The Contented Cow Blog

Building Workplaces That Work

We do a fair amount of work with the hospitality industry, and to be sure, they are feeling the pinch right now. Operating on the leading (bleeding?) edge of the economy, restaurants and other food service operators tend to suffer a lot of the early pain in an economic downturn. Just ask some of the folks at Starbucks.

The current climate is especially pernicious because the very factors that are reducing discretionary spending are also causing food costs (especially dairy products and seafood) to skyrocket. As a result, restaurant operators are scrambling to take costs out of the system, and yet do it in a way that doesn’t totally alienate the guest.

Inevitably some turn to their employees, as they well should, to find ways to do more with less. But, unfortunately, the industry’s “just get it done” culture that operates fairly well most of the time can put the entire enterprise way out on a legal limb when little things like time clocks come into play. In the past month, I’ve overheard food service managers in two different chains tell employees to “get it done” while in the same breath admonishing them that, “there is (wink) no (wink) overtime.” Translation - I expect you to do it off the clock.

Unfortunately, in most cases, the person complies. I say “unfortunately” because in so doing, the fuse on this little liability, which can be a very long fuse indeed has just been lit. In some cases the person, a gung-ho employee goes along with the program, and for so long as they remain gung-ho, nothing comes of it. Many others aren’t as gung-ho or benevolent, however. Some will be receptive to advances by labor unions, employee “advocacy groups” (fronts for unions), or attorneys who prefer to do their ambulance chasing with a fork. Others prefer to impose their own remedies and take advantage of a target-rich environment by beginning to confuse their money with the company’s (or guest’s) money. Either way, the business loses, and the losses are bigger than you might imagine.

Despite having a largely pro-business judiciary for some time, employers are getting whacked with stiff fines and settlements as the result of federal wage and hour law violations. The July 14-21 issue of Business Week (p. 7) reported an adverse ruling against Wal-Mart by a Minnesota judge in a case involving 2 million alleged separate instances of employees being forced to work off the clock or cut short their breaks. According to the article, in addition to the $6.5 million back pay award, the company could potentially be liable for punitive damages up to $2 billion (based on a $1,000 per event maximum penalty).

Similarly, the June 20 issue of Nation’s Restaurant News (p. 6) chronicled an expected $3.9 million settlement of two wage and hour related lawsuits against Fireman Hospitality Group, the New York operator of upscale restaurants such as Redeye Grill, Cafe Fiorello, Brooklyn Diner, and Shelly’s.

Any way you cut it, working people off the clock, or funding operations through some of the nefarious tip sharing arrangements that pop up from time to time is simply not worth the risk. Whether you’re serving tacos or t-bones, it takes a hell of a lot of covers to pay one of these supersized fines.

For the rest of us, who spend our time on the other side of the plate, we would do well to remember that when we do dine out, we’re really not going to balance the household budget by stiffing a deserving server out of a tip. Do the right thing, even though no one is looking.

Business Week Magazine has just released its 2nd annual ranking of “The Customer Service Champs”, heralding 25 firms which, amidst an otherwise pretty dismal scene on the service front, are doing the best job for customers. Representing a diverse cross section of American industry, including hotels, retailers, airlines (yep), banks, quick-service restaurants, and insurers, the Business Week list includes rankings for both “process” and “people.” In other words, high tech or high touch alone won’t get it. Some observations:

1. Once again, it is impeccably clear that those organizations with a reputation for having a focused, engaged, capably led workforce (e.g., USAA, L.L. Bean, Marriott, Edward Jones, Enterprise Rent-a-Car, Chick-fil-A) stand a much better chance of garnering kudos for delivering higher quality service. A visit to their annual reports suggests that ink from Business Week isn’t all they’re getting out of the deal.

2. These folks are serious as a heart attack about improving (as opposed to maintaining) service. The article details efforts made by USAA to improve software and launch mobile Web service to make it easier for its highly mobile and often forward deployed military customers to do business with them. Starbucks is also taking some serious measures. At 5:30PM (local) this evening, all 7100 U.S. Starbucks stores will stand down, as in close the doors for three hours so that every Starbucks partner (including those who are scheduled off for the day) can get the benefit of “Espresso Excellence Training.” Hint: 9PM this evening would be a real good time to get yourself a latte.

3. Some organizations are starting to use their heads, along with some real cash and creativity to recognize and reward workers who go the Extra Mile for customers. Fairmont Hotels & Resorts has modified its rewards program so that customer service stars actually get something they really want, like help buying an automobile, a trip to places they want to go, and the like. Said, Fairmont’s SVP of HR, Carolyn Clark, “Our guests do not want service that’s cookie-cutter. Just as we’re trying to deliver individualized, personalized experiences for guests, we wanted to introduce a customized, personalized reward program for employees, too.” Yippee!

I decided a while back that life is too short and too precious to waste it by spending time being aggravated over preventable customer service snafus. For that reason, there is an ever growing list of companies (airlines, banks, restaurants, and the like) with whom I will not, under any circumstances, do business. Rather, I strongly prefer to give my business to folks like those mentioned on the Business Week list. It feels better, turns out better, and I’ll probably live longer. You may want to try it.

