Boy, I’ve been guilty of this….

/in , /by

From the Harvard Business Review:

 

Overcome Your Team’s Resistance to Change

Many teams suffer from “active inertia” — the tendency to seek comfort in the old ways of doing things, even when the world around you is changing. To help your employees meet the moment, there are two techniques you might try.

• The “foot-in-the-door” technique. Start by asking people to do something small or easy. By agreeing to the request, and then meeting it, they develop a sense of commitment and confidence that makes them more enthusiastic about agreeing to the next (bigger) request. In other words, the path to big change is paved by lots of small steps and little bets — each of which builds on what’s come before.

• The “door-in-the-face” technique. With this approach, you ask your employees to do something even more demanding than what you actually have in mind. The idea is that by setting aspirations that seem extreme, you can push people to perform at a level — and creatively solve problems — that would have otherwise felt unachievable. This often pushes people to imagine innovations or work-arounds they wouldn’t think of in the normal course of business.

This tip is adapted from “Persuading Your Team to Embrace Change,” by Bill Taylor

Leadership In Action

/in , /by

From my friend Rhoda Kreuzer:

Leadership In Action
Many companies do not make it to their third-year anniversary. When studies have been done on those companies, many of them quit just before they were about to turn the corner and be successful. In fact, most of them quit because of a debt of about $49.00. They gave up because it was hard work and there was no guarantee of success.
The reality is that there is never a guarantee of success at any point in your leadership journey. Just about the time you think you know the answers, the questions change. Just when you feel like you have the ideal situation, circumstances change. Life is about managing change and pushing yourself to continuously pursue the dream. Dreams are invaluable and we should never exchange them for tinsel.
There is no quick path to success.
It takes planning, commitment, and a determination to keep adapting to new opportunities and challenges that come your way. Every leader would prefer to have a smooth, easy path forward, but that is a dead-end that will not lead to true success.
It is the bumpy, chaotic path that leads to deeper understanding and true knowledge of what success is all about. When you think about success, it is not defined by how much you make or how many possessions you have, but rather the impact you have had on others. Success is about making your sphere of influence a better place for others.
Impacting others is messy, it is complex, and there are no easy answers on how to contribute in meaningful ways to those we lead. However, there is no award or reward that is more important than having others become shining stars because of your leadership. Leadership causes others to grow and be better than they were before we led them.
Begin 2022 with a plan to continue to challenge yourself, stretch into new areas, embrace risk, and never accept the easy path that provides false security, false recognition, and false promises. Let’s seek out true success and plan for the best year yet!
Partners In Action | 967 Spaulding Ave SE | Suite F
Ada, MI | 49301

Acquisitions, an introduction, Part One

/in , /by

Acquisitions are the fastest way for a company to grow in our business, but it also can be the most expensive.  The immediate influx of revenue producing customers with equipment in place can be a real springboard to healthy growth.   The danger of valuing the purchase incorrectly can be a danger to the long-term profitability of the buyer, the appropriate return to the seller, and the experience of the employees and customers of both buyer and seller.

As I have stated before, I am not a CPA or an attorney.  I am a solid waste professional who has been a participant in a number of these transactions as both a buyer and a seller.  I have often said, a successful transaction may be defined as the buyer feels he paid more than he wanted, the seller did not get what he had hoped, but they both walked away shaking hands and content with the outcome.

 

There are no two acquisitions alike, just as there are no two companies alike.  Some of the variables involved in transactions such as these are:

  • Financial health of the buyer and seller,
  • What is the local competition?
  • What is the level of synergy between the buyer’s and seller’s work?
  • When was the last rate increase?
  • What is the local disposal situation, public or privately owned?
  • Is there any “flow control” in place?
  • Is there real estate involved?
  • Is equipment such as containers included?
  • Is there an adequate fleet of trucks to perform the work included?
  • What is the seller’s safety record and what safety plans are currently in place?
  • Is support infrastructure such as mechanics, a garage, shop tools, office, and equipment part of the deal?
  • Will sellers or other key employees be staying on to help run the expanded business?
  • Will rank and file employees be needed and offered jobs at the buyer’s company?
  • Is the customer base, residential, commercial, rolloff, municipal contracts?
  • What percentage of the customer base is secured by some kind of contract or agreement?

 

In negotiating the acquisition, there are two primary elements, Terms and Price.  Some variables that can affect Terms and Price are:

  • Is the seller willing to hold a note for the financing of the business, and if so, what terms?
  • What amount of down payment is expected?
  • How will the Accounts Receivable of the seller be adjusted, collected, and accounted for?
  • What provisions of a non-compete agreement will be negotiated?
  • Will there be a revenue guarantee made by the seller as a stop loss for the seller?
  • Who will assume the indebtedness on any equipment?
  • If only a portion of the seller’s business is for sale, what guidelines are in effect to assure fair competition between buyer and seller after the transaction?

