Hey there.
Speaker:Welcome back.
Speaker:A warm welcome back to Connect and Convert.
Speaker:This is the podcast where small business owners come to hear the insider secrets
Speaker:about how to grow sales faster than ever.
Speaker:Yes, indeed.
Speaker:We're glad to be back.
Speaker:I am joined as usual by two of my colleagues.
Speaker:Uh, you've met Producer Paul.
Speaker:He pops in every once in a while.
Speaker:He's at the controls today, but my partner in crime as always, miss Leahey.
Speaker:Hi Leah.
Speaker:Hey
Speaker:Dennis, we are gonna be the sharer of secrets today, aren't we?
Speaker:Just as always share
Speaker:Ooh, the sharer of secrets.
Speaker:Yes, we, and they're insider secrets.
Speaker:They're not just any secrets.
Speaker:They're insider secret.
Speaker:Exactly.
Speaker:And, and I just have one question.
Speaker:Are you guys getting any kind of springtime up there in Canada?
Speaker:I mean, you had a, you had a snowy and cold winter.
Speaker:How's it going?
Speaker:We did, and you know what, it is a little bit chilly out there, but it, there's
Speaker:a tiny skiff of snow in my front yard.
Speaker:It's pretty much done now.
Speaker:It's dust season.
Speaker:After this season, dust, dust.
Speaker:All the roads are covered in sand, covered in dust.
Speaker:Oh, I, we don't complain about that because I can go for my
Speaker:long walks and it's gorgeous.
Speaker:Good for you.
Speaker:Well, again, I, uh, uh, I hope that I can come up and visit Canada this year.
Speaker:I don't know if US citizens are gonna be allowed in me.
Speaker:Love you guys coming out.
Speaker:Don't.
Speaker:I don't wanna get all this political stuff, but you know, I must say, have,
Speaker:have you been seeing the craziness that's going on here in the news?
Speaker:Leah?
Speaker:I don't know.
Speaker:Maybe you guys cut that news out.
Speaker:I would, if I could.
Speaker:There's, there's stuff going on.
Speaker:It depends what craziness.
Speaker:You can always find what you're looking for, I guess.
Speaker:It's, uh.
Speaker:Layoffs, government layoffs.
Speaker:It's turnover.
Speaker:It's holding people accountable.
Speaker:It's, mm-hmm.
Speaker:Wow.
Speaker:And it's happening.
Speaker:Lightning fast.
Speaker:Lightning fast.
Speaker:And you know, when I see that happening, I think back to several topics that I think
Speaker:our listeners would be interested in.
Speaker:I all I know is back in the day, my radio days.
Speaker:I'll tell you this topic or, or this area, this discussion was
Speaker:probably one of the hottest topics we ever had in our meetings.
Speaker:Mm-hmm.
Speaker:And it's very controversial and I don't know if there is an answer.
Speaker:Okay.
Speaker:But you know, I, today I wanna talk about it, put it out there, see
Speaker:what you, and I think maybe producer Paul will pop in and let's see if we
Speaker:can help our small business owners come up with some ideas on this.
Speaker:Okay, so the whole topic is the topic of accountability and employee turnover.
Speaker:I will tell you, if I had one meeting, I had a thousand meetings in my career about
Speaker:those topics, and everybody has an opinion and everybody thinks they are the expert
Speaker:on accountability and employee turnover.
Speaker:And so it made for a hot discussion.
Speaker:But there's something I think of, I wanna start today with a, with an anecdote.
Speaker:Uh, this may or may not be true.
Speaker:I can't verify it.
Speaker:I am old, but I am not fourth century BC old.
Speaker:Okay.
Speaker:But I'm definitely not fourth century old.
Speaker:And this is how the story goes.
Speaker:Uh, famous anecdote, ancient Chinese history.
Speaker:You've heard of Sun Sue, you know, the renowned strategist, author, art of War.
Speaker:Well, he claimed that he could train anyone to follow military
Speaker:commands, so his King, king.
Speaker:Challenge them.
Speaker:Demonstrate your expertise by training the royal concubines.
Speaker:Yes.
Speaker:The women.
Speaker:So Sun divided them up into two groups, 90 each, two companies.
Speaker:He appointed the King's two favorite concubines as company commanders.
Speaker:Okay.
Speaker:So he, he trained them.
Speaker:He explained some simple commands When the command is given to face, right, you
Speaker:turn right command to face, left, you turn to the left command to about face,
Speaker:you turn around, command to face front, you go back to your original position.
Speaker:Pretty simple, right?
Speaker:And then he verified like any good general would.
Speaker:Do you understand the instructions?
Speaker:Well, they said, sure, but when he gave the commands, they just giggled.
Speaker:Well, sun Sue then re-explained that if the instructions are not clear and
Speaker:not followed, it's the General's fault.
Speaker:So he repeated his instructions and he asked once again, were they clear,
Speaker:and then he repeated the commands.
Speaker:Once again, the concubines failed to show any.
Speaker:Interest in following orders.
Speaker:They giggled, they laughed.
