hawthorne effect

The Hawthorne Effect refers to the phenomenon that when management single out workers for special attention and they perform better. I suppose this works in all relationships, teacher - pupil, parent - child, coach - athlete... warden - inmate...Skipper - Gilligan...

In the original test, performed during the 1930's, they would change the level of lighting in a single department of a factory. No matter if the lighting was increased or decreased, that department out performed the rest of the factory.

We manage what we measure. Good managers measure. Great managers measure the right things, and often. The level of lighting was insignificant, it was Hawthorn's team stalking the factory floor with clipboards that drove performance. Note to self, order more clipboards from Staples.

24 BILLION DOLLAR RESIDENTIAL CLEANING INDUSTRY

The world sure has changed. 40 years ago who would have thought Americans would spend 24 Billion Dollars a year to have someone else clean their homes? 40 years ago who would have though 2/3rds of American women would be working outside the home?

Professional Maid Services, like You've Got MAIDS of Orlando, FL & Charleston, SC, have begun to flourish during the past 25-30 years.

According to the Association of Residential Cleaning Services International, the "The residential cleaning industry has become one of the fastest growing industries in the country. Professional residential cleaning services are expected to be one of the biggest generator of new jobs 1994-2005 according to the U.S. Bureau of Labor Statistics."

"More and more consumers see having their homes cleaned as a much needed service rather than a luxury. One of the most dramatic shifts in the US economy has been the growing number of dual-income households. According to the U.S. Department of Labor, over 2/3rds of American women work outside the home. "

"With the demand for cleaning services from a rapidly growing consumer base, the residential cleaning industry continues to experience tremendous growth. According to the U.S. Department of Commerce, in 2004, over 10% of all U.S. households paid a professional service to clean their homes."

"Industry estimates the nearly $24 billion dollar a year industry will continue to steadily for the foreseeable future."

3 THOUGHTS ON QUALITY

3 thoughts on QUALITY:

#1 - Quality is a lot like buying oats at the marketplace. You can always buy them cheaper if you run them through a horse first.

#2 - If you are considering hiring a professional cleaning company because their name is Quality Cleaning, they probably aren't.

#3 - Look for quality in the details of the professional cleaning company that you are evaluating. Professional Cleaning Companies need to be managed by perfectionist; sadly most are not. But let's be realist...the smartest people are operating on ACL's, riding the subway to Wall Street, or skateboarding around the Googleplex.

There are hundreds & hundreds of details to be watched, and compromise should not be in your professional cleaning companies owners vocabulary. Your cleaning companies owner is either:

• Watching the details and their volume is growing, or...
  
• They are not particular, not fussy, and do not have a pride for their business.

Look for a professional cleaning company that answers its phones, or at least calls you back promptly. Don't do business with a professional cleaning company that hasn't figured out how to create a web site. If their website URL is different than its name wonder why...this would be an important detail for most perfectionist. Do their uniforms look sharp & professional? Insist that your professional cleaning company operates out of an office...this is critical.

Just remember you always get what you pay for. You don't win by selecting the cheapest cleaning service. Insist on quality.

Don't you deserve it?

Ben & Jerry’s Mission Statement

Jack Welch says and effective mission statement basically answers one question: "How do we intend to win in this business?" Jack says the answer to this question defines you.

A mission statement forces a company to make choices about people, investments, & operating processes. Welch writes that this question forces companies to "delineate their strengths and weaknesses in order to assess where they can profitably play in the competitive landscape." So an effective mission statement balances the possible and the impossible...

One of my favorite mission statements come from a company who manufactures my favorite ice cream flavors...Chunky Monkey® & Cherry Garcia®.

Imagine Ben & Jerry’s corporate mission statement as a three legged stool. A three legged stool can not work with only two legs. Ben & Jerry’s belief is that "all three parts must thrive equally in a manner that commands deep respect for individuals in and outside the company and supports the communities of which they are a part."

The first leg of the 3-legged stool is PRODUCT, and rightfully so. Product must come first, but it can not operate in a vacuum, unless of course you're talking about the professional housekeeping service, You've Got MAIDS, whose product is service with a vacuum.

