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| Redefining time |
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| Nigel Skeffington is an early
adopter and teacher of collaboration. |
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Collaboration is more than online meetings... much
more. |
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The Opening of this
Show
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HATTIE: Hi, I'm Hattie Bryant. What happens
when we open ourselves to learn from each other and even celebrate the success
of others? What is our path to wisdom? To a fulfilled life? In some of our
shows we see how some small business owners, sometimes unwittingly, tackle some
of the most difficult questions about the meaning of life, and what they do,
ends up changing the way we see ourselves and the world. We believe this is one
of those stories.
Loved by their community, and respected in their
industry, meet Nigel Skeffington, his wife and business partner, Rosemary, and
his brother, Peter, now the CEO, of their business.
Meet some of their team; And one of their
customers, Neil.
Looks all rather typical. But we are in Godalming,
an ancient city, somewhat frozen in time, south of London, and not far from
important places like Greenwich and Oxford. The name of this business is Time
Technology.
An Introduction.
Daytimers, PDAs, we are always asking, "What time
is it and how can we manage it better?" But here in England where Universal
Time was defined and is maintained, the folks of Time Technology take on Sir
Isaac Newton, they go beyond the irascible Steven Hawking with his Brief
History and even challenge Albert Einstein.
This little business started in 1992. With a
little technology -- totally Internet based -- and 17 employees in 2002, it is
escalating a quiet revolution where we discover that time is derivative and
relations are the primary real.
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| WATCH
TELEVISION THAT TEACHES |
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HATTIE:
Let's go to Godalming to start at the beginning.
NIGEL SKEFFINGTON:
When I need to see my big clients based up in London, I need to get to them
quickly. And I can leave from here and be, within an hour, in their offices. We
do deal with international companies and we have to get on planes so we're only
half hour away from Heathrow and Gatwick Airport.
HATTIE: So you have
the best of both worlds: you get to live in this bucolic community and quickly
you're in the center of the world.
NIGEL: Absolutely.
I made a choice early on that I would never commute into London. My father did
it the whole of his life. So consequently, when I was lucky enough to start the
business, we decided we're going to base ourselves in Godalming. It is, on a
bad commute day, only 11 minutes to our house.
3
When we started out
it was very much driven by my passion, my sales activity. I was frustrated with
the company I worked for previously. They were into time management. They
worked on individuals. I believed even
though we are individuals that we work in groups and we have to share
information and work together. Outside of just ourselves. No matter how much I
tried to persuade them we needed to go for the group area, they did not respond
so consequently, I ultimately left them and came across this product, Lotus
Notes, and all of a sudden I saw the opportunity to collaborate and work in
groups.
4
ROSIE (ROSEMARY
SKEFFINGTON): The business was started in this house.
HATTIE: I went to
meet Nigel's wife, Rosemary, at their home just a few minutes away from the
center of Godalming.
ROSEMARY: The basic
path was that the pond--the basic sort of structure of the garden was there,
but--
HATTIE: Their house
was designed by architect F.W. Troup and built in 1903. Who wouldn't want to
work at home to take in the smells and sites of the lush English countryside
and be close to their children.
ROSEMARY: Hi ya.
ROSEMARY'S
DAUGHTER: What you up to?
ROSEMARY: Just a
letter I've got to get out.
ROSEMARY: Our very
earliest marketing activity was a radio ad. We had the hot line, which was
actually buried in the back bedroom so that when people rang in, that they
couldn't hear the children crying or the dog barking or anything.
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5
HATTIE: So you've
got an office here at Brook House?
That's right, and
this is where I work most of my time. I've got a message from Nigel. "Can you
join the meeting?"
NIGEL: Hi, Rosie.
HATTIE: What
Rosemary and Nigel demonstrate is collaboration software. There are hundreds of
products. Their names communicate the struggle to capture its transformative
power-- Mindbridge, Netmeeting, Co-create, Livelink, LiveMeeting -- all trying
to say we can now share the same time no matter where we are. The word
collaboration hides the fact that there is a new place that we all share.
Instantly we create a unique place that transcends space and time, breaking
through Newton's laws, reshaping Einstein, and right now you think you're just
watching an online meeting. But it's more than that. Time and space are
derivative.
