We have heard (and perhaps said ourselves) that we are in one of the toughest financial times since the Great Depression. There is no doubt that American businesses and the public at large is hurting, notably when compared to more robust economic times. But as my family and I go to the restaurant, grocery stores or malls, I see people shopping, lined up at check out and spending money. The check out line is a far cry from the bread and soup lines of the Depression. Times may be more difficult than 5 or 10 years ago, but the point is that hard times today are not the same as hard times of the Depression 80 years ago.
In fact, some have learned to thrive during these hard times.
McDonald's Corporation announced on 1.24.2012 strong results for the fourth quarter and year ended Dec. 31, 2011, fueled by growth across all of its global markets. The fourth quarter results included an 11 percent profit increase. Regular readers have seen me reference McDonald's in columns and posts before. Both they and manufactured housing are in the affordability business. We offer homes for less, they offer the meal out and fast food for less.
I was telling a client of ours about the importance of proven processes in terms of gaining success and profits. What makes McDonald's work? What makes it profitable? Books could be written on that, but let's drill it down to some sample bullet points:
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Marketing – advertising – and branding (perhaps the most recognized logo ever) that keeps them top of mind. They never stop advertising! So they are often top of mind when it comes to making a fast food selection.
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Ronald McDonald House. Their fine charity gives them a level of respect they may not otherwise get. It is also a stealth form of marketing and a way to build brand loyalty. What makes it interesting, is that they get a lot of funding from others, so they get the philantropic and name recognition benefits without having to put up all the cash.
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Processes and procedures that work. They can teach the basics to people and their processes yield reasonable service and their routine level of quality and speed.
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Service. Now if you hate McDonald's, please don't laugh, but the fact is that they have their own systems that make getting food rapid and reasonably accurate. Most McD's today have two drive in windows. The first takes your cash or credit card. The second gives you your order. Brilliant in its simplicity.
Having worked with McDonald's in high school and my early college years, I guarantee you that you don't do a lot of ad libbing or flying by the seat of your pants. You are taught how to do something. You do it. You repeat those processes and procedures daily. If a new product or service is added, you get trained for that, you do it, you repeat it daily.
That is not to say that personality, drive or other factors don't matter, of course they do. I recall being made the store's 'motivational leader' while still a blue hat (do you remember those days, with white hats for trainees, blue for crew and red hats for managers?). It wasn't much longer when I earned my red hat, still as a teen. Looking back, it was a little crazy, making not much more than the minimum wage other earned, while having the responsibility for the store when all the other managers were gone! But at the time, it was just a great experience.
Sorry for the diversion down memory lane…
…the point is that they have systems. They are taught, they are followed. They can integrate people readily and rapidly as a result.
Why do so few independents in our Industry do the same? Why do so few focus on creating a process or procedure for marketing and selling, the same as you would have for a legal installation or doing an application for residency a land lease community?
You can bet the vertically integrated operations do, and those like Centennial Homes on the northern Great Plains states have their processes for success – and profits to match – too. Is it any wonder that those in our industry who have processes and training do better than those who don't have proven systems or wing it day by day?
Every month, we offer free Feature Articles by top writers in areas such as communities, management, sales, general industry, inspiration and more. In the past few months, we have been doing weekly columns on marketing, advertising and sales in the Cutting Edge blog. We also do seminars and workshops for associations and meetings, such as the Dominate Your Local Market or Attracting more Customers with Cash or Good Credit. Such opportunities exist here for one good reason: to support associations and to support professionals and businesses like you!
Speaking of opportunities to learn, network and grow your business, we hope to see you at the 2012 Great Southwest Home Show in Tulsa.
The Great Depression was a far cry worse than what we are experiencing today. There are businesses in and outside of our Industry who are profitable. Some are making record profits. We know that the future of manufactured housing is bright, because the 'stars' of demographics and economics have lined up in our favor (learn more at this link).
We can become the dominant form of housing in the years to come. You can be a part of that brighter future,
but only if and when professionals 'do what it takes' to adapt, plan and execute to advance past the malaise towards the opportunities that exist now and in the years ahead. # #
post by
L. A. “Tony” Kovach, MHM
www.MHProNews.com
www.MHMarketingSalesManagement.com or www.MHMSM.com
Innovation – Information – Inspiration for Industry Professionals
Office – 815-270-0500
latonyk@gmail.com or tony@mhmsm.com
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