Speaker:Sun Zu then stated that if the instructions are clear, but
Speaker:the orders aren't followed, it's the commander's fault.
Speaker:In spite of the King's protest, sun Zu had two company commanders
Speaker:executed as military law required, so he appointed some new commanders.
Speaker:The remaining concubines perfectly executed all commands.
Speaker:Sun Zu then told the king, the troops are now properly trained and ready for
Speaker:inspection, but the king at that point had lost his two favorite concubines.
Speaker:He declined to review, okay?
Speaker:But he was impressed enough with sun sue's discipline and
Speaker:commitment to military principles.
Speaker:He made him a general, okay, so how about that?
Speaker:Ever heard that story Leah?
Speaker:I have not heard that story.
Speaker:And that is just a template of information, especially in these times
Speaker:and the things that we're talking about and accountability and Oh wow.
Speaker:Where do you begin?
Speaker:Des, this is fantastic because honestly.
Speaker:To pull the bandage off.
Speaker:How do you take a bandage off when had had small kids?
Speaker:Small kids, just that sucker
Speaker:and.
Speaker:It's well, clearly, uh, sun Zu made his point.
Speaker:Uh mm-hmm.
Speaker:Strict discipline, uh, clear chain of command and clear
Speaker:consequences are essential.
Speaker:So, can I update this now?
Speaker:Maybe you've heard of Jack Welsh, you've heard of the former ge, CEO.
Speaker:Yep.
Speaker:Pretty, pretty famous guy, wrote 10 books and was on TV every, he
Speaker:was the, the hero back in day when I was running the radio stations.
Speaker:He was the guy you had to emulate.
Speaker:He came up with what he called the vitality curve.
Speaker:Maybe you remember this.
Speaker:It was the 20 70 10 system requiring his managers every year to rank the top 20%,
Speaker:the middle 70%, and then the bottom 10%.
Speaker:Now, if you were lucky enough to be in the top 20%, you got promotions and
Speaker:rewards If you were in the middle 70.
Speaker:Well, you were developed, you were given training, you were given,
Speaker:uh, accolades, praise, et cetera.
Speaker:Mm-hmm.
Speaker:But the bottom 10%, Leah, the bottom 10%, what do you think happened to them?
Speaker:Ooh.
Speaker:It sounds like they didn't get the Ginsu.
Speaker:Yeah, they got.
Speaker:They got last prize fired.
Speaker:Okay.
Speaker:They were called underperformers, and every year the bottom 10% got fired.
Speaker:Okay.
Speaker:So even if everybody achieved ev, if everybody overachieved on goals,
Speaker:what you're telling me is, yeah, you don't wanna be in that bottom 10%.
Speaker:Right?
Speaker:So let's say, here's an example.
Speaker:Let's say the team you were on had a great year, okay?
Speaker:And you just blew everything out, except you were in the bottom 10%.
Speaker:See you later hit the road Jack.
Speaker:And, and from what I learned and, and studied over the years with
Speaker:this, he was serious about this.
Speaker:And at the time I remember a lot of businesses emulated him.
Speaker:Uh, I will tell you what, I'll be honest, in our management team
Speaker:meetings, this came up fairly often.
Speaker:Should we do this?
Speaker:Should we do this stratification of 20 70 10?
Speaker:It was discussed, and I will tell you, we had a modified, we didn't
Speaker:have as severe as Jack, but we had a modified 20 70 10 plan, so I have
Speaker:a little bit of experience with it.
Speaker:So that's kind of the updated sun, isn't it?
Speaker:He is his, uh, he was taken seriously.
Speaker:Dennis, I wanna know, I wanna know what was the modified version?
Speaker:Was it somebody that just was the bottom not achieving their set goals?
Speaker:That you had goal, was it?
Speaker:Yeah.
Speaker:Correct.
Speaker:We didn't, we didn't actually stratify 20 70 10, but we did
Speaker:make a commitment to ourselves.
Speaker:Okay, that we would look at the, the lowest performers at the end
Speaker:of every year and make decisions, and I'll tell you why we did that.
Speaker:And maybe some of our business owners can identify with this.
Speaker:You can make all the speeches you wanna make about accountability
Speaker:and about consequences.
Speaker:What.
Speaker:The way you're evaluated by your team is what you do, not what you say.
Speaker:And my management team was a pretty sharp bunch of people.
Speaker:Thankfully I needed every one of them.
Speaker:And they agreed that the standard, the standard that you set by keeping the
Speaker:lowest performers becomes the standard for your company because you are allowing
Speaker:them as management, as ownership.
Speaker:You're allowing them to stay there.
Speaker:And everybody knows they're not performing everybody.
Speaker:Okay, so
Speaker:back to song two.
Speaker:Why did he not just get, get rid of the bottom 10?
Speaker:Okay, so there's 90 on each side, so you're getting rid of the, the, the worst.
Speaker:It's like you were the worst and you were the worst on each side.
Speaker:He, he got rid of the worst leaders.
Speaker:So based on that Dennis...
