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Reinvention: Islands of Excellence In A Sea of Mediocrity

“one cannot manage change.  One can only be ahead of it.” 

Peter Drucker

The Cornerstone Assumption of the funeral side of DeathCare is that being nice is the same as being effective.  Our “worldview” of being nice people is that we must never, ever make waves or create awkwardness.  We run pell-mell from any form of confrontation.  This is an inherently flawed “worldview” but it is, nevertheless, the one that prevails and pervades the profession of funeral directing.

There is a consequence to this worldview.  In fact, two come to mind.  First,we rarely, if ever, stand up for ourselves.

But the second and more dangerous of the two is our overwhelming tolerance of mediocrity.  Our almost pathological preference for conflict-avoidance leads to almost universal passive aggressive cultures in which:

“More energy is put into thwarting things than accomplishing things…but in the nicest way”

I am unwilling to believe that people don’t know this.

In fact, I believe that most practitioners are very much aware of it but since no one ever calls anyone to account and very, very few firms actually hold themselves and their staffs to high standards there is a mutual secret of complacency.

Whoa…Wait A Darn Minute…Alan!!!  WE HAVE HIGH STANDARDS…YOU NEED TO COME SEE OUR FUNERAL HOME!!!!

Sorry, I have seen it and, frankly, the Emperor has no clothes.

In his book “The Five Dysfunctions of a Team” Patrick Lencioni discusses “Artificial Harmony” where fear of conflict leads to behaviors that mask true issues and avoid accountability.  You are confusing Artificial Harmony with “fire-in-the-gut” passion for doing what is best for your customers. I know this because you are choosing to lay down and let your customers run over you when you know better.

But you are right.  Before I go further we do need to stop here and draw a line.  First, all human organizations are, to one extent or another, dysfunctional.  This does not mean they are bad.  Nor does it mean they are not occasionally effective.  But it almost always means they are not optimal.  Unfortunately, in DeathCare, it too often means they are mediocre even when they think they hung the moon.  In fact, there is a correlation between “moon-hanging” and secret mediocrity.   There is only one road to health and that is recognizing and accepting that there is a necessary tension between your current norms and the ideal you are hopefully working toward.  Improvement requires you embrace that tension…something most DeathCare practitioners are loathe to do.

How do I know?

There are several ways, some subjective others scientific.

  1. SUBJECTIVE OBSERVATION: I have a very close acquaintance.  She is very likely a genius.  She is also mentally ill.  Early in her career she had a byline with either Time or Newsweek (I can never remember which) and The Journal of Commerce.  This was a remarkable accomplishment for a woman in her 30’s in the 1960’s and 70’s.  She is now and has been for many years unable to work.  If I did not know her well, however, it would be almost impossible for me to detect that her take on reality was not true. I once asked a psychiatrist friend how he could possibly diagnose such a case.  He told me that it was impossible in the first visit and often for the first 3 or 4 visits.  But, ultimately, the patient can’t keep their story straight.  Cracks appear and then you begin to see the real truth.  And so it is with a human organization.  Observe long enough and the cracks appear in the veneer.  Not long ago I did a project for a very progressive and impressive firm.  This firm “had it together”.  While there I observed an incident.  I concluded it was an aberration in the culture.  Recently, I had occasion to interact with the same firm.  During that interaction I observed a different incident with a different employee resulting in the same aberrant behavior.  The cracks appear.  No one is perfect.  Artificial Harmony.
  2. SCIENTIFIC ASSESSMENT: I use an assessment tool called an Organizational Culture Inventory (OCI).  REMEMBER, I prefer to teach people to fish.  That means that I want you to be well so you can function independent of me in the future. This tool has been used for decades to assess all manner of organizations across virtually every culture in the world.  The research company that developed it (Human Synergistics) has found that cultures that produce optimal performance (Ideal Cultures) vary from country to country.  The assessment produces a visual diagram of organizational culture called a circumplex.  By comparing your company’s circumplex with the ideal you can focus in on what you need to do to improve your culture from its current norms to the ideal norms.  It gets everyone pulling in one  direction.  Very effective and fairly rapid.  Here is the ideal culture for the United States.

