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How to Reduce COVID-19 Related Stress of Your Workforce

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(This article was written by William Arruda and appeared on forbes.com.)

The coronavirus is making your people stressed.

The 24/7 news cycle delivers the latest developments in the pandemic, the stock market rollercoaster and a slew of other scary realities.

According to the nonprofit mental health and wellness website HelpGuide.org, “Stress is your body’s way of responding to any kind of demand or threat. When you sense danger—whether it’s real or imagined—the body’s defenses kick into high gear in a rapid, automatic process known as the ‘stress response.’”

Your workplace team is dealing with a lot of stressful situations and questions: How do we handle having our kids out of school? How can I best care for my ailing parents? Should I leave home to go to the grocery store? How do I work from home without the comfortable work environment I’m used to? All this impacts their well-being and their performance at work.

Ironically, when your company takes action to help keep your people safe and happy, this may also be contributing to the team’s stress level because a lot of what you’re doing falls under the category of change. People who used to go to the office and worked alongside their colleagues are now having to get used to working from home. Policies to prevent exposing your people to potential threats, like eliminating travel and canceling all in-person meetings, may keep them safer physically but can disrupt their sense of stability. To help your people achieve a level of calm within the chaos, here’s what to provide:

Control. One of the most challenging parts of this crisis is feeling out of control. To reduce this, make all aspects of work feel clear and controllable. That means over communicating with your people so they have the answers they need. Make it clear and easy for them where to find the information and support they need—that includes access to mental health support through EAP programs and access to others who can help them.

Training. Competent professionals who are not used to working remotely need to learn best practices for being productive and happy at work without being in the office. Rather than making them fend for themselves, give them proven tips for remote work. This is where L&D executives can take the lead to provide clear, practical training on how to be successful and happy as a WFH employee. Provide videos, checklists and other guidance that will help them make their WFH experiment a success.

Consistency. Establishing routines is essential, especially for those who are now working from home and have left their normal procedures behind in their cubicle. It’s least stressful when your people can mirror those routines that were part of their workday. If you had an all-hands meeting every Monday at 9 a.m., keep it up, changing only the fact that it will take place via video instead of in the conference room. Ask this question: What can be easily replicated?

Stress-Reduction Resources. While going to the gym might normally be a stress reducer, that’s not an option in the new age of physical distancing. Identify other resources that can help your people amp up their zen. The CalmCast stress reduction app, for example, can be customized to augment the app’s stress-reducing resources with your company’s messages for your staff. Identify resources that your staff can access anytime, anywhere.

Camaraderie. One of the biggest changes that happens when your people leave the office behind because of WFH policies is that they lose the sense of belonging and connection. Encourage your people to check in on each other. Have them schedule regular Zoom or Skype calls, especially if they have strong friendships at work. We know from Gallup research that having a best friend at work is one of the best predictors of employee engagement.

An Ear. Make sure your people feel heard. Ask them what they need and how the organization can help them be more successful. Get answers to their most stress-inducing questions and make those answers visible. Create a list of the top things they’re concerned about and address them. They need to know that someone is in charge and has their back.

Easy Technology. Although a lot of the responsibility for creating a stress-free work-from-home environment is on them, there are things you can do to reduce the friction. That means having the technology, platforms and training (if necessary) in place to ease the transition. Firewalls and other security safeguards can get in the way of access and add to the stress. IT leaders can step up here by finding ways to maintain company data security while making it straightforward for employees to access the systems and data they need to effectively do their work.

When you’re dealing with tumultuous events like the coronavirus pandemic, stress is unavoidable and enduring. When you thoughtfully plan and put systems, tools, processes, resources and support in place specifically designed to mitigate stress, your people will be more engaged and productive, and all of you will be significantly less frazzled.

On World Hunger Day, Herbalife Expands Partnership with The Hunger Project

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Herbalife Nutrition, along with the Herbalife Nutrition Foundation, announced an additional $100,000 pledge to expand its partnership with The Hunger Project (THP).

The partnership—under its Nutrition for Zero Hunger initiative—will be extended for an additional three years to fund the organization’s women-centered, community-led development and educational programs, investing in rural communities around the world affected by food insecurity and malnutrition.

