Latest / Crossroad Conversations with the Lewis Brothers / Ep. 85 - "How Do You Eat An Elephant? One Bite At A Time"
Transcript
- 0:00How do you eat an elephant one bite at a time?
- 0:02You got to shoot it first.
- 0:05Very few actually know what it means to have a game plan to do it one bite at a time.
- 0:11It's very easy to get over well because it's so much is coming at you.
- 0:15Sometimes you just got to quiet the noise and organize what's most important.
- 0:19The scoreboard, nobody is looking at, which is the problem.
- 0:24What you measure and you manage, it's not the end result.
- 0:27No, no, no.
- 0:28I need to, and we back into the numbers to know specifically this person has to make 58 outbound phone calls to schedule at least two appointments, of which one will show up.
- 0:38Checking your revenue number on the last day of the month isn't managing your business, it's reading the obituary.
- 0:46The goal is not the plan.
- 0:51Hey everyone, welcome to Crossroad Conversations with the Lewis Brothers, where we aim to share real stories about running a successful family business, working through adversity, and pouring back into the community that keeps our door open.
- 1:03We're your host, Matt, Shelby, and Taylor, and we bring you relevant local business advice and automotive insights that are sure to change the way you look at running a business.
- 1:12And maybe even throw in a plug for you to do business with us.
- 1:16Hey, welcome back to Crossroads Conversation with the Lewis brothers.
- 1:20And man, do we got a good one for you today?
- 1:22I'm excited about this subject.
- 1:23Yep.
- 1:24How do you eat an elephant?
- 1:26You guys have heard it before.
- 1:27One bite at a time.
- 1:28You got to shoot it first.
- 1:31You got to have the goal to shoot the elephant first, then one bite at a time.
- 1:35You know, I think a lot of people, or I know, a lot of people know that saying.
- 1:39And a lot of people could even recite it.
- 1:41But very few actually know what it means to have a game plan to do it one bite at a time.
- 1:48So today you're in luck.
- 1:49We're gonna unpack that, how we individually do that, you know, whether it's on a monthly basis, a yearly basis, or just everything thrown on your plate on a single day.
- 1:58How do you organize that and how do you do it one bite at a time?
- 2:02Absolutely.
- 2:02Hey, and if you didn't tune in last week, episode 84, we talked about Blockbuster.
- 2:07We're talking about the company Blockbuster.
- 2:09One time they had 60 million customers, 800 million in uh late fees every single year.
- 2:17And what happened to them and Kodak and Sears when they stopped listening?
- 2:22So that was a really cool one to unpack and see the little things about listening and not just going with what worked because it worked and not looking at what the future would bring.
- 2:31So that was episode 84.
- 2:32Check that out as always.
- 2:33You can check that out at Crossroad Conversations Podcast.com or wherever you get your podcast, and always check out our inventory, Lewis Superstore.com.
- 2:40Absolutely.
- 2:41Hey, what's in the garage today?
- 2:43I'm gonna bring you because it's the time of year when it's not too hot summertime, but it's got the good spring weather coming up.
- 2:49But the bronze appearance package bronco four-door, they are on fire.
- 2:55What's that built from?
- 2:56What does that look like?
- 2:56It's from an outer bank.
- 2:58So we start with a four-door hardtop outer banks full-size bronco, which has your vinyl or leather interior, the big screen, removable doors, removable hardtop.
- 3:08Then we lift it, then we put tires and wheels with a bronze um wheel on it, then bronze badges, the retro bronco badges on the side, the bronco badge on the front goes from white to bronze.
- 3:21It is a full package.
- 3:23We do it on every color that we have that's in that trim level, and it is absolutely on fire.
- 3:29One of the best looking retro new broncos that's been up there.
- 3:32There's a couple things that make that one work, and we've looked at them all and ordered them all.
- 3:36And one is the price point.
- 3:38Yep.
- 3:38So the price point, this thing comes in at$53,000 before we add all the stuff.
- 3:43So right now with employee pricing, it's a sub$60,000 price range with all those ads.
- 3:48But because it's outer banks, it gets the upgraded interior, big screen.
- 3:52But what I love is it gets the gloss black front grille, the painted to match fender flares, and we option it with the painted to match top.
- 4:01No, yeah.
- 4:01So it is so classy.
- 4:03I passed one this morning coming into work was the rapid red one.
- 4:06And I was like, dang, that thing looks good.
- 4:09We just sold.
- 4:10Um, so it's a great price point.
- 4:12It's great value.
- 4:13You know, it's not gonna have your most extreme locking differentials and the transfer case and the most extreme suspension.
- 4:22It will still off-road with the best of multiple vehicles.
- 4:25But that's why that one works.
- 4:26Yeah.
- 4:27Such a great rig there.
- 4:28Now, we're gonna get into core one here in a minute when we talk about the scoreboard, nobody's looking at.
- 4:33But before we dive into that, I got a question for each of y'all.
- 4:36And I want you to think about this.
- 4:37I'll say it, I'll give a couple pieces, then you guys can answer it.
- 4:40Because I think this will set the table for everything we're gonna talk about today.
- 4:44So, so my question for you guys is how do you organize and focus your team to accomplish one bite at a time?
- 4:52So, you know, the subject we're talking about today is, you know, how to eat the elephant, one bite at a time.
- 4:57That's easier said than done.
- 4:59And then as upper leadership and an executive level, you have got to teach your managers, okay, what does that look like?
- 5:06How do I actually organize and figure out what bite to take and how to stay focused on that instead of overwhelmed?
- 5:13We see person after person, including ourselves, until you know, a little bit of time got under our belt that it's very easy to get overwhelmed because it's so much is coming at you.
- 5:23You know, sometimes you just got to quiet the noise and organize what's most important.
- 5:27So, Shelby, why don't you answer first?
- 5:29Yeah, so I'll break that down in the way that I would do it.
- 5:31So, most importantly, you said quiet the noise.
- 5:33It needs to be in an area before the battle, before the war, before the business that you're in an area and we'll identify a couple key things.
- 5:41What needs to be completed?
- 5:43Yep.
- 5:43Right.
- 5:43So what's the task at hand, and there will be multiple of them.
- 5:46Then you prioritize what is most important now that I need to handle.
- 5:51And then the third is how will we handle that?
- 5:54Yeah.
- 5:54So we'll look and see what needs to be handled, what's the order they need to be handled, and how will we handle that?
- 6:00So we'll then it's kind of like their game plan.
- 6:02Okay, here's what we're gonna do, here's our audibles.
- 6:05And so then once they have that, then they can go and say, okay, I need to handle this because they'll be sitting there and so they'll be like, hey, so-and-so needs to talk to you.
- 6:12It's like, okay, hang on, do they or do they not need to?
- 6:14And is that ahead or below of my current task?
- 6:17That's right.
- 6:18That's right.
- 6:18I I would like to mirror that, but then also say a lot of times you have to find yourself that you have to go out.
- 6:24If you have a desk or something you always sit at, the people that are going to be waiting for you are gonna be there.
- 6:30So sometimes it has to be, hey, I have an audible that no one really knows about, but that I'm walking a lot and I'm going through getting my game plan together.
- 6:38I'm walking through service and double checking to see, hey, this is my game plan that you're going through and you're setting up this is the path that I need to take.
- 6:46Because as soon as you sit down the other, you better have your helmet on because it's coming at you full steam.
- 6:51The the important part here, and we're talking in an office area, but even if you're out in the field in construction or consulting or whatever it may be, the the important part is to identify before it happens an area you can go to.
- 7:06Okay.
- 7:07It doesn't have to be fancy, but it has to be a designated area where you can quiet the noise for we're just talking about a few minutes, not for the day, not for half the day, to be able to get yourself organized to figure out which bites to take first.
- 7:20If not, you're trying to do it in the middle of all the noise and it's very hard to focus.
- 7:24I'm gonna go to boxing because we talk about a sports.
- 7:27I'm gonna go to boxing.
- 7:29So, in between rounds, the fighter and the coach, they have to do a very good job quieting the noise to zone in.
- 7:38So think about that.
- 7:38Whether they're winning or they're behind, they go into the corner and you can imagine how loud it is and whatever venue they're in.
- 7:46You know what I mean?
- 7:47And the people hollering in the crowd and the other team and you know, the other boxer, but you have to dial in and focus for that however many seconds in between rounds to make adjustments so you get to the outcome you want.
- 8:00Of the most important thing, right?
- 8:02Yeah.
- 8:02Like, hey, I know you're not getting punches off, but you have to watch that left hook.
- 8:07Like you have to focus and step back.
- 8:10You have to block whatever it is of however they're winning or losing, that person is saying, do this, don't do that.
- 8:18And they're not giving them a whole download.
- 8:20Uh uh.
- 8:20And I think when you're coaching your team, so I want you to think about that.
- 8:24Now they're having to put up an imaginary box around them in that corner of coaches right in front of the fight, the boxer, getting ready to go in.
- 8:32It's like, no, no, focus on me, quieting the noise out there, quieting the noise out here, right here, focus, and you got to focus on this, this, and delete doing this.
