Wednesday, April 4, 2007

Ten Steps to More Profit Through Better Relationships

By Ken Wood: DGS 9.9's Consulting Partner

It is a given that our companies are only as good as our employees. It is problematic for us to do the multitudes of jobs required in a gymnastics business or multi-sport facility ourselves. So we must rely on others, our employees, to get the work done and get it done right. The single biggest problem in most gyms is hiring good employees who are beneficial to the bottom line. For many years, hiring the right person was hit or miss for us. Clearly, something had to change and that change had to come from me. After several attempts my company, Paragon Training Centers in Fredericksburg, Virginia has been able to put together a strong group of managers who are able to understand the importance of increasing the bottom line as one of our company’s goals. However, what may interest you the most is how we have achieved this end.

We have for some time followed the commonly accepted practice of hiring high-quality people with good attitudes who fit the attributes we are looking for and then training them for the position. Unfortunately many less successful companies often hire new employees for skills already possessed and do not recognize the importance of how an applicant’s attitude and work ethic would support the business’s ultimate goal of the bottom-line and profit. Here are ten steps you can take to improve your relationship with your partners (employees) and, if you choose to make these changes, you will see improved relationships, increased profits and a happier staff.

1. Admit your mistakes - Nothing will improve your relationships faster than admitting your mistakes before they are presented to you, or become a larger issue. Show evidence of both correction and learning from it. You can disarm any conflict by admitting your mistake first.

2. Don’t sweat the small stuff - The ability to overlook the daily issues and rise above pettiness goes a long way to giving employees the sense of freedom necessary to do their jobs well.

3. Accept what (and who) you can’t change - The ability to accept an individual as they are is the single most important aspect of showing respect to another individual. It is also sometimes the most difficult.

4. Put people where they belong - Everyone is different and have differing abilities or gifts. The biggest mistake managers make is to look at others through their own gifts and expectations they have of themselves. Doing this marginalizes the individual, making it impossible to utilize the employee effectively, creating an inefficient situation. When this happens the manager has made his own strengths into weaknesses not just for himself, but for the company as well.

5. Appreciate what you have - An employee is motivated more by management showing appreciation for a job well done than any other factor. Study after study shows this. Make sure you show your employees individually what they mean to you as well as the company in tangible, heartfelt ways. Sometimes this only needs to be a word of encouragement.

6. Offer to help - Show a willingness to do any job, any time. Pitch in at parties when understaffed; cover a shift or two when necessary (on top of your own work). Be generally helpful to your staff (no ivory towers!).

7. A positive attitude is a choice - This is infectious, just like a bad attitude. Make sure you set a good example.

8. Change is good - A methodical use of your prerogative to change your mind shows your ability to adjust to new stimuli. If used correctly and at the right time, you will show your staff that you are open to new ideas and ways of doing business. Eventually, your staff will feel comfortable about bringing their own ideas forward, which gives your company more options for improving profitability.

9. OK, what’s next? - Show your staff that working hard to anticipate problems or opportunities can minimize failures or possibly lead to larger profits. For example, changing a policy or tweaking the operating schedule to maximize efficiency during times of peak square footage utilization have the potential to do both, create new problems or make your business more efficient. Encourage your staff to anticipate what these may be and use them in your planning.

10. Require excellence, not perfection - Perfection is impossible. Plan on errors, knowing that everyone is going to make mistakes. By requiring excellence you are telling your staff that mistakes are acceptable but only if they learn from those mistakes and continue to improve both as an employee and a person.

As business owners and managers we are certainly not perfect by any means. Yet, in order to create a healthy work environment where all employees have a vested interest in the viability of the company’s long-term success, we have begun the long path to partnership outlined above. Eventually, if you practice these steps with your department leaders (managers), you will in turn see evidence of your upper level staff enlisting these practices with the employees they are responsible for supervising. The ultimate achievement is a cohesive unit working toward one goal: a team.

Ken Wood is the owner of a multi-sport facility in Fredericksburg, VA and CEO of Paragon Business Consulting Services, an affiliate of DGS 9.9’s. More information on Ken’s services can be found at http://www.gymsupply.com

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