Ask the Owners: Who’s On Your Team?

In our next installment of Ask the Owners, Diann Anderson, formerly of Anderson Funeral & Cremation Services discusses the importance having the right team outside of your internal team to help you be a success:

Trust is something that you do every day.  To trust is to have a firm belief in the reliability, truth, ability, or strength of someone or something. While the concept of trust seems simple on the surface — it’s about believing in someone’s reliability, integrity, and competence — it involves various layers and nuances that make it intricate.

One of the greatest challenges Steve and I faced when we started digging into changing the paradigm at our funeral home was “Who can we trust?”  I’m not speaking about which employees are trustworthy.  I’m speaking about the importance of having the right team outside of your business that will help get you to where you want to go.

Due to the very nature of the competitive business environment that your funeral home is operating in, it’s crucial to have outside professionals who you can trust – expert and wise counsel whose actions uphold their words. Their expertise will give you valuable insights and guidance so that you can optimize operations and achieve your goals.

Pride Goes Before the Fall

Are you familiar with the phrase “Pride goes before the fall”?  This phrase originated from the Book of Proverbs 16:18 in the Bible.  The Book of Proverbs is called Wisdom Literature.  “Summarizing the Book of Proverbs is a bit difficult, for unlike many other books of Scripture, there is no plot or storyline found in its pages; likewise, there are no principal characters in the book. It is wisdom that takes center stage—a grand, divine wisdom that transcends the whole of history, peoples, and cultures. Even a perfunctory reading of this magnificent treasury reveals the pithy sayings of the wise King Solomon are as relevant today as they were some three thousand years ago.” https://www.gotquestions.org/Book-of-Proverbs.html

Have I grabbed your attention?  I believe that this wise statement in the Book of Proverbs can be applied today as you work on growing your business.  It’s hard to ask for help.  Seeking wisdom and knowledge is a vulnerable position to be in.  As a funeral home owner, one of the most difficult and humbling experiences was seeking out expert advice to help grow our business.  On the flip side it was also one of the most enjoyable experiences because of the wonderful relationships we developed with our chosen team The Foresight Companies.

Identifying Your Business’ Needs

“The squeaky wheel gets the grease.” is an old saying that speaks to whatever problem is the most obvious is the one that receives the most attention.   In our profession, you truly do not know what the next moment will bring, and it can seem like a continual battle of putting out fires.  As we determined to restructure and improve our business, we found ourselves stretched beyond our capability and needed to explore where outside professional services could help us.   This realization caused an alarm to sound, and it kept getting louder as we attended educational seminars and gained more professional certifications.  Ignorance is bliss and as we became more and more educated about all the responsibilities of operating a funeral business, we also became more and more aware of the avalanche of changes that were sweeping us away.

Where Do I Start?

When you look at the vast overall picture of your business, it’s overwhelming.  “How do you eat an elephant? One bite at a time.”  Tackling all the areas of your business can be looked at in the same way as that saying. If you break it up into bite size pieces, it’s much easier to make progress.   We started making lists and checking off items one at a time.

Below is a list of areas in your business that require attention.  I’ve numbered them according to how Steve and I ranked their order to effectively chip away our to-do list.  This ranking prioritizes foundational aspects of business operations, starting with financial management and regulatory compliance, which are critical for legal and financial stability. Human resources management follows closely, as it pertains to the recruitment, development, and retention of the workforce. Talent development is essential for nurturing employee skills and potential. Business development, while crucial for growth, is positioned last in this ranking due to it’s reliance on strong foundations in financial management, compliance, and human resources.

This list is not all encompassing but will give you a good idea of the depth to which it takes to shepherd your funeral business well.  As you read through the categories below, make note of what you already are doing and what needs to be done.  You may quickly see there are areas in your business that require your attention, and outside help will be a game changer for you and your business.

