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Opinion Editorials

Using Pal’s Sudden Service model can make you famous for service, staff retention

(EDITORIAL) Winner of the 2001 Malcolm Baldridge Quality Award — the first restaurant to do so — Pal’s is a fan favorite with a turnover rate a third lower than the industry average. Here’s how they do it.

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It’s no accident

Regardless of your business, its focus is on people: the people you engage as customers, served by the people that you hire. It’s not about what you make, but about who you make it for, and how well the people who represent you do that. Impassioned customer engagement and employee retention doesn’t happen accidentally. It’s earned, day after day, by a devotion to establishing and maintaining your culture with the people who are hired and trained to do so.

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We all should be looking for ways to create the best customer experience by investing our energy in those things which we can control, starting with our employees and their experiences.

As we look to companies that are renowned for their customer service, such as Walt Disney or Zappos, it’s easy to say to ourselves, “Well, if I had the money and resources that those companies do, it’d be easy for me to have a more attractive experience for my customer and employee.” But there are companies much smaller in scope who deliver an amazing customer and employee experience.

How Pal’s Sudden Service succeeds

Located on the Tennessee/Virginia border, Pal’s Sudden Service is a quick-stop restaurant (QSR) with 26 stores that’s physically similar to other such restaurants, excepting that it’s a drive-thru only. However, there are many differences. When cars approach the dual drive-thrus, customers provide their order to a Pal’s employee face-to-face, rather than through a speaker.

This is such a hallmark of Pal’s that their recent advertising campaign was titled “Face-to-Face”, highlighting the speed and accuracy that come from beginning the order process talking to a person rather than a screen, allowing customers to progress through the line faster and resume enjoying their day. Speaking of their speed and accuracy, it’s legendary.

From the time of first contact with a Pal’s employee, the customer orders and receives their order within 30 seconds. By way of comparison, the next closest competitor completes the process in two minutes, four times slower than Pal’s. Now, you might well be thinking, “Great. They’re fast, we can be fast at my business, but only being fast doesn’t guarantee customer satisfaction.” And you’d be right.

It’s about more than just speed

The story of Pal’s transcends speed. Winner of the 2001 Malcolm Baldridge Quality Award — the first restaurant to do so — Pal’s makes a mistake in a customer order only once in every 3,600 orders, reports Harvard Business Review.

In comparison, that’s ten times better than their closest competitor, and the combination of speed and accuracy has won them loyalty from their customer base, as well as being a company worthy of study by competitors and management experts alike.

How do they do it, and how can we apply their methodology to our companies? It all comes down to their approach to their employees.

Retention begins with selection

Pal’s 26 locations employ roughly 1,000 workers. 90 percent are part-time, and 40 percent are between 16 and 18 years old. Given the complexities in managing this segment of the demographic, the hiring process at Pal’s begins with an extensive psychometric screener, a 60-point check to see how well the candidate is aligned with the attitudinal characteristics of Pal’s most talented employees.

“We’re believers that birds of a feather flock together,” said CEO Thom Crosby, speaking to the Harvard Business Review. “If you start having an operation with weak crew training and not a lot of really good leadership by managers, the people who apply there are the same kinds of people. We go the opposite direction.”

Training never stops

The work’s just beginning when employees are hired. At Pal’s, training isn’t a one-time event, but an intense process designed to ensure that all employees can successfully do all of the tasks involved in operating the store, with frequent rechecks to test for proficiency.

Employees new to the company receive 120 hours of training before they are allowed to work independently.

Each of the tasks that they do is accompanied by a certification test, which must be passed as well before they can work on their own.

The training is continuous: daily, in each restaurant on each shift, the company’s training software generates the names of employees that must be recertified in one of their areas of responsibility. Think of these as a form of a surprise quiz for the employee; they complete the brief test, and if they aren’t successful, they must be retrained in that area before they can do it again independently. This occurs for every employee on average 2 to 3 times monthly.

“Human beings go out of calibration, just like equipment”, said Crosby.  “We see so many operations that have training and they’re so happy when a trainee can pass a test. Then they sign off on this person as “trained” and they usually don’t revisit that person unless there’s a really severe performance issue.”

By focusing time, energy, and money on ensuring that employees don’t have the opportunity to go out of calibration with the expected standard, or to develop bad habits, Pal’s focuses on not only quality, but also culture in the same stroke.