Speaker:That.
Speaker:I'm glad you pointed that out, Leah.
Speaker:That's an important point, isn't it?
Speaker:Who, who, maybe Jack Welsh had it all wrong.
Speaker:Maybe the people who were leading these poor performers should have been fired.
Speaker:How about that?
Speaker:Mm-hmm.
Speaker:And I don't know.
Speaker:I don't recall in the literature at that time.
Speaker:I don't know what he did with the managers.
Speaker:Did he also, I will bet you this, I'll bet if I did a little digging, I could
Speaker:find this out, but I'll bet you he also ranked his managers, his leaders,
Speaker:and I'll bet the, yeah, I bet the bottom 10% of them were cut as well.
Speaker:Okay.
Speaker:You, you would have to, to be consistent, wouldn't you?
Speaker:You'd have to.
Speaker:He'd would have to, I'm thinking about hesitant.
Speaker:Some businesses are to do this and I recently was talking to a businessman
Speaker:who said, uh, we just can't get rid of the lower performers because
Speaker:it's so hard to fill their spot.
Speaker:And I, that blew my mind because.
Speaker:Like if you can't find someone to work in your industry, that's
Speaker:better than your lowest performer.
Speaker:That, yeah.
Speaker:That begs a whole bunch of questions.
Speaker:Well, it does.
Speaker:And you know, I have this notion, I think we've talked about it on here
Speaker:before I. If not, we certainly will.
Speaker:I believe the responsibility of the leadership is to create a magnetic
Speaker:workplace, a sticky workplace that people don't wanna leave.
Speaker:And unfortunately, when someone does, which is rare, you
Speaker:have a long list of people.
Speaker:That are highly qualified, that want to come to work for you because
Speaker:you are the workplace of choice.
Speaker:Okay?
Speaker:Right.
Speaker:You are the workplace of choice.
Speaker:And you know what?
Speaker:I've got a whole manual on that because my management team made me
Speaker:sit down one day, several days and actually mapped that out, Leah.
Speaker:We mapped out what does it take to become a workplace of choice.
Speaker:And I'm not saying we were the icon of it or that we, you know, but I'll tell
Speaker:you what, we did a pretty good job.
Speaker:And how do I know that?
Speaker:'cause the numbers back me up on that they support that we were the place
Speaker:everybody wanted to come to work.
Speaker:So, you know, when I hear a owner manager say, well, nobody wants to come here.
Speaker:I, I'm sorry.
Speaker:That's on you buddy.
Speaker:That's on you.
Speaker:I agree.
Speaker:Okay.
Speaker:If you can't or there's something wrong with the position you're hiring for,
Speaker:that's, that's the other possibility.
Speaker:Exactly.
Speaker:Maybe there's a problem with the job description.
Speaker:Maybe there's a compensation problem.
Speaker:There could, but that's still on the leader.
Speaker:All of that's under the control of the leader, correct?
Speaker:Yeah, for sure.
Speaker:I mean, think back to the concubines and i, I ca I gotta go back to them because
Speaker:if they would've failed again, okay, then he kills the next two, and then again,
Speaker:and then the next two, well, eventually you're not teaching them, right?
Speaker:They don't understand it.
Speaker:They're saying something that, so same thing with staff.
Speaker:There comes a point where if you can't find the right people
Speaker:and they're not doing it, you're either, either the position is
Speaker:bollocks or how your training is.
Speaker:Yeah.
Speaker:But at the end of the day, this, this was a hard pill for me to
Speaker:swallow in my young management days.
Speaker:You know, I came with all the excuses that we all come with.
Speaker:Mm-hmm.
Speaker:Oh, it's the economy.
Speaker:Oh, I can't find the right people.
Speaker:Oh gee wiz.
Speaker:They just weren't, uh, we, we mishired, they weren't the right fit for us.
Speaker:You know, I had my book of excuses, I'm embarrassed to say.
Speaker:I had my book of excuses and I used them liberally until that day, and
Speaker:I guess everybody, well, maybe not everybody, but people that hang out
Speaker:and do well in business, find out there's nobody coming to rescue you.
Speaker:It's all about you, okay?
Speaker:It's your decision, it's your training, it's your onboarding,
Speaker:it's your accountability system.
Speaker:It's all about you.
Speaker:There's nobody coming.
Speaker:Yeah.
Speaker:Okay.
Speaker:There's no rescue.
Speaker:Are you familiar with that?
Speaker:Have you observed that?
Speaker:Seen it, felt it?
Speaker:Oh, for sure.
Speaker:Or you magically think.
Speaker:Something's gonna happen, something's gonna change.
Speaker:I've seen it happen with people working in a position and they're
Speaker:hanging on, hanging on, and they should have been let go a long time ago.
Speaker:Somebody else leaves and so then all of a sudden they're the only game
Speaker:in town and just by default, they end up getting a couple of clients
Speaker:and then it kind of clicks for them.
Speaker:But how long do you wait for that?
Speaker:I've had a guy, yeah.
Speaker:Well I had, that's a good question.
