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Tag: funeral home consulting

What Proof Do You Require?

We live in a litigious society. More and more practitioners are ending up in lawsuits.  Often it isn’t really their fault. Lawyers will tell you to make sure you always CYA!

Richard Callahan, former funeral home owner and funeral director has spent the last 20 years of his career as an Expert Witness in a variety of legal actions. At a recent meeting he offered the following:

How often do we ask for proof that the person making arrangements is the person who has the legal right to make arrangements on behalf of the deceased?

Among the group attending, many required no proof, some took photo copies of government identification for their files. Richard felt this was not enough and provided the group with this simple affirmation. With his permission I offer it here.

“I_____________do hereby represent to XYZ Funeral Home,(cemetery or crematory) that I am the person who has the primary right of disposition of the remains of________________, deceased. I so represent, in the knowledge that XYZ Funeral Home,(cemetery or crematory) will rely on my representation , in good faith.

Signed________________

Date_________________

Neither Richard nor I are lawyers and you are strongly encouraged to Vette this with your attorney. But it makes sense, in these times, to document everything.

Richard Callahan is funeral director / embalmer Board Certified in all 50 states. He began his career in 1973 and has bought and sold several funeral homes in New Jersey, Pennsylvania and California. He has served as Past President of the Los Angeles County Funeral Directors Association and a former board member of the California Funeral Directors Association.

For more than 20 years he has been called on to testify as an Expert Witness in numerous lawsuits.

Too Busy To Succeed

tractionMost of us know that success requires that we spend, at least, some time working “on” our business instead of “in” our business. Yet, in practice, we find this piece of essential wisdom to be nothing more than a tired cliche’.

Having spent the bulk of my career studying funeral practitioners and all of my life studying myself, I think I know why. Spending time working “on” our business is less familiar than working “in” our business. In other words, we know how to work in our business better than we know how to work on our business. It’s easier to fall back into life long patterns. Quite frankly, being too busy provides a false sense of security and even progress. So, we fool ourselves into thinking we are making progress. But that uneasy feeling in our gut tells us differently.

I have found, at least for myself, that there are three ways to break this pattern and begin doing the increasingly necessary work of the business itself.

Commit to NOT being THERE: This means that you schedule a time in advance to being offsite with no phones or text or email. Actually, you can have all of those but your staff is under strict orders not to call you unless the building is on fire. Sometimes, I just go to the library or some other quiet place.

Don’t make it up: Working on your business means planning and planning means structure. Most of us don’t really know where to start working on our business. We tend to gravitate toward the things that worry us or irritate us. I truly believe that the reason we don’t work “on” our businesses is because we don’t know how and we have no model to emulate. I read a lot and, frankly, have been disappointed in most of the literature on this subject. Recently, however, I encountered a book that is the most practical blueprint for working on your business. It covers all of the critical elements but it goes beyond ideas by providing very strong processes and systems for moving your company forward. Get “Traction” by Gino Wickman

Don’t do it alone: The one thing I anticipate Funeral Directors resisting in Wickman’s book “Traction” is that he is all about accountability. And for those who need to work “on” their business accountability is the single most important element. That’s why I say “Too Busy To Succeed”. It is so easy to be pulled back into the whirlwind of the funeral business. Wickman’s system makes everyone accountable to everyone else. But I believe the leader needs to be accountable to peers. That means assembling a group of people who care enough to be tough with you and hold you accountable to focus and deadlines.

Short Term Study Group

If you feel it’s time you break the cycle of start and stop ideas, non – cooperative staff, endless unfinished projects and always feeling you might be behind the curve, I am organizing a SHORT-TERM study group to help my clients break through and gain the advantage of focused, disciplined strategies that hold people accountable.

I am a big fan of study groups. But, all too often, they degenerate into “clubs”. People forget what you committed to last time and there is no real accountability.

