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Best-selling author, businessman and Senator Feargal Quinn firmly believes every business has the potential to survive and even thrive during a recession. In Mind Your Own Business, he uses real-life examples from the first two series of RTÉ television's hit programme, Feargal Quinn's Retail Therapy, as well as valuable experiences gained in his fifty-year career in business, to explain exactly how to do it. From the importance of setting the right tone in your business, to placing innovation at the heart of everything you do, responding to your customers' needs and planning for succession in a family-run business, he challenges many of the bad habits that can build up in businesses over the years. Throughout the book, he also provides a range of simple, easy-to-implement steps that owners and managers can take to chart their way out of trouble and achieve success even in challenging times.
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Also by Feargal Quinn
CROWNING THE CUSTOMER
How to Become Customer-Driven
Praise for this international business best-seller:
‘Customer service is simple, focused and about engaging your people first. Feargal’s book shows you how to do this.’Allen Leighton, Chairman, Royal Mail
‘No theory is advanced without practical, entirely convincing, examples. And not a single instance of management-speak. The very best businessmen will be the first to welcome this splendid book.’Sir Martin Sorrell, CEO, WPP
‘Many say the customer is king or queen, but seldom mean it. For Feargal it is the truth. He cares about everyone associated with his operations and above all he cares about each customer. His secrets are all in this book. We should be grateful he has shared them with us.’Donald R.Keough, President and Chief Operations Officer, The Coca-Cola Company (USA)
‘It’s a jewel.’Ralph S. Larsen, Chairman and CEO, Johnson & Johnson
Every morning in Africa, a gazelle wakes up. It knows it must run faster than the fastest lion or it will be killed.
Every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve to death.
It doesn’t matter whether you are a lion or a gazelle: when the sun comes up, you’d better be running.
(African proverb)
Title Page
Epigraph
Preface
1 Set the toneLearn to lead by example
2 Dare to be differentBeing extraordinary means being willing to break from the ‘done thing’
3 Ah, go on, humour meWhy having fun makes good business sense
4 Recession as opportunityAvoiding ‘Can’t See the Woods for the Trees’ Syndrome
5 Sometimes love just ain’t enough!Replacing perspiration with inspiration
6 Denial is not just a river in EgyptWhy doing nothing is not an option – keep calm but don’t carry on as before
7 First impressions countLearn to overcome your image problem
8 It’s a listening thingDon’t make aliens of your customers
9 Make heroes of your staffDelegate, delegate, delegate
10 Take risksWhy failure should always be an option in your business
11 Of TOGs, DOGs and HOGsHow silent service is key to your business
12 Become a true destinationWhy your customers should always pass your competitors
13 Overcoming the hand of historyRespecting tradition while valuing innovation
14 Take precautionsThe importance of responsible family planning
15 Have the conversationDon’t let unspoken words threaten the future of your business
16 Why Bono is rightSometimes you can’t make it on your own – learn to stand on the shoulders of others
17 Small can be beautifulBecome a master craftsman at whatever you do
Epilogue
Acknowledgements
Copyright
One day back in the 1950s, I accompanied my father to a grocery shop in Dun Laoghaire. We got chatting to the grocer, and my father asked him, ‘How are things?’
‘Very tough,’ the grocer explained. ‘It’s not like it was in the old days. You know it’s really very tough nowadays.’
When we came out from the shop, my father turned to me and said, ‘You know that’s exactly what my own father heard people say back in the 1930s.’
More than twenty years later, during the 1970s, I rather innocently asked another shop owner how business was going.
‘Ah, I think I got into the business at the wrong time, it’s not like it was in the old days – it’s particularly tough,’ was his reply.
Clearly, some things never change!
Over more than fifty years as a retailer, I have been lucky to learn at first hand what it takes to thrive in business, whether times are good or bad. Also I know from experience that in order for any business to prosper, it has to be firmly rooted in fertile ground.
And for this to happen, everybody involved in the enterprise has to be willing to continuously and relentlessly work the land to ensure it remains fresh and nutritious.
Yet, instead of proactively addressing their problems head on, I believe the type of negative thinking that my father and I saw in Dun Laoghaire (and that his father before him witnessed) has once again taken hold in many businesses.