As a simplistic overview the Circumplex is divided into three parts: Constructive, Passive-Defensive and Aggressived Defensive.  Ideal Cultures…those that produce optimal results…are almost always constructive styles.   Here is a composite of actual funeral home norms:

Obviously quite a difference.  What I want you to notice is that the strongest parameter, which is in green (part of the passive defensive culture) is avoidance.  Here is a direct quote on that behavior at the individual level:

“The Avoidance style reflects apprehension, a strong need for self-protection, and a propensity to withdraw from threatening situations. People high in this style “play it safe” and minimize risks, shy away from group activities and conversations, and react to situations in an indecisive and non-committal way.”

Be careful here.  You may think this is not you. But this circumplex included some very highly respected firms.  Can you begin to see why I believe we have such a high tolerance for mediocrity?

3. THE NAKED TRUTH: I have a hypothesis I have been trying out lately.  So far I am hitting 100%.  I don’t like it.  You won’t either.  But if we are going to get well it needs to be said.  Here is what I think happens.  You get out of mortuary school.  You go to work at a funeral home.  Maybe your own family funeral home.  You do removals, you embalm, you oversee visitations, you drive family cars, you lead processions and then one day…out of the blue…the funeral home is real busy that day…you are minding your own business and they get one…more…call.  Someone hands you a folder, tells you the family will be here to make arrangements at 2:00 and you need to make arrangements…by yourself…unsupervised.   When I first posed that hypothesis I was not expecting the response I got.  Many of you can still name the family after 20 and 30 years.  Some remember you were told not to worry “it’s only a cremation family”.  Others remember the day of the week.  But, so far no one has suggested it was different.  THAT SEEMS TO BE THE SUM TOTAL OF YOUR ARRANGEMENTS TRAINING.  If this is true then it explains the inability of the profession to defend itself.  It explains the low self image that characterizes us.  It explains our codependency relationship with our casket companies.  It explains a lot.  Best of all it can be fixed!!! and fast.  And it gives me hope.

THE GREAT TEASE

I really try to keep these under 700 words I am almost double that on this one.  Here is what I want to tell you.  I have found the Islands of Excellence in our Sea of Mediocrity…the real answers.  Thanks to the recent research completed by the Funeral Service Foundation we now have a much better sense of what consumers are looking for.  I have found solutions for the Arrangement Conference.  I have found the mechanisms that will permanently transform you and your culture into a high performing culture.

Next week I will share a little of that with you and my plans to help those who are willing to rediscover some of that “fire-in-the-belly” passion.  Let me leave you with this:

I continue to believe we stand at the threshold of the single biggest opportunity in the history of DeathCare.  The transformation will not be painless but the pain will be tolerable.  It will require investment but that investment will not be out of the reach of even the most humble willing to make it.  Best of all many of you will rediscover your purpose.  The only real barrier will be our attitude.

Is A Scarcity Mentality Keeping You From Being A Good Leader?

A Scarcity Mentality is the zero-sum paradigm of life.

People with a Scarcity Mentality have a very difficult time sharing recognition and credit, power or profit – even with those who help in the production. They also have a a very hard time being genuinely happy for the success of other people. Yet it is a scarcity mentality that prevails in funeral service and gives rise to so much of the infighting that holds us all back.

One of the primary responsibilities of a leader is to develop people by empowering them.  But this doesn’t mean just giving people the keys to the vault and hoping for the best.  It is hard and complicated work.

Almost 40 years ago an article appeared that has since become a classic.  Entitled: “Who’s Got the Monkey?” it used a charming metaphorical style to illustrate how we often voluntarily become subordinates to our subordinates.  Characterizing problems as monkeys we learn that by assuming every problem is a joint problem we actually unwittingly cooperate in this game of transferring monkeys.

Over time, it becomes harder and harder to tell who is working for whom!

The essence of staff development is teaching people to manage their own monkeys

This makes sense and the article goes on to describe a very precise method for transferring monkeys back to their rightful owners.   Also included is an equally precise outline for the care and feeding of monkeys:

  1. Monkeys should be fed or shot
  2. The monkey population should be kept below the maximum number the manager has time to feed
  3. Monkeys should be fed by appointment only
  4. Monkeys should only be fed face-to-face or by telephone
  5. Every monkey should have an assigned next feeding time

How A Scarcity Mentality Hinders Your Ability To Manage Monkeys and Develop People

25 years after the original publication of “Who’s Got the Monkey?” Steven Covey published a followup article entitled: “Making Time For Gorillas” In which he very accurately observed that we had made little progress in the development of leadership styles beyond the “Command And Control” style that prevailed at the time of the original publication.  “Command and Control” is one of the two dominant leadership styles in funeral service.