This study group will be short – term (3 – 5 years) because it will be focused on achieving the goals each member identifies. We will, as a group, implement the “Traction” processes and systems. We will meet electronically once a month to update each other, discuss issues and hold each other accountable. If you fall back into the “working in your business” pattern we will lift you up. If you stay there I will politely ask you to withdraw.

The reason it is short – term is that it is goal – specific. Once goals are realized it is time to disband. That does not mean that the group or individuals in the group can’t repurpose and establish new goals. But, if I am involved, it will not become a club.

If you really want to break out and think this might be a good pattern for you contact me at

alan@alancreedy.org

 

A Comment That Changed My Life

chasing rainbowsMany years ago I fell prey to a “woe-is-me” episode. A friend made an offhand comment that changed my life direction and I want to share it with you.

But, first, let me say that his comment really offended me. That’s a true friend…someone who tells you what you NEED to hear regardless of how it makes you feel. Anyway, I was literally furious for several weeks.

But I couldn’t shed the comment and slowly realized its truth and that caused me to grow, take courage and DO SOMETHING about the situation. His comment:

“YOU ARE WHERE YOU ARE BECAUSE THAT’S WHERE YOU WANT TO BE”

Oh, it was so much easier to believe I was the victim. But being a victim allows you to avoid blame and put the responsibility somewhere else. And you can only truly change your circumstances when you take responsibility for your circumstances.

I realized I was angry because his comment meant I was responsible. My poor choices and judgment had resulted in the problem. How I responded to the path of options that had led to my circumstances was my responsibility alone.

I realized that I was addicted to avoiding rejection, conflict and blame… both just and unjust. That avoidance behavior caused me to “go along” with others just to “get along”. I realized that my need for acceptance and approval was driving me to continually “chase other people’s rainbows.”

Taking responsibility meant taking risks, potential disapproval, and accepting blame. But chasing one’s own rainbow means you get where YOU need to be. It means operating on the assumption that you deserve better.

The outcome? I think at this later stage of life I can look back and say that I have earned greater respect, more solid friendships, greater stability and confidence. No, I haven’t achieved all that I had hoped but I am sure further along than I was. So, now when I feel the “woe-is-me’s” coming on I ask my self two questions: “Why do I want to be here?” and “What choices did I make that got me here?”

Whose Rainbow are you chasing?

5 Ways Funeral Directors Sabotage Progress

spyThe prevailing culture in funeral service is Passive Aggressive. I have talked about the “ten call man” before and how that person subversively undermines a business. But, unwittingly, owners and staff can undermine themselves.  Here are 5 ways you can commit “self-sabotage.”

  1. Never permit short cuts. It’s necessary to establish procedures and rules to avoid mistakes. But too many rules and supervision that is too tight can prevent employees from using personal judgment in situations that demand it. You need to emphasize rules but always describe and encourage achieving the desired outcome of those procedures or rules. For instance: “We always answer the phone before the third ring…BECAUSE we want the public to feel we are organized, competent and ready to care for their needs.”
  2. Make committees as large as possible. Many people feel they have to be as inclusive as possible.  But, the bigger the committee the more complicated the decision making. Worse yet, many funeral directors are predisposed to making decisions by consensus and that rarely works. Keep committees as lean as possible.  Again describe the outcome you want. I once created a committee to work on the licensee scheduling. I charged them as follows: We want a schedule that respects the need of people to be able to spend time with their family, serve those we serve with continuity, operates within our economic constraints and gives everyone at least one day off every 7 days…With clear guidelines it took a while and even some experimentation but they got it done.
  3. Allowing people to continually reopen and second – guess decisions already made. I am not an authoritarian but I learned as a parent that I had to determine which decisions I was willing to stand behind which didn’t matter. Kids pick it up fast and don’t argue much when they sense determination. When I ran Trust 100 I tried never to change things for our sales people. But when I did I needed to be resolute. Once I realized that after an 18 day grieving period people pretty much got over it I knew that part of my responsibility was to be clear and decisive.
  4. Overly advocating caution. Saboteurs seem to have an overly developed sense of what could go wrong. I once pulled in a few favors to help a client redesign a sign in order to attract more attention on a busy boulevard. The facility was located about 1/2 a block in from a busy stop light. The design was so successful that when I presented it one of the employees gasped that, “If we put that up someone is going to have an accident.” In spite of the open admission that the sign would have accomplished its purpose the concept was torpedoed in favor of caution.
  5. Sending updates too frequently. This may not be obvious but let’s remember that most people in this world are not good at handling abstracts. Furthermore, most people don’t like change. Premature updates can be distracting, give people too much opportunity to trash an immature plan and can discourage the planners by inappropriate feedback.

