The George S. May International Company’s Survey Analysis is an excellent way to find out:

• Break-Even Point
• Key Operating Ratios
• Cost Control Effectiveness
• Organizational Problems
• Growth Potential
• Profit Potential
• Quality Systems Status, and Much More!

Profit Analysis:

Unlike the clients’s CPA or Chartered Accountant, who works with the financial history of a business as it relate to income tax implications, our Survey Analyst works with the profit potential of the business as it relates to the future. Our Analyst can do nothing to impact the past, but his or her work can substantially improve the profit picture for the future of that client.

Our Analyst during the Survey will perform a profit analysis pointing out areas of waste and inefficiency. This study will include a calculation to a tenth of a percentage point the profit potential of the business. Areas of lost profit opportunity will be discussed with the client in a manner that the client will have a clear picture of where to improve the financial well being of the business through profit management. This profit analysis could demonstrate thousands of dollars of lost profit for the average business.

NOTE: This part of the Survey is worth the $350.00 Survey fee by itself.

Human Resource Analysis

Most business owners have no idea of the productivity levels of their employees. Add to this, the fact that most have no method to evaluate employee morale.

It is not uncommon for the business owner to believe that all of the employees are content with their jobs and are working at full capacity. Our experience with over 10,000 new Surveys a year clearly demonstrates that most businesses do not maximize their human resources. The Survey Analyst uses questionnaires together with employee interviews and the power of observation to report on the level of productivity and employee morale.

When the Analyst arrives at the client, the Analyst has never met the employees before and will no doubt, never see them again. Our Analyst is not influenced by relatives or friends of the business owner. The business owner will get an objective review of the utilization factor of the employees for the first time.

NOTE: The review of human resources is worth the $350.00 Survey fee by itself.

Jerry Rodriguez - Southern Divisional Sales Manager

Have you ever had a bad day? Ever been in a slump? Ever been rejected 10 straight times? Ever had someone say “yes” to you, then three days later call and cancel. How do you react and respond to these situations?

Do you have all the sales training you need? Do you watch TV and not plan your day? Do you start your day on time? These are all symptoms of beating yourself up. These also are the symptoms of the fact that you are not self-motivated. But let me give you a big clue .The only way you can change this is with self-motivation, self-determination, and hard work that starts before everyone else gets up and after everyone else has gone to sleep.

Take a moment right now and look at your sales bank. What kind of books do you have on sales? What kind of tapes do you have on the subject of selling? How good is your presentation according to Company standards? What kind of positive attitude, creativity and humor do you have or refer to every day? I’ll give you the answer – not enough.

We need to keep on working on all of our skills – constantly – so the symptoms of beating yourself up never show. Be your own motivator. Always strive to stay ahead and you will see success.

Donna Werner - Director of Corporate Communications

One of the hallmarks of consulting projects at GSMIC is the Client Opinion Letter.

Although we cannot directly shape what the client will write, we certainly indirectly impact everything they write. That client’s perspective on the reputation of GSMIC will be forever encapsulated in the letter for all to read. More importantly, the client has a lasting impression of our firm based on his or her short or extended experience with every person who represents George S. May International Company.

As the consulting engagement draws near an end, there is the certain expectation that we will learn what the client REALLY thinks of our firm, our work, and our people based on the contents of that famous opinion letter. Will there be criticisms or will there be praise? Did the Analyst say or do the wrong thing? Was the BDR too sharp or curt on the telephone? Was the Field Rep perceived as being pushy? Did the MS team sufficiently engage them? Did they add value daily? Will something be exposed in the client letter based on the negative conduct of only one of our colleagues? The client opinion letter tells the untold and speaks the unspoken.

For the team that was involved in the Mr. P’s Wash World Express project in Flint, Michigan, the letter is a glowing testimony of an ideal project! The following are selected quotes taken directly from the closing letter, which was written by Mr. Larry Peppler, Owner. Were you involved in any projects like this?

“My relationship with the George S. May Company started when Phillip Pharmer, a sales representative for your company, and another gentleman stopped by on a cold call…Our first meeting was very short, on that particular day my plate was full…We scheduled a meeting for a later date…We scheduled a meeting to move to the next level of the George S. May Company”.

