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Business Operations 301: Getting
your employees to think like
owners

Sessions are in series
Business Operations 101: Building the
business of your dreams
Business Operations 201: Getting the most
out of your team
Business Operations 301: Getting your
employees to think like owners
© Triangle Pest Control LLC. All Rights Reserved

Lets unplug for a while
All of the following should be off:
● Cell phones
● iPads
● Bag phones
● Pagers/Beepers
● Squeakers
● If it has a battery…

Let’s Review
Business Operations 101 - Building the
business of your dreams
● Your business should work for you and
not you for your business
● Muzzle the technician
● Allow the Entrepreneur to work

Let’s Review
Business Operations 201
1.To get the most out of your people you
must fight entitlement
2.As an owner focus on the 4 keys to
performance
i. Clarity
ii. Caring (the right way)
iii.Have fun together
iv.Have expectations of high
performance

Is it better to earn a penny or save
a penny?

Example #1: 5% Profitable
Company
For every $1 saved, how much
goes to the bottom line?
For every $1 earned, how much
goes to the bottom line?

Example #1: 5% Profitable
Company
For every $1 saved, how much
goes to the bottom line? - $1.00
For every $1 earned, how much
goes to the bottom line? - $0.05

What does that mean?

What does that mean?
For every $1 saved, you would
have to sell 20 TIMES that amount
to match that in profit.

Example #2: Move just a few %
1.2.5M @15% = $375,000
2.2.5M @20% = $500,000
3.Diff = $125,000
4.What would the 15% company have to
sell in order to match the same profit
dollar of the 20% company?

Example #2: Move just a few %
3.3M (or 800k in NEW sales for the year)
Which is easier? 125k or 800k?

What is the point of these two
examples?

What is the point of these two
examples?
● It is much easier to save profit
than to earn it
● No great company becomes
great just by focusing on cost
controls…

Two basic questions to consider
● Are there inefficiencies in your
business?
● Are there opportunities that you
are not aware of?

ABSOLUTELY THERE ARE

What is the reality?
● As an owner you cannot possibly know
them all
● Most people doing the work, are in the
best position to identify opportunities
and inefficiencies
● Wouldn’t be great if you had that
knowledge? -- You do….

That is the point of this
session
● How do you engage your people to think
like you?
○ How to get them to identify and
eliminate inefficiencies
○ How to get them to identify
opportunities

The 2M Man…

My favorite Scott quotes
● “Donnie you should pay for more
benefits”
● “Donnie you should pay higher wages”
● “Donnie you should pay for our cell
phones completely”
● “Donnie you should pay more because I
don’t have enough money to pay my
bills after paying my child support”

Your employees think that you
make wheelbarrows of money

Why do they think this?
● Most people (including some business
owners) have NO CLUE on
○ How a P&L works
○ How taxes eat 40% of your profit
○ The P&L doesn’t include capital
payments
● In the absence of information, people just
make stuff up

How do you prevent the “Donald
Trump” syndrome?

Imagine a Basketball game
● There is no scoreboard
● Only one person in the ENTIRE room is
keeping track of the score
● No matter what each team thinks they
are doing fine
What do you think will happen? Why?

How to prevent the “Trump”
syndrome?
● Teach your employees how a P&L works
● Communicate where you are at
constantly
● Don’t have people playing a game in
which they don’t know the score

Employees to think like an
owner?
1.Teach them about business

Anyone ever read this book?

Freakonomics is one of my favorites
Central theme of the book:
People respond to incentives, but be
careful in how you deploy them….as they
sometimes have unintended
consequences

Incentives in the wrong way?
What is police work?
The 80MPH police car may have an
agenda

● Incentives are a powerful motivator
● Incentives can be dangerous

A day in the life at Progress
Energy
● Software developer
● Did my job and got great reviews
● I would get a bonus
○ Had no clue that it was coming
○ Had no clue there was goals
● What happened the next year (no bonus)
○ Everyone upset… What is the problem?

How do you get your employees to
think like you?
● Create an employee incentive plan
● Based upon performance of critical
results
But these things are hard to get right and
easy to screw up...

Incentive Plan Do’s
● Self funded
● Only paid if the entire company wins
(otherwise you get fiefdoms)
● Keep it simple and understandable

Incentive Plan Do Not’s
● Do not make it complicated
● Have no connection between the front
line and the incentive (otherwise it is an
entitlement)

The TPC Incentive Plan
● The 20% Rule
○ I keep the first 20%
○ They get whatever is left after that
○ After taxes BTW
● Money goes into the pool
○ Equal distribution for everyone

owner?
2.Create an effective incentive plan

When driving...

This ever happen to you….
● You’re driving
● You are not paying attention to your
speed
● You are reminded that you should be as
you pass a cop?

Do you agree with this?
When driving there are key things that you
must pay attention to and at certain times
they must be prioritized?
These are called Key Performance
Indicators
Why are KPIs important?

What is the purpose?
When you are driving a car, what is the
purpose?
When operating a business, what is the
purpose?

What is the purpose?
When you are driving a car, what is the
purpose? - To get where you are going
When operating a business, what is the
purpose? - To earn a profit

Key Performance Indicator
(KPI)
KPI Defined: Nothing more than the key
things that you do to drive results of your
purpose
How is this measured in business?

Key Performance Indicator
(KPI)
1.Profit and Loss Statement
2.Revenue
3.Growth Reports
4.Leads
5.Customer Service

Key Performance Indicators (KPIs)
According to the definition of a
KPI, are those good enough?
“It is what creates financial performance
in the business?”
Quick Question: Do those reports drive
financial results?

Just imagine….
● The driver of the motorcycle spent his
time looking in his side view mirrors.
What would happen?
● What is really creating the performance
on his motorcycle?

What really creates financial performance
in the business?
● The people in the organization
● The stuff those people do

With KPIs
● Lag Indicators
○ Tells us what happened after the fact
○ Useful… but not helpful for behavior
● Lead Indicators
○ Identifies what actions actually produce
results
○ Focuses on those behaviors that matter

What are the top-level KPIs?
● Profit
● Leads
● Revenue
● Growth
● Customer Service
What kind of indicators are these?

Lag Indicators
● Profit
● Leads
● Revenue
● Growth
● Customer Service
Most companies are VERY good at
tracking our lag indicators

Lead Indicators
● How many calls per sale
● Closing ratio in the office
● How many services for a callback
● The list goes on and on
Most companies are NOT VERY good at
tracking our lead indicators

What is the goal?
We want to as a business identify what
our lead indicators are and measure
against day-to-day behaviors that produce
results
● This is something that each department
is going to do (everyone is going to

owner?
3.Measure through the windshield

You cannot do it all
Use Rapid Improvement Plans to
accomplish one thing at a time
● Don’t try to implement everything at once
● Focus can produce amazing things

owner?
3.Measure through the windshield
4.Create Rapid Improvement Plans to
make sustainable progress

More sessions to continue this topic
Business Operations 101: Building the
company you always dreamed of
Business Operations 301: Getting your
employees to think like owners

One more shameful plug
BackOffice™
● Designed by me
● Designed to help you work on your
business not in it
● Tools for your organization to grow
● Focuses on managing your people
○ Training
○ Reviews and Inspection

Questions?
Donnie Shelton
donnie.shelton@trianglepest.com
See me at the RGA booth

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Business operations 301 getting your employees to think like owners

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