Share the plan
Shearer says one of the biggest reasons for his company’s success is his policy of letting his employees see the whole picture.
“A lot of people have a fear of sharing sensitive information with their associates,” Shearer says. “But I’ve always been very straightforward. That’s the key, so people know what your vision and plan is going forward, and everybody can work in the same direction knowing they all have the same goals.”
Giving your employees a clear view of the company’s plan ensures that no one is acting without all the facts. If everyone in the company understands how he or she fits in to the overall plan, you can cut down on the number of bad decisions and mistakes while giving your team the leeway to be creative and come up with innovative ideas for products.
To ensure your entire company understands your strategy, Shearer says you need to establish several methods of communication. One of the most successful methods at Shearer’s Foods is the quarterly “State of the Company” meeting. Shearer brings all of his employees together for this meeting. The purpose of the meeting is to eliminate the silo mentality and bring everyone up to speed on what’s happening elsewhere in the company. Each department gives a presentation on what it is currently working on and its short- and long-term goals.
“In some respect, it’s human nature that people think the only things that are getting done are what they do,” he says. “So I’m a big believer in letting everybody see all the pieces of the puzzle. Then, they have a better understanding and a big appreciation for what everybody’s doing.”
Shearer’s commitment to visibility extends to the financials, too. At each quarterly meeting, he takes 100 pennies and breaks down where all the company’s money goes. Shearer tells his associates how much of the company’s budget goes to products, raw materials, labor costs or marketing — and then slides away the corresponding amount of pennies. The demonstration is a basic education in finance for many employees who normally would never consider the myriad costs of running such a large organization. As an added benefit, the slim line of pennies left over after Shearer’s presentation encourages many employees to be more frugal in their day to-day work.
“When you look at our business as pennies, there’s not a lot left over,” he says. “So we have to control our waste and our labor costs.”
Another thing Shearer does to open the lines of communication is host a monthly company birthday party. The premise is simple: Any employees with a birthday that month get an opportunity to talk with the top executives of the company in an informal setting. In many companies, there is an invisible barrier between the employees and management. The birthday party is one of Shearer’s ways to tear down that barrier. In fact, many employees take the opportunity to share their thoughts and ideas with management on a one-on-one basis without their supervisors necessarily being present.
“It’s vital for all the associates to understand and commit to the vision and the future of our company,” he says. “Achieving a consistent state of associate buy-in provides us with a competitive advantage for us. Really, it’s one of the least expensive and probably one of the most valuable actions that we in the business can do.”
