WEEK 19

BRAINSTORM PROBLEM SOLVING WITH YOUR STAFF

Several years ago, I started Summit Title, my own title company. Because every real estate transaction involves a title search, I thought this would be a natural extension of my brokerage work. I studied the market and hired a good staff and a great manager, who was a top salesperson in her own right.

We had a great opening month, and I thought I was a genius. Then the slide began. Our company wasn’t yet well established. We had no customer base, and many of our new salespeople were inexperienced. We didn’t have enough cash coming in to cover overhead, and pretty soon we had a serious problem on our hands.

I talked to my in-house lawyer, Peter Allen, who had helped me start Summit Title, and we went back and forth over whether we ought to close it down at once or try something else. I hated the idea of closing it. It was one of my babies, my pet projects, and I really believed that it would work. But I couldn’t ignore the red ink, either, so we discussed how best to cut back without gutting the operation.

Rumors got around to the staff, and our manager came to me and said her staff wouldn’t agree to take 20 percent pay cuts. I told her I didn’t expect them to, but that some cutbacks were probably necessary. We just hadn’t figured out what yet. A couple of hours later, she returned to my office. “Ralph,” she said, “instead of laying off people, fire me. Don’t pay me this big administrative salary. I’ll become a salesperson.”

I said something like, “You’ve got to be kidding. You’re supposed to run the show.” And she said, “Who’s the best salesperson on the team? I am, right?” And I had to admit that she was right.

I went home and talked to Kathy, my wife, who actually owned the business at the time. She agreed with our manager. “Your job isn’t to micromanage these operations, Ralph,” she told me. “That’s what you have a manager for—to manage.”

So the solution to our problem at Summit Title was to let our manager quit and come back as a salesperson. She was happier doing deals again (and actually earning more money in commissions than she had earned in salary as a manager). We trimmed our costs substantially, and we were able to save the firm.

This story illustrates several points about problem solving. Everyone knows you have to “think outside the box.” But how many of us actually do it? In this case, we had two guys with years of experience (me and my lawyer, Peter) basically coming up with the same old solutions—cut costs by firing people or shut down the operation. Both of these were very uncreative and unproductive solutions. It took our manager to come up with a much more creative solution—one that was good for the company and everyone involved.

In this chapter, I offer some tips on how to brainstorm with staff to develop creative, productive solutions.

ASK FOR HELP

As soon as you encounter a problem you cannot solve immediately, start talking about it. No single individual is as intelligent as a group. Talk to other team members and managers. If you work for a large company, talk to people in other departments. Remember, if the problem concerns everyone, then everyone should be part of the solution.

I know how salespeople hate to give up any control or show weakness. Doing whatever is necessary to solve a problem, however, gives you more control and enables you to overcome the weakness that the problem is causing. Assuming the staff you’ve assembled is as smart and talented as you think they are, don’t neglect this amazing resource you have.

DON’T GET HUNG UP ON HIERARCHY

Along with asking for help, remember to think beyond the normal lines of authority. Department heads are not the only ones with good ideas. In fact, the people further down the line, the ones who are closer to the problem, often know best how to solve difficult issues.

FOSTER A PROBLEM-SOLVING ATMOSPHERE

In my office, I try to delegate as much as possible. I try to create systems to handle volumes of work, and then I delegate to others, as much as possible, the running of these systems. I often tell people not to involve me in minor details or everyday problem solving. For one thing, I need to stay upbeat and focused on my main job—selling—and I can’t afford to get caught in a trap of negativity over minor problems. But, beyond this, I like to let other people get creative in their daily jobs. The solutions tend to be better, and the team happier, than if I’m trying to micromanage all the time.

THINK ENDS, NOT MEANS

Many of the arguments we have around the office really concern means, not ends. Everyone wants to succeed and make money. But it’s surprising how often we disagree on how. To the extent that I can, I try to hear someone’s argument in terms of the end result, not whether I happen to agree with his immediate focus. As long as he gets to where I want him to go, it really doesn’t matter which path he follows.

There are all kinds of reasons that we get caught up in unproductive problem solving. Maybe it’s ego, or fear of delegating, or a dozen other things. But if you involve others in your search for answers and get beyond those simplistic solutions that are generally ineffective or just plain wrong, you’ll be surprised at the results.

 

Ralph’s Rule: Just as you train to make presentations, you have to train yourself to think creatively to solve problems. Begin today. It’s a skill well worth acquiring.