Utilizing Leverage

The firm had a milestone on Wednesday. For the first time we ran simultaneous sales presentations at different firms.

Doesn't sound like much does it. But it is 'much' indeed.

Technical skills are trained in. I insist that my people get back in the classroom a lot. Certifications, seminars, webinars everyone in the company on a regular basis. I go so far as to say that the firm will pay for 50% of all the costs associated with ANY type of course (leading a certification or other 'status') in any subject. (I think being a certified scuba diver - or whatever - makes you a better support person/litigation consultant/hardware technician/administrator) We have a culture of perpetual learning around here.

The 50% that the person has to pay is their commitment to themselves and their ongoing development. It also makes them seriously consider if a course here in Toronto verse same course in Liverpool is a 'better value' since some of the spend is theirs. It cuts down on the frivolous requests.

So we are all training, growing, learning. What made the simultaneous sales presentations important was that in the past I was the one to 'make it rain'. I setup and executed the presentations. My experience, my antic dotes, my skill to communicate the importance and value of the idea we were presenting was the 'secret sauce' to getting the relationship with the client going.

A firm with one 'communicator' is limited. If the firm is set up to be a monument to the 'communicator's' ego then fine, it goes so far but no further.

Don't get me wrong, I am not without ego, but sopping to it is not the firm's raiston-d'etre.

So I was thrilled when my highly skilled team started sprouting out as communicators in their own right.

They know the firm's values, its mission, its systems, its goals. They have experience, antic dotes and skills to present the 'value proposition' to the potential client. They are highly compelling and trust-creating people.

Our firm is maturing from being an extension of my 'light' to having many 'points of light', all valuable and strong.

So what's the title mean?

In the industrial age and in the first 'information age' production was about buying a costly machine and running it to generate 'stuff' that then generated a stream of income. $100,000 capital investment now for 10 years of $20,000 per year return. A good R.O.I. (return on investment).

But now the machine costs $1,000 or $100. It's disposable and will last for maybe 8 months or 2 years , maybe, before its obsolete. Its the PEOPLE that are now the true investments. It is their skills and abilities, their willingness to adapt and think, that's the way to returns.

If people should be the 'focus' of investment business owners think they have a problem. Unlike machines we don't own people. We can invest in them and they can take those skills and WALK OUT THE DOOR - R.O.I. ZERO.

Its true - you got me. You win. Better to treat people like 'beasts of the field', strap them to the low skill, low results 'plow' and when one disappears grab the next one and strap it on.

Firms that behave like this have EMPIRICAL evidence that they can't change their methods. They can PROVE that if they invest in people the people will leave! 'We taught Sally to enter 2,000 invoices a day and after only 6 months she LEFT! Q.E.D" So forget it, no training, its a waste of money since people will grab the training and leave for better jobs as fast as they can and our investment in them is WASTED. R.O.I. ZERO.

Sally was facing a lifetime of 2K invoices a day, strapped to the plow with no growth, no opportunity. I would have left too.

There are two problems in a firm like this. One they have constant CHAOS because of staff churn and two the few people that actually know what they are doing and they are over worked, over stressed, frustrated and usually BITTER because they get no meaningful HELP.

The owners of the firm are idiots. They have created a NO LEVERAGE model. Their key people are cracking because their skills and resources are not being leveraged. And they employ, albeit at low cost, many 'unskilled' people who's potential is being wasted, who are uncommitted to the firm and are just 'biding their time' until something better comes along.

I had one firm tell me, 'oh we can't pay Suzy for working on weekends at an hourly rate, she will get used to the money, not work during the business week and milk us. And besides she will be spoiled with the increased pay and we will eventually have to pay her more'. STUPID. Take the opportunity to change Suzy's compensation to more 'results' oriented work. Let her MAKE HERSELF WORTH TWICE AS MUCH TO THE COMPANY if she can, and pay her a portion of the gains. So what if she increases her take home pay by 50% - good for her - if she does twice the work the firm MAKES A PROFIT ON THE DEAL.

Every person in the firm has to be viewed in terms of their potential. Receptionist to managing partner, everyone. And everyone MUST be on a path of development. The guy in the mail room needs to know that this is NOT a dead end job, because if he does then his potential is WASTED.

Our mail room guy needs to know that he can follow a path up thru the organization and the firm's investment in him will prove it.

Secretaries grow to become Paralegals. Skills go up, pay goes up, their value to the firm GOES UP.

The firm has to clearly show the path and move each person along it.

But wait - 'who will do our mail room work when our mail room guy becomes a field technician? We can't afford to lose him in this position we need our mail handled?' STUPID. Who would you rather 'take a chance' on hiring - a new unknown mailroom clerk or a new unknown senior paralegal? Which one can screw up and cost the firm the most?

'No one wants to work in our mailroom, its boring and turn over is high'. STUPID. People that are shown the path for their growth and professional development will walk thru rings of fiery boredom to better themselves knowing the prize in within their grasp.

'Some people just don't want to progress. We can't hope to have a firm of 'go getters''. STUPID. YOU BETTER HAVE A FIRM OF GO GETTERS OR YOU ARE DEAD. What industry example would you like? How many dinosaurs have gone extincts this year alone? DUMP THE 'NON-GO-GETTERS' NOW.

MESSAGE

The skills and abilities your people possess is your most precious resource. R.O.I. on their skills and abilities is OFF THE CHARTS. When they know how to handle a situation without supervision you have LEVERAGE. Your skills and abilities have expanded. YOU WIN.

People who are growing in skills, opportunities and, as the fruits of their growth, income; who contribute their efforts to a organization that actively nurtures them and helps them progress - those people will not be going anywhere soon. Those people are 'keepers' that will reward your investment in them many times over.

So start thinking about your PEOPLE as your investment capital. Invest in them, show them opportunities and advancement and they will reward you with returns beyond you wildest expectations.

Try it!