He sure did. And I was surprised that I could learn from Mr. Murdoch. After all, I am a small businessman, ran a company with 250 employees, do a little consulting and writing now, and was nowhere in his multi-billion dollar league. So, I want to share with you what Mr. Murdoch taught me.
First, a little background. There are two results of learning by observing others. One way is that you observe someone doing something well; you take the same steps in your company, and lo and behold, your company is now doing something well. The other is to observe someone purposely stepping into a deep mud puddle, and saying to yourself, I should not follow in his footsteps.
To me, Mr. Murdoch stepped into the mud puddle relating to the telephone hacking scandal in Great Britain.
A British Member of Parliament asked, "Was he ultimately responsible for this criminal enterprise at his British Operation?" "No", he replied, "I hold responsible the people that I trusted to run it and the people they trusted."
Now, Mr. Murdoch is the Chairman of the Board and CEO of News Corp, which owned the newspapers involved. His family owns controlling interest in this multi-billion dollar company. Last time I went to school, I learned that the person in charge is responsible for everything. President Harry S. Truman said it best with a sign on his desk, "The Buck Stops Here". You make the big bucks, you sign everyone else's paycheck, you are responsible.
The surest route to ruining any organization is to not accept responsibility and to blame those under you. No employees will take risks after that. No one will respect you after that. No one will be eager to gain a promotion after that. No one will want to work for you after that.
A leader cannot side-step around taking responsibility. That is one of the very definitions of leadership. When you run your glass shop, or any business for that matter, you can be disappointed in an employee who makes a mistake; you can teach them, or ultimately you can fire them. But that does not take the place of accepting responsibility for every action that takes place in your organization.
Not that I ever would have wanted a job in Mr. Murdoch's vast empire, but after his comments, I won't even bother sending my resume.
Monday, July 25, 2011
Tuesday, July 19, 2011
How Granite State Glass Is Fighting The Recession
I have a friend, Malcolm, who is an architect in Keene, NH, the closest city to where I live. He invited me to a 'lunch and learn' session at a local general contractor where the subject was Doors and Windows. He thought it would be of interest to me. He was right. I came away with knowledge, but what I gained most will help every glass shop and contractor in the country.
The program was taught by two representatives of JELD-WEN windows, and they really knew their stuff. They kept the program clear of advertising and self promotion, teaching about different kinds of windows and doors. There were twelve estimators from the GC at lunch, and they knew who was doing the teaching. In fact, they were more impressed with JELD-WEN for being neutral and not taking advantage of the situation.
But the real winner, from a business point-of-view was Granite State Glass, the leading glazing contractor in New Hampshire, with eight locations in New Hampshire and one in Vermont. They were the ones that set up the program and recruited JELD-WEN to do the teaching. Two senior members of Granite State's marketing team were there, but in the background. They introduced the speakers from the window company, and at the end, thanked everyone for coming. They also offered each person there a binder with ad sheets on some of their specialty products. It was just a perfect undersell.
Granite State didn't wait for some business to come knocking on their door. They created an image of knowledge and competency in the estimating crew of the largest GC in our region. Talk about hitting a home run!
You can do the same. Every major vendor you deal with will be glad to send in an educational team for a presentation like this. Whether it comes from the aluminum sector, a glass fabricator or floater, or fenestration suppliers, there is a tremendous amount of knowledge out there that your customers would be eager to learn. This didn't cost Granite State a ton of money. They had a box lunch for a dozen people, and their invested time.
Line up your vendor(s) of choice...people who have a story to tell about new energyy-savings products, decorative products or safety for building occupants. These are all hot topics right now. If your vendors are certified by the AIA to offer Continuing Education Units, which will be important to the GC's and the architects, this will help.
The work you have to do is to prepare your own marketing materials. Now you don't have to create new stuff. Use the brochures from your key suppliers, and place them in a three ring notebook with a sticker from your company on the cover.
Don't skimp on the lunch. The difference between a $6 lunch and a $10 lunch is a good will bonanza.
Granite State, as far as I saw, didn't get any work that day. But the impression they left of professionalism and knowledge about glazing and glazing products will get them work in the future. You can do this too.