ROSEMARY: Change it
to ten. Change it to ten.
HATTIE: And it is
as simple as Nigel gets Rosemary's opinion, he takes that
suggestion.
ROSEMARY: That
would be much better.
HATTIE: The meeting
is over, but a revolution has begun.
ROSEMARY: Go for
the rest. Comfortable with the rest.
NIGEL: All right.
Okay, thanks, then.
ROSEMARY: See you.
NIGEL: Bye.
HATTIE: How much
time elapsed from when you got the idea to when you started making money?
NIGEL: It was about
a year.
HATTIE: See, to me
that's nothing. That is very short. You should be thrilled that you were able
to move that fast. |
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6
HATTIE: In 2002,
Time Technology was one of the few to win a coveted Top Contributor Award from
its premier supplier.
NIGEL: Well, the
reason we were able to move that fast was because we won two clients --major
clients -- who actually bought into what we were selling. Very specific
solutions, but they bought into the concept of using this technology to share
information.
The second customer
was someone I had worked with my previous company. He phoned me up one day and
said, "Nigel, we've got a challenge. I've been given a new job working with the
ABN AMRO Bank. We're setting up a new-- completely new company or organization
to carry out international cash management.
Now, my challenge
is that I've got teams sitting in Chicago, in New York, out in Frankfurt, down
in Paris, in London, and down in Milan. And I need to be able to share
information between all of these parties, because we're dealing with global
companies." So I went to Amsterdam. And previously, I was due to go on a
particular day, and I was awful. I was really ill. Now, I then phoned up my
client and said, "Look, I can't make it; I'm really ill." and he said, "Well,
that's a shame, but we're still going to go on with the interviews with the
other companies." and I asked him the question, "Well, you know, who are my
competition?" because I wanted to know who I was playing up against. And he
then named four of the biggest technology companies in the world.
And one of those
was a major consulting company that they were already doing business with. So
at that point, you know, I thought, "I'm glad I'm ill, 'cause I'm not going to
waste the last few pennies I've got getting on a plane, paying for that trip
over to Amsterdam, landing in a country I've never been to before, getting a
taxi into this place. And I just had this vision of all this money disappearing
out and my last few pennies before I just could not get the business to
survive.
So I then said,
"Okay, I'm terribly sorry, Chris. I can't make it." Anyhow, next day Chris
phones me back, and he and he says, "Nigel, you are coming, aren't you? When
can we make the appointment?" I said, "But, Chris, you've seen all these other
people." And he said, "Yes, and I need you to come." So at that point, I took
that as a potential buying message. Clearly the big companies had come across
in a way that something wasn't right. So literally, there were three of us in
the organization at the time. We put a Powerpoint presentation together, and we
made ourselves look much bigger, 'cause we had someone in reception who
happened to also be the developer, who also happened to be the salesperson and
marketing. And we built this PowerPoint presentation together. I've still got
it. It's hilarious to look at it now.
I flew out the day
before Christmas Eve. So Rosie made Christmas cakes. I arrive; I get into the
taxi. On the way to the meeting, the taxi has an accident. My cakes box, which
is sitting on the side of me, slides off, hits the floor. So we got to the end
of the meeting, they ask me some questions, and said, "Right, thank you. We'll
be letting you know."
Chris Tassel phoned
Rosie to say, "I've got two pieces of information. I have bad news, and I have
good news." And so he said, "Which do you want to hear first?"
Now, this is what
Chris did for all the time that I've been working with him since. He's always
got this bad news/ good news. Lovely sense of humor.
And so Rosie said,
"Okay, give me the bad news." And he said, "Nigel was involved in an accident.
But don't worry--he's okay." And Rosie says, "Oh, my God. oh, my God." He said,
"No, no, you want to hear the good news now?" and Rosie's saying, "No, no,
how's Nigel? Is everything okay?" and he said, "You got the
contract." |
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7 - Enter a contest
ROSEMARY: I entered
us in a competition with one of our local government bodies called Business
Link. And we were actually a runner-up. We were short-listed. And although we
didn't win, what it made me do was really look at the business in a very
critical manner. And suddenly I realized--I suppose that was the first light
bulb that came on--that actually the organization of the business was actually
as important as anything at that stage.
