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Having the Courage to Implement Long-Overdue Change
June 1, 2020 | By Neil Ducoff | No Comments
Last week’s blog post was about the importance of “resilience” — the ability to become strong, healthy, or successful again after something bad happens.
This week, I write about the “courage” to implement long-overdue change.
As the reopening begins, my biggest fear is that many salons and spas will reopen with the same flawed systems they shut down with. Throughout this crisis, I’ve been saying, “If your business wasn’t in good shape at shut down, it’s going to be tough when you reopen.”
Reopening and getting your business financially healthy requires a heck of a lot more than getting employees back on payroll, implementing safety protocols and rescheduling clients.
A house must be built on a solid foundation. If the foundation is weak, floors will sag, walls will crack, and the house will be unsafe. Simply put, if the foundation is weak, everything it supports is compromised.
The same principle applies in business. The only difference is that the foundation for a business is comprised of leadership, systems, financial accountability and culture.
If the mandated closing of salons and spas gave owners time to assess their companies and plot a better, more secure future, then this is one of the few positives to come out of this crisis.
Here’s my challenge to you: Every salon/spa business has room for improvement. It is my hope that, together, we can create a healthier, more profitable, more stable and more professional industry.
If you’re tired of the financial stress, staff turnover and employee drama, it’s time to change. Use the following checklist to guide your change process:
- They will leave if I change anything: Um, they’re leaving now because you didn’t change. You’re holding yourself hostage. The longer you avoid change, the more embedded the poor performance and behaviors become.
- Time to find out who quit and stayed: Building on the first bullet point, you cannot compromise your company because a few individuals are stuck in their ways. If they’re so resistant to change that they’ll influence others to resist too, it’s a classic case of “they quit and stayed.” Best to let them go and get it over with.
- Get your financial house in order: Profit & Loss Statement and Balance Sheet must be up to date. You must understand what every line item means. If you’re profitable, congrats. If you’re losing money, consider it a smack in the head to stop the bleeding.
- Elephant in the living room: Service payroll is, and always will be, the elephant in the living room. If your commission plan created an unsustainable payroll, it’s time to overhaul your compensation system. It’s time to pay for and reward the right performance and behaviors. Yes, I’m talking about Team-Based Pay. It works. There’s a lot to learn. TBP is a complete system and business model that grows a company based on team performance … not a percentage of what each service provider brings in. FACT: Tweaking commissions, even just a little, is a full-blown pay conversion. It’s time for comprehensive long-term solution. Download our FREE Team-Based Pay Fact Sheet here.
- You lead people and manage systems: The more systematized your salon/spa is, the more predictably it performs. At Strategies, we teach and coach what we call “The Four Business Outcomes.” The outcomes are productivity, profitability, staff retention and customer loyalty. To achieve the right outcomes, you need systems. To make systems work, you need teamwork. To create the highest levels of teamwork, read the next bullet point.
- Culture reflects leadership: Culture is one of those topics that receives massive amounts of lip service. Culture goes far beyond being friendly and helping out teammates. True teamwork is when everyone is pushing the company in the same direction. It’s when every employee is focused on achieving the company’s monthly goal and critical numbers. Teamwork is not about “how much did I bring in.” It’s about what did “WE” bring in to achieve the company/team goal. KEY: The culture of any business is always a reflection of leadership. Without leadership engagement, fairness and transparency, the result is always a toxic and dysfunctional culture.
Discover a better way to do business. Schedule a free coaching session here.