August 20, 2008
Over the last several years, I've had the opportunity to spend a good bit of time with Thom Crosby, president and CEO of Pal's Sudden Service, a small quick-service chain with locations in Tennessee and Virginia. Pal's won the Malcolm Baldrige National Quality Award -- the only restaurant ever to do so.
Having observed Pal's in-house operations, I immediately understood how they secured such a prestigious award. Visit a Pal's and you’ll know what I mean. Here are a few key points all business leaders can learn from Pal's:
Focus on Effectiveness, Not Efficiency. Pal's has some of the fastest drive-thru times in the industry. It stems from their intense focus on being effective in everything they do. Effectiveness is focusing on doing the right job in the best interest of the customer. Efficiency focuses on doing a job properly and swiftly -- but is it the right job? For example, should I bus the table or greet the guest entering? Efficient people would bus the table, then move on to the next task at hand as quickly as possible. Effective people will greet the guest as they bus the table. Efficiency doesn’t necessarily lead to greatness or high quality.
Leaders on the Front-Line Leading by Example. When an employee is good with a customer, they should use those skills. In other words, why take a person who is great with the customer and promote them so they are further away from customer contact? To ensure this doesn't happen, Pal's has no unit supervision, other than the founder and the CEO, above General Manager. While most companies have layers of district and regional supervisors, Pal's has chosen to keep those with the most talent (General Managers) close to the customer. "Hire superstars and you don't have to babysit them," says Crosby.
Out-Train the Competition. Employees take tests every week of employment while at Pal’s. Once they have mastered the test -- gotten a perfect score -- they must get a perfect score on the next try, but in less time. After all, we are in the quick-service business. Additionally, each employee must demonstrate the appropriate skill to their General Manager, not just pass a test.
Manage by "Storying" Around. Share positive guest comments about service, employees, and so on through every employee level at every unit. Spread best practice ideas, cost-saving ideas, sales-building ideas, and stories of employees who have gone above and beyond the call of duty. Reward and recognize them and you'll help spread the right vibe.
Take a good look at your restaurant operations. How can you enhance the existing environment and culture? Once you have tackled that issue, then focus on hiring, training, and marketing. Too many companies focus on hiring first and forget about the atmosphere. The last thing you want to do is bring a great hire into a lousy culture. It's just a matter of time before the great hire leaves or becomes lazy.
Focus on effectiveness, lead by example, out-train, and tell stories of greatness -- that’s what really matters!
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