8 - Other's thinking
So I became
Operations Director. I suppose we had seven or eight people by this stage. And
stayed doing that role for the next 3 to 4 years, really, up until we were
about 16, I think, or 17 people. I used our local Business Link, who helped me
with a managing director's course. You need to educate yourself and also find
others ... I'm sure it's been said before, but it's a very lonely job, because
you have to keep up the front the whole time.
If the money
doesn't come in or if you have a bad month, it's just head up, plow on.
I think the thing
that I realized was that my skills were not going to take us forward to where
we wanted to go. Nigel's were not of the right making either.
NIGEL: I am an
awful manager. My skill set is selling and building relationships with people.
ROSEMARY: If we
could free him up from any management duties, then we could get that sales
spurt to enable us to grow.
NIGEL: I was
constraining the business. I held the business back everywhere. I didn't
empower people. I thought I empowered people. |
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9 - Fire yourself.
ROSEMARY: I decided
really that we needed a new managing director. We needed somebody--not me--who
could take the business forward.
NIGEL: I didn't
want to let my baby go.
ROSEMARY: Unless we
grew, we wouldn't succeed. We'd probably fold, because you can't stand still as
a business; you have to move forward all the time. Something had to change. But
how? How were we going to do this? The way to do that was to find a new
Managing Director. And we did. It took us a long time, but we did.
HATTIE (Voice
Over): This is Peter Skeffington, Nigel's younger brother.
HATTIE: When you
came here, you came from a huge, huge conglomerate. Why did you come here?
PETER: Well, I
guess there are two primary reasons. One, there's the obvious family
connection, which was kind of intriguing.
NIGEL: My brother
was working for GE Capital. He'd been responsible for implementing Six Sigma,
which is a management quality process.
PETER: Six Sigma fundamentally is a quality methodology. It's
a whole set of tools and approach to applying improvements to your business.
(More from Peter on Six Sigma)
NIGEL: Forget the
fact he's brother for the moment; he just seems to be the right person to have
in the organization. So being very cautious, we actually recruited a consultant
psychiatrist, who worked with-- or psychologist--worked with one or two of the
major consulting companies in terms of profiling prospective senior people. And
we asked her to interview Peter and to carry out an analysis as to whether this
guy was the right guy to join our company. That's probably the most money I've
ever spent on a professional person in my life, and it was the best money we
spent. Because what it did was, it gave us a profile of my brother that
basically said he was ideal for the job. So it wasn't then a difficult decision
to have him join the organization.
At the time we
talked to Peter, he was a small cog in a very, very big mechanism, and he was
frustrated with the fact that he spent a large amount of his time sort of just
oiling various elements and never really making the difference. Now, how did we
afford him? Well, I'm a salesman, so there was a bit of blarney, a bit of ...
PETER: He loves
selling. That's ultimately his passion. He loves it. And the one thing that
I've been able to do is release him in that respect. He was very--prior to
that, he was constrained by all of the worry and the responsibility of trying
to actually make the thing work as well. And by his own admission, that's not
where his main skill or indeed his passion lies.
HATTIE (VoiceOver):
By 2002, with 17 employees, the right leadership team was in place. But rarely
do they need to be in the same room at the same time, as they most often depend
upon their own collaboration tools to run the business. |
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10
LIGHTBULB
HATTIE (studio):
With a rather simple but new technology that attenuates the thoughts of people
on the same problem, the same concept, no matter where they are, we wrestle
with the wisdom of the ages in new ways. At the core of a sale, at the core of
a good business, at the heart of a good marriage, yes, even a good government,
are healthy relations. And at the heart of good relations are many agreements.
At one time, we were often separated by space and time. No longer true. At one
time, it was location, location, location; today it's relations, relations,
relations.
Living is not about
a space and a particular time. It is about the quality of relations. To launch
the business, Nigel landed a huge customer, and that sale was based upon an old
and nurtured relationship. Mutual respect. A series of agreements. To grow the
business, Nigel and Rosemary needed a CEO. They had been burned over and over
again recruiting and investing in salespeople and were apprehensive to commit
the big bucks that would be demanded by a skilled top gun. I'm not suggesting
that the only person you can hire is a relative. I am suggesting that the only
thing that does matter is your ability to have and to build relationships.
money, time, space--everything is a derivative of relationships.