“In honor of #WorldHungerDay, we are happy to provide additional support to The Hunger Project and collaborate with them on eliminating hunger,” said Alan Hoffman, executive vice president, Corporate Affairs, Herbalife Nutrition.

According to the United Nations’ Food and Agriculture Organization, 821 million people live with chronic hunger worldwide. May 28 is World Hunger Day, an annual day of awareness created by and hosted by THP as a time to highlight the critical need for sustainable solutions to hunger and poverty and to inspire everyone to be a part of the solution. Hunger is significantly worse in countries with agricultural systems that are highly sensitive to rainfall and temperature variability and severe drought, and where the livelihood of a high proportion of the population depends on local farming.

In the last year, Nutrition for Zero Hunger was able to help fund the work of The Hunger Project, which impacts more than 16 million people through water, sanitation and hygiene programs, food insecurity workshops and women’s leadership trainings in more than 13,000 communities around the world.

“Studies have shown that when women are supported and empowered, all of society benefits,” said Jenna Recuber, global vice president, The Hunger Project. “We’re thankful for partners like Herbalife Nutrition, whose support empowers women and men to be agents of their own development. Partnerships like this are critical to creating sustainable change in rural communities that are ending their own hunger.”

According to the FAO, if women farmers had the same access to resources as men, the number of hungry people in the world could be reduced by up to 150 million. Earlier this month, the company celebrated Women’s Health Week by developing a “Women and Hunger” campaign, creating a series of graphics, animations and blog content to raise awareness and generate discussion on how gender equity plays a role in global problems like hunger and food insecurity.

 

Mastering Order Fulfillment in Direct Sales

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Fulfillment companies unfamiliar with direct selling businesses may struggle with some of the unique requirements to serve this market.  

Following are 5 keys to success in fulfillment operations for direct sellers, and what to look for in a fulfillment partner.

  1. Scalable Infrastructure

As a direct seller, you’re one good Instagram post from a big demand spike and one product launch from exponential growth.

Having a virtual sales organization makes it possible for you to rapidly convert market demand into profit. It’s critical that your fulfillment partner can keep up. Look for:

  • Nationwide locations. As you grow, you’ll want the ability to add locations to reduce transportation costs and delivery times.
  • Engineering and design expertise. To minimize your cost-per-order, your warehouse layout, processes and automation must adapt to changing order profiles and increasing volumes.
  • Full-featured warehouse management system (WMS). Basic WMS systems can handle basic operations. But what happens if you need your system to integrate with conveyor systems and other automation?
  • Real-world examples. It’s one thing for a provider to say, “We can handle it;” it’s another to see proof of that provider’s ability to scale its operations.

  1. Flexibility to Handle Unpredictable Volumes

In direct selling, there is far greater variability in order volumes, day to day. BOGOs and month-end promotions can potentially double volumes. That requires a fulfillment partner that can effortlessly flex its operations to absorb this added volume and then quickly ratchet down space and labor. In this way, fulfillment costs parallel your revenue stream.

Key requirements include:

  • A multi-client warehouse where staff are cross-trained on the requirements of multiple accounts
  • Flexible contracts where you pay only for the space and labor you use in a given month
  • A knowledgeable management team that can collaboratively forecast based on a promotion schedule, history and experience with similar organizations.

  1. Flexible systems

Systems that can’t adapt to your requirements can bring your business to its knees. Proper vetting of providers in this area is critical.

First, you’ll want a high level of confidence that orders will flow seamlessly between your direct selling platform and your fulfillment partner’s WMS. Look for partners that serve companies using top commerce platforms like Exigo, Magento and InfoTrax.

It’s critical, too, that your partner’s system can meet some of the unique order processing requirements of direct sellers. For instance, many individual orders may go through party planners, who then arrange the final delivery. This requires a system that receives orders using a “parent-child” protocol, where the party planner is the parent. The system creates a pack slip for each individual order and these are added to a master case to ship to the planner.

  1. Packaging Excellence for Brand Consistency

Customers of direct selling companies are not buying a commodity from the lowest cost supplier. They are making a lifestyle choice. As such, the relationship is more with the brand than the product.

