't store it at your business. Drive your truck to work. Don't put a lot of no-show family on the payroll. The few cents you save in one area are eaten up by productive people discussing the boss' habits. (You can bet on this!) If you want to live an extravagant life style, don't do it in front of the working people in your shop. If you are the working people, look for a company that believes in reinvesting profits in the company. Just as you get interviewed for a job, you can interview the company and see if it is a fit for your goals.
(I worked for a gentleman who could have afforded hundreds of times over to live a high life style. By the very fact he didn't, people worked harder because they saw the profits being pumped back into the business. This is by far the most important part of this blog.)
4. The prosperous business person continues to learn everyday.
Learn leads to earn. Sounds corny, but it is true. Every time you come across a new product, learn from it. Ask questions of vendors and specifiers. Why do they want to work with this product? Why is it better? How will it help you with your customers? How will help you to make money? How will it be easier or better for your employees to work with?
The best place to learn about new products is the advertising pages of trade magazines. (Even though I am sponsored by Deb Levy and US Glass Magazine, this is not a plug...it is true) When a manufacturer creates a new product that they want to sell, an advertising budget is created. Read the ads, study web pages, quiz salespeople that stop in your shop.
Encourage your employees to learn. Don't be afraid that they might learn too much and go on their own. It will happen no matter what. Keep them educated, give them product literature, the magazines and access to a computer. Have them attend a regional trade show with you, and watch their eyes open up like a kid at Disneyland. That is the person you want to keep on your team. A knowledgeable work force is your best friend.
5. The willingness to invest in a business to get a return from the business leads to prosperity.
Invest your time, for as long as your time is there. Work full days, none of this half-day stuff. Don't play golf every Tuesday. That's when the productivity goes down.
Invest the company's money back in the company. It is better to invest in your self than invest in the stock market. You have more control over the investment.
Invest in your employees. You want them to invest their time in the success of your shop. Share some of the profits through special benefit programs like college expense sharing or special needs insurances. This will keep the better employees with you.
6. Lastly, realize that we are all in service businesses.
We make, install or repair a product that is always needed yesterday. We are a 7 day a week world, 24 hours a day. If you offer overnight service, charge what it is worth, but don't complain about it. Tell the customer you are glad to come out at three in the morning. Get paid for it, but with a smile on your face.
90% of people who go into or call a glass shop need something quickly, respond in kind. A customer is never an interruption of your business.
Ok, these are the features that I thought of when thinking about a prosperous glass shop. Nowhere here does it say making money makes your prosperous. The point is, if you do these things, I promise you will make money in our wonderful industry.
Tuesday, April 17, 2007
Why Do Hot Dogs Eaten At A Ballpark Have No Calories?
Last week I mentioned that this week's blog would be why hot dogs eaten at a ballpark have no calories. The following entry really doesn't relate to glass, but is just meant to bring a smile to your face during a busy work day. On the Glass Forum pages there is a serious question about a personnel matter; go there to keep your business face on. Without further words, why does a hot dog eaten at the ball park have no calories?
It all started with Warren G. Harding, 29th President of the United States, 1921-1923. It has been said that he was a do-nothing President, but that’s not true. The Teapot Dome scandal, mixing oil and Presidential politics sent many of Harding’s cronies to jail and this thing with the hot dogs was accomplished.
Harding started out with a bang! He was the first President to ride to his inauguration in a motor vehicle and the first President to speak on the radio. After these two amazing accomplishments, in his first week of office, he went downhill. His party found out he was involved in an extra-marital affair and successfully sent his girlfriend out of the country with a large amount of cash. It’s nice to see that times have changed.
So, Harding needed something to pick up his approval rating and the ad agency boys decided that Harding should get involved with baseball, the all-American game. Harding was a klutz; he couldn't even throw out a first pitch. At best he could sit in the owner’s box and eat.
This is where he got the idea…if he could find a way to make hot dogs calorie-free, the American public would love him. He called his scientific advisers but they knew of no way to make hot dogs with no calories. Harding knew that wafers eaten at communion had no calories, so he wrote a letter to Pope Benedict XV, asking to name hot dogs a religious food, thus they would have no calories. His plan was just plain stupid, but no one would tell him.
History has a way of rewarding the fool. Pope Benedict received Harding’s letter while he was ill. He knew a letter from the President is important, so he asked an aide to send Harding a copy of the rules to make something a religious food. A week later the Pope passed away.
The post office was not very efficient. The Pope’s letter to Harding arrived three months after the Pope’s death, so Harding took this as a message from the spiritual world. The steps written in the letter were ones that Harding could secretly follow, becoming the hero.