Make no mistake: it can be very easy to give in to the temptation of believing that we’re not going to succeed, because the marketplace is just not fair out there.
The truth is that you can talk yourself into believing just about anything in business, if you really want to. And, believe me, this can be a very seductive, and ultimately destructive, proposition.
One of the reasons I have written this book is because I am convinced this has simply got to change.
This book is aimed at people who own their own business and those who hope to own their own business one day. I also hope it will be of assistance to the very many people who work for an existing business and desperately want to help improve its prospects.
The idea for this book came from two very different, if complementary, sources.
The first catalyst was when I turned to Denise, my wife, in frustration one day about three years ago. I had been watching the evening news in front of the fire, and all of the reports were focused in one way or another on the terribly gloomy economic situation in the world today.
‘You know, I really feel for those people out there struggling to pay their mortgages, and for the business owners who are worried if they will have to shut up shop,’ I said. ‘But we also have to move beyond this … because I just know that recession can be a good thing for businesses, too.
‘If only they could learn how to put excellence at the heart of everything they do. If they can look after their own business, first and foremost, then they can give themselves every chance of prospering no matter what the economic climate.’
Now, my dear wife had heard my opinions on this topic before and was not about to let me expand on them (again!). She turned to me and said, ‘Feargal, I know how passionate you are about this. But every time you see a depressing news report on the television, which, let’s face it, is pretty much all of the time these days, you get upset. It has got to the stage where I can’t bear to watch the 9 o’clock news with you because I know something is going to set you off! If you feel so strongly why don’t you do something about it?’
And I knew she was right. Because the truth is that the similarities between today’s economic climate and when I started out in business back in 1960 are uncanny.
Back then, emigration and unemployment were also rife in Ireland, and the government of the day had great difficulty balancing its budgets. Like today, people had very little money to spend, and access to credit was very difficult to come by.
In fact, in many ways economic life was even tougher then than it is now. However, there was one major difference between the early 1960s and nowadays.
In those days, Ireland was always in recession, yet we never thought in this way! The term ‘recession’ was not part of our collective mentality as we knew nothing else other than tough economic times.
Crucially, this meant that in order to survive and prosper it was important to just get on with things.
In my case, this included persevering with my rather ambitious plan to open my first shop. My father served as Chairman of the company. It was called Quinn’s Supermarket, situated on a large site in Clanbrassil Street, Dundalk, and opened on 25 November 1960.
I was convinced that grocery retailing was on the brink of a revolution, and I was determined to be amongst the leaders of that revolution in Ireland.
Because my business was forged during tough economic times, I was acutely conscious from day one of the need for my shop to truly excel if my fledgling business was to have any chance of surviving.
I knew it simply had to offer something different from its competitors – and something better, too.
This fear of being ‘ordinary’ served as a powerful motivator throughout my business career. It became, if you like, a sort of internal motto for me as we went on to build a successful supermarket company, Superquinn. It created thousands of jobs in the Irish retail sector before we brought new investors into the company and transferred ownership in 2005.
We achieved this success by truly valuing (or crowning) the customer, and putting the pursuit of excellence at the heart of everything we did.
The second inspiration for this book was my involvement in the Feargal Quinn’s Retail Therapy television programme, which airs on RTÉ television.
During each episode of the series, I visited a different struggling retail outlet. Over time, I helped them to identify where they could improve and worked with them to plot a way out of their difficulties.
As I visited the businesses that featured in the show, I was amazed to see many of the same issues rearing their heads time and again.
Among the recurring themes I encountered were the importance of truly valuing your customers, staff and suppliers; why it is so vital to come out of denial and to make time to see the wood for the trees; and the need to properly plan for succession in family-owned businesses.
Elsewhere, I saw just how important it is to do the simple things well, such as making a good first impression on customers and ensuring none of them feel alienated, while at the same time fostering a culture of innovation based on really listening to their needs.
Working alongside the programme participants, ultimately we succeeded in addressing the things that were holding them back, meaning their businesses could be put on a sound footing.
My involvement in the series got me thinking: wouldn’t it be great if we could find a way to help others learn from the mistakes of our show participants, and to avoid the obvious pitfalls in business?
A sort of handbook of what not to do during a recession – for want of a better phrase!