That’s why direct sellers want a high-quality presentation at delivery, with a package that has their logo (not Amazon’s!). They want the paper inside to be folded just so, and the product to be positioned a certain way in a box that may contain a personal note to the buyer.

Your fulfillment partner must be capable of delivering this level of packaging customization, and they must do it as part of a high-volume, rapid-turn warehouse operation.

  1. Experience in the Direct Selling Industry

Direct selling is an industry of entrepreneurs.

For these companies, it’s not about beating the competition as much as achieving personal success. So there is liberal sharing of information among companies – on software systems, on sales strategies and, yes, even on fulfillment operations.

Direct sellers benefit from working with fulfillment partners that have the experience in the industry to bring best practices to the table.

Does Your Fulfillment Partner Have What it Takes?

For direct selling companies, complex inventory management, unexpected volume spikes, and custom packaging requirements are business-as-usual challenges that must be managed.

Make sure your fulfillment provider has what it takes.

For more information, visit Amware Fulfillment.

Tastefully Simple Celebrating Silver Anniversary

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Tastefully Simple, Inc. is celebrating a major milestone this summer with its 25th birthday.

Founder and CEO Jill Blashack-Strahan started the business in 1995 in a shed with no running water in rural Minnesota, packing orders on a pool table. Twenty-five years later, the multi-million-dollar business includes over 60 proprietary food products, meal kits and home entertaining solutions, thousands of sales consultants nationwide and 75 employees working from its Alexandria, Minnesota headquarters.

“Tastefully Simple was born out of the idea that people are looking for exceptional, convenient food, which is still relevant today,” said Blashack-Strahan. “The commitment of our team, the entrepreneurial consultants across the country and the consistent appeal of our simple-to-prepare food products and meal planning tools continue to drive our success.”

To celebrate the occasion, Tastefully Simple has brought back top-requested products; will host the first-ever online national conference for consultants in late July; launch a new, enhanced website in August; and offer various client promotions throughout the year.

“I’ve been impressed with Tastefully Simple for many years given its ongoing evolution and the passion the team has for the business,” said Joe Mariano, president of the Direct Selling Association. “Over the years, Jill and her team have reinvigorated the business from a traditional direct sales approach to a nationally recognized food and home entertainment solutions business with added direct-to-consumer sale opportunities and legions of loyal followers.”

Mary Kay Unveils Groundbreaking Research During Skin of Color Society Virtual Program

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Mary Kay Inc. continued its ongoing support of the beauty and scientific communities by presenting findings during the 2020 Skin of Color Society Symposium Virtual Program.

Dr. Cristi Gomez, director of Product Safety & Environmental Toxicology, revealed new research on the science behind LumiVie, an intensive serum by Mary Kay that brightens, energizes and moisturizes skin. As urbanization increases globally, the effects of pollution on skin is a growing concern. Chronic exposure to air pollution has been correlated with visible aging—in particular, the development of pigment spots. Researchers at Mary Kay developed a skincare formulation containing botanical extracts and vitamins B3 and C that is both suitable for sensitive skin and effective at addressing skin pigment concerns. They also observed improvements in skin tone evenness, luminosity and texture.

“Our team is dedicated to conducting research and developing innovative solutions to address common skin issues that impact women and their self-confidence,” said Dr. Lucy Gildea, chief scientific officer at Mary Kay. “In 2020, Mary Kay Research & Development will continue to share the latest groundbreaking discoveries with the scientific community at large.”

The Skin of Color Society Symposium Virtual Program is just the latest event Mary Kay has participated in with scientific and academic communities that reinforce the brand’s longstanding commitment to advancing skin health research and development. Every year, Mary Kay conducts hundreds of thousands of scientific tests on products and ingredients to ensure the highest standards of safety, quality and performance. Mary Kay holds more than 1,500 patents for products, technologies and packaging designs in its global portfolio. In 2018, the company announced the opening of a more than $100 million state-of-the-art manufacturing and R&D facility in Lewisville, Texas.

 

NBA Hall of Famer Earl Monroe Joins Kannaway Sports Team

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Medical Marijuana, Inc. announced  that NBA Hall of Famer Earl Monroe has joined its subsidiary Kannaway’s Sports Team.

