How to Develop Your Superstar Employees

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Even if you have only two or three employees, developing the skills of those you want to keep long-term is essential to the success of your business.

How to Develop Your Superstar Employees
One of your core responsibilities as a manager is to develop the next generation of leaders. How can you help your superstar employees fulfill their potential? Here are three strategies.

  • Measure their progress against key leadership competencies. These include team management, relationship building, and communication. Identify where your high potentials are already strong and where they can continue to grow.
  • Help them boost their emotional intelligence. Specifically, focus on their self-awareness and empathy. Self-awareness can be learned through feedback and assessments, and empathy can be developed by focusing on inquiry, practicing active listening, and acknowledging different perspectives.
  • Encourage a learning mindset. Becoming a leader requires growth beyond technical expertise. Encourage development of contextual intelligence: the ability to understand and operate in multiple contexts and adapt one’s style and approach accordingly. This means nudging high potentials to work and learn outside of their comfort zone.
This tip is adapted from “How to Help Superstar Employees Fulfill Their Potential,” by Anthony J. Mayo

Tying the Past to the Present and Future

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From my friend Rhoda Kreuzer at Partners in Action:

 

As you study people’s focus in life, many focus on our history and what has occurred in the past.  These individuals look to the past to make decisions today.  This approach allows us to predict outcomes of our decisions and actions today.

Others will focus on the present.  They look for current trends and issues that need to be solved.  This approach allows us to be contextual and provide timely solutions as leaders.

Still others look to the future.  They anticipate what we need to meet future needs successfully.  This approach moves us forward and creates vision.

All three are critical for strong leadership.  We cannot lose the lessons of the past.  Those historical lessons help us not repeat mistakes that have been costly.  For example, there are those who want to rewrite history and remove all incidents of our country.  We must admit the wrongs of the past or we will continue to experience systemic racism.

Collectively, we also must pay attention to the needs of the present.  We cannot change the past, but we can make a difference today.  For example, we cannot change the fact that slavery occurred, but we can stand up for justice and speak out when issues arise.  Being an advocate and seeking to create an equitable society are ways we can speak to current events.

Finally we must look to the future and create a vision of what could be possible.  For example, Martin Luther King Jr.  envisioned a better tomorrow when he said, “I have a dream”.  It wasn’t fulfilled yet, but he was able to envision the future and what it could be.

Leaders must believe in a better future and provide hope and inspiration to reach our goals.

Listen to the lessons of the past, address issues of the present, and dream about what could be.   Having a complete view will provide leaders wisdom on how to lead others.

From the Harvard Business Review: Prevent Negativity from Taking Over Your Team

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Prevent Negativity from Taking Over Your Team
As a manager, you need to constantly be taking the pulse of your team’s collective emotions—whether they’re frustrated with a new strategic direction, anxious about a leadership transition, or upset because of recent layoffs. How can you prevent these negative emotional dynamics from festering on your team? First, to the extent that you’re able, modify the situation that’s at the source of the negativity, and express to your employees that you recognized their collective emotion and made a change. At the same time, reappraise the underlying situation that’s brought on the negative energy. Can you reframe it in a way that inspires hope and positivity? Next, galvanize your team by returning its focus to a collective goal or priority. Finally, practice “response modulation.” This involves controlling your outward expression of your own emotional experience in order to set the tone for others. Your employees are looking to you as a signal of what they should feel. If you maintain a positive and authentic posture in response to a challenging situation, you can positively influence the group’s collective emotion.
This tip is adapted from “Managing Your Team’s Emotional Dynamic,” by Amit Goldenberg

What to Do When a New Hire Isn’t Working Out

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What to Do When a New Hire Isn’t Working Out
Not every new hire pans out. If you’ve onboarded a new employee who’s struggling to hit their targets, how can you decide whether to invest in them further—or whether it’s time to terminate their employment?

  • Reevaluate their onboarding experience. After their first month, ask yourself: Did you set clear expectations? Have you given them the tools necessary to succeed? Have you been available and accessible? If you identify gaps in their onboarding experience, it’s your responsibility to fill them in and chart a more successful course forward. Reset expectations, reopen the lines of communication, and ensure they have all the tools and support they need to succeed.
  • Communicate with your manager. Keep your boss up to date on your concerns. This way, you’ll not only get the benefit of their advice and support, but you’ll also ensure they’re not caught off guard if you end up deciding that the new hire isn’t the right person for the job.
  • Check your gut feeling. Knowing what you know now about the role and the employee, would you enthusiastically rehire this person for the same role? If you had a whole team made up of this employee, how strong would it be? If they walked into your office tomorrow and quit, would you be relieved?