“I met with Richard and the relationship ‘clicked.’ Mr. P’s became a client of George S. May…Richard summoned the troops and the project began. The first day your experts, and I do mean experts, descended on our car wash facility. It felt as if we were in Mission Impossible…The group of experts influenced us with their knowledge and passion for what they do best…Not only did we commit to the George S. May Company, we developed beautiful friendships with our team. This project has been a life-changing event for us…Our love and friendship for your people are true and real…Terry Bond, our project manager, created a plan for us all to survive and prosper…Thank you for being more than just a company in name.”

This is what our work is about—ecstatic clients and changed and transformed businesses! Congratulations to every GSMIC employee who was involved in this project: Phillip Pharmer (Assistant District Manager); Richard Brewster (Executive Analyst); Terence Bond (Project Director); Ken Karlstedt, Stephan Sherrick, Stephen Jaeger, and Boyd Selby (Staff Executives).

What do your client letters say about YOUR work??

Paul J. Rauseo - Managing Director

When all the money in the world, all the manpower on planet earth, and all of time in eternity seems useless in the face of client resistance-what then?

When the way ahead looks terribly dark, someone of us will pity himself, panic inside, pack up, and QUIT. But, the successful George S. May International Top Producers somehow manages to keep trusting and trying.

When the situation looks hopeless, keep hoping. When everything looks impossible, refuse to accept defeat.

Most people who succeed in the face of seemingly impossible conditions are people who simply won’t quit. In past newsletters I wrote about possibility thinkers vs. impossibility thinkers. One can see how possibility thinkers have made things happen, get the job done, turned a no into a yes, and troubles into personal victories.

As an employee of the George S. May International Company your income is only limited by your desire to get there. You must discover and dispatch the power of mountain-moving energy and desire to succeed. You can accomplish what seems at the moment to be impossibility if you will take the steps of mountain-moving success.

Self-confidence is security!

Paul J. Rauseo - Managing Director

by Larry Bossidy (Author), Ram Charan (Author), Charles Burck (Author) “LARRY: My job at Honeywell International these days is to restore the discipline of execution to a company that had lost it…”

Execution is “the missing link between aspirations and results,” and as such, making it happen is the business leader’s most important job. While failure in today’s business environment is often attributed to other causes, Bossidy and Charan argue that the biggest obstacle to success is the absence of execution. They point out that without execution, breakthrough thinking on managing change breaks down, and they emphasize the fact that execution is a discipline to learn, not merely the tactical side of business. Supporting this with stories of the “execution difference” being won (EDS) and lost (Xerox and Lucent), the authors describe the building blocks–leaders with the right behaviors, a culture that rewards execution, and a reliable system for having the right people in the right jobs–that need to be in place to manage the three core business processes of people, strategy, and operations. Both Bossidy, CEO of Honeywell International, Inc., and Charan, advisor to corporate executives and author of such books as What the CEO Wants You to Know and Boards That Work, present experience-tested insight into how the smooth linking of these three processes can differentiate one company from the rest. Developing the discipline of execution isn’t made out to be simple, nor is this book a quick, easy read. Bossidy and Charan do, however, offer good advice on a neglected topic, making Execution a smart business leader’s guide to enacting success rather than permitting demise. –S. Ketchum

Managing Director’s Suggested Reading List
Nudge, by Richard H. Thaler & Cass R. Sunstein
Flawless Consulting, by Peter Block

Donna Werner - Director of Corporate Communications

As an Applied Behavioral Sciences major, I am intrigued by human group dynamic processes.  You have probably heard of storming, forming, norming, performing, transforming…just recently I’ve found that adjourning has been added as a step.  Adjourning, i.e., leaving, is certainly the path of least resistance but is it really the best route?  This is the same question we have to confront our clients with.  Do they want to leave their incorrect, unproductive, unprofitable way of handling (or avoiding) business day to day or do they want to engage in transformation and change?  I believe that as employees of the George S. May International Company we have the same question to ask ourselves corporately and individually.

