Saturday, March 31, 2012

Business Coach Asks the Hard Questions - NYTimes.com

In my last post, Susan Martin, a business coach, pressed Alexandra Mayzler to articulate her vision for her company, Thinking Caps Tutoring. Ms. Mayzler was clear that she wanted to see a ?revolution in education? that elevated the importance of study skills. She was less clear, however, about what role her company might play in this revolution.

Next, Ms. Martin turned to Susan Parker, who owns Bari Jay, which makes and sells bridesmaid and prom dresses. ?My vision is much shorter than Alexandra?s,? Ms. Parker said. ?I just want to have more control over my manufacturing.?

?Let?s take it one step further,? Ms. Martin responded. ?If you had more control, what would that allow you to do??

?To grow the way I want to grow,? Ms. Parker said. ?Right now, I?m so dependent on how many dresses I can get made and where and how that I?m constantly worried.? Last year, she said, Bari Jay grew so quickly that she wondered if its success would lead to its demise. ?If people can?t get the dresses they ordered, they?re not going to want to do business with you,? she said. Things worked out in the end and have improved this year, but looking ahead, Ms. Parker believes manufacturing in Asia, where prices are rising, will become increasingly challenging. ?If you push them too much, either with delivery or price, then you sacrifice on quality,? she said, ?and that?s one thing we?re trying not to do.?

Ms. Parker hired a consultant to help Bari Jay explore other options. ?I?m looking into domestic production again, but I?m still unionized, which makes it difficult,? she said. If Bari Jay manufactures its dresses in the United States, it must use union factories, an expensive proposition. ?On top of that, the U.S. doesn?t really have the skilled workers anymore,? she said. Still, Ms. Parker is speaking with union representatives to see what is possible, and her consultant is trying to find suitable union factories.

Central America, which her consultant suggested, is also under consideration. She asked him to research it, and get back to her. Ms. Parker said someone suggested Bari Jay build its own factory. ?I?m like, O.K., that sounds really expensive and really difficult,? she said. ?But get me information and I?ll look into it.? Ms. Parker feels the issue is in good hands and the process has just begun.

Ms. Martin asked how things would change for Bari Jay if its manufacturing woes disappeared.

Ms. Parker said she envisioned no major changes. She loves Bari Jay?s business model, which focuses on selling through smaller boutiques as opposed to department stores that take a greater chunk of the profit. ?I want to grow, but keep my margins the same,? she said.

In a perfect world,?Ms. Martin asked, how would your role change?

Ms. Parker said it probably wouldn?t change either. As a result of their work with their own business coach (not Ms. Martin), Ms. Parker said she and her sister, a co-owner, were seeing the big picture more and had mostly freed themselves from the compulsion to micromanage their employees. To the extent Ms. Parker keeps a hand in certain day-to-day tasks, she said, ?It?s because I?m a control freak and I like those things.?

Turning to Jessica Johnson, Ms. Martin asked her to share her vision for her company, Johnson Security Bureau.

?My vision is more long-term,? said Ms. Johnson. ?I want to have something that I can pass on to my children ? I don?t have any children yet ? and that they would want to be involved with.?

Like Ms. Parker, Ms. Johnson is pleased with developments at her business and would like to continue growing. ?If we just close the contracts that we?re currently negotiating, we?ll double last year?s sales,? she said. Just as they did from 2010 to 2011.

?Nice job,? said Ms. Mayzler.

But Ms. Johnson isn?t complacent. Because Johnson Security waits 30 to 90 days for payment on various contracts, it is exploring ways to bring in money faster. The company could, for example, offer training, product sales, or consulting services, in addition to traditional security services.

?What?s your biggest challenge?? Ms. Martin asked.

?Talent development,? Ms. Johnson said, without hesitation. Even though the skills required of security guards are very basic, many candidates lack them. Most of her employees have neither high school diplomas, nor G.E.D.s. ?Similar to what Alexandra said, our education system isn?t preparing people to have basic skills,? she said. ?So, we?re expected as employers to train the workforce.?

The security industry is also dogged by low expectations. Ms. Johnson said her customers self select to a degree, but it?s common for companies to balk at paying more than $8-an-hour for security guards. ?If you want someone that is going to be alert, and able to write reports and speak intelligently, you?re going to have to pay that person more,? she said. ?If you don?t want to pay for it, then I?m not going to do business with you. There are 400 other companies you can deal with.?

?What have you done to address these issues so far?? Ms. Martin asked.

?We just try to stay very hands-on with clients, and over-communicate with them,? Ms. Johnson said. She recently visited one who was impressed that she made the effort. No matter how busy she gets, Ms. Johnson said, these visits are important because they help her understand her clients? businesses and let them know she cares. ?They know there?s a difference,? she said. ?For those who aren?t there yet, as my grandmother would say, you just have to keep loving on them until they get it.?

As for her employees, ?It?s a work in progress,? Ms. Johnson said. ?Some will get it and stay with the company and those who don?t will leave ? churn and burn.?

You can follow Adriana Gardella on Twitter.

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