- 8:40So that's that's the bites of the elephant.
- 8:42That's I was like, all right, here's the deal, here's the elephant.
- 8:44I want you to start on the back left-hand corner.
- 8:47Yep.
- 8:47And first I need you to clean the foot.
- 8:49You're gonna cut one toe off.
- 8:51So then, particular of like, oh my gosh, this is humongous, and it's no, let's focus on what's right in front of us.
- 8:57And a good leader and a coach has laid that out for them.
- 9:00Yep.
- 9:01But you need to establish, so if you're sitting there thinking, you're like, oh, that's great, you guys are in charge, and and you can designate an area to go to and remove yourself when you need to because you're in charge.
- 9:11Can I tell you this?
- 9:13If you will go to your boss or your leader and say, hey, I'm struggling with this, and here's what I need to do, I get a list of all my to-dos every day, but at some point in time in the day, I'm gonna get bombarded with things that really aren't making a difference, but are eating my time.
- 9:31Is it okay if I use this vacant office right here or I go up into the break room with my laptop?
- 9:37And they're like, well, yeah, sure.
- 9:38And say, Well, I just wanted to let you know that when you see me in there, I'm not goofing off.
- 9:43It just means I'm needing to hyperfocus so I can be better multiplied my time and the advice I'm giving to the rest of the team.
- 9:51It's funny you say that because in our old building long ago, I would task-driven people, hey, you need to do this, this, and this.
- 9:58And like, you have to accomplish this.
- 9:59And they're like, I don't have an office.
- 10:01Like, okay, let's get you.
- 10:02Here's the break room, here's another office you can use.
- 10:04But it's funny because I would go down there and see that the task still wasn't getting completed.
- 10:08It's not because they kicked it to the side, they just couldn't get all the people away, right?
- 10:12They were trying to clean it and it wasn't working.
- 10:14So I would take a book of paper, an unwrapped book of paper, and uh I would I would write on it with a Sharpie, in my office, please don't come bother me.
- 10:25And I would put it in front directly in front of them, and they would start dying laughing.
- 10:29And so I would show it to all the salespeople.
- 10:30Hey, they are in their office and they're currently working on something to be able to help you.
- 10:35Do not come up here.
- 10:36And so it was just basic as simple as that.
- 10:38It's like, hey, give me five to ten minutes, let me reset here, and then I'm gonna be better for you.
- 10:42It's so different than taking a break in sports.
- 10:44It's like, hey, you know, receiver, come over here.
- 10:47I know you just ran three routes in a row.
- 10:49Let me catch my breath, tell me where I'm missing or where I need to rechange my route, and then go back out there two plays later.
- 10:54So let me help you if you're not in an office.
- 10:57And I do this when I'm getting ready to go to a board meeting that I'm on or an event I'm going to help.
- 11:03I know that as soon as I walk in there, there's going to be people that want to talk to me.
- 11:07You know, whether it's about what's going on or just life, so on and so forth.
- 11:11And I don't want to come across of a person that doesn't care and want to want to communicate.
- 11:15So when I pull up, I will then pause.
- 11:19One, I make sure I don't park where people can see and then they just come up to my car, which they will.
- 11:23If you're in construction, they do that all the time.
- 11:25So even if you got to pull into the parking lot before you get to the job site and pause for five minutes to organize to make sure you have yourself ready to go, your game plan, so you stay on task one bite at a time.
- 11:37So no matter where it is, you don't have to have a fancy room that's designated of quiet room, leave me alone.
- 11:43You can designate that wherever.
- 11:45And with a few adjustments, you can make sure that you're on point and ready to lead your team in the right direction, the right bite at the right time.
- 11:53So let's jump into core one here.
- 11:55The scoreboard nobody is looking at, which is the problem.
- 12:00You know, everybody looks at the scoreboard for the end of the game.
- 12:03Hey, what's the actual score?
- 12:05But that's just a reflection of the task that you're currently in the middle of.
- 12:11So what's you guys' take on the scoreboard that nobody's looking at?
- 12:15I I think it's a thing that we look at.
- 12:17We break down daily activities to daily activities.
- 12:21It's one of those things like if we have a tough month and we, you know, you either win or learn, right?
- 12:25Some people say lose.
- 12:26I say win or learn.
- 12:27And so we learn from those and we're like, well, man, we had a solid last two-day close and parts and service.
- 12:33What did we change?
- 12:34Like, well, we closed all these tickets and we called all these people and we called and text three times instead of one time.
- 12:40And so it's like, why don't we do that on the first of next month?
- 12:44Yeah.
- 12:44The third of next month, the fifth treat each day.
- 12:47And so I, you know, we say it a million times.
- 12:50You know, the manager is probably every morning when we go over stuff, they're like, Yeah, I've heard that.
- 12:53Yeah, I've heard that.
- 12:54It's like, well, it's still important, it's still relevant.
- 12:56So I think that's one of the scoreboards that people aren't always looking at.
- 13:00It's like, ah, we'll get it tomorrow.
- 13:01Like, we'll sell a bunch tomorrow.
- 13:03It's like, well, your daily travel rate is eight, and then eight over here.
- 13:06And so then we need to at least be 16.
- 13:08And tomorrow, if you hadn't accomplished what you need to yesterday, you have to do tomorrow and today.
- 13:12Yeah.
- 13:12Like that, that's not going to be good.
- 13:14So what you're really saying there is it's not the overall scoreboard of like how many cars have you sold or how many ROs have you written, but the scoreboard of did you do the daily activities?
- 13:24Yeah, and and we probably will go further into that.
- 13:27But the the activity is what you measure and you manage.
- 13:30It's not the end result.
- 13:32You're not saying, hey, I want to score more points.
- 13:34You know, I need to cover 48 points or I need to sell 200 cars.
- 13:39No, no, no.
- 13:40I need to, and we back into the numbers to know specifically this person has to make 58 outbound phone calls to schedule at least two appointments, of which one will show up.
- 13:50Right.
- 13:51We know that metric.
- 13:52And so we manage that metric instead of the points on the board.
- 13:54We're not like, hey, you got to sell 14, go get them.
- 13:57Yeah.
- 13:57We're like, no, no, no.
- 13:58Today you have to make 54 phone calls before lunch.
- 14:01That's right.
- 14:02And I think that's important for everybody out there.
- 14:04Again, we like to relate things to sports because a lot of people follow sports.
- 14:07Plus, in the sporting industry, it's very transparent.
- 14:11Everybody's either after your job or your position.
- 14:13Nobody talks about it.
- 14:14But at the football game, you know, it's showing you how much time's on the clock.
- 14:18It's showing you what the score is, what down it is, how many yards to go to down.
- 14:22But what it's not going over, but analysts behind the scenes, and if you're ever listening to it on the radio, especially during halftime, they'll talk about this is, you know, how many times did we go three and out?
- 14:33You know, how many times do we have positive yardage on first down?
- 14:36How many turnovers did we have?
- 14:38You know, how many penalties did we have?
- 14:40How did we do it at taking care of the ball?
- 14:42How did we do it getting in the backfield, you know, when we were on defense?
- 14:46Those are the things we're talking about that add up, and the scoreboard's just a reflection of it.
- 14:52Yes.
- 14:52And I think you have to look of not only of your daily task, whatever it would be that you're following up, but that you're not accepting inferior work, that it's just going through that I've really started to focus on at the end of the day, whenever they're checking out, you're not saying, hey, good job, great job hitting your task, whenever you really sucked it up and not hitting your task.
- 15:13Like that, that's not helping anything.
- 15:15Actually look at the facts and address them of, hey, Shelby, you missed all your metrics here.
- 15:20What are what are we doing?
- 15:21Well, what did we miss here?
- 15:22What's the distraction?
- 15:23What was the distraction?
- 15:24And actually address it and move forward.
- 15:27Because if not, what you're doing as a leader is just making yourself more angry, more animosity against that person, that coworker, whoever it is, that they're not getting done what they need to.
- 15:38Yeah.
- 15:38I I think you guys will help add some context here because a lot of people out there, the conversations that should have happened at day 10 actually end up happening day 28.
- 15:50A couple days before end of the month at the two-minute warning.
- 15:53Yes, you know.
- 15:54So so you guys give some comments about how do you reframe that and why do you how do you start getting your team to think about it day five, day 10, day seven, day eight.
- 16:04How how do you inject that into the month fire and attention to detail into the beginning of the month and throughout?
- 16:12It's it's funny that you say that because I was sitting next to one of our um desk managers on Tuesday, um, and he was pointing out a person not performing or doing at the level this, this, and this.
- 16:27Uh, but they had a little bit of momentum in the current moment.
- 16:32And he's like, Golly, I know I need to address that, but I I don't want to get after them about their lack of performance in these days because I don't want to slow their momentum down.
- 16:40I was like, ah, that's the trickiest thing that no one has the correct answer for.
- 16:44I said, because you don't want to slow their momentum down that they currently have, but you need to point out that that wasn't acceptable of the things that they didn't complain, things that they didn't do.
