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Glenn Mattson
Welcome everyone. We're back at Season Five, Episode Seven, taking a look at the Rainmaker. Last time, we talked about how the Rainmaker had that charismatic type of personality. They had the ability to understand that the harder they worked, the more money they could actually start to make. They also began to understand the growth mindset, and we talked about that last time in some detail. They understood that they were going to take some big risks, and they understood that there were going to be times when they were going to fail. They understood that there are situations where individuals are risking that there's a possibility that it's not going to work out, but there's also a great, great situation where they can learn from it.
Glenn Mattson
So they start to learn how to bet on themselves. The more they bet on themselves honestly, the more they start to learn how to win. So, the Rainmaker is really that unique individual that knows they can sell, they know they can produce some good biz. They really have that capacity and mindset that says, hey, I can be actually more and make more money and be bigger than I thought I could be. So rainmakers really, really, really enjoy that phase of the entrepreneurial five stages.
Glenn Mattson
So today, when we start to look at it, there are some patterns and some patterns that really make a Rainmaker stay in the Rainmaker phase and patterns of what they need to do to get to the next level. So today we're going to be talking about staff. Staff is one of the four roadblocks and or guiding principles that you need to have the capacity to manage to become a better Rainmaker, but it's also what you need to have in place to get out of the Rainmaker phase and into the CEO phase. So we're going to take the journey today is really take a look at that phase one of what it looks like for staff, right? So when we look at a Rainmaker, let's just talk about this and see if you can put yourself in this position.
Glenn Mattson
The Rainmaker has an exceedingly high level of energy. They understand that if I do a, and I do it, well, I'm going to get compensated or get to this goal of B. Now, the neat part about this is, is that as they start to look at their ability to develop business and their ability to grow. One of the things I like a lot about this early phase is they start to understand what I call time profitability. Time profitability is what they are getting to be and have to learn how to be exceptionally gifted at juggling a lot of stuff. They have to manage their time pretty well, because they have to do prospecting activities, and they have to sell, and then with that, they actually have to fulfill. And sometimes that's paperwork, sometimes that's service, sometimes it's actually implementation, if they're more of a consultant.
Glenn Mattson
So they have these different plates that are constantly spinning, and part of the job of a Rainmaker is not just to bring in, right, but they have to bring in and maintain that relationship, grow the relationship. Have the ability to get more trust and more business from these individuals. So as a Rainmaker starts to grow, they really start to understand time, and they understand that there's only so much time in the day. As they start to grow their business, sometimes that time impacts other areas of their life, family, their spouse, and their health, right? Sometimes it doesn't. But more times than not, they really start to realize the first phase is time profitability.
Glenn Mattson
Time profitability is, how do I maximize my time? So a lot of Rainmaking entrepreneurs will hit a brick wall, which is, I just can't do more business because I have all this other stuff I have to get done after I sold it. So with time, profitability comes, is that they start to realize I can't do it all, or, more importantly, I shouldn't do it all. So the first thing that they learn is just because I can doesn't mean I should. You may want to write that down on the back of your notepad or keep that in front of you, especially if you're a hyper achiever or a controller. That is, yeah, I know you can do it doesn't mean that you should do it. So just because I can doesn't mean you should.
Glenn Mattson
So when they take a look at this time profitability, it's really taking a look at these other activities that they have to do that aren't necessarily revenue generating. So what we call that at Sandler is called pay-time and no pay-time, and I'm a very large proponent of understanding what the differences are and understanding how much time you spend in each bucket, and what the revenue and or the return on investment. So a rainmaker kind of has this process almost, I would say, internalized, whereas they look at the things they have to do, they start to say to themselves, my gosh, I am spending six hours, seven hours, and paperwork. I'm doing three hours of calling up people and scheduling or rescheduling, or whatever it may be.
Glenn Mattson
So they look at, how do I delegate? This is important, right? How do I delegate the nonprofitable, yet easy things to do to someone else? So there's a time suck right where what are the things that need to be done? But doesn't take a high level of competency to do it, but it takes a lot of time out of your day or week to do it.
Glenn Mattson
So they started to look at delegating things that I would consider nonprofitable, yet a lot of time to get done. Usually, the first one that people will delegate is paperwork. And paperwork is giving it to and hiring someone to say, you do this. It's 20 hours a week. I'm doing some paperwork. If I can get that 20 hours and reinvest it into my pay time, imagine what would happen. So an entrepreneur, Rainmaker, and these are some numbers, you should realize, every dollar you spend on staff you should get $3 back. So it's a one-to-three ratio.