Covey’s insight included the observation that for leaders to successfully manage monkeys they must first invest in developing their people.  “Command and Control” types are reluctant to do that.  Worse,

They are actually eager to take on their subordinate’s monkeys.

“…many managers may subconsciously fear that a subordinate taking the initiative will make them appear less strong and a little more vulnerable.” Says Covey

Covey also tells us that surveys report that executives feel half or more of their time is spent on matters that are urgent but not important.  They are trapped in an endless cycle of dealing with other people’s monkeys...reluctant to help those people take their own initiative.

If I were a “Command and Control” type here is what I would do:

  1. Download and read the original articles by clicking on the image below
  2. Let my wife and kids read it so they would have a better understanding of why I never have time for them
  3. Share it with my staff
  4. Get over myself and start making the investment in my people so that I could trust them and I could enjoy my life.
It’s your choice.
YOU CAN BE A SHOP FOREMAN OR A LEADER

 CLICK ON THE IMAGE TO READ THE ORIGINAL ARTICLE

 

Are You Really A Team…Or Just A Workgroup

competing employees racingMost people speak of those they work with as a team. But, in my experience, people rarely understand what a team really is.

In funeral service what typically represents a team is really a group of people who are very nice but work towards their own ends independently. If the firm has clear standards and systems then things tend to work smoothly. If not, then hidden beneath the surface is a collection of resentments, hurts and misunderstandings that simply fester. This is called “Artificial Harmony.”

Artificial Harmony is evident in most of the firms I have worked with over my career. In fact, the louder the claims of “we’re like family” and “we function as a team” the more confident I become that I will find that Artificial Harmony is really what is going on.

In reality most business teams, whether in funeral service or some other career area, are really work groups. Few function as true teams. Study after study reveals that true team work environments are more productive, create higher customer satisfaction and generate greater profits.

The difference between a team and a workgroup is simple. A golf team is a workgroup. A group of individuals working independently whose scores are toted up to determine where they stand. The metaphor for a team is a basketball team. Each member is INTERDEPENDENT on the others. No single person can win games as effectively or consistently. It’s not about whether or not they like each other (although I am sure many of them do). It is about a shared vision of reality, common goals and leveraging each others strengths and (most of all) have trust and confidence in your teammates.

Members of teams hold each other accountable to the team for their performance. It does no good to “bear” the underperformance of another with a smile because you “hate confrontation.” To do so means the team loses. No, instead, true team members recognize their responsibility to carry their respective weight and fulfill their responsibility to the whole.

Years ago I saw a needlepoint in a client’s office. I went home and printed it on a regular size piece of paper, framed it and now it hangs on my wall:

“A man (or woman) can do anything in a business, 

as long as the holy spirit is in control,

and no one cares who gets the credit”

Boomer Owners: 6 Signs That It’s Time To Talk

The saying goes, “It’s lonely at the top.” Who do you talk to when you’re the boss?

Edgar Schein, Professor Emeritus at the Sloan School of Management at MIT, observed that the most common self – image among business leaders is that of the “Lone Warrior – Hero.” I have found this to be true among funeral home owners and managers. There is a sense of isolation and aloneness that pervades. At conventions and seminars a sort of bravado often emerges. People seem to be under pressure to look good or capable or secure when, actually, no one is any one of those things. I found this out, personally, when I began following up on some of the program presenters and discovered that their claims were… shall we say…somewhat embellished.

As I have grown older two of the things that I think are the most profound lessons are:

Our struggles, doubts, experiences and frustrations are never unique; and I have never met a whole person. By this second observation I mean that many of us think and behave like we should be perfect. Hence the preoccupation with persona. The bare – bones truth is that everyone has issues, disappointments, blind spots, failures and so on. The various coping mechanisms we employ may differ but it is more likely that you are no better and no worse than anyone else.

People have been saying of me lately that I am very intelligent. Make no mistake, I like hearing that. But it is not true. I know a lot about what I know about just as you know a lot about what you know about. It just so happens that I know a lot about things you don’t know about just as you know a lot about things I don’t. In other words the range of human intelligence is very narrow. In fact, I believe that, if we want to, we can know more about what each other knows. We can be smarter than we think we are.