 

Next time, we will look at some of the methods of valuation that are common in our industry.

Grow a Healthy Organization and Culture

/in , /by
Struggling with strategic planning? How to get from where you are to where you want to go? “We don’t rise to the level of our goals, we fall to the level of our systems”, James Clear in the book “Atomic Habits”. Turn off the TV for an hour and listen to this podcast.
https://www.entreleadership.com/blog/podcasts/craig-groeschel-strategic-planning

What Every Waste Company Needs.

/in , , , , , /by

What Every Waste Company Needs.

Communications

  • Develop a strong, consistent brand.
  • Communicate the company Mission Statement to customers, community, and employees in a clear and concise manner.
  • Have a concise message to customers, team members and the community.
  • Commercial Service Agreement that is fair and easy to understand
  • Website maintenance
  • Social media monitor and responsiveness
  • Sales and Marketing

Operations

  • Emergency Response Plan
  • DOT driver qualification files
  • DOT driver alcohol and controlled substance files
  • DOT substance abuse testing
  • Separate personnel (non – DOT) files for each driver
  • Regular driver’s / safety meetings, complete with meeting agendas and attendance documentation
  • Operations Safety Manual
  • Light Duty / Return to Work Program
  • Inventory control of carts and containers
  • Identify and track operational KPI’s (Key Performance Indicators)
    • Lifts per hour.
    • Lifts per mile.
    • Miles per gallon.

 

Fleet Management

  • Pre- and Post-trip inspection procedure
  • Preventative maintenance schedule
  • DOT annual inspection schedule
  • Truck spec files for each vehicle
  • Maintenance files for each vehicle
  • Shop Safety Manual.
  • Identify and track fleet KPI’s (Key Performance Indicators)
    • Preventable road calls.
    • Trucks are serviced when they are scheduled.
    • Repair costs per unit.
  • Have a Predictive Maintenance mindset.
  • Parts inventory control and ordering system.

 

Administration

  • Employee Handbook.
  • Identify and track financial KPI’s (Key Performance Indicators).
    • Monthly billing totals by type.
  • Company Calendar, what gets done when, billing, collections,
  • Procedures manual.

 

Leadership

  • Provide and communicate a culture that is transparent and reflective of the company’s Values, Mission and Vision
  • Core Values – What makes us uniquely us.
  • Mission Statement – What we do and how and why we do it.
  • Vision Statement – Where we are going.
  • Goal setting in the other 4 areas.
  • Industry and Government relations and involvement by City, County, State, Region
  • Financial responsibility as it regards pricing, vendor relationships.
  • Exit / Succession plan

The Game of Work by Charles Coonradt

/in , , , /by
A book I have been recommending to all of my clients recently is “The Game of Work” by Charles Coonradt. I learned about this book at a Waste Expo seminar presented by a manager form Republic Services, and contains valuable information any waste company large and small can benefit from. If you want a fresh approach on the old management adage, “You can’t manage what you can’t measure”, this is the book for you. I’ve often said success in our industry is measured in inches and feet, pounds and yards, minutes and seconds. Transforming numbers into fun and challenging objectives is what this book is all about.
 
Available on Amazon:
 
https://www.amazon.com/Game-Work-Charles-Coonradt/dp/1423630858
 
 
Read a great review here:
 
http://geekswithblogs.net/bbrelsford/archive/2005/03/13/26213.aspx

Be Grateful for Your Team

/in , /by

From my friend Rhoda Kreuzer at Partners in Action, Inc.

 

 Consider the gift your team gives to you every single day. They show up and contribute their talents and abilities. They do not have to work for you. They could work for someone else and perhaps even be paid more.

So why do they stay? Studies show it is not for the money but rather because of their relationships made with the team, and for the opportunity to grow and learn. Every person wants to know that they are important to you and the team, that they are making a difference. This is so simple that we often overlook it and instead throw money and benefits at retention. Yes, everyone loves a pay increase or additional benefits, but those are not the only reasons why they stay.

When was the last time you recognized or praised your team? Studies show that our team members need to hear feedback every seven days. Many leaders feel like that is too much to accomplish but think of the alternative. If they are not listening to your voice, they will turn to others for input, concluding that you do not care.

You can put out fires or you can prevent them. Your team members are truly your greatest asset. Demonstrate your gratitude for their accomplishments by providing positive and genuine feedback on a regular basis. They will reward you with strong performance and engagement. In short, they will become the team that exceeds your expectations and the team with whom you love to work with.

A Failure to Plan is a Plan to Fail!

/in , /by
One of the biggest things small businesses fail to do is PLAN. You need to plan for any eventuality and be ready to respond to benefit your company. Here is a lesson you will remember from a Navy SEAL about being ready and being prepared you need to hear. After listening to this, carve out some time, meet with a trusted friend or colleague, and play “What If…”, thinking up scenarios and responses.
https://youtu.be/dJYdTobSTsY