1. Financial Management
2. Regulatory Compliance
3. Human Resources
4. Talent Development
5. Business Development

#1 Financial Management – I put this in First Place because it’s the cornerstone building block to having a solid foundation for a successful business.  Warren Buffett’s quote “Accounting is the Language of Business.” is one of the truest statements you will ever read.  If Accounting is like a foreign language to you, don’t shy away from it, learn to speak it.  The second reason I have this in First Place is it’s the area most business owners struggle with.  This is the area where your pride will battle you the most.  This is the area that business owners most often will not seek outside help until they are in dire straits. Pride is a slippery deceiver when it comes to the financial wellbeing of your business. You cannot afford to listen to your inner prideful self. Having an outside adviser who will guide you and hold you accountable is a game changer if you can swallow your pride and follow their advice.

Budgeting and Planning: Numbers don’t lie and business owners need to know and understand the financial picture of their business.  Managing finances by creating budgets and financial plans helps to allocate resources effectively, cover operating expenses, and invest in growth opportunities.  For most business owners, this is a love hate exercise.  Knowledge is power and freedom. If you don’t know the true numbers of your business, you cannot operate it effectively and you live with the uneasy feeling of not knowing what to do.

1. • Cost Control: Let’s face it, most people do not like to talk about cost control.  The fact is that if you hide your head in the sand and ignore it, your costs will eat you alive.  Having outside financial experts like The Foresight Companies helping you control your costs will greatly improve your profitability and ensure the long-term sustainability of the funeral home.  In all honesty, the conversations we had with The Foresight Companies pertaining to cost control were sometimes uncomfortable for us.  Most of the time we achieved our financial goals, but there were a few times we fell short.  The good news is that knowing why we missed the mark was extremely beneficial and gave us the ability to get back on track.
   • Pricing and Revenue Management: Believe it or not this became one of our favorite exercises thanks to The Foresight Companies.  They helped us have the confidence to have pricing strategies that reflected our costs of providing services while remaining competitive in the market. They taught us to analyze our pricing structures, set appropriate price points, and manage revenue streams to maximize profitability.
   • Cash Flow Management: Monitoring cash inflows and outflows, managing accounts receivable and payable, and ensuring sufficient liquidity to meet financial obligations.  This is another area where The Foresight Companies were a game changer for us.  One of our weaknesses was our Accounts Receivable.  The Foresight Companies helped us establish sound AR policies and trained us on how to have payment discussions with families during the Arrangement Conference.
   • Risk Management: Identifying and mitigating financial risks that could impact the viability of your funeral home. Part of risk management is maintaining adequate insurance coverage, diversifying revenue streams, and implementing contingency plans to address unexpected financial challenges. Paying attention of risk management helps to ensure financial stability and resilience.
   • Compliance and Reporting: Financial regulations and reporting requirements, including tax laws, accounting standards, and regulatory filings.

#2 Regulatory Compliance:  Every conference Steve and I attended offered a Regulator Compliance session.  We always attended those sessions and were always glad we did.  Those opportunities were crucial to help us stay up to date on changes with regulatory issues and the areas that posed the most challenging to owning a funeral home.  The list below is not all inclusive and of course, each state and municipality have their own laws pertaining to regulatory compliance.

• Licensing and Permits
• Funeral Industry Regulations
• Health and Safety Standards
• Consumer Protection Laws
• Preneed Funeral Contracts
• Environmental Regulations
• Occupational Safety and Health Administration (OSHA) Regulations
• Tax Compliance
• Ethical Standards and Professional Conduct
• Data Protection and Privacy Laws

Non-Compliance Has Major Negative Ripple Effects that will affect every part of your business.  Regulatory compliance is one area of your business that you simply cannot afford to mishandle.  It’s also the topic that gets the most groans when talked about at conferences.  We would be one of the first to raise our hands in agreement that it feels like there’s too many bureaucracy hoops to jump through and they are just another squeaky wheel that seems to drain resources and time.   However, this is the area that will quite literally put you out of business if you ignore it.  Besides the most obvious devasting penalties of noncompliance there’s a giant negative effect on employees if you skirt around adhering to regulatory compliance.

Uncertainty and Anxiety: Employees may feel uncertain and anxious about the company’s future if non-compliance with regulatory laws leads to investigations, fines, or legal action. They may worry about job security, financial stability, and the reputation of the company.

