| About the Case Study Guides |
| with Kathleen Barnes and Judy Cannon of Meetings America Salt Lake City |
Key Ideas.
Key Idea #1: The Lightbulb. If Kathleen Barnes and Judy Cannon look too happy, it's because they truly have found their place and love it. They are not driven goal-achievers striving to increase sales and profits. They are focused completely on creating fabulous customer experiences. They are competitive and want to know when and why they lose a piece of business, but they don't get distraught. They have been extraordinarily conservative since they became business owners, so they haven't worn themselves out paying for excesses and overhead. One example is how Kathleen and Judy have mastered the technique of hiring, teaching and keeping fantastic part-time employees. With the unemployment rate being low all over the country, I think every small-business owner could improve their service and increase profits by employing people part-time. I believe the concept underlying the success at Meetings America is that like attracts like. Look at Kathleen. Look at Judy. Look at Jan, who is the tour guide trainer. Now look at the guides. Even though they are dressed alike, they look alike beyond their clothing. They are all what they call "mature." That is, they are over 30, mostly over 40; they are moms; they are coifed and they all wear makeup. Now beyond the physical appearance, there's a likeness in personality. They all say they like to meet new people and they like to be onstage, which is the job of the tour guide. They enjoy creating a memory for their customers. If you need a job done repeatedly and you have one employee who is outstanding, why not try to find others like that person? Use the like-attracts-like approach. And when it comes to part-time, don't apologize. This is simply what you have to offer. Many people want to work part-time, especially those of a certain age: men and women who want to get away from the house a few days a week, be with people they enjoy and do something that interests them. Create part-time jobs and everybody wins: the employee, the customer and the business. What do you think? Why are Kathleen and Judy so proud of the tour guides? Possible answers: They need to be proud and they are because the guides are the products Meetings America delivers. Just like authentic Mexican food is the product of Hope Lancarte of Joe T. Garcia's Mexican Restaurant, the service the guides provide to the customers is what Kathleen and Judy sell. What do you think? Can service really be a product? Possible answers: Yes. Or, perhaps this is just semantics. In the case of the Mexican food, Hope sells her food and she has service personnel who deliver the food to the table. The customer is first buying Mexican food; but, if good Mexican food is available at another restaurant and Hope's service is poor, the customer may not come back. With Meetings America, they are not making a product as Hope does when she makes enchiladas. They are selling an experience that is created by the tour guide. When we visit with Blue Whale Movers in Austin, Texas, you also learn, that just like the tour guides, these movers create an experience for the customer. What do you think? The service sector is dominated by small businesses while manufacturing has a larger percentage of big companies. Why do you think this is the case? Possible answers: This has to do with the concept of critical mass. There are almost no small automobile manufacturers. To build an automobile requires huge capital outlay and the return on investment may be years in coming. Also, how big is the marketplace for the automobile? Big. Can a small company easily penetrate the market? No. However, starting a company offering a service takes less equipment and the profit margin can be high immediately. Take housecleaning or lawn care. You could start cleaning houses for people today by "borrowing" your mother's cleaning equipment and supplies. I pay $50 for my house to be cleaned. Two women come and in two hours the house is clean and they are gone. They just grossed $25 an hour. Nice wages for people who have no education or who simply want to pick up some quick cash and work a few hours a week. Another reason small companies succeed in the service sector is because it is easier to manage a service worker in a small company than in a big one. Service is much more attitude than skill, and attitude is harder to manage than skill. You think back... What are common qualities possessed by the guides? Answer: At first glance, the guides look alike because they dress alike. Wearing a uniform goes with the territory, but also there seems to be some unwritten rule about what else you do to prepare to go to work for Meetings America. The women all wear makeup that is applied professionally - not too much, not too little. They all have nice hairstyles. We saw no dirty, stringy hair, garish color, big ribbons, bows, barrettes or cheap jewelry. Next, the personalities are similar. The guides are confident and can take charge if problems arise. They love being "on stage," and they love being with people. Key Idea #2: Part time work can be perfect for many. Even as a business grows and prospers, part time workers best perform many jobs. You think back... Why do the guides seem to like their jobs so much? Answer: Because it is not all they do with their lives. They have hobbies and children, and they don't want to be tied to an 8-5 job. The key to retaining great employees is to match your goals with the personal goals of the employee. What do you think? Why do you think a part time worker would do many service jobs? Possible answer: Service requires dealing with people and people are difficult. Service work usually requires more physic energy than physical energy. In the example of housecleaning and moving, this is not true, but think about the guides. They have 40 people with them on a tour. To create the perfect experience for each person demands that the guide be sensitive to everyone's needs. Think about the service personnel in a retail store. In our show about Le Travel Store, we learned that Joan Keller prefers to hire part time people with a "spark" and who love to travel. This is because customers drain off our energy - especially grumpy customers. If you only have to work with people face-to-face four hours a day or twenty hours a week rather than 40 hours, you have a better chance of making them happy and keeping yourself intact emotionally. Think of an actor. On Broadway they give typically eight performances a week. Most plays are two hours long and most actors are not on stage the entire time. Because "being on stage" is so demanding, this is all any one actor can do. The tour guides are "on stage" which requires an intensity and it best done only a few hours a week. Key Idea #3: Leave home to grow your business. Kathleen and Judy loved working from their homes but eventually ran out of space. You think back... Did moving to an office building do more for their business than just give them more space? Answer: Yes. Both admitted that having an office caused them to think differently about the business. This new thinking has resulted in a much bigger company with plans to go nationwide. What do you think? Does an office make an impression on customers? Possible answer: Yes. Before they established themselves outside their homes, they would go to their customers rather than have customers come to them. This worked perfectly fine. However, now that they have office space, they invite customers and prospects to visit them and this makes a very positive impression on the customer. Also, the guides feel more professional working from this location. Key Idea #4: Surround yourself with expertise. You think back... How are Kathleen and Judy approaching the future? Answer: They have taken on partners. These men have put money in the company but also serve on a newly formed board of directors. They are both retired from big companies and know how to take what Kathleen and Judy have built and expand it to other cities. In fact, they have changed the name of the company from Sample Salt Lake to Meetings America. The name change alone has enlarged the vision and will cause the business to grow. Why? Because having a vision to focus on lets everyone know what direction to take. |
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