A Leaders Guide for Thriving in Today’s Challenging Times

Today’s leaders are faced with business challenges as tough as any over the past 35 plus years. I know. I have been in a leadership role in the industry for more than 35 years, and nothing compares to what leaders are faced with today. Nothing. Despite these difficult times, there are a significant number of landscape companies enjoying record years.

So why is it that some companies enjoy so much success and others flounder?

I’m convinced it has a lot – if not everything – to do with the leadership of an organization.

It all starts and stops with the leader.

Fundamental 1: Work Hard (and Smart) and Perform

These challenging times require sacrifice, hard work and perseverance. It’s the collective hard work from everyone in the organization – especially from our leaders. No one is going to put in the extra effort if they see their leaders coasting. Leaders need to get into the game, and invest the necessary time to get the company moving in the right direction. Don’t just put in the hours for the sake of it. But put in the needed extra effort and be visible in your business.

Recognize the power of your presence and, remember, wherever you spend your time is perceived as important by your people.

Here are some examples:

Meetings: Make sure they are worthwhile. Leaders need to be prepared, show up on time and actively participate without stifling the flow of communication. If there are assignments given to you, make sure you deliver on them.

You: Manage yourself and where you spend your time. Know where your time is best used based on where your organization is headed.

Measure the Right Stuff: Track key milestones like client and key employee retention, gross margins, new business added, accounts receivable and so on.

Now ask yourself: (reality check here)

Are you working hard and smart? Really? How much time are you spending “on” your business and not “in” your business?  Where should you be spending your time for the best leadership leverage to help with your company’s success?

How do you measure up with your leadership performance?

Now go ask your key people what they think of your answers.

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.