How to create a great team at your shop

We had some great news at work last week when our assessor told us that we had successfully retained our Investor in People status for another three years.

Julia, the same assessor we had three years ago, thanked all the people who took part (a third of our 27 strong team) for being consistently positive, open and honest and keen to make suggestions. Our culture, she said, had improved. “You have some quite amazing people in place,” she said.

Signing up for Investor In People status was one of the steps on our way to become a great company. Another key factor was agreeing our mission to energise independent retailers. Everyone who works at Newtrade knows that the objective of our work is to help local shopkeepers grow their sales and profits. Having a worthwhile purpose in common drives our team work.

Serendipitously I have just read Superteams, a book from team building expert Khoi Tu, that promotes seven rules for getting great performance. He has chosen seven modern fables that will inspire all team leaders.

The first story is about Steve Jobs' most successful investment, which was not Apple but Pixar. He assembled a team whose common purpose turned out to be becoming the digital Disney. Steve Jobs invested $55 million to keep Pixar going and was rewarded with $2 billion when it was sold.

The second story is about how Colin Montgomery led the European team to Ryder Cup success in 2010 by coaxing great performances out of his 12 golfers, overcoming the US and Tiger Woods.

The third story explains how the success of the SAS’s storming of the Iranian embassy in 1980 was a result of great team selection processes.

The fourth story shows how preparation helped the Red Cross to successfully save lives in Haiti after the devastating earthquake in January 2010.

The fifth story shows how the team behind the Rolling Stones and the band work together to deliver successful world tours.

The sixth story is about mastering conflict and explains the background to the Northern Ireland peace process, led by Tony Blair.

The final story says adapt or die and explains how Ferrari built a team that was unstoppable behind Michael Schumacher in 2002.

After every story, Tu provides engaging analysis and a list of things that you can do in your business to build your team. Initially I was sceptical. These stories were all too testosterone charged (perhaps with the exception of the Red Cross example) and almost no women feature in leadership roles.

But on balance they are well chosen to illustrate the seven principles. For example, the Rolling Stones story is well known but Tu tells it in a way that shows how the team delivers behind the scenes. Great results are achieved by many people working together.

Great teams don't happen by accident. They are built by your leadership. If you are interested in building a great team then this book will be very helpful for you. But be warned. Tu says building a better team “requires that you ask difficult questions, make tough choices and take action."

PS Khoi Tu is donating all his royalties from this book to the British Red Cross. Wow!

Busy street, empty shop, missed profits

True in part to my New Year resolution, I held a business meeting in an independent coffee shop today just next door to a Starbucks. The cafe was presented well and four staff were busy preparing for the lunchtime rush, at 11am. As my guests were late, I had a half hour overview of footfall on the street outside and in the restaurant. Six customers. Barely enough to form the queue in Starbucks or Pret-a-Manger just down the road. Plus one Italian girl who dropped off her CV. Some people stopped to look at the posters in the window and moved on. The owners seemed quite happy. When I left just after 1215, they were doing brisk trade. However, I have the impression that the business is not working hard enough. It could easily have managed 120 customers between 11 and 12, instead of 12. This is lost profit as the fixed overheads and staff costs are already in place. The owners are clearly busy - perhaps too busy to take time to look at the potential that their cafe has. What shou...

Sticks and stones do hurt

My 17 year-old son returned from a rock festival this week wearing a wristband proudly declaring him 0ver 18. He explained how easy it had been to use someone else's ID to get the identification and said it was ironic that he had not needed to show the over 18 band when buying alcohol. Today, Scottish retailer Abdul Qadar is complaining that public authorities are asking people to lie about their age when making test purchases. What trading standards officers may be forgetting is that the fact that retailers invest in a business premises and trade consistently from it make their job much, much easier. The alternative, a world of markets and itinerant traders, will be far harder to police. Mr Qadar's sense of injustice is fair. Those retailers, like Mr Qadar, who value their investment will seek to trade legally and will not sell alcohol to people under the age of 18. Asking children to lie about their age to local traders is a slander on all retailers.

Think before you delist your slowest seller

Retailers need to introduce new products to provide their shoppers with "good news" and to generate interest. But for each new product that you introduce you need to consider delisting an existing line. Easy, you might think. I will just print out the list of products in the category and take off the one with the lowest sales. However, if you do this research from the US suggest you might be wrong. What you need to consider is what sort of demand you have for each product, a white paper by Demand Tec, a US specialist software provider shows. It says that there are two kinds of sales: incremental sales, when products add to the total shopper spend and are not readily substituted by another item transferable sales, where shoppers find an alternative easily when it is not available. Using its software, it shows a category with 50 products from top seller to bottom seller. At the same time it also measures the incremental sales each product provides. The number 50 in ove...

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