How to Manage a Partner Nobody Wants to Work For

0:00All right, let's see what else we got. Um Kristen Plumbing. All right, Kristen Plumbing, let's go. Kristen Plumbing, if you're watching this. >> Hello. >> Kristen Plumbing. >> Yes, this is Kristen Plumbing. >> This is Alex Hormozi Holland. >> [laughter] >> Hello, how are you? >> Good. Tell me about Kristen Plumbing.

0:25What's revenue? What's the problem? >> Okay, so the revenue is 1.2. >> Okay. >> is 350. >> Okay. >> 30% profit. >> All right. >> My husband and I own the plumbing business. >> Okay. >> And um Our Achilles heel right now is employee retention. >> Okay. >> So he's a he's a master plumber and right now we have him and one other plumber.

0:50And so they're generating the 1.2. And so let me just give you a very quick back story is Um I I run all the office >> Yeah. >> side of the business. He handles everything in the field. And so >> Got it. >> with what I said is employee retention, but >> Okay. >> I'm a little bit neither of us are good in that area. >> Okay. >> I'm a little I'm a little bit better, but my husband obviously should be the one actually doing all of that. So my question is how do we fix this problem? Do we hire someone to fill this role?

1:25>> When you say this role, when you say this role, what do you mean? >> Um I guess I'm thinking >> You do a 1.2. Head count's what? Five, six? >> Yes. Yes. >> Right. So it's you and your husband and then how many guys you got in the field, you know, technicians, whatever? >> Uh I would well, two plumbers including my husband and like one to three helpers depending on the project.

1:53>> Okay, so like just vendors, contractors? >> Yeah. Well, and and uh W- We have one full-time apprentice as a W-2. >> So, then what's the retention issue? Are you actually having issues retaining people or you having issues finding people? >> We're having issues retaining people. We're We're averaging about less than 6 months. We've gone through it and this has been for the last 18 months.

2:18>> Okay. Why are they leaving? >> Uh because they don't like I think I think it's they don't like how my husband manages them. >> Okay. >> He's He's very military, straightforward, do your job. >> Yeah. >> And you know, we offer good benefits and all the all the good things, but he he's not like He's tough and he's not the guy who's going to like build the camaraderie. So, we keep thinking can we bring in like a service manager who may perhaps who maybe can

2:46>> Yeah. >> also do some plumbing and fill that role and be like the barrier between him and the guys, my husband and the guys. >> Yeah. >> Yeah. Yeah. Yeah. >> So, what's your husband's name? >> His name is John. >> Is John with you? >> Um no, but I could >> No, you >> I can get him. >> Well, you can walk that way and keep me on speaker. So,

3:11>> Okay. >> So, I mean, basically, let me I'll say it to you this way. John not having the skill of being able to manage and lead people is going to cost you 150 185 a year. So, the options are that he can learn to change his behavior in such a way that allows people that they don't hate working for you.

3:39And you can make and you can save that money at the bottom line. Alternatively, you can say we're going to cut our pay in half and we're going to get somebody else who has that skill. >> Okay. >> I mean, those are like fundamentally like said differently the environment in which people are working needs to change. Either he will change or he needs to leave and then somebody else does the thing the right way.

4:04It will cost you more to bring somebody else in than for him to learn the skill the skill. But that's it that's a you call. Business-wise either choice works. One is obviously higher risk cuz you're increasing liability and and and and fixed costs. >> Wait, so what are my two main options? One one >> Hire somebody the service manager that we're just referencing. Hire service manager or option two your husband learns to change his behavior in a way that doesn't make people feel icky.

4:37>> Okay, so how did you come up with that number? How much it's costing us? >> That's just my get No, you said 350 is your total net right now. >> Yes. >> So, if we had to hire a service manager, I would imagine they're going to make 150-ish. >> Yeah, that's what I would assume. >> Okay. So, 350 becomes 200. So, 40% of what you make would go to the service manager.

5:02But they're only going to be managing an apprentice and one other guy. >> Well, then we would then actually be able to We already have two additional trucks that we don't have bodies in. >> Oh, her because you can't staff them. Got it. But do you have Do you have jobs? >> Yes, we have leads. >> Oh, well then done. Done. This isn't even a question. Don't even a question. Service guy for sure cuz even like yeah, done. That that that that was the that's sealed the deal. Done. Not even a question. So, then the question is how do you find a service manager you can deal with your husband?

5:31>> [laughter] >> It's still going to It's still going to ladder up to this. But I'll say I'll say something that maybe Layla, are you there? >> What? >> Are you want to You want to hop in real quick? How do we deal with people not being able to deal with me? >> I have no context. >> It's John So, John's here. He's He's hearing >> All right, John. So, here's the deal. So, Kristen and John own a plumbing company. John's out in the field. They've got one additional plumber and an apprentice. They've got more deals than they can handle. They've got two empty trucks and they can't have bodies cuz they can't keep anyone because John's a hard-ass.

6:01>> Yeah. >> So, they either have to I mean, my goal was like, "Okay, we'll hire the service manager, maybe take some of that off of John." But, then the service manager is still going to report to John. Or is going to report to you, Kristen. So, I was going to say, "How would How would you This is a This is a pure people people and AI masterclass from Leila." >> Yeah, so I look at it like this. What's your husband's name again, ma'am? >> John. >> John?