Glenn Mattson
So if you're going to be spending 100 you know, $50,000 or $80,000 in a staff person, you should be growing your business by at least 230,000 net, net. So by doing that, what happens is, whatever you delegate over to no pay time activities. And by the way, if you look at your day, pay time is about four things, maybe five, maybe six, and about 80 things that you do on a daily basis are really no pay time. So for instance, paperwork, that's no-pay time, preparing for a meeting. That's no-pay time, sitting in and doing a PowerPoint. No-pay time following up with the activities that you have to do to get the paperwork to submission to get paid. That's no-pay time, calling up vendors and figuring out where they are. That's no-pay time, even putting together a proposal, is no-pay time, getting in front of the client to review the proposal is pay time. That's called closing but creating the proposal is no-pay time. So again, you can have just four or five things that are paid time, and literally 6070, things that are no-pay time.
Glenn Mattson
Part of the issue is with nonsuccessful entrepreneurs, they will choose to do the no-pay time activities over the pay time because they're afraid to right? Pay times, prospecting, qualifying, closing, developing relationships, etc, that's on pay time. So the nonwinners right, the people that are not what we would call successful rainmakers, they will choose to do no pay time instead of the pay time. It's called hiding. It's guilt-free, right? Who's ever going to get yelled at because you spend six hours doing a proposal, which is honestly ridiculous? So when you look at it and this paid time and no-pay time, they say to themselves, what is my biggest time with the least amount of competencies I can give away to somebody else, and a lot of times again, the beginning, it's things like paperwork, maybe it's social media, marketing, definitely scheduling. You know, people even try to use scheduling that's now automated, and which, you know, by the way, you lose in a tremendous amount of the connection with your clients when you say to them, Hey, contact me. Why don't you look down my site here, and you pick a time you want to talk right? So they actually will use people to people, because they know it's 10 times more powerful.
Glenn Mattson
But again, they will look at the paid time activities that take you the most amount of time during the week or during the day, that have the least amount of competencies needed to fulfill that role. Not saying that that's not challenging. It just may be easier to train someone to have a schedule than it is to actually go through a file and look for growth opportunities, for instance. So again, the first thing they delegate is typically easy to do, but a lot of it now again, that could be scheduling paperwork, etc. Some also will delegate things that are what I call outside experiences that need help. For instance, that could be marketing, could be branding, could be technology, could be bookkeeping, and banking issues.
Glenn Mattson
So remember that most Rainmakers are overachievers, right? And an overachiever is, is they are very efficient. They're effective. They kind of think, in their mind, if I can't be outstanding, I don't want to get it done. They focus on thinking. They focus on action. They are, in their mind, it's, it's it's a parade, right? Either you're looking at someone's backside or you're not. So they have a high level of, really, what I would consider expectations of outcome, and they don't accept mediocrity. So because of this, they think, in their mind, you know what, I'm going to go hire somebody. And when they do, they bring in people, but they don't actually prepare the person for success.
Glenn Mattson
This is really important. I can't tell you how often I see this, more times than over and over and over, especially someone who is a hyper achiever. They believe that if I don't control it, it will be controlled by somebody else, and I'll lose you know, they will think that if I don't, if I don't do it right, then it can't be done or I do it right the only way. So they start to have these mindsets that say to themselves that it has to be done and has to be done my way. But part of the issue is, is that many of them don't actually set their staff up for success.
Glenn Mattson
So a lot of times, in the very first phase of a rainmaker they're so focused on bringing in business, they will hire people. But what they don't do is this. They don't have a process for the most part. They usually do the process themselves, but they don't have it written down. They don't have any onboarding. For the most part, there are really no KPIs of what the job function is and what needs to be done, the behaviors and how to do it, when they should be doing it, and the frequency of doing it.
Glenn Mattson
So, therefore, there are really no KPIs, right? There are no leading lagging indicators. And when they know something is done or not done, they just turn around and say, hey, it didn't happen. So they train basically because of fires. You know, for instance, they'll train someone on paperwork, and then when they get an Igo or something goes wrong, or the paperwork is not done right, they will turn around and say, Okay, this is what you need to learn here. So really, you gotta realize the learning and the teaching is haphazard, and it's kind of all over the place. Now, because of that, they have poor turnover. They usually have someone who will come on board, and they get lucky. They're great, and they can pick it up really quickly.