Within this web
site, there is self-help study for people who want to start a business and for
those who want to grow the business they have. From the home page, choose "Pathways" to self-study. Next,
you'll find eight steps or stages of growth. At each step, you'll find links to
more resources. Also, in the video box for online learning, you can always
watch a current episode, and you can experience an interactive study guide.
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11
HATTIE (Voice
over): Nigel could use collaboration software for this training session, but he
wanted me to meet his customer and take in more of the English countryside.
HATTIE: This is
such a great spot.
NEIL RUSH: It's
lovely, isn't it?
HATTIE: I met Neil
Rush, owner of Support Training Services. (hygenico.com) From here his company
provides consulting and training in food and health safety.
HATTIE: So what
year do you think this home was built?
NEIL: Well, they
believe it dates back to the Doomsday Book, which was back in the 1600s when
they did the register of all the property that was in England. And they believe
it was one of the original seven mills that were on the river.
HATTIE: But of
course, you put in plumbing, didn't you?
NEIL: Oh, yes. We
don't use the water from the river any more.
HATTIE: Let's have
a look in your office.
NEIL: Yes,
certainly. Step this way.
HATTIE: Okay. So,
Neil, why do you use Time Technology products?
NEIL: Well,
basically, we needed a computer solution, and I'm not a computer expert, so
firstly I got a consultant to come in and help me go through all our needs,
identify the different solutions and the different companies. One of the
companies was Time Technology, and the thing we liked about Time Technology is
they understood our business, they listened to us. They were also local, but
they also could adapt to whatever we needed, and they really did a good job for
us.
PETER: You need to
bring in a whole culture of measure, a whole culture of being able to measure
these things. that measurement must be carried out primarily as your customers
see it, not as you see it. We have one person on the management team whose
responsibility is quality, which is a big thing for an organization of our
size. we also have a lot of-- obviously--informal feedback as well, which fall
under the category of complaints and compliments.
NEIL: Yeah, that's
what I like to see about Time Technology. Excellent service, massive bills.
NIGEL: When Peter
arrived, he said, "Look, you know, at the end of the day, we are working with a
single supplier, effectively. And therefore, we must build relationships with
that supplier." |
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12
HATTIE: Steve
Rudland is the Sales Manager.
STEVE: What we've
done: because we're serious about the relationship with Lotus, is we've aligned
our sales territories to Lotus' sales territories. So we have Southeast, South
London, West, East Midlands, Northwest, Northeast, Scotland, and Northern
Ireland. I set the territory model up and didn't really want to ask anyone to
do anything that I wasn't going to do myself. But when it comes to dealing with
the north, also I suppose, there's a degree of is suspicion about companies
from the south anyway. And because I'm from the north, I get a degree more
tolerance there than basically some of the other guys here would do.
HATTIE: So the
buyers from Scotland will give you five more minutes to talk to them, because
you've got an accent?
STEVE: Maybe 10 or
15 more seconds.
HATTIE: And then is
it hard to get the money out of them?
STEVE: The notion
of sending a check south of the border for Scotch organizations is quite an
anathema, quite a difficult one for them to cope with. So we have to work that
a little bit harder to get the business going up there.
HATTIE: So you're
able to get the check, though?
STEVE: We're able
to get the business, yeah.
HATTIE: So
yesterday, Nigel comes in and says, "We got the deal! We got the deal!" do you
think what you've been doing the last 12, 18 months helped that to happen?
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13
ROSEMARY: Very much
so, because what happened was, they had received the newsletter perhaps in
February this year. They will have been called in March or April. They will
have had a mail shot--I can't think, but one of our products we mailed shot
them the next month. Just a simple letter, not expensive--the cost of the
stamp. Short letter. Se mail, call, mail, call. Just touch the customer.
HATTIE: While all
of their customers have embraced collaboration software, Rosie believes there
will always be a place for a well-designed physical piece of mail like their
newsletter.
ROSEMARY: Put time
technology in front of them as much as we can.
HATTIE: What do you
think the deal you just closed yesterday is going to be worth to the
organization?
ROSEMARY: I think
Nigel was talking in the region of a million pounds. So that is a fantastic
contract.
