Mar
10
Creative Memories by Cheryl Lightle
Filed Under Business Ideas, Resources, Principles, etc., Favorite Books, Free Book Summary - Online
Last night I researched network marketing and direct selling on the Internet and then went to the library to pick up a half a dozen books. I was the very first to check out Creative Memories: The 10 Timeless Principles Behind the Company that Pioneered the Scrapbooking Industry from the Provo Library. They hadn’t even placed it on the shelf. I felt a connection to the book before I even read it last night and this afternoon. Cheryl Lightle and Rhonda Anderson truly had a vision for doing something good for the world. Their mission sounded so similar to FamilyLearn. Starting in 1987 with 2 consultants and no formalized compensation plan, they pioneered the scrap book industry and in 2005 they plan to generate 1/2 billion in sales.
Here’s the book captured:
Purpose: What principles were behind Creative Memories’ success?
Central Message:
- Operate from least to most.
- Embrace the abundance mentality.
- Keep the promise.
- Make it easy.
- Communicate clearly and concisely.
- Protect the relationship.
- Respect personal choices.
- Go for the good of the whole.
- Don’t knee jerk.
- Ensure sustainability.
Before I give an overview of these, read the beginning of their mission statement:
Creative Memories believes in and teaches the importance of Preserving the Past, Enriching the Present, and Inspiring Hope for the Future.
Sound like the FamilyLearn mission? Because we are a business of people just as they are, I had a lot to learn from Cheryl in this book. Now for an overview for my future reference.
- Operate from least to most. Cheryl talked mostly about transitioning to technology after 1996. Their first attempt was a total failure and left a bad taste in the consultants mouth for the Internet. They learned to introduce changes slowly and give people time to respond. They really fought the temptation to overhire during the growth of the 1990s and tried to outsource everything. They didn’t want to fire people later.
- Embrace the abundance mentality. Don’t spend you’re time fretting about the competition! Just make yourself better than the day before. Competition means more recognition in the Industry (of course there was no industry when this company began).
- Keep the promise. Simply doing what you and your mission and your guiding principles say that you’ll do. At Creative Memories, they have scientists who test and develop new products so that they will be archival quality. They define very carefully what archival quality means. Interestingly, they are 100 % ESOP (employee stock ownership plan) and proud of it. The employee ownership inspires success in the company. They have a “Great Performance” for each person in the organization that defines what the employee-owner can do to ensure the performance of the big picture of the entire company, of the department and of the team. The employees are also encouraged to work on their own albums to have passion for what they are doing.
- Make it easy. First for consultants to do business with the company, second for customers to do business with consultants and third for employee-owners to perform their job responsibilities. (Interesting that the consultant precedes the customer in this principle) For example, (1) they still spend lots of time on fax and phone orders because not all consultants like the Internet or feel comfortable with it. (2) They changed the packaging just to make it easier for consultants to dispose of it. (3) Resource One is a project to get the consultants onesies for their customers so that they don’t have to break open entire sets. This is not very profitable and a lot of work for the company, but it helps the consultants. (4) BusinessMate is a downline and business management software that they developed especially for team leaders.
- Communicate clearly and concisely. They explain “why.” They expect clear, concise and frequent communication that expect to be perfect, but they’ll accept excellence.
- Protect the relationship. This is very important to a direct sales organization. The business is built in relationships. Us, Not Us and THEM In the beginning they sold albums in retail while they were trying to define the business. They soon realized that they had to make a final decision about whether they’d be direct sales or not. It was self-defeating to compete with their distribution channel. This is a decision that we face right now. NOTE: customers make decisions to buy based on the following: (1) If they are treated with respect – 70 percent, (2) If they feel they are under no pressure to buy – 65 percent, (3) If they believe the returns policy and process is fair, (4) If they feel they receive outstanding service – 58 percent. All people related.
- Respect personal choices. This is important and most manifest in the way the compensate and give bonuses. Today, I read in an presentation encouraging golden handcuffs. The term bothered me a bit but I thought I understood the concept. Make more financial reasons over time that the top people will stay with the organization and continue selling it. Creative Memories doesn’t do golden handcuffs because they prescribe a lifestyle and the company feels that consultants and employee-owners should choose their own lifestyle. I like their style. I learned they use a UniLevel compensation model as described in this presentation.
- Go for the good of the whole. Sometimes, like when they discontinued their teal binder and many consultants complained, you have to do what’s best for the whole even if it’s difficult. In the case of the teal album, the discontinuance made room for the consultants to have more room in their inventory for more popular products. Only a few thousand out of 60,000 consultants were affected by the move. Give charitably where it will help the most people.
- Don’t knee jerk. They struggled with this in the beginning as a growing organization. Changes influenced all the consultants and they couldn’t make them too sudden or too often. However, when you make a strategic change with specific objectives in mind, you need to let it runs its course (sometimes taking over a year) to see if it produces the desired effect. Don’t go back on a change prematurely.
- Ensure sustainability. They have employee-owners work for other direct sales companies to understand and empathize with the consultants. They have executives be Creative Memories consultants to catch the vision themselves. These are good ideas. She also spoke of preparing the company to pass the torch.
Interesting things I noted in the book:
- 75 percent of their job is recognizing the consultants. Recognition as little as a consultant in ink can go a long way.
- They ship to consultants rather than to customers or party hosts.
- (not from the book) They don’t publish their compensation plan on the web for consultants, forcing you to contact a consultant.
- They assign pacing partners to each consultant to be their buddy and hold them accountable share friendly competition with.
- They say “When” rather than “If” when referring to bonuses and awards.
- Don’t say “no” Say what you can do rather than what you can’t. People need alternative solutions. I think about when someone offers me a job I can’t take. Do I refuse or do I refer them someone else I trust?
- They changed their main offices from “Corporate” to “Home” offices. It’s about US. An attempt not to alienate consultants.
- Alan Luce personally trains their employee-owners and is involved with DSA heavily.
- They have their employees do direct sells themselves.
Comments
1 Comment so far
I just became a consultant, and I was wondering if you have come across any stories about other men selling Creative Memories products. I’m excited about the opportunity, but I am also a bit apprehensive about selling to mostly women. My upline encourages me to market digital scrapbooks to men. That’s a good idea.
Have a great weekend.
Daniel in Nashville, TN