With Denise’s call to action ringing in my ears, and my experiences with the Feargal Quinn’s Retail Therapyparticipants as another source of inspiration, one evening I sat down and started writing out my thoughts on how businesses facing challenges during a recession can look to renew themselves.
This book represents the culmination of these early efforts.
I have tried to use real-life examples from my own career, as well as from my experiences with the Retail Therapy series, to illustrate the kinds of problems I have seen over and over again.
Although the television programme focuses on the (very) personal stories of those who generously have agreed to take part, the themes involved are universal.
Every issue we found with individual case studies is, I believe, being replicated ten times over elsewhere. And often in a much more serious fashion.
Where possible, I have tried to show how these pitfalls can be either avoided in the first place or tackled head on.
I truly hope readers of this book will find useful, practical tips that easily can be applied to any business situation.
What I will not do, however, is to claim I have all the answers. I do not. Your customers do, which is why you may have noticed I have not offered readers a money-back guarantee!
I would like to dedicate this book to two sets of people. The first set of people you can probably guess: they are each and every one of the participants in the series. They deserve my most sincere thanks for allowing me to hold a mirror up to business practices today.
In so doing, they were incredibly open and honest and displayed a commitment to change that is truly inspiring.
It is by no means an exaggeration to say that without their willingness to allow themselves to face such intense (and very public) scrutiny this book would never have been written. If in some small way their experiences can serve to help others, then they will have done their fellow entrepreneurs some service.
Indeed, nothing would give me greater pleasure in years to come than to hear that even one extra person had a full-time job because their employer took the time to read about their experiences here.
In my role as a public representative, and more recently while travelling around Ireland with my television series, I have witnessed at first hand the effect the current economic climate is having on people on the ground. Yet there remains a powerful, almost palpable drive to succeed among the people I meet on a daily basis.
This second set of people is a constant source of hope and inspiration to me.
I would like to dedicate this book to these people – and the many like them who are willing to do whatever it takes to truly excel in business.
1
Learn to lead by example
The very dignified gentleman who approached me in the hotel car park was unmistakable. The former President of Ireland, Dr Patrick Hillery, had been studying me intently from a distance, without my knowing it.
I had been absent-mindedly picking up some litter outside the Marine Hotel in Sutton, across the road from the Superquinn Support Office, when the President spied me.
‘I used to do the same, at the Áras, you know. If I saw a piece of litter I would go around and pick it up myself. And if I saw another bit a little further away, and another a bit further on I would pick them up too. Then I got ticked off by the security and the Áras staff. They told me I didn’t need to do it because I was the President.’
Of course, like the Áras, the Marine Hotel employed people to look after litter in its outside areas too.
So why on earth was I picking up the litter?
An American friend of mine, Fred Meijer, had a big supermarket chain in Grand Rapids, Michigan, until he passed away in 2011 at the grand old age of ninety-one.
Some years previously, a group of us went to see him, and he showed us around. Fred was probably in his eighties at the time.
His father Hendrik was a barber with a small grocery shop above his salon, and his mother started off selling groceries too. In the 1940s, when Fred decided to go into business with his father, they started selling groceries on a larger scale.
Fred was a true innovator, and the quintessential self-made man.
In the 1960s he was the first to introduce the concept of the hypermarket, combining a grocery store with a general discount merchandise store, to the USA. It was a model that would subsequently be copied by Sam Walton, founder of the giant Walmart chain, amongst others.
In time, the company successfully expanded, until it became a major regional employer. With over 200 stores and more than 170 gas stations in Michigan, Ohio, Indiana, Illinois and Kentucky, Fred Meijer’s company continues to handle its business based on the simple philosophy of Fred’s father, Hendrik. This was to ‘Take care of your customers, team members, and community … And all of those will take care of you, just like a family.’
It is not a coincidence that the company’s slogan to this day is ‘Higher Standards, Lower Prices’, while its motto since its foundation in 1934 is ‘Customers don’t need us, we need them.’
As we went around his warehouse during our visit, I asked Fred various questions about his way of doing business. At that stage, the company had 170,000 employees.
I asked him about the intricacies of how his delivery trucks worked. His response remains with me to this day.
‘Feargal, I don’t know. When a company gets this big, sometimes all I can do is set the tone.’