Economics is the 2nd leg. No profits, no company...pretty simple concept. Stakeholders, employees, Customers, and the communities that are touched by Ben & Jerry's should all want them to be profitable.

Social is the 3rd leg of Ben & Jerry's Mission & I feel this is the most spectacular segment of their company. Ben & Jerry mission is to care about the world around them. Very cool.

You've Got MAIDS UNPLUGGED

We are green and growing so it "maid" sense that we needed a really cool phone system to grow with us. We need a phone system that enables our different offices to communicate with each other seamlessly. I did a bunch of research and pulled the trigger on a virtual PBX company. Perhaps I should held off.

Thursday was supposed to be the day of transition from the AT&T phone system, to the cool new virtual PBX that would go over the Internet. I still needed an AT&T phone line & DSL to make it all work.

I ported over a couple of phone numbers, but not all of them, so naturally AT&T cut us off completely. Since Thursday I have not been able to access the Internet at our Orlando office. Because I can not access the Internet, I also couldn't use the cool new virtual PBX system. Prospects and Customers calling can't get through to me. I can't send emails. They say we will be up and running by Tuesday.

It is humbling to realize just how technology dependent our simple residential cleaning company has become. AT&T kept saying "I'm sorry for your inconvenience"...how callous this seems. I am in essence out of business until Tuesday.

If you became frustrated trying to reach You've Got MAIDS, I apologize. We are still here, sitting in a very quiet office.

I need to thank the fine people at Starbucks who have enabled me to reach the Internet via my laptop while I enjoy a tasty beverage. Nothing like a Frappuccino to cool down a hot temper.

We will talk with you soon.

Top 10 Low-Cost Franchises for 2007

Entrepreneur Magazine ranked the top 100 Low-Cost Franchises for 2007. 2 of the top 10 were cleaning companies. 6 of the top 20 were cleaning companies. 10 of the top 100 were cleaning companies.

Cleaning service franchises excite me, because they are simple. They require a low initial investment compared to other franchise businesses. Low inventory. They are scalable. They can offer normal hours. They do not require a Triple A Location!

Consider #60 MaidPro which they claim cost $42,900 & $75,900 to open, compared against a single Cold Stone Creamery that will cost between $294,250 & $438,850. $42,000 of that money goes to Cold Stone Creamery for their franchise fee! Ouch...

Here's some of Entrepreneur Magazine top Low-Cost Franchises:

1. Jackson Hewitt Tax Service Tax preparation services $48.6K-91.8K



2. RE/MAX Int'l. Inc. Real estate $25K-199K



3. Jani-King Commercial cleaning $11.3K-34.1K+



4. Curves Women's fitness & weight-loss center $31.4K-53.5K



5. Liberty Tax Service Income-tax preparation services $33.4K-59.9K



6. Merle Norman Cosmetics Cosmetics studio $29.6K-165.4K



7. Kumon Math & Reading Centers Supplemental education $30.5K-110K



8. Jan-Pro Franchising Int'l. Inc. Commercial cleaning $3.3K-49.9K



9. Chem-Dry Carpet Drapery & Upholstery Cleaning Carpet, drapery & upholstery cleaning
   $24.6K-203.6K



10. Bonus Building Care Commercial cleaning $7.2K-13.6K

For the rest of the list, click here.

Are You Franchisee Material?

Andrew A. Caffey of Entrepreneur Magazine asked franchisors what they want in franchisees, and 4 qualities rose to the top. Here is what he found:

1. Do You Have People Skills? Ralph Waldo Emerson wrote "So of cheerfulness, or a good temper, the more it is spent, the more it remains." Do you enjoy people? Are you the type of person that loves your Customers? Do you possess social intellect (Are you socially competent…can you effectively lead and motivate different personalities?)? You should not become a franchisee unless you know how to smile.

2. Are you “Coach-able”? Emerson also wrote “Every man I meet is in some way my superior; and in that I can learn of him.” Are you the person with all the answers? Or are you on a lifelong quest to learn more about the world around you? If you find that you are normally the smartest person in the room, franchising might not be right for you.

