"How you lead your crew defines the D.N.A. of your business" Richard Moghadam
Randy Cu- I.T. Representative - Metromedia Funding Solutions.
There are many ways someone may find themselves as a business owner, but the type of leader that you are can define how your business runs. Some owners inherit a business from a beloved relative, some buy a franchise while others turn an idea into revenue. The type of leader can be different regardless of how you obtained your business. Rick Moghadam, the host of the hit TV show "The Funded Project, and the president and CEO of Metromedia Funding Solutions, and several other businesses shared his thoughts. Rick said, "it comes back down to how you lead and intent".
Rick teaches his staff that in order to properly lead your crew, you have to get on the front lines with them. He proffers, "Let's say you own a restaurant, and you want your staff to watch product cost VS waste, when I was running restaurants many years back, the way I would do it was to get on the line with them and show them how to use the tools the company provides effectively." I asked him for an example, he said the way to get them to want to do it was to set up a small competition, he mentioned that they had a prep table where they would prepare each plate and he took the trash can where all of the waste was placed and put a clear bucket he labeled waste on the front of it. "At the time, I was a manager, and the owners did not think my idea would work" he also said, Rick purchased a $25.00 visa gift card from a neighboring convenience store and called his crew to come to a meeting, everyone that worked at the line, we mentioned how much he appreciated them for them being there and working as hard as they did, and he pulled that gift card out of his pocket and mentions " Each shift this week, I am going to weigh the waste and the lowest number at the end of the week, I am giving you this visa gift card." You probably thought its only $25 bucks, that does not mean anything, Rick will assure you that you are wrong. He continued " At the time of the context, that was equivalent to two and a half hours of their hourly pay." he mentioned that he reminded them of that. What happened next caused the accountant for the restaurant chain to visit the location to verify the drop in loss was correct, it certainly showed up in the numbers. Rick bought a whiteboard, put all seven names on the board, and kept a running total on the wall for them to see, he created a competitive sport between his cooks and made it a fun working environment while he cut the waste factor down by 77% in a few days This is a Coach style of leadership.
Rick mentions that there are times you may be managing a business that requires you to understand technical product knowledge, and mentions that if you do not know it you better learn it. In his funding company, Metromedia Funding Solutions, his reps experience this style as he teaches it in a classroom setting. He mentions " in the funding space, this is a requirement in my eyes" he further explained his position on the style when he started working in the alternative finance industry. He carried on with his experience and explained when he started selling merchant cash advances that industry mentors taught him "the wrong way" and, the effects of those teachings by these supposed leaders have caused undue harm to the industry. Rick started fact-checking the information they were teaching and discovered a great product that was being sold in the worst format possible. Rick said that was the turning point to stay and learn, then educate and reform. His story of how he found the industry was a tear-jerker. "I had to come in and help fix it before any other business owner suffers the way that I did." He showed me an episode from The Funded Project in season one called Misunderstood Masterminds.
"The product is great, but it is not a one-size-fits-all solution." He said while the telemarketers were telling the merchant the product would take them into a loan for their small business, they missed more opportunities by lying than they could have got by doing it the right way" Rick also discussed that the representatives on the phones put in hard work and did everything they were supposed to do, but due to the lack of education they did not reap the benefits they should have. When Rick understood the problem, the solution came quickly. He offered existing brokers a position in his organization, but they were required to become educated by taking a class he wrote. The agents and brokers learned that by presenting the product correctly they were able to provide their funders a better client, and they found twice as many clients for them. The platform built a full-scale training classroom that is exclusive to Metromedia.
This style is controversial by both the party that is giving the commands and the parties receiving them. Rick mentioned there are some defined positives that should be noted in this style, he said the definition of rules and responsibilities of all involved parties is clearer in this model than any other model. He also mentioned that the personality type of person that follows the leaders that use this model should be a good fit for your business if you use this style. He mentions that this model is used by the military and many large companies because the model is effective.
There are many other types not mentioned here, but what is Rick's style?
Rick's style as he mentions "it is a mutt style." he continues " I am self-funded, there is no bankroller and everything we do has to be effective." He tries to use a combination of all styles, he gave the example of how he coaches and educates but uses the authoritative style in the combination to stay steadfast on the goals he lays out for his staff. Rick continues to mention that many times if the staff understands why they need to complete a task that he finds they typically share the same goals and follow the plan accordingly.