winery

6 Traits- What To Hire For:

Benchmark-logo_trans 2

 

Celebrating 21 years in the Wine Industry

 

There’s two things you need to know, right off the bat, about these hiring criteria.

First and most obviously, the six criteria on Danny’s list are psychological traits, not technical skills.  Even though it is generally easier to hire for technical skills, whether they are knife skills in the kitchen, great customer-centric leaders like Meyer feel confident that they can teach technical know-how to almost any newly-hired employee, but on the other hand find the idea of teaching empathy, teaching work ethic and so forth to be essentially a fool’s errand, much better addressed in the selection process than in post-employment training and discipline.

The second point is this: Even though you’ll be hiring for personality traits rather than technical skills, you still need to develop highly-skilled employees before they even face the first customer. Otherwise, you’re doing your customers (and your company) a huge disservice.

 

Meyer: “I used to think that you could just hire people for their emotional skills and if they had the six essential emotional skills, that’s all it took. I learned the hard way that you can’t unleash somebody’s hospitality unless you have first completely drilled all the systems, the technical skills and know-how that are needed, to a point of excellence.”

In other words:  These wonderful, warm personality traits that you have hired your new employees for aren’t going to manifest themselves in ways that are useful to your customers until the training for skills is complete and has become second nature.

Meyer compares this to learning to drive a stick shift.

I remember when I first learned to drive a stick shift [as a teenager back in St. Louis], I had absolutely no idea what I was doing. And until I had learned to be proficient at doing that, I wasn’t having any fun while I was driving. I wasn’t switching the stations on the radio dial. I wasn’t telling jokes to my friends. I wasn’t pointing out the beautiful trees on the side of the road.

At that beginner’s stage, I was “all systems all the time.” But once I learned those systems, how to shift gears, find a sticking point when I was on a hill, all those kinds to things that are really taught. Once I cleared all that out, that’s when I could get back to being myself and pick the best music for whoever was in the car, tell jokes with people, you know, enjoy the scenery.

So even though the emotional skills that lead to hospitality are not really teachable, but they are also not revealable until first you’ve learned the systems, the technical side of getting the job done.”

Meyer and his Union Square Hospitality Group restaurants hire for what Meyer calls an employee’s “hospitality quotient.”  These are the six traits he feels are required for an employee to have the potential to provide true hospitality to the guests of his restaurants.

Here’s his list of six traits to hire for, which I’m using here with his permission and hope you find useful.

1. Optimistic warmth (genuine kindness, thoughtfulness, and a sense that the glass is always at least half full);

2. Intelligence (not just “smarts” but rather an insatiable curiosity to learn for the sake of learning);

3. Work ethic (a natural tendency to do something as well as it can possibly be done);

4. Empathy (an awareness of, care for, and connection to how others feel and how your actions make others feel)

5. Self-awareness (an understanding of what makes you tick;

6.  Integrity (a natural inclination to be accountable for doing the right thing with honesty and superb judgment).

Micah Solomon is a customer service consultant, customer experience speaker and bestselling business author, most recently of High-Tech, High-Touch Customer Service

 




The bankers’ view of wine

Banks are important to wine companies, as they are to other businesses. How the banks see the industry is important, for it determines how much money they will lend to those companies.

In the past few months, two major bankers to agricultural companies — including wineries — have disclosed their views.

In its 2012 Annual State of the Wine Industry Report, Silicon Valley Bank forecasts long-term steady growth in the fine wine business. It expects 7 percent to 11 percent sales growth in 2012.

Dan Aguilar, senior relationship manager for the wine division, said wine inventories are evolving into a state of shortage that will last for some time domestically. Meanwhile, prices for grapes and bulk juice are increasing as growers finally start to see recovery.

Aguilar does expect increasing plantings to feed the looming grape shortage though imports are taking larger market share in the U.S.

Bottle prices are also increasing, but he doesn’t expect a return to the price level prior to the recession. “It’s increasingly difficulty for third-party marketers that have sold with a culture of discounting,” he said; this includes competing with Internet sources that create a ‘Fifth Column’ sales channel.

He adds that so-called millennials as fine wine consumers are over-valued in their importance today.

An international banker to agricultural companies with strong ties in Napa, Rabobank reports that global wine inventories are tightening as wineries move to fill production shortfalls.

According to Stephen Rannekleiv, executive director of Rabobank’s Food & Agribusiness Research and Advisory group, U.S. bulk wine imports showed sharp growth in second quarter of 2012.

The Dutch-owned Rabobank, which bought Napa Community Bank in 2010, estimates global wine inventories are at their lowest point of the past decade. Indications are that the industry has finally moved closer to balance after years of oversupply problems. This tighter inventory arrives as consumer demand continues to grow and production remains constrained.

In the U.S., the wine grape market remains tight, with little domestic bulk wine available. Prices have increased dramatically leading many wineries to sign long-term contracts with growers or buy vineyards and other wineries.

Rabobank reports that the value of U.S. wine exports declined 2 percent last year largely due to the increasing strength of the U.S. dollar.

Imports, however, increased sharply in the first four months of 2012 as wineries sought alternative supplies in the tight bulk wine market. Bulk wine imports more than doubled with the greatest growth coming from Chile, Argentina and Australia.

Fortunately for wineries, this year’s crop looks above average.

Finally, the head of French-owned Bank of the West’s wine division, Adam Beak, notes that consumers are driven by value, and that’s not the same as cost. “A $2 bottle or a $100 bottle can be a good value to a customer.”

Beak says Bank of the West is the second largest ag lender (after Wells Fargo) and works with many wineries, specially on the North Coast.

Beak said that we are recovering slowly from the recession, but he says this downturn has demonstrated one thing clearly: Some wineries have done better than others, and it’s not necessarily due to their price, location or business model. “Well-managed companies are doing well. This is not a situation where a rising tide lifts all boats.”

The leaky ones will still sink.

Wine Industry Financial Symposium

To find out more about what’s happening financially in the wine industry, the 21st annual Wine Industry Financial Symposium is the place to be Sept. 24 and 25, at the Napa Valley Marriott.

Its theme this year is Thinking Positive – A Bright New Day For The Wine Industry.

For details, visit winesymposium.com.

The Business End by Paul Franson