3. FINANCIAL RESOURCES. Do you have enough cash, or access to cash? During you first months you are going to burn through cash. It's painful, but normal to do so with a start up. Will you be able to support your business in its infancy, as well as your personal expenses? When my wife and I decided to become Domino's Pizza franchisees in 1988 we took jobs as managers. We lived off less than one of our salaries and everything else went into the bank. Going to McDonald's didn't even fit into our budget. During that time we vowed to never purchase a new car. After a year and 4 months we were ready to purchase a Domino's Franchise, in fact we were more than ready. We prospered because we were prepared.

4. BUSINESS ACUMEN. You should have an intuitive understanding of what drives profitability. You need the ability to see the big picture. You must know how to hire and fire employees, how to train, how to negotiate, how to market, and how to sell. You must have the ability to manage cash flows. Running a business is very much like running your personal life...are you constantly bouncing checks? If so you need to set that straight before other people start depending on you.

I would think that franchisors need to be driven by necessary selfishness. More of a survival instinct. The franchisors number one goal should be to grow their brand. If the franchisor picks franchisees who have no business, being in business, the beginning of that franchisors UFOC will be littered with failed franchisees. That's right, a franchisor must supply prospective franchisees with a Uniform Franchise Offereing Circular that contains list all past and present franchisees & their phone numbers.

People like to point fingers and failed franchisees are no different. If a franchisor ignores a prospective franchisees background they do so at their own peril. If this franchisee fails, do you think they will tell people they went bankrupt because of their lack of business acumen, or because they were underfunded, or that they weren't open to feedback from their franchisor, or that they really don't possess people skills? Heck no! They will blame the franchisor for everything including the kitchen sink.

To read Andrew A. Caffeys article click here.

DOES MONEY MOTIVATE OR DEMOTIVATE?

Does Money Motivate or Demotivate?

Monetary compensation has the ability to either motivate or demotivate. Money is not an intrinsic motivator unless you work for the US Mint. If a job is intrinsically motivating one finds the rewards embedded in the job itself.

As an undergraduate, I worked summers as a lifeguard on Sea Isle City Beach Patrol and then Brigantine City Beach Patrol in South Jersey. The intrinsic rewards for these jobs was that I got to spend all day on the beach, row surf boats, and once in a while save someone from drowning…what a rush!

It would have seemed vulgar to earn a cash bonus for rescuing a distressed swimmer…the intrinsic reward was much more valuable than money. Yet, monetary compensation should never be ignored.

Cash is pure extrinsic reward. It should be in line with your industry standard. Paychecks alone are not enough to motivate your team, yet if you pay below what is accepted, you will fan the flames for the malcontented few buried in your company (note to self, bury the malcontents). The company that either marginalizes or worships employee compensation is heading for trouble.

If an employee derives no intrinsic reward from their work, they will most likely devote all of their attention to the extrinsic reward of compensation. No matter how much you pay it will never be enough. It is like climbing a mountain that has no summit, no peak.

At the professional house cleaning service, You’ve Got MAIDS of Orlando, Florida and Charleston, South Carolina, we don’t marginalize pay. We believe in the Golden Rule. We strive to treat our employees with respect and dignity. Compensation is just a piece of the entire picture, but it is an important element. Our goal is to allow our maids to earn more, so they aren’t distracted from our mission. We look for people that love to clean. We look for people that take pride in what they do.

As an employer make sure your compensation practices are in line with your competitors. You don't need to go under cover to do this, just keep track during your interviews. Applicants will paint an accurate picture of what they are making up and down your Main Street.

5 Criteria for Managers

5 Criteria for managers:

1. Character. What is your managerial candidate known for?
2. Integrity. Have they demonstrated an ability to make a commitment and keep it in their past?
3. Social Intellect. Are they socially competent…can they effectively lead and motivate different personalities?
4. Ambition. Every one of us has some level of ambition. If you didn’t you couldn’t get out of bed in the morning. Unbridled ambition is red flag. I would look for an ambition level that is motivated to improve, but unlikely to burn out.
5. Spirit – Passionate people are more likely to be persuasive!