HATTIE: So
marketing works?
ROSEMARY: Marketing
works. It's hard work. It's hard work, but marketing is 99% common sense and 1%
you've got to roughly know what you're doing. But you can read a book. You can
ask people. But do it: get your name in front of the customer.
HATTIE: Nigel, what
does it take to build a business?
NIGEL: What does it
take? Well, I hate to mention that dreaded word luck, but there is a lot of
luck in this business. Any business has to have that lucky break. How do you
make yourself lucky? Well, I think hard work, determination, commitment,
passion. We have to focus, and we must always focus on what it is that the
client wants and that we deliver exactly what the client wants. In fact, we
have to do more than deliver what the client wants; we have to exceed what the
client wants. That will be the difference-- that will be the difference when
Time Technology is a multi-million pound organization, is when we make that
difference and we exceed the expectations of our clients. It's all about focus
and service.
HATTIE: What gives
you your stamina? You two, you and Nigel, bought this house when it was falling
apart. You said, "oh, we can fix it." You bought a building downtown when it
was falling apart. "Oh, we can fix it." You started a business on an idea--"Oh,
we can do that." I mean, where does the stamina come from?
ROSEMARY: We did
always hope that we would have a third child. We had two--fine, brilliant. Then
we thought, "Number three," and it didn't happen. And so I always said Time
Technology was my third child. And if you look at it like that, then you
nurture it, you love it, you take care of it, you're passionate about it, and
you do it for that reason. I don't know.
PETER: We've got a
clear vision. We know where we want to get to. We've got ambitious plans for
growth. There are no real boundaries to that growth.
NIGEL: It's fun. It
is a lot of fun.
HATTIE in the
studio: We learned so much from Nigel, Rosemary, and Peter. On our website you
can read the complete interviews. Peter talks about how he is applying Six
Sigma principles at Time Technology. Nigel tells how their C.P.A. got them
angel capital for the start-up, and learn from Rosemary how she out sources the
creation of her mail pieces and how she writes a telemarketing script that gets
results.
NOTE: There are two
additional clips for Time Technology. Please see below for #14 and
15.
We'll see you next
time. |
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| The Closing of the Show |
Go to the profile or the study
guide. |
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A Little More
Indepth (These segments do not appear in the
show) |
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New CLIP for the
web #14Nigel on Start-up
Capital:
HATTIE: When it
comes to the start-up, what big lesson can you share?
NIGEL: There are a
number of factors than enabled us to get to where we are today. One is not be
afraid of hard work but I would expect anyone to have that view if they were
going to start-up. And two, totally believe in what they are doing and be
passionate about. If you are not passionate about what you're selling you will
not succeed because people will see holes in your arguments.
The other thing,
certainly for us, never underestimate the amount of money you burn before you
start to make money. We were very lucky we had some investors who put some
money in.
In the software
development environment typically you ask for 30% up front then you call it off
over a period of time. As you deliver elements rather like building a building,
the construction business. Customers paid some money up front for us to get
going but we still had to deliver elements so we took some
investors.
HATTIE: So would
you say these investors were angels?
NIGEL: Yes. They
were angels. They invested under the business expansion scheme at the time
which was effectively a tax write off. That's what the motivation was. We were
introduced by our accountant. We were so lucky from that point of view. We were
going to do this on our own even though we didn't have the money and we would
have never survived the first six months to let us get to where we are today.
I offered to buy
them out about four years after we started but they decided they want to stay
in for the long run. We still see them once a year, no active participation. We
still have a shareholder meeting to fulfill obligations. We tell them what
we're doing, they say that's very nice, we buy them a meal and the next time we
see them is in a year's time.
HATTIE: So your CPA
realized you needed money to start a business and that same CPA had the angel
investor as a client and knew they needed a tax write off and put you
together?
NIGEL: Absolutely.
We were so lucky to have met them. They are a married couple who inherited some
money and were looking to maximize their money so the accountant suggested the
investment. It was a window of opportunity which is now gone. And we have taken
advantage of other tax incentives. For example, one of the companies we formed
out of Time Technology, which was Time Information Services, Rosie and I sold.