Lack of Trust in Leadership: Non-compliance can erode trust in leadership and management. Employees may perceive non-compliance as a failure of leadership to uphold ethical standards.

Ethical Concerns: Employees may experience moral distress if they feel pressured to engage in or turn a blind eye to unethical or illegal behavior related to regulatory non-compliance. This can lead to feelings of guilt, disillusionment, and ethical dilemmas.

Impact on Work Environment: Regulatory non-compliance can create a toxic work environment characterized by tension, stress, and conflict. Employees may experience frustration and resentment if they perceive that their efforts to maintain compliance are undermined by the actions of others within the company.

Reputation Damage: Non-compliance with regulatory laws can damage the company’s reputation, both internally and externally. Employees may feel embarrassed or ashamed to be associated with a company that is perceived as unethical or irresponsible, which can negatively impact their sense of pride and belonging.

Impact on Employee Well-being: Regulatory non-compliance can have financial and emotional consequences for employees. Fines, legal fees, and other penalties resulting from non-compliance may lead to layoffs, salary cuts, or reduced benefits, affecting employees’ financial stability and well-being.

Loss of Motivation and Engagement: Employees may become disengaged and demotivated if they perceive that their efforts to comply with regulations are not valued or supported by the company. This can lead to decreased productivity, morale, and job satisfaction.

Attrition and Talent Loss: Persistent non-compliance with regulatory laws may drive talented employees to seek employment elsewhere, leading to attrition and talent loss. Employees who are committed to upholding ethical standards and working in compliance-driven environments may feel compelled to leave the company to protect their own professional reputations and integrity.

#3 Human Resources:

1. • Staffing:  Effective HR practices ensure that your funeral home has the right people in the right positions to meet the needs of families but just as importantly, meet the employee’s needs.  It is not in anyone’s best interest to place a person in a position that does not fit their giftedness.  Every person has been created with gifts and creativity that are unique to them. Every job requires specific gifts and creativity to effectively perform that job.  When there’s an alignment of both a person’s gifts and creativity with the job requirements, it’s a win-win for everyone.
   • Employee Handbook and Standard Operating Procedures (SOP) Manual: The list below demonstrates why having an employee handbook and standard operating procedures is beneficial even if your business is a small business.  This is an area that you most likely will need outside expertise.   In all honesty, I dragged my feet implementing an Employee Handbook.  Our funeral home was a small business, and I couldn’t understand why people kept making up their own rules. I “thought” we communicated clearly, and we trained and trained and trained. We had clearly established albeit not written procedures.  So why did I feel like I was continually hitting my head against the brick wall when it came to employees following procedures?  I finally concluded that even though we were a small business, we needed a written employee handbook and standard operating procedures.  The Foresight Companies crafted our Employee Handbook which incorporated SOP.  After we implemented our handbook, we realized how beneficial it was – even for our small office.  When everyone is communicating and knows exactly what the expectations are there’s a level of professionalism and comfort that puts people at ease.  Below are some of the benefits to having an employee handbook and standard operating procedures manual.

