May 18, 2018

Lessons Learned from Ray Eriks, a Business Owner of 30 Years

Part 2: It’s All About People and Relationships

As I mentioned in my previous post, I have sat down with Ray, our founder, to pick his brain on what he has learned in his 30 years of being in business. The first installment was about mistakes and things he would do differently or wish he knew 30 years ago.  This one will focus on people and relationships: customers and employees.

A quick recap in case you missed last month’s blog, here are some basic stats on small business success.   According to USA Today, 20% of new businesses fail within their first year, 50% don’t last past 5 years and only 33% make it to 10 years. To restate myself, Cambridge is the exception, not the norm. What Ray has built at Cambridge is very successful and he has touched a lot of lives in the process as well as fed a lot of families. He should be very proud of the company he has built and the length of time he has been in business.

Now I will get into the meat of this post.

Customer Success

If the customer is successful, it immediately translates to you being more successful as a business. Without making your business about the client’s success, you will never be successful. Keeping that in mind, every customer has their own version of success, so you need to identify what that is early on, so you can customize what you do to meet their expectations.

Ray identified seven things that he wanted to pass along when it comes to customers:

1.  Find customers you are compatible with. Being able to build mutually beneficial relationships is important, so you need to find customers that share similar values, ideals and goals as your company.

2.  Build relationships & partnerships. Your focus on growing your business needs to be around doing things so you have long term relationships and partnerships. In our business that means spending our customers money wisely, being frugal, making sure we don’t cut corners and give them exactly what it is they are paying for. The old adage that it’s cheaper to keep an existing customer than to find a new one is absolutely true.  Once you have customers you have relationships with, treat them fair, always have their best interest in mind and you can keep them around for a long time.

3.  What can you do to make their job easier? Life isn’t always about making your life easy. One of our uniques as a company that we focus on is “making clients lives easier one project at a time”.  What this means to us is that we go the extra mile to act as an extension of their company, so our clients can focus on their everyday work life and not have to worry that we are doing our job. We do the follow through, we customize reporting, we do whatever is asked so they can rely on us.  We take work off their plate, so they can focus on more important things. In short, we try to make their everyday work life easier, not harder.

4.  Ask questions to learn your customers business with the being goal to know it as well as they do. In almost any business, especially ours where we are designing facilities, we MUST understand our client’s operations inside and out if we want to design and build a functionally efficient, durable and operationally sound facility for them. This is a large investment, so we need to make sure it will make our clients everyday lives that much easier and more profitable AFTER we have completed our work.

5.  Not every customer is the right customer. Sometimes you must make tough decisions to “fire” a customer. If you aren’t compatible, don’t share common goals, don’t see eye-to-eye or have a different means or method of how you do things, then there will be times when it is best for all parties to discontinue the working relationships. This isn’t always a bad thing and can often times be mutually agreeable. The most important thing is that it is done the right way and handled professionally.

6.  Do the right thing – ALWAYS – whether your client is watching or not, you must do the right thing. This needs to be drilled into your employees and anyone else who is doing work for your customer. Building trust is one of the things that goes into any relationship and if they can’t trust you, they won’t be around for long.

7.  Remember even though we are builders – the prime thing we are is a service business. We need to out-service our competition. No matter what, always be looking for ways to improve your service, interaction and customer experience.  If you can do that and stay ahead of your competition, it will help you be more successful in the long run.

To flip the script, you can’t take care of customers if you don’t first take care of your employees. Happy employees lead to happy customers. The entire customer experience is driven by your employees. Think of Chick-fil-A. Their employees are engaged and happy and thus your experience is better. It’s the same for your business.

Employees

1.  It all starts at the top. How every employee is dealt with starts at the top of every organization. If the CEO treats their reports and everyone below them with respect, then it will funnel down. The opposite is also true. Every leader needs to understand that they are under a microscope and everyone is watching them and if they are doing the right things, making the right decisions, guiding the company the right way and leading effectively it will funnel throughout the organization and even to outside suppliers and subcontractors. Remember this as you pass people in the hallways, speak to customers, deal with suppliers and go about your everyday business.