As a consequence of owning the business for a period of time we got a lot of
good tax breaks. We only paid 10% tax as opposed to 40% on the profits we
earned. |
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New CLIP for the
web #15Rosie on Writing A
Telemarketing Script.
We've been doing a
lot of telemarketing every month-- we outsource that. We've produced
newsletters and we do mail shots. So we've bought a database and I talk to that
database twice a year. We also outsource the database management I can't do
everything. I have to balance my time between HR and marketing. I outsource
copyrighting and design also. I coordinate and pull all together. The
newsletter goes 4 times a year and mail shots every month.
I write the
telemarketing script. Telemarketing does work but you have to get the script
right. We've rewritten the script about 4 times. We started off using support.
Have you got a problem with your software support? Can we help you? Perhaps you
need some fixing. Can we send in a consultant? Have you heard of XYZ Product?
Have you heard of us? Time Technology? Is there anything we can do to help.
That worked quite well. Then we moved on to specific pains inside a company. We
might choose to call the sales director rather than the IT director and we
might say, "Have you got a problem keeping your customers up to date with
information? Have you got a problem getting things to market quick enough? What
really hurts?" We might say to the production director, "Are these your
problems?"
Think about the
pains then translate them into something about which you can have a meaningful
conversation. So it is important to catch their interest. You need to write the
script to encourage whoever you are calling to talk to you about their specific
problems. Then you can pick up on an idea. Then you can say, "do you want a
sales person to call on you?"
HATTIE: So how does
it work? Do you mail to the same people you call?
ROSIE: Yes. We
mail-call-mail-call. Touch the customer. Put time technology in front of the
customer as much as we can. |
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Peter on Applying Six Sigma Principals to Time
Technology (other episodes dealing with business management -- top-right box)
HATTIE: What is Six
Sigma?
PETER: It's an
ingredient in securing long-term success. Six Sigma fundamentally is a quality
methodology. A whole set of tools and approach to applying improvements to your
business. I came from a situation where I had been a quality leader in my
previous role and I had to apply it in an awkward environment and I had to
learn an awful lot about it when I came to Time Technology. I knew that certain
fundamental principals could really benefit a small organization particularly
one that was looking to grow equally as much as it would a large organization.
HATTIE: What can
you teach us about the principals of Six Sigma?
PETER: It is about
the idea that you run your business through processes. Everything you do you
are running through some sort of process. The efficiencies of that process are
very important. You hope to control your costs on one end of the equation and
on the other end of the equation you delight and satisfy your customers. To
achieve this you need to bring in a whole culture of measure and some people
find this difficult. Six Sigma gives you a set of tools and an approach to
bring that into an organization and you can sell that idea that we can measure
this stuff and that it is important.
What's also really
important is that measurement must be carried out as your customers see it not
as you see it. This was something that fundamentally GE believed in -- it is
all about how you are seen by the customer. So you have to understand that.
Most people have the perception of how they are performing based upon how they
think they are performing but that may not be how they are performing at all.
If the customer thinks in fact that you are much worse than that then that's
the reality. So you've got to look at your processes from a customer's
perspective not your perspective
HATTIE: You now
have 6 month appraisals. Do you as the general director ask customers to
participate in that process?
PETER: The most
important thing about our appraisal system is that it has value. It means
something. People know what they have to achieve. We have to pass down the
vision all the way to business plan and process to specific goals and
objectives against every individual in this company that contribute up to the
overall strategy. I've been part of many bonus, goal and objective schemes in
the past but the important thing in my mind, is someone needs to understand how
they can be measured. What is the measurement of success? How do I know whether
I did well or didn't do well enough and it's not good enough if my manager
thinks I did well. So that means you need measure which is where the whole
quality piece comes in to make sure you have the framework in place to measure
this stuff.
If I'm saying that
quality is how the customer sees us then my people need to be aware that they
will be evaluated on how the customer sees them. And therefore there are
elements within their goals and objectives for instance ...quality of
communication with customers during projects. After ever project we do a post
implementation feedback survey which has on it one criteria, "How do you rate
the communication during this project?" The customer will score us 1-4. People
will get part of their bonus paid based upon that score. It is absolutely
fundamental. The appraisal should match up to the strategy and there must be
quantifiable measurements that people can understand, agree with and relate to.