The program was taught by two representatives of JELD-WEN windows, and they really knew their stuff. They kept the program clear of advertising and self promotion, teaching about different kinds of windows and doors. There were twelve estimators from the GC at lunch, and they knew who was doing the teaching. In fact, they were more impressed with JELD-WEN for being neutral and not taking advantage of the situation.
But the real winner, from a business point-of-view was Granite State Glass, the leading glazing contractor in New Hampshire, with eight locations in New Hampshire and one in Vermont. They were the ones that set up the program and recruited JELD-WEN to do the teaching. Two senior members of Granite State's marketing team were there, but in the background. They introduced the speakers from the window company, and at the end, thanked everyone for coming. They also offered each person there a binder with ad sheets on some of their specialty products. It was just a perfect undersell.
Granite State didn't wait for some business to come knocking on their door. They created an image of knowledge and competency in the estimating crew of the largest GC in our region. Talk about hitting a home run!
You can do the same. Every major vendor you deal with will be glad to send in an educational team for a presentation like this. Whether it comes from the aluminum sector, a glass fabricator or floater, or fenestration suppliers, there is a tremendous amount of knowledge out there that your customers would be eager to learn. This didn't cost Granite State a ton of money. They had a box lunch for a dozen people, and their invested time.
Line up your vendor(s) of choice...people who have a story to tell about new energyy-savings products, decorative products or safety for building occupants. These are all hot topics right now. If your vendors are certified by the AIA to offer Continuing Education Units, which will be important to the GC's and the architects, this will help.
The work you have to do is to prepare your own marketing materials. Now you don't have to create new stuff. Use the brochures from your key suppliers, and place them in a three ring notebook with a sticker from your company on the cover.
Don't skimp on the lunch. The difference between a $6 lunch and a $10 lunch is a good will bonanza.
Granite State, as far as I saw, didn't get any work that day. But the impression they left of professionalism and knowledge about glazing and glazing products will get them work in the future. You can do this too.
Monday, July 11, 2011
An Easy Way To Gain New Customers...And Cheap Too!
Radio Advertising? No.
Television Advertising? No.
Hiring A Clown To Stand Outside Your Front Door? No.
Full Page Ad In The Yellow Pages? No.
A Web Site That Really Pops? No.
Newspaper Ads That Blanket Your Market? No.
Creating A Referral Program From Current Customers? Yes! Yes!! Yes!!!
My wife, Elaine, forwards me articles that she comes across that might make great blogs. This time she hit a home run, sending me an article about customer referrals originally published in the Harvard Business Review. The article details a large bank in Germany that started a customer referral program. It turns out that the new customers brought in during this program were more loyal to the bank, keeping their accounts longer, were more profitable to the bank, as they were less expensive to obtain and used more bank products, and they did more business with the bank than other new customers.
This study followed 10,000 new customers at the bank over a couple of years. There are no glass shops that I know of that generate this many customers. But the lessons learned are the same. Do a good job for someone, they tell others, and you will gain new business that will be profitable. A customer who wants you to do work in their home or business won't give you a small job to try you out. After all, their friend did that for them. A referred customer will trust you from the start and will want to work with you to the fullest extent possible.
You get the picture. Let's look at some ways that a glass shop can gain these types of customers.
Your current customers will be giving their friends 5% off on something, which makes them feel good, and they may earn discounts on your future work, which makes them feel good. At the same time, you feel good because of the increase in business. Trust me, this works. It is used by many companies in many industries throughout business.
It takes some ongoing work, a letter every six months to old customers reminding of your program; making sure that new customers are queried as to how they came into your store, and if by a referral, getting the reward letter out right away to the previous customer.
The best advertising in the world, bar none, is when a satisfied customer tells a potential customer. You can take this one to the bank.
Television Advertising? No.
Hiring A Clown To Stand Outside Your Front Door? No.
Full Page Ad In The Yellow Pages? No.
A Web Site That Really Pops? No.
Newspaper Ads That Blanket Your Market? No.