Monroe, who played 13 seasons in the NBA, will help to spread awareness on the benefits of cannabidiol (CBD) for athletes, former athletes and those looking to lead a healthy, active lifestyle.

“What an honor that Earl Monroe is using our products,” said Kannaway CEO Blake Schroeder. “A true legend in his own right, we could not be prouder and are very happy that our products have made a positive difference for Earl.”

Monroe spent four years with the Baltimore Bullets and nine years with the New York Knicks. He was inducted into the Naismith Memorial Basketball Hall of Fame in 1990. He has received many community honors, including the Most Outstanding Model for American Youth Award, Harlem Professionals Inspirational Award, YMCA Citizenship Award and Big Apple Sportsman of the Year Award. He also won a Peabody Award for producing the documentary “Black Magic” as well as the 20-hour documentary film series “Basketball, A Love Story” for ESPN.

“I’ve been using Kannaway’s products for about a year now and I can notice that I feel overall less achy and better than before I started taking CBD products,” said Monroe. “If people are afraid of taking CBD I’d tell them to just start off slow and see what works for them.”

 

Natura &Co Publishes First Annual Report with Avon

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Natura &Co Holding S.A. has published its 2019 Annual Report, reporting its financial and operational data regarding the fiscal year ended on December 31, 2019.

The report was also filed with the U.S. Securities and Exchange Commission on May 6, 2020.

The Form 20-F is available in English on the SEC’s website, on the Brazilian Securities Exchange Commission’s website and on the Natura &Co’s website). The translated version into Portuguese of the Form 20-F will be filed shortly with the Brazilian Securities Exchange Commission and made available on the company’s website.

The company’s shareholders may request copies of the Form 20-F in the English version, at no cost, directly to Natura &Co’s Investors Relations Office, via email (ri@natura.net).

Young Living Honored for Corporate Social Responsibility Program

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Young Living was named the winner of a Silver Stevie® Award for the Corporate Social Responsibility Program of the Year by the American Business Awards®.

Young Living was recognized for its excellence in leading the standard in sustainability, conservation, philanthropy and promoting overall health and well-being. The company has made industry-leading efforts across the board to provide support, especially as the world faces a crisis.

Young Living’s CSR efforts included:

  • Reducing waste to 1% at one of Young Living’s largest warehouses in just eight months
  • Implementing a new water recycling program at one of the Utah-based farms, saving close to 260 million gallons of water per year
  • Implementing the Green Team, a department focused not only on leading the company’s green initiatives, but also on supporting efforts in the community
  • Donating a conservation easement covering almost 19 square miles to The Nature Conservancy’s Utah chapter, aiding the crucial ecological role in supporting native wildlife

“We take our leadership in CSR efforts very seriously at Young Living and I believe this recognition is a testament to our unwavering commitment to protecting our planet,” said Jared Turner, president and COO of Young Living. “I am proud of our team’s long record of giving back to create a healthier world for all of us to live in. The call for help is even greater during these unprecedented times, and we continue to leverage our innovative spirit to address the growing needs of today.”

Young Living has made significant efforts to combat the COVID-19 pandemic to help their employees, communities and the environment. Most recently, the company made the decision to extend remote work for employees at their headquarters through at least the end of the year. The company has found that by allowing 95 percent of the global headquarters’ workforce to continue working from home, they will eliminate 20,175 pounds of carbon emissions per day. Extending working from home through the end of the year, they could potentially eliminate over 3 million pounds of carbon emissions.

The American Business Awards are the U.S.A.’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations—public and private, for-profit and non-profit, large and small.

Tupperware Commences Cash Tender Offer of Outstanding 4.750% Senior Notes

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Tupperware Brands Corporation announced the commencement of an offer to purchase for cash up to $175 million aggregate principal amount of its outstanding 4.750% Senior Notes due 2021.

Approximately $600 million aggregate principal amount of Notes is currently outstanding. The Tender Offer is being made on the terms and subject to the conditions set forth in the offer to purchase, dated May 26, 2020.

