I was thinking about this discussion between Ron and myself when I realized that most often we know when there is a “weak link” in the organization. Now the question becomes what o we do about it?

How much time and effort do we put in to try and convert the individual to a strong team member?

Unfortunately I think part of the answer lies within how important the person is to the organization and how detremental is the behavior? A salesperson that sells 2 million dollars a year in profitable work, the brother of the owner who has a silver platter mentality and a field laborer will probaly all be treated differently.

I have a strong belief that when the meeting on that fateful day when you must separate the indivdual from the organization arrives it should not be a surprise to either party. That goes for the salesman, brother and field worker alike.

Therefore it is essential to clearly communicate reasonable performance expectations and when they are not substantially met the situation needs to be adressed in a very timely fashion.

Ultimately the employee should be placed on a defined personal improvement plan for 30 -90 days. This is when leading turns into managing because now the supervisor needs to meet with the individual on the PIP once a week to discuss progress on short and medium term expectations. With a positive attitude towards change from the employee and proper management of expectations and results, often the person can be turned into a valuable human asset of the corporation. If the PIP fails to produce results then it is time to make a change for that position.

The benefit of this process is that you have documentation along the way that reinforces either decision. If you would like more information on personal improvement plans or you need help coaching difficult employees feel free to contact Guy or Ron.

Ron I think we are on the same team playng doubles. Your Serve!

The ball’s in my court. Time to return serve!

You all are getting a rare opportunity to eavesdrop on the type of conversations that Guy & I frequently have…but never within earshot of others.

We always hold them in private. Either over the telephone or, if we’re lucky, face to face. You see, staying on the same page publicly is something we both feel is of utmost importance. Rarely (ever?) have we disagreed on something once we talked it out.

Trust me. Our take on leadership and its impact on business success is IDENTICAL. We just have different ways of expressing it. Back to the topic at hand.

The point of my original post - which Guy isn’t disagreeing with,  he’s just kind of redirecting it - is that on a daily, in the trenches type, basis a weak employee distracts and demotivates all those around him (or her) for more forcefully than a leader’s positive efforts do.

We both mentioned that the leader is responsible for the recruitment, development, and possible dismissal of that weak link.  Of course, being responsible and taking action are two completely different things.

My point was to remind our readers who happen to own their company that they really can’t afford to overlook the negative impact bad employees have on their entire staff.

If you own your company, you have final authority over staffing decisions. If you’ve hired someone to run your business, or a part of it, for you, you’re still the one that has to hold that person accountable for removing dead, or diseased, wood.

If you ignore the impact that weak link has on the rest of your staff, you are making a HUGE strategic mistake.

Now it’s back to being your turn, Guy.

Eager to see your reply.

Ron

P.S.

Guy and I really haven’t shared publicly our deep insight into leadership. Our leadership techniques and methods are unique, simple, and HIGHLY effective at transforming people into amazingly successful leaders. It is a competitive advantage for us and we typically only share it with our paying clients (which will include the members of our private club).

Merry Christmas

Well Ron perhaps we can cause some real interaction with this topic. I too will go with the leader! See we are in agreement again. However the question you raised is who has the MOST IMPACT?

In a successful organization I unequivocally believe that leader(s) have the most impact. It is the leaders responsibility to make sure the organization hires the right people. In the event that a poor hiring choice was made the leader is also accountable to determine if the newbie can adapt to their new environment in a reasonably short period of time. If not making a decisive decision to remove this person from the “bus” before cultural damage can take place is a necessity.

Another question is what is the definition of a leader? Is it the owner, an upper manager or any individual in the organization.

I would assert that their are leaders that are appointed by title and others that step up to the plate and take a leadership position. Which is what Ron is pointing out to our readership in his preceding post.

An excellent leader will develop players that will step up to plate on a daily basis. Leaders who may not be empowered to hire and fire can still spread  positive culture and when necessary inform the powers that be that the organization has a problem employee on its hands. This will probably will not come as a surprise but presenting examples along with good documentation makes it easier to remove the problem.

Now it’s time for you to chime in with your thoughts on the subject.

Happy Holidays.

Guy and Ron

MERRY CHRISTMAS!

Good morning (at least for me it’s morning).

Something caught my eye while drinking my coffee and surfing the internet. Something that Guy and I will research and argue about ’til the cows come home but something you might want to chew on.

The question raised is “Who has the most impact on group success? The leader or someone else?”  I will go with leader, only because the leader gets to choose his or her worst employee. However, on a daily basis, I suspect the worst employee has the greatest impact on group success.