• Communication of Policies and Expectations: An employee handbook provides a comprehensive overview of your company’s policies, procedures, and expectations. It outlines key information such as work hours, dress code, code of conduct, employee benefits, and disciplinary procedures. SOPs detail specific procedures for various tasks and activities within the funeral home, ensuring consistency and clarity in operations.
• Legal Compliance: An employee handbook and SOPs help ensure that your funeral home complies with relevant employment laws, regulations, and industry standards. By clearly outlining policies and procedures related to hiring, compensation, safety, discrimination, harassment, and other legal matters, the handbook helps protect both the business and its employees from potential legal disputes.
• Consistency and Fairness: Establishing standardized policies and procedures through an employee handbook and SOPs promotes consistency and fairness in how employees are treated. Everyone understands the expectations and procedures, reducing the likelihood of misunderstandings or favoritism.
• Training and Onboarding: An employee handbook serves as a valuable resource during the onboarding process for new hires. It provides them with essential information about your company’s culture, policies, and procedures, helping them acclimate to their roles more quickly and effectively. SOPs offer detailed instructions for carrying out specific tasks, facilitating training and skill development for employees.
• Conflict Resolution: In the event of conflicts or disputes, an employee handbook and SOPs serve as reference points for resolving issues. Clear policies and procedures help you, managers and employees address problems systematically and fairly, minimizing disruptions to workflow and maintaining a positive work environment.
• Risk Management: Employee handbooks and SOPs help mitigate risks associated with employee-related issues, such as harassment, discrimination, safety hazards, and data security breaches. By clearly articulating policies and procedures for handling these situations, your funeral home can reduce the likelihood of legal and financial liabilities.
• Employee Empowerment: An employee handbook and SOPs empower employees by providing them with clear guidelines and resources for performing their jobs effectively. When employees understand expectations and procedures, they feel more confident and capable in their roles, which can lead to higher job satisfaction and productivity.
• Employee Engagement and Satisfaction: Employee engagement and satisfaction are vital for the success of your funeral home. Human resources initiatives such as employee recognition programs, performance evaluations, and benefits packages contribute to their job satisfaction and morale. Employees now hold in high regard the ability to have work/life balance and require employers to provide that for them. Satisfied employees are more likely to provide excellent service to grieving families and contribute positively to the funeral home’s reputation.

#4 Talent Development – Benjamin Franklin is credited for saying “Tell me and I forget.  Teach me and I remember.  Involve me and I learn.”  No one knows if he really said that, but neverless, it is a true statement and statistics prove it.

According to the “learning pyramid” concept, developed by the National Training Laboratories Institute, learners retain approximately:

• 90% of what they learn when they teach others or immediately use the information.
• 75% of what they learn when they practice what they learned.
• 50% of what they learn when engaged in group discussion.
• 30% of what they learn when they see a demonstration.
• 20% of what they learn from audio-visual material.
• 10% of what they learn when they read.

So…Train, train, and keep training…it’s an on-going pursuit that takes intentionality, time, and a financial investment but pays back in high dividends.  Some of the reasons why training is crucial are:

1. • Quality of Service: Training ensures that staff members understand and adhere to industry best practices, resulting in consistently high-quality service delivery. A great way to help achieve this is to apply for NFDA’s Pursuit of Excellence Award.  The NFDA has a curriculum so to speak that will guide you in ways to achieve their Pursuit of Excellence Award. This award will differentiate your business from the other providers in your market and is also useful to help your care team strive for a higher level of professionalism.
   • Professionalism: Training in industry best practices promotes professionalism among your care team. Employees learn how to conduct themselves professionally in sensitive situations, demonstrating empathy, respect, and understanding towards bereaved families. This professionalism enhances the reputation of the funeral home and fosters trust among families.
   • Compliance: Industry best practices often encompass regulatory requirements and legal standards governing funeral home operations. Training ensures that staff members understand and comply with relevant laws and regulations, reducing the risk of legal issues and regulatory violations.
   • Specialized Skills: Funeral home employees require specialized skills in areas such as embalming, funeral arrangement, grief counseling, and customer service. Ongoing training programs help employees develop and enhance these skills, ensuring that they can perform their duties effectively and professionally.
   • Continuous Improvement: Training programs enable funeral home employees to continuously improve their knowledge and skills. By participating in workshops, seminars, and certification programs, staff members stay abreast of industry trends, innovations, and emerging best practices. This commitment to continuous improvement enhances the overall quality of service provided by the funeral home.
   • Employee Satisfaction and Retention: Investing in training and development opportunities demonstrates a commitment to employee growth and professional advancement. Employees who receive training feel valued and supported by their employer, leading to higher levels of job satisfaction and retention.