2.  Plan your future staffing needs – define what the role will need to do and hire to fill the role. While it isn’t always practical to have extra headcount, we believe that you need to be adequately staffed to fill your future pipeline. If your employee headcount lags behind your sales, you won’t be able to service your customer properly, which is a bad trend to start. The second part of this is to make sure you define the role BEFORE you start advertising the role. You want to make sure you know exactly what skill set you are looking for before you start having conversations. Plan the growth, hire employees to work that plan and plan the hiring process appropriately.

3.  Develop your own hiring system – contracting out for this service has proved costly and less effective for us then knowing what we need and understanding how to find the person who WANTS to perform that role. Listen, we aren’t saying recruiters are a waste because they certainly have their position in the world, however, for the positions that we hire, we haven’t had great success.  We have been much better at handling that internally and making sure we had several management employees involved in the conversations to help vet the new hires. Hiring is not an exact science so take your time and make the best decision you can with the information available and the feedback from the hiring team.

4.  Understand that some or many of the employees you have today will not be the employees you need tomorrow. Skill needs change. With the ever-changing world of today and an evolving and growing business, your employee make-up needs to adapt and change with the systems, philosophies, customer experience and other goals your company has. While many of the employees can be adapted and changed, others may need to be moved to different roles, taught different things or replaced if their skill set doesn’t fit any of the roles you need as a company. Fact is, you must have the right people on your team if you want to be successful, so build roles that make the company successful and then fill the roles with the right people. You can’t mold roles to people’s skill sets that will be a recipe for disaster.

5.  Hire people that have a different skill set than you and are smarter than you in areas where you have skill gaps, people you can delegate to, and then the hard part – learn to delegate to them. A lot of managers have issues with hiring people smarter than them. They feel threatened by this because they don’t have the confidence in themselves. These are generally people who fail at management and leadership positions because they are constantly hiring people similar to them or B/C players that can’t make the team more successful. Don’t be afraid to do this. The only way to elevate your team and company is to hire people that can push you and everyone around you. Just like in sports, your team can only succeed if you have a strong leader.  A strong leader can take the weakest player, help them develop their skills and make the team a force to be reckoned with.  You want to hire people who have the ability to lead, even if their current position doesn’t put them in that specific seat right from the start, strong leaders bring all the players together and make the team effective.  Even if some of the people on the team have weaknesses that might have caused them to move on to a position elsewhere, a strong leader will find out why and how to bring out the A-game in them.  Strong leaders challenge their team to listen, work together, collaborate and increase the effectiveness of even the weakest team member.

The second part of this is delegation. Many people fail at properly delegating. You must manage by delegation and not by abdication (to quote the E-Myth). Delegating properly means you hand it off with details, discussions and clear goals in mind as well as a clear follow up process defined to ensure its moving forward appropriately and to answer any questions they have. Management by abdication means you hand it off and wipe your hands clear of it…never to be heard of or asked about again until there are problems. This is no way to run a company so if you need to learn more about how to delegate properly, there are plenty of books out there to help improve that skill.

6.  Take care of your employees and they will take care of you (Generally speaking, at least the ones that should stick). This is a very wide brush within this statement. Taking care of employees means a lot of things. Proper pay/compensation packages, flexibility, proper management in place, proper feedback channels, the right roles and responsibilities, the right level of authority for their role, the right level of empathy, the right engagement from a management/owner level with each of the employees, the right benefits, good core value fits, training systems available, and the list goes on and on. You need to identify the right way to take care of your employees, define that and then hire people that have similar points of view. This is not a boiler plate thing for all companies, it has to start at the top of each company and feed down into the entire organization.

7.  Employees need to embody your customer philosophy – they are your main contact with your customer and the key to your success. For example, in our business we have customers who are high energy, short deadlines and therefore want project management teams that share the same philosophy. On the contrary we have customers who are methodical, want attention to detail and aren’t so tied to short / tight timelines but they just want it in a timely manner. Therefore, our team on their projects need to share the same goals. Whoever you assign to your customers need to share the same goals, same points of view and have common ground with them. You want to have them build that relationship and be able to see and understand things from the customers perspective. If they have similar personalities this is achievable at a higher success rate.