- 16:54I was like, so you see where that moment of momentum is carrying, you finish that quarter or that play or you finish that possession, and then you say, you I said the thing that you need to do is you need to coach on the things that they're not doing well, but you need to feather in a good amount of good jobs in this area and good jobs in this, and hey, you're killing it with momentum.
- 17:12Imagine if you stuttered for half a second, let that person fly by, then you would have this whole right here.
- 17:19I said, so you're able to have constructive criticism without completely just demolishing them.
- 17:25So a key thing that you just let into that I hope everybody gets is when it's time, and this happens all the time, to coach somebody, especially when they need an area of improvement, you need them to open up and accept the coaching.
- 17:38Whether you're their leader or their boss or whatever, you've got to earn the right from them to be able to coach them.
- 17:45And you got to get a green light to do that.
- 17:47And you did that in your example because you complimented them on what they were doing well.
- 17:52And if you'll think about anybody that's ever addressed you, if they compliment you first, you know, you feel good about it.
- 17:57You open up, open up.
- 17:58You're like, okay, this person's on my team.
- 18:00And then the constructive criticism comes on here's where I think we could level you up.
- 18:04Let me help you get to the next level.
- 18:06And so you say that instead of, man, you're really sucking not hitting your numbers.
- 18:09Yes.
- 18:10Tomorrow we got to do better.
- 18:11Yeah.
- 18:11It's like, okay, well, that was the idea.
- 18:15Like, yes, we need to do more tomorrow, but there was no positive.
- 18:18Not there's no spin on it.
- 18:20And so I I think that's the salesman in the uh says generally we'll say that and you can take a negative and make it a positive.
- 18:26Like, man, you're so good once you actually come like.
- 18:29So let's say someone's not completing their daily phone calls.
- 18:32And I'm like, man, I just heard you on your phone call, that person.
- 18:35Did they send a part?
- 18:37And you know they did, right?
- 18:38And we're like, oh, that's amazing.
- 18:39It's like, have you sold them before?
- 18:41I was like, yeah.
- 18:42Like, okay, so there's a pretty good chance they're gonna buy, right?
- 18:44It's like, man, you are so good on the phone.
- 18:47Like, your your conversion rate's about a hundred percent.
- 18:50Yeah.
- 18:50And they're like, yeah.
- 18:51It's like, okay, let's look at your stats here.
- 18:53You average 2.2 calls per day.
- 18:55Yeah, like the goal's 50.
- 18:57Imagine if you took that conversion ratio and actually did the 50, you'd have so much money you wouldn't know what to do right now.
- 19:03And they're like, eh.
- 19:04It's like, okay, so help me help you.
- 19:07What distractions do I need to remove to help you before 10 o'clock to make sure you get 25 of those good phone calls?
- 19:14Like, uh, such and such comes to my desk.
- 19:15I'm like, no, that's your fault, but okay, I can I can spin that.
- 19:18It's like, okay, here's what we're gonna do.
- 19:20We're gonna put a sheet of paper who says, Don't bother me right now, I'm doing this.
- 19:23And they're like, all right.
- 19:25And so instead of saying, like, you suck, you're a 48 phone call short every single day, you're like, hey, what if we did this?
- 19:31That's right.
- 19:32I think that makes all the difference.
- 19:33I do too.
- 19:34I did too.
- 19:34What do you see with your team about how do you instill that daily fire that naturally comes at the end of the month, but getting them to focus daily?
- 19:43It's daily going over it.
- 19:44And I myself, my problem is sometimes I overcomplicate and wanting to make sure and setting aside a time, really being able to sit over here, make sure this is the time we go and talk of going through.
- 19:56So it's really taking the time to create the moment that you need to go and talk to the team of, hey, let's step to side.
- 20:04We're gonna go talk about this.
- 20:05Let's go do a lot walk and we're gonna step out here.
- 20:07But addressing it daily as it happens instead of letting it build, because as it builds, it gets farther and farther and harder to turn the train around.
- 20:16Well, you've already lost those opportunities.
- 20:18Yes.
- 20:18So the it's taken us a while.
- 20:21You know, it just it takes some time in business to understand about each day stands on its own.
- 20:28Because especially when you're young and and then you had a really good day and you made up for it, you're like, oh yeah, I can make up for it when this and that happens.
- 20:35And until you actually look at each day on its own, it's it's gone.
- 20:40It is.
- 20:40It's gone.
- 20:41Like, so that's why you have to focus on every day.
- 20:43I don't know who said this quote, but I really like it.
- 20:45So I'm gonna read it, okay?
- 20:47And maybe we'll figure it out.
- 20:48Listen to this quote.
- 20:50Checking your revenue number on the last day of the month isn't managing your business.
- 20:55It's reading the obituary.
- 20:58Right?
- 21:00Yeah.
- 21:00Is that true or what?
- 21:02Yes.
- 21:02Yeah.
- 21:03Because you're just reading the results.
- 21:05You might as well be a financial, uh, I was gonna say analyst, but a recorder.
- 21:10Just a reporter.
- 21:11I mean, you know, going over that, that's just a reflection.
- 21:16And that should be the meeting that we're either celebrating our success or analyzing and looking at why we weren't successful and what we need to change.
- 21:27I I think a big part of that, an understanding of that, is in one of our micro meetings on Tuesday, we were talking about something, and there were two different management styles in there, and people responding.
- 21:38And so we asked about something, and someone quickly answered was like, Oh, yeah, that's because of this, this, and this, this, and this, and this.
- 21:44And so then we got to the well, they kept talking, and then Matt was like, Well, let me base this off some stats.
- 21:50So he does some stats real quickly, and he's like, I'm so glad you pointed that out.
- 21:53Let me show you these stats.
- 21:55Actually, you're within a couple percentage points of the amount of traffic versus this.
- 22:00Store versus this store, you know, and it was the amount of work being an oil change versus heavy duty work.
- 22:06And uh they were saying, well, they don't do near the amount of oil changes.
- 22:10And so I was like, so that was a response just on what they thought they knew, the reporter style, waiting for the obituary.
- 22:17Then later on, there was another thing.
- 22:20And uh I said, hold on, that seems to be positive momentum.
- 22:24Tell me what you think about this.
- 22:25And he's like, Well, I didn't know.
- 22:29And so what I did was I pulled the report.
- 22:32I thought I knew, and I thought, hey, based on the the past, this is what happened.
- 22:37He said, But I pulled the report, and here's what I have found.
- 22:40That is two completely different styles of management.
- 22:44And some people have the fear of that I don't have the answer.
- 22:47I'm the director, I'm the manager, I should have the answer.
- 22:50The other people to say, hey, I should, but I want to see what did yesterday bring and what should we, you know, the biggest thing we say is like, well, that was a good day.
- 22:57You need to dissect that, figure out what made the good day, and repeat that.
- 23:00But first was dissect it and figure out what made it a good day.
- 23:04Don't just say, go get them, let's do it again.
- 23:06Hey, that same manager you're talking about, I've managed multiple different ways.
- 23:12Okay.
- 23:13And I've also worked with that person, and they're a great employee of ours.
- 23:18We're not talking bad about this for a long time.
- 23:22So we've both earned the respect and the trust that I should be able to say something and they should take it for card value.
- 23:31Yeah, you shouldn't have to sell it.
- 23:32And they should run.
- 23:33I've worked with this individual for over 20 years.
- 23:36Okay.
- 23:37And a lot of time together.
- 23:38So you would think that that was earned that like I could say, because like if I told you something, Shelby, you'd be like, okay, yeah, I know Matt researches it.
- 23:45Let me take it and run with it.
- 23:46I say something else to Taylor, and Taylor's like, just give me the ball and let me run.
- 23:49I don't need to waste time arguing now.
- 23:52This individual, however, is very passionate about what he does, which makes it great.
- 23:56But I know, because we've tried to address it before, that if I just say what I was gonna say, he was gonna have a rebuttal because he's protectant about his department and his production.
- 24:05But I knew if I provided him with some facts, it was just a bridge and we kept rocking.
- 24:11You you've been in the meeting before when it's the other way.
- 24:13Then it's a 20-minute drag out of like, holy cow, shut up and listen.
- 24:18Yeah.
- 24:19So I think you a great point there.
- 24:21Is you know, it's everybody just responds differently.
- 24:23All right, I got to give a little credit to that quote while we were talking there.
- 24:26So Keith Cunningham is the one that had that quote.
- 24:29Simply a nice guy.
- 24:30From his book, you know, like this The Road Less Stupid.
- 24:34Uh listen to that one.
- 24:37Right.
- 24:38That's a good one.
- 24:38Keith, thank you for giving that to us.
- 24:40That's super solid.
- 24:41All right, factor fiction time.
- 24:43If your team is busy, your business is moving in the right direction.
- 24:47Fiction.
- 24:48Fiction.
- 24:49Fiction.
- 24:50You guys are correct.
- 24:51That is fiction.