First he needed proof the sacred food could have no calories. Harding went to the 1923 opening day game carefully weighing himself before leaving the White house, ate two hot dogs, and carefully weighed himself on getting home. He had gained no weight. His miracle worked. All he had to do was prepare the documentation and he would have the new Pope declare hot dogs a religious food.
Just before leaving on a campaign trip to Seattle, Harding secretly asked his secretary, Clara Bell, to fill out the Vatican’s forms. Clara did and put them in an envelope holding them for when the President came home. Unfortunately, on this trip, Mr. Harding died. Clara Bell was grief stricken and immediately took to her bed, where she remained for three months. The new President, Calvin Coolidge, cleaned out Harding’s office, as did Coolidge’s secretary, Elaine Hastings. Elaine saw the letter, all ready to go, put a stamp on it and off it went to the Vatican.
The new Pope received the letter a month later, read it, and sent it to the archives as a prank.
Harding died believing his proof of hot dogs having no calories at a ball park was correct. He had left a letter to his son, detailing the process and how it would make Harding the greatest American President.
So, if you believe in Warren Gamaliel Harding, you now have the ability to have calorie-free hot dogs at the ball park. This is all you have to do. Order two dogs with mustard and sauerkraut; before your first bite, say “Warren G. Harding is the best President in the history of the United States”, and your hot dogs will be calorie free.
I swear that the above story is completely true, as I have eaten many hot dogs at many ballparks and have not gained any weight.
It all started with Warren G. Harding, 29th President of the United States, 1921-1923. It has been said that he was a do-nothing President, but that’s not true. The Teapot Dome scandal, mixing oil and Presidential politics sent many of Harding’s cronies to jail and this thing with the hot dogs was accomplished.
Harding started out with a bang! He was the first President to ride to his inauguration in a motor vehicle and the first President to speak on the radio. After these two amazing accomplishments, in his first week of office, he went downhill. His party found out he was involved in an extra-marital affair and successfully sent his girlfriend out of the country with a large amount of cash. It’s nice to see that times have changed.
So, Harding needed something to pick up his approval rating and the ad agency boys decided that Harding should get involved with baseball, the all-American game. Harding was a klutz; he couldn't even throw out a first pitch. At best he could sit in the owner’s box and eat.
This is where he got the idea…if he could find a way to make hot dogs calorie-free, the American public would love him. He called his scientific advisers but they knew of no way to make hot dogs with no calories. Harding knew that wafers eaten at communion had no calories, so he wrote a letter to Pope Benedict XV, asking to name hot dogs a religious food, thus they would have no calories. His plan was just plain stupid, but no one would tell him.
History has a way of rewarding the fool. Pope Benedict received Harding’s letter while he was ill. He knew a letter from the President is important, so he asked an aide to send Harding a copy of the rules to make something a religious food. A week later the Pope passed away.
The post office was not very efficient. The Pope’s letter to Harding arrived three months after the Pope’s death, so Harding took this as a message from the spiritual world. The steps written in the letter were ones that Harding could secretly follow, becoming the hero.
First he needed proof the sacred food could have no calories. Harding went to the 1923 opening day game carefully weighing himself before leaving the White house, ate two hot dogs, and carefully weighed himself on getting home. He had gained no weight. His miracle worked. All he had to do was prepare the documentation and he would have the new Pope declare hot dogs a religious food.
Just before leaving on a campaign trip to Seattle, Harding secretly asked his secretary, Clara Bell, to fill out the Vatican’s forms. Clara did and put them in an envelope holding them for when the President came home. Unfortunately, on this trip, Mr. Harding died. Clara Bell was grief stricken and immediately took to her bed, where she remained for three months. The new President, Calvin Coolidge, cleaned out Harding’s office, as did Coolidge’s secretary, Elaine Hastings. Elaine saw the letter, all ready to go, put a stamp on it and off it went to the Vatican.
The new Pope received the letter a month later, read it, and sent it to the archives as a prank.
Harding died believing his proof of hot dogs having no calories at a ball park was correct. He had left a letter to his son, detailing the process and how it would make Harding the greatest American President.
So, if you believe in Warren Gamaliel Harding, you now have the ability to have calorie-free hot dogs at the ball park. This is all you have to do. Order two dogs with mustard and sauerkraut; before your first bite, say “Warren G. Harding is the best President in the history of the United States”, and your hot dogs will be calorie free.
I swear that the above story is completely true, as I have eaten many hot dogs at many ballparks and have not gained any weight.
Tuesday, April 10, 2007
A New Birth in the Glass Industry
The most obvious sign of spring is hearing "Play Ball". I was going to give my predictions this week, but some interesting news came my way and it's worth a few words.
