Happy New Year to everyone… I hope you took some time to recharge and re-energize this Holiday season.  As a leader did you take advantage of the Holidays and give people time off when the world is a little sleepy? My mentor always taught me that this was a great time to let the “rookie” take vacation or to take that key day off and to cover for them as a leader. It sends a critical message; we are all in this together and we are all equally important. Nothing is more empowering than equality.
 
You ask what is “The Water Cooler Effect”? My blogs cover a variety of topics. Primarily focusing on leadership, specifically the issues and challenges one faces in business. I take the entrepreneurial point of view. Be flexible, adaptable with your business. Stay lean. Stay in control.
 
The “Water Cooler Effect” is about symbolism. When I worked for my father with the Placers, we knew we would grow fast and take advantage of market opportunities. As we did this we might take our eye off of costs occasionally — not on purpose, of course. We would shift our attention to what was important and it is human nature to look the other way on something else. How did we get it back? The Water Cooler? We sought involvement from staff to focus on the costs side of the business. We asked for suggestions. We wanted staff to be “intrapreneurial” and to think like an owner. We did this by constantly looking at each and every line item to figure out how to lower the costs. When all else failed? Out went the water cooler.
 
When the water cooler disappeared people grumbled. They could bring their own water or get it from the tap. They knew it meant that as a leadership team and as a company we had costs under control. The removals sent a message. People missed them. People wanted them. Staff got them back when their business P&L made its goal.
 
History repeats itself; wait until my Father hears this. In this time of conservation and rethinking what is really important, I discontinued our water cooler service. The funny thing is we have two. During times of plenty, staff decided to get water delivered. They did not want the filtered water we already had and pooled employee monies to pay for it. Times change and, over the past 5 years, staff moved onward and upward. Today CBI Group owns the responsibility for the water cooler. By removing it, I know as a leader I am doing the right thing for my business. Of course, it is not about the money. It the point of managing costs, investing in the right things and sending a clear message to my team that we are on top of expenses.
 
Consider taking these actions to find your “water cooler”:

1. Review each and every line item of expenses. Do it with someone who does not normally have this role or responsibility. Business needs change. What was important yesterday is perhaps not relevant today. Every customer that I have that has done this has cut things that were not important to the current plans of their business.
2. Call your vendors for annual reviews of services. Most have created more recession friendly offerings to court new customers. You will get them if you ask.
3. If you pull your water cooler or coffee service or whatever — get mileage from it. Tell the water cooler story of cost management. Recession aside, it is how you stay competitive and run an entrepreneurial business.

 
Send me your water cooler story!