- 24:52If your team is busy, that does not mean you're moving in the right direction.
- 24:56They could be busy.
- 24:57Think if you're in construction or if you're in site work and they're digging a hole, they're busy, right?
- 25:02Yeah.
- 25:02It could be the wrong location for the hole.
- 25:05If you are not measuring whatever metrics and KPI that's relative to moving the mark towards the goal of your company, I can promise you the busyness is not pointing in the direction that you want to go.
- 25:19Yeah.
- 25:20That is just as simple as that.
- 25:22Yep.
- 25:22Absolutely.
- 25:23Diving into core two there.
- 25:24So what gets measured gets done, the why of obviously you're going into.
- 25:29So this is the why behind the problem.
- 25:30Most businesses only see the outcome and not the activity, is because they were never measuring the activity in the first place.
- 25:38I think that rolls straight with what I was just talking about of the measurables and whatever your measurables and your KPIs are, you as a leader, it just be we've changed KPIs a ton.
- 25:50We have.
- 25:52We have to pause and make sure they're aligned with what the goals and direction of the business are.
- 25:58And that changes.
- 26:00That changes.
- 26:01I want you to think about like a large, tell her you have cruise ships.
- 26:04So let's talk about that.
- 26:06A large cruise ship, you you have to, one of the KPIs for a while is is turning to get to the straight direction to get on path.
- 26:15Yes.
- 26:15You know, but then what then once you're on path and the ship is actually turned at that degree or whatever, then the KPA is not that anymore.
- 26:23It's whatever else it may be.
- 26:25You know what I love talking about that?
- 26:27And it can be in aircraft, it could be in boats, it could be anything else.
- 26:31Something that's large like that, that's moving at a high rate of speed or in a long distance or anything else, no different than your business.
- 26:37I'm not saying go left or right, forward or back.
- 26:40I'm saying adjust your adjust your position two degrees, three degrees, four degrees, whatever it would be.
- 26:47So I'm giving you one KPI to say, hey, change this in your daily activity to make this huge difference.
- 26:55A cruise ship that's going very slow or a plane that's going very fast.
- 26:59Shelby's talked about this in the meeting.
- 27:01If I'm off one or two degrees, I'll take off in Dallas, should be going to New York, and I land in Florida because I was a couple of degrees off.
- 27:11My business, I wasn't doing activities I was supposed to be doing daily, and I was doing the wrong activities, busy work, I was in gear going, but I wasn't directed in the right direction.
- 27:23That's why I love that.
- 27:24About there's there's a really good point about that.
- 27:27And uh the bigger, the bigger the business, the more people, the bigger the problem can be.
- 27:33So you think about those few degrees.
- 27:35So think about this.
- 27:36If you're a cruise ship versus if you're a 20-foot John cruise ship has to very, very, very, very, very specifically target when do they change their degree, when do they change their speed, because of fuel consumption?
- 27:50Yep.
- 27:51Because of the time that they're supposed to be there, because of how much draw the ship has, can we go that way?
- 27:58If you're in a John boat and you get there and you can't, you know, you didn't plan that far, you can whip this way, you can whip that way, you could stop right here, park right here, and run and go get some gas and come fill up your John boat.
- 28:10You can't do that.
- 28:11So the bigger your business is, the less you can fly by the seat of your pants and just be like, oh yeah, when we hit land, then we'll go 20 degrees north.
- 28:20Like, no, in your large business, you have to calculate today, tomorrow, manage those activities, and look at the 30 day, the 60 day, the 90 day.
- 28:28And you got to make sure you're on course.
- 28:30And in aviation, I want to make sure I was talking correctly here.
- 28:32So thanks for setting that up.
- 28:34It's called the one in 60 rule.
- 28:36So what they state is is for every 60 miles you fly, if you're if you have a one degree error, it'll take you one mile off course.
- 28:44And that's just in 60 miles.
- 28:46So for example, you'll miss the entire airport if you flew just 60 miles.
- 28:52Okay, one degree off.
- 28:54Okay.
- 28:54If if you go 300 miles, which is like to Dallas, okay, you're five miles off.
- 29:00It's pretty large.
- 29:01You made it a different town.
- 29:02Okay.
- 29:03If you flew from JFK to LAX, all right, just one degree off, that's 2,500 miles, it'll put you 42 miles off course and you'll land out in the ocean.
- 29:13Well, when I made that analogy up long ago, talking about people measuring the little things, I didn't have those stats, but I had a pretty good idea, and that's even more proof that it is the little details, the little bites of the yellow fin, and we're talking about just a little, and they're like, I'll get it tomorrow.
- 29:31The factory can only produce X amount of items.
- 29:35That's right.
- 29:35So if something's missed, they're like, get it tomorrow.
- 29:37What are you going to get tomorrow?
- 29:38If the factory could do more, they'd have already been doing more.
- 29:41If your workers could do more, they'd have already been doing more.
- 29:45I will tell you this.
- 29:46Um, let's go the opposite side of it.
- 29:49So let's let's go the time when you don't prune and you don't let off some of your KPIs, and then what that feels like.
- 29:57We we've always done a good job about having our different KPIs that we go over in meetings.
- 30:02We've always had manager meetings and like what we're going over.
- 30:04And then we're like, hey, a new metric comes out.
- 30:06If that's if that's from the manufacturer on a CSI or a delivery or a fixed right first visit.
- 30:12Do that often.
- 30:13They they do.
- 30:14So then we're adding that KPI in there because you got to track it.
- 30:17If you want to achieve it, you need to track it.
- 30:19Yep.
- 30:20And we add it on to the report.
- 30:21And then all of a sudden the report gets this long.
- 30:24And sometimes you need to look at it and go, okay, what are we still, what's still not relevant and remove those things off.
- 30:30Because it gets watered down.
- 30:31It does get watered down, and then it and then you get up in that brain fatigue or those meetings we were talking about a couple episodes ago that people don't want to go to.
- 30:40Well, you know, what we used to measure here, we substituted now we measure this, it's a better KPI, we remove this, but you got to communicate that with your team.
- 30:48Yeah, absolutely.
- 30:49That that's so big to be able to dive into there.
- 30:52So, you know, of going in and seeing your team, I love this of being able to see the scoreboard in real time.
- 31:00So to be able to see what activities are going on.
- 31:03And we kind of do that with some of our KPIs that we have out there, but what relevance is to that to the to the team and how does that help continue to further push that?
- 31:13I will tell you having metrics in front of people as live as you can, where they have to take action to get away from it, is so powerful.
- 31:28We've talked about that, that it has made us more money than anything else.
- 31:32Just having.
- 31:33And and from back in the day with with dad, it was the fax machine.
- 31:37Everybody had a fax machine, and there were faxes coming out non-stop.
- 31:42Before then, we had the green screens on the computers.
- 31:44And I can remember, and this was just growing up, but I can remember the other managers and I could see them get frustrated because they were working a deal or they were writing up a ticket, and across the green screen comes a scoreboard update, and it locked your computer.
- 31:58You couldn't do anything else at that time.
- 32:00They're like, son of a gun, but they're trying not to say anything because I'm right next to him and I'm his son, you know.
- 32:06But it was those KPIs right in front of them.
- 32:08What got lost a little bit was in email that people would send stuff out in the email.
- 32:14Yeah.
- 32:14With email, you got to open it and you got to look at it.
- 32:17And I'm not saying it's not great to have it in there, but if you lay a printed piece of paper on somebody's, I always lay it where they have to move it.
- 32:25So like on their keyboard, yeah.
- 32:26They at least, even when they're moving it, they're like, oh, okay, where was I at?
- 32:30Or now on our confidence monitors of where, where are we?
- 32:33You know, and that it has to interrupt their path that, you know, that says, hey, this is a level one going to be right in front.
- 32:40So that that's a thing that we do.
- 32:42And that's a thing that I I try to constantly focus on of metrics that someone else has created or something else that we're measuring.
- 32:49I don't have to be the creator, but I want to do my best to make sure that it's in front of people.
- 32:53So that in Slack that I'm constantly putting it there so people can reference it.
- 32:56Yeah, you know, so in a meeting that I, if I have no part of it, that I'm I'm like, I'm gonna at least record this and I'm gonna put it in here so they can find it, so they can see where we're all at there.
- 33:05And then in our confidence monitor, sometimes I'll come in and the TVs will be off.
- 33:09I'm like, let's get this thing on here, let's get these metrics up.
- 33:12Hey, please update this because you create the urgency and the importance, and then you let that fall down and they're like, hey, my number's off.
- 33:19So they stop.
- 33:20It doesn't have the value that it has.
- 33:22And I think that's a thing that I am not a I am not a group techs person.
- 33:27Sure.
- 33:27You know, I I have plenty of them for what it be kids sports or just funnies or this, that, and the other.
- 33:33But then when it comes to measurables and metrics, and we don't hammer like we've got one for all of our sales managers and fighting managers that we communicate about different meetings, and it's not like there's not a ton of gifts and stuff coming across here.
- 33:45And not everybody's hardening love and all this stuff that Matt Love so much.
