The season just started and it’s the crucial “100 days of Hell” before July 4th when you can either make it or break it. It’s when your operations go from 0 – 60 at mach speed but are they running as efficiently as possible?

Any of this sound familiar: Weak cash flow, high payables, skyrocketing overtime, nerves on edge and payroll going through the roof. Why? Most of the time it’s because processes haven’t been implemented to optimize operational efficiency.

Imagine having a process to:

• Increase productivity
• Cut the overtime
• Reduce the payroll
• Increase your cash flow

Yes, imagine having more cash, immediately in your pocket that is reclaimed from, “non-billable time”. Non-billable time runs between 10% and 20% of your labor cost each year according to Industry Experts. The result? Thousands of wasted dollars!

Think about it, if an un-billable hour costs you $18.00 (with labor burden) and you turn that into a billable hour of $ 36.00 the swing is $54.00! If you had 10 crew people and saved 1 hour a day each for a week, that’s 50 hours. Turn those hours into billable time it’s a swing of $2,700.00 a week, $10,800.00 for a month! But HOW!

Now, The Harvest Group has developed an Operational Efficiency Assessment. Our Head Harvesters use this tool to reveal all areas of inefficiency and associated cost. We then create a customized plan with proven recommendations that will immediately provide a solution. When adopted, we guarantee it will improve effectiveness and lower cost!

Some Harvest clients have increased gross margins from 2%-8% the first season, that’s a pile of CASH. By shifting non-billable inefficient time to billable – huge swings can occur as described above. We think that’s pretty darn good!

NOW, during these crazy “100 Days” is the best time to have an expert assess your operations while they are in full swing!

Call or email to schedule your assessment:

Ed Laflamme LIC – US East
203-858-4696 (cell phone)

Bill Arman – US West
949-466-8837 (cell phone)

Success in any organization depends on setting clear expectations and goals. And making sure that everyone in your organization clearly understands his or her role in that process is crucial to moving forward.

To ensure that everyone in your organization is clear about the road ahead and what’s expected of them along the way, it’s key that everyone, including You, the leader, is able to answer these six questions:

1. What am I supposed to be doing?
2. What are the expected goals or standards?
3. How does my performance match up to these goals?
4. What do I need to learn or do to improve?
5. What can I expect if I am successful?
6. What happens if/when I fall short?

Once you and your people have a clear sense of what’s expected–evidenced by an ability to answer the Six Questions above–you’ll be well on your way to success and accomplishing your mission.

Setting Clear Expectations

One of the most important responsibilities of any successful leader is to make their expectations–both of themselves and their people–crystal clear. To eliminate any misunderstandings about the way ahead and what’s expected, make sure you, as well as everyone else in your organization, can answer the following questions…clearly.

Years ago at a seminar, I learned this simple, yet effective way to find out how things are really going at your company from your people’s point of view. It’s one of the best tools I’ve ever used in relating with team members. It helps you keep in better touch with your employees, finding out where their morale stands and what they’re learning, and provides you with valuable input on how we can all get better.

It’s called the 10-15 Report, and it goes like this.

Frequency:
I do this once a month at the most and quarterly at the least, with all key people, including Crew leaders, Supervisors, Business Developers, Office People and Managers.

For new key employees and interns I do it once a week for the first 90 days.

How it works:
Just like the name of the report implies, it should take employees no more than 10 minutes to fill out and then only about 15 minutes to review with their direct-report supervisor. Remember, the point of this is to gauge your employees’ responses and to help prevent any minor issues from becoming major ones.

The Report includes 3 simple questions and asks for the following input:

My morale this week is _____________________________________

The most important thing I have learned this (week, month or quarter) is
________________________________________________________

I would like to make this recommendation or suggestion to the company: ________________________________________________________

Take 15 minutes of uninterrupted time to sit down and review the feedback. Decide on some action steps, if any are needed, to help resolve or address issues brought up, and set a time for the next report/review. Watch the magic begin.

The 10-15 Report is a fantastic people tool. I guarantee you’ll find that by LISTENING to your employees and learning where they stand, you’ll open the door to better communication.

You’ll also discover a great source of new ideas on how your organization can improve!!