All that said, one other lesson of my life is that age does change you. Many of us have less energy, less enthusiasm for adventure. Risk becomes a bigger word. More to the point for many, many business leaders as they get closer to the end of their career is the very profound struggle of succession. So, here are 6 warning signs that indicate (very strongly) that you should find someone you trust to talk with. All of us can tolerate an incredible amount of unhealthy thinking UNTIL we hear those same thoughts roll off our tongue. Talking openly with a trusted advisor or friend can literally catapult you into a much clearer and less frustrating world.

  1. You find yourself fighting over things that don’t matter.
  2. You find yourself just getting angrier as you get older.
  3. You worry your identity is too tied up in your career.
  4. You are not sure you can trust those who will succeed you.
  5. You are unwilling to hand over what you created.
  6. Thinking about change just makes you tired

It’s All In The Attitude

My friend, Howard Beckham, responded to last week’s video on customer service at Starbucks with the following comment. I feel if all of us would adopt his attitude we would see much happier customers.  Thank you Howard.

“Many years ago as an 18 year old working at J.C. Penney Co. I began to understand the real importance of customer service. It dawned on me one day that it really wasn’t Penney’s that paid me, it was the customers I was helping who purchased items from me at Penney’s that I was “really” working for. I used to go out of my way to be helpful on the sales floor no matter what department they put me in. (I did find it a bit awkward once when a floor manager with a sense of humor assigned me to ladies intimate apparel one evening).

When I later moved to selling photocopiers form several years on commission I really learned who my “real” boss was….my customers. When they bought from me I got paid. (how simple is that to figure out?) And who made sure the customers who bought from me here taken care of properly when they had a service issue, you can bet who the customer frequently called first.

When I returned to the funeral business over a decade ago now, this time as a licensed funeral director, I remembered the lessons I had learned about customer service and endeavored (even though at times I felt like I was pushing a boulder uphill) to be an example to others of a positive attitude and selfless service. I can see the difference it has had on many people I am around. I might be making some small positive difference.

In the Scriptures we learn so many great things….especially about service to others. Three concepts ring in my ears most every day.

1. You receive no witness until after a trial of your faith.
2. Sometime you just have to press on, enduring until the end with faith.
3 When you are in the service of others, it is the same as if you are serving The Master.

We are in a service business way beyond what any other service businesses even contemplate. What we do day in and day out is actually important. We need to remember that and do it well.

Howard Beckham is a practicing funeral director in Florida. He is currently president – elect of the Independent Funeral Directors of Florida.

 

The Unspoken Affliction: FD’s and PTSD

A while ago I wrote on the subject of funeral directors and Post Traumatic Stress Disorder in the belief that there was a lot out there. This is a sensitive subject that will benefit greatly from transparent vulnerable open discussion. But who wants to be first?

Finally, a young man has stepped up. He has given me permission to print here his comment to my article and I reprint it in the hopes it will encourage others to express themselves as well.

I’ll make this short. I agree 100% with you. I’m 25 and I live in Nevada. My oldest sister has said she thinks I have some form of PTSD but I’ve tried to deny that because I feel that can only be for soldier or first responders, heroes. I used to work at a very busy funeral home and I’ve seen just about every type of death out there. Things never bothered me, until I left the business. We would alway say we had a switch we would turn off when we would arrive on a scene to turn off feelings. For a while it felt as if my switch was stuck off but now it has snapped back on and I feel it all. There are things I’ve seen I havnt told anyone. I can’t look at orange extension cord without thinking of the people I’ve picked up hanging from the ceiling with it. My fiancé says I’ve sat up in my sleep on several occasions searching for a deceased baby. Or one time she said I sat up sobbing in my sleep trying to finger print a baby that had been strangled. As an “undertaker” we aren’t supposed to show emotions. I remember recently seeing a jar of red sauce break on the floor and I was instantly brought back to a scene my partner and I went to where a young girl had been shot by her brother and my partner and I were slipping around in blood trying to gently place her in a body bag while the parents are hysterically sobbing. I guess some thing you don’t forget. At times I’ve felt disconnected from others because of the things I’ve seen. I’d look around at people happy and laughing after I had just pulled a charred body out of a house or shell of a car and just think, they have no idea what just happened. I don’t know if you’d say I have PTSD or not but I do believe it’s something that needs to be addressed. Thank you.