Staff development is not a one-off event, especially for the part-time or adult learner.

By focusing on your staff as assets to be developed, rather than employees with varying levels of performance based on infrequent or non-existent training, you meet the needs of your customer and demonstrate to your employee that they matter.

Leadership never rests

At Pal’s, leadership is a serious endeavor in coaching employees. All leaders, including the CEO, are expected to spend 10 percent of their time daily teaching a specific skill to a specific employee. “At Pal’s, every leader needs to have a coaching and training target every single day,” said Crosby to Burger Business. “As CEO, I’m not exempt: Anyone is welcome to ask me my coaching target on any day.” This hands-on approach is bolstered by their master reading list, a selection of 21 books spanning leadership classics, alongside modern tomes on quality. These books are discussed at a bi-monthly book study occurring with the CEO and selected management.

This approach is also seen in how they approach their role within the industry. After winning the Malcolm Baldridge Quality Award, the company created its Business Excellence Institute (BEI) as a development arm to provide best practices to others. As a sign of their success, one of their clients, Austin’s K&N Management became the second restaurant winner of the Baldridge award in 2010.

The result of all this? The customers are unswervingly loyal, and the employees stay employed.

In an industry renowned for its turnover rates, employee turnover rate for hourly employees is one-third the industry average.

Among leaders, it’s lower still. Over more than three decades, only seven general managers have left the company voluntarily, and assistant managers have an annual turnover rate of 1.4 percent.

How do we apply this to our individual circumstances? By focusing on the customer through the lens of improving your employees, you receive dual benefit. Your employees satisfy your customer, and you’ve invested in the best walking advertisement for your company that you can: a carefully selected employee who’s been well-trained and coached to take care of your customer.

#WorkForYourWorkforce

Roger is a Staff Writer at The American Genius and holds two Master's degrees, one in Education Leadership and another in Leadership Studies. In his spare time away from researching leadership retention and communication styles, he loves to watch baseball, especially the Red Sox!

Opinion Editorials

DNA tests are cool, but are they worth it?

(OPINION EDITORIAL) DNA tests are all the rage currently but are they worth potentially having your genetic makeup sold and distributed?

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Over the last few years, DNA testing went mainstream. Companies like Ancestry.com and 23andMe have offered easy access to the insights of your genetics, including potential health risks and family heritage, through simple tests.

However, as a famously ageless actor once suggested in a dinosaur movie, don’t focus too much on if you can do this, without asking if you should do this.

When you look closely, you can find several reasons to wonder if sending your DNA to these companies is a wise choice.

These reasons mostly come down to privacy protection, and while most companies do have privacy policies in place, you will find some surprising loopholes in the fine print. For one, most of the big players don’t give you the option to not have your data sold.

These companies, like 23andMe and Ancestry.com, can always sell your data so long as your data is “anonymized,” thanks to the HIPPA Act of 1996. Anonymization involves separating key identifying features about a person from their medical or biological data.

These companies know that loophole well; Ancestry.com, for example, won’t even give customers an opt-out of having their DNA data sold.

Aside from how disconcerting it is that these companies will exploit this loophole for their gain at your expense, it’s also worth noting that standards for anonymizing data don’t work all that well.

In one incident, reportedly, “one MIT scientists was able to ID the people behind five supposedly anonymous genetic samples randomly selected from a public research database. It took him less than a day.”

There’s also the issue of the places where that data goes when it goes out. That report the MIT story comes from noted that 23andMe has sold data to at least 14 outside pharmaceutical firms.

Additionally, Ancestry.com has a formal data-sharing agreement with a biotech firm. That’s not good for you as the consumer, because you may not know how that firm will handle the data.

Some companies give data away to the public databases for free, but as we saw from the earlier example, those can be easy targets if you wanted to reverse engineer the data back to the person.

It would appear the only safe course of action is to have this data destroyed once your results are in. However, according to US federal regulation for laboratory compliance stipulates that US labs hold raw information for a minimum of 10 years before destruction.

Now, consider all that privacy concern in the context of what happens when your DNA data is compromised. For one, this kind of privacy breach is irreversible.

It’s not as simple as resetting all your passwords or freezing your credit.

If hackers don’t get it, the government certainly can; there’s even an instance of authorities successfully obtaining a warrant for DNA evidence from Ancestry.com in a murder trial.

Even if you’re not the criminal type who would worry about such a thing, the precedent is concerning.