- 33:50But it will be one of those things that I see.
- 33:52I mean, I'll give you a thumbs up.
- 33:53We're not at that activity level that that the day should bring.
- 33:57Yeah, and that's where I would remember that a fax would come out.
- 34:00Sure.
- 34:00And I'm like, hey, activity checkup.
- 34:02It's just a reminder.
- 34:03Hey, is our ship pointed the right way?
- 34:06Are we at the right speed?
- 34:07Is this at the right pace?
- 34:08Do we have, you know, all those things?
- 34:10And so it's an activity checkup, and they're like, whoop.
- 34:12And so that's at level one.
- 34:14It's right in front of them because you know their phone's there, or it's a printout that you come around and hand out.
- 34:18And so then you are measuring it and it is in front of them, and it is real time.
- 34:22And they're like, okay, I'm not winning.
- 34:24There's a piece, and I and I like breaking these down when we get to them because there's always nuggets in there that I don't want you guys to miss.
- 34:30The reason that in the text group that it's effective is we don't have a machine gun going off all the time.
- 34:38Yeah.
- 34:38If you if you walk into the room or you walk in with your text messages, and it's just constantly going off, all this noise.
- 34:46Then when it's actually time to take a shot, the boy that cried wolf.
- 34:50You know, and it's like, so that they know in our group text there, and yeah, there'll be some emoji.
- 34:55Like we have a big month and a celebration, like, okay, that's fun, right?
- 34:58That's a question.
- 34:59You know, but it but it's not every single day.
- 35:01Hey, I'm sorry, my dog got sick, and no, the tire fell off the vehicle out there.
- 35:05Like, just go fix it, go fix it.
- 35:07So then when you do get ready to ask for a checkup or this or that, it's relevant and people pay attention because you haven't cried wolf.
- 35:15Yep.
- 35:16They they appreciate that and they respect that that you haven't spammed them, and then that means, hey, I'm going to reciprocate with the same amount of respect.
- 35:24Absolutely.
- 35:24And say, All right, we got to get after it.
- 35:26You guys hear us go off sometime, not on a tangent, but talking about the details.
- 35:31And some of you are just shaking your head and going, What?
- 35:34They're looking at this and that.
- 35:35The details are what matters if you want somebody to take action and to take you seriously.
- 35:41Yes.
- 35:42And having the details in there, a visual scoreboard I love.
- 35:45Because I can sit in uh manager offices, and not only do you get accountability from your sales staff that are in there, like, hey, this isn't updated, or hey, wait, where am I at?
- 35:55They're like, What are you doing?
- 35:56You get vendors that walk in, they're like, they'll say, Hey, good night.
- 36:00Y'all are getting after it.
- 36:01And the manager's like, Oh, yeah, we are.
- 36:03And they don't even know for a second.
- 36:05Well, they're reading whatever the scoreboard is, or are visual boards that have X's on there for what's sold.
- 36:12And so then they're like, Oh, I've got to keep this up to date because then they're asking me about it, or they're really checking in on me.
- 36:18So I got to make sure.
- 36:19So visual scoreboards always visual points of interest, whatever they are, are gonna always hold a higher accountability.
- 36:27And the greatest thing is they hold accountability to a manager at the team level without you ever having to say a word.
- 36:32It's yeah, it's it's just right in front of it.
- 36:35You know, so sometimes like Ultimate Challenge, I'll take over some of the TV and so then I'll share a Google Sheet or Google Doc, and it'll be in each manager's office and it'll have that count.
- 36:48Yep.
- 36:48And then as the month went, as we were trailing or a hit, I would add metrics to it, like, hey, we need 18 today, or or plus six, or minus this, where I'd change colors of it.
- 36:58So you wouldn't have to say where there's like, oh, okay, we're rolling.
- 37:01It's like, oh, we probably should do some more activities.
- 37:04So the other point I want to talk about here is how that's evolved, but it stayed at its core throughout 80 years of business.
- 37:12So, like my grandfather and his brother, it was written on sheets of paper, you know, with the ruler and stuff, and then they'd go pass it out.
- 37:20They might pin it in the, you know, in the Aployed break room or whatever it may be.
- 37:25Then it evolves, and my dad starts faxing it and it starts coming up on the green screen, but still KPIs.
- 37:32Now they had different KPIs than we have now, but still KPIs in front of people using the means of communication that people are using during that time.
- 37:42Okay.
- 37:43Then it evolves and we start emailing it.
- 37:46The emailing's coming out, the fax is kind of still going, the green screen's not there anymore.
- 37:51Yep.
- 37:52Well, then the email kind of gets watered down.
- 37:55So it's, hey, how do we put it on TV boards and have KPIs, but let's still pass it out at the same time.
- 38:02And then communication comes through apps and through text.
- 38:05So how do we have a text message group thread?
- 38:07And then how do we have an app so the text don't get overloaded that have the different channels of communication in there?
- 38:14So all of that is relevant and reporting on how you evolve with your business, but you keep the core things.
- 38:21Remember to adapt to society and employees and how they're communicating today.
- 38:26And don't think that like they're just going to adapt to you.
- 38:30You know, you're not as big as the outside world.
- 38:33No, the outside world is training your employees and your customers how to communicate what channels to use.
- 38:38It's your job to adapt.
- 38:40So are you saying that we should?
- 38:41I don't have this app.
- 38:43I think some of our younger generation.
- 38:45So should we send Snapchats of our faces looking at the metrics, like some of our sales team?
- 38:51Yes.
- 38:51Like send a quick screen.
- 38:53Yes.
- 38:53I'm going to need the facts on that first before I just need to directly on that.
- 38:58I think uh Farmington has their own Snapchat group.
- 39:01Yeah.
- 39:01You could just pop in there, I think, with a picture of your face, and it's probably gonna go down.
- 39:06I'll get tagged on there.
- 39:07Yeah, we don't have enough time left in there.
- 39:10Hit them with your fun fat stack.
- 39:12Oh man, how many businesses actually hit the goal they set at the start of the month?
- 39:16None.
- 39:17I'm getting very few.
- 39:18You'd think a lot as much as businesses.
- 39:20I mean, but it's not.
- 39:22It can't be that so but before you fully define that, I guess let me say this.
- 39:26And so I I feel this sometimes because in our meetings, every single day, we go over and the metrics that we do is I'll do a plus if we're trending above where we were the previous day, and we'll do a highlight if they're, and this is not my idea, this came before me, a highlight if we're at that standard goal or above, right?
- 39:45And so sometimes the idea of the goal is progression, forward progression versus where we were 90 days ago, where we were year over year last year.
- 39:54So that goal might be higher.
- 39:57And if you don't overly change how to get there, there's a chance that you're not gonna hit that.
- 40:01I mean, many a times we don't hit that goal.
- 40:04And what I tell them is, hey, shoot for the stars.
- 40:05And if you fall short and land on the moon, you still accomplish something great.
- 40:09Absolutely.
- 40:10Right.
- 40:10So that's the thought on goal achievement.
- 40:13I I had a before I go into this, I had a I got to go off what you said there.
- 40:16I had a boss and a mentor when I was in an internship during college, and one of his quotes were perfection is the goal, but excellence is tolerated.
- 40:27Yes.
- 40:28So when you think about that, like we all know that none of us are perfect.
- 40:32Yeah.
- 40:32And nobody, but if that's the goal, and we're not in our mind of like, nobody can accomplish that, you can't do that.
- 40:38If you fall short, you're excellence, and that'll be tolerated.
- 40:40That's the exact same thing.
- 40:42So that's when it's so like, hey, perfection is the goal, and don't get hung up in the idea of perfection.
- 40:46I'm just saying, hey, 110% of last year is the goal.
- 40:49Yeah.
- 40:50But excellence, if you land at 99% or 101%, that'll be tolerated.
- 40:55That's great.
- 40:55Yeah.
- 40:56I love that.
- 40:56Paul Cummings.
- 40:57Yep.
- 40:57Shout out to Paul Cummings right there.
- 40:58Constantly would hammer that.
- 41:00And I I only went to his place one time, but you always said it and I knew it.
- 41:03And so I will constantly still say that.
- 41:05It's just so relevant.
- 41:06Okay.
- 41:07So it's funny because I looked at the and I didn't come up with this question um nor the answer.
- 41:12Our our crew did behind the scenes, but I did test something else that I'm going to get to.
- 41:17So the the question was how many businesses, y'all gotta love this, actually hit the goal that they set at the start of the month?
- 41:2510%.
- 41:2610%?
- 41:2710%.
- 41:27Oh wait.
- 41:2810%.
- 41:29That is crazy.
- 41:30Okay.
- 41:30Now listen.
- 41:31I asked AI this, so it's got to be real.
- 41:34What percentage of businesses actually set monthly goals?
- 41:38I was gonna throw that in there.
- 41:40Actually set monthly goals.
- 41:42You want to know what percentage?
- 41:4410%.
- 41:46I don't think as a direct provider.