Speaker:I had a guy when I was my very first sales job.
Speaker:Uh, I actually got him the job.
Speaker:They needed somebody, uh, uh, else to come in and I recommended this guy.
Speaker:And he's a good guy.
Speaker:Yeah.
Speaker:He came in and they gave him, and in those days we worked off what's
Speaker:called a countless, you know, they gave you a book of business.
Speaker:A list of business, okay.
Speaker:Yeah.
Speaker:And my list of business was the freaking phone book.
Speaker:That was my account list.
Speaker:Okay.
Speaker:And I had to go out and, you know, hustle, everything I could get.
Speaker:They handed him a, an active booking list of business and he was not.
Speaker:Working.
Speaker:The guy was playing golf every day and I was embarrassed because I recommended him,
Speaker:but I'm saying, wait a minute, hold on.
Speaker:Why here I'm busting my ass.
Speaker:And this guy is playing golf and he's got this list just
Speaker:bill away doing very nicely.
Speaker:And I said...
Speaker:He had pictures of who?
Speaker:He had pictures of who?
Speaker:Had what?
Speaker:He must have had pictures of somebody.
Speaker:Yeah.
Speaker:I, I don't know what he had, but Leah, that set the standard.
Speaker:For performance or non-performance.
Speaker:Okay.
Speaker:Yeah.
Speaker:He, he was willing to just sit there and let this thing bill, whatever it
Speaker:billed, and he didn't work it, he didn't care if it went up, down, or sideways.
Speaker:He, you know, I, I, that, that's, that's a terrible feeling if you're on a team
Speaker:and you know that there are several people that are not pulling their load
Speaker:and there's nothing happening to them.
Speaker:Hmm.
Speaker:But that comes up.
Speaker:I, I, I, I'm, I'm jumping in now.
Speaker:Oh, alright.
Speaker:There he is.
Speaker:Producer Paul.
Speaker:How are you?
Speaker:You knew it was coming, so, you know,
Speaker:you were lurking.
Speaker:You were lurking.
Speaker:I was hoping it would come.
Speaker:Yeah, well of course.
Speaker:So I, listening to that and I agree regarding, you know, if
Speaker:they're not pulling the load that they're supposed to be pulling,
Speaker:there's something wrong with that.
Speaker:And, and, and going back to the managers and, and everything, the
Speaker:leadership team, it's on them.
Speaker:But my question is, with the structure, the 27 10, does that
Speaker:not create a fear-based compliance rather than genuine engagement?
Speaker:Good question.
Speaker:Leah, what do you think?
Speaker:Well, I think that.
Speaker:I don't like the idea of just firing someone outright because then it's
Speaker:giving, like, you know, if you're the bottom 10 and you just get rid of them.
Speaker:I don't think that that shows any, uh um.
Speaker:Opportunity for training.
Speaker:Any opportunity for the managers to do better with this person?
Speaker:I think that there should be consequences.
Speaker:And I think that a lot of times people are afraid to give consequences 'cause
Speaker:they don't wanna lose these people just because they're placeholders.
Speaker:And it depends if a manager is trying to create a kingdom of their own right.
Speaker:And that, and we've, we've all seen that happen, but.
Speaker:Paul makes a great, a great point.
Speaker:You don't want people scared 'cause they're gonna leave.
Speaker:Even your top performers are gonna leave.
Speaker:Well, hey, look at it this way.
Speaker:Uh, everybody knew the rules.
Speaker:The rules weren't promulgated at the end of the year.
Speaker:Everybody knew going into the year.
Speaker:If they ended up below that line, they're going.
Speaker:Well, that, that's fear.
Speaker:And, and, and, and, and that's, that's fear based.
Speaker:And it also talks, goes to the, the idea earlier of why are
Speaker:people not wanting to work here?
Speaker:I don't wanna go somewhere where I feel fear.
Speaker:But, you know, let's flip that, Paul.
Speaker:Um, it's also accountability and the, the top performers, your top people.
Speaker:Okay.
Speaker:They say thank you, thank you for doing that.
Speaker:You're honoring us by taking out the people who are pulling us down.
Speaker:So there's two sides to that, of course, it's fear-based.
Speaker:And a lot of people would say, well, you know, we don't wanna scare these people.
Speaker:Jack Welsh didn't give a damn.
Speaker:He wanted, he wanted good results.
Speaker:And if you look at,
Speaker:oh, whoa, hold on.
Speaker:But he, he did.
Speaker:But did he, did he not care because he's so high up in the organization
Speaker:that he doesn't know these people?
Speaker:If he doesn't know somebody, you can't, you don't have a connection to them, and
Speaker:that's the thing that that's missing as well, is also how do we honor the whole
Speaker:person while still holding high standards?
Speaker:Well, Jack Welsh didn't try to figure that out.
Speaker:He came up with this system and his.
Speaker:He felt his responsibility was to be accountable to the shareholders of
Speaker:GE and to Wall Street if you go back.
Speaker:Okay.
Speaker:But wasn't being accountable if you get rid of someone, let's say
Speaker:the whole team made their goals.