In addition to baseball, spring is considered the season of rebirth. More species of animals give birth in the spring than any other season. Flowers blossom, trees sprout their new leaves and construction crews start digging.
And businesses get started. I received a knock-my-socks off phone call yesterday from an old friend, Larry Tumminia. Larry was the AFG sales rep covering the Mid-Atlantic region for at least a couple of hundred years. That may be a bit of stretching on my part, but I've known Larry for twenty years and no one represented their company better than Larry. That's why what he told me was all the more surprising. Larry had retired from AFG and along with his friend, Tom Zaccone, who also had run AFG's laminating plant in Pennsylvania, are starting a new laminating company.
During the last couple of years I have heard a lot of talk about the decreasing competitive status of our industry, fewer sources to buy from, and lock-step pricing and surcharges. I called Larry and Tom back and discussed some of their business plan. Phrases like 'full range of laminated products', and 'blast resistant' were tumbling out of their mouths, but what caught my interest was how they were stressing their independence from any one source and their desire to sell to the trade are among their primary goals. That is full speed ahead into change. Most laminating lines today are controlled by parent companies who, as the right of ownership does exist, favor their own product lines and in-house usage. All of the growth we read about in US Glass has been about the industry heavyweights expanding.
This is why I feel that Northeast Laminated Glass Corp will be such a breath of fresh air for the glass business. I have no doubt that these two guys will succeed. Their experience, the cooperation they received from the economic development programs from Pennsylvania, and a work force that is well trained and actually wants to work rather than collect government benefits all point in one direction. And they will open a door for the glass shops and distributors to buy where they don't have to support their competition.
This blog is not intended to be a plug for Tom and Larry, but it is an observation on the state of our industry. Solutia and DuPont have worked tirelessly as industry sources in setting standards for hurricane protection and ever increasing needs for blast and ballistic lami. Of course, they sell more vinyl, but they are pulling an entire industry up with their future thinking. Solutia has a great new web page, (saflex.com) which in addition to showcasing their products lists their fabrication partners in the US. Out of a total of just 40 laminating sites, 26 of them belong to parent companies. This is 65% of the industry concentrated in a handful of companies. The lami business has a high financial cost of entry, needs a lot of space, and tons of technical knowledge. Tom and Larry are betting their futures that an independent company is just what our industry needs.
So, back to what's really important...next week I will present the scientific proof that hot dogs eaten at a ball park contain no calories.
In addition to baseball, spring is considered the season of rebirth. More species of animals give birth in the spring than any other season. Flowers blossom, trees sprout their new leaves and construction crews start digging.
And businesses get started. I received a knock-my-socks off phone call yesterday from an old friend, Larry Tumminia. Larry was the AFG sales rep covering the Mid-Atlantic region for at least a couple of hundred years. That may be a bit of stretching on my part, but I've known Larry for twenty years and no one represented their company better than Larry. That's why what he told me was all the more surprising. Larry had retired from AFG and along with his friend, Tom Zaccone, who also had run AFG's laminating plant in Pennsylvania, are starting a new laminating company.
During the last couple of years I have heard a lot of talk about the decreasing competitive status of our industry, fewer sources to buy from, and lock-step pricing and surcharges. I called Larry and Tom back and discussed some of their business plan. Phrases like 'full range of laminated products', and 'blast resistant' were tumbling out of their mouths, but what caught my interest was how they were stressing their independence from any one source and their desire to sell to the trade are among their primary goals. That is full speed ahead into change. Most laminating lines today are controlled by parent companies who, as the right of ownership does exist, favor their own product lines and in-house usage. All of the growth we read about in US Glass has been about the industry heavyweights expanding.
This is why I feel that Northeast Laminated Glass Corp will be such a breath of fresh air for the glass business. I have no doubt that these two guys will succeed. Their experience, the cooperation they received from the economic development programs from Pennsylvania, and a work force that is well trained and actually wants to work rather than collect government benefits all point in one direction. And they will open a door for the glass shops and distributors to buy where they don't have to support their competition.
This blog is not intended to be a plug for Tom and Larry, but it is an observation on the state of our industry. Solutia and DuPont have worked tirelessly as industry sources in setting standards for hurricane protection and ever increasing needs for blast and ballistic lami. Of course, they sell more vinyl, but they are pulling an entire industry up with their future thinking. Solutia has a great new web page, (saflex.com) which in addition to showcasing their products lists their fabrication partners in the US. Out of a total of just 40 laminating sites, 26 of them belong to parent companies. This is 65% of the industry concentrated in a handful of companies. The lami business has a high financial cost of entry, needs a lot of space, and tons of technical knowledge. Tom and Larry are betting their futures that an independent company is just what our industry needs.
