Magnolia Company: Human Capital Solutions 1
Running Head: MAGNOLIA COMPANY: HUMAN CAPITAL SOLUTIONS
MAGNOLIA, OHIO 1864
MAGNOLIACompany LLC.
Human Capital Solutions: Retirement Living and Healthcare Alternatives
Executive Summary/White Paper
January 2015
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Magnolia Company: Human Capital Solutions 2
About MAGNOLIACompany LLC:
MAGNOLIACompany is a consulting practice devoted helping leaders and
organizations in the Retirement Living and Healthcare space develop and strengthen their
capability to create customer trust as a way to create sustainable growth and success. Mutual
trust among all stakeholders is the necessary antecedent for successful relationships between
clients and providers in complex, high involvement service environments. The essential skills,
knowledge, and behaviors for facilitating this level of alignment are well-documented; but
infrequently or inconsistently practiced. If the key elements of your company’s client
development and services processes are not behaviorally defined, aligned, and measured in
accordance with your strategic imperatives and values; it is very likely your ability to attract and
retain customers is being left to chance and anecdote; and is sub-optimal. Our research-validated,
rigorous approaches have been repeatedly demonstrated to systematically create stronger client
relationships and exceptional business growth. Five percent of our revenue will be donated to
people and organizations in need.
Our Vision:
Few life choices are more personal, important, and challenging than the selection of
retirement housing and/or healthcare services for our loved-ones. Yet, in the retirement living
and healthcare space very few companies adequately prepare their client development
representatives for their advocacy responsibility in helping families facilitate these crucial life
decisions. Our vision is to improve the experience for consumers and their loved-ones in the
selection of retirement living and healthcare alternatives to be consistent with those
companies that practice world-class customer courtesy.
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We will focus our attention toward companies’ who aspire to service excellence,
exceeding client expectations, and customer intimacy.
Our Mission:
The choices among retirement living and healthcare alternatives are challenging ones.
These are also some of the most important financial and emotional decisions we will ever face.
Peter Drucker once stated, “The purpose of a business is to create a customer” (Drucker, 2001,
p. 20). In environments characterized often by confusion and debilitating dilemmas; how do we
balance our need to attract customers and clients with our responsibility to be compassionate
advocates for those making these major life decisions? We are compelled to believe the answer
is in preparation, continuous learning, and organizational alignment.
Repeatedly, the findings strongly suggests the preparation most retirement living and
healthcare representatives receive compared to most other areas of healthcare is woefully
inadequate including the skills, follow-up, and technical knowledge necessary for building
success and sustainable client relationships. Yet, these capabilities fuel the “growth engine” of
any organization! We believe the challenge in part, is one of resources. Many companies’ which
care for our elder’s lack the financial and human capital resources, and occasionally the
commitment to build world-class training and development programs. Our mission is to
provide ‘world-class’ training, people development and coaching, and management
processes in helping retirement living and healthcare companies establish trust, integrity,
and compassion in the development of client relationships; and, unyielding, exceptional
service as core values in the representation and delivery of products and services at
standards consistent with those found in world-class companies of all kinds.
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Our Values:
♦ Fairness. We believe that all people deserve fair treatment at all times.
♦ Integrity. We believe integrity in all matters is at the root of sustainable
success.
♦ Kindness. We believe in the Golden Rule in all interactions.
♦ Responsibility. We are responsible for our actions and results.
♦ Lifelong Learning. We believe learning is the foundation for growth and
sustained success.
♦ Generosity. We are responsible to be generous for those less fortunate than
ourselves.
♦ Humor. We believe laughter is healthy and life and work should be fulfilling
and fun.
Our Capabilities:
♦ Sales and sales management screening. Predictive Index; Behavioral interviewing.
♦ New hire launch and training. Derived from world-class training, education, and
human development curriculums and organizations.
♦ Sales coaching, development, and succession planning. Customized development of
the Behavioral Coaching Model (BCM Hannan, 2003) based upon your company’s
strategic imperatives and values; Nine-Block talent review for succession planning; 360°
Feedback.
♦ Sales management process, metrics, and compensation: The sales management
process should focus upon both quantitative and qualitative aspects of sales execution.
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Compensation should represent and reinforce not only the desired outcome, but also the
behaviors that produce those outcomes.
♦ Sales process training. Buyer-seller alignment; Questions, Trust, and Influence.
♦ Coaching effectiveness training. Behavioral Coaching Model for sales leaders:
Enables the quantitative measurement of the qualitative aspects of sales execution.
♦ Sales and Operations alignment. Creating organizational understanding and focus
based upon alignment of shared values and strategic imperatives among all stakeholders
through a GE-style workout process.
Critical Organizational Facts:
♦ Sales and sales management screening: Approximately one-third of all new hires
don’t succeed (Predictive Index, 2004). According to human resource experts, the direct
and indirect cost of employee turnover is projected at 150-200% of annual compensation.
(Higher for sales positions because of lost relationships) (Bliss, 2004). The development
and implementation of behavioral success profiles based upon core proficiencies is
essential to ensuring attraction and selection of high potential sales talent (Nevins &
Paxton, 2004). Research indicates that top sales professionals typically contribute up to
120% more value to the bottom line than average performers (Eichinger, 2003).