What got me thinking about this was something Henry Abbott mentioned in an article posted this morning.

Another part of the story mentions that in some research, across many industries, the best predictor of a team’s success came from assessing the worst person on the team. As in, that person has a bigger effect than the leader or an average player.

Now, there’s something to consider. Your business’ success may be more affected by the quality of your worst employee than by the quality of your leadership skills.

Although the author is referring to a sports team, the observation probably holds true for a business. The weak link, non-performing, lazy employee is going to drag everyone down.  The negative pull will be stronger than the positive pull of the leader.

Taking this thought further, the observation supports why Guy and I preach the need for creating a company culture that rejects poor performers. A culture where mutual accountability is found in every corner. A culture where the leader isn’t the only one who steps up and confronts employees who aren’t behaving correctly, working hard, and pulling for each other.

Stay tuned. I’m sure we’ll have more on this soon.

We pray you and your family have a safe and happy holiday week.

Your friends,

Ron & Guy

I am not referring to your stock portfolio or retirement account!

I am asking if you have CHECKED your investment in your clients, prospects, networking alliances and employees. In an upcoming newsletter we will be giving you a systematic process for GROWING these investments.

Make sure you sign up for our newsletter and complete the verification process.

Don’t Miss It!

Guy and Ron

Would you like a sneak peek at the content we will be making available in our upcoming private club (membership site)?

Give us a call.  Our numbers are located in the header above.

We’re looking for a handful of contractors to give us their feedback and guide our efforts. We’ll show you what we’re planning on doing then listen to your advice on what would make the site more valuable and more entertaining.

We sure could use your help in prioritizing our content creation. So much we can do and so little time. We have to prioritize and determine what is going to be on the site when we launch (soon!).

Call us if you are interested in helping out and getting the first
glance at our awesome stuff.

If you happen to be someone who provides services to, or hosts a website for, contractors and who might be interested in earning commissions by persuading your contacts to joining our private club, call us to get the details. The income generated from your list could be quite attractive.

We plan to make each chat a one-on-one show-and-tell but if several contractors are eager to participate, we’ll set up a conference call and online meeting on a day that works for most.

Okay. Back to content creation. Tonight’s two recordings are Daily Logs and Quality Audits.

Your friends in arms,

Guy & Ron

P.S.  As part of our show and tell, it will be necessary to send you one or two audios for your feedback. Make sure you carve out time from your schedule to listen to them ASAP and then get back to us with your thoughts.

Recently a client of ours dropped a line that just cracked us up…because his point was so dead on and tragic.

Allow me a moment to give you a little insight into his thought process.

Dennis’ background is unique for our industry.

He came from the printing industry.

That’s one rare trait among contractors. Another is that he has built several successful businesses.

How did he end up in construction?

To start with, he’s probably a little crazy.

The real truth is that he sold his printing business; retired; got bored playing golf; and decided he missed the challenge of running a business.

In other words, he wanted back in the game only the game he chose this time was construction. Obviously, Dennis is a glutton for punishment.

He’s had his company for a little over a year. In that time he noticed there was almost no bottom to the price cutting contractors will do in order to land work when they’re slow. And that’s where he came up with his observation~

“Racing To Zero!”

It is SO dead on. That’s what makes it both so funny and so tragic.

Even during boom times, there’s always a contractor out there who wants to give his work away for free. All the while whittling away at the solidarity of your client relationship.

The price slashing that is going on now is  numbing. It really is like everyone is in a race to zero. To complete, total ruin.

Try not to be one of those who is undermining our industry. Learn to prospect, qualify, and sell. Then price your services fairly.

Best of luck with your business.

Wishing you great success,

Ron & Guy

Good Morning All…

Just got off the phone with Guy. He’s snowed in at his home in Valparaiso, IN. He’s got 7″ of shoveling to do this morning. I should be there with him. We could both use the exercise!

I’m sitting in a Hampon Inn lobby waiting for my lovely wife to come get me.

Guy’s got the better spot. A gorgeous home on the lake that serves as headquarters when I’m in Chicago.

If you ever get a chance to visit Branson, MO during the Christmas season, take advantage of it. It’s like an outdated Las Vegas without the gambling. This tiny little town on the Arkansas - Missouri border is the home for dozens of Las Vegas style and size shows.  The town is nestled in a beautiful, hilly part of the Ozarks. It’s just a great place to lose yourself for a day or two with someone special.

Switching over to the business of construction.

Our phones have been ringing their little speakers off (we live by cell phone). Contractors have been calling us in dire straits as their work opportunites have dried up. Others calling us to get on our January and February schedules.

