The Loyalty Didn’t Come With the Business

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My grandma and grandpa did not have a customer retention strategy for their neighborhood grocery store. They just showed up the same way, for the same people, week after week. That was it for more than 30 years.

What fascinated me was how often the customers came up by name. Not in a business sense. Just in the way you talk about people who were part of your life. The loyalty was mutual.

When the Focus Turns Inward

The businesses we work with have often built something long lasting. Twenty, thirty years of relationships. Customers who stay not because they have to but because they want to. The trust is there.

And then at some point without anyone deciding it, the attention shifts. External communication is the first thing that gets weaker. Response times stretch. The check-in calls that used to happen naturally stop happening because everyone is busy.

Long-term customers are patient. They give the benefit of the doubt because they remember when things were different.

Until they stop remembering and start looking.

Loyalty Doesn’t Transfer

The customers who were loyal to that business were often loyal to a person. The one who called back the same day. Who showed up when something went sideways and handled it without making it complicated. When that person steps back, the relationship does not automatically go with the business. It has to be rebuilt not from scratch, but on purpose. Many businesses assume it carries over.

My grandparents’ store eventually closed. But people in that neighborhood still talk about it. Not because of the prices or the inventory. Because of how they were treated. The loyalty lived in the relationship. The storefront was just where it happened.

When the relationship is the asset, someone has to be tending it. And in a generational transition, that is the work that most often gets skipped.

Poor Customer Experience Lesson

How a business responds when something goes wrong with a customer is one of the clearest windows into how it actually operates.

Is there someone who owns the response? A real timeline? A way to follow up that closes the loop and leaves the customer feeling like a person rather than a problem to be managed?

A bad experience handled well can earn more trust than years of things going smoothly. The customer finds out who you really are when things get hard. Most businesses lose that moment because there is no system around it. The communication rhythm breaks down exactly when it matters most.

Long-time Customer Does Not Mean Forever Customer

A customer who has worked with you for fifteen years and suddenly stops returning calls is rarely going to tell you why. They are already talking to someone else.

The businesses with generational customers are the ones that treat their oldest relationships with the most intention. They check in not because something is wrong but because they want to know before something is wrong.

The customer who has been with you the longest is also the one a competitor is working hardest to reach.

Three Questions to Ask Yourself

  1. When did you last reach out to your top ten customers with no agenda — just to check in?
  2. When something goes wrong, who owns the response and how fast does it actually happen?
  3. Does the next generation of your leadership have real relationships with the next generation of your customers’ leadership?

If any of those is uncomfortable to answer, that is where the work starts.

The Communicate Pillar

The PACT model has a Communicate pillar for a reason. Rhythm and trust — inside the business and outside of it. The Predictable Performance Self-Assessment measures how consistently communication moves through your organization. The three questions above face the other direction.

Both matter. In a business navigating a generational shift, the external relationships are almost always the ones most at risk — and the ones least likely to have a system behind them.

My grandparents never talked about any of this in those terms. And who knows how those relationships would have transferred to the next generation had the store not been sold.

The question worth asking is whether your business has built something that holds that consistency — not because one person carries it, but because it is built into how you operate.

 

Take the Predictable Performance Self-Assessment to see where your Communicate score stands.

Reach out directly if you want to talk through what you can learn from our one-day onsite assessment.

Predictable Performance Self-Assessment – Long Run Business Services

 

About Erin Williams

Erin Williams, RN, is a Partner at Long Run Business Services. She brings more than 20 years of experience leading strategy and transformation work across healthcare and manufacturing to client communications, training, and the operations side of the business.

The Recipe That Outlived the Store

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My dad is the youngest of four boys, and he grew up in his family’s grocery store. He started working there when he was five years old. Nobody sat him down and trained him. He learned the way everyone in that family learned, by being there, stocking shelves and working the counter alongside his brothers and his parents until it was all second nature.

Glasier-Clark was a neighborhood store my grandparents opened in 1947 with a loan from my great-grandpa and no experience in the grocery business. Though what they both possessed was a fierce work ethic. Their management system never lived anywhere but in their heads. They knew what to keep in stock for the regulars, like the woman who lived to be ninety-eight years old and liked to share that the key to her longevity was the two quarts of “cream soda” she purchased from them every few days. They knew the deli recipes by heart. My dad was the one in charge of the deviled eggs, for the case and for the catering orders, and he made them from memory, the same way every time.

