Episode Transcript
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(00:00):
There's a big difference between being a manager and being a leader, and it's very important that you know the difference. I don't care if you're the owner of the company, if you're the manager at the company, or if you're an employee at the company. I think everyone listening to this episode would be very valuable. And so we're going to dive into the differences in how a business that really understands the difference is going to be in a much better position than those that have a little bit of a cloudy definition.
(00:25):
Hi, my name is Mike Arce, CEO of Loud Humor. We're the best go to grow. We've now worked with over about 4000 studios throughout the world within 11 countries, 60 different franchise brands and hundreds of independent brands. And if you want to learn more about how to work with us, just go to loud rumor.com and schedule a call.
Okay, so, we just had an event in Saint Louis, Missouri. We we did it first form, and it was really great. We had, you know, Andy for selling and sell. Priscilla, come and actually do a talk and really demonstrate, you know, how they have certain standards and expectations living within the organization. And but at that event, we talked a lot about the difference between leadership and management.
(01:07):
And I did this one exercise to really help illustrate what that was. And it's actually called the salt shaker exercise. But it was a fitness conference. I did have a salt shaker, but I definitely found plenty of water bottles. And so what I had done was I took this one little table that was there, and I put it in the middle of the stage, and I had somebody come down to the floor and her name was Kim.
(01:28):
We call her Cash Flow Kim, because she's just a killer in the sales process and making money. And she owns a company called MTK gym. So if you ever check them out online, they got like 60,000 Instagram followers or they're crushing it. So Kim comes down and I said, Kim, I want to help you understand what a manager's job is.
And so on the table, I put this water bottle and I said, this is where the bottle's going to go, okay? And this is where it needs to be. So now I said, your job as a manager is to make sure it stays there. So I took the water bottle and moved it to a different part of the table.
(02:01):
She grabbed it and she put it back to the same spot. So I moved it again to a different spot. She put it back. Then I knocked the bottle down. She picked it up and she put it back. Then I took it and I. I put it on the ground. She went, got it off the ground, put it right back in the same spot.
Then I like hit it off the ground about ten feet away. She went over it and put it in the middle. And she's laughing. Everyone's laughing because nobody really understands where I'm going with this. And then I said, you notice how you kept putting everything back in the same spot? And I said, yeah, I go, that's what a manager's job is.
(02:31):
Things are going to happen in a company that you don't expect that are going to knock things off kilter. You're going to have employees that quit. You're going to have people that call in sick, you're going to have, certain things happen. Was a flood in the studio or the internet goes down or a software is not working, and a manager's job is to keep the train on the tracks no matter what.
That's it. Just as much as possible. Because if you don't, little by little, things get too far off the rails and you never get it back. And then we start failing. So that's your job as a manager process. How do we stay in process? And so that also means if an employee is supposed to be doing a certain process during the sale, right.
(03:10):
This is our sales process. If they don't follow that process, your job as a manager is to get them back on track. Hey, why did you do that this way or that way? They tell you, okay, well, I need you to make sure we follow the process. That's a manager's job. If when somebody needs to call in sick, they're supposed to, update the, you know, the whole team in the shop, or they're supposed to send something to reform whatever it is, and instead they text message the owner or the manager.
(03:35):
You know, the manager's job is to make sure they understand that's not the process. Here's the process for that. So a manager's job is to enforce process. That's their job. Make sure we keep the train on the tracks. Let's the leader's job manager's about process as a leader is about judgment. The leader's job is going to be more around thinking.
(03:58):
And what can we be doing to make this better? How can we be making decisions that would help take the company in a better direction? So an example would be we talked about the 131, the 131 is an incredible tool when there's a problem in the organization. And so if let's say somebody goes to the manager and says, hey, I've got a problem, what should I do that's not following the 131?
(04:26):
Now, if the company already had that living in the organization, the employee would have come with A131. And I'll explain what that is in a second. But if it doesn't live in the organization or it's not enforced, well, the manager is going to have to say, hey, well did you 131 it and the the person that had the problem would know what that means because they've been trained A131 means, hey, I've got one problem.
(04:49):
Here's my problem. Here are my three proposed solutions that I've thought through. And here's the one I'm going to go with. I'm just letting you know so that you know, if there's any flaws, you can let me know. We can go a different direction. Right? That's the idea. So here's what problem three solutions. The one I'm going to go with.
Okay. Now if the person that came to the manager said, hey, I've got a problem. And the manager said, did you want three, want it? That would be the manager following the process. A leader isn't going to always respond that way. If it's an urgent issue, hey, somebody is, you know, claiming that there's a sexual harassment going on.