Fred was true to his word on this, in everything he did. As we went around his shops together, Fred never parked in a good car parking space; he always parked at the back of the car park and walked up to the entrance.
He never walked up without wheeling a couple of shopping carts with him. He never walked past a piece of litter or paper on the floor, even in the car park, without picking it up (much like President Hillery and me).
And he never walked past one of his own employees without shaking hands with them, even though he couldn’t possibly know them all personally with such a huge number of people working there.
With his customers, he was known for giving out Fred Meijer-branded ‘Purple Cow Coupons’, redeemable for a free ice-cream cone, to remind them he was personally grateful for their custom.
I was thoroughly impressed with all of this, to such an extent that I even copied him by handing out doughnut cards of my own.
Because essentially what he was doing was setting the tone that he wanted others within his company to follow. He was leading by example in the most wonderful way.
And it was fairly clear when you went to his competitors, despite the fact that they might have given just as good value, or had similar goods for sale, there was something missing.
They were not Fred Meijer!
More often than not, the overall tone of a company is set by the boss of the company. But this can have both positive and negative implications at times.
A few years ago, I was packing customers’ bags at a Superquinn checkout and a man came up to me. I asked, ‘Is everything OK?’ and he said ‘Hmmmm.’ Sensing there was something on his mind, I asked him to tell me more.
He explained that when he was at the butcher’s counter, he was upset to see knives being left in a wash hand basin. The sink had a sign over it saying, ‘This basin is for hand washing only.’
I said, ‘Oops, that’s an error. It was quick of you to notice.’
‘Well, I’m a quality-control inspector in the construction industry. I notice slippage of standards,’ he responded.
Seizing the opportunity to pick his brains, I asked him, ‘What’s the most important thing in maintaining standards?’
He replied straight away: ‘If the boss thinks it’s important!’
And he was absolutely right.
In fact, earlier in the day, I had gone to that same butcher’s counter to check on how it was doing. I had noticed a damaged package that I withdrew, and I noticed a customer being kept waiting, so I ensured she was looked after.
But I had missed the unhygienic knives in the wash hand basin.
The truth was that, for whatever reason, I had not put the storage of those knives high on the agenda when it came to our butcher’s counter.
And, because of my attitude, the manager of the shop, who had responsibility for 300 employees, also didn’t place it high on his priority list when it came to ensuring standards.
In turn, his butchery department manager didn’t make it a priority, meaning his thirty or so staff at the counter did not deem it of importance either.
Without knowing it, as the boss I was setting the poor standard that was being followed by the shop manager: if I wasn’t putting something high on the agenda, then my employees didn’t either.
This was a very important lesson for me to learn. By giving an example to his or her employees, the boss of any business, no matter how big or small, sends out an important message. It is this: ‘This is how I want our company and our employees to behave. See, look to me for your lead.’
If, for example, a boss is surly or uninterested because he or she is stressed out by the recession, or is perhaps overly aggressive in their approach to business dealings, this will transmit itself to his or her senior managerial colleagues and right the way down through the organisation.
But when the tone is right it permeates throughout the company in a much more positive way. And, as in the case of Fred Meijer, it can lead to a distinct competitive advantage, too.
Another way of describing the tone of a company is the culture and the values that its leaders instil in their employees.
Once, during a visit to Japan, I was invited to the opening of a department store. We were invited in before the shop opened. The chairman, the managing director and all senior managers arrived down to the shop floor. There they met with the heads of each department.
You could see, right around this department store, with probably a few hundred employees, groups of managers huddled around getting the message that the general manager or chairman had for them at 8.30 a.m.
The manager of each department then gathered his or her team around them at 8.45 a.m. They were given the message for the day, a different one each day, which helped define the tone in-store. Then in turn they spread the message to their own staff.
They opened the doors at 9 a.m., and everybody inside – the chairman, the managing director and all the other managers – began welcoming the customers as they came in with these messages still fresh in the employees’ ears.
By giving an example to his or her employees, the boss sends out an important message: ‘This is how I want our company and our employees to behave. See, look to me for your lead’
Clearly, they were setting an example. And I was amazed to hear this happened every day in every shop. Because of this, the opening of the shop each morning had become an important occasion for management, staff and customers alike.
It is a brilliant example of how to ensure that everyone in your company is delivering the same message, from the bottom up, while also showing your customers just how much you value their business.