We have received multiple inquiries from other service providers who are interested in creating some form of win-win relationship. Thank you to Tom and Patrick (www.mini-equipment.com), Paul Rodriguez (www.rmckc.com), Pat O’Rourke (www.pvcc.edu), and Kim Maddox (www.qualstaff.com). Thank you for reaching out to us. We look forward to working with you.

Thank you also to our ongoing partners-in-crime: Kelly Olcott (www.thedatabridge.com), Mary Redmond (www.reviewyourlease.com), Nathan Wingate (www.buildingnetwork.com), and the numerous publishers we write for (too many to remember and name this early in the morning).

Well, Julie just walked up with a smile on her face and a cup of coffee in her hand.

Gotta go.

Check back soon. We’ll be back on topic with a new post within a day.

Have a great weekend.

Ron & Guy

P.S. My wife just asked me “What are people writing back to you?”. I shot the here-we-go-again look and mumbled “No one ever posts. They just lurk.”

She waved her hand and proclaimed “That’s not a blog, then. Blogs are supposed to be interactions between author and readers. I’ll bet you haven’t asked them to, have you? Ask them. (Actually we have.) Tell them it’s time for them to speak up.”

So, help me out here. Please leave a comment explaining to her why you don’t leave comments. I’m tired of explaining it to her.

In our upcoming newsletter, we will be sharing our MAGIC FORMULA for explosive financial success (as a contractor).

This is your ONE FREE SHOT at it.

Don’t miss out.

Sign up now for our free newsletter in the FORM BELOW (your email must be legit).

The Contractor Best Practices Newsletter

After next Tuesday night, the only way you can learn our magic formula will be to join our roster of coaching clients or join our upcoming membership site.

If you aren’t currently receiving our newsletters, fill in the form above or go back to our home page and sign up (www.filthyrichcontractor.com/).

By the way, your registration will not be complete until you’ve flipped over to your email program, found the confirmation email, and clicked through it to confirm your desire to receive the newsletters. Our delivery service prevents us from sending newsletters to people who haven’t verified their desire to receive the emailed newsletter.

If you’ve signed up before but still aren’t receiving the newsletter, check your spam blocker and search your email to find the confirmation email you may have never confirmed.

The Magic Formula is Just That: Magic

(It’s also nearly top secret)

We’ve yet to meet one hugely successful contractor that hadn’t implemented the formula. We’ve also yet to meet one that was aware he or she had followed the formula.

Love it or hate it. It will make you a ton of money when you implement it!

We’ve never seen the magic formula mentioned anywhere else.

Not during our unnecessarily extensive academic educations; not during our extensive reading of business articles and books; not on the web; not in seminars. Not in the way we’ve pulled the magic formula together.

The magic formula is simple, yet profound.

We came across it while working with dozens of contractors and then verified it’s accuracy through interviews with a select group of highly, highly profitable contractors.

The magic formula applies to large and small, commercial and residential contractors alike. It even applies to contractors who only work on government projects. It applies to every trade, geographic market, and customer base.

Don’t miss out. Make sure you are signed up for the newsletter by next Tuesday night. It goes out early Wednesday and then it’s gone.

The Contractor Best Practices Newsletter

Wishing your great success with your business.

Ron & Guy

Ready to get back to work after the craziness that is Thanksgiving and the day after?

I thought you might find the following two catchy blocks of advice interesting. They were passed on to me from Tim Hmelar (650-888-4745). Tim has perfected the execution of kitchen and bath remodels. Soon his system will be available via the internet as a membership site.

Tim follows a handful of key thoughts to drive his success. I don’t know the origin of the two sayings he shared, but they’re both really good and really useful. Here they are.

Tim’s 4 Conditions For Profitable Selling

1. Visibility

2. Credibility

3. Convertibility

4. Profitability

Your business must have visibility and credibility. Your prospect must be convertible and willing to pay a sufficient price for you to be profitable.  Only when you have all four conditions will you be able to consistently land profitable work.

Tim’s Five E’s to Wowing Customers

Expectations: set them correctly

Economics: make sure the money is sufficient to meet expectations

Efficiency: get in and get out quickly

Effectiveness: manage the client through the entire process

Evangelist: turn your client into someone who will stand on the mountain and sing your name to all he or she meets

I’m not sure where Tim found these nuggets of advice, but the sure are dead on.

Do yourself a favor. Have someone in your office make large posters of these two sayings and hang them in your office in clear line of sight.

Wishing you great luck with your business.

Ron & Guy