Speaker:Yeah, so it was 10 people, but the last, the, the, you know, bottom 10%,
Speaker:those last two guys, they made their goal, they achieved, they overachieved.
Speaker:So you're gonna cut them loose, they're gonna go somewhere else.
Speaker:That's not a benefit to your business.
Speaker:Now, maybe being the bottom two, maybe there is some other form of, I don't
Speaker:like the word punishment, but some other form of, of, uh, okay, this is,
Speaker:this is what happens when you're in the bottom 10%, but getting rid of them.
Speaker:Well, you know.
Speaker:Yeah.
Speaker:Okay.
Speaker:Well, you know how it's normally done.
Speaker:I don't know how they do it in Canada, but in the US there's
Speaker:a thing called API P. Okay.
Speaker:Okay.
Speaker:And when you get put on API P, that is tantamount to your exit plan, okay?
Speaker:Okay.
Speaker:Uh, very few people ever survive a performance improvement plan.
Speaker:Okay?
Speaker:And it's given to you so that you have evidence when the lawsuit comes that
Speaker:you justifiably fired this person.
Speaker:Okay?
Speaker:That doesn't work.
Speaker:Okay.
Speaker:It's, it sounds nice.
Speaker:Performance improvement plan, it's baloney.
Speaker:It doesn't work.
Speaker:Okay, so.
Speaker:But why doesn't it work?
Speaker:It's because people don't follow it.
Speaker:Like the people in charge, they're not committed to them.
Speaker:If it's truly a performance improvement plan, it doesn't work.
Speaker:It does get rid of people because I would, I don't know what the percentage
Speaker:is, but it is a high percentage of people who get put on a PIP that
Speaker:leave, that get fired or leave, okay?
Speaker:Mm-hmm.
Speaker:So, I mean, so this really some real ethical questions here.
Speaker:How severe do consequences have to be to get people's attention?
Speaker:I mean, sun Sue got their attention.
Speaker:Jack Welsh got their attention.
Speaker:Are there, how severe?
Speaker:Maybe that's the only answer.
Speaker:What do you got?
Speaker:Yeah, I mean, have you've ever, if you, again, I know you have Dennis, if you've
Speaker:worked on a dream team for everybody.
Speaker:Pulling.
Speaker:Everybody wants to overachieve.
Speaker:Everybody sees the vision, they own it.
Speaker:You know, they're breathing it and you can just tell there's nothing like it.
Speaker:But if you on a team.
Speaker:Where you're the only one, or you're of a handful and the rest think
Speaker:that they're working for a union.
Speaker:And I think unions have had their place and unions have done good things
Speaker:in in the last a hundred years, but we're now a more educated people.
Speaker:Now We are, you know, we're more accountable for ourselves individually,
Speaker:and to have this mindset that I am owed.
Speaker:It's like talking about basic income.
Speaker:Are you really owed your job?
Speaker:Are you really owed what you're doing?
Speaker:That goes down a rabbit hole and I'm gonna keep talking 'cause Paul's
Speaker:gonna interrupt me right away.
Speaker:I can just see him.
Speaker:He's edgy.
Speaker:He's
Speaker:spew some wisdom.
Speaker:Everybody waits for me to stop.
Speaker:That's, that's a problem.
Speaker:That's a problem.
Speaker:Uh, you can't hear me.
Speaker:That, that, that's a problem.
Speaker:You've hit some, you've hit a nerve with me here, Dennis.
Speaker:You've hit a nerve.
Speaker:Whoa.
Speaker:Good nerves.
Speaker:We like nerves.
Speaker:I, when leaders adopt that, that rule.
Speaker:They often forget that people aren't static percentages.
Speaker:They're dynamic, they're, they're growing, they're evolving humans, and
Speaker:it's lazy leadership to think pruning the 10% is the path to greatness.
Speaker:It, it, it, it's, it's, it's the hard worthy work in growing the
Speaker:middle and asking the upper 20% to teach the rest of the people.
Speaker:We as humans are connected to each other.
Speaker:Why would we just go, ah, 10% gone.
Speaker:See you later.
Speaker:That's called laziness.
Speaker:Well, Jack Welsh called it effectiveness.
Speaker:Uh, he has
Speaker:good for him.
Speaker:I think he, I don't think he's a, I don't think he's a great CEO.
Speaker:Never did.
Speaker:Remember this, Paul, the middle group, which was the largest group,
Speaker:they were trained and developed.
Speaker:They weren't, they were trained.
Speaker:They wanted them, they were the high potentials to move into the top group,
Speaker:but so they were given, you know,
Speaker:What about the 20%?
Speaker:Those that 20% should be teaching, not the, not the 70 to 20%.
Speaker:Well, I mean, that's another philosophy
Speaker:and that No, that's not, no, no, no, no.
Speaker:It is another, it's another philosophy, philosophy, but it's should be tied
Speaker:into this 20% because that's what I go back to what I said earlier in terms
Speaker:of Jack Welsh being so high up, he doesn't see the human side of things.
