Creating Business Processes Like A Boss
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In the vacation rental industry, creating and maintaining business processes can be overwhelming. Is there value? Where is the ROI? Is it worth the time investment? In my talk originally given at LiveRez Partner Conference 2017, I walk property managers through the why's and how's of business process creation, usage and maintenance as well as how to setup their own cloud-bases repository to unleash their processes true power and potential in the company.
![[ A S T O R Y ]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
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Creating Business Processes Like A Boss
- 1. Creating Business Processes Like A Boss
- 2. [ A S T O R Y ]
- 3. CTO / Co-Founder SmokyMountains.com Wes Melton About Me
- 5. [ A S T O R Y ]
- 6. J O N
- 7. M E
- 8. [ A S T O R Y ]
- 9. A L S O M E
- 10. [ A S T O R Y ]
- 11. THE MOST AMAZINGREALLY REALLY INTERESTING TALK ON A TOPIC THAT SOME HAVE DARED TO CALL BORING BUT WHEN DONE PROPERLY CAN MAKE YOU RICH AND ALL OF YOUR DREAMS COME TRUE TM BEYOND BELIEF
- 12. But Tina said no…
- 16. WHY
- 17. [ Q U I C K P O L L ]
- 18. F O R T H E C O O K S
- 21. F O R T H E N O N - C O O K S
- 23. Similar Problem
- 24. What is a Business Process? A set of micro-tasks that when done in correct order produce a desired outcome for the business. Business Process:
- 27. 1 Processes Rescue Time Why this matters?
- 28. 2 Processes Simplify Decisions Why this matters?
- 29. Issue Difficulty / Frequency Graph Frequency Difficulty
- 30. Issue Difficulty / Frequency Graph Frequency Difficulty
- 31. Issue Difficulty / Frequency Graph Frequency Difficulty
- 32. 3 Processes improve guest experiences Why this matters?
- 33. 4 Processes = Replication Why this matters?
- 40. Silo of Truth
- 41. A Better Story
- 42. 5 Processes improve employee job satisfaction Why this matters?
- 44. Happy Employees = Higher Producers = More Profit
- 45. ROI?
- 47. 1 Training Cost Reduction ROI?
- 48. ROI?
- 49. ROI?
- 50. Come at me bro. ROI?
- 51. Bonus Tip ROI?
- 54. Value of your time x Hours spent on repetitive tasks = $? $200/hr * 500 = $100,000 $50,000 ROI?
- 55. ROI?
- 57. “ A Brand is how someone thinks and feels about your company and is based on the sum of all interactions they have with your business. - Richard Lazazzera ROI?
- 58. ROI?
- 59. Great experiences tend to stick with you for a time. Bad brand experiences are never forgotten. ROI?
- 60. 4 QOL - Quality Of Life ROI?
- 63. Should not be dependent on any one person. ROI?
- 64. HOW
- 67. Not useful for most businesses.
- 70. Guidelines Processes make no assumptions Sequential and procedural Include as many visuals as possible
- 71. Nitty Gritty
- 72. Where to store? A question of medium
- 73. The Cloud Is Your Friend.
- 74. Please. Do NOT store these in Word docs on a server somewhere.
- 75. Wordpress.
- 81. Search
- 83. Mobility
- 86. Google Drive
- 87. You need a few things.
- 89. Heroic Knowledge Base Wordpress Theme: https://herothemes.com/plugins/heroic-wordpress-knowledge-base/
- 91. Image Elevator Wordpress Plugin: https://codecanyon.net/item/image-elevator-for-wordpress/4311188
- 93. Process Creation / Management
- 94. Create a new process
- 96. What can I process?
- 97. Bed Bugs
- 100. Missed Cleans
- 102. It is nearly limitless. Not just operational
- 103. Success Tips
- 104. This must be cultural
- 105. There must be rewards
- 106. More is more Should be an educational tool not just a ‘how to do my job’ tool. Include notes and subtexts about “normative truths”.
- 107. Change Management
- 108. Broken Processes are Process too
- 109. Identify the SME’s
- 110. Wrapping Up
- 111. Thank You
- 112. Questions?
- 113. Thank You
Notes de l'éditeur
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- Had I not listened to my friend, I would have continued to be pulled from every angle, had no quality of life, been totally exhausted. I’m convinced that we would have never been successful and definitely never got the acquisition price that we did.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- Recipe at party example Mention that there are PMs growing rapidly that have great recipes. They may be in their head, but they’re executing those recipes and it’s giving them a competitive edge.
- For anyone who cooks on a regular basis and uses recipes, you’re already wired to think in terms of the process. And when you share a recipe you don’t just go around handing people pictures of food – you hand them a process. Even if you talk someone through how to make a dish, you typically end the convo with ‘but let me send you the recipe so you have it’. You sub-conciously already rely on the fact that millions of dishes have documented processes for how to make them and can’t really conceive of a world where recipes aren’t the status-quo with regards to information sharing.
- POLL: How many people here say that they cook on a regular basis by show of hands? How many people say they rarely if ever cook but have pizza on speed-dial? Got you covered on both accounts.
- There’s a similar problem here to the recipe’s though. Hand your phone to a toddler or a young child – even one who seems more advanced at your iPhone than you are and tell them to order a pizza. How will they do it?
- Goal for today’s talk is to convince you that everything we do in life typically involves a process and that where those processes are documented and followed closely is where the greatest success generally lives.
- 2 points – Point 1 - there is an emotioanl cost associated with the same decisions. They’re routine, but based on guest mood, the emotional cost is different. Processing the decisions removes the emotional burden. Point 2 - At scale, there are only a handful of true ”outlier” decisions that a PM really ever sees. The bulk falls in to the same categories over and over again. With documented processes for each, it takes the emotions out of it and the decision simple every time.