The tone within a business can manifest itself in some surprising ways, too.
If I had my way, anyone devising a sign would be required by law to have handle with care printed on their arm to remind them!
This is because the language and tenor of the signs you use around your shop can reveal a lot more about your business than you may wish. I have to sheepishly admit that is not something we always got right at Superquinn.
Some years ago, a small number of people were abusing the free parking we offered in the car park in Blackrock. So we put in a new sign that said, ‘After two hours there will be a charge of £1 per hour to park.’
The aim was to encourage only our customers to use the car park. But the sign we used was badly worded, leading to an outcry from the very people we wanted to entice in. We responded quickly, by changing the tone of the sign, but not the policy behind it.
Instead, it now said, ‘The first two hours are free.’
As I say, we had not changed the thinking behind the sign one bit. But the way we expressed the sentiments was much less aggressive. Importantly, it was also far more in keeping with the image and tone we wanted to portray in our company.
Over the years, we also had many problems with the signs at our express checkouts, which were supposed to help customers get through the tills quickly. Being honest, we could never make a sign that didn’t cause rows!
Invariably, some customers would complain if they saw others with more than the ten permitted items using this lane and would wonder why our staff did not refuse to serve them at this particular till. It was, after all, supposed to be reserved for customers who had only a small amount of shopping.
But it is also quite difficult for a checkout operator or supervisor to say to a customer who has been queuing up for three or four minutes, ‘Oh, sorry, this is the wrong queue.’ And, of course, we hated having to tell any customer looking to buy goods in our shop that they could not give us their money!
This is where a small tweak to the tone of our signs worked wonders. Instead of saying the express lane was only for ten items or under, we saw how in America some stores said ‘About ten items.’
We changed the signs in our shops to say, ‘This lane is reserved for customers with about ten items’ and made sure they were large and very visible.
The new policy meant that customers had some leeway to go up to eleven or twelve items in the express queue without prompting the indignation of their fellow customers.
The results were immediate, so much so that it became a rare event to have somebody go through with twenty items, causing a problem.
When we eventually decided to introduce coin-operated trolleys at our Superquinn shops, we did so very reluctantly. We felt it was a disadvantage for customers to have to fish around for the change they needed. But eventually we simply could not avoid following suit.
What really surprised me was the reaction of some local businesses to the move.
One shop put three signs on their window, saying bluntly, ‘No change for trolleys given here.’
In the face of this resistance, we stationed a trolley host with change next to our trolleys, and later with tokens, to get around the problem. Yet I still couldn’t get over the fact that the shopkeeper had put three big signs up.
One day, my curiosity got the better of me. I became so perplexed that I marched into the shop and asked the shopkeeper behind the counter, ‘Would you not be better coaxing people in rather than having these negative signs in your window?’
‘It is an awful nuisance having people coming in here, we are busy and we have to spend all our time giving change,’ was the curt response.
To my dismay, I discovered that in some of our other shopping centres, the same thing happened, with a number of shops putting similarly worded signs up. I felt, and still do feel, these businesses were seriously shooting themselves in the foot with this approach.
But Hugh Crilly, in the Blackrock hardware shop, adopted a far more positive attitude. He put up a positive sign saying, ‘We are happy to give you change for your trolleys.’ Hugh told me he had worked out that people coming into his shop for change would invariably see something they wanted to buy.
He was seizing the opportunity that coin-operated trolleys had presented, in order to make more money!
And, needless to say, he made sure that the customers who frequented his shop looking for change came away with a very positive image of his business, too.
Of course, no matter what tone or wording you use, some signs simply need to be taken away and thrown in the dustbin!
I saw a sign up in a shop one time that said, ‘The fish we sell tomorrow is still in the sea.’
Inspired, we proudly put up our own version in one of our supermarkets. It said, ‘The eggs we sell tomorrow are still in the hen.’
Our customers soon let us know they did not appreciate this reminder of just where their eggs came from! And that sign was gone within a matter of days.
2
Being extraordinary means being willing to break from the ‘done thing’
It might seem strange nowadays, but back in the 1960s shops in Ireland typically had littered floors.
It was the ‘done thing’ in all shops. Everybody just threw their rubbish on the floor, knowing that somebody else would eventually be around to brush it up.