The solution:

  • Define the result you want
  • Keep task groups small
  • Give them clear direction in terms of outcome
  • Limit premature feedback
  • Once a decision is made DO NOT waiver unless YOU see that there might have been a mistake.  You will learn what I learned. Give people an 18 day grieving period and they will move on.

 

Knowing Too Much Causes You To Underserve Families

tapping fingersSome years ago a study was conducted. A group of people were divided into “tappers” and “listeners”. The tappers were asked to pick a popular tune and tap it out and the listeners were asked to identify it. The study found that the “tappers” predicted that the listeners got it right at least 50% of the time. Actually the listeners only guessed the tune 3 times during the whole study. The researchers concluded that the reason for the disconnect was that the tappers could “hear” the tune in their head and therefore misled themselves in thinking they had fully communicated with the listeners…when, in reality, they hadn’t.

So what does this have to do with funeral service?

I think the biggest lesson for me is that, as an expert, we know what we know so well that we convince ourselves that others who don’t know what we know will fill in any blanks.

The reality is that they don’t know what you know. They don’t know the options, why’s or wherfore’s of any of it. This explains to me why so many families are so grateful and so easily trust those funeral directors who will take the chance of making sure they understand the options as well as the potential consequences of any decisions they make.

Ultimately, I have always believed we have a moral obligation to explain all the options to ALL the people ALL the time. Those that do so consistently report greater family confidence, greater job satisfaction, and, of course, better revenue. But the best part is the significant improvement in relationships with their customers.

The Lesson:

Stand up for what you believe and tell it like it is.

Merchandising Rental Caskets

I like the approach demonstrated in the attached picture.

My friend, David Storke, shows this wicker green burial casket on top of his rental. He tells me that he no longer has any trouble explaining “combustible” caskets to his families, the wicker casket is a great conversation piece (he has sold 2 for “green” burial) and it helps sell the rental casket below it. Note the wicker casket is $1,375 and the rental goes for $1,175.

wicker and rental casket

While we are on the topic: I know that not everyone agrees with rental caskets but if you are going to offer it why not offer 3 at different price points (good, better, best).

Part 3: The Owner Is Ready

Maybe you are anxious to exit your business. Or perhaps you dread the day you will no longer be involved. Either way for a successful business transfer you need to be ready.

It has been my experience that when people think they are ready and even eager to exit the business they have only given thought to what they are “getting out of ” and little if no thought to what they are “getting in to.”

It is one thing to be sick and tired of the daily demands of funeral service and the accompanying stresses. It is a much different thing to step into a new life and realize that you no longer can enjoy the perks of your former business. Not too long ago I had a client just like this. Since the sale he has tried a variety of ventures but found none as lucrative or satisfying as funeral service…in spite of its challenges.

Or, perhaps, you don’t want to leave. You love what you do and can’t see anything else as satisfying. I see nothing wrong with planning to remain active as long as your health permits. But therein lies the catch…“as long as your health permits.” I have another client, now in his 80’s, whose health has declined precipitously. So much so that he has been unable to work for more than two years. He and his family are entirely dependent on the good will of his employees and particularly their key man.

So, while I don’t see anything wrong for you to plan on remaining active for your lifetime, I believe it is morally wrong for you to leave your family and employees AND customers to clean up the mess you leave because you were too stubborn to adopt a continuity plan or even maintain a disability insurance policy.