True Leadership

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From my friend Rhoda Kreuzer:

 

Many leaders feel their success is determined by sales revenues, how few problems they experience, or how popular they are. These things are not bad, but they do not define true successful leadership. Instead, they are counterfeit definitions of success that look good on the surface while struggling to sustain any growth.

 

Authentic leadership instead is based on our influence, the results and momentum achieved, and the culture created. It is not quick and easy to go the authentic route. The real leadership pathway is harder and takes far more effort. It demands more from a leader and forces us to ask hard questions.

We have never needed true leadership more than we do today. There is more insecurity in safety, health, and the economy than ever before. All of this insecurity and change produce anxiety and the desire for a quick answer. The reality is that we do not have quick answers, but we can guide our teams through those changes and bring about long-term good. As leaders, we must speak into these challenging times.

 

True leadership means displaying courage, integrity, and being mission-driven.

 

It is always easy to discuss being a true leader, but hard to do. True leaders do not run from challenges, or from obstacles, or change. Instead, we commit ourselves to a mission and purpose that compels us to press forward and challenge our teams to excel. The incredible joy of succeeding in spite of risks and issues is one that forges teams to work together.

 

Our challenge is to avoid settling for counterfeit Leadership which is cheap and shallow. These leaders are burning out at massive rates and leaving an empty, discouraged feeling at the end of the day. Counterfeit leadership feels good because it is quicker to achieve but falls off rapidly when stress comes our way.

 

True leadership is deep and lasting. Which will you choose? Let’s be true leaders who will impact those we serve and sustain success for the future.

KEY PERFORMANCE INDICATORS, MEASURING WHAT YOU MANAGE, COMMERCIAL COLLECTION.

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The next in the series, “Measuring what you Manage, Key Performance Indicators” deals with Commercial Collection.   As a recap, what is a KPI?  KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific goal. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions.

As you collect data and analyze the numbers, these numbers will talk to you if you are willing to look and spot the trends that they are showing you.  Now, many of these reports are available from the many software providers serving our industry.  If not a standard report, your provider may be able to design a custom report for you, making this data collection less daunting.

 

COMMERCIAL SERVICE KPI MEASUREMENT

Residential and commercial collection differ in a few but important ways.  While residential waste streams are consistent from customer to customer, commercial collection introduces many variables into the day-to-day operation such as container size, service frequency, distance between stops, material compactability, material density, space constraints for material storage and time of day service requirements.  All these variables influence efficiency, productivity and pricing.

Commercial collection technology varies greatly from urban, suburban and rural areas.  Old cities have particular demands due to lack of space and access for containers of different materials, where suburban communities can better accommodate the extra space needed to store materials for longer periods to provide the optimal collection schedules.  The economies of fewer pickups with larger containers have a significant impact on the cost to the waste generator.

While most people in our industry think front load technology when it comes to commercial collection, the same principles can apply to rear load and side load commercial collection as well.  Many operations have dedicated residential and commercial routes, however in many suburban and rural areas mixed residential and commercial routes exist to be able to collect both residential and commercial customers on the same route with the same truck.   When a particular KPI (Key Performance Indicator) concept is different between the different collection technologies, I will note the differences.  Many KPI’s for commercial collection are the same as for residential collection.

 

Time.   The one thing all of us are given equally is the gift of time.  How we use the time given to us is especially important when running our business.  Week to week and month to month consistency is difficult with commercial routes due to the number of variables (traffic, weather, special pickups, etc.) that change daily, but some trends can be seen while keeping these variables in mind.  Route time, travel time, wait time at disposal sites can, with some effort, be tracked.

Miles.   At its core, the garbage business is a specialized TRANSPORTATION company. Tracking the number of miles traveled during the day has a direct correlation to many other elements you should be tracking such as Operating Cost per Mile,  Miles per Gallon, Average Miles per Hour, Stops per Hour, and others.

Average Miles per Hour.  Dividing the miles driven by the number of hours needed to complete a route.  Not a considerable number by itself, but helpful in identifying trends over a period of time.

Fuel.  Best done if each day starts with a full tank.  Record fuel usage daily.

Miles Per Gallon.   Divide number of miles by gallons of fuel used.  This is a great way to track efficiency of truck and driver’s habits.  Also, a way to check for fuel theft from the truck’s tank.  If MPG shows a drastic decline, either fuel is disappearing or there may be a mechanical issue with the vehicle.