Speaker:And he honestly didn't care.
Speaker:He was there to run the business and he let his management
Speaker:team run that side of it.
Speaker:He thought it was pretty effective.
Speaker:You know, he, you know, the other thing, Paul, is when you have arbitrary
Speaker:standards, so let's say, you know, person A, uh, and person B are fairly similar
Speaker:in their performance, but yet person A. Has maybe kissed up a little more to the
Speaker:boss or has, you know, you know, you talk about we're human, that's a human thing.
Speaker:We kiss up to people, that's what we do.
Speaker:Okay?
Speaker:And all of a sudden it comes time to let someone go and either one of them
Speaker:should or could be let go, but person A stays and person B goes because
Speaker:there's an arbitrary unmarked wine.
Speaker:Okay?
Speaker:Where the, the system that Welsh had was definitive.
Speaker:There was no question about it.
Speaker:That's the way it goes.
Speaker:I'm not saying you shouldn't have standards, my God,
Speaker:you have to have standards.
Speaker:You have to have standards, otherwise you have loosey goosey, crazy people
Speaker:just doing whatever they want.
Speaker:The, you know, the inmates are running the asylum.
Speaker:But what about two people do, I mean, he, obviously, there was a shock value
Speaker:to what he was trying to accomplish here.
Speaker:For, sure!
Speaker:I've trained, I've trained, uh, for teams.
Speaker:There was one sales team and the top performer.
Speaker:Was a buddy of the guy he was working for, so that everybody
Speaker:knew that and that was fine.
Speaker:And the, the, the person, the owner would've swore up, down,
Speaker:sideways on a stack of Bibles that he did not let that influence him
Speaker:at all, but of, of course, did.
Speaker:And when you knew as a trainer.
Speaker:When you were able to see this was when new people were coming in and Yes, as
Speaker:the top performer, he was asked to take them out, take them out on calls, and the
Speaker:times that he would take new people out.
Speaker:Where did, well, first we have to pick up my dry cleaning and
Speaker:then we gotta have a haircut.
Speaker:And I, you know what?
Speaker:I'm getting fitted for a new suit and I'm doing this.
Speaker:And it was a joke for everyone on that team, including the
Speaker:owner who allowed it because.
Speaker:He is bringing in all this business, but do you think it lasted and do you
Speaker:think that a lot of people were, uh, ended up getting punted because they
Speaker:couldn't achieve that because they didn't have either the relationship with
Speaker:the owner or with long-term clients?
Speaker:I mean, what you just described is happening in every business probably
Speaker:in North America where teachers pet.
Speaker:Is given special treatment because the owner, the boss, is afraid of the
Speaker:revenue loss if that person goes away.
Speaker:Right?
Speaker:Right.
Speaker:They're sacred cows and is that fair to the other people?
Speaker:Is that, that's a whole nother issue then that you know, that's
Speaker:not, that's not even on this issue.
Speaker:We're talking about people who are favored.
Speaker:Not because they are actually the best at what they do, but because
Speaker:they have the ear of the boss.
Speaker:How about that?
Speaker:But that also speaks, that also speaks to producer Paul's comment that, okay, so
Speaker:the top 20%, that 70%, and then these poor number 10, 10% people, whose fault is it?
Speaker:Who's taking responsibility?
Speaker:Who's making sure?
Speaker:It's the boss always.
Speaker:So no, the 20%.
Speaker:With all respect to Paul, you know, if I'm one of these 20, if I'm one of those
Speaker:20% okay, and I'm kicking butt and making that team look good, I don't really give
Speaker:a rip about training the bottom 80%.
Speaker:That's not my job.
Speaker:It's the boss's job to do that.
Speaker:It's not my job.
Speaker:It's my job to create revenue.
Speaker:Now if you have a friend that you wanna mentor or if you have a
Speaker:personal relationship, I get that that happens all the time too.
Speaker:But to assign to the 20% the, the mandate to train and develop the other 80%.
Speaker:I don't go with that.
Speaker:No go.
Speaker:But if those bines didn't like the, the, the next two, number three and
Speaker:number four, if they don't like them, must like going, wait, a, they, I
Speaker:know how we get rid of these women.
Speaker:Then of course that comes down to being, I'm not gonna go there.
Speaker:But that this comes down to, uh, being a lazy owner.
Speaker:Yes.
Speaker:Because if you should be as an owner, you should.
Speaker:If, if, then here's the big thing.
Speaker:If you want to scale, if you want to grow, yeah, and some people
Speaker:don't and that's just fine.
Speaker:Correct.
Speaker:Nothing wrong.
Speaker:That's correct.
Speaker:But if, if you wanna scale, you have to let that go.
Speaker:You have to say, okay, if you're going to work here, you're gonna be
Speaker:required at some point to teach others.
Speaker:Point blank.
Speaker:That's a standard that we have.
Speaker:Now there's also what's called a, a deliberately developmental
Speaker:organization, the D-D-O.
Speaker:Yes.
Speaker:And with that, do you, do you know what that is?