A thought leader in the areas of leadership and employee engagement, Bill Catlette is a seminar leader, keynote speaker, and executive coach. He helps individuals and organizations improve business outcomes by having a focused, motivated, capably led workforce. For more information about Bill, his partner Richard, and their work, please visit their website at www.contentedcows.com

We have long maintained that one of the key drivers of worker discretionary effort is whether or not one’s work seems to matter. Along with a lot of others, I got a big, full color, Hi Def, 3-hour reminder of that today as I watched the Dallas Cowboys vs. Washington Redskins football game.

As usual during the last week of the NFL regular season, some teams (e.g., the Redskins) were playing their hearts out to make it into the playoffs. Some teams (e.g., the Atlanta Falcons), with no hope of making the playoffs, played for pride. Others, with a playoff berth secure, and no hope of improving their position, mailed it in by resting their weary and protecting the stars. The Cowboys, with their playoff spot and home field advantage sewn up, took a little different approach. Though they played the regular starters at least through the first half, it was as if they were sleep walking.

This doesn’t just happen to athletes. It impacts each of us when we suspect that what we’re doing just doesn’t matter very much. I’ve seen bank tellers spend entire weeks in a deeper fog than the one the Cowboys were in tonight. Let’s all take this as a gentle reminder that it would likely be worth the effort to spend more time this year making darned certain that our people understand, really understand that their work matters.

Godspeed!

A thought leader in the areas of leadership and employee engagement, Bill Catlette is a seminar leader, keynote speaker, and executive coach. He helps individuals and organizations improve business outcomes by having a focused, motivated, capably led workforce. For more information about Bill, his partner, Richard, and their work, please visit their website at www.ContentedCows.com

Earlier this week, on Tuesday night, NBC’s reality show hit The Biggest Loser made its 4th season premier.

Ordinarily, I’m not a big reality show fan. But this is different. This year, one of the contestants on The Biggest Loser is my sister-in-law (my brother’s wife), Julie Hadden.

Julie’s story is like that of millions of women. She was a beautiful, fit, healthy young woman who got married, had a baby, and made the choice to work at home caring for her child. In the process, her health took a back seat to everything else. She gained weight and found herself in that vicious cycle that so many working women and men, both those working at home, and in a career, can relate to. Too tired and busy to eat right and exercise.

Julie decided that, for her, reaching her goal of losing weight and gaining health would take a bold move. She applied, along with 150,000 others, to be a constestant on The Biggest Loser. To everyone’s astonishment, she made it! She was chosen to be one of 18 cast members vying to lose the greatest percentage of body weight, and to win the grand prize of $250,000.

No winner has been chosen yet. That happens in December. The series starts tonight. There’s a lot that we, as her family, don’t even know. I guess we’ll all just have to watch the show. She’s home now with her family, and she looks and feels fantastic!

My admiration for Julie, and those like her, comes from the following:

1. She had a goal - to lose weight and improve her health. After trying conventional means, without success, she decided to take a bold step.

2. As you can see by watching the strenuous exercise portions of the show, she went the extra mile, pushing and stretching herself much farther than she ever dreamed she could. And if nothing else comes from her participation on the show, she has proven to herself that she had what it took to go above and beyond her, and others’, expectations.

3. She showed that others can play an important role in our motivation. Her trainer, who was part drill sargeant, part mother, part teacher, part mentor, and part role model, demonstrated that a leader who cares about - but doesn’t coddle - his or her followers, can get amazing results.

Our blogmistress extraordinaire, Tia Graham, has suggested that occasionally we post something that has nothing to do with our business topic – leadership and creating a great place to work. This is one of those posts.

After all the planning, getting the house-sitter settled, and the long, long flight, we’re finally here. Hawaii. Most of you have probably beaten me here; I hardly know anyone who hasn’t already been to this American paradise. And so I don’t have to tell you what a magnificent place it is.

In a post a couple of weeks ago, I told you about visiting North Dakota, and that the Roughrider State was number 49 for me. A long time ago, I resolved to visit all 50 US states before I reached the age of 50, and by golly, I’ve done it! Just in the nick of time, too. It feels good to reach a goal, and it doesn’t hurt that the realization of this particular goal was coincident with stepping off a plane into a balmy breeze and some of the most gorgeous scenery on the planet.

My teenage son, concerned that I have no more goals left, has challenged me now to visit all 7 continents by age 70. He’s on! I’m serious! It’s 3 down and 4 to go.

What makes this even more fun is that, so far, we haven’t spent much money to get here. The flights came from my Delta Sky Miles account, and the accommodations from two sources – my Hilton Honors account, and a gift from a very good and generous friend who had rights to a week in a condo here that he couldn’t use. The car came from Hertz points. Now, if I could just get everyone to go on a fast for ten days, we’d have this trip for nearly nothing.

Hawaii feels paradoxical to me. At the same time in my own country, and a place that looks and feels nicely foreign. It really does feel different from all the other 49 states, and yet the news carries the stories of “Chief Justice John Roberts’s seizure”, of “the death of Bill Walsh”, and the role of Michelle Obama in her husband’s presidential campaign. Somehow I think that if I were, in fact, in a foreign country, the headlines would be different.

Well, I am, after all, on vacation, and although I’ve been up for an hour and a half, the sun has finally decided to join me. We’re going to Pearl Harbor today. Something else I’ve wanted to do all my life. I’ll write about it soon.

Richard Hadden is an author, leadership speaker, and business consultant, who makes the business case for creating a great place to work. For more information about Richard, his partner Bill, and their work, or to book Richard or Bill to speak for an upcoming event, please go to www.ContentedCows.com.

Aloha.