At the end of the day your entire life is relationships whether its work, family, friends, neighbors, people at the grocery stores or anyone else you encounter. You never know where it may lead. Manage each of those interactions and relationships as if you are focused on them and not on something for yourself and it’s amazing how much better your life can be. We all have the ability to affect many lives each day and any little thing you can do to better someone else will come back to you in time, if not immediately, as long as you do it truly with their best interest in mind.

Tune in to next month’s blog for the final installment of the lessons learned from Ray Eriks!

Did you enjoy reading this blog?  Take a look at our other blogs from 2018 and 2017.  You can also view the Cambridge Infographic to learn more about the process we utilize from initial contact with potential and existing clients.   You can also check out more on our website dedicated to the waste industry to see all the services that we have to offer!

You can also check out more on our website dedicated to the waste industry to see all the services that we have to offer!

Jeff Eriks – Vice President, Business Development & Marketing

Cambridge Companies is a design-build firm based in Northwest Indiana specializing in solid waste facilities and a lot of experience with commercial projects.  Click here to see current projects and our portfolio of commercial and solid waste projects nationwide such as transfer stations and hauling companies.  We also offer a variety of architectural and design services to facilitate your project from conceptual design through the use of the facility.

www.cambridgecoinc.com

(219) 972-1155

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April 23, 2018

Lessons Learned from Ray Eriks, a Business Owner of 30 Years

Part 1: Things I wish I knew 30 years ago

As you may know, 2018 is Cambridge Design-Build’s 30th year in business. While I have only been here for 18 of those, Ray Eriks has been here since its inception as the founder of Cambridge Companies, Inc. I decided to sit down with him and ask him to think of the top 30 things he’s learned in the last 30 years of being in business.  As usual, he exceeded expectations and gave me 39.  This will be a 3-part series listing those items and providing some additional insight with the goal being that maybe a couple of these will resonate with you and help you on your journey in the business world whether you are an employee, manager, leader or entrepreneur.

Many of you probably know the stats on small business success, if not here you go.  According to USA Today, 20% of new businesses fail within their first year, 50% don’t last past 5 years and only 33% make it to 10 years. Cambridge is the exception, not the norm. What Ray has built at Cambridge is very successful and he has touched a lot of lives in the process as well as fed a lot of families. He should be very proud of the company he has built and the length of time he has been in business.

I am one who enjoys learning new things and, especially, from the successes and failures of others. Some people often that more can be learned from failure than success and I tend to agree with that statement.  When things are easy and going well, it is easy to coast and not work on the business, but in trying times or when things go wrong that’s when you really dig in and learn more about yourself and the business your running.

One last thing to touch on before we get started on the list is something I like from E-Myth Revisited by Michael E Gerber. Each person who starts their own business is three people/personalities in one: entrepreneur, manager and technician. If you are going to start your own business, step one is to realize which one you really are (the dominant personality), then hire people to be the other two and delegate those tasks to them and you focus on what you are good at. No one person can be all three effectively.

Without further ado, here is the list of the first 11 items Ray learned and is passing on to us.

Lessons Learned: Things I wish I knew 30 years ago that would have helped me build a better company even faster.

  1. Starting your own business does not mean you are your own boss. When you start a business, you start out with the goal of freedom – be your own boss. However, not long after starting the business, you soon realize that, while you may enjoy what you do, you really aren’t your own boss… you now actually have many new bosses in the form of Customers – Vendors – Employees – and the rest of the other new life demands.

  1. Early in business, most start-ups only think of their business as a pay check and not a future. You need to make daily decisions as if you are building a business long-term and not just based on how I get my next pay check.

  1. Find a peer group early. Peer groups of like minded businesses will help you look at things a different way, provide support to bounce ideas off and give you people that are also out there dealing with the similar challenges.

  1. As soon as practical – build your team to include Operations – Accounting – Marketing (Business Development). Every business needs to have these three pieces to be successful. Without all three it will be very difficult to build a sustainable business. A company is only as strong as their weakest leader of these three departments, so keep that in mind when you are building your team.

  1. Learn early to look past what you see then as your limits. Understand that as a human you are constantly evolving and learning so just because you can’t do something today doesn’t mean you can’t learn it. Always be learning and improving yourself because the business will be limited by the skills of its leader, especially if they don’t have the ability to “out hire” themselves. I define “out-hiring” as hiring people who have skills that either you don’t have or that you are weak in so that your team can be well rounded.