“Spending time and energy trying to "motivate" people is a waste of effort.”

You hear a lot about Jim Collins, but you don’t hear much about his brother Tom Collins. Probably not a good thing to have a drink named after you. Much better to be Caesar Cardini and be known for your incredible salad, but I digress.

Yesterday, I was rereading Good to Great by Jim Collins. The premise of the book is that good is the enemy of great. That Great Companies are not satisfied with being successful, they fight to be extraordinary. Great Companies are committed to delivering superior results. Great Companies strive to never leave unrealized potential on the table.

Jim Collins compares a company to a school bus, which is pretty cool when you consider You’ve Got MAIDS maid-mobiles are yellow. Coincidence? I’ll let you decide.

Collins states that Great Companies focus on getting the right people on their bus and the wrong people off at the next stop (best not to let them on in the 1st place). Next he focuses on getting the right people in the right seats. Not everyone has the temperament or ability to be the driver.

I don’t like to think my associates at You’ve Got MAIDS are passengers. Their roles are much more integral than that, but I like where Collins is driving. The professional maid service that ignores or marginalizes human resources will soon pay the price. When is the last time you didn’t reap what you sowed?

Collins writes that “Spending time and energy trying to "motivate" people is a waste of effort.” I don’t agree with Collins 100%, but I do concur that some companies throw too many resources at motivating their crews.

Treat your team with respect and dignity, provide training, give them timely feedback, keep your promises, expect their best, hold them accountable…if these things don't motivate your crew, you have the wrong people on your bus.

WHITMAN'S SAMPLER DESTROYS THE PREMISE OF FORREST GUMP...

This post is one of a series devoted to independent maids gone bad. - Ed.

Previously I wrote that Independent Maids are a lot like a box of chocolates, with the emphasis on you never know what you're going to get. If this statement is true, then the inverse must also be true.

You know what you're going to get from a Professional Maid Service like You've Got MAIDS. Professional Maid Services are more like a box of Whitman's. The Whitman's Sampler comes with a guide so you know what you're going to get. Without this guide one needs to poke their finger into each candy to see what is hidden below the milk chocolate casing.

Forrest would have had to find something else to talk about on that bus stop if he had been carrying a box of Whitman's. Who knows, it could have cost Tom Hanks an Academy Award. If you want to see a satellite picture of Forrest Gump's bench on Chippewa Square, in Savannah, Georgia click here.

Similar to the Whitman's Sampler, Professional Maid Services commit what they stand for to print. They share their inner self with their Customers. Nothing hidden. They are transparent.

You've Got MAIDS opens itself to the public on our web site:

• Do you Guarantee your work?
• What does Licensed and Bonded mean?
• Who pays the taxes?
• What if the maid gets hurt in my home?
• Do you require a contract?
• Do I need to supply cleaning products?

It might be fun to be as naive as Forrest Gump and to enjoy the surprise hidden in each chocolate. It wouldn't be fun if you are allergic to nuts. It's the same way with selecting your next maids. If you save a few bucks with an independent you might get just what you want; you might also get a nut.

Professional Maid Service like You've Got MAIDS aren't all the exciting...but we are predictable. We are consistent. We do our homework. We get the job done.

If you want to gamble, go to Las Vegas.

If you want a sure thing, call You've Got MAIDS.

MAID BRINGS CHILD TO WORK!

This post is one of a series devoted to independent maids gone bad. - Ed.

Independent Maids are a lot like a box of chocolates, with the emphasis on you never know what you're going to get. At least that's what Forrest's Momma always said.

My old neighbor, I'll call her Jenny, hired an independent maid. This particular illegal, independent maid charged $10 a room. My neighbor counted 12 rooms, but her calculating, illegal, independent maid counted 14 (laundry room & foyer). This unlicensed, illegal, calculating, independent maid came once a week and stays roughly 5 to 6 hours. That's 5 to 6 hours her rust bucket was parked on our street, dripping oil. No one cleans 6 hours straight so our neighbor felt obliged to prepare lunch for her employee. That's right, this unlicensed, illegal, calculating, bring your appetite, independent maid eats a free lunch that her boss prepares for her.