That’s how a lot of family businesses run. Nobody really gets trained. You grow up in it. You pick up how things work a little at a time, at the counter and around the dinner table, until the knowledge is simply part of you. It’s a beautiful way to learn, and for the family, it works.

Right up until the knowledge has to leave the family.

I believe there are two moments it becomes evident. The first is the day you bring on someone who isn’t family. They can’t absorb years of context that was never written down anywhere they can find it. So, they struggle, they feel like they’re standing outside something everyone else already understands, and a lot of the time they leave. The family quietly decides that good help is hard to find, when the real issue is that the business was never made teachable.

The second is the day the business changes hands. My grandparents sold the store after thirty years. The building and the shelves went to someone new, but the recipes, and the quiet sense of what each regular came in for, none of that was ever written down. It didn’t transfer. It walked out the door in the heads of the people who knew it.

To this day, my dad is still the one who makes the deviled eggs, now for every family gathering. The recipe outlived the store, because it lived in him. When my siblings and me were little, we would help him peel dozens of eggs and watch him mix up the ingredients. No measuring, he makes them by taste. Try as we might, they never taste as good as when he makes them.

For a family, that’s a gift. For a business, it’s the whole lesson.

Writing down what your family knows isn’t about turning your business into something cold or corporate, or giving up what makes it yours. It’s about making sure what you built can outlast any one person’s memory and can be shared with the people you bring in to help you carry it.

This is the heart of what we call the Train pillar: how a business develops its people and holds onto what it knows. It’s the quietest of the four, and in a family business, it’s often the one that decides whether what you’ve built can grow and be passed on.

You don’t need a binder full of procedures. You can start with one recipe, the one thing you’d hate to lose because only one person knows it by heart. Then do another. Bit by bit, a business full of what we all just know becomes something you can teach, share, and pass on.

Curious where your business stands on this? The Predictable Performance Self-Assessment gives Train its own score, and an honest read on where to start.

What Are You Afraid Of?

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There’s usually a subtle pause before an owner answers my question. Most of the time, they’re giving careful thought to how they want to answer. And sometimes, there’s a little more to it. An honest look under the hood can stir up some apprehension. It’s like finding an unmarked trunk in your attic, that mix of excitement and dread before opening the dusty lid. Will you find money? Or a dead mouse?

I appreciate that hesitation. And it’s exactly the kind of support we’re here to lend.

I’ve come to believe something I hope is reassuring:

Understanding your current state isn’t the scary part. Not knowing is.

The things that quietly wear on a business are usually the ones nobody’s looking at. The workaround everyone’s grown so used to they’ve stopped noticing it. That kind of thing rarely shows up on a P&L, and it’s hard to improve what you haven’t let yourself see.

A lot of owners avoid the look because it can feel like admitting they’ve come up short somewhere. It isn’t. Every business has soft spots, the good ones included. The strongest owners I know aren’t problem-free; they just know where their soft spots are. When we leave those spots unnamed, they don’t go anywhere. They tend to smolder until a harder moment forces them to ignite.

“Current state” just means the truth of how things work right now. Not the version you’re hoping for, and not the worst case running in the back of your mind. Just the reality of it. And once it’s in front of you, it tends to stop being something to dread and becomes a place to start from.

That’s why I built the Predictable Performance Self-Assessment, to give owners a clear view on where to look. It takes about 8–10 minutes and walks through four areas we call PACT: Plan (how you set direction), Act (how the work actually gets done), Communicate (how information moves), and Train (how you develop your people). There’s no grade and no one looking over your shoulder. Just an honest read on where things stand.

What tends to surprise people isn’t that they have gaps. They figured those were there. It’s where the gaps turn up. Someone sure their problem is sales finds out the real issue is that nothing’s written down anywhere. Someone bracing for a hard result learns they’re in better shape than they feared, with just one area that could use some attention. That’s the benefit. Ambiguity becomes a short list of specific things you can do something about.

So, what are you afraid of, really? Go ahead. Open the lid.

Curious where your business stands? Take the Predictable Performance Self-Assessment.

The One Question

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My husband was in a meeting recently when a CPA asked him something I have been thinking about ever since.