So, back to what's really important...next week I will present the scientific proof that hot dogs eaten at a ball park contain no calories.
Monday, April 2, 2007
The Financial Employee Review
The employee review should be considered to have three parts. The first part, quantifying the employee's successes and areas needing improvement;and the second part, designing goals that will motivate an employee should be done in one meeting. This first meeting should follow a specific company-wide program, either at a fixed date, such as all employee reviews are conducted in February, or preferably on or about the employment anniversary. The third part, the financial review should be about thirty days prior to the anticipated annual wage change. If your wage change is scattered though out the year based on employee hire dates, then hold the first two sections review six months before the wage change date, and the financial review two weeks to a month before the actual wage change.
Why have these two meetings separated? In doing them together, the employee will only hear the wage rate, ignoring the constructive help that is offered during the review. If the raise is higher then expected, as all of, the employee will be thinking how to spend the windfall; if less than expected, we're planning who to appeal to, to get what we feel we deserve. Either way, the teaching part of the review is lost.
On the other hand, when properly spaced, you hit home-runs. Let's say, in the goal setting portion you wanted an employee to arrive on-time every day for the next ninety days. They do, and now at the financial review you comment on that improvement in performance and give a small raise. By reinforcing the reward concept, you can set another goal of performance improvement that can be rewarded at the next review. People absolutely respond to this type of goal setting and reward. If the behavior you are trying to improve is so bad, maybe the reward is just keeping the job. But you still want to phrase the review as a goal that has been reached and a reward given, even if it is only continued employment and the opportunity to grow.
A question from the right side of the blog, "What if the employee doesn't come in on time during the ninety day period?" In the goal setting session three months ago you set out the alternatives, come in on time and continue your job, or don't come in on time and you may loose your job. If you don't reward or don't punish your effectiveness as a manger is shot.
The financial review should be dependant on three broad themes:
How is regional economy going?
If the annual inflation rate of your region is 2%, you'll probably look to have an average raises of 2%. This means some will be above and some below. If everyone gets a 2% raise, and the people who worked hard see that the hard work wasn't rewarded they will either leave you for some place where hard work is recognized, or they will work down to the lower levels and still get the same raise.
How did your company do in the last year?
If your company had a good year, you may set the raise above the inflation rate, rewarding all, but still some people will get more than others. If you lost money, you may still give some raises to your outstanding employees, and the low performers may get nothing.
How did the individual employee perform their job?
This is the key component and the one that takes the most preparation by management. Let's guess that you have eight people to review. If the raise pool is 3%, you have $7200 to spread around. You can give everyone $900 and not upset anyone, but definitely not please your better performers. You have avoided telling the bad performers the hard truth, but they don't care because they got more then they deserve. And next year, you won't have the good performers to worry about. There will probably be two people who deserve good raises, four in the middle, and two who just don't get it, and the only way to get their attention is by limited their raise. There is an alternate path. In your $7200 pool, give your weakest links an extra thirty days to improve and then get a small raise. If they don't improve with the second trial period, it is time to help them look for a different career.
What about the extraordinary employee? For them to get a 4% raise, someone else has to get no raise. This is the time for what I call 'moving people to another ladder'. If an employee does a regularly good job, they can climb up a ladder that will give them inflationary raises, plus a few cents more. But sometimes you have to switch the super people to another ladder. If you need to work with someone else in your organization to get a ladder switched, a previously written outstanding performance review done earlier from the employment review will help you make your case to upper management. Maybe the change is a job title change, or adding different duties, or a change from hourly to salary, but whatever it is, let the employee know that they have switched ladders as part of your review with them.
Another question--"I'm the employee, how do I set my financial goal when it seems so one-sided that the company sets the number?" You're right. It is a at best a 70-30 conversation when it comes to the actual raise number because a poor economy, or a big job goes bad, and the company can't afford big raises this year. But you can have a large say by preparing your portion of the review in an honest light, emphasizing your successes. Be honest about the areas where you have been average and be specific on your plan to improve those areas. In the employment review session, ask how the company is doing...are there any surprises coming? Ask the questions about what you can do to earn the highest wage increases...what tasks can be learned or improved to get to the top? If those are accomplished can I be assured of the top increase? A good manager will anticipate these questions and have answers for them.