So whether you are anxious to leave, or plan on “dying in the saddle” you owe it to yourself to think about and plan for life after the sale. To get yourself and your family ready for that 100% chance of eventual transition.

Begin with answering some of these questions:

  • When I am no longer THE funeral director is it important that I still be needed in some capacity?
  • If I am no longer involved what will I do to replace my need for purpose?
  • How will I occupy my time in meaningful ways?
  • If I died or became incapacitated while still working do I have written instructions on who to contact and what to do?

A final thought:

Some years ago two of my clients (independent of each other) appointed me as executor in their will. Their reason was they felt I would “take care of their family.” I was honored. The problem was they didn’t tell me until some time later. So, had they died, it would have been a surprise for which I might have been unprepared. Maybe I would be willing to perform that function but am probably too old now. HOWEVER, I have often reflected on their thinking and believe their thinking was sound. It would be a great idea (especially if you are in a study group) to ask a couple of non competing colleagues to act on your behalf of your family during a transition. BUT, you should not ask someone who might be interested in buying your firm as it would be a conflict of interest.

 

Part 2: The Business Is Ready

I have lived in my house for 30+ years and we are getting ready to sell and move closer to my daughter and her family. I have two goals:

  1. Sell for top dollar
  2. Sell quickly

So we are getting it ready by repainting it and updating a few odds and ends. Not more than we can recover but enough to meet my goals.

So it is with a business. It is a serious mistake to try and sell a business without doing some preparation first.

There are 3 value drivers that make up the value of a business:

  1. The quality and size of the earnings
  2. The quality of the staff
  3. The quality of the physical assets

Quality and size of earnings

By quality we mean consistency year over year of revenue and expenses. Ideally, your volume and average sale are both growing. Your cost of sales is remaining proportionate (15% to 17% of net sales for most firms). Your overhead is going up at a pace less than your average sale and your EBITDA is going up. Your as close to debt free as you can manage.

Last, but by no means least, your tax structure is such that it minimizes taxes. If you are a “C” corporation you should get your accountant to switch to a pass through entity like subchapter “S” or LLC. The rules on Subchapter “S” phase in were just reduced to 5 years. Your real estate should be owned personally or in an LLC.

In my experience if your business does not meet most of these expectations I usually recommend we delay putting it on the market until we can show at least a year of improvement. Most often we can make significant performance improvements quickly.

Quality of Staff

No matter whether you are big or small this is an important factor. If your business is solely dependent on your personal involvement on a day to day business it will have a negative impact on your business; especially in smaller communities.

Your staff should be trained, if not well trained. They should know what to do in your absence and be able to handle most contingencies without calling you. More important, your customer base should be linked to the business…not to you.

If your plan is to sell to a third party that will not personally come live in the community then you should have at least one staff member prepared to take over your role within a short time of the sale.

This is not to say that you won’t be needed afterwards but prepare yourself emotionally to decrease in importance within a reasonable period following the sale.

If you have important and key staff who might be tempted to leave if you are no longer involved you should seriously consider non competes and, possibly, implementing a “stay” bonus option to encourage them to stay long enough for an orderly transition.

The Quality of Physical Assets

Buyers prefer not to buy properties that will soon require significant capital investments. A coat of paint, even a new roof will help get the business sold.

No, you don’t have to (and please don’t) go out and buy a new fleet. But your vehicles should be well maintained.

You should also make sure that your properties are clean and look cared for. You won’t always know when a buyer is inspecting so make an effort to keep everything looking good.

 

Universal Requirements For Successful Family Transition

There are 3 Universal requirements for a successful family business transfer:

  1. A competent successor
  2. The Business is ready
  3. The owner is ready

Part 1 – A Competent Successor

A successor is competent when they have demonstrated both the ability and willingness to run the business.