The landscape business is a relationship business. People use your services because they like and trust you, so make sure you remember to thank them whenever they help or think of you.

I’ve preached this for some time and think it’s so important I even included a section about it in my book, Green Side Up, it’s called Keep Referrals Rolling in the Door.” (see page # 177)

Your customers are your salespeople

Most of our Harvest Members grow their businesses through referrals from happy, satisfied customers.

Because of this most spend very little on advertising and marketing. That’s why I’m concerned whenever I ask some of our Harvest Members if they are rewarding referrals and they say “no”.

In the best sense, your customers are your salespeople. If you want the referrals to continue, you must reward the behavior. If you don’t, trust me, they will stop, it’s just human nature.

Here are 3 typical referral situations and some ideas on how you might reward the person who referred you.

1. You go on a referral, offer a proposal and don’t get the job.

A phone call or personal thank you note, on company note paper is appropriate in this case. It only takes a few minutes. Make the time.

2. You go on a referral, offer a proposal and get the job, not a huge one say, under $5,000.00 or maybe even $ 10,000.00.

In this situation, you don’t want to break the bank but show your appreciation. Why not send a fruit basket? It’s quick, it’s easy and it’s not expensive. Isn’t a $5,000.00 job worth a $65.00 fruit basket? Keep the fruit basket number on your cell phone. And send this gift so they get it on a Friday afternoon. That way they’ll have the weekend to enjoy it and they’ll impress their visitors as well. Oh – be sure they are going to be home.

3. You go on a referral and get a great (big and profitable) job.

A fruit basket may be appropriate, but you want to do something special for the person who connected you with this new customer. Send them a gift certificate to a great restaurant in your area, not in their town but one between 20 to 30 minutes away, I’ve found people like to travel a bit for an occasion. Oh, and be generous, say between $100.00 and $150.00. You can usually buy gift certificates from any restaurant right over the phone, so it will only take a few minutes. Once you receive the certificate, be sure to enclose a nice note of thanks. Wow, will they be surprised!

Remember to reward the behavior and you’ll keep those referrals rolling in, matter of fact your customers will be looking for opportunities to spread the word. When you have good experiences, call or email because Bill and I would love to hear about your successes!Show

The subject of rising fuel costs has been quite a topic of conversation among Harvest Members as well as being listed as the number one issue PLANET members are faced with. As a result we felt it a good idea to share with you what some members are doing and give you some ideas to think about and possible actions to take.

Initially the Head Harvesters thought it might be a bit of “nickel and diming” your customers if you try and impose a fuel surcharge but it looks like we are in this for the long haul. The price of both gas and diesel looks like it may stay at present levels with even a possibility of higher amounts before the end of the year. Remember in Britain gasoline is $6.00 per gallon with diesel at $11.50 and Europe it’s around $7.00 per gallon for gasoline and $8.50 for diesel.

Here Are Some Suggestions:

Existing Maintenance Contracts with No Fuel Increase Clauses:
Some are charging 2% on the total amount for the month. I heard one guy, not a Harvest Member, trying to charge 5% but we think that is a bit absurd. Another Member is charging 1.5% on just the mowing and other operations that use a lot of fuel. These are reasonable and fair. With the Members that are doing this the reports are very little customer resistance.

Helpful Hint:
If you decide to impose an increase we suggest that you, don’t guess your costs, but determine approximately how many gallons you will be using this year and how much more you will be paying this year over last. Figure the increase in dollars and as a percentage. With this knowledge calculate how much of a surcharge you need to add to recoup the increased costs. Now, if you decide to impose the charge and challenged by a customer you can rationally discuss the reasons for your request.

Important:
We suggest that if you do impose a surcharge you send a letter prior to or at least one that accompanies the invoice to explain the reasons. This will help to “soften the blow”.

Lastly:
The Harvesters suggest you immediately create a “Fuel Cost Adjustment” clause that will be inserted in your contract for any future maintenance or long term landscape construction contracts. With such a fuel adjustment clause there will not be any debate about the surcharge, it will just be done automatically.

Hope this has been helpful. If you want to discuss this matter further don’t hesitate to contact us.