In this transcript, Caleb Taylor (Thrive correspondent) and Clay Clark (speaker and business coach of choice for Hewlett-Packard, Maytag University, and more) discuss the importance of managing your team to succeed on Thrive15.com, the business coach and sales training program.
Caleb: All right. Let’s move to business coach step number eight here.
Caleb: Install accountability metrics.
Clay: I love it.
Caleb: We got a notable quote over here from W. Edwards Deming, one of the most influential …
Clay: Real quick. Deming, if you guys get a chance to Google Deming, he totally revolutionized the way we do quality and he is probably the father of quality control and we use his systems in business coach. People who have big factories and industrial things where they have to build duplicatable products; automobiles, computer parts, whatever, people love Deming and his quality systems.
Clay: He’s famous for this. If you’re watching this, you don’t know who he is, unbelievable power behind that quote.
Caleb: Good. What he says is, “If you can’t measure it, then you can’t manage it.” What does that mean?
Clay: Well, in a small business or any business coach, here’s what you do. You say … You want to quantify. You want to quantify, not qualify. Oh men, I hope this helps you guys. It rhymes, too, so it should be easier. You want to quantify and not qualify. I’m going to talk directly to you my friend. We have this videographer I’m talking to here. All right. If you’re editing videos and you can edit exactly 4.3 videos per week and the standard that we want as a team is 12 per week, then you’re off the standard. If we want 12 is what we need and you can do 4.3, then this equals boo. Boo, terrible. Now, 12 is what we want, 4.3 is what you’re doing.
Now, qualify is this stupid conversation. “Hey, video guy, how are you doing this week?” “I’m doing my best, trying to work hard, just trying to get things done. Working hard, doing my best, trying to just … I’m trying to get things done. Right now, I’m just trying to get a lot of things going on. I’m trying to …” You hear this a lot. It didn’t matter what business it is. If it’s a sales team, “I did my best. I’m working hard.” If you go to a construction job, “How are you guys doing on a job?” “We’re doing pretty good. Things are going okay. We’re trying to get caught up.” I could say that for any business in the world.
Clay: Quantifiable is where you say, “How many videos did you do this week?” and they say, “4.3” and we say, “Well, you needed 12.” Boo.
Caleb: You’ve set that system up with the editors, with the sales team. I mean, you have it on a big whiteboard for the sales team. You could walk in and see exactly how many calls each person has made, how many appointments they have set, how many deals they have closed.
Clay: I’m going to show you an example real quick just so you can see this. This is the best example I can give you. If this is Caleb, if this is Clay, and this is Dan, if this is a business coach sales floor, just an example, then I’m going to have the number of calls right here, the number of appointments right here, the number of deals right here, and I’m going to have the number of, let’s say, the number of mega deals if I was selling some big product. I would say, “Caleb made 101 calls, Clay made 11 calls, Dan made 121 calls. He set 5. He set 1. He set 7. He has 5. He has 0. He has 9. He has 2. He has 1. He has 3.” I can then quickly go in and say, “Well gosh, Caleb’s making a lot of calls.” As a number, our standard that we want is, we want 100 calls. More sales training videos are available on Thrive15.com.
Clay: I can say, “Good job, Caleb. Woohoo. You did a great job. Good job. Woohoo.” I say, “Clay, boo.” Then I walk in to appointments, if I say my appointments I want per day is 3, I can say, “Good job Caleb. Good job Dan. Boo.”
Clay: I’d say, “How many deals? Good job Caleb. Good job Dan. Boo.”
Caleb: We have this board right now in the office so that you don’t have to be monitoring us. You don’t have to pull up all our paperwork. You turn the corner, look in the room and you see exactly what everybody is doing.
Clay: It makes it great. You have to find a way to quantify. I went into a company … This is the kind of stuff that I’m probably a sick freak, some of you guys want to go to the beach on vacation, I want to go to this printing company for my vacation.
Clay: I go into this printing company, they’re in downtown Tulsa and he has SMART Boards up on every wall. There’s like 5 flat screen TVs at every room and you walk up and it shows everyone’s performance metrics updated every half hour.
Caleb: I love it. I love it, I love you, you business coach.
Clay: These guys make printers. He literally is like, “Well, yeah, Caleb made 5 printers last hour. He made 1. He made 7.” It shows it. There’s a guy who walks around all day with an iPad and he says, “How many did you get done? How many did you get done? How many did you …” This is all he does all day and it updates these bar graphs. The whole day it shows graphs. I’m not kidding. He has it set up where if you get to a certain level of like … It’s like a video game. If you get to a certain height in the bar graph, the printers per hour, then you get a huge cash prize. Everyday it’s like this. He does it for errors per unit. He does it for returns. It’s all quantified. It’s awesome.
Caleb: I love it.
Clay: That’s what gets me going. Think about this, some of you are going, “You’re a business coach nerd. You’re a nerd.” I agree, that it sounds like I’m a nerd.