He said: “What question should I ask a client to determine if an introduction to Long Run Business Services is appropriate?”

When my husband shared with me later that day, it gave us pause. Because the question itself was exactly right.

It wasn’t…. What does your revenue look like? How many employees do you have? Are you planning to sell?

What is the one question that tells you whether a business is performing the way it should?

Our response. And I want to explain why.

“Are you happy with how consistently your business performs or does it feel like results depend too much on certain people being in the room?”

Measure with Consistency

Most business owners can point to good months. A strong quarter. A stretch when everything clicked.

What separates a high-performing business from one that is working harder than it should is not the peaks. It is what happens between the peaks.

Consistent businesses perform reliably because they have built a system that does not depend on any one person’s presence, memory, or force of will. The planning is clear. The communication is rhythmic. The team knows what good looks like and how to get there without being told every time.

Inconsistent businesses have great people who are working too hard to compensate for a system that is not doing enough of the work.

When I ask an owner whether results depend too much on certain people being in the room and they pause, or they smile, or they say “well, it depends”, we already know what we are going to find.

The Deeper Follow-up Questions

One question is usually enough to crack pandora’s box. But if you want to understand what is going on inside a business, we have found these four questions will tell you almost everything:

  1. Direction: Do your people know what the priorities are this quarter and does that actually guide what they work on daily? Most businesses have goals. Fewer have goals that genuinely shape how people spend their time.
  2. Performance: When something goes wrong, do you fix the root cause or find yourself solving the same problem again six months later? Reactive vs proactive planning is a terrible business decision. These are businesses that have not yet built solid infrastructure.
  3. Future: Are you thinking about what the next chapter looks like? Growth, transition, or something else entirely? Real conversation tends to come out of this question. Owners who are thinking seriously about what comes next need a clear picture of where the business actually stands today. Not where they hope it stands. Where it firmly stands this second.
  4. People: If you stepped back for 30 days, would the business perform the same way? This is the ultimate test of whether a management system exists. Not whether the owner is good. Whether the business can perform without them.

The Question Matters More Than the Answer

Here is what we have learned from asking our clients these questions.

The owners who answer confidently and quickly are rarely the ones who have it figured out. They are the ones who have stopped questioning.

The owners who pause — who think before they answer, who add a qualifier, who say “mostly” or “it depends” or “we’re working on that” — those are the ones who are paying attention. Those are the ones ready for the kind of honest work that actually moves the business forward.

Uncertainty is not a sign of weakness in a business owner. It is a sign of awareness. And awareness is where every good engagement starts.

If something in here landed, the Predictable Performance Self-Assessment is probably worth a look. No sales pitch attached.

Predictable Performance Self-Assessment – Long Run Business Services

Finding the Right Expertise Ahead of a Business Sale

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Dynamic Times for Business Owners

For business owners with companies valued under $100 million, the current market presents an unprecedented volume of business sales and transfers. This surge is largely driven by the ongoing retirement of the boomer generation, creating both opportunities and challenges for sellers and buyers alike.

At Long Run Business Services, we specialize in supporting both buy-side and sell-side operational due diligence. Additionally, we support business owners plan and execute strategies that increase the value of their businesses. This includes identifying and implementing operational improvements, reducing risk, and enhancing overall attractiveness to potential buyers.

Reluctance to Pull in Industry Experts

Often professionals in the business brokerage industry hesitate to partner with consulting firms. Common objections include timing concerns (“it’s too early” or “it’s too late”), difficulty convincing business owners, or a focus solely on buy-side activities. Brokers often don’t need to partner with companies like ours because strong deal flow allows companies to concentrate on their core business without adding complexity.

While deal flow remains strong (thanks to high supply and demand), the question for business owners becomes: how do you make your business stand out among thousands of others? The answer lies in improving cash flow, reducing risk, and implementing professional management systems. These steps not only attract buyers but also help command a premium sale price.

The Difference is in the Details

On the buy-side, consider whether your broker is equipped to dive deep into critical details, such as analyzing your Bill of Materials for margin risk in volatile markets or reviewing equipment data and maintenance records to assess useful life and capacity.

If you’re a business owner looking to maximize cash flow for today and create opportunities for tomorrow, we invite you to have a candid conversation with us. Whatever your timeline, we can help.