You will soon read an article in the Diamond from our Managing Director, Paul Rauseo about how each of us is a stakeholder with the George S. May International Company.   Even more, it’s not just a cliché that a chain is only as strong as its weakest link.    Nineteenth century American Philosopher and Psychologist William James is quoted as having said that “A chain is only as strong as its weakest link, and life after all is a chain.”  A couple of decades later 20th century Polish writer, poet, and satirist Jerzy Lec Stanislaw embellished even further by adding that “The weakest link in the chain is also the strongest. It can break the chain.”  What a paradoxical statement!  Do you feel your paradigm shifting?  When we add this weakest link conversation to the stakeholder conversation, we are moved to introspectively review the whole matter.

In this particular corporate life, George S. May is the chain and each of us is a link in it.  Regardless of whether you self-identify as strong or weak, what are you doing to perpetuate yourself?  Whether or not you are in an official leadership role by virtue of your job title, there is an inherent responsibility you hold as a stakeholder.  This is a question I also ask myself.

I believe it is my responsibility to perpetuate around me more of what I want.  If I want cooperation, I must cooperate; if I want enthusiasm, I must be enthusiastic; if I want productivity, I must be productive.

Are you ready for some more quotes?  Here they are:  Watch your habits, for they become your character. Develop your character; for it becomes your destiny.  Some people dream of success, while others wake up and work hard at it.  Let’s all band together and work hard at being the most productive and strong links that we can.  Don’t do it for GSMIC, do it for yourself.

Paul J. Rauseo - Managing Director

Many companies do not realize it, but they are, in effect, bankers to slow-paying customers. Not only is this unnoticed calamity causing cash flow problems for businesses, but many do not fully understand the impact this unacknowledged financing has on their companies. Compensating for slow-paying customers can dramatically affect the profitability of a business. Business owners talk themselves into allowing this for various reasons. Many do it as a favor to the customer, or perhaps they believe it will create a reciprocal bond to which they extend longer payment terms. Sadly, most owners discover their good intentions are never repaid.

Businesses also extend credit to their customers without credit checks. They believe the size of the client’s company qualifies them for credit, but a big company doesn’t always mean a secure one. At the same time, it is important to have a majority of clients with business that varies. More small accounts are usually better than few large ones. Nonetheless, with any size client, it is important to set high standards and keep them equal for everyone.

The following five steps can be taken to bring discipline to the collection process and create a formal credit procedure:

1. Establish credit reports with customers and track credit history. This is not difficult. Businesses can do it for themselves by simply awarding points to the key line items on a credit application. Point totals equate to how much credit is provided. This points system solves a number of problems. First, it sets a standard for all customers – no favorites. Second, it allows the credit function to operate independently from the business owner. Third, having been freed from the credit evaluation task, the business owner can focus on larger issues.
2. Act on infractions immediately. Review payment reports daily to evaluate any issues or trends that the reports show. If customers are behind on a payment, it is time to give them a call.
3. Follow a documented and carefully-scripted collection procedure. In our consulting with businesses, we have found that collections problems occur because the process for collecting is lax and sometimes even haphazard. Even though every business owner will state that he or she is in business to make a profit, it is amazing how many don’t realize the profit they are missing through lack of procedures and having the procedures followed. Having scripted actions and documentation also helps the business avoid problems with possible accusations that a customer was not treated equally or fairly.
4. Institute and promote a discount program for early payments. This is an excellent method of not only ensuring you get your money but also a way to reward customers with something that is meaningful – a discount. Structured properly, a discount program pays for itself.
5. Collection calls must be made by a trained collection person. The only purpose of the call is to collect what is owed to the business, therefore collections must not be made by a customer service representative. While collection calls should always be polite, it must be remembered that if a customer is slow paying, there is a reason. If a customer is in trouble, a responsible business owner may wish to offer reasonable extended terms based on the situation and credit scores.

It is our highest priority to provide relevant advice and direction to our client. The advice in this article is only a sample of the ways that we can and should educate the business owners we encounter.

Tom McCormick -  Director Value Management Solutions

If your clients simply are not emotionally ready to sell, if there is still fire in their belly — enough fire to fuel their continued investment in the company — or if they ultimately want to leave the business to family members or employees, then they may not be in a position to sell the business — yet. If they and the business are ready to sell, but still hesitating, let’s look at typical reasons for that hesitation and what you may be able to do about it as a Trusted Advisor.