The financial review is one setting where proper documentation is needed for the person who doesn't get the top raise, for they are the person that can cry discrimination. A well written review, one that the employee commented on at the time of the review, acknowledged receiving, and then followed up ninety days later with rewards and punishments will always win out at any discrimination hearing. The company's plan has to be, that people who accomplished similar goals receive similar rewards. Again, the reward may be simply keeping the job; but as long as you have that spelled out in the employment review, and then confirm that in the financial review, you will be correct!
Any questions or comments? Post your thoughts on the US Glass News Forum and we will get right back to you with answers.If you have a question that you don't want published, write me at: paulbaseball@msn.com.
Why have these two meetings separated? In doing them together, the employee will only hear the wage rate, ignoring the constructive help that is offered during the review. If the raise is higher then expected, as all of, the employee will be thinking how to spend the windfall; if less than expected, we're planning who to appeal to, to get what we feel we deserve. Either way, the teaching part of the review is lost.
On the other hand, when properly spaced, you hit home-runs. Let's say, in the goal setting portion you wanted an employee to arrive on-time every day for the next ninety days. They do, and now at the financial review you comment on that improvement in performance and give a small raise. By reinforcing the reward concept, you can set another goal of performance improvement that can be rewarded at the next review. People absolutely respond to this type of goal setting and reward. If the behavior you are trying to improve is so bad, maybe the reward is just keeping the job. But you still want to phrase the review as a goal that has been reached and a reward given, even if it is only continued employment and the opportunity to grow.
A question from the right side of the blog, "What if the employee doesn't come in on time during the ninety day period?" In the goal setting session three months ago you set out the alternatives, come in on time and continue your job, or don't come in on time and you may loose your job. If you don't reward or don't punish your effectiveness as a manger is shot.
The financial review should be dependant on three broad themes:
How is regional economy going?
If the annual inflation rate of your region is 2%, you'll probably look to have an average raises of 2%. This means some will be above and some below. If everyone gets a 2% raise, and the people who worked hard see that the hard work wasn't rewarded they will either leave you for some place where hard work is recognized, or they will work down to the lower levels and still get the same raise.
How did your company do in the last year?
If your company had a good year, you may set the raise above the inflation rate, rewarding all, but still some people will get more than others. If you lost money, you may still give some raises to your outstanding employees, and the low performers may get nothing.
How did the individual employee perform their job?
This is the key component and the one that takes the most preparation by management. Let's guess that you have eight people to review. If the raise pool is 3%, you have $7200 to spread around. You can give everyone $900 and not upset anyone, but definitely not please your better performers. You have avoided telling the bad performers the hard truth, but they don't care because they got more then they deserve. And next year, you won't have the good performers to worry about. There will probably be two people who deserve good raises, four in the middle, and two who just don't get it, and the only way to get their attention is by limited their raise. There is an alternate path. In your $7200 pool, give your weakest links an extra thirty days to improve and then get a small raise. If they don't improve with the second trial period, it is time to help them look for a different career.
What about the extraordinary employee? For them to get a 4% raise, someone else has to get no raise. This is the time for what I call 'moving people to another ladder'. If an employee does a regularly good job, they can climb up a ladder that will give them inflationary raises, plus a few cents more. But sometimes you have to switch the super people to another ladder. If you need to work with someone else in your organization to get a ladder switched, a previously written outstanding performance review done earlier from the employment review will help you make your case to upper management. Maybe the change is a job title change, or adding different duties, or a change from hourly to salary, but whatever it is, let the employee know that they have switched ladders as part of your review with them.
Another question--"I'm the employee, how do I set my financial goal when it seems so one-sided that the company sets the number?" You're right. It is a at best a 70-30 conversation when it comes to the actual raise number because a poor economy, or a big job goes bad, and the company can't afford big raises this year. But you can have a large say by preparing your portion of the review in an honest light, emphasizing your successes. Be honest about the areas where you have been average and be specific on your plan to improve those areas. In the employment review session, ask how the company is doing...are there any surprises coming? Ask the questions about what you can do to earn the highest wage increases...what tasks can be learned or improved to get to the top? If those are accomplished can I be assured of the top increase? A good manager will anticipate these questions and have answers for them.
The financial review is one setting where proper documentation is needed for the person who doesn't get the top raise, for they are the person that can cry discrimination. A well written review, one that the employee commented on at the time of the review, acknowledged receiving, and then followed up ninety days later with rewards and punishments will always win out at any discrimination hearing. The company's plan has to be, that people who accomplished similar goals receive similar rewards. Again, the reward may be simply keeping the job; but as long as you have that spelled out in the employment review, and then confirm that in the financial review, you will be correct!
Any questions or comments? Post your thoughts on the US Glass News Forum and we will get right back to you with answers.If you have a question that you don't want published, write me at: paulbaseball@msn.com.
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