Isn’t it always better to work on your schedule rather than someone else’s?

Brokerage timelines prioritize short-term marketing over long-term value creation. Let’s change that.

👉 Reach out today! nwilliams@longrunbusiness.com 

Leading the pack at SouthernX

Progressive Overload: In Business, as in Sport

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Last year, I published a quick blog post titled “Improvement takes Practice.” The premise of this piece is that if leaders seek improvement in their business results, then they’d better ensure they and their team are allocating time toward improvements. However, there is another side to this coin, which is overwhelming teams with improvement demands and activities, without any demonstrated ability to sustain improvements consistently in the past.

As a competitive cyclist and endurance coach, I have learned (sometimes the hard way) that consistency is king. I also know that high performance levels typically require a high level of training load. In less than two weeks, what is arguably the world’s most popular bicycle race on gravel terrain, Unbound 200, will take place in Emporia, Kansas. Over 200 miles of big rocks, little rocks, sand, mud, heat and wind will be the order of the day. Most of the top competitors have just completed their final training blocks, which are averaging 30-40 hours per week of bicycle riding for two to three weeks. However, it is years of training and building up to consistently riding 20+ hours per week that enables the strongest athletes to handle those even bigger weeks in preparation for the big event. Put a new cyclist on a bike for even 8 hours per week, and the result will probably not be good. Overwhelming fatigue, sleep disruptions, soreness and injury are all possible, if not probable. Continue with that kind of “overload” and the average person will experience worsening consequences related to chronic overtraining. In addition to physical symptoms, the motivation to continue will be squashed, and it is likely that person will burn out and never return to training.

In business, we often see leaders getting convicted about improving business results and pouring a ton of activation energy into new initiatives. Meetings are scheduled, Kaizen events are lined up, new measurements are rolled out, and expectations for a quick return on investment abound! Commonly, this surge of activity and new expectations are piled onto employees who are already overwhelmed with daily firefighting and doing their best to process orders using weak or broken systems. Improvements are needed, but push too far past the team’s current capabilities, and the results will be similar to our cycling example: fatigue, burnout, employee turnover and even worse.

Sound familiar? Like quick fix diets and online courses promising to make you an expert in just a few hours, it seems we sometimes fail to appreciate the journey from where we are to where we want to be. One of the most common questions I hear when helping a new client embark on an improvement journey is, “will this be another flavor of the month experience, or will it be different this time?”

As with endurance training, consistency is king, but the key is practicing and establishing routines that ENABLE consistency. Pile on too much too soon, and consistency is shot right in the foot. The concept of progressive overload begins with understanding the current capabilities of the athlete, and then adding just a little bit more than their physiology is accustomed to in order to achieve an adaptive response that makes that athlete stronger. The body also requires sufficient periods of rest to allow the adaptations to take hold. In time, the athlete becomes capable of handling higher workloads, ultimately achieving higher performance.

Guiding businesses to drive change and establish a continuous improvement culture is similar to serving as a coach to endurance athletes. Too little action, and no progress is made. Employees lose confidence and fail to get on board. Too much, too soon, and sustainment is a pipe dream. Burnout sets in and activating future improvement initiatives becomes even more challenging. The business’s current capabilities and challenges must be assessed, and a thoughtful plan developed to begin building consistency AND momentum. At Long Run Business Services, we have a track record of doing just that, as well as guiding execution of the plan to achieve real and lasting improvements. Don’t hesitate to reach out if we can assist in your improvement journey!

Colored letter tiles spelling GOALS.

Questions to Discuss for Improved Goal Setting

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I have a habit of using the Notes app on my iPhone quite regularly. I write down to-do lists, grocery lists, and record the weights I lift at the gym. Sometimes, I even write down goals, usually in the form of a handful of objectives I would like to achieve at some point in the future. More often than not, I write a few goals down and then forget about having written them at all. And then, often years later, I clean up my Notes app and stumble across a list or two of objectives I jotted down. Guess what I find? That in almost every case, I have either achieved the objectives I wrote down, or I am on a path to achieve them. Before the Notes app, I experienced the same with goals sketched out in notebooks or journals. The bottom line is, I believe in the power of writing goals down, and these personal experiences are all the evidence I need.