Speaker:I've heard of it.
Speaker:Okay.
Speaker:I, well, I, I actually did that at the radio station.
Speaker:You did?
Speaker:Awesome.
Speaker:I didn't know the, I didn't know the, the language or the
Speaker:lingo, but that's what I did.
Speaker:Okay.
Speaker:I actually had the experienced people mentor the younger people.
Speaker:Absolutely.
Speaker:So within DDO, it, it, it basically states that if you do it all the way out, I
Speaker:mean, everything is, you really create a place where you can't suck up to the boss.
Speaker:Everybody is holding each other accountable.
Speaker:It's not just, it's not a hierarchy, right?
Speaker:It becomes the standard that everybody's calling each other out saying, Hey,
Speaker:if you Dennis or my boss, there'd be no fear for me to come to you and say,
Speaker:Hey, I, I think you're crossing a line.
Speaker:That's the, that's, that is a powerful organization.
Speaker:You can't screw with that organization.
Speaker:There are of what percent of organizations.
Speaker:Would you estimate or maybe you know, the exact number are in that group?
Speaker:Uh, less than 1%.
Speaker:Yeah.
Speaker:And, and I say that because it, it is, it is a, i I do have case studies
Speaker:on, uh, companies who use DDO and it is amazing what they can do.
Speaker:It is scary.
Speaker:Amazing.
Speaker:The challenge comes down to, and, and Patagonia is actually one of them,
Speaker:that it doesn't do it all the way, but they're, they're on the edge of full DDO
Speaker:studied.
Speaker:It is a hard thing to do.
Speaker:Yeah.
Speaker:But they are the ones who make change in the world and in business and in culture.
Speaker:But Boomer, for the people that aren't going to do that, and let's bring
Speaker:this now back down to our listener.
Speaker:Okay.
Speaker:Uh, most of our listeners aren't gonna do that.
Speaker:They're not gonna, oh, okay.
Speaker:Now, now I'm gonna, you're inviting me into this.
Speaker:You're inviting into this.
Speaker:They're
Speaker:not gonna do it.
Speaker:Okay.
Speaker:No, but, but if I'm a business owner and I don't hold a flame that
Speaker:maybe I'm not going to do that.
Speaker:But no, I mean, at that level, I mean at level.
Speaker:Okay.
Speaker:Still.
Speaker:Yeah.
Speaker:But if I don't hold a flame that big, why the heck are you in business?
Speaker:Okay.
Speaker:That, well, again, that
Speaker:is a
Speaker:whole nother topic.
Speaker:Okay.
Speaker:I'll zip it.
Speaker:I don't wanna go there, but, well, here's where I do wanna go.
Speaker:Okay.
Speaker:I think we have an obligation now after opening this can of worms to leave
Speaker:our listeners with something of value.
Speaker:We've had an interesting discussion.
Speaker:I think.
Speaker:Oh yeah.
Speaker:What can we, what the heck can we share with them right now?
Speaker:Right here, right now.
Speaker:What about your accountability program?
Speaker:Number one, should you have forced turnover like Jack Welsh did?
Speaker:Forced turnover.
Speaker:Everybody knows the rules.
Speaker:Forced turnover should you, uh, enforce rules almost under the pain of death.
Speaker:Similar to our son, Sue.
Speaker:You know, obviously
Speaker:I, I think that there should be forced consequences, Dennis forced, ah,
Speaker:what
Speaker:consequences, what does that mean?
Speaker:What does that mean?
Speaker:Well, that, that, and, and they have to be specific and they have
Speaker:to be organizationally specific.
Speaker:I actually coached one manager at a, at a company that I was associated
Speaker:with years ago on a program to make sure that people were goal-driven
Speaker:and they knew what they had to do.
Speaker:And, and his response was, we, we actually would never do that.
Speaker:And they ended up with all this dead wood that were unteachable,
Speaker:and also that top 50%, the high achievers were sick about it.
Speaker:So you have to have consequences, but the consequences should
Speaker:begin and end with the leader.
Speaker:Dennis, I'd worked for you in a heartbeat because you would've
Speaker:owned everything you wanted done.
Speaker:Tried.
Speaker:Certainly not perfect, but we certainly had the intent and went
Speaker:through the motions for sure.
Speaker:So.
Speaker:Not yet, uh, because I'm gonna say we've got the three of us on here
Speaker:yet, and Paul's good right now.
Speaker:Bottom 10% for technical ability, that would be me.
Speaker:I'd be out of there.
Speaker:Bottom, bottom, uh, 10 for top 10%.
Speaker:Like everybody has a, a benefit and, and things that they're great at and
Speaker:things that they're not so great at.
Speaker:Top science guy, that's Dennis.
Speaker:But does that mean that the, the stories I bring in aren't good, Paul?
Speaker:We couldn't do it without you popping in and challenging us.
Speaker:So you have to recognize those things and make them part of
Speaker:the embroidery of the business.
Speaker:I know Dennis would, would cut me loose if, you know, if I
Speaker:didn't keep gesturing from the sororities, I know I'd be outta here.