For most small businesses however this is a major challenge. Yes some successors (children or employees) really aren’t willing or are unable to rise to the challenge of ownership. But a more common reason is that the current owners have failed to do three things:

  1. Clearly articulate the performance expectations they need to see.
  2. Provide both internal and external experiences to develop skills and abilities while providing a well – rounded world view
  3. and biggest of all, implement a phased exit process that will ultimately make themselves unnecessary while stretching the successor’s own commitment

Performance Expectations:

I frequently get requests to help develop successors (both employees and children) for taking on ownership as the current owners begin to look forward to retirement. Sometimes friction has developed because the successor(s) are too anxious to take over and want to change things too rapidly or too aggressively for the current owner’s comfort level. Their attitude is I am ready now why doesn’t he / she just get out of the way. More often, the successor is stuck because they can’t quite figure out what is expected of them or they can’t get a chance to really assume a specific role.

Most current owners want the successor to demonstrate that they can be a great #2 before they are willing to think about giving up some of the ownership responsibilities. Worse some owners  have forgotten the struggles of their own learning curve and think the successor should somehow just “know” what to do. Other owners remember that learning curve too well and think that they have to impose the same thing on the successor(s) even though their learning curve may now be irrelevant in today’s business environment.

I always start these projects by having the owner tell me as clearly as possible what a successful #2 would look and act like. If they need to see them voluntarily working 60 hours a week or taking night calls so be it…but say it. As you might expect very few have thought about what they want to see…they just expect to see it.

As an added service I offer this link to a successor readiness assessment. I wish I had developed it but it comes from none other than the world renowned management guru: Peter Drucker.

Internal and external experiences: 

If you don’t provide opportunities to grow and develop both internally and from outside sources then you are only going to get what you already have: “Successor Interrupted.” My favorite mechanism is having your kids work somewhere else for a period. This does a couple of things:

  1. Exposes them to alternative thinking and methods, both good and bad
  2. Allows them to demonstrate to themselves they can succeed without being the “heir apparent.”
  3. Helps them develop a perspective relative to both what it’s like to be an employee and the unique environment of your own business.

Another alternative, of course, is to send them to conventions as long as you make sure they understand the “10 percent” rule: 10% of whatever you hear is blatant exaggeration.

I structure my “Blue Ocean Tours” specifically to provide these experiences via workshop immersions.

Make Yourself Unnecessary:

This may be the most emotionally taxing for most funeral directors. But if you aren’t willing to delegate increasing responsibility to your staff / kids then you are not ready to exit no matter how tired you are.

There is a great litmus test for this. You might want to sit down before you read it and have the smelling salts ready: Leave for 30 days AND DON’T CALL IN. If you get back and the business hasn’t really missed you it’s time.

Next week: Part 2 Getting Your Business Ready

Should Women Wear Pant Suits?

style-9091-slim-fit-notch-lapel-one-button-angled-flap-pocket-mid-hip-length-womens-pant-suit-for-work-with-plain-front-wide-leg-pantsI seem to have a penchant for joining fights that aren’t mine. Not long ago I was presenting a seminar on dress and decorum to funeral directors at a large state convention. Several women asked for my opinion on wearing pants. Frankly, I hadn’t thought about it so I didn’t have one.

Since then, I have been doing an informal survey. It seems that many funeral homes require a dress or skirt be worn by females at all times.

I have learned that a dress or skirt can often be awkward at the most inopportune moments. While I can not report based on experience, I am told that certain physical activities necessary to the profession (i.e. removing bodies, lowering caskets at the cemetery and so on) cause a skirt or dress to “ride up” resulting in exposure or forcing the hapless female to simultaneously adjust her clothing while attempting to help their colleague.

Since I have been asked for my opinion I offer it here. If I owned a funeral home I would allow my female staff to wear Professional style pant suits. I would also encourage them to wear skirts or dresses at visitations and receptions where the risk of embarrassment would be less.

And while I am at it my wife says I should also remind women that not all women look good sans pantyhose. (Again, I wouldn’t know this personally)