Jenkins led the class into a deep dive discussion about Re-engineering. He emphasized to the class that if their current model was not working, then they needed to take their businesses in a different direction. According to Jenkins, Re-engineering is the fundamental re-thinking and radical re-design of business processes to bring about dramatic improvement in business performance. “Re-engineers must be one part visionary, one part communicators and one part leg-breakers,” he said as he was quoting Michael Hammer, author of The Re-engineering Revolution Handbook. Jenkins emphasized that you cannot re-engineer half-way with your business if you are serious about changing. You need to prepare yourself to go all the way, or don’t re-engineer at all.
Afterwards, salon owners considered what was standing in the way of their success. Was it their own conflicting personal agendas? Lack of leadership? Poorly designed systems in their salons? A pay system that rewarded the wrong behaviors?
Some of these topics rang a bell with the salon owners in the room today. (They might with you too…) The fact of the matter is, according to Ducoff, is that if you want your overall salon system to work, you need to start practicing a system of “No-Compromise Leadership.” “In order to be a ‘No-Compromise’ leader, you need to track your retention rate, measure your retail sales, know your pre-book numbers, and as a leader you have to know these numbers in order to move forward.”
Ducoff recommended doing huddles or most of all, helping your employees reach their individual goals. “By doing this it will make your company more successful,” he says. One salon owner asked today, “How do you convince your employees to go over and beyond to reach their goals?” Ducoff responded, “Relentlessly communicate. Invest in your people. You may ask yourself, ‘Well, what if they leave?’ The real question is, ‘What if they stay?’”
The second part of the day handled financials. According to Ducoff and Jenkins, by properly figuring our your financials, you can: figure out if you have a financial cushion, see how you measure up to competition, determine if you’re spending too much (or if you are spending it effectively), and whether of not you can pay yourself more. In the session, salon owners got an inside look at what numbers Strategies’ recommends their benchmarks should be for total sales, cost of sales, gross profit and operating expenses (which includes things such as advertising, payroll, employee benefits, utilities, repairs and more).