In business, we are typically more deliberate about when and how we capture goals. Whether part of an employee review process, a team project charter, or a quarterly business review, goals are part and parcel of work for many of us. Most of us have learned to use the SMART goal framework, which can help us effectively state strong goals. If this is new to you, SMART is an acronym which stands for Specific, Measurable, Achievable, Relevant, and Time-Bound. Ensuring your goals meet these criteria makes a great foundation for actually achieving the goal!

Is it that simple, or could there be more to the story? Recently, I had the great fortune to coach a couple of plant leaders for several months. We started with decent goals that fit the SMART framework, but as time went on, I had the feeling we were not accomplishing as much as we could be. The urgent was getting in the way of the important, priorities from leadership were shifting, and staffing shortages were sucking up our precious time! After a bit of reflection, I concluded that I knew what was missing: a more robust dialogue about the goals we set out to achieve.

It’s reasonable that some goals are individual and personal, but the for the majority of goals, it is probably best not to set them in a vacuum. A robust discussion about our goals, what it will take to achieve them, and what could go wrong can result in a more meaningful goal WITH greater chances of success. Going forward, I’ll use many of the same questions for kickstarting a coaching relationship that I would use for a more complex improvement project or business transformation.

I have found the below questions help to formulate a better overall goal AND give us a solid jumpstart on actually achieving the goal. I recommend recording answers to these questions, and then reviewing those answers when you sit down to review progress on the goals. This process enables us to learn more and recover more gracefully when the progress isn’t what we’d desired.

What would you add to this list?

  • What do I want help with?
  • Why is it important to me?
  • Why do it now?
  • What is the impact?
  • What must happen to achieve the goal?
  • Are there any sacred cows standing in our way?
  • How much of my time will this require?
  • Who else will I need to engage?
  • How much of their time will this require?
  • What have we tried to solve this problem in the past?
  • What are some initial steps we can each take to get started?
  • What does the end result look like?
  • What could go wrong? Anything we could do now to prevent that?

Get Real (with the Schedule)!

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Sales are on the rise, backlogs are growing, and additional capacity is needed before late orders start piling up. The team should be able to fulfill all orders on time but is only completing about 75% of the daily schedule on average. More overtime is scheduled, and more promises are made that the overtime will cease as soon as the late orders are cleared up.

Commonly, when businesses are struggling to meet order demand, it is because their plans are not realistic in the first place. Continuing to schedule mandatory overtime is analogous to telling the team that “the beatings will continue until morale improves!” The most crucial step we can take in a situation like this is to reset and provide the team with a schedule that we are confident they CAN make.

When we are not capable of producing at our “set” production rate for an extended period of time, we need to dig in and understand what has changed and where improvements can be made. Increased product complexity, reduced machine efficiency, or a less tenured workforce are just a few of the possibilities.

Releasing a schedule based on the demonstrated, achievable production rate conveys that leadership has realistic expectations and opens the door to identifying genuine issues and potential countermeasures. Sure, the order shortfall will still need to be made up, but even scheduling additional overtime at the achievable rate beats chasing an unachievable rate that inevitably pushes the team into overtime. In fact, often we see an initial increase in production rates as the scrambling to meet an outdated number is reduced.

In one case, I worked with a client whose baseline efficiency was calculated at 47%. The production standards were set in the early-1960’s and we were kicking the project off 50 years later. How could it be that in 50 years, the demonstrated production rate dropped by more than half? It turns out that the CNC machines, which were state of the art when installed, had been poorly maintained and were lucky to produce at half of their design rate. There were not enough welding machines to go around, so some employees were waiting for others. Enhanced safety regulations had impacted workflow on the floor and increased product complexity was resulting in a shortage of certain consumables. And with all of this and more going on, employee morale was at an all-time low.

We based new production targets on the recent, achievable baseline and started soliciting and executing upon improvement ideas. A TPM (Total Productive Maintenance) program was initiated for machines. Investments were made for new welders. We collaborated with employees on a new shop floor layout. Kanban and Vendor Managed Inventory were implemented for consumables. Most importantly, we began celebrating the little wins and rewarding employees for identifying and driving improvements. This is by no means easy work, but it is rewarding work, and it begins with realistic expectations.

