In 1965, sales exceeded those of McDonalds, Burger King and Kentucky Fried Chicken combined. Once numbering more than 1,000 locations, the number has dwindled to a mere four.

What went wrong at Howard Johnson’s restaurants?

“For a long time, customers and service were key issues. By the mid-seventies, they had a lot of stockholders to please. The big emphasis was on increased quarterly earnings. They began squeezing the payroll, squeezing the customer. All of a sudden, we were not to serve water unless requested and not to use place mats. You’d be crazy to open a Howard Johnson’s today.”
Ron Butler, Howard Johnson’s owner for 39 years.

“They became cost-conscious instead of customer-oriented. They lost their focus of being passionate about serving the customer.”
William Rosenberg, founder of Dunkin Donuts.

“We ran a very tight operation. We kept our expenses low. We wanted to have earnings improvement. We were on top of the numbers daily.”
Howard B. Johnson who assumed the role of company president in 1959. Quoted from a 1985 interview in Forbes magazine.

Lesson: If all you focus on is results, you won’t achieve them long term.

Proof that relationships with your employees and customers are the key to long-term, sustainable sales growth.

How is your organization doing?

“The task of medicine is to cure sometimes, relieve often and care always.” Ambroise Pare (1517-1590)

My mother was a very simple person, never wanting or wishing for the material things in life. She was a loving wife and mother, fiercely devoted to her family.

One year, fresh out of college and seeking my future in the business world, I received an emergency long distance phone call while on an out of town business trip. It was my Dad with news that Mom had suffered a serious heart attack and the situation looked very grim, as the attack had destroyed 50% of Mom’s heart.

The doctor assigned to Mom walked into the cardiac intensive care unit and spoke the following words – “She will be lucky to live one year.” Without hesitation, my Mother motioned to my Dad to come to her bedside. As my Dad leaned over, he heard Mom’s command, “you fire that doctor!”

My Dad dismissed that doctor and a new physician, Dr. Thomas Runge, was selected to care for my Mom. The love and compassion of this new doctor, coupled with total faith in The True Healer, allowed Mom to live 13 additional, productive years.

Mom’s final hospital visit was a special care unit in Houston, Texas. She became very close to one particular nurse - Ms. Edwards – during the final weeks of her life. This lady cared for Mom as a person, not just as a patient. She was kind, caring and compassionate as she worked with my Mother.

The final day of Mom’s life, a “Code Blue” was announced and an emergency team rushed into the cardiac intensive care unit. Ms. Edwards came out and told my Dad and me that Mom had died. Through the tears, I asked the nurse if Mom had said anything prior to her death. She said Mom was mumbling and the nurse leaned over to ask if she could help. Mom just nodded her head “no” and said her final words, “I’m talking to God” before passing onto heaven.

You know that Ms. Edwards and Dr. Runge would have been paid the same no matter how they treated my mother. They could have thought of her as “the heart patient in room 62.” But they didn’t. They treated her with the compassion that transcends just doing a job. They cared. And in so doing, they had a profound impact on the final days of Mom’s life. There is great power in compassion. People don’t remember how much you know, but they do remember how much you care.

And you know what? I think there’s room for that in a lot of other places outside the hospital. Compassion, care, kindness, thoughtfulness – they are all needed at your company by your fellow employees. Oh, not if you want to treat it as only a place to go pick up a paycheck. But if you want to be remembered … if you want to make a difference in this life… if you want to make even a small mark in your little corner of the world, show compassion. Then stand back and watch for the miracles!

The question: What is the task of medical professionals (and all leaders)?
The answer: To keep HOPE alive.

P.S. – I contacted Dr. Runge on 6/27/03 to thank him for his care and compassion. During our phone conversation he made the following statement: “The worst thing a doctor can give a patient is bad news. The truth can be delivered with compassion, thereby keeping hope alive.” Beautiful words delivered by a true physician.

And remember, it’s all about the relationship.

“We’re more committed, more of a family, more united.  We’re more focused and the confidence is starting to grow.”

“I absolutely refuse to accept failure.  You get players to raise their standards.  It starts off the field.  The first year I listened to how tough I am and that I was going to be a kinder, gentler guy.  That didn’t work.  You make them pay a price and try to bring them together.  I’m just so stubborn that I refuse to compromise.  Sometimes that’s an asset and sometimes it’s a negative.”

“I believe if you create the right attitude, you can win anywhere.  You have to recruit well and attract good leaders.  You need a plan and must follow the plan.  You can win if you are together.  You must have a family atmosphere.”
Comments during the 2000 football season after his University of South Carolina team had beaten two ranked opponents on their way to a perfect 4-0 start.  All this after losing 21 straight games during the previous two seasons!

And remember, it’s all about the relationship.

Dave Longaberger grew up in the tiny village of Dresden, Ohio.  One of 12 children in a modest home (with one bathroom!), Dave experienced severe stuttering problems.  He also suffered from epileptic seizures.  And that was before he ever got in the first grade.

Dave’s problems didn’t end when he entered the Dresden Grammar School’s doors.  He spent two years in the second grade and three years in the fifth grade.  People in town would look at him and shake their heads, but Dave didn’t give up on himself.

From a very early age, seven, Dave found work in the small shops on Main Street.  At one point, he even sold Fuller Brush supplies.  When he got to his neighbor’s doors, he stuttered so severely, people bought something just to put him out of his sales pitch misery.

After Dave got out of the Army, he wanted to open up a restaurant.  It wasn’t easy, but he finally secured financing.  So, Dave opened up this tiny restaurant of a handful of tables and stools.  Cash flow was so tight that he would take the money from lunch, go to the grocery store and buy the food he needed for supper.

Dave’s restaurant became successful, so he expanded.  Then he purchased the grocery store.  But he also had another idea.  He had watched his father make baskets for local farmers.  Dave thought the baskets would sell for decoration in homes.

Today, the Longaberger Company – www.longaberger.com - sells millions of Longaberger baskets and pottery.  It employs about 10,000 people and has over 30,000 sales associates scattered throughout the United States.

Dave Longaberger did not give up on himself.  He was able to see his potential.  The power of belief is one of the strongest forces in the world.

Why do some executives fail while others flourish?  In in-depth interviews with 41 executives, the American Management Association found that these traits often lead to failure:

1. Insensitivity to co-workers.
2. Aloofness and arrogance.
3. Tendency to misuse information conveyed in confidence.
4. Inability to control ambition.
5. Inability to delegate assignments or promote teamwork.
6. Inability to staff effectively.
7. Inability to think strategically.
8. Over dependence on mentors.

And remember, it’s all about the relationship.

“I’ll tell you what makes a great manager: a great manager has a knack for making ballplayers think they are better than they think they are.  He forces you to have a good opinion of yourself.  He lets you know that he believes in you.  He makes you get more out of yourself.  And once you learn how good you really are, you never settle for playing anything less than your very best.”

Reggie Jackson, Professional Baseball Player

And remember, it’s all about the relationship.