Teaching Notes & Study Guide

with Steve Day
State Line Tack
Plaistow, Hampshire
Key Ideas.
Key Idea #1: Hire people with a wide range of skill.
According to Steve there are no prima donnas in a small company. He hired people who not only had experience in areas in which he had none, but who also had the right kind of "jump-in-and-make-everything-work" attitude. For example, the chief financial officer must be willing to go into the warehouse during the Christmas holiday and pack orders. There is no room for compartmentalizing.

You think back:   What are the advantages of cross-training?

Answer: Cross-training offers employees a big picture mentality and creates a backup system. If someone is ill, there is always another person who knows that job.

What do you think? Why is a person's attitude so critical to his/her performance?

Possible answer: If a person desires excellence, he/she can achieve it. However, if a person knows a job inside and out but doesn't care, he/she will produce only mediocrity. Attitude makes the difference between being average and becoming great. Leonor Ferrer says always hire attitude, not skill. She has learned that it is easier to teach a person a skill rather than the right attitude. Tom Gegax says, "We hire people with nice parents because we don't have time to teach people to be nice." Wanda Brice says that being a nice person is a requirement to work at Computer Directions.

Key Idea #2: Take advantage of technology .
Since purchasing the company, Steve has upgraded the computer system twice. His telephone system is the most advanced he could afford, and his warehouse was designed by efficiency experts to save time in the packing and shipping process. At State Line Tack, every step is computerized which allows Steve quick access to the information that he needs to make critical decisions.

What do you think?  How does advanced technology influence employee morale?

Answer:   In most people it creates a feeling that they are part of something that is moving forward. On the other hand, older employees who've been with an organization for a long time may feel intimidated or even threatened by technology. 

When new technology is deployed, you should make a big deal about it. Everyone should receive training on the equipment and then you should have big parties celebrating everyone's mastery of the new technology. Reports should be given on all the advantages that the new technology is providing to the customer. Everything done should be for the customer's benefit.


Key Idea #3: Keep dreaming.
In bringing State Line Tack into the 21st century, Steve has not stopped dreaming about growth. He plans to expand the western product line and add retail stores. Because few western riders know about State Line Tack and the retail store in New Hampshire is isolated, these two goals will open new markets. Now that he has both people and systems in place, he is positioned to develop a new customer base. Entrepreneurs are builders, and they usually aren't happy with the present--they always see ways to improve.

What do you think?  How does a new goal affect the owner's motivation? How does it affect the attitude of employees?

Answer:   A new goal creates energy. It's a new opportunity which engenders hope.   Good employees are enthused about new goals. Bad employees take an , "Oh-no, I'm-going-to-have-to -learn-something-new and work-a-little-harder" attitude.   

Key Idea #4: Don't sell--create value .
Ron Willingham says that people do not want to be sold today, but they want to do business with people who will understand their needs and will partner with them and help them create some value for themselves. 

You think back:  How does Ron tell us to think about customers?

Answer:  Write a mission statement that focuses your team on serving the customer--not selling them. Ron changed one company's mission statement from "we sell financial products" to "we help customers achieve their financial goals."

What do you think?    Will changing these words change the behavior of the organization?

Answer: Yes, but only over time. Most every business owner here at SmallBusinessSchool.com talks in terms of their mission statement . This is your guiding light and it should be powerful. President Kennedy said, "Put a man on the moon," and the country was inspired. The people who work in your organization would rather help a customer than sell a customer. Write your mission statement so that the words move you to action, challenge you and inspire you.