“Strengthening our balance sheet is a critical objective for Tupperware and a top priority of the management team,” said Sandra Harris, chief financial officer of Tupperware. “In recent months we have taken swift actions to accelerate cost savings and have increased our turnaround plan commitments in response to COVID-19 and in an effort to maintain compliance with our debt covenants from our recently amended credit agreement.  We continue to work proactively with various financial sources and advisors to address our liquidity and cash flow needs ahead of the June 2021 Senior Notes maturity. The tender offer we are announcing is our first important action in this regard.”

The Tender Offer will expire at 11:59 p.m., New York City time, on June 22, 2020, unless extended or earlier terminated as described in the Offer to Purchase.

The Company reserves the option to accept for payment some or all of the Notes that are validly tendered and not validly withdrawn at or prior to the Early Tender Time on a date promptly after the Early Tender Time (the “Early Acceptance Date”). Holders whose Notes are accepted by the Company for purchase pursuant to the Tender Offer, will also be eligible to receive accrued and unpaid interest on their Notes accepted for purchase, up to, but excluding, the date of payment of the applicable consideration.

For more information on Tupperware’s Tender Offer, click here.

 

PrimeMyBody Donates $275,000 in Skincare Products to Frontline Healthcare Workers

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PrimeMyBody is giving back to frontline healthcare providers working with those directly affected by COVID-19.

Through a partnership with Donate Beauty, PrimeMyBody has donated $275,000 worth of hemp-based skincare products to frontline healthcare professionals working at hospitals in Texas, Louisiana and Kentucky.

According to the company, masks and protective facial gear needed by frontline healthcare workers and their patients are causing skin issues when worn for extended periods of time. Trapped heat, humidity, bacteria and the constant contact with abrasive materials are causing rashes, pimples, skin irritations and visible trauma. Long-term glove use and repeated hand washing are leaving healthcare workers with dry, cracked skin and, in some cases, bleeding.

“I’m proud to be donating these skincare products to those that are on the frontlines and hope that they provide even a small sense of normalcy for these amazing warriors,” said PrimeMyBody CEO Paul Rogers.

Hospitals receiving the PrimeMyBody products are:

  • St. David’s Medical – McDade, TX
  • University Health System – San Antonio, TX
  • UT Houston – Department of Pediatrics – Houston, TX
  • Medical City Children’s – McKinney, TX
  • Pikeville Medical Center – Pikeville, KY
  • Medical City Alliance – Saginaw, TX
  • UMC Lubbock – Lubbock, TX
  • Memorial Hermann Hospital, Texas Medical Center – Houston, TX
  • Women’s Hospital Texas – Stafford, TX
  • Medical Center Hospital Emergency Department – Odessa, TX
  • Ochsner – New Orleans, LA
  • Women’s Hospital Texas – Houston, TX

“On behalf of the nurses, doctors and techs of SDMC ER, I’d like to thank PrimeMyBody for their kindness and generosity,” said Samantha Wright of St. David’s Medical Center.  “It has changed our drab ‘mask skin’ to fresh and glowy skin.”

Systems Make Success More Predictable

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How do you overcome the requirement of having to rely on part-time people? You create simple systems that anyone can follow.

Most of us like to hear and want to believe that people are the most important asset of a company. It seems like I was taught in my very first business class that good people are the key to success in business. We hear experts like management consultant James Kerr say, “The people in your company will ultimately determine the success or failure of your business,”[1] and we begin nodding our head in agreement.

This fact was drilled so deeply into my management mind that it came as a jaw-dropping, head-scratching shock to learn that McDonald’s was founded based on the McDonalds brother’s virtual surrender to their belief that they wouldn’t be able to consistently hire good people.

The Birth of McDonald’s System

According to Michael Gerber’s account of the founding of McDonald’s in his book The E-Myth Revisited, Richard and Maurice McDonald realized that they could not attract excellent workers to help them in their restaurant. So they closed down their first restaurant and started over. This time they redesigned their operations to allow below-average employees to produce consistently high-quality products. Ray Kroc eventually discovered the brilliance of that philosophy, and the golden arches have become one of the most recognizable brands in the world.

