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Magnolia.ElderCare Services.2015
1.
Magnolia Company: Human
Capital Solutions 1 Running Head: MAGNOLIA COMPANY: HUMAN CAPITAL SOLUTIONS MAGNOLIA, OHIO 1864 MAGNOLIACompany LLC. Human Capital Solutions: Retirement Living and Healthcare Alternatives Executive Summary/White Paper January 2015 MAGNOLIACompany LLC © 2015
2.
Magnolia Company: Human
Capital Solutions 2 About MAGNOLIACompany LLC: MAGNOLIACompany is a consulting practice devoted helping leaders and organizations in the Retirement Living and Healthcare space develop and strengthen their capability to create customer trust as a way to create sustainable growth and success. Mutual trust among all stakeholders is the necessary antecedent for successful relationships between clients and providers in complex, high involvement service environments. The essential skills, knowledge, and behaviors for facilitating this level of alignment are well-documented; but infrequently or inconsistently practiced. If the key elements of your company’s client development and services processes are not behaviorally defined, aligned, and measured in accordance with your strategic imperatives and values; it is very likely your ability to attract and retain customers is being left to chance and anecdote; and is sub-optimal. Our research-validated, rigorous approaches have been repeatedly demonstrated to systematically create stronger client relationships and exceptional business growth. Five percent of our revenue will be donated to people and organizations in need. Our Vision: Few life choices are more personal, important, and challenging than the selection of retirement housing and/or healthcare services for our loved-ones. Yet, in the retirement living and healthcare space very few companies adequately prepare their client development representatives for their advocacy responsibility in helping families facilitate these crucial life decisions. Our vision is to improve the experience for consumers and their loved-ones in the selection of retirement living and healthcare alternatives to be consistent with those companies that practice world-class customer courtesy. MAGNOLIACompany LLC © 2015
3.
Magnolia Company: Human
Capital Solutions 3 We will focus our attention toward companies’ who aspire to service excellence, exceeding client expectations, and customer intimacy. Our Mission: The choices among retirement living and healthcare alternatives are challenging ones. These are also some of the most important financial and emotional decisions we will ever face. Peter Drucker once stated, “The purpose of a business is to create a customer” (Drucker, 2001, p. 20). In environments characterized often by confusion and debilitating dilemmas; how do we balance our need to attract customers and clients with our responsibility to be compassionate advocates for those making these major life decisions? We are compelled to believe the answer is in preparation, continuous learning, and organizational alignment. Repeatedly, the findings strongly suggests the preparation most retirement living and healthcare representatives receive compared to most other areas of healthcare is woefully inadequate including the skills, follow-up, and technical knowledge necessary for building success and sustainable client relationships. Yet, these capabilities fuel the “growth engine” of any organization! We believe the challenge in part, is one of resources. Many companies’ which care for our elder’s lack the financial and human capital resources, and occasionally the commitment to build world-class training and development programs. Our mission is to provide ‘world-class’ training, people development and coaching, and management processes in helping retirement living and healthcare companies establish trust, integrity, and compassion in the development of client relationships; and, unyielding, exceptional service as core values in the representation and delivery of products and services at standards consistent with those found in world-class companies of all kinds. MAGNOLIACompany LLC © 2015
4.
Magnolia Company: Human
Capital Solutions 4 Our Values: ♦ Fairness. We believe that all people deserve fair treatment at all times. ♦ Integrity. We believe integrity in all matters is at the root of sustainable success. ♦ Kindness. We believe in the Golden Rule in all interactions. ♦ Responsibility. We are responsible for our actions and results. ♦ Lifelong Learning. We believe learning is the foundation for growth and sustained success. ♦ Generosity. We are responsible to be generous for those less fortunate than ourselves. ♦ Humor. We believe laughter is healthy and life and work should be fulfilling and fun. Our Capabilities: ♦ Sales and sales management screening. Predictive Index; Behavioral interviewing. ♦ New hire launch and training. Derived from world-class training, education, and human development curriculums and organizations. ♦ Sales coaching, development, and succession planning. Customized development of the Behavioral Coaching Model (BCM Hannan, 2003) based upon your company’s strategic imperatives and values; Nine-Block talent review for succession planning; 360° Feedback. ♦ Sales management process, metrics, and compensation: The sales management process should focus upon both quantitative and qualitative aspects of sales execution. MAGNOLIACompany LLC © 2015
5.