Creating A Referral Program From Current Customers? Yes! Yes!! Yes!!!
My wife, Elaine, forwards me articles that she comes across that might make great blogs. This time she hit a home run, sending me an article about customer referrals originally published in the Harvard Business Review. The article details a large bank in Germany that started a customer referral program. It turns out that the new customers brought in during this program were more loyal to the bank, keeping their accounts longer, were more profitable to the bank, as they were less expensive to obtain and used more bank products, and they did more business with the bank than other new customers.
This study followed 10,000 new customers at the bank over a couple of years. There are no glass shops that I know of that generate this many customers. But the lessons learned are the same. Do a good job for someone, they tell others, and you will gain new business that will be profitable. A customer who wants you to do work in their home or business won't give you a small job to try you out. After all, their friend did that for them. A referred customer will trust you from the start and will want to work with you to the fullest extent possible.
You get the picture. Let's look at some ways that a glass shop can gain these types of customers.
- Your first step, do a great job for your current customers. Do such a good job that these folks want to brag about you. This doesn't mean a low price; it means leaving the site cleaner than you found it; it means being on-time, polite, and non-intrusive in your customer's home or business. It means doing the job contracted for, or improving on the design once you opened a wall or framing.
- As you near the end of the job, ask the customer if they are pleased so far. Get their input before you finish the job and solve any issues that come up before you close up. At the end of the job, ask the customer if they are extremely satisfied, and if not, what would it take to get to this point. Then do what they ask for. (This does assume that all financial terms have been met up to this point. If not, you will have to go the route of being cautious.)
- Since they are now completely satisfied with your work, ask them to refer their friends to you. It sounds simple, but the basic question should be asked, planting the seed in your customer's mind.
Your current customers will be giving their friends 5% off on something, which makes them feel good, and they may earn discounts on your future work, which makes them feel good. At the same time, you feel good because of the increase in business. Trust me, this works. It is used by many companies in many industries throughout business.
It takes some ongoing work, a letter every six months to old customers reminding of your program; making sure that new customers are queried as to how they came into your store, and if by a referral, getting the reward letter out right away to the previous customer.
The best advertising in the world, bar none, is when a satisfied customer tells a potential customer. You can take this one to the bank.
Tuesday, July 5, 2011
This Blog Has Nothing To Do With The Glass Industry, But You Should Read It Anyway
Today the glass industry is not important. I have a story to tell, one so important that it must be published. This is a story about my next door neighbor. For this story, let's call him Bill, but everything else about this story is absolutely true. Read on.
Even though Elaine and I live in a fairly rural area of New Hampshire, we do have a next door neighbor. Bill lives about 1000 feet down the road. His wife and daughter live at home and their grown son lives about an hour away. Bill is a tall, thin, and normal person about 50 years old. About two years ago he developed symptoms that Doctors had a hard time understanding. There was about a year of extensive testing and head scratching. It turned out Bill's heart was failing.
In October of last year, Bill and his wife went to the Mayo Clinic in Minnesota. He was there for two months and was told his only option for life was a heart transplant. Talk about life-changing. He came home under a plan that the Mayo would call him at any time, and he would jump on a chartered jet for the operation in Minnesota.
The travel logistics were slightly confusing, to say the least. So Bill and his wife went to the Massachusetts General Hospital in Boston, about an hour and a half away from here, for a second opinion. After a couple of weeks there for testing, their opinion was the same. His only choice would be a heart transplant. His condition deteriorated even more, and Mass General felt he should not go back home as any infection or problem could have disastrous results. In the second week of January, Bill was admitted to the Coronary intensive care of the hospital, to await his surgery.
Mass General usually does about 25 heart transplants a year. But not this year. Bill lived in the hospital for almost six months, waiting. He had a couple of 'possible' hearts, but they turned out not to be compatible. From January through June, the Hospital only did a handful of transplants. It seems that less donor hearts were available because of some amazing statistics:
Bill wanted to get home for so many events. He was crushed that he could not attend his daughter's high school graduation. So, we took the graduation to him. She graduated on Saturday morning three weeks ago. Saturday afternoon, we all drove into Mass General. His daughter came in her cap and gown and we had a real party that was set up and organized by the caring hospital staff. Bill was so happy.