Read the original article by clicking here 

10 Barriers to Succession Planning Part 3 of 3

This week we finish our discussion of barriers to succession with:

4. Serving more than one master.

Change is hard enough. But there is an old biblical reference that is always true: “You cannot serve two masters.” The business needs to stand on its own and only insiders should have influence. Too often non participating siblings or spouses exert undue influence on the process. Parents or children try to compromise to please all parties and the business suffers.

We are all subject to outside pressures like family and non – business obligations. It is when those obligations interfere with the future and even the present of the business that they become inappropriate and, possibly, dangerous.

The antidote is another old saying: “To thine own self be true.” This means that you must separate your external obligations and make choices and decisions and commitments for the business based on merit not on the wishes of a non participating party. Each participating individual must take personal responsibility for personally being a positive contributor and also for how they may be contributing to the problem. Each must be fully accountable for the RESULTS.

3. Control

Some time ago a friend of mine’s wife had a terminal disease. This usually laid back man proceeded to become increasingly difficult and controlling. Fights and tantrums occurred over seemingly meaningless things. None of us could understand what was happening to him until a psychiatrist friend of mine shared that a common human response to a life seemingly out of control is to control anything we can… no matter how trivial.

As independent owners we are used to a form of absolute control. For better than two decades our profession has been going through increasingly rapid and complex change. Any observer familiar with the statistics would conclude that we have done a poor job of adapting. Ultimately some of us, especially as we age, become more and more rigid in our beliefs and needs.  I have given up pushing people to change. Rather, I am actively working with people to develop a new dream. Sometimes that dream is what I call “Safe Harbor” which is my euphemism for finding someone else to buy the business. In other instances that dream is a revised strategy, focus and mission. Either way, the key is to take one’s mind off your circumstances by looking beyond the circumstances.

2. Lack of forgiveness

Things happen and when they do others sometimes take offense. Sometimes the offense is legitimate others not so much. Some people have a very difficult time letting go and forgiving. As long as unforgiveness prevails the company is operating as if something were fouling up the gears. Occasionally, the whole business is sidetracked. Until it can be resolved either by one buying the other out or selling the whole thing or truly forgiving one another, time will continue to erode the business. It’s helpful to remember that:

Unforgiveness is the poison we take hoping someone else will die!

1. Lack of appreciation and recognition

I have another friend who is a self made multi millionaire and serial entrepreneur. Over his life time he has held high public office, bought and sold many successful businesses for a premium and best of all has many close friends. What drives him, though is that his father has never told him he was proud of him. I knew his father and I knew he was proud of my friend. But he had never openly acknowledged it. It remained an issue until 2 years before the father died. My friend made many good decisions and accumulated much wealth but he would have given it all for his father’s acknowledgement. Have you, as a parent or sibling told those other family members how much you appreciate them and respect them. Try it, it’s addictive.

Likewise something few people recognize is the need for that generation aging out and transitioning to a lesser role or no role at all is the need to be acknowledged and respected for their contribution. I am in that generation and I witness it regularly. It is expressed simultaneously as a fear of the future without their identification as the business leader and a sadness that their children and staff don’t recognize what they have been through and sacrificed to bring the business to its current level.

I facilitate a leadership exercise to overcome this problem and it’s always interesting how surprised team members are to find that they are appreciated.

These 10 barriers to succession are prevalent throughout organizations. They are mostly a result of poor communication and equally poor leadership models. Both can be fixed.

10 Barriers to Succession Planning Part 2 of 3

Last week we began a discussion of the ten things that are the most frequent barriers to real succession planning. Failure to plan this important event is an invitation to disappointment frustration and alienation among family and staff. This week continues that discussion with #7.

7. Entitlement

Often referred to as the “lucky sperm club” the next generation often sees advancement and eventual ownership as a “right-by-birth” as opposed to an opportunity based on merit.  At a minimum, this creates low morale among regular staff members and, maybe, siblings. At its worst, it leads to disastrous events that can either break up the family or ruin the business. A business needs leadership and it is the duty of the current generation to ensure successors are capable of carrying on the business into the future.