The idea of creating systems that others could duplicate to deliver a consistently high-quality product gave birth to the franchise industry. That industry, built on the effective use of systems, has grown to account for approximately 3% of the U.S. economy, producing an impressive estimated annual output of $787.5 billion (in 2019) in the U.S. alone. The success of franchising is even more noteworthy when it is compared to the $35.4 billion in direct selling output reported for 2019.

Franchisers have learned that you can scale with great systems faster than you can scale with great people.

There are many variables that account for the significantly higher output of franchising, but one of the key variables is the industry’s focus on using systems to make success in their business predictable. Franchise businesses use systems for almost everything they do. Systems are deployed to create a perfect Big Mac and to ensure marvelous marketing and to assure accurate accounting. Franchise owners and their independent franchise entrepreneurs are equally committed to producing and perfecting systems that are good enough to make even teenagers successful. They’ve learned that perfect systems can make below-average people extraordinarily successful.

Franchisers know that you can plug anyone into a great system, and they will succeed. Because great people are hard to find and harder to afford, franchisers have learned that you can scale with great systems faster than you can scale with great people.

Focus on Products… and Great Systems

Too many direct selling companies focus on great products, excellent compensation systems, and eye-popping marketing and neglect the difficult work of making their customer acquisition system something that is simple enough to ensure the success of below-average distributors. Don’t take your eye off my point by assuming I’m encouraging you to ignore great people or not even aspire to have great people. That is not the point. The point is that you need systems that great people can leverage and scale their success and that below-average people can also use to run a profitable business.

I think you will agree that even amazing people have a tough time sustaining extraordinary results when they are not able to focus on just one thing. How do you overcome the requirement of having to rely on part-time people? You create simple systems that anyone can follow.

If there is any industry or channel that needs great systems, it is direct selling. Why? Because they encourage new distributors to start part-time while they are focusing full-time on another job and often living a full life outside of work.

Remember that during periods of growth, a majority of the distributors that belong to a company are likely relatively new. These new distributors are at the peak of their excitement but have no skills and no experience to assure success. The key to overcoming this paradox is the use of a system and/or tools that reduce the need for significant training or skills. Great tools allow a brand-new distributor to produce as though they were an expert with years of experience.

A 30-Year Journey

I began my career in direct selling in 1990 as a young executive for Melaleuca, Inc.  Since that start, I’ve had the opportunity to serve as a senior executive for six companies, to consult for several more and to study dozens of successes and failures.  However, it took me nearly thirty years to discover the eight systems outline in my most recent book Systems Scale: Eight System That Ignite Growth.

I actually learned the power of systems as we grew Beachbody’s direct selling business by 10x in just three years and then to nearly a billion dollars in the next three years. Despite the success we had employing systems at Beachbody, I made the mistake of thinking that a single system was sufficient—it was certainly sufficient for those years of hypergrowth. I now realize that assumption was a limiting mistake.

I believe that every great success in direct selling can be traced to the use of a simple system

I believe that every great success in direct selling can be traced to the use of a simple system. Some systems are based on a short-term truth— “we are growing like crazy”: others become worn out and the field becomes fatigued by their constant use. Systems have different life cycles, and sales results tend to follow those life cycles, but the thoughtful student of direct selling history will be able to attribute systems to success.

In a phone call with the CEO of a struggling direct selling company, I asked her what the company’s customer acquisition system was during the company’s peak growth. “That’s the problem,” she said. “We don’t have a system and never have had a system!”

I knew this company had experienced significant growth, and I now know that growth doesn’t happen without a system. I didn’t take the time that afternoon to convince this CEO of that fact that her company had once grown with the help of a system. However, I do hope to convince you in this book that your company has or should have eight systems, and they shouldn’t be a secret to you or to any member of your staff.

Companies Creating Success with Systems

Here are just a few examples of companies who are seeing success today because of excellent systems they have in place for their field:

It Works!™  –  became one of the fastest-growing companies in direct selling when it used “Wrap Parties” to introduce customers to its hero wrap product.  However, when sales slowed, the company pivoted to health and wellness products and discovered a new hero product, a fat-burning coffee brew. The company introduced it with the support of a simple sampling pack and an innovative APP that makes sending samples and following up super simple. This APP driven sampling pack was such a great system that it even includes the words distributors need to start a conversation: “does your coffee make you skinny?”

