Amway Global Ada-tudes: A View from the Top : Relationships -- Our Greatest Strength

Relationships -- Our Greatest Strength

Thursday, March 22, 2007 by Todd Krause
Category: First Circle, Quixtar Strategy, Balanced Business

I have noticed a lot of good conversation and healthy debate in Ada-tudes, thanks for the honest feedback and opinions. I thought that I would throw out another item for discussion that will provide you with a better idea of where we intend to go in the coming year, and also give us a compass check based on the reactions.

One of the key principles driving us ahead in 2007 is centered on enhancing the relationship between Quixtar and the IBOs. We need to maximize our business partnership and strengthen the business while making profitability a priority for both parties.

Currently, the roles of Quixtar and the Lines of Affiliation (LOAs) are not aligned as they should be. This results in less than effective partnerships as well as positioning in the marketplace that is inconsistent, confusing and sometimes deceptive. It is critical that our organizational structure be analyzed and recalibrated if we are to fully support building the transformed Quixtar model.

Here are some of the key strategies and tactics we will be focusing on:

1. Treat IBOs as business partners and not as consumers. More face to face contact with leaders and emerging
     leaders to support and socialize Quixtar’s Strategic Plan, and to lead them in the effort to realize greater
     profitability through the earnings potential of building a balanced business.

2. Develop long-term strategic planning and analysis of the leadership’s key business indicators such as
activation, profitability, productivity, and renewal.

3. Develop education based business development tools focused on the key business indicators to help drive
measurable and sustainable results.
4. Develop a process for gathering and sharing best practices and key learning from IBO programs and teachings.

5. Develop a process for communicating timely and accurate short and long-term measurements of all programs
IBO organizations participate in.

6. Establish interactive communications with all levels of IBOs that provide clear content and especially support
new IBOs building toward their personal goals and succeeding at their own pace.

7. Ensure that Quixtar employees have opportunities to personally meet and understand IBOs at all levels.
Employees will be strongly encouraged to support and enable balanced business outcomes.

8. Better our understanding and support of differing IBO populations – demographic differences, income goals, etc.

Here are some of the things we will stop doing:

1. Relationships with IBO leaders based primarily on telephone and e-mail contacts.

2. Short-term product promotions. They don’t drive long-term results.

3. Any initiative that isn’t measurable and doesn’t support the Strategic Plan.

4. Thinking of ourselves as reactionary and having limited impact on measurable and sustainable IBO profitability
and growth.

This business has been built on relationships and always will be based on relationships – it is our greatest strength. No matter how technology may change or enhance our infrastructure, we must always remember that true partnership can only be reached by sitting down across the table with those who represent this opportunity every day.

03/24/2007 Update:

This post has been edited to incorporate numbering.

Comments

Tex said: March 22, 2007 8:30 PM | #

Todd,

This is a good list, I am looking forward to work with you to put some meat on the bones of outline you described above over the next days and weeks. Here's some initial thoughts to your points:

[1]------ I have more of an issue with the higher pins treating the IBO's as customers rather than business partners than Q. Face to face would be good, are you planning a "road show", and/or have some of these sessions in June at the "Connections" convention? What is your definition of an "emerging leader"? I hope this is more about principles than pin level. When and how will the Strategic Plan be available for review and comment?

[2]------- Profitability is the key issue here. Who can't agree this is what the essence of ANY business is all about? The focus here needs to be NET PROFIT. In the case of most IBO's, this means Q profit - Tool cost = NET PROFIT. For the higher pins, it means Q profit + Tool profit = NET PROFIT.

[3]-------- This sounds good, I think it is what Beth has mentioned previously.

[4]------- Another good idea. It would also make sense to have additional standards for showing the plan, such as using the word "Quixtar" and stating some sales to non-IBO's are required.

[5]----- Not sure what you are getting at here, I am sure it will make more sense as we move along. However, at some point we both need to be concerned about showing our hand too much to our competitors, right Ty (Ty has posted here, used to be an IBO and is with another MLM now)?

[6]----- This one sounds good as well, looking forward to seeing more details.

[7]------ Another good idea, I find face to face meetings not only very productive during the meeting, but also helpful when communicating via telephone or e-mail at a later time.

[8]----- Another good thing, see the next bullet item for additional input.

[…]------ Yes, this ties into the tool cost issue mentioned near the beginning. Right now, most tool systems are essentially "one size fits all", with the motto "Diamond or Bust", and it has busted MANY more than helped over the years.

Here are some of the things we will stop doing:

[1]------ Nothing wrong with this, after a face to face meeting these methods of communication can be very effective and efficient, not to mention MUCH less expensive.

[2]------ You probably know more about this than I do, but it seems like some short-term promotions can lead to some pretty good "sizzle" opportunities.

[3]---- Good concept, just don't get so structured it stifles creativity.

[4]----- Another good thought.

[…]---- I agree with all of this, but there still appears to be a missing piece. We have "regular" IBO's (less than Platinum volume, as a general rule) and Q involved, where do the higher pins fit in? Don't get me wrong, I look forward to our face to face discussions without them present, but at some point we need to know what our respective roles will be.