But their is an other side to entitlement and that is when the senior generation views themselves as entitled to continue in a leadership role long after that role should have been assumed by the younger generation. I am amused to see my cohort group of Boomer owners so resistant to passing the baton to their children. Amused because I so clearly remember their vows 30 years ago not to repeat their parent’s behavior. We cannot let our personality be so inextricably connected to our business that we cannot let go when we it is time.

6. Scarcity

There is an abiding assumption among the funeral profession that there is not enough business. Of course in some markets (especially in the NorthEast) that is true. But this natural predisposition becomes truly problematic within the family busyness as parents, children and siblings worry that there isn’t enough business to support them all.  It eventually becomes the Elephant – In – The – Room.

I use a tool developed by the Center for Creative Leadership called Visual Explorer to unemotionally surface these issues so families and staff can talk about them. It is especially helpful in creating an environment where people feel safe talking about what they expect of each other. Once people face the unspoken issues they can move toward solving them collaboratively

5. History

Past experiences, conflicts, assumptions and events shape our ability to work with each other.  People have the ability to forgive. Apparently they find it harder to forget. “oh, you have always been this way!” is a statement I hear too frequently. “What way?” “Always?” Often this is an aggressive attempt to shortstop a conversation that would be healthy but risky to the parties. Here again, Visual Explorer is an excellent tool for discussion and exploration.

10 Barriers To Succession Planning In the Funeral Business — Part 1 of 3

Speaker and family business expert John Davis made this comment as he addressed the St. Thomas Center For Family Enterprise:

“When I introduce the concept of making the B.O.S.S. successful all heads turn towards the father. I announce to the father he has just been demoted, and that the real boss around here is four constituencies that make up the acronym. The B stands for Business and what the Business needs to be successful. The O stands for the Other. The first S is ‘what do I want for my Self?’ The final S stands for the Stakeholders, which generally includes the family, employees, customers and vendors.”

Mr. Davis outlines 10 barriers to succession planning which I have modified to represent the more common among funeral homes and cemeteries.

#10 Unwillingness to express themselves and be vulnerable

A result of poor and ineffective communication, an unwillingness to be vulnerable and be open, even if it subjects one to criticism. is a key cause of misunderstandings and resentment. Often this ineffectiveness has been so frustrating that people give up and aren’t willing to be open any more. A major stumbling block.

“That is exactly what happens in a family business,” says Davis. “Family members have expectations of each other about what they want in an emotional sense. They are reluctant to express it and no one offers it, so they think they aren’t worthy.”

#9 Artificial Harmony

Avoidance of conflict often afflicts family businesses. This trait is especially strong in the funeral profession where the culture discourages conflict. Differences, conflict and disagreement are often interpreted as: “you don’t love me” or “you don’t care”. Disagreement is most often misinterpreted as personal. Rather than use the naturally available differences in perspective to make them stronger, They maintain either a facade of harmony or open resentment.

#8 Choosing sides

Too often communication is done indirectly. In other words through someone else. Because of the risk of losing control or reluctance to see another person’s side family members draw in other family members and staff to represent their feelings or opinions.

 

Signs Your Preneed Program is Underperforming

With almost 30 year’s experience I think I can safely say I know something about Preneed selling and marketing.  Sadly, it has been my experience that most independent funeral homes practice a form of benign mediocrity in which everyone fails to reach their potential but they all love working together.  “Happy Failures” is what we used to call them. Being an employee  who isn’t working out or your brother-in-law who can’t find a job isn’t an appropriate criteria for success in selling. Here are some of my favorite parameters:

1. How many contracts would a salesman sell if a salesman would sell contracts?

Assuming the firm serves more than 200 families per year, the average salesperson is capable of producing between 125 and 150 contracts. Of these, 20% is the minimum expectation for self generated business (non – walk – in / call- in). At Trust 100 our counselors were trained to achieve this minimum through direct mail, family followup and other lead generating devices. We had a few counselors who routinely produced 200 + contracts a year.  These people did not work long hours.  Rather, they followed the training to the letter and worked smart.  If your firm serves less than 200 families see below.