  1. Learn earlier to work on the business and not in the business. Put simply, working on the business is more important than working in the business. Working “in the business” consists of daily tasks for projects while working on the business is long-term planning, process development, employee training, hiring, client relationships, etc. You need to have people to work in the business, so you can spend a majority of your time working on the business. That’s how you build long-term success.

  1. Learn to adapt to new roles as you grow your business. Ray had to change from a person who received immediate gratification (he was a carpenter by trade before starting this business, so he could see his progress every day and get that satisfaction) to one that had to get satisfaction from duties that were hard to quantify the results. When working on a business you don’t often see results until 1-3-6 months down the road, so you have to trust the process and find ways to see the results in pieces and not as a whole.

  1. Learn the need to train and develop staff early. Employee training is critical. You can’t just hire someone and throw them into the fire. You need to train them in your company procedures and then follow up regularly and continue to work with them.

  1. Learn the benefits of long term planning earlier. As Peter Thiel states, “Long-term planning is often undervalued by our indefinite short-term world”. This is so true. Our society is all about immediate results, so they make short sighted decisions. As a business owner you need to get rid of that mindset and think for the future as well as the present and realize that there are great benefits in long-term planning. Keeping that in mind, long-term planning needs to be accompanied by short-term goals (3-month rocks like we have in Traction by Gino Wickman) in order to keep you and your team focused day in and day out.

  1. Develop your collaboration skills early. As you add employees and teams, new customers and vendors and all the other necessary pieces of a business, you need to be able to build successful relationships and collaborate with all types of people. This skill must be worked on and improved daily to help you be more successful.

  1. Understand the economy is a big unknown and always be prepared. ALWAYS know that when the economy is good it will not stay good forever and when it is bad, it will not stay bad forever. Prepare for the time when it goes bad and HAVE a plan to succeed through it.

Tune in to next month’s blog for more lessons learned from Ray Eriks!

Did you enjoy reading this blog?  Take a look at our other blogs from 2018 and 2017.  You can also view the Cambridge Infographic to learn more about the process we utilize from initial contact with potential and existing clients.   You can also check out more on our website dedicated to the waste industry to see all the services that we have to offer!

Jeff Eriks – Vice President, Business Development & Marketing

Cambridge Companies is a design-build firm based in Northwest Indiana specializing in solid waste facilities and a lot of experience with commercial projects.  Click here to see current projects and our portfolio of commercial and solid waste projects nationwide such as transfer stations and hauling companies.  We also offer a variety of architectural and design services to facilitate your project from conceptual design through the use of the facility.

www.cambridgecoinc.com

(219) 972-1155

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March 23, 2018

How to Find Better Candidates for Your Company

Internal “Active” Recruiting vs. External “Passive” Job Posting

Over the last six months, I have been leading the charge on finding new employees for Cambridge. Some are replacement positions and some are new positions.  Historically speaking, we have used what I would call, a “passive” approach to finding new employees.  This, to me, involves either using an outside recruiter or posting ads on job boards such as Indeed or ZipRecruiter.  I call it passive because we would basically sit there and wait for a recruiter to bring us a candidate or wait for resumes to roll in.  We weren’t out there trying to find people ourselves.

While these methods play a role in constantly pulling in new resumes, I felt like they weren’t providing us with the “best” options and that the “best” candidates are the ones not actively looking at job boards.  These candidates have feelers out there and are open to listening to what you have to say. Don’t get me wrong, we have found some great people with the passive approach. However, with the job market as tight as it is I felt like we needed to do something different to get different results. More recently, the quality of the people responding to ads wasn’t what I would call, “A-players”, which is what we look for.

This brought me to my current method, which to me is more of an “active” approach of looking for talent. Last year, we signed up for LinkedIn Recruiting. While not a cheap platform, I have found it to be the best way to contact talent who are open to listening, but not actively looking for a job. As a side note, “not cheap” is relative because it costs less than using a recruiter for one position, so for us, it pays off.