♦ New hire launch and training: A high correlation exists among the quality of new
hire assimilation, subsequent success, and employee turnover. New employees have
one chance at a successful start. In relationship-based sales, high turnover means lost
relationships; which equates to lost opportunity for the enterprise. New hire productivity
is typically at 25% for the first 4 weeks of employment. During weeks 5-12 productivity
increases to 50%, and in weeks 13-20 productivity increases to 75%. The quality of new
hire launch training has substantial impact upon the bottom line (Bliss, 2004).
♦ Values-based sales coaching, development,
and succession planning: The documented, most effective method for improving sales
execution is through systematic behavioral coaching, yet it is the most neglected
motivational tool at our disposal. (Rackham, 1991). To be effective, sales coaching must
be integrated and aligned with your company’s values and strategic imperatives
(Beckmann, 2004).
Most world-class companies practice systematic talent reviews employing processes such
as the GE Nine Block in order to continually improve execution and develop bench
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strength. Additionally, 360° Feedback is one of the most widely employed processes for
key position succession planning and development (Lominger, 2004).
♦ Sales process training: Buyer-Seller
Alignment. Focusing upon buyer issues, needs, and concerns helps build mutual
trust. While counterintuitive, the most effective way to influence buyer purchase
behavior is by asking buyer-centered questions. Being sensitive to, aligned with, and in
contact as the buyer reconciles purchase choices, is the most effective way to gain
commitment. The critical factor in sales success is alignment with the buyer as the
purchase process is navigated.
♦ Coaching effectiveness training: Sales
coaching and selling are different capabilities and possess significantly different
success profiles (Lominger, 2004). Most sales leaders are promoted into sales manager
positions because they were successful sales representatives. While sales coaching is the
most effective way to improve sales outcomes, it is one of the least practiced activities of
most sales managers. If your results are not what they should be, first look at your
product, then look very hard at how your sales leaders spend their time (Drucker, 1998).
Eighty percent of their time should be devoted to face-to-face coaching the people that
represent your product.
♦ Strategic organizational alignment and balanced scorecard: Many organizations
have developed mission, vision, and values structures, but very few truly manage to
them. One of the major challenges facing many organizations is misalignment among
mission, values and strategic imperatives. For optimal success, your company’s strategic
imperatives must be derived from, and support the mission and values of your company.
The balanced scorecard serves to communicate and reinforce management’s priorities
across the entire organization. It is a management system that enables your organization
to clarify its vision and strategy, and translate them into action (The Balanced Scorecard
Institute, 2004). Managed effectively, this creates organization-wide, laser-like focus
upon executable priorities, which leads to results.
In today’s competitive landscape, effective alignment with, and execution of agreed upon
strategic imperatives separates successful companies from those that struggle (Pfau &
Kay, 2002). Nothing causes more damage, frustration, and credibility loss in
organizations than the wrong intervention applied against the right problem (2002). Sales
and Operations are basically a mathematical equation whose elements must be valued
equally: Great sales execution plus great operations execution equals enterprise success.
For this to occur, alignment among values and strategic imperatives is essential. There
are no shortcuts!
References:
Beckmann, M., (Personal communication during a lecture at The George Washington
University, January 20, 2004).
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Bliss, W., (2004). The cost of employee turnover, Bliss and Associates: Wayne, NJ. Retrieved
May 3, 2004, from http://www.isquare.com/turnover.cfm.
Drucker, P., (1998). On the profession of management. Boston, MA: Harvard Business School
Publishing.
Drucker, P., (2001). The essential Drucker. New York, NY: HarperCollins Publishing.
Eichinger, R., (2003, June). Latest research on the validity of The Leadership Architect®
competencies. Paper presented at the annual Lominger Limited, Inc. users conference,
Phoenix, AZ.
Nevins, M., & Paxton J., (2004). Human capital talent management: Recruitment and
retention strategies for today’s economy. Korn/Ferry International: Washington, DC.
Lominger Limited, Inc., (2004). The leadership architect.
Pfau, B., & Kay I., (2002). The human capital edge: 21 human capital management practices
your company must implement (or avoid) to maximize shareholder value. New York,
NY: McGraw-Hill.
Praendex Incorporated, (2004). Predictive index.
Rackham, N., (1988). Spin selling. New York, NY: McGraw-Hill.
Rackham, N., & Ruff, R., (1991). Managing major sales: Practical strategies for improving
sales effectiveness. New York, NY: HarperBusiness.
SaratogaInstitute™, (2004). The hr scorecard: The new way to measure your human capital. A
PricewaterhouseCoopers service offering.
The Balanced Scorecard Institute, (2004). The balanced scorecard and measurement-based
management. Rockville, MD.
Taylor, T., (Personal communication, 1993).
Board of Advisors:
Marty Ramseck, Senior Vice President, Sales and Marketing, LivHOME Senior Care
Services, former Vice President of Sales Process Development, Sunrise Senior Living;
Field sales leader, CIGNA Healthcare, Family Health Plan (FHP), Cort Business
Services.
MAGNOLIACompany LLC © 2015