- 41:48So if only 10% goals and only 10% of those people hit their goals, that means only 1% is having a success rate.
- 41:54If those two.
- 41:55All right.
- 41:55So I think like, how do we unpack that just a little bit there?
- 41:58And I know it's just a fun question, but guys, if 90% of you listening out there don't even set a goal, what are you doing?
- 42:10You don't even know if you're doing good or bad.
- 42:12You're just like judging by it if you're negative in your bank account.
- 42:17It's two things.
- 42:18How busy was I?
- 42:19Yeah.
- 42:19Is there any money in my bank account?
- 42:21And are you asking the guy at the counter, hey, how was today?
- 42:24And are they negative fancy?
- 42:25Like how was today?
- 42:26Uh, it was a little slow, only in three people show up.
- 42:29Okay, now furthermore, the businesses that set goals.
- 42:33Okay, so the 10%.
- 42:36Okay, so if you actually set the goal, you beat out 90% of other people.
- 42:38And I don't mean a mine goal.
- 42:40Some of y'all are going, well, yeah, I set goals, but I really don't write them down.
- 42:42Goals are not written down, they're just wishes.
- 42:44And I don't share them with anybody else.
- 42:47There's no accountability.
- 42:48Whatever.
- 42:48That's not a goal.
- 42:49Go back to our goal setting podcast.
- 42:51Okay.
- 42:52Of the people that set goals, so only 10%, only 40% of them conduct any type of meetings tracking the goals.
- 43:03What they do is they send out the reports email-wise, and they're like, well, I told them they should know where they are.
- 43:10How can you make adjustments?
- 43:12Okay.
- 43:13I'm going back to sports here.
- 43:14Okay.
- 43:15So we studied the film, we installed the new game plan for the team that's coming up this weekend we're playing.
- 43:22Okay.
- 43:23So the the goal is to win.
- 43:25Okay.
- 43:25The activities is this game plan we installed, these plays, these formations, but then the coaches are on the sidelines, communicating with the press box, talking to the players, adjusting during halftime.
- 43:39That's the same thing in your business.
- 43:42Have the meetings throughout the month, tracking where are we on the KPIs, what do we need to adjust?
- 43:47What are y'all seeing?
- 43:49You know, it doesn't always feel this way.
- 43:51And I'm just saying, hey, it's okay, keep grinding.
- 43:54It doesn't always feel this way, but they say it's so easy to win in business if you just follow the The basics and use some effort because think about that.
- 44:03If only 10% of people set goals, enough that only 40% of the 10% actually tell somebody about the goal or have any type of meeting of where we are in that goal.
- 44:14Yeah, you could very easily be better than 90% of people if you just had a very clear written game plan and you weren't even good communicating about it.
- 44:24You just had a handout or you text about it.
- 44:26Hey, it's 13th of the month.
- 44:29We're currently at 42% of the month.
- 44:32Yep.
- 44:32And we're currently trending at 50%.
- 44:35Yep.
- 44:36It was like, okay, well, you're ahead of your 42% because you're 50%.
- 44:40So that math-wise, that would put you in the top 4% of companies.
- 44:46If you just tried, if you just set a goal and once a week just went over either Zoom in person or a phone call over where you were tracking on your KPIs.
- 44:57You can be in the top 4%.
- 44:58You know why they don't?
- 45:00Because they get busy.
- 45:01They get busy and they never pause to work on their business.
- 45:06They're always working in their business.
- 45:07And you need a true relationship.
- 45:09I'm going to give one other point here and then Shelby, let's get on to your section.
- 45:13Um, some of y'all, I just I know this because I've been there and I've listened to people that that were bigger than us in business and they had more resources than us in business.
- 45:22And I would catch myself going, if I just had this, if I just had that, we could do it.
- 45:26Can I tell you, if you don't have a fancy computer system and if you don't have all this and all that, you can simply go buy a TV that is very inexpensive.
- 45:35Do it when you check out a Sam's today.
- 45:37Okay.
- 45:38For 400 bucks, pretty good size one.
- 45:40All right, take your laptop, take your phone if you want to, or your iPad.
- 45:45You can cast a Google Sheet up to that TV that simply has your metrics in it and just manually fill it out once a week.
- 45:53That's that's still what we're doing in a lot of our things.
- 45:56So I'm just telling you, for a mirror system, less than$500, your employees can walk into your next shop meeting or production meeting or forecasting, have a TV on the wall, and you go over that.
- 46:09Yep.
- 46:10And then do the printouts too.
- 46:12Okay.
- 46:12Super solid.
- 46:13All right, core number three.
- 46:14The goal is not the plan.
- 46:16We're talking about the solution.
- 46:18So we first started out with the problem, then we talked about the why, and now we're talking about the solution.
- 46:22The goal is not the plan.
- 46:24So think about that.
- 46:25Our goal is to outsell last year by 10%, right?
- 46:29We want to be 110%, whatever that may be.
- 46:31Hey, our goal is to install 40 roofs this month.
- 46:35Yep.
- 46:35Hey, our goal is to connect with 100 customers that we can help with this.
- 46:41That's our goal.
- 46:42That is not the plan.
- 46:44So you have to think about that.
- 46:46It's like, hey, go sell 40 roofs.
- 46:48Not the plan.
- 46:50Hey, go sell 65 cars.
- 46:52Hey, I need you to sell 15 cars.
- 46:54That is not the plan.
- 46:56How do you get there?
- 46:57That most people say that, right?
- 46:59So what we'll talk about is breaking that down.
- 47:01Setting the goal is the easy part.
- 47:02The hard part, the part that almost all businesses fail at is the reverse engineering.
- 47:07And it's funny because one of our finance managers was asking me something the other day, and I was like, hang on, show me the whole thing.
- 47:12And I said, okay, this, this, and this.
- 47:14I said, no, you got to reverse engineer this.
- 47:16He said, huh?
- 47:17I said, I've been doing this since I was in the third grade, like figuring out a math problem or something.
- 47:21It's like, okay, give me the solution.
- 47:23And it's like A squared plus B squared equals C squared.
- 47:26If you're missing one element, I can figure it out.
- 47:28I just need to understand, hey, what's the goal?
- 47:30Okay, let's figure it out, let's break it down there.
- 47:32So reverse engineering what it actually takes to hit daily.
- 47:36I love this.
- 47:37I love this.
- 47:38And I'm going to talk about selling cars because it's the easy one right here.
- 47:41Then we get to service, is when we sit down and and you got to be careful because when people set goals, especially you get around a bunch of A-type personalities, they rev up hard.
- 47:52And then they'll always look at me because I'm a revved up guy and I love hitting goals.
- 47:56But then slowly I'll talk to them about it.
- 47:58I'm like, okay, do you have the pieces in place to actually accomplish that?
- 48:02Because don't set yourself up for something that you don't have the structure in place to do.
- 48:08Because I want you to succeed.
- 48:09I'm not telling you to make goals easily achievable, but is everything there?
- 48:13So when we're setting a sales goal, there's three things that must be in place to accomplish that.
- 48:19All right.
- 48:19Number one, do we have enough salespeople to accomplish that goal?
- 48:23What do we simply do?
- 48:24We just take the average.
- 48:25You know what I mean?
- 48:27We multiply the average times of salespeople.
- 48:29So let's use easy numbers here.
- 48:30If it's 10 is the average, and we have 10 salespeople, that's 100.
- 48:35Yep.
- 48:35All right.
- 48:36Now, based upon our facts, we see that between 85 and 90% of our goals are hit every month at an individual level.
- 48:44Individual goals.
- 48:45Individual goals.
- 48:46Okay.
- 48:46So let's take 85%.
- 48:47And you say, well, why didn't everybody do 100%?
- 48:49Listen, somebody's going to be sick, somebody's going to have a kid out, somebody's going to go on vacation.
- 48:53It's just you need to manage in real worry.
- 48:57So let's take 85%.
- 48:59So of those 10 that sold on average of 10, and you got 85% production, you can accomplish 85.
- 49:05Yep.
- 49:0685.
- 49:06That's it.
- 49:07Okay.
- 49:07As long as everything else is in place.
- 49:08So that's number one.
- 49:09So if somebody tells me they want to sell 150 with 10 salespeople, I'm like, you haven't proved yet that your average of your salespeople can get to an over 15 average.
- 49:18Yep.
- 49:19You need to add salespeople or you need to up their training level.
- 49:22Number two, do we have enough inventory?
- 49:25Do we have the inventory to do it?
- 49:26We got the people to sell it.
- 49:27We got the product to sell.
- 49:29Do we have enough of it?
- 49:30Let's look at what are incoming and what's in stock.
- 49:32And then number three, do we have the marketing in place to provide the opportunities to sell?
- 49:39And that's how you reverse engineer for sales.
- 49:41Most certainly.
- 49:42And so you look at any of those and think about it.
- 49:44We're talking sports.
- 49:46Let's say someone says, hey, I want to run a sub-six minute mile.
- 49:49Okay.
- 49:50That's the goal.
- 49:51Okay.