6:27>> John, yeah. >> So, there's the business. Can you see what I'm drawing? >> Oh, jeez. No. >> If you're not, go on YouTube. >> All right. So, like you're >> You're good. >> There's your business. And then And then there's John. And then the the the bubble of your business, John doesn't come into that bubble. >> [snorts] >> John stays in this bubble.

6:51>> This is how Leila manages Alex. >> And then John gets to be Santa Claus. >> [laughter] >> And you get to be the Grinch. And I found that that works incredibly well. And uh yeah, I had a one of my first mentors who said he took the whole business and basically circled all the departments except marketing and said, "Alex, you you do the marketing and then Leila, you take the the rest of it. And by the way, the people still report to you, Leila."

7:21And that worked out well for us. >> Greatest moment of my life. So, I'll tell you the story. So, we paid, I think, $50,000 for a day of consulting from like an operations person. And so, he said, "Hey, I want you guys to write on this whiteboard everything that occurs in this business. Like, what What are all the jobs and tasks that have to get done?" So, we write down this whole whiteboard covered with stuff that that and I are both doing. And so, then he takes this marker and he circles everything, like every single thing on the board minus marketing, and he's like, "This is all Leila's." And I was like, "I love this guy. We should pay him double."

7:51>> [laughter] >> And you know why this is good for you is think of all the skills you're going to acquire. >> Yeah, absolutely. And this this kind of aligns with our personalities. >> Oh, good. >> Yeah, so like just lean into your strengths. Like if you're more of a people person and him being on the field makes problems, then you just do that. I mean, we talk about it openly with our team and it's always like, "Okay." And we even talk openly like, "Alex, you always have a project to work on cuz if you don't have a project, then you're going to want to come in." >> And break And then people are going to get mad and quit.

8:20>> That's what I do. >> I mean, like there's no there's no shame in the game, you know? >> No, for sure. I I I John, just to make you feel a little better, I'm 0 for 11 on EAs. And the And the common And the common thread between >> to me now. >> And the common thread between me and the 11 of them is obviously them. So. >> Hilarious. >> [laughter]

8:45>> No, but now the EAs all report to Leila because I am too difficult to deal with. >> Yeah, so I guess the question then like isn't that going to be confusing for the guys on the field? >> Not really. It depends if it's a technical thing or it's management. I think that's probably a key key difference like You want to explain the the difference between like >> Well, just because you get information from somebody doesn't mean you need to report to them. So, you know, if you look at like a RACI matrix for example, it's like who's responsible, who's accountable, who's consulted, and who's informed. It's like they're going to consult with John and learn from him, but that doesn't mean that they're accountable to him and that he's responsible for them. You're responsible for them and they're accountable to you, but they make it consulted by John and then he gets informed about how they're doing. It doesn't mean that they're going to report to him.

9:28So, you know, >> All those managers are reporting to me. >> Yeah, so for example, you know, in our business, so you know, Alex has a media team, like technically they report to me, but they talk to him all the time. But they're not talking about how to grow the team, how to manage results, KPIs, you know, infrastructure. They're talking to him about the media. The art. So, that's the differentiator that you have to have. >> The art. >> Okay. >> The artist. >> Okay.

9:54I think it'll work way better and you guys will be way happier if you have that. Cuz also like you want to have your own swim lanes and like know where you got to, you know, fit in and swim. And just keep swimming. >> John, wouldn't it be great if you didn't have to anybody report to you and you could just like train them on how to do the stuff and then somebody else can manage their emotions and things. >> Yeah, that I mean manage the emotions thing. I think that hit it right on the the nail on the head for sure.

10:20It's a it's a difficult thing for me to do to manage people's emotions on a daily basis. >> I get it. >> I get it. >> Preaching. Preaching to the choir. All right. So, that that'll help you guys out. >> Yes, very much. Thank you so much. >> Yeah. So, the action item is hire the service manager. That guy reports to you, Kristen. And then John, you're just basically the you you're lead technician, right? Like when they have the most complex issues, they don't know how to do something. You they call you, right?

10:47>> For sure. >> If the guys are like, "Hey, what do we think about this brand idea or what do we do What about this this copy or this hook or this angle or this video or this whatever?" They're going to come to me to ask me about that. But if they're like, "Hey, I'm having a problem with Tommy." I'm like, "I don't know. That's not me. Not my problem." Well, they know not to talk to me about that. So, they just don't. But like that's it. >> And if you just remain scary, they just won't come to you eventually. >> That's the key. And another good one is that whenever they message you, just don't respond and eventually they stop.

11:14>> ghost them, they'll stop talking to you. >> That's the key. >> Oh, yes. That's awesome. >> I got you. I got you. >> clearly been where we are. >> [laughter] >> It's like we know. >> Well, I appreciate you guys. Donate some books and and I can't wait to to hear how the business goes. >> Yes, absolutely. Thank you so much. >> Thank you guys. Appreciate you. If you like this video and you're business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out.

11:50Again, absolutely free. And since you're business owner, I appreciate you and enjoy.