Is it any wonder that It Works!™ began to see double-digit growth again after it introduced their new customer acquisition system?

MONAT Global’s “Meet MONAT”— “Join us for a meetup at (wine bar, bistro). If you have been looking for a great hair care line or opportunity, then join me!”

Total Life Changes — Chief Operating Officer John Licari described the company’s system for new distributor success in a webinar aired by SUCCESS Partners. Licari described their system in three steps:

  • Send Out Ten Samples
  • Find Five Customers
  • Find Two Customers to Join You as a Distributor

Here are the eight systems I’ve come to believe are essential for all direct sellers:

The Eight Systems That Ignite Growth:
1.     Customer Acquisition

2.     Distributor Upgrade/Acquisition

3.     New Distributor Training System

4.     Distributor Advancement System

5.     Convention Attendance System

6.     Communications System

7.     Leadership Development & Training

8.     Recognition System

While I’ve come to believe there is great value in understanding and methodically implementing all of these systems, it is my experience that growth can take place by effectively focusing on the first one: customer acquisition. In fact, I believe that one of the major issues legacy companies face today is that they have grown by focusing first on acquiring distributors.

While they know they need to become a product-first company, they haven’t taken the time to reinvent their systems and to replace their distributor acquisition system with a customer acquisition system.

[1] https://www.inc.com/james-kerr/your-people-are-your-most-important-asset.html

Systems Make Success Predictable

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How do you overcome the requirement of having to rely on part-time people? You create simple systems that anyone can follow.

Most of us like to hear and want to believe that people are the most important asset of a company. It seems like I was taught in my very first business class that good people are the key to success in business. We hear experts like management consultant James Kerr say, “The people in your company will ultimately determine the success or failure of your business,”[1] and we begin nodding our head in agreement.

This fact was drilled so deeply into my management mind that it came as a jaw-dropping, head-scratching shock to learn that McDonald’s was founded based on the McDonalds brother’s virtual surrender to their belief that they wouldn’t be able to consistently hire good people.

Franchisers have learned that you can scale with great systems faster than you can scale with great people.

The Birth of McDonald’s System

According to Michael Gerber’s account of the founding of McDonald’s in his book The E-Myth Revisited, Richard and Maurice McDonald realized that they could not attract excellent workers to help them in their restaurant. So they closed down their first restaurant and started over. This time they redesigned their operations to allow below-average employees to produce consistently high-quality products. Ray Kroc eventually discovered the brilliance of that philosophy, and the golden arches have become one of the most recognizable brands in the world.

The idea of creating systems that others could duplicate to deliver a consistently high-quality product gave birth to the franchise industry. That industry, built on the effective use of systems, has grown to account for approximately 3% of the U.S. economy, producing an impressive estimated annual output of $787.5 billion (in 2019) in the U.S. alone. The success of franchising is even more noteworthy when it is compared to the $35.4 billion in direct selling output reported for 2019.

If there is any industry or channel that needs great systems, it is direct selling. Why? Because they encourage new distributors to start part-time while they are focusing full-time on another job and often living a full life outside of work.

There are many variables that account for the significantly higher output of franchising, but one of the key variables is the industry’s focus on using systems to make success in their business predictable. Franchise businesses use systems for almost everything they do. Systems are deployed to create a perfect Big Mac and to ensure marvelous marketing and to assure accurate accounting. Franchise owners and their independent franchise entrepreneurs are equally committed to producing and perfecting systems that are good enough to make even teenagers successful. They’ve learned that perfect systems can make below-average people extraordinarily successful.

Franchisers know that you can plug anyone into a great system, and they will succeed. Because great people are hard to find and harder to afford, franchisers have learned that you can scale with great systems faster than you can scale with great people.

Focus on Products… and Great Systems

Too many direct selling companies focus on great products, excellent compensation systems, and eye-popping marketing and neglect the difficult work of making their customer acquisition system something that is simple enough to ensure the success of below-average distributors. Don’t take your eye off my point by assuming I’m encouraging you to ignore great people or not even aspire to have great people. That is not the point. The point is that you need systems that great people can leverage and scale their success and that below-average people can also use to run a profitable business.