- 49:52The solution is not go run a sub-six-minute mile, right?
- 49:56You break it down into, okay, here's what we need to do.
- 49:59You need to go run a minute at six-minute pace or 545 pace and then 30 seconds recovery.
- 50:06And then you do that times four.
- 50:09And then that session you're going to do three times a week.
- 50:12Then we're going to work on some sprints to be able to get that.
- 50:16That's the plan.
- 50:17That's often where people miss that.
- 50:19And so then they break that down.
- 50:20And so you take that breakdown.
- 50:22And so then we break it even further down.
- 50:24Taylor, talk about the stats that we know that this person has to complete 48 phone calls to schedule an appointment.
- 50:31And when they schedule one appointment, half of them actually sell the car.
- 50:35How do we use that metric?
- 50:36Oh, going through being able to use that to coach our guys, you know, of looking at, so whenever we break all of our people apart of saying, hey, you do 40 activities, 50 activities a day, and seeing the metric that we were talking about earlier, that they can schedule one person off of two phone calls, or every five phone calls, they can schedule one person.
- 51:01So then we can look at it and easily say, hey, every five phone calls, you schedule one person.
- 51:06Your closing percentages at 50.
- 51:08So you to sell one today, you need to make 10 good phone calls to schedule two people because of those two people, you're going to sell one of those.
- 51:15And that's based on their facts.
- 51:17Of their true uh proven track record that we pull up, not metrics we're putting together.
- 51:23We're taking our 50 activities because we know of 50 activities that that is a good average.
- 51:29It's not overwhelming or underwhelming, that it's right there where it needs to be, but of their proven track record, this is what X sold these last amount of days, and this is what activities they put in there.
- 51:42So that that really helps us engineer if a person's averaging 10 cars or 12 cars or 15 cars, and when we set for the next month, we set that goal, and we're not saying it's set and forget for a month, but what we'll say is okay, if you want to grow, and generally they shouldn't, they generally don't grow more than 10% per month.
- 52:00That's right.
- 52:00Right.
- 52:01So at 10, that would get them to 11, you know, and then we grow from there.
- 52:05Can we bump a little?
- 52:06Sure.
- 52:06But then we reverse engineer all those metrics and say, okay, let's go look at your last 90-day proven track records of how many activities does it take.
- 52:14So we'll start at the very end and go completely backwards.
- 52:16Reverse engineer it.
- 52:17And so then we'll break that down to a daily activity.
- 52:20Yep.
- 52:20And so some of them, and it proves that they're not the greatest at the task, you know, because I'll say do more and be better at it.
- 52:27That's always what I'll say, do more and be better at it.
- 52:30Uh, and it's important to be better at it because sometimes they'll complete 400 tasks.
- 52:35And so I was schedule one appointment.
- 52:38It's like, hold on, please don't make any more phone calls because we got to work on what you're saying.
- 52:43That's right.
- 52:44400 to 1 is not a good ratio because our store average is 25 to 1.
- 52:49There's a hole in the bottom of the bucket and your water is flowing full throttle through the bucket down through the bottom.
- 52:54So if you see that, if you see that it takes that many tasks or they have to schedule five appointments to sell a car when we know our average is 52% or 55% there of a show rate we'll buy a car, then we take that they want to sell 15.
- 53:08It'll show I've seen it before, that they need to make 13,000 outbounds.
- 53:14I'm like, you got a lot to do.
- 53:16You got a lot to do.
- 53:17So let me help you polish up.
- 53:19Like once you get a car in here to fix, you don't know what tool to use.
- 53:23You don't know time tools and training, right?
- 53:25So we'll like, let's stop that real quick.
- 53:28You're not the best at this, and I'm gonna help you because I think you are really good.
- 53:32This circles back to the beginning, Matt.
- 53:34You are so good at completing tasks.
- 53:36Yep.
- 53:37Like you are task-driven.
- 53:38I love that.
- 53:39Green light just came on.
- 53:40Okay, go ahead and coach me.
- 53:41So here's where I see opportunity, Matt.
- 53:43If we possibly, and here's how we'll do it.
- 53:46What if you and I did some phone calls together?
- 53:48Okay.
- 53:49You lead a couple, I'll lead a couple.
- 53:51Okay.
- 53:51And then if we get to a point where I feel like you're you've connected so well, but I feel like there's an area that I could help you actually set that appointment.
- 53:58Would you be okay if I took over?
- 54:00Okay.
- 54:00Okay.
- 54:00Okay.
- 54:01So what we'll do is we'll make a phone call together.
- 54:03And this is what we tell our management team good, bad, or ugly.
- 54:06Let's do this together.
- 54:07Go to their office, start working on that, have them dial, show you how they do it.
- 54:10And you might be like, oh, that was a completed task.
- 54:13No, you didn't actually complete the task.
- 54:15Yeah.
- 54:15So then you find that.
- 54:16That's right.
- 54:17It's like, oh no, you actually have to do that.
- 54:19You actually have to click the phone to complete a task.
- 54:21You can't just, and so then I'll help them get a win.
- 54:25I'll help them like, oh, uh, hey, pause that real quick.
- 54:28Just put them on hold.
- 54:28It's like, all right, I'm gonna take over this.
- 54:30Hey, Mrs.
- 54:30Smith, this is Shelby.
- 54:31Hey, Matt and I were working together.
- 54:33We were actually seeing that you were recently in for service and you declined some service work.
- 54:37Is that because you feel like your car is getting older than what you thought and you don't want to pour money into it, or because you were planning on saving money and upgrading to a new ride?
- 54:44And I just I don't know.
- 54:46You know, it's a lot of money.
- 54:46So we do, you brought up a good point of do we invest the money into this car or do we go ahead and upgrade the car?
- 54:52That's such a great question.
- 54:53And we get that all the time here at Lewis Automotive.
- 54:55And kind of one of the things that we look at is how much longer would you keep the car and how many other unforeseen fixes would we have to go over?
- 55:02What I would like to do is because we because your car is still such great condition and just needs a few things to get it perfect, that means it's still worth quite a bit in the used car market.
- 55:12The markets are super high.
- 55:13As a matter of fact, it's on my list of a car that we can give up to$2,500 over market value.
- 55:19What's the rest of your day look like?
- 55:21Could we schedule time to take a look at your car?
- 55:23I could get you that actual cash value.
- 55:25We could look at it and see what that replacement vehicle looks like.
- 55:27Do you have like a 215 or a 345 that would work?
- 55:30Yeah, 345 will work.
- 55:31Perfect.
- 55:31All right.
- 55:32Well, Matt, Shelby, and I are gonna work together and make sure that we have everything ready for you.
- 55:35When I get off this phone call, I'm gonna send you a text so you know how to get a hold of me.
- 55:39I'm gonna send you a picture of me so you know what Goofy Me looks like.
- 55:41Okay.
- 55:41And I'm gonna show you the cars that we have so you know exactly where to go, the location we're at, and you can text me in case anything happens, right?
- 55:48Sound good?
- 55:49Sounds good.
- 55:49Perfect.
- 55:50Well, we'll see you at 345.
- 55:51Let me know if anything happens.
- 55:52Then I get off that and I'm like, oh my gosh, Matt, you just scheduled an appointment.
- 55:56And he's like, Why didn't you do it?
- 55:57It's like, no, no, no.
- 55:58Did you see how that worked?
- 55:59Yeah.
- 55:59Victory.
- 56:00We'll only make four phone calls and we made an appointment when he's normally doing 280.
- 56:05Yeah.
- 56:05And so then you showed him how to have success.
- 56:08Absolutely.
- 56:09And you didn't say you suck at converting appointments.
- 56:12Your phone calls are off.
- 56:13You showed them how to have success.
- 56:15So what Shelby just did there, a lot of people are listening, going, okay, yeah, that's amazing, but I don't have time.
- 56:22All right.
- 56:22Let me help you.
- 56:24Let me well, let me tell you why you have time to.
- 56:27Your obituary is not looking good.
- 56:28It's not looking good at all.
- 56:30Because does that take time?
- 56:31Does it take practice?
- 56:32Absolutely.
- 56:33Does Shelby have plenty of other things he could do in his day that'll fill it?
- 56:37Absolutely.
- 56:37And if he doesn't tell it how to fill the time, it will fill itself.
- 56:42You know, we've all been worn plum out at the end of the day, whether we've sold or serviced any cars or not.
- 56:48You're going to be worn out either way.
- 56:49Either way.
- 56:49So you might as well be the most efficient.
- 56:51So I do want to pause here and tell you while that is a hidden multiplier that most people miss, most people miss having one-on-ones and training the actual conversions because they say they're too busy.
- 57:06Let me show you this cost.
- 57:08We have 41 salespeople.
- 57:09Okay.
- 57:1041 salespeople.
- 57:12So let's just say Shelby was over 10 of those.
- 57:15If he doesn't take the time to get them trained right in the correct verbiage on those 10, those 10 will not convert at a higher rate.
- 57:27They'll be blowing through their to-dos.