There are a lot of
people trying to do customer feedback these days so you have to make sure you
are gathering the real feedback. There are some customers who welcome giving
feedback and others who want to know where the value is. If I can get the
opportunity to get in front of the customer and sell them on giving us feedback
that is good. They don't want to think it is just going on some chart somewhere
and not be used.
We have one person
on the management team whose responsibility is quality and that is a big thing
for an organization of our size.
HATTIE: Out of 16
people one person is dedicated to quality?
PETER: Absolutely
and they sit on the management team. She captures all complaints and
compliments and there is action taken on each. We publish both.
HATTIE: What can
you tell about the improvements you are seeing since you arrived?
PETER: It would be
unfair to say we weren't making money. We weren't leveraging. If you just keep
doing what the customer asks for you end up with lots of stuff to support which
is difficult and not profitable. We have more focus and therefore more profits
now. The profit margins are up but only just now are they going up after 18
months of hard work. It takes longer than you think. No matter how strong your
vision is, to translate that into results take a long time. But yes the results
are now coming.
HATTIE: Is Nigel
allowing you to lead?
PETER: There is
tension and you would expect that. There are going to be disagreements,
specifically in Nigel's case, it has been difficult but anyone in his situation
would have to go through a lot of change. I think the saving grace for him is
that fundamentally he loves selling. That is his passion and I have been able
to release him. Prior to that he was constrained by all the worry and
responsibility trying to make the thing work. And by his own admission that is
not his main skill or his passion. We have ongoing disagreements. (Laugh) One
of the things we have is that we are brothers. We didn't have to have
preparation conversations that you would have to have without the blood tie.
Early on it is really important to talk through the issues you are going to
face and use a professional if you don't do that, and in our case we did not
but if the blood tie wasn't there it would be very very tough
HATTIE: You were
hired because you have what it takes. It is unusual for the founder to hire
someone to be the boss.
PETER: As
frustrating as it can be from time to time, that's the way it is and that is
the way he wants it and he likes it. He is freed up.
HATTIE: Can you
give us an example of how you measure customer service personnel?
PETER: It is not
easy. You have to understand what they do first. Proper role profiles
structured to reflect the processes that most people have to have
responsibility for and important. People take for granted that everyone
understands but it is important to make sure that people are very clear on what
they are supposed to do. When you understand the job, you can create the list
of what the person is accountable for. Anything that happens in a process can
be measured. For example, the developers are measured on customer service. They
need clear communications. Customers need to understand what is going on on a
piece of work what is being delivered constantly kept up to date with what is
going on. A very clear measurement of success of development is clear
communication. That is one such measure.
The majority of the
people who we feel are the right people actually welcome it. They like the idea
that there is structure to the way they will be evaluated. I heard a great
expression, someone said what's the measure of a good appraisal? When the
employee actually looks forward to the appraisal. It has to be meaningful and
to see the value in it people generally want to know how they are getting on.
It's better if you can provide a framework around that conversation rather than
leave it totally in the hand of the manager.
Generally we bring
in a carrot. If you start measuring put in rewards into the system. We
actually, on some of the measures say, "If you get certain levels you get 75%
of this number, if you get this level you get 100%, if you get this level you
get 125%." People that excel will be rewarded through a clear
process.
HATTIE: What will
keep you from getting your goal of $20 million a year in sales?
PETER:
Fundamentally it's the people. We're in a people business. We're in IT but
we're selling services so we have to have the right people to do the job, to
work with customers and the right management team. To get the right people we
go through a great deal of filtering . For every role we look to take on, we
understand a set of competencies needed for that role anything from customer
focus to analytic thinking, persistency and different roles have different
needs. You have the framework with is important you don't need to be overly
analytical.
We have a clear
vision. We know where we want to get to. We've got ambitious plans for growth
and there are no real boundaries to that growth. We're right at the beginning
of the journey. We're building the blocks and every person needs at least to
bring in the next block or the next and its up to the individual how high they
go up that equation. People who come here have that opportunity. We're only 17
people. You can influence and you can make the difference. I will maintain a
clear vision and we will help everyone achieve. It's all about the
people. The Closing of this
Show
Go to this episode's other pages:Overview / Profile, case study,
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