(05:29):
You know, I'm freaking out right now. What do I do? That's not a moment for the manager to go. Did you 131 it, because they probably you've never been in this situation before. They don't have enough understanding of it. And so that's where we go. Okay. Okay. What do we know so far? Let's kind of talk through it.
So that's judgment. Also there was a great example of how that lived today. In the organization now in a loud room. And I'll explain what happened. But this is another important piece to understand is that management has to do with the title as well. But leadership is not title related. So I might imagine there's a hierarchy and you've got owner, general manager, head trainer and then coach.
(06:17):
Let's just say that let's say that's the hierarchy. Well, you would assume that, well, the coach is not a leader, and you would assume that the owner is definitely a leader. And everyone follows because they're a manager at some level, they are a leader. Well, that's not necessarily true okay. The leader leader is more of a mindset. And so you could have the janitor could be a leader, right.
(06:42):
As long as a janitor is finding ways to be more efficient and holding people accountable to the standards that we hold here at the company. So if I'm a coach and I notice that somebody on the team, I don't care if they're another coach, I'm care if it's front desk girl. I don't care if it's the owner. If I notice that they drop something on the floor, if they saw it, they did pick it up.
(07:03):
That coach going, hey, Chris. Yeah. Hey, just remember, we got to make sure we pick these things up. We can't leave them on the ground like that. Now, some of you might be hearing that and saying like, oh, that would not go well. Well, probably. But the reason that doesn't go well is because it's not the standard. So that's just crispy nitpicky because it's not the standard.
But if it's the standard, if everyone knows, hey, we keep a really tight ship here. So we drop something, we pick it up, we hold, we throw it away. Also, if we see somebody else pick it up, we or we've see somebody else chops up, we, hey, call them out. Hey, we need to make sure we pick this up.
(07:36):
And you as a person gets called out, you had to take it extremely well. You have to say, hey, thank you so much. I really appreciate it because that makes the other person feel comfortable knowing that you can take that. But if they realize it, you can't take that. You're too weak to take that. And you say, geez, just a piece of paper.
That's it. They'll never call you out again because they know that you can't handle it. You don't take it well. And so everyone on this team is going to carry a leader mentality, meaning we are not only great at holding ourselves accountable, but we're also really great at holding others accountable. And we're really great at being held accountable.
(08:11):
Those three things exist in a leader. Now. Manager could also be a leader, right? You don't have to be and or don't like. Am I a manager or a leader? Well, you could be both, but you don't necessarily have to be. That's the idea. So what happened today at the company, which is really, really cool. So we have one of our coaches that, manages probably around 40 or 50 different gyms.
(08:33):
That's how many coach how many gyms he's currently coaching right now. And he's he's one of our I mean, I would say one of our better coaches, but I think all of our coaches are really good in their own respective ways. They all have their own unique talents. But he's a really great coach and he's helped a lot of gyms do a lot of really great things in a short period of time.
And he was working with, this one client, and he asked another coach to come in on the meeting because he wanted her perspective. Now, that's not process. That's not something that allows them where we say, hey, do this when this happens. So at that moment, he shifted to leader because he saw that he made a judgment call that there might be a way to better serve my client if I bring in another coach that I think has a valuable perspective in the weakness that this client is currently dealing with.
(09:21):
And so they did. Now, here's a cool thing. That was one really good leader move. What happened later was even better after the call was over. Neil, the coach that we're talking about realized that man, I think the other coach, Katie, is actually a better fit for this client. Now, the ego could be here if Neil were to give that client away and say, hey, I think you do this better, that could be an ego hit.
(09:49):
But instead it wasn't an ego hit. Instead, he played for the name on the front of the jersey, then the back of the jersey. What does that mean? Well, if you play for the Lakers on the on the back, your it might say your last name, but on the front it says Lakers. And so you know you saying, hey it's important for me to give up my starting spot so I can sit on the bench and have this other person I think is better than me play.
That says a lot for you as a leader. It could be an ego hit to do a move like that or the asked to do something like that, but to do it for the front of the jersey, for the name on the front. That's incredible what Neil did. The second good leader move is he went up to K.D. and said, hey, I think this person should be your client.
(10:26):
I think you this person would get better served. I think you're a better coach for this person. That's not part of our process. If he followed process, he would have just worked harder on this. Now the cool thing is, he gave us a new way of thinking that now we're going to possibly create a process around it. But what he did was he made a judgment call, and that's a different scene, a manager and a leader.