- 57:30So then you won't get the output on the scoreboard that you're looking for.
- 57:34So by investing the time, investing the time in those 10, those 10 right there, you can double the conversion rate, if not triple, over the phone.
- 57:46Times 41.
- 57:47Times 41.
- 57:48And it's a crazy stat that we look at, and you have all your metrics pulled up, but I'll just go off of the salespeople based on their goal.
- 57:55We go over that every Monday, how they're trending.
- 57:57Yep.
- 57:57And the we have an average sold per salesperson per, you can see it per person, but you can also see it per store.
- 58:04So you can kind of see, hey, what's the noise and what's going on?
- 58:07We had a variance of a store's low on this last Monday, you know, which would have been about the halfway point, a low of 3.1 cars sold, and a high of 7.8.
- 58:20So you had one performing in double that.
- 58:23Yes.
- 58:24Yes, you really did.
- 58:25So like so far this month, just at the halfway point, we've made 4,600 phone calls.
- 58:294,600 phone calls.
- 58:31And if you don't have your verbiage right, you know their KPI is to convert it to 10% calls to appointments.
- 58:37Yep.
- 58:37Without coaching, that goes to 5%.
- 58:41So the difference in appointments there from 5% to 10% is over 200 appointments already in the month.
- 58:52At a 50% show rate is 100 appointments there, and then 50% of those who deliver, that's 50 additional sold.
- 58:59And that's just on phones.
- 59:00If you did the emails and the text messages, it would be even more.
- 59:03The number would be even like so.
- 59:05The reason I paused right there is you can't afford not to invest time into those that are producing.
- 59:15And we started this whole podcast in like, how do I figure out which bite I take?
- 59:21One of the things I coach managers on.
- 59:23So when you get your list of to-dos, I want you to rank them not by what you feel you should do first, not by what's easiest to do first, but by what affects more people the most.
- 59:36If I make this decision, it affects one person.
- 59:40If I make this decision, there's two people waiting on me for that decision.
- 59:44If I do this, I have 41 people it affects.
- 59:49If I don't go over role play in the morning to make sure they're battle tested and the words that come out of their mouth, either via text or phone or in person, aren't sharp and ready to go, the multiplier is times 41.
- 1:00:02That has to be at the top of the list.
- 1:00:04It's huge.
- 1:00:04You got to rank them.
- 1:00:05You do.
- 1:00:06You do.
- 1:00:06I think that's super big there.
- 1:00:08Think about this.
- 1:00:08The business that finds the number and they manage it every single day are the ones that stop being surprised at the end of the month.
- 1:00:17They know exactly where they're gonna end up.
- 1:00:19Where they're gonna end up, right?
- 1:00:21And I was something I was talking to a super wise guy that is metric driven 1,000%.
- 1:00:28And he said, we've got it so figured out, and he's got 35 plus different rooftops of companies of all different facets.
- 1:00:35He said, generally by two to three days till the end of the month, I can tell you exactly almost to the dollar where we will land because we have our metrics on check and I know that everyone's watching those and I know what the performance is.
- 1:00:48They're not surprised, right?
- 1:00:50Because they're making adjustments in the on the second of the month or the fourth of the month or the twelfth of the month.
- 1:00:55You should never be surprised of an outcome.
- 1:00:59And even when we have an off month, we've we've known it.
- 1:01:04You could see it.
- 1:01:04We could see it.
- 1:01:07I don't want to accept it.
- 1:01:09You lose a Super Bowl.
- 1:01:10Like every single year somebody loses a Super Bowl.
- 1:01:12That's right.
- 1:01:12That's right.
- 1:01:13Right?
- 1:01:13And they see it.
- 1:01:14They see that they're down on points.
- 1:01:16Yeah.
- 1:01:17And they make adjustments, they make adjustments, and they make adjustments.
- 1:01:20Yeah.
- 1:01:20They at least give it effort.
- 1:01:22You never, never be so pro that you just walk off the you're adjusting to try to minimize.
- 1:01:28Minimize loss.
- 1:01:29That's right.
- 1:01:29Or, you know, maximizing that last push.
- 1:01:32Yeah.
- 1:01:32That last push there.
- 1:01:34But but you you know.
- 1:01:35And if you don't know, you just got your blinders on.
- 1:01:39You need to do a quick checkup if you don't know.
- 1:01:42That means you're not paying attention to the whole situation.
- 1:01:44What you're doing is you're doing the physical task or labor in your business because it feels good and you feel productive, but it does not have a multiplication factor.
- 1:01:56And your team needs you to do different.
- 1:01:58No doubt.
- 1:01:58They're counting when you think of this.
- 1:02:00The goal tells you where you're going.
- 1:02:01Yep.
- 1:02:02The daily activities tell you if you're actually going to get there.
- 1:02:06I love that.
- 1:02:07And I was going to talk about, you know, we we talked about aviation and cruise ships.
- 1:02:11I think about getting in a car.
- 1:02:13If we're going to drive, and let's say our goal is to drive out, let's drive out to Moa, to Utah.
- 1:02:18And let's let's act like we don't have GPS, let's act like we don't have phones.
- 1:02:22Let's act like they didn't even put signs up on the roads that you're on.
- 1:02:27Okay.
- 1:02:28And you're just hoping, going off a gut feeling that you're going to get there.
- 1:02:32You're not getting there.
- 1:02:33I mean, your roadmap, your big atlas isn't even going to do any good because if we don't have any signs on the road.
- 1:02:38So the the game plan is we're going to get to Moab, Utah, and we're going to go through Oklahoma, we're going to go through Kansas, cut through Colorado because we like the scenery there.
- 1:02:50Then we'll get into Utah and we'll go north.
- 1:02:52All right.
- 1:02:53So that's the game plan.
- 1:02:55The checkpoints along the way are the road signs, the GPS, the making sure we're staying on track.
- 1:03:03So you need all those if you're going to get to the goal.
- 1:03:06Yeah.
- 1:03:06Now you're going to wake up on the other coast.
- 1:03:08It's fully.
- 1:03:09I mean, if it's me, I'll be in Florida.
- 1:03:10I'll be thinking my gut was right.
- 1:03:12We'll cross over the Smoky Mountains.
- 1:03:14And well, is that the Appalachian or is that the Rocky?
- 1:03:16Don't know.
- 1:03:17It's so important.
- 1:03:18Okay.
- 1:03:18I got a couple of questions for y'all.
- 1:03:19We've we've gone over this, but then anything else you see that could help you adjust.
- 1:03:24So um, Matt, what are some of your daily goals to help you drive the company?
- 1:03:29I'm glad you asked this.
- 1:03:32One of my favorites is this saying that I have with managers.
- 1:03:38Hey, go around and make sure that you reset any tripped breakers.
- 1:03:42I love yeah.
- 1:03:43I love that.
- 1:03:43What I'm talking about there is employees.
- 1:03:46Go around and make sure the producers in your department don't wait till three o'clock in the afternoon or 11 o'clock.
- 1:03:52Go around and see if any of them, if their head's not in the game.
- 1:03:55Yep.
- 1:03:55And that breaker won't, that outlet doesn't have any power if the breaker's tripped.
- 1:04:00Yep.
- 1:04:00The production out of your employee isn't going to have any production if their head's not in the game and they're not focused.
- 1:04:06Yes, I love that.
- 1:04:07It's good.
- 1:04:07Okay, Shelby, how do you teach the sales team about the importance of daily activity?
- 1:04:12So getting the rubber to meet the road is showing them their metrics of previous and then helping them have success in their daily activities, whether it be helping on the phone calls, helping close a deal, helping on the numbers, helping them have success, and then reversing that and say, here's your activities.
- 1:04:33You had a big day, you sold two, you sold three, you sold four.
- 1:04:37Now let's look and see what got you there.
- 1:04:39And so if I can show them what got them there, the recap of that, and then I ensure them, hey, it is so important.
- 1:04:47I know you don't like making phone calls, but you do love selling cars.
- 1:04:51In order to sell cars, you have to have made those connections.
- 1:04:55And so I think by showing them proof, I show them the importance of daily activities.
- 1:05:00I like it.
- 1:05:00That's good.
- 1:05:01Yeah, that's huge.
- 1:05:02Hey, great episode today of diving into getting a hold of the elephant one bite at a time, one degree at a time, one activity of a time, keeping it where it's visual and working it every single day, knowing where your business is going, where your team's going daily.
- 1:05:19Because if you don't know where they're going, there it's going to completely throw you off.
- 1:05:23Completely throw you off there.
- 1:05:25So big deal there.
- 1:05:26Hey, always check out our specials at Lewis Superstore.com and all of our up-to-date episodes were of Crossroads Conversation Podcast.com.
- 1:05:36Hey, thanks for joining us today, and we hope you enjoyed this episode.
- 1:05:39Make sure to give it a like, share it with your friends and family, visit our website, and send us some questions.
- 1:05:44We want to know what you'd like to hear, who'd you'd like to hear from, and what you want to see, or maybe even some questions for us to answer about either the automotive industry or just business in general.