- We don’t need to agonize through decisions every time. Deal with them once – make a process so the next time it’s unemotional. You’re just following the process.
- Your brand is not a logo or a visual representation of your company – it is literally every single interaction a customer has with your brand. You can literally process everything from tough Customer Service calls to how a bed should be made to intentional positive experiences for guests. Common reaction to this is that you can’t “process magic” or spontaneity. I would say, Disney disagrees and have been doing it for years. If you have strong enough processes in place that are being followed by your staff, the guest will not be able to distinguish from magic.
- With well documented processes, you, the owner of the business can literally be in a thousand places at once. Impossible otherwise. Are you thinking about retiring with a GM in place running it exactly as you are today? If you’re not, you should be.
- PMs get burnt out and quit.
- Told yourself this deceptive narrative: Finally! An employee, so now I won’t have to deal with XYZ because they will be. Finally I can focus on the really important stuff!
- Told yourself this deceptive narrative: Finally! An employee, so now I won’t have to deal with XYZ because they will be. Finally I can focus on the really important stuff!
- Told yourself this deceptive narrative: Finally! An employee, so now I won’t have to deal with XYZ because they will be. Finally I can focus on the really important stuff!
- Told yourself this deceptive narrative: Finally! An employee, so now I won’t have to deal with XYZ because they will be. Finally I can focus on the really important stuff!
- Told yourself this deceptive narrative: Finally! An employee, so now I won’t have to deal with XYZ because they will be. Finally I can focus on the really important stuff!
- PMs get burnt out and quit.
- Yes, you should absolutely start this when you have zero employees.
- A hectic, undocumented environment not only hurts your brand from a customer perspective, but leaves your employees feeling exhausted. Happy Employees = Higher Producers = More Profit
- In a documented workplace when a guest checks in and is unhappy and immediately picks up the phone to tell you how bad it is, the CSR isn’t going to have any decisions to make. They’ve got a process they can follow that will make the decisions for them. It removes the emotional stress from the situation for the employee.
- Processes help you be in two places at once
- After day 1 she knew Kung-Fu. She didn’t know everything but had a great grip on the brand and how we think about things.
- 3 days later it was like she was seeing the Matrix in code.
- 2 Weeks in she was all like, ‘Come at me bro.’ She was a rockstar – had very few questions. When she did they were good ones – not things already explained in the docs.
- This is a good way to qualify employees early on. The number of “dumb” questions (e.g. that they would have read in the process documents) will correlate strongly to how good or bad of an employee they’re going to be long term.
- Every property is different, but mostly the same. 60% of the time we hosted guests the same day we on-boarded a property. I wasn’t running to units and my staff wasn’t either. We had vendors following our processes to get it ready. Even if we didn’t get the keys til noon or one, we had guests in at 4 who were having great experiences – because we had the processes in place.
- How much is your time worth? How many hours a year to do spend on repetitive tasks?
- Every time you hire a staff member or vendor, you’re influencing your brand’s position with your customer. You’ve got to be there influencing, training, infiltrating their mind with your brand. Process adoption is the answer. Cultural Disemination comes from your documents too.
- How much is your time worth? How many hours a year to do spend on repetitive tasks?
- How long do you want your brand to survive? Do you ever hope to step away and hire a GM?
- Circling back to the recipe. In most families, there is an elder family member who has those 4 or 5 recipes they make on the holidays that everyone is competing to get in line for. But inevitably what happens? When that family member passes away, the recipe is lost. No one really knows how to make it and that information is lost forever. This is literally happening in your business every single day if you’re not process-oriented. You can tell someone how ot do something, but they’ll eventually forget.
- Growing a company that will not survive.
- CSR: Boss I’ve got a guest on the phone who is saying their wife fell down the stairs and broke their leg and are going to sue us. Manager: Here ya go – this handy process document will get you covered. CSR: ?????
- And definitely not in the Word Doc’s uglier cousin – The paper bound 3 ring binder.
- Add slides?
- These are just some of the more complex things. You can process out all of the simple tasks that get done over and over again in the system every day.
- Do: Enforce documented processes as the first go-to resource for employees. Don’t: Allow employees to come to you and ask you questions that are answered in the Knowledge Base. Unless it’s a true emergency, always point them back to the process and then ask them to let you know if they have questions.
- ● Do: Include notes and subtexts about “normative truths”. This means, if there are options, but it’s normally ‘A’ and not ‘C’, educate the employee about this broader reality of the business. ● Don’t: Put as little helpful information as possible in your process and invest little to no time in developing your staff’s global understanding of your business. Should be an educational tool not just a ‘how to do my job’ tool.
- This often gets neglected. Think we’re going ot run in and fix a bunch of issues but wind up blowing up employees confidence along the way.
- Had an employee – I asked her to go do a task in the system that for me was a 2 step process. Was honestly so simple I never prioritized documenting it. I stood by her and watched her go in to the system, get a piece of information, then go to her email, do a search, grab some info out of there, then do another search to find another email, then back in to the system to do another search, and then finally was at the place where I had wanted her to be. She wasn’t a bad employee – this employee was a rockstar. But when I showed her the correct way, it was so hard for her to grasp because she had built a process to do a task on her own and it was the only way she knew how to do it.
- As you grow, some processes will get built without you by your best employees. It’s inevitable. Activate those employees – teach them how to document those processes and then incentivize them to participate in the creation of these processes. Then review – if you need to make tweaks to better align with your business goals, great! Most of the leg work was already done.
- So like I said before, if you’re not already doing this, start. As soon as you get back, start. Start with one. I promise you – if you invest the time and resources in doing this, you will have a much easier time building a brand that is Manageable, Scaleable, and Profitable. And yes – everyone in this room can do it.
- Questions?