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Business

Chris LoCurto

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December 7, 2010

Hiding the Truth

December 7, 2010 | By | 5 Comments">5 Comments

Something that everybody close to me knows is that I love babies. LOVE THEM! I’m the guy who gets the mean look from a mom when she’s trying to feed carrot mush to her child in a restaurant, but can’t because I have the little blessing of God laughing at me making funny faces at the other table. (Sorry to all you moms. I’m working on it.) One of my favorite games is when you play peek-a-boo by covering your eyes, not theirs, and they still wonder where you went. Every time you remove your hands from your face it’s like you just reappeared out of nowhere, like New Kids On The Block. The funny thing is that you were there the whole time.

Sometimes as business leaders we can play the same game with the realities we don’t want to face. One of those areas that I see from time to time when I’m working with companies is the hiding of expenses or adding of revenues to their Profit & Loss statements. (P & L’s are taking your revenues less your expenses to show you your net profit.) What I mean by that is, many times to really see if something is being successful you should put it on what is called a sub P & L. That’s where you assign all of its own expenses, income, and fair share of overhead to a single P & L. Now, if you make one widget, only sell that one widget, and never plan on doing anything but that widget…then keep reading anyway ’cause you might change your mind someday. But, if you have at least two different revenue producing items then, it’s not a bad idea to separate them to see how successful, or tragically failing they are on their own. As you get more and more items, it becomes almost necessary to do so. This is a great measuring stick to see how a product is doing.

The problem comes in when an owner/leader is either too busy, or is already doing a bad job with the accounting as is, or they are afraid to see the truth about what is going on. I’ve seen both. I understand the busy thing, it’s wrong, but I get it. The one that bothers me most is when someone is unwilling to see what’s going on. I can’t tell you how many times the team members of a company will tell me how the whole company knows that they have divisions that are dying and bleeding money, but the owner refuses to look at the numbers individually since they are all lumped together. As long as they see a bottom line that’s in the black they feel that everything is working flawlessly. This is a tragic mistake. Not only is it a waste of money/time/resources but it’s also demoralizing to the team members who see it. The converse of this is the number of times I’ve seen a leader collapse sub P & L’s into one to hide what they’ve already found out. Once again this is ridiculous.

Fix the problem! If the problem is that you’re too busy, get someone who can do it. If the problem is your inability to handle the truth, don’t worry, it will eventually reveal itself to you. Let’s just hope that at that time you haven’t lost your team, your bottom line, and your company. Take your hands away from your eyes and get in the game!

Have you experienced this in business? What about personal finances?

Chris LoCurto

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November 19, 2010

Buyer’s Remorse

November 19, 2010 | By | One Comment">One Comment

I wonder what percentage of guys…or gals, that bought the Ronco Spray On Hair absolutely had buyer’s remorse after their debit card (’cause I’m sure it wasn’t a credit card) was charged by the customer service/sales agent at the Ronco “have we got something you need” World Headquarters. Was there a moment while using the product that they realized all they did was paint their head? If you were one of super courteous and happy customer service/sales agents at Ronco, what ran through your mind each time that purchase was made? “What a dweeb!” “Poor sucker!” “Man, I should really pick up a can of this stuff!”

While there are many ways that buyer’s remorse is created, there’s one that comes after buying from a horrible sales person. That’s right, the high pressure sale. I have seen this all too often and it absolutely drives me crazy. This is when someone with mass arrogance makes you feel like the product they have is so amazing, and so fantastic, that if you don’t drop everything you’re doing right now and buy it you’re an idiot. Now don’t get me wrong, any sales person worth their weight in gold is going to be sold out passionate for their product!

The problem comes when they think they can and need to bully someone into a sale. “I don’t have time to mess around with you. If you’re not ready to buy right now I have other people who are crouching around my feet with money in their mouths just waiting. What’ll it be?!!” Too many times I have watched someone be bullied into this purchase.

The outcome, buyer’s remorse. What does that mean for the sales person? A CANCELLATION!!!! That’s right. Once this person realizes that they weren’t served, they were taken advantage of, they all of a sudden have an Aunt who’s come down with some…crazy unheard of disease that they now have to have that money back to take care of the situation. And who could blame them for wanting to cancel. They weren’t served in the process.