Improvement Takes Practice

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As a competitive cyclist and coach, I know that athletes need to spend time training in the areas that they want to improve. Carving time out of a busy schedule can be challenging for athletes training for an event or personal best, but it isn’t uncommon for recreational athletes to spend 6-8 hours per week training to develop their fitness and skills. Elite level athletes – yes, even those with families and full-time jobs – typically spend more than 12 hours per week training. What’s more, the training time per week needs to be consistent week after week to see any improvement at all. The bottom line? Improvement takes practice.

However, when I look inside small- to mid-size companies, it is rare to see any deliberate allocation of time for improvement activities… and it isn’t due to a lack of improvement objectives! New businesses spend time on growth, while established businesses spend time servicing day-to-day orders. In larger, more established businesses, we start to see meetings scheduled for improvement activities and discussions, but rarely will we see a set number or percentage of hours targeted and measured to achieve improvements.

With time targets in focus, imagine how dedicated improvement time can drive waste out of the system and result in even more available time for improvements. The effect is like turbo-charging your business, using the available energy sources to accelerate your results. Countless words have been written about how to make improvement efforts most productive, but isn’t the starting point to dedicate some time in that direction?

What about the business leader who is ready to consider how time is spent within their organization? Typically, we would start with an open and collaborative workshop comprised of a few team members. After setting some definitions for a few categories of activities, we can conduct some simple time-tracking for a short period of time to gain further insight into how employees are spending their time. Even the initial workshop goes a long way toward creating a common language among participants, and often results in a few immediate changes as team members become more self-aware of how they’re spending their time.

If you’re interested in exploring this topic further, and how your team might benefit from its application, don’t hesitate to reach out for further discussion. I always value connecting with local business leaders like you.

Walk The Wastes

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If you have spent any time around Lean Manufacturing, you have likely learned about the 7 Wastes, and quite possibly have heard about Gemba walks too. These are two of the most effective concepts available to leaders in the realm of continuous improvement, and in this post, I will share how to apply these concepts in tandem to jumpstart improvements in your business.

First, some definitions:

The 7 Wastes are just that, 7 categories of non-value-added activities that can be found in ANY business. The seven categories of waste are Overproduction, Transportation, Inventory, Motion, Correcting Defects, Overprocessing, and Waiting. Future posts will dig deeper into defining these categories, but for the purposes of this post we need to accept that every business – even world class operations – contains many wasteful activities.

Gemba walks are a type of management walk on the shop floor aimed at learning and understanding what is really happening in the value stream. Gemba means “the real place” in Japanese, and these walks are essentially a refined version of “management by walking around.” Each Gemba walk should revolve around a particular theme, should be focused on process not people, and should prioritize findings over fixes. These walks enable leaders to discover and understand the daily struggles that employees face in their work and uncover information that could never be found in the boardroom or reading financial reports in the office.

As with the 7 Wastes, future posts on Gemba walks will delve deeper into the process, but the focus of this post is on the effectiveness of combining these two concepts. The 7 Wastes can become part of a common language within organizations interested in driving improvement, but sometimes getting started is tricky. There are many courses – free and paid – that offer to teach individuals about the 7 Wastes, and many do an excellent job of introducing the concept, but there is no replacement for practicing identifying real wastes in the workplace as a means of solidifying the learning. Incorporating each of the wastes into Gemba walk themes can be an excellent way to initiate both concepts in your business.

I have implemented this suggestion recently with two separate clients. Following some introductory training on the wastes, weekly Gemba walks were scheduled, with each week’s theme focused on identifying examples of a single waste in the workplace. Week one focuses on Overproduction, week two focuses on Transportation, and so forth. These clients are finding that the 7 Wastes serve as a perfect theme for practicing and refining Gemba walks, and that the Gemba walk approach is enhancing and leveraging the introductory training on the 7 Wastes.

Curious about where to start looking? Ask employees about the struggles they face in performing their daily work, and you will be well on your way to uncovering many examples of waste. Soon, the team will start to connect how the wastes impact one another and we can begin to think about tools and processes to reduce or eliminate waste.

As always, I love to read and respond comments or questions about this topic. In my practice, I regularly teach 7 Wastes and coach leaders on establishing and conducting effective Gemba walks, and welcome a discussion about the application of these concepts in your business.