I think you will agree that even amazing people have a tough time sustaining extraordinary results when they are not able to focus on just one thing. How do you overcome the requirement of having to rely on part-time people? You create simple systems that anyone can follow.

Remember that during periods of growth, a majority of the distributors that belong to a company are likely relatively new. These new distributors are at the peak of their excitement but have no skills and no experience to assure success. The key to overcoming this paradox is the use of a system and/or tools that reduce the need for significant training or skills. Great tools allow a brand-new distributor to produce as though they were an expert with years of experience.

A 30-Year Journey

I began my career in direct selling in 1990 as a young executive for Melaleuca, Inc.  Since that start, I’ve had the opportunity to serve as a senior executive for six companies, to consult for several more and to study dozens of successes and failures.  However, it took me nearly thirty years to discover the eight systems outline in my most recent book Systems Scale: Eight System That Ignite Growth.

I believe that every great success in direct selling can be traced to the use of a simple system

I actually learned the power of systems as we grew Beachbody’s direct selling business by 10x in just three years and then to nearly a billion dollars in the next three years. Despite the success we had employing systems at Beachbody, I made the mistake of thinking that a single system was sufficient—it was certainly sufficient for those years of hypergrowth. I now realize that assumption was a limiting mistake.

I believe that every great success in direct selling can be traced to the use of a simple system. Some systems are based on a short-term truth— “we are growing like crazy”: others become worn out and the field becomes fatigued by their constant use. Systems have different life cycles, and sales results tend to follow those life cycles, but the thoughtful student of direct selling history will be able to attribute systems to success.

In a phone call with the CEO of a struggling direct selling company, I asked her what the company’s customer acquisition system was during the company’s peak growth. “That’s the problem,” she said. “We don’t have a system and never have had a system!”

I knew this company had experienced significant growth, and I now know that growth doesn’t happen without a system. I didn’t take the time that afternoon to convince this CEO of that fact that her company had once grown with the help of a system. However, I do hope to convince you in this book that your company has or should have eight systems, and they shouldn’t be a secret to you or to any member of your staff.

Companies Creating Success with Systems

Here are just a few examples of companies who are seeing success today because of excellent systems they have in place for their field:

It Works!™  –  became one of the fastest-growing companies in direct selling when it used “Wrap Parties” to introduce customers to its hero wrap product.  However, when sales slowed, the company pivoted to health and wellness products and discovered a new hero product, a fat-burning coffee brew. The company introduced it with the support of a simple sampling pack and an innovative APP that makes sending samples and following up super simple. This APP driven sampling pack was such a great system that it even includes the words distributors need to start a conversation: “does your coffee make you skinny?”

Is it any wonder that It Works!™ began to see double-digit growth again after it introduced their new customer acquisition system?

MONAT Global’s “Meet MONAT”— “Join us for a meetup at (wine bar, bistro). If you have been looking for a great hair care line or opportunity, then join me!”

Total Life Changes — Chief Operating Officer John Licari described the company’s system for new distributor success in a webinar aired by SUCCESS Partners. Licari described their system in three steps:

  • Send Out Ten Samples
  • Find Five Customers
  • Find Two Customers to Join You as a Distributor

Here are the eight systems I’ve come to believe are essential for all direct sellers:

The Eight Systems That Ignite Growth:

  1. Customer Acquisition
  2. Distributor Upgrade/Acquisition
  3. New Distributor Training System
  4. Distributor Advancement System
  5. Convention Attendance System
  6. Communications System
  7. Leadership Development & Training
  8. Recognition System

While I’ve come to believe there is great value in understanding and methodically implementing all of these systems, it is my experience that growth can take place by effectively focusing on the first one: customer acquisition. In fact, I believe that one of the major issues legacy companies face today is that they have grown by focusing first on acquiring distributors.

While they know they need to become a product-first company, they haven’t taken the time to reinvent their systems and to replace their distributor acquisition system with a customer acquisition system.

[1] https://www.inc.com/james-kerr/your-people-are-your-most-important-asset.html