Our neighbor provides all the cleaning equipment, the vacuum, chemicals, cleaning cloths and mops. Moreover, she was unwittingly bearing all the risk...what if this uninsured, unlicensed, illegal, calculating, bring your appetite, independent maid got hurt...she could sue our neighbor. Imagine that.

David Bernstein, assistant professor at the George Mason University School of Law feels the "American tort system is a disaster. It resembles a wealth-redistribution lottery more than an efficient system designed to compensate those injured..." To read the rest of Bernsteins Civil Justice Memo click here.

The best scene in this drama took months to play out. One day the tax evading, illegal, uninsured, unlicensed, illegal, calculating, bring your appetite, independent maid showed up with her child. Something went wrong with her babysitter, so this little girl got to go to work and it wasn't even Bring your Daughter to Work Day. No problem, one more plate for lunch.

I suppose $10 a room just gets you the body. If you would rather entrust your homes maintenance to professionals call a company like You've Got MAIDS in Orlando, Florida & Charleston, South Carolina. We pull up in our well maintained company vehicles, trained, licensed, bonded and insured. We will never report to work with our children. We will not expect lunch. We'll even bring our own equipment.

Why settle for less?

FOCUS ON YOUR CUSTOMERS or SOMEONE ELSE WILL...

Us business people spend way too much energy chasing after the Customers we don't have. Walton, Wunderman, Crosby, Stills, Nash & Young might suggest that we are throwing our time & money away.

The best bet is to focus on our Customers. They want to love us. They are putting their hopes on us. They want us to solve their problems, and they want the process to be painless.

Here are two relevant quotes I found on Wunderman's web site. The third quote was written by Steven Stills in 1971.

• "Whenever you get confused, go to the 'store'. The customer has all the answers - and all the money," -Sam Walton, Founder, WalMart

• "Your share of loyal customers, not your share of market creates profit. Spend more on the good customers you have," - Lester Wunderman, Wunderman.com

• "And if you cant be with the one you love, Love the one your with, Don't be angry, Don't be sad, Don't sit cryin' for good times you had, There's a girl right next to you, And she's waiting for something to do" - Crosby, Stills, Nash & Young

Focus on your Customers. Focus on what is important to your Clients. Your Customers want to be able to brag about you...make it easy for them to be loyal. WOW your Customers and they will be your marketing ambassadors.

At You've Got MAIDS we are dedicated to WOWing our Clients. Our cars all have www.maidwow.com on them because it's easier to read off a moving car than www.youvegotmaids.com (both go to the same website). Even our toll free number is 888-MAID-WOW! Every day we preach and teach to our Maids on the art of WOWing their Customers. We do this because we love the one we're with.

Franchise Statistics

Here are some interesting Franchise Statistics I found on Franchise Adviser's web site. To read more click here.

• The newest IFA study says that franchising is responsible for 760,000 businesses, 18 million jobs, 14 percent of the private sector employment, over $500 billion in payroll!!


• Franchise businesses account for almost 50% of all retail sales in the United States and Canada.


• Franchise businesses employ more than 8.6 million Americans


• A 1999 study by The U.S. Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.


• A United States department of commerce study conducted from 1971 to 1997 showed that during that time less than 5% franchise businesses were shut down each year.


• Compare that to a U.S. Small Business Administration study conducted from 1978 to 1998, which found that 62% of non franchised businesses closed within the first 6 years of their existence due to failure or bankruptcy.


• Total sales by franchised businesses are expected to reach over $2 trillion, this year.


• 1 out of every 12 business is a franchise operation.


• A new franchise business is opened every 8 minutes of every business day.


• In 2000, the median gross annual income, before taxes, of franchisees was in the $74,000 to $125,000 range, with over 30% of franchisees earning over $149,000 per year.

UFOC ALMOST DONE!

Yesterday we sent You've Got MAIDS Uniform Franchise Offering Circular (UFOC) back to the attorneys for final review. At least I hope it will be the final review.

This process has been more than twice as difficult as I thought it would be.