The premise of this article is that owners typically don’t sell when they should because they procrastinate, or they fear the unknown and, perhaps more specifically, they fear losing the known.

Procrastination on the part of an owner is not uncommon and can arise for one of several reasons. First, some owners just don’t know where or how to start planning an exit. If your client is one of those owners, then reading the remainder of this article is a good start to helping them. The next step is to contact the Value Management Solutions Group (VMSG) to begin the process of creating an Exit Plan that allows your client to cash out of the business and leave in style when they are ready to do so. Implementing such a plan typically takes at least 12 months time; so simply planning the exit should be done sooner rather than later.

Second, some owners think that they can sell later, but as we have been discussing in previous articles, when most Boomers reach retirement age, the glut of companies in the marketplace may drive prices down. Further, the Mergers and Acquisitions cycle can have a huge affect on the sale price of a company.

In the third group of procrastinating owners are those who believe that because they have “good” businesses, the process will take care of itself. When they think about selling, they simply assume that there isn’t much for them to do. They believe that when the time is right, the right buyer will appear and pay them a great price for their company.

It does happen, albeit quite rarely, that the right buyer appears and pays a great price for a great company. However, it can be much better to prepare for the biggest financial transaction of their lives, instead of leaving the success of their business exit to the luck of the draw.

In our experience, the owners who suffer from the fear of the unknown usually hold one (or more) of the following opinions:

• I don’t think the business is worth enough to satisfy my financial needs and objectives.
• If the employees discover I’m trying to sell, they will all quit.
• Because I’m indispensable to the company, I’ll be required to work years for a new owner and I don’t like working for anyone!
• The sale process will take too long and cost too much.

On the other hand, the fear of losing the known is usually based on the following:

• The business has been my life — or at least it has given my life a great deal of meaning and focus; without it I may feel lost.
• The government will take too much in taxes — it’s easier, less risky and more lucrative to stay, enjoy the cash flow and then leave getting paid over time.
• What will I do after I sell and leave the business? I don’t know what my life will look like if I leave.

If one of these concerns resonates with your clients, now may be the time to call our office to squarely address these concerns. We will help you and your client identify which concerns may be truly “real” and which ones may be easily resolved. We can then help guide the process of reviewing all of the factors associated with exiting the business, these may include the creation of a comprehensive Exit Plan which will help remove the common roadblocks, while achieving all of the personal and business objectives your client desires and deserves.

Paul J. Rauseo - Managing Director

In looking closely at the operations of our clients’ businesses, an important question to ask is how efficient are employees? To measure efficiency, one must look at what is expected of the employee, what they accomplish in a given amount of time, what the variance is, and how to narrow the variance. A proactive way to manage employee performance is called Catalytic Coaching, which is the opposite of a reactive response to past performance, such as the traditional performance review.

Catalytic Coaching provides a structure for a working partnership between a manager and employee based on frank, open and constructive feedback and a shared desire for each individual to achieve his or her ultimate potential.

The word “catalytic” is used because it means an activity that causes a reaction between two or more people or forces. The idea of “coaching” comes from sports. Coaching focuses on the future and transfers responsibility for the development plan from management to the employee. Coaching also does not tie salary to the process. Catalytic coaching places emphasis on employee input rather than management review; the manager becomes a coach rather than a judge.

When performed properly, catalytic coaching turns the time used for the much-hated formal performance review into an activity that provides employees with value and empowerment. It helps individuals face their challenges at work and live up to their maximum potential. It can help the entire organization in its quest for growth and profitability.

• Catalytic Coaching revolutionizes performance reviews in three ways: The employee gives the manager written feedback. It is important for each employee to be able to make a case for his/her salary during review time. In this feedback, the employee lets management know what he/she has done for the company lately and where they aspire to be in the future.
• Management gives the employee written feedback. Because it is important for all criticism to be constructive, management ranks the employees’ top four strengths before listing improvements that need to be made. Additionally, suggestions are made in terms of what management can do to facilitate said improvements.
• Together, create a plan. Based on discussions between staff and management, the employee creates a development plan that is reviewed and approved by the manager. Once implemented, this strategy should help assist in a smooth transition into improved productivity and employee-management relations.

Recommend and implement a Catalytic Coaching model with clients and also use it for your own self-directed professional improvement and career development plan.