(10:50):
And Neil is a leader, at least in that moment he was a leader. Now everyone jumps in and out of leadership. Sometimes we even, even the CEO will make a move. And it was like, I wasn't a great leader right there. That's okay. Yeah, maybe. But but what we need is our people to be thinking and acting as leaders as often as we possibly can.
So for those of you that are listening to this, I don't care if you're the owner or if you're the manager or if you're, you know, coach or front desk or sales doesn't really matter. Just remember that your job as a member of a team that's not a big corporate company. It's a small company. It's a startup.
(11:29):
Every one matters. Every person's pay. You pay, whatever it is you're getting paid is a decent sized percentage of the overall company's income. It's a decent enough percentage, right? If you think about if the company's doing, let's say 50,000 a month and you're getting paid 5000, while the company's giving you 10% of its income, 10%. If you don't think that number is big, go to your bank account.
(11:58):
Write me a check for 10%. I bet you feel like that's a lot of money. Yeah, it is a lot of money. 10% is a lot, right? So with that said, they're giving you 10%. Now, if you work for a big corporate say you work for Amazon, I mean, you're like a 0.0000001% of their payroll, if that, like your existence, whether you're there or not, is probably irrelevant to the company continuing on.
(12:22):
But when you're getting 10% or 2% or 3% of the company's revenue, oh my gosh, you have a really big role here. It's important that you every day you come in with a really great attitude and you are understanding. I don't care what it says on the business card. I don't care what it says on the website. I don't care what my title is.
I'm a leader and I'm going to lead. And what that means is I understand the company's vision and purpose. I understand the goals that we have. I understand our values, the standards that we have, and my job as a leader. Period. I don't care what spot I sit in your chart, my job as a leader, as a person that gets a good, healthy percentage of the overall company's revenue, is to make sure that I am keeping that standard.
(13:05):
I'm holding people to that line, and especially myself, and I'm using judgment to find ways to make the company better. Because if I can play for the front of the jersey more than I play for the bank, my opportunities continue to expand. But if I only play for the back of the jersey, I mean, how many raises could I get with the company not making more money?
(13:26):
How many raises could I get before the company says we just don't have it? We don't have the money to pay you more. We're not growing. But if the if, if you could focus on the front of the jersey, the company continues to expand. Now it's doing 60,000 a month, 80,000 with a 100,000 a month. Of course, now your percentage is less of the revenue and they have a bigger labor budget, which means your opportunities not only in promotion, because obviously as the company grows, it can be bigger, bigger teams, maybe new locations.
(13:59):
So you have bigger opportunities as far as title and promotion goes, but you also have bigger opportunities as far as income goes. So, so really think about the difference between a manager and leaders. And for you owners it's the same thing. It's not it's not important for you as owners to constantly just be doing things, just be getting things done.
(14:21):
Just be checking things off. If you do that, you're locking yourself in a manager role, but with the company needs is a leader. And for you employees, if you see the owner doing things that you could be doing, if you see them checking off boxes that you think you could check, maybe not today. Maybe you feel like I don't know exactly how to do it, but I feel like maybe if I went up to him and said, hey, I think I can help take that off your plate.
(14:46):
If you show me what to do, I could probably help you. If you do that, you free the owner up and you give them time. And that time that you give them allows them to be a leader. Allows him to think of ways to increase the company's revenue, allows him to get the free time to connect with other entrepreneurs like we have in our.
We have hundreds of gyms in our program, so able to connect with other gym owners that are doing well and get their ideas, and now they're able to integrate that into the business because you freed them up every time you see them. Just know this. Employees, please pay attention because you can make such a massive impact. Talk about contribution opportunity here.
(15:26):
Every time you see the owner or the studio manager, mainly the owner doing things, checking boxes, and you know that even with just some training you can figure out, just know every time you see them doing that, you're limiting your growth potential. Every time you don't think they're going to go play golf, that's not how they're wired. They're not going to go play golf instead of work.
(15:48):
That's not what they're going to do. They're going to find ways to be more productive because you've taken that off their plate. So I really hope as a team, you all get a chance to listen to this and maybe even have a conversation around and think, hey, what does that mean? How can we all contribute a little more?
How can we have better conversations together? Because although it's a small team, everyone because it's a small team, everyone has a big role. All right, I really appreciate you guys. Tuning in. Obviously, these are the conversations we have inside a loud room or with our group all the time. I think that's one of the things that we do very, very well is, we really help the team understand their role.
(16:28):
And, you know, I think, I don't think any owner can grow any business on their own. They need a team and they need a team to be great. And I think that's something we do extraordinarily well. So if you want to learn more about how to work with us, how you get your team more engaged, go to Loud intercom, schedule a call.
We'd love to talk with you and we'll see you in the next episode.