Speaker:Oh, Leah, I'm not cold-hearted.
Speaker:That's why Wizard Academy sponsors us because they know the three of us are
Speaker:about making small businesses better and challenging people to think.
Speaker:Now you go Paul.
Speaker:Well, they certainly do that at Wizard Academy, don't they?
Speaker:You've never, you never walk away from there without having some new thoughts.
Speaker:No, that's, that's very true.
Speaker:Your head just kind of, but um, you know, there, there's several
Speaker:things that I'd recommend it.
Speaker:One, I would start with shared commitments.
Speaker:You don't have rules, but you have commitments to each other.
Speaker:Mm-hmm.
Speaker:And they're non-negotiable of how we treat each other or how we go about things.
Speaker:I mean, this is the way we do things, period, at the end.
Speaker:And, but you also have to share what that looks like because if you don't, if
Speaker:if the boss or the managers or leaders or whoever don't share those things, a
Speaker:culture, a subculture is being created.
Speaker:You have to take ownership of, of all that.
Speaker:Excuse me.
Speaker:And the other thing, one of the biggest things, and this takes
Speaker:some guts, but it's extremely powerful, is make sure that feedback
Speaker:alignment and doesn't create an attack on somebody.
Speaker:Oh, I like that.
Speaker:Start to those two things in and those,
Speaker:yeah, they sound easy, right, Paul?
Speaker:And Yeah,
Speaker:exactly.
Speaker:They sound easy, but are they, are they easy?
Speaker:Mm. You've been in the arena, you've been out there, you
Speaker:know that those are not easy.
Speaker:Those are not easy at all, and that is why so many small businesses
Speaker:have this lurking blind spot.
Speaker:I loved what you said about subcultures.
Speaker:Beware of your subcultures.
Speaker:I don't care how hard you work on your main culture, and you may
Speaker:work hard on it and do a great job.
Speaker:Beware of the subcultures, that's where you're gonna catch it.
Speaker:If you're not aware of them and if you don't have a way to fix
Speaker:that, to align that beware sense.
Speaker:You're talking about blind spots, Dennis, and that is why you and I offer a free
Speaker:60 minute opportunity for our listeners.
Speaker:Get ahold of us, no charge, free to, so that we can examine blind spots
Speaker:or where they perceive there is a blind spot so we can help there.
Speaker:Business.
Speaker:Oh, that is a very important part of what it is that we're doing and we
Speaker:are experts at findings and blind spots and.
Speaker:Thought you were gonna say finding sacred cows and shooting them.
Speaker:And I was gonna go, Dennis, don't say that.
Speaker:Well, now I said it.
Speaker:I do have a little article that I wrote once about assassinating your sacred cows.
Speaker:So I don't know, we're talking too much about assassin.
Speaker:I don't know.
Speaker:We're talking too much about assassinations here today.
Speaker:We need to, we're gonna be mis stinking.
Speaker:We're not really that harsh.
Speaker:You stink.
Speaker:I.
Speaker:Uh, we're near the end of our time.
Speaker:I can tell because you're.
Speaker:It's a great discussion.
Speaker:It's a healthy discussion.
Speaker:You need to have that discussion inside your own walls and, and
Speaker:Paul's remarks, you know, within the bounds of psychological safety.
Speaker:Of course, he always will warn us and advise us on that, and he should.
Speaker:Okay.
Speaker:Because that's what he knows best.
Speaker:But you know, at the end of the day, you gotta run the damn business
Speaker:and you gotta have accountability and most businesses don't.
Speaker:So come up with an accountability system that is Sure it is certain.
Speaker:Right.
Speaker:Leah, you said that certain consequences, okay.
Speaker:Yeah.
Speaker:Not sometimes consequences.
Speaker:Certain consequences.
Speaker:Maybe not as bad as our sun shoe and our, our, our Jack
Speaker:Welsh, but certain consequences.
Speaker:Any last word, Leah?
Speaker:Paul, any last words before we say goodbye?
Speaker:I think you summed it up Great.
Speaker:Paul?
Speaker:I, I, I have one, one more thing is, please.
Speaker:I do believe in consequences and I do believe in accountability.
Speaker:Just FYI.
Speaker:Oh, okay.
Speaker:That's all we were, we were worried there for a second.
Speaker:I'm glad you said I get it.
Speaker:We gotta be careful, Dennis, he's gonna start muting us.
Speaker:Oh yeah.
Speaker:I keep reremember.
Speaker:I have to keep remembering.
Speaker:He controls this thing.
Speaker:So, um, you know, absolutely I'll behave.
Speaker:But I am done behaving for this episode of Connect and Convert.
Speaker:This is your Sales Accelerator podcast.
Speaker:We hope this discussion today gave you some ideas, uh, stirred up
Speaker:some controversy, stirred up some thoughts, uh, challenge yourself.
Speaker:Go out there and fix that.
Speaker:Make sure you got that right.
Speaker:It's important.
Speaker:We'll see you next time on Connect and Convert.