2. Ratio of contracts to At – Need Call Volume

Flags are frequently waved about a selling a ratio of  one contract for each family served. It has been my experience that few independent funeral homes are emotionally prepared for this level of activity. It requires a very high level of marketing activity, call backs and assertive (as opposed to aggressive) salespeople. A 1:1 program inevitably leads to customer complaints and At – Need staff dissatisfaction. Few owners are comfortable with this although it is easily addressed. One of our clients kept a complaint file on his desk and told us if we weren’t getting complaints we weren’t working hard enough. (we grew his business 20%). In my experience 50 – 60% of at – need volume is about the tolerance level for most owners. Complaints are rare and staff are happier. A ratio of 40% or less is unacceptable because it means you are not capturing your walk – in / call – in. I learned this personally while President of a large SouthEastern funeral home. Typically funeral homes generate an actual contract level of about 20% out of the spontaneous walk – in. What they miss is that there is an equal amount of walk – in that gets turned away because staff is busy or simply doesn’t see it as “their job”. So I have always maintained that spontaneous preneed is about 40% of At – Need Call Volume.

Caveats:

If you are serving between 100 and 150 families you SHOULD be getting 1:1 since counselors are capable of producing that many contracts annually. In these instances counselors may work a little harder but there are usually few complaints.

If you have a counselor producing 200 contracts a year and is the only counselor in an 800 call funeral home DO NOT BE IMPRESSED. It simply means that the preneed program is understaffed. Remember an 800 call funeral home should be producing 320 contracts in walk – in alone. These folks often win awards with their impressive dollar volume but, in reality, they just wait for the phone to ring. (bet I get some venomous emails on that one)

3. What Are They Selling?

First, I do not compare contracts with at need revenue without first removing cash advances and sales tax. Leaving these in will obscure what is really happening. I compare only the actual at need funeral home revenue without cash advances to the same factors in preneed. We found that there are only two reasons that preneed sales are LESS than at need sales: 1. The counselor needs more training in the field (not classroom). This can be fixed. 2. The counselor does not believe in funerals. This cannot be fixed. They must be released.

 4. Counselor Turnover:

Often times in larger funeral homes it is difficult to size a sales force because the early hires find it easy going as one fish in a big pond. They frequently make life miserable for later hires forcing them to leave. If you have lots of counselor turnover look into this phenomenon first. Always do exit interviews. If this is not your problem then take a close look at training, compensation, lead generating and recognition.

5. Sales Mix

Most programs I analyze for my consulting clients put me in a dicey situation. It’s pretty easy to identify an underperforming sales program just by its sales mix. A healthy program should have an average age below 72 and preferably below 70. I think many of our programs were in the high 60’s. Single pay policies should be no more than 50% of the mix and preferably less. As said before the average sale dollar for dollar should be AT LEAST your at need average. It is not unusual for me to see programs with an average age of 78 or higher and single pay 85% or higher. Can you say: “Waiting for the phone to ring?” This sales mix tells me you are doing nothing to impact your future…but you feel good about it.

5. Compensation:

A word is in order about compensation. I have found the most successful compensation plans must first be simple. If they are complicated your staff will never trust you. Second, I believe that people should be paid the same way and in the same proportion that the company is paid (including chargebacks). We had a very successful plan for commissions and bonuses. We paid a proportionate amount of the commission schedule we received from the underwriter. In this way those who sold better quality business (lower ages, more multipay) were paid more. We then paid a monthly bonus based on production. Under $50,000 no bonus, $50,001 to $75,000 minimum bonus, $75,001 to $100,000 medium bonus and more than $100,000 for the month maximum bonus. Note: these are gross sales. The bonus itself was paid based on commissions net of commission chargebacks. This system paid everyone from underperformers to our top people fairly. Our lowest people averaged about 5% of net face sales and our highest performers averaged between 8% and 10%. That meant that compensation ranged from a low of $35,000 annually to well over 6 figures. The best part: everyone liked it. No complaints and no suspicion. You could figure out what you made yourself very easily and compare it with your check.

 

 

Empathy / Sympathy A Very Important Difference

Unlike most other professions funeral practitioners must operate within an often sensitive emotional environment. Let’s call it emotionally charged. We know too well that sympathy can often backfire but empathy is never lost. Sympathy can often take someone lower but empathy often lifts up. God was angry with Job’s friends but I have always been impressed that they came and they sat with him for a week before the temptation to sympathize overcame their empathy.

This brief video from RSA animation gives us clarity about the difference. Play it for your staff, play it at group gatherings. As our profession struggles with finding a new and relevant identity in a rapidly changing world I wonder if empathy isn’t one of the gifts that sets us apart.