Glenn Mattson
They can almost be self-serving, but it's very, very, very rare. More times than not, they will go through two or three individuals each time they hire somebody, and they get better and better and better as a manager. Now you have to realize too that most of these individuals are not great at managing themselves. They are again hyper achievers controllers, which means that they have a tendency to be powerful. They want to be pushed through their comfort zones. They don't necessarily need to have a track to run on, but they're not the best supervisors. They're not the best managers. And so because of that, their performance management skills are typically pretty low. They're very not great at giving feedback. Most of the feedback they give is things like, you should have done this, you could have done this. Why didn't you do this? How many times do I need to go over this with you, thinking that the person that they hired is, you know, a complete genius to figure all this out without really any guidance or assistance?
Glenn Mattson
So when they take a look at it, this trial and error is a big gap that they have when it comes to staff right now, I have noticed that a lot of Rainmakers typically will go through about three to four iterations or phases with their staff. Phase one is what we just talked about. Just imagine a bus going 100 miles an hour. They take their arm out of the open door, grab a body, and they throw it onto the bus, and say, Okay, keep up with me, if you can watch what I do. And within a month or so, you'll be able to figure this thing out. The only time that they realize that they're not training is when something falls through the cracks or is wrong. Then they go back and say, Okay, now this is how you fix it.
Glenn Mattson
So that's why, by the second or third iteration of hiring, they now start to have a process. Now they understand what a 30-day, 60, 90-day onboarding program is. They start to understand that, hey, just because you told them to do it doesn't mean that they're going to so have to inspect what you expect. They also have to have the capacity to overcome this fear of rejection, which is, as a salesperson, they did amazingly well, overcoming their need for approval to prospect. But all of a sudden they have staff. They don't want to be the bad person. They don't want to right? And when that happens, every reverse delegation, which is the second largest blind spot for entrepreneurs.
Glenn Mattson
And in the beginning, they start to realize that, that, you know, I was better at doing this. I could do this on my own. How come you take seven times longer to do something? It took me no time flat. Well, that's because you're really good at it. You've done it for a really long time. So you have to start to realize that the delegation does take time. Does take energy. The individuals are going to start to learn. You're going to have to make sure that as we get into the next podcast I'm going to map out with you, what you need to do to learn how to create a job function, to learn how to actually correctly interview somebody. How do you really onboard somebody?
Glenn Mattson
But in the beginning, the first phase with staff is you're hiring what you can you're throwing it over the fence, and you really don't have the process you need, and so therefore you're not training them correctly, and you don't have the right KPIs and onboarding. Now, some of the some of you, you know deep down inside that, if one of your staff persons, and I know pretty much every company I've ever been to that has, say, three staff or more, when I ask them the question, if they all quit today and you had to hire him back, the same dollar amount, same everything, how many of your team would you hire back? And without reservation, in 25 years, I will always get at least one person, one person of every team, and it was a team of five or six. There's always two that, when you look at it, they'll say, No, I wouldn't hire them back. So you know, in this first phase of a rainmaker, tenure is more important than competency.
Glenn Mattson
Safety is more important than going through the hell of hiring someone and onboarding the devil I know is better than the devil I don't know, right? So take a look at yourself and ask yourself, am I in that first phase of a rainmaker? Am I moving so fast that, congratulations, you've understood about time profitability, but you're also setting yourself up for failure?
Glenn Mattson
So as we get into our next podcast, what I want to do is share with you, really the understanding of how to identify what you're looking for, how to identify the job functions, and how to identify what we call a job profile. From that create a competency model, which would then help you figure out how to onboard people, and then you can create some report cards. Now realize that's just level two of staff, and we have two more to go after that before we deal with and put this one item to bed inside the Rainmaker entrepreneurial.
Glenn Mattson
So if you hear yourself inside here shaking your head saying, Yep, I know that if I delegate this, I can make more money. It can be more profitable. I can see more of the right people, but you're not doing a great job getting those individuals up and running. You're not alone. It happens a lot. So in our next session, which is really episode eight, we're going to dig deep into how to actually create a job, profile, recruit somebody, bring them on board, onboard them, and then from that standpoint, we really must increase our managerial and our leadership skill sets.
I look forward to seeing all of you on the next session of Building Blocks of Success.