Editor’s Note:

This post has been edited for brevity and redundancy in accordance with our policy.

Katie Pearsall

Editor – Opportunity Zone

Anonymous said: March 23, 2007 2:43 AM | #

Dear Todd,

First, you say that the company wants to talk to the rank and file face to face. Good idea.

Second, you want to treat/view that rank and file as being in partnership with the company rather than simply as consumers. This statement speaks such volumes, I wonder if you realize what you are suggesting. As far as I can tell, the IBO has always been viewed/treated as a consumer. In other posts, I have pointed out that the failure to create a sense of business ownership in the new IBO is a major reason for the abysmal renewal rates. Teaching the IBO how to "build a balanced business" is a clarion call I'd answer with great enthusiasm.

Sharon

Tex said: March 23, 2007 2:40 PM | #

Katie,

If Todd had numbered his points, I could have kept the same numbering reference. By removing ALL of his words (rather than taking most of them out and leaving in the main idea), you have made it difficult to follow which of his points corresponds with which of mine.

Editor's Note:

Great idea, Tex. I'll edit Todd's post to incorporate numbering.

Katie Pearsall
Editor -- Opportunity Zone

Chris O. said: March 23, 2007 4:59 PM | #

Todd,

I agree totally with Sharon about training IBO's to run a BUSINESS, which is what this is. One of the big reasons I signed on was to learn HOW to run a business--to take the fear factor out of the financial and planning aspects of having, growing and making the most out of business ownership. I want training on record-keeping and business tax laws, on creating my own "brand identity" as an entrepreneur--once I develop my own, unique "take" on what I have to offer that will BENEFIT OTHERS, and have a strategy to market it--at that point I OWN my success. That is where the transition takes place from feeling like I am back in High School selling Entertainment books and preying on my friends and neighbors to reach a number, to realizing that this is a business, and I am in charge of whether it succeeds or fails, and I become vested in its success. I am no longer just wandering in the direction someone is pointing me without really being attached to the outcome. When I first started, in my excitement I jumped right in with a line I know has great potential, and immediately alienated a large pool of prospects because I was just using them to reach a goal, not offering them a benefit they could use to enrich their lives--now I will have to regain their trust and respect by using a philosophy and approach that took me six months to develop. Time in which I also made sure I learned everything I could about this company, and became satisfied that the concerns I had could be addressed with my prospects knowledgably and comfortably.

Some will say that I learned alot by failing the first time--and that is true, but if I had been thinking like a long-term business owner, instead of someone who was desperate for cash and looking for the big hit, I would probably not have made that mistake.

The internet and MLM environment is exploding, and people are being bombarded by offers at every turn, so they are gun-shy. We need to constantly adapt our approach and philosophy to reflect our awareness of this. As Tex said, we need to plaster the name Quixtar everywhere--when we hide, people think we have a reason to! It's time to come fully and out of the closet and celebrate 50 years in business in a big way!!

Jeffrey said: March 26, 2007 6:46 PM | #

Well, I believed this (Relationships--Our Greatest Strength) until this morning. I was told by one of the blog authors (Beth) to talk to Q rules about the challenges I have been having with my upline Diamond. So this morning, I called Q rules and talked to the director. To say the response was lukewarm would be too high of a compliment. I knew it was a lost cause almost as soon as I started. Even with documented rules violations, Oh, well.

These blogs are nice for all us under-Platinum serfs, but they are just that--blogs. Pacifiers. From today's conversation, I really get the feeling that my upline Diamond can do as he pleases and until I am at least Platinum, I might as well forget the complaint process. I'm very sad, because I have really wanted to build this business, but I left the conversation today believing that nothing has changed at Quixtar and nothing is going to change. I guess I'll start running ads for my janitorial business. At least there, I can control my own destiny. I think I'll also save my $30 and stay home June 9th. It's been fun for the last couple of months, but I think to continue to build my Quixtar business would be pointless. Goodbye.

Jeffrey,

We're disappointed to hear this. Our rules process applies to everyone, regardless or rank or tenure in this business. You do not have to be a Platinum to file a complaint and get our attention -- you need simply to provide detail on the situations you feel are potential rules violations. We have encouraged you to file a complaint and provide documentation so we can follow-up with those involved to determine whether there have been rules violations and to take action if appropriate. We have rules in place to protect this business for all IBOs and do rely on individual IBOs and others to help us enforce those rules by filing complaints and letting us know about potential violations. We're sorry you've chosen not to take this step.

We do require those submitting a complaint to provide details related to the alleged violation. This is so we can fully investigate and so the individual or organization accused of a rules violation has the information and context in which to respond. This is no different than filing a Better Business Bureau complaint and asking for a company to follow-up and is a fairly standard practice in businesses of all kinds.

Beth Dornan

Director -- Quixtar Communications

Piet (Strydom) said: March 27, 2007 10:29 AM | #

What I perceive in Todd's list is a lot of duplication with what is currently (supposed to be) provided by the BSG's. Maybe when a new person signs up with Quixtar, he must then make a choice of whether he wants to a) receive Quixtar business support, b) upline business support, or c) no business support at all.