Magnolia Company: Human
Capital Solutions 5 Compensation should represent and reinforce not only the desired outcome, but also the behaviors that produce those outcomes. ♦ Sales process training. Buyer-seller alignment; Questions, Trust, and Influence. ♦ Coaching effectiveness training. Behavioral Coaching Model for sales leaders: Enables the quantitative measurement of the qualitative aspects of sales execution. ♦ Sales and Operations alignment. Creating organizational understanding and focus based upon alignment of shared values and strategic imperatives among all stakeholders through a GE-style workout process. Critical Organizational Facts: ♦ Sales and sales management screening: Approximately one-third of all new hires don’t succeed (Predictive Index, 2004). According to human resource experts, the direct and indirect cost of employee turnover is projected at 150-200% of annual compensation. (Higher for sales positions because of lost relationships) (Bliss, 2004). The development and implementation of behavioral success profiles based upon core proficiencies is essential to ensuring attraction and selection of high potential sales talent (Nevins & Paxton, 2004). Research indicates that top sales professionals typically contribute up to 120% more value to the bottom line than average performers (Eichinger, 2003). ♦ New hire launch and training: A high correlation exists among the quality of new hire assimilation, subsequent success, and employee turnover. New employees have one chance at a successful start. In relationship-based sales, high turnover means lost relationships; which equates to lost opportunity for the enterprise. New hire productivity is typically at 25% for the first 4 weeks of employment. During weeks 5-12 productivity increases to 50%, and in weeks 13-20 productivity increases to 75%. The quality of new hire launch training has substantial impact upon the bottom line (Bliss, 2004). ♦ Values-based sales coaching, development, and succession planning: The documented, most effective method for improving sales execution is through systematic behavioral coaching, yet it is the most neglected motivational tool at our disposal. (Rackham, 1991). To be effective, sales coaching must be integrated and aligned with your company’s values and strategic imperatives (Beckmann, 2004). Most world-class companies practice systematic talent reviews employing processes such as the GE Nine Block in order to continually improve execution and develop bench MAGNOLIACompany LLC © 2015
6.
Magnolia Company: Human
Capital Solutions 6 strength. Additionally, 360° Feedback is one of the most widely employed processes for key position succession planning and development (Lominger, 2004). ♦ Sales process training: Buyer-Seller Alignment. Focusing upon buyer issues, needs, and concerns helps build mutual trust. While counterintuitive, the most effective way to influence buyer purchase behavior is by asking buyer-centered questions. Being sensitive to, aligned with, and in contact as the buyer reconciles purchase choices, is the most effective way to gain commitment. The critical factor in sales success is alignment with the buyer as the purchase process is navigated. ♦ Coaching effectiveness training: Sales coaching and selling are different capabilities and possess significantly different success profiles (Lominger, 2004). Most sales leaders are promoted into sales manager positions because they were successful sales representatives. While sales coaching is the most effective way to improve sales outcomes, it is one of the least practiced activities of most sales managers. If your results are not what they should be, first look at your product, then look very hard at how your sales leaders spend their time (Drucker, 1998). Eighty percent of their time should be devoted to face-to-face coaching the people that represent your product. ♦ Strategic organizational alignment and balanced scorecard: Many organizations have developed mission, vision, and values structures, but very few truly manage to them. One of the major challenges facing many organizations is misalignment among mission, values and strategic imperatives. For optimal success, your company’s strategic imperatives must be derived from, and support the mission and values of your company. The balanced scorecard serves to communicate and reinforce management’s priorities across the entire organization. It is a management system that enables your organization to clarify its vision and strategy, and translate them into action (The Balanced Scorecard Institute, 2004). Managed effectively, this creates organization-wide, laser-like focus upon executable priorities, which leads to results. In today’s competitive landscape, effective alignment with, and execution of agreed upon strategic imperatives separates successful companies from those that struggle (Pfau & Kay, 2002). Nothing causes more damage, frustration, and credibility loss in organizations than the wrong intervention applied against the right problem (2002). Sales and Operations are basically a mathematical equation whose elements must be valued equally: Great sales execution plus great operations execution equals enterprise success. For this to occur, alignment among values and strategic imperatives is essential. There are no shortcuts! References: Beckmann, M., (Personal communication during a lecture at The George Washington University, January 20, 2004). MAGNOLIACompany LLC © 2015
7.
Magnolia Company: Human
Capital Solutions 7 Bliss, W., (2004). The cost of employee turnover, Bliss and Associates: Wayne, NJ. Retrieved May 3, 2004, from http://www.isquare.com/turnover.cfm. Drucker, P., (1998). On the profession of management. Boston, MA: Harvard Business School Publishing. Drucker, P., (2001). The essential Drucker. New York, NY: HarperCollins Publishing. Eichinger, R., (2003, June). Latest research on the validity of The Leadership Architect® competencies. Paper presented at the annual Lominger Limited, Inc. users conference, Phoenix, AZ. Nevins, M., & Paxton J., (2004). Human capital talent management: Recruitment and retention strategies for today’s economy. Korn/Ferry International: Washington, DC. Lominger Limited, Inc., (2004). The leadership architect. Pfau, B., & Kay I., (2002). The human capital edge: 21 human capital management practices your company must implement (or avoid) to maximize shareholder value. New York, NY: McGraw-Hill. Praendex Incorporated, (2004). Predictive index. Rackham, N., (1988). Spin selling. New York, NY: McGraw-Hill. Rackham, N., & Ruff, R., (1991). Managing major sales: Practical strategies for improving sales effectiveness. New York, NY: HarperBusiness. SaratogaInstitute™, (2004). The hr scorecard: The new way to measure your human capital. A PricewaterhouseCoopers service offering. The Balanced Scorecard Institute, (2004). The balanced scorecard and measurement-based management. Rockville, MD. Taylor, T., (Personal communication, 1993). Board of Advisors: Marty Ramseck, Senior Vice President, Sales and Marketing, LivHOME Senior Care Services, former Vice President of Sales Process Development, Sunrise Senior Living; Field sales leader, CIGNA Healthcare, Family Health Plan (FHP), Cort Business Services. MAGNOLIACompany LLC © 2015
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