Total yards collected.   This would be the total number of yards collected, not necessarily based on container yards.

Total yards disposed.  Even if you pay disposal fees per ton, recording yards disposed will help you track your trucks compaction ratio.

Total tonnage disposed.   Easily determined by landfill tickets.  Toonage between weeks may or may not be consistent, depending on the specific characteristics of your specific route.

Average tonnage per yard.   Dividing tonnage collected by the number of yards disposed will show total load density.  If day to day tonnage per yard varies greatly, perhaps there are some accounts whose density needs to be reflected in their pricing.  Deciding what accounts are outside the norm may take a little investigative work.   Look at those ethnic restaurants your salesperson picked up cheap!

Stops or yardage per mile.  Dividing the number of stops or yardage by the miles driven is a good measure of the density of your work.  A goal of every waste collection company should be to build and increase customer / route density.  When density increases, its good!  If density decreases, you need to dig deeper, find what’s going on, and correct it as soon as possible!

Software generated reports.   If you are using an industry-specific software program (and why wouldn’t you?)  many come with standard productivity reports that will combine data from your billing, routing and operational data base.  In time, these numbers will begin to talk to you and tell you things about your business you never knew.  You will see trends developing which will make you ask “why?”.   Most software providers will customize a report for you if you know what data you are looking for.

So, if this sounds like a corporate type, make work, terrible waste of time to you, that’s fine.  But then, ask yourself and feel free to tell me in the comments, what are you doing to gauge productivity, hold your team members accountable, and assure yourself that you are running an efficient, profitable company?

vantholenassociates.com

#afriendinthebusiness

Measuring Maintenance Costs

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Measuring Maintenance Costs
When running your business, can we all agree that it’s better to be proactive than reactive? And since we are going to be focusing on measuring maintenance costs, I believe this is one of the most crucial areas of proactivity. “But Ed”, you say, “I just need to get out there and pick up the trash. If the truck breaks, I fix it. What is there to measure?” I’m glad you asked!
Maintenance costs can comprise 15-20% or more of your total operating expenses. In a time of rapid inflation where we are trying to save money anywhere possible, maintenance is an area that can be controlled, if you are willing to take the time to do so. Whether you are using QuickBooks or some other form of software to manage expenses, utilize the categories and track your costs.
Preventative Maintenance is the easiest of categories to manage if you have your equipment on a regular PM schedule. If not, we can help with that too. When performing regular PM services, keep track of the potential problems that you find while underneath greasing the chassis and changing the oil. You may find a brake about to cam over, a hydraulic hose about to burst, broken leaf spring, or a bulge in a tire. These are all things that could result in a roadside breakdown. When you catch them in advance, you have saved yourself untold amounts of time and money. It’s almost like finding $20 bucks in your pocket!
Track all your repairs and why they are being performed, whether they are PM’s, roadside breakdowns, driver inspections or warranty repairs. Once you have done that, you can begin to recognize patterns. For example, if you have a lot of breakdowns on the road, what are they? Tires? Hydraulic lines? Maybe those are some areas that need more attention during a scheduled PM service. Train your techs to look for these things during a service and track that as well. A hydraulic line replaced in the shop during a routine service is like money in the bank compared to having it blow out at the farthest point on the route from the shop!
Now that you have a system in place and can track the patterns, there is a formula we have developed to measure how well the maintenance team is doing. You can compare month to month to track your progress and even use it as an incentive. If you would like more information on this system, message me or give me a call! I would enjoy talking with you and getting to know you and your business.
Ed Dryfhout
Van Tholen & Associates
ed@vantholenassociates.com
616-813-6600
vantholenassociates.com
616-813-1657

KEY PERFORMANCE INDICATORS, MEASURING WHAT YOU MANAGE, RESIDENTIAL COLLECTION

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Over the next several weeks, we will be presenting a series about Key Performance Indicators  (KPI) for specific areas of the solid waste industry.  The information we will provide is not Master’s Degree level stuff, after all, we are just garbagemen as well!  What it will be is a few simple data points to track and analyze the performance of your company in the past, and set goals for future success.  We will be focusing our efforts in these areas:  Residential Collection, Preventative Maintenance, Commercial Service, Equipment Cost, Rolloff Service and possibly more!

First of all, what is a KPI?  KPI stands for key performance indicator, a quantifiable measure of performance over time for a specific objective. KPIs provide targets for teams to shoot for, milestones to gauge progress, and insights that help people across the organization make better decisions.