#5 Business Development and Growth

1. • Market Analysis: Understanding the local market and identifying potential opportunities for growth are essential for funeral homes. Conducting market analysis helps your funeral home identify demographic trends, competitor strategies, and unmet needs within the community.
   • Service Diversification: Expanding service offerings beyond traditional funeral services can attract new families and generate additional revenue streams.
     1. Pre-need planning services, cremation options, memorialization services, grief support programs, and other related services to meet the evolving needs of families.
   • Marketing and Branding: Developing a strong brand presence and effective marketing strategies are critical for attracting business and differentiating your funeral home from competitors.
     1.  Investing in branding initiatives, advertising campaigns, digital marketing efforts, and community outreach programs to increase visibility and attract potential clients.
   • Customer Relationship Management (CRM): Building and maintaining strong relationships with the families you serve is essential for your business growth and customer retention. Implementing CRM systems and strategies helps funeral homes manage client interactions, track preferences, and personalize service offerings to meet individual needs.
   • Strategic Partnerships: Collaborating with other businesses, organizations, and community groups can create opportunities for business growth and expansion. Establishing partnerships with hospices, hospitals, religious institutions, cemeteries, and other relevant entities to offer complementary services and reach new client populations.
   • Technology Integration: Embracing technology and innovation will enhance operational efficiency, improve service delivery, and attract more families.  Investing in software solutions for appointment scheduling, online obituaries, virtual memorials, and other digital platforms to streamline processes and enhance the family’s experience will have a positive ROI by helping to grow your business by offering better experiences for the families you serve.
   • Strategic Planning: Developing a clear business strategy and setting measurable goals are essential for guiding business development efforts and achieving long-term growth objectives.  Engaging in strategic planning processes will help assess strengths, weaknesses, opportunities, and threats, and identify actionable initiatives to help your business drive growth and success.

A Case Study in Utilizing Outside Expertise

Steve and I are a case study in utilizing outside expertise.  The path we traveled as we put our advisory team together was a learning experience.  I could write a blog on what not to do.  The choices we made on our journey that didn’t give us a solid ROI could be looked at as failures, but we don’t view them in that light.  Every time we sought help, we were “working” on our business.  Even if the experience didn’t benefit us to the extent that we hoped, we gained more knowledge and we were one step closer to having the team we needed.  Thomas Edison said “I have not failed.  I’ve just found 10,000 ways that won’t work.”  Being an entrepreneur is an on-going experience of Strategic Evolution and resilience.  You cannot live your life looking in the rearview mirror.  Yes, the lessons learned need to stick but you get up, dust yourself off and keep moving forward.    While seeking outside expertise incurs costs, the potential benefits and ROI outweigh the investment, particularly when the expertise sought aligns closely with your business’s strategic objectives and challenges. It’s essential that you carefully evaluate the qualifications, track record, and fit of any external advisor you partner with.

Build a Beautiful Story 

Steve and I feel that we built a beautiful story with our funeral home because we partnered with The Foresight Companies – a team whose words match their actions. A team that supported us and told us the hard truth when we needed to hear it.  A team who helped us move the ball down the field and helped us grow our business into the business we envisioned.  Because of the help of trusted outside experts, we believe we made a difference because we tried to do all the good we could, by all the means we could, in all the ways we could, in all the places we could, at all the times we could, to all the people God placed in our path.

Shepherd Your Business Well

I hope that you enjoyed this article and possibly learned something new.  Owning a funeral business is not for the faint of heart.  It takes everything you have to shepherd your business well.  You are not only caring for the families you serve, but you are also caring for your team and their professional development.  It is an amazing opportunity when you think about it.    In this series of articles about Strategic Evolution I keep emphasizing the importance of discovering your passion and purpose for your business.  I’m looking forward to continuing this journey with you and sharing more insights and expertise in our next exploration.  We are one of the lucky ones – you are one of the lucky ones. You can have a positive impact in our profession, on your team, and on the families you serve.  You have been given a gift in this timeline of history.  You have been bestowed with a profound responsibility: to tend to the needs of the walking wounded – the grieving. It is both an honor and a solemn duty to manage your business with utmost care and empathy, providing comfort and support to those who entrust you with their healing journey.

I’m looking forward to continuing this journey with you and sharing more insights and expertise in our next exploration. You have but one life to live and you have been placed in this timeline of history for a purpose.  What you do each day matters and has the potential to make a positive difference in the lives you touch. If you have a question or need a boost in moving forward, please call Steve at 815-601-3247 or Diann at 815-299-0100

With warm regards,

Diann Anderson