One of the best features of A/Q is the hierarchical structure that exists, and the very pure alignment of the rewards. In traditional business it is always a MAJOR problem to align the rewards given to people, with behaviours that will promote the goals of the organisation. One will have to be very careful of interfering with the alignment of goals and rewards, as well as methodologies.

If somebody gets conflicting messages from the upline, the upline support system, and from A/Q, it will cause confusion, and that is deadly for growth.

I like point 8, I think it is very good to distinguish between serious business builders, tinkerers and wholesale customers. It must not be seen as a boxing in of people, but as information on how to treat people correctly. Treat a serious business builder as a wholesaler, and you'll very quickly lose him, and vice versa.

Tex said: March 28, 2007 6:03 PM | #

Jeffrey,

What are the specifics of your complaint?

You don't have to name individuals, but what are the nature of your complaints?

Jeffrey said: March 28, 2007 8:19 PM | #

Beth--I did go ahead and fax in the documentation to Q Rules on the bonuses this afternoon (Wednesday).

This is a pivitol point in my business, because the outcome will determine whether I continue or not.

I have always been extremely honest whenever I have presented the compensation plan and the products. I have always been in compliance with the rules. Every month since it started, I have been in compliance with the Customer Volume Requirement.

If the Q rules department contacts my Diamond and they just take his word for it, then nothing has changed. Also, if I should have to meet the Customer Volume Requirement to receive my bonus on downline volume, everyone else in my group should have to, also. I believe that there should be no variance on this requirement. The CVR needs to be reported before 11:59 p.m. on the last day of the month either via the website or the phone, no exceptions. For some to have to adhere to that rule, and others not, that is favoritism.

A long time ago, when Bernice Hanson was in qualification for a very high pin, she missed qualification by one month. She asked Rich De Vos if he could allow the qualification anyway. He replied, "You either made it or you didn't, and you didn't." (This was on a tape that was put out by Amway.) When you have a rule, either everyone complies with it or nobody does.

Everyone thinks they have good insurance until they file a claim. Sometimes they find they have a good company, sometimes not. This business is the same way. It's a great opportunity as long as everyone is complying with the rules. How something is handled when someone is not, is the true test.

The integrity of this company and my Diamond is on the line here. Will either of them do the right thing? In a few days, we'll see.

Tex said: March 29, 2007 9:32 AM | #

Jeffrey,

You have identified what I consider the #2 biggest problem, lack of retail.

The only thing that surpasses it, and by a large margin in my opinion, is the business model that is portrayed to be about the Q products, when the real bucks are via the tool profit.

I would cause a bigger stir with enforcing the retail rules if the tool profit issue didn't exist, but I believe the biggest problem should be fixed first, and this will take care of many other issues, including the lack of retail.

However, I have no issue with you bringing up this issue, as it is a very common problem in many, if not most lines of sponsorship. I was taught how to "fake out" the Q site to get around the retail rules by my upline Platinum, and retail has never been emphasized in my LOS or by many others, if you believe what folks have posted on various blogs over the years.

Beth Dornan said: March 29, 2007 1:00 PM | #

Jeffrey, I'm glad you decided to follow-up.

Todd Krause said: April 3, 2007 1:59 PM owner | #

Based on the comments received to date, I want to add some clarification to the points of my last posting. (The numbers here correspond to the numbers in the post of the things we’re going to do.)

1) Typically, when we say “emerging leaders” we (internally at Quixtar) are referring to Emeralds, possibly even Platinums. This is because over our most recent history we have put more emphasis on Diamond leaders. We will always consider Diamonds the prominent leaders, of course, but we need to re-establish Platinum as a key and desirable level. So our new definition of emerging leader really becomes Platinum with a goal to start reaching out to Silver Producers as well. Internally, this will mean significant shifts in resources, but more importantly, it means that income and recognition at these levels need to be stepped up.

We do plan to have more of a presence of Quixtar in the marketplace in the way of “Connections” type meetings. We also plan to get the Sales team out on the road more developing better relations with leaders and the emerging leaders mentioned earlier. Our plan is to earn our way as a strategic partner offering data, information and training aimed at individual businesses. Our goal will be to help IBOs build long-term results by strengthening key business areas such as profitability, renewal, productivity, and activation. Yes, we realize that this is a large, but very important, undertaking. If we really want to treat IBOs as business partners, this is one critical step on the journey.

2) Profitability most definitely means a proper balance between income and expenses, like any business. Business building tools do play a significant role in the success of an IBO’s business but, again, it is about balance. We are very encouraged by the good conversations we have had with LOAs (Lines of Affiliation) about IBO profitability and how we can work together to accomplish our goals.

5) Basically, what I am referring to here is providing IBOs better access to accurate and up-to-date information on their business. As they participate in training modules or work with us on programs to increase retention, for example, they need to be able to measure and track progress and results “real time.”

Thanks again to everyone who commented, hope the above is helpful.

Glam said: April 18, 2007 12:06 AM | #

Excellent post Todd. My only add is to get started today the 17th of April. With everything. There is always room for improvement and tweaking as you go but North American IBOs NEED Q* today to intervene in a major way. Today, Today Todd.

Keep up the good work. We are counting on you.

God Bless.

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