As you collect data and analyze the numbers, these numbers will talk to you if you are willing to look and spot the trends that they are showing you.  Now, manty of these reports are available from the many software providers serving our industry.  If not a standard report, your provider may be able to design a custom report for you, making this data collection less daunting.

 

 

RESIDENTIAL SERVICE KPI MEASUREMENT

Residential collection service is often considered the most basic service our industry has to offer.  The relative consistency that residential service represents makes data collection and analysis easy and valuable.  While routes will change due to growth, re-routing, acquisitions and other factors, monitoring your KPI’s can help you effectively manage your business.  Here are just a few of the KPI’s you may want to track week to week, month to month and year to year.   A simple Excel spreadsheet can be used to track and compare this data on a regular basis.

 

Miles.  Simply, the number of miles accumulated by a route truck on a given day.  This can be calculated using Total Daily Miles, from leaving the garage in the morning to returning to the garage in the afternoon, or Route Only Miles, measuring from first stop to last stop.  Unless a route changes dramatically, this number should be fairly consistent week to week.   Most KPI’s can be measured using Total Daily Miles or Route Only Miles or both, depending on the conclusions you are hoping to draw using this data.

Average Miles per Hour.       Dividing the miles driven by the number of hours needed to complete a route.  Not a significant number by itself, but helpful in identifying trends over a period of time.

Fuel.    Best done if each day starts with a full tank.  Record fuel usage daily.

Miles Per Gallon.       Divide number of miles by gallons of fuel used.  Great way to track efficiency of truck and driver’s habits.  Also, a way to monitor for fuel theft from the truck’s tank.  If MPG shows a drastic decline, either fuel is disappearing or there may be a mechanical issue with the vehicle.

Number of Stops.       Simply tracking your number of stops week to week is a good place to start.  While you may not notice growth from one week to the next, a 6-month review could tell you a different story, maybe good, or maybe bad!  This number could be helpful to show you where to concentrate advertising activites.

Stops per Hour.          This is a good number to identify productivity trends over time.  Stops per hour is easily determined by dividing the number of stops on a route by the number of hours needed to complete the route.  You can use the Total Daily Hours, hours from punch in to punch out, or you can use Total Route Hours, the number of hours from the first stop to last stop.  If you run combined residential / commercial routes, this number may need additional interpretation.  If your route includes a large number of Every Other Week customers, you may need to compare routes every two weeks, so you are comparing apples to apples.

Stops per Mile.   Dividing the number of stops by the miles driven is a good measure of the density of your work.  A goal of every waste collection company should be to build and increase customer / route density.  When density increases, its good!  If density decreases, you need to dig deeper, identify what’s going on, and correct it as soon as possible!

Fuel ($) per Stop.       Measured in gallons or dollars, the usage or cost of fuel per stop can aid in determining the need for fuel surcharges or rate adjustments.   Dividing the gallons of fuel by the number of stops spreads the fuel consumption evenly across the number of customers serviced.

Pounds per Stop.        Disposal cost, like fuel cost is a major operational cost that needs to be monitored.  Simply dividing daily disposal cost by the number of stops collected will provide an AVERAGE disposal cost per stop.  If you are running mixed residential / commercial routes, this number will be less relevant given the inconsistency of volume and type of material generated by commercial customers.

Time per Stop.             Similar to Stops per Hour, this data is valuable in determining rates and keeping drivers accountable.  Best used when a route is 100% residential curbside pickup, but can be used with some modification if you are running mixed residential / commercial routes. Dividing the number of minutes to complete the route by the number of stops will allocate all time needed to complete a route evenly across all customers on that route.

Revenue by Route Report.    Depending on your software provider, a Revenue by Route Report may be a standard report included with your software.  Generally speaking, this report will take the monthly rate the customer is charged, divide in by the number of services per month and calculate the revenue that was earned from that customer.  This is a great tool to see the effect a rate increase can have on the revenue and profitability of a single daily route.

 

So, are you geeked out yet?  Don’t let all of this intimidate you, start with tracking just a few of these KPI’s, like Stops per Hour or Stops per Mile, and let those numbers talk to you.  Are there things that you track on a daily, weekly or monthly basis?  List them in the comments section!

 

John Van Tholen, jvt@vantholenassociates.com

vantholenassociates.com

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VENDOR RELATIONSHIPS

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Vendors, whether repair shops or parts suppliers, might be the difference between getting the route done that day or not. In the picture above, I was able to get back on the road and finish the route thanks to my awesome welder and wrecker companies.