Then, as we left, it was back to the normal days in the cardiac unit. Except, on the very next day, at 3:00 in the afternoon on Sunday, a heart was brought into the hospital. It matched. In the blink of an eye, the surgery started. It took over fifteen hours to complete the surgery by dozens of surgeons, nurses and staff. It was a success from the first new heartbeat.
Last Thursday, Elaine and I drove into Boston and brought Bill home. When he saw his home for the first time in almost six months, he was ecstatic.
Think about it. Two and a half weeks after this incredible surgery, he was home feeling better than ever. He will be monitored for life, and have to be careful with certain health situations, but this is a minor inconvenience considering the alternative.
Miracles defy explanation. This is not a miracle, but is the result of hundreds of dedicated doctors, nurses, aids, lab techs and so many more. This is because of a family of a deceased person who helped another life continue. This is because Bill's family always smiled and cheered him on, month after month.
This is because of health insurance that covered expenses and employers who granted time off. This is because of years of research and testing by medical labs. And yes, there is a little bit of miracle thrown in.
Even though Elaine and I live in a fairly rural area of New Hampshire, we do have a next door neighbor. Bill lives about 1000 feet down the road. His wife and daughter live at home and their grown son lives about an hour away. Bill is a tall, thin, and normal person about 50 years old. About two years ago he developed symptoms that Doctors had a hard time understanding. There was about a year of extensive testing and head scratching. It turned out Bill's heart was failing.
In October of last year, Bill and his wife went to the Mayo Clinic in Minnesota. He was there for two months and was told his only option for life was a heart transplant. Talk about life-changing. He came home under a plan that the Mayo would call him at any time, and he would jump on a chartered jet for the operation in Minnesota.
The travel logistics were slightly confusing, to say the least. So Bill and his wife went to the Massachusetts General Hospital in Boston, about an hour and a half away from here, for a second opinion. After a couple of weeks there for testing, their opinion was the same. His only choice would be a heart transplant. His condition deteriorated even more, and Mass General felt he should not go back home as any infection or problem could have disastrous results. In the second week of January, Bill was admitted to the Coronary intensive care of the hospital, to await his surgery.
Mass General usually does about 25 heart transplants a year. But not this year. Bill lived in the hospital for almost six months, waiting. He had a couple of 'possible' hearts, but they turned out not to be compatible. From January through June, the Hospital only did a handful of transplants. It seems that less donor hearts were available because of some amazing statistics:
- More cars have air bags as new cars replace old ones, fortunately killing less people.
- Also, the whole country is driving less because of the price of gas. Most heart donors come from automobile accidents.
Bill wanted to get home for so many events. He was crushed that he could not attend his daughter's high school graduation. So, we took the graduation to him. She graduated on Saturday morning three weeks ago. Saturday afternoon, we all drove into Mass General. His daughter came in her cap and gown and we had a real party that was set up and organized by the caring hospital staff. Bill was so happy.
Then, as we left, it was back to the normal days in the cardiac unit. Except, on the very next day, at 3:00 in the afternoon on Sunday, a heart was brought into the hospital. It matched. In the blink of an eye, the surgery started. It took over fifteen hours to complete the surgery by dozens of surgeons, nurses and staff. It was a success from the first new heartbeat.
Last Thursday, Elaine and I drove into Boston and brought Bill home. When he saw his home for the first time in almost six months, he was ecstatic.
Think about it. Two and a half weeks after this incredible surgery, he was home feeling better than ever. He will be monitored for life, and have to be careful with certain health situations, but this is a minor inconvenience considering the alternative.
Miracles defy explanation. This is not a miracle, but is the result of hundreds of dedicated doctors, nurses, aids, lab techs and so many more. This is because of a family of a deceased person who helped another life continue. This is because Bill's family always smiled and cheered him on, month after month.
This is because of health insurance that covered expenses and employers who granted time off. This is because of years of research and testing by medical labs. And yes, there is a little bit of miracle thrown in.
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