Historically speaking, employers keep their best talent happy and working and unless the employer fumbles in one way or another, they aren’t actively looking for a position by searching job boards. Besides, with so many platforms out there now, how do you know they will even see your posting?

My journey began with LinkedIn Recruiting in November 2017.  Since I changed our approach, we have hired four people who I started conversations with prior to them seeing my job posting. What this allows you to do is grab their attention and show them your interest. It also gives you control over the conversation. With a blanket job posting, they may read a couple sentences and then apply. They know nothing about you, your company or what you really want because people just don’t read the whole ad. By reaching out to candidates, you can give them an idea of who you are, your company goals, where you see them fitting in and set up a 10-minute “introduction” call to see if an interview is worthwhile or not.

With so much competition in the marketplace for talent, it’s important that you show the candidate that they are important to you and that, together, great things can be accomplished. This gets them excited about the opportunity and sets you apart from your competition.  Also, by using this method, you have very little competition for this person, since many employers still use the passive approach. So other than their current employer, they likely aren’t having many conversations. People out there applying for every job on the job board have a lot of interviews and you end up with more competition for what I consider to be lower quality candidates, typically.

After I start the conversation, I have a short agenda for the 10-minute introduction call that consists of:

  1. Asking them some questions about their current position, roles, responsibilities and career goals.

  2. Telling them about our company, the exciting things happening and what we see for the position and the growth and responsibilities attached to it.

At the end of the call, we mutually agree that we should either set up an in-person interview or wish each other good luck, because it’s probably not a good fit.

While still in its infancy, we feel like we have had great success with this method of active recruiting vs. passive job posting/wait method.

I encourage everyone out there to be more active with recruiting methods because you may get much better results in a job market this tight and competitive.

Potential new hires appreciate the fact that you saw potential in them and are usually more excited about these opportunities vs. hearing from an outside recruiter or responding to a posted job.

Did you enjoy reading this blog?  Take a look at our other blogs from 2018 and 2017.  You can also view the Cambridge Infographic to learn more about the process we utilize from initial contact withpotential and existing clients.   You can also check out more on our website dedicated to the waste industry to see all the services that we have to offer!

Jeff Eriks – Vice President, Business Development & Marketing

Cambridge Companies is a design-build firm based in Northwest Indiana specializing in solid waste facilities and a lot of experience with commercial projects.  Click here to see current projects and our portfolio of commercial and solid waste projects nationwide such as transfer stations and hauling companies.  We also offer a variety of architectural and design services to facilitate your project from conceptual design through the use of the facility.

www.cambridgecoinc.com

(219) 972-1155

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February 23, 2018

One Bad Attitude Can Infiltrate A Whole Company

Employees are the lifeblood of your business.  Happy, inspired employees inject rocket fuel into your business. Their attitude is contagious, and their fellow employees feed off that energy and your customers feel it as well.

On the other hand, employees who aren’t happy or inspired are a drain on your company because their negativity has a compounding affect. As much of a positive influence the happy people, the unhappy have a much greater affect. I would be willing to bet that one unhappy employee can affect your organization 10x more than that of one happy employee. In other words, for every one bad culture fit, you would need 10 awesome, happy, inspired employees to average it out.

Here is an analogy for you…

Take an empty glass to represent your company.

  • The 4 oz of water we will put in the glass will represent the positive morale or attitudes of your employees.

  • Red food coloring will represent the negative energy of an unhappy employee.

Starting with a clear glass, fill it with the 4 oz of water. Everything is positive, and morale is good!

Then you make a hire and this person inherently has a bad attitude, doesn’t meet your core values, isn’t inspired by the work your company does or doesn’t feel a connection to the rest of the team.

Now, place one drop of red food coloring into the water.  Now add another drop, and another drop… Each drop of red food coloring represents each negative interaction with other employees or clients. Watch what happens to the water.  The more drops of coloring you add, the more of the water becomes contaminated. Now, it’s faint at first, but as time goes on and the longer you leave that employee in place and don’t deal with the issues, the more affect they have until the entire glass is red or the entire company and clients have been affected by the negativity of one employee.

Once you have made a decision to replace that person, even if you make a good hire, how many more ounces of water do you have to put in that glass to clear out that red dye? Even after you remove that person, the negativity and the damage they have done stays around for a while and it takes a lot of work to build the company back up.