Have you ever wondered why it seems like your equipment is always the last to get worked on when you drop it off at your local repair shop? Does it seem like you are not getting the best prices on your parts? Let’s talk about vendor relationships.

First off, notice I say “relationships.”  These are important people in the life of your business and should be treated as such. Imagine how your spouse or significant other would react if you only paid attention to them the moment you needed something and demanded action immediately.  Hmm, hits kind of close to home.  Hold one moment while I go order my wife some flowers… I’m back.

So how do you build a healthy relationship with your vendors?  Well, just like any other relationship, you spend time getting to know them.  Stop in at the repair shop or dealership where you want to send your equipment or already are and talk with the service manager and techs out on the floor if possible.  Get to know them and their flow of work. Bring doughnuts once in a while just for the fun of it.  That will go a long way to endearing you when you need them.  When a truck with a particularly difficult issue is resolved, have a gift card ready for the tech, if that is acceptable with the shop management, and personally thank them.  Talk with them about how they resolved the problem, and it can save you costly downtime in the future.  Most importantly, don’t “cry wolf” every time you bring in a truck.  What I mean by that is if it is not an absolute emergency, don’t portray that to the service manager.  When it is, then let them know.  If you work with them, they will work better with you.  It’s the give and take of any relationship.

When it comes to parts suppliers, the same principles apply.  Talk with them about your most common parts and how best to keep them stocked.  Work with them on how best to find the parts that are in short supply.  If you have a primary source for your heavy-duty supplies, don’t drop them if a competitor comes in a couple dollars cheaper.  Be open and honest with alternative quotes.  Present them in a non-threating way and let them know you have options and ask if they can match competitors’ prices.  I have found the most surprising discounts come when you simply ask.  That can also save you from distancing yourself from a preferred vendor over a few dollars.

So do yourself and your company a favor and spend some time building relationships, both on the job and off.  We all need each other!

If you would like more information, please contact us at:

Van Tholen & Associates

Ed Dryfhout

ed@vantholenassociates.com

616-813-6600

 

vantholenassociates.com

616-813-1657

NO GUTS, NO GLORY.  WHAT IS YOUR RATE REVIEW STRATEGY?

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To say we are in unprecedented times is an understatement.  Pandemic, war, inflation, material shortages, increased fuel cost and labor shortages are just a few of the challenges waste collection company owners and managers are facing every day.

The quote “No Guts, No Glory” was first credited to U.S. Air Force Major General Frederick Corbin Blesse.  Put simply, the saying is a call for people to attack important tasks aggressively.

Blesse stressed that aggressiveness was needed for all involved.   Without aggressiveness, it wouldn’t matter how well-trained any Air Force pilot was. He would let enemy targets slip through his fingers.  The saying has applications for both the military and everyday usage.  In the military, it helps to have accurate information so certain targets can be attacked quickly and efficiently.  In business, it helps to attack the challenges that face your company boldly and with decisive action.  A proactive rate review program must be a structured, regular, periodic activity championed by company leadership and communicated to all team members.

Since 2000, the average inflation rate in the USA has been 2.38% per year.  Over twenty years, this has produced a cumulative price increase of 67.89%!   This means that today’s prices are 1.68 times higher than average prices since 2000, according to the Bureau of Labor Statistics consumer price index.  According to Kiplinger, the forecast for 2022 inflation will be 6.3%, well over double the average of the last 20 years.  A 6.3% (or more) increase in operational costs will erase much of your company profit if left unattended.

In the past, a small company could outpace relatively low inflation simply by growing their business aggressively.  The mistake that most small businesses make is they don’t pay attention to the margin between revenue and expenses.  As a company grows, cash flow should increase but if your net profit is decreasing as a percentage of your top line revenue, you are actually going backwards!

A careful and complete study of your costs will provide an idea what your rates adjustment should be.  Compare your profit margin from pre-pandemic 2019 to 2021 and year to date 2022.  What do you see?

Don’t fall into the trap of “I can’t raise my rates, I’ll lose all of my customers!”  Better to lose some customers than your business!  Every month or quarter you delay a rate increase, you are experiencing lost opportunity (and profit).

So remember, “No Guts, No Glory” !  Be courageous when it comes time to adjust rates, and make sure your quality of service justifies your increase.    Be intentional about tracking your operating costs.  Make sure your rates provide a comfortable profit margin.

Need a strategy regarding rate adjustments and discipline?  Call us!

jvt@vantholenassociates.com

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