If you are that sales person, In EntreLeadership I teach our 4 step process; Qualification, Rapport, Education, and Close. I can’t cover them all right now so I’ll get to the others in later posts. The first and most important step is you have to actually see if they are qualified for your purchase. If it’s a $10 item this shouldn’t be difficult…unless they’re 5 years old, then this could be a challenge. With the qualification process find out if they actually NEED your product or service. Do they have the money to purchase? Do they have the authority to pull the trigger? If not, you’re wasting both parties time.

This is your greatest opportunity to SERVE the customer. I know, it’s a foreign idea that we should actually serve someone in our sales process, but when you do, you will be blown away by how easy the rest of the sale becomes. Once we have trust, you can move onto building rapport and educating me. I can move pass the price once the scale of value has been tipped in my direction. So next time you are selling someone, try not to sell! Instead, serve them and watch what happens.

Chris LoCurto

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September 23, 2010

Leading by Fear

September 23, 2010 | By | No Comments">No Comments

If you’ve ever played any kind of organized sports, than you know that talking trash is an inevitable part of almost every game…except maybe in badminton. What could you possible say, “I’m gonna hit you so hard with this birdie you won’t remember your mama’s name!”

It just doesn’t have the same fear factor as say football or say Jai Alai. (I just needed an excuse to go all Jai Alai on ya!) The goal is to make your opponent feel that you are superior. The funny part is that if you actually were superior, there would be absolutely no need to make someone feel afraid.

Unfortunately, I observe these same tactics being used in leadership. Take the threat of firing someone for instance. There are basically two reason for that threat; someone has done something stupid enough that they genuinely may lose their job, or you want to make someone feel that you are in control of their destiny.

If someone respectfully challenges your processes and your first response is a threat, then you’re not actually leading. In fact, you’re rapidly losing the respect of that person as well as paralyzing them from ever acting on instinct with you again. Any good leader knows this is a highway to the danger zone. (Sorry about that.) Your goal is to foster greatness even if it causes you to take a hard look at yourself. Only then can you truly lead.

This raises the question, “What if I’ve hired an idiot maverick who won’t follow or listen and is always causing problems?” I’ve had this person and I will be following up that answer in future post.

Tell me about the times you’ve observed someone leading by fear.

Chris LoCurto

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September 10, 2010

Hiring T.O.

September 10, 2010 | By | One Comment">One Comment

There are many times in a leaders life that they ask themselves the question, “what the heck was I thinking when I hired that guy?!!” After the 17th person on your team tells you how difficult the new person is to work with, you start to realize there is something way more important than hiring a “star.”

You begin to understand that it doesn’t matter how talented a person is on his own. (Unless your like a tennis coach or something.) One of the worst days for leaders is when they realize they have dropped a death metal guitar player into the middle of their 40 piece orchestra. At first it looks like a fun and exciting change, but quickly everyone understands just how badly this is going to play out.

What does this have to do with T.O.? Well, if you have watched his career at all you’ve noticed that there have been some…..”bumps” in the road. There is no doubt that he is a phenomenal athlete who, when he actually catches the ball, can make some serious plays. The problem isn’t once he has the ball, it’s everything that goes on around that moment.

All I can go by is how I’ve seen him act on the field and what his teammates have said. It’s my opinion that he has done way more damage to teams than good. And the reason is simple, it’s a TEAM sport! A buddy of mine, Ron Cook, used to manage Kenny Stabler in his post career, and Stabler always said, “You can have all the talent in the world, but you will not win if you don’t have a happy locker room!”

On the other hand, hiring the right person is one of the greatest joys of any leader’s life. Building a team of right people, is as fantastic as the first time you wake up to find out that there really is a Tooth Fairy, and she left you a quarter! (Am I showing my age there? Aren’t kids getting iPads for a tooth now?) When you have a team that works together in unity, you can accomplish absolutely anything.

God talks about this in Genesis 11:6 when He said that since the people were of one mind, together in unity, nothing would be impossible for them. Just like MacGyver with a paperclip and some rubber bands. One of the keys to hiring correctly is to hire the fantastically talented, who also are equally talented at being team players. (Key word: talented!) As Kurt Russell said in Miracle “I’m not looking for the best players…I’m looking for the right ones!”

This doesn’t mean you slack on finding someone who can do the job better than anyone else, you still need to hire someone who will leave the cave, kill something, and drag it home. They just need to play nicely with the other hunters.

Question: Have you ever been T.O.ed?