I saw a man in our Walkinstown shop going to smoke a cigarette. He took the last cigarette out and just dropped the packet on the floor. I picked it up and said, ‘Ah, I think you dropped something.’
He said, ‘No, no, thanks, I have just finished with it.’
In other words, it didn’t even dawn on him that you don’t just drop things. Clearly he just dropped it because there were other things on the floor. In the middle of a food shop!
Even the employees, when they were opening packages, left the discarded wrapping on the shop floor.
This seriously bothered me. I went to America in 1961, and I couldn’t get over the fact that there were spotlessly clean floors in the supermarkets there.
But I worried it was so ingrained in the culture of the shopping experience in Ireland that it would be impossible to change it here. I would say to the staff, ‘Excuse me, why is this stuff being left on the floor?’ and the response I would get was ‘Oh, it’s OK, we are going to sweep it up afterwards.’
When I came back from America, I tried my best to keep the floors clean. But I couldn’t make it work. In spite of my best efforts, people just kept dropping litter on the ground inside the shop.
I was attempting to set a new tone for our company, and I was continually coming up against a brick wall. But then something truly extraordinary happened that changed all this.
Paddy Keaveney, our manager in Blanchardstown, went on a study trip we organised to America. He came back and said to me, ‘Feargal, I can’t believe that everywhere in America there are clean floors. Nobody drops anything on the floor.’
We were competing in the Irish Quality Association awards that year. It had been won by a factory in Cork virtually every year previously. There was no chance that a supermarket could win the Hygiene Award because a factory could be spotlessly clean with twenty or forty people working in it, as opposed to a supermarket with upwards of 150 staff and thousands of customers.
In addition, supermarket staff and customers were all too accustomed to littering the shop floor.
But Paddy Keaveney came back from America a man possessed.
It was coming up to Halloween in Blanchardstown, and he took his team of young workers out into the shop car park. These were the young fellows who swept the floor with special big brushes. And he organised a bonfire of the brushes!
He put petrol on the bonfire, and they threw all the sweeping brushes onto the fire, while we proclaimed, ‘We are not going to sweep the floor ever again!’ and we all drank a celebratory Coca-Cola.
I have to admit, I thought Paddy was a little bit mad.
But because Paddy said, ‘We are not going to let the first piece of litter ever get to the floor,’ it changed the tone in the shop almost overnight. The example we took was if you go into your own drawing room you don’t drop something on the floor.
If it is midnight, and there’s been a party in your drawing room, and everyone is around with streamers and beers and bottles and things, you have no bother dropping something on the floor because everything else is there.
Paddy’s point was if we didn’t let the first piece get to the floor then we wouldn’t have a problem.
It was a hard-line ‘zero tolerance’ approach to litter. And do you know what?
Within two weeks the supermarket’s floors were clean. Not because we swept them, but because we didn’t allow anything get to the floor in the first place.
Our employees no longer threw things on the floor. If you did drop something, you picked it up. If a customer dropped something, it was picked up within seconds.
And because people don’t drop things on clean floors, our customers soon stopped doing so too. Within two weeks, every Superquinn shop had clean floors.
I imagine Marks & Spencer had clean floors, but there were no Marks & Spencer shops in Ireland in those days. But certainly, our competitors – Quinnsworth, H. Williams, the others who were there – all had untidy floors.
By introducing this new policy on cleanliness within our shops, we knew we were setting a very different tone. Suddenly customers could see when they walked into a Superquinn that we had clean floors, unlike our competitors.
We won the Hygiene of the Year Award – the first time anybody other than a factory had won it.
And within months we were being followed by our competitors. I had been to the States and had seen clean floors. But I didn’t find the formula to solve it, despite being the boss of the company.
But Paddy Keaveney did!
I tell this story because I am convinced any company that is really serious about standing out during a recession needs to be willing to challenge the accepted business norms from time to time. They need to not just do the ‘done thing’.
This can be a very difficult thing to do because it can require the introduction of a radical new tone that flies in the face of conventional marketplace standards.
Also, it is not always possible for the owner of a business to personally introduce a new tone to a company.
As I learned from Paddy Keaveney, very often they need to rely heavily on the support of their colleagues if they are going to achieve this. Let me give you another example of just what I mean.