To use our example from earlier, it would probably take about 40 oz of water to dilute that red dye enough to get CLOSE to where you were before that bad hire.

As a business owner, it’s important to build the right staff and take care of your employees.  A company is much like your family. It takes work to build it and to raise it the way you want to be successful. You must invest your time and money into it to make progress.  Your employees need your financial, mental and emotional support.

Some of the basics to keep in mind about employees and what you need to provide for them in order to nurture and cultivate your company:

  • They must share your company’s core values and vision, so they fit in culturally.

  • They have to love the work you do and be inspired and excited by it.

  • They have to believe in what you’re doing as an organization.

  • They need to know you are interested and invested in their success and growth.

  • They have to know you have their back and support them.

  • The driven ones want to know where their career can lead them to at your company.

If these needs aren’t being met, you will be a stepping stone for them to their next company.

Take the time and the energy into building the team that fits your company and where you want to take it. One drop of dye into a clear glass of water will affect the entire glass.  When you see someone disrupting your culture and morale in a bad way, make changes swiftly before the damage goes too far and you can’t get the water clear again.

Employees are the lifeblood of every company, treat them as such.

Did you enjoy reading this blog?  Take a look at our other blogs from 2017 and 2018.  You can also view the Cambridge Infographic to learn more about the process we utilize from initial contact with potential and existing clients.   You can also check out more on our website dedicated to the waste industry to see all the services that we have to offer!

Jeff Eriks – Vice President, Business Development & Marketing

Cambridge Companies is a design-build firm based in Northwest Indiana specializing in solid waste facilities and a lot of experience with commercial projects.  Click here to see current projects and our portfolio of commercial and solid waste projects nationwide such as transfer stations and hauling companies.  We also offer a variety of architectural and design services to facilitate your project from conceptual design through the use of the facility.

www.cambridgecoinc.com

(219) 972-1155

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January 19, 2018

Failure Can Propel You To Greatness

At the beginning of each year, people often take the time to reflect on the previous year and then look toward the new year as an opportunity to start anew. Reflection on the previous year from a team, company and personal perspective is always beneficial. The positives from the previous year are always good to energize you and to use as positive reinforcements for your team, your company and yourself so you can show how you can be successful based on past experience.

However, the way to really improve yourself, your team and your company is to reflect on the year past and ask yourself this, “What failures did you have that you can take lessons from and apply to 2018?” You need to look at failures as opportunities. In our case it is, what bids did we lose or what delays did we have, what people did we lose and other things like that. We need to identify all our flaws from 2017 and look for the lessons within those and improve our company for 2018 because this is the only way we can get better. Successes are great but failures, taken in stride and utilized to their full extent, are what make people, teams and companies great!

This same philosophy should be applied to each of us as individuals. I’m sure everyone reading this had some type of personal failure in 2017. We should all take these and analyze them and figure out how we can learn from each of them going forward. The most successful people in the world all talk about their failures along the way and how they propelled them to greatness. Winston Churchill once said, “Success is stumbling from failure to failure with no loss of enthusiasm.”

My challenge to each of you reading this is to focus on your failures, not for what they are in the moment but for what they can help you become in the future. No one ever lived without failing, it’s your view of that failure that makes the difference.

I’ll leave you with this. “I have not failed, I’ve just found 10,000 ways that won’t work.” Thomas Edison, one of the greatest inventors this world has ever seen.  Imagine if he would have given up after failing to create the light bulb… where would we be today?

Did you enjoy reading this blog?  Take a look at our other blogs from 2017.  You can also view the Cambridge Infographic to learn more about the process we utilize from initial contact with potential and existing clients.   You can also check out more on our website dedicated to the waste industry to see all the services that we have to offer!

Jeff Eriks – Vice President, Business Development & Marketing

Cambridge Companies is a design-build firm based in Northwest Indiana specializing in solid waste facilities and a lot of experience with commercial projects.  Click here to see current projects and our portfolio of commercial and solid waste projects nationwide such as transfer stations and hauling companies.  We also offer a variety of architectural and design services to facilitate your project from conceptual design through the use of the facility.

www.cambridgecoinc.com

(219) 972-1155

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