Finally, if these companies are already selling data to entities in the biomedical field, how long until medical and life insurance providers get their hands on it?

I’ll be the first to admit that the slippery slope fallacy is strong here, but there are a few troubling patterns of behavior and incorrect assumptions already in play regarding the handling of your DNA evidence.

The best course of action is to take extra precaution.

Read the fine print carefully, especially what’s in between the lines. As less scrupulous companies look to cash in on the trend, be aware of entities who skimp on privacy details; DNA Explained chronicles a lot of questionable experiences with other testing companies.

Above all, really think about what you’re comfortable with before you send in those cheek swabs or tubes of spit. While the commercials make this look fun, it is a serious choice and should be treated like one.

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Opinion Editorials

How to deal with an abusive boss and keep your job, too

(OPINION EDITORIAL) Sometimes bosses can be the absolute worst, but also, you depend on them. Here’s how to deal with an abusive boss and, hopefully, not get fired.

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Nothing can ruin your work life like an abusive boss or supervisor. But when you’re dependent on your boss for assignments, promotions – heck, your paycheck – how can you respond to supervisor abuse in a way that doesn’t jeopardize your job or invite retaliation?

A new study to be published in the next Academy of Management Journal suggests an intriguing approach to responding to an abusive boss. As you might expect, their study shows that avoiding the abuser does little to change the dynamic.

But the study also found that confronting the abuser was equally ineffective.

Instead, the study suggests that workers in an abusive situation “flip the script” on their bosses, “shifting the balance of power.” But how?

The researchers tracked the relationship between “leader-follower dyads” at a real estate agency and a commercial bank. They found that, without any intervention, abuse tended to persist over time.

However, they also discovered two worker-initiated strategies that “can strategically influence supervisors to stop abuse and even motivate them to mend strained relationships.”

The first strategy is to make your boss more dependent on you. For example, one worker in the study found out that his boss wanted to develop a new analytic procedure.

The worker became an expert on the subject and also educated his fellow co-workers. When the boss realized how important the worker was to the new project, the abuse subsided.

In other words, find out what your boss’s goals are, and then make yourself indispensable.

In the second strategy, workers who were being abused formed coalitions with one another, or with other workers that had better relationships with the boss. The study found that “abusive behavior against isolated targets tends to stop once the supervisor realizes it can trigger opposition from an entire coalition.”

Workplace abuse is not cool, and it shouldn’t really be up to the worker to correct it. At times, the company will need to intervene to curb bad supervisor behavior. However, this study does suggest a few strategies that abused workers can use to try to the tip the balance in their favor.

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Opinion Editorials

Avoid the stack, conquer busy work as it comes

(PRODUCTIVITY) It’s easy overwhelmed with emails and a stack of real mail. But tackling as it comes may help to enhance organization and productivity.

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A few weeks ago, I was walking through my office (also known as my bedroom after 5 p.m.) and I noticed a stack of mail that I had tossed aside over the course of the last few months. While they were non-urgent, this collection of paperwork had been opened, read, and left unattended.

Now, this was a classic move of mine – leave a mess for Future Taylor to clean up. So, imagine my surprise when Present Taylor woke up and decided to put an end to “the stack.”

I sat down, went through everything, and took care of what needed to be done. Even though my wallet took a few hits, it felt great to have this cleared up and off my desk.

Right then and there, I made it a rule to let things only cross my desk once (unless there’s some extenuating circumstance in which it requires me to come back to it; i.e. my favorite sentence on this paperwork “This is not a final bill.”) There’s no point in drawing out the stress that “the stack” induce.

This led me to finally attacking something that’s been on my to-do list since I created my Gmail account in 2009 – create an organizational system.

I set aside some time to create folders (for individual projects, people I communicate with frequently, etc.)

While this is all stuff that you may have already implemented, my point is that this increase my productivity and lifted a weight off of my shoulders I didn’t acknowledge was there.

So, I encourage you to find one of those menial tasks that has been on your to-do list forever and tackle it.

This can include, organizing all of your electronic files into folders, updating your phone and email contacts, or going through all of your desk drawers to get rid of unneeded items. Organizing and freshening up your workspace can help increase your focus.

Once you’re organized and in gear, try the “let it cross your desk once” method. When an email comes in, respond to it or file it. When a bill comes in, pay it. You may be surprised at your rise in productivity.

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