Archive

Funeral Operations/Training

 

LICE

With cash flow solutions being my primary emphasis in my consulting business for at need services, I am continually confounded when I learn that a funeral home does not utilize an insurance factoring company.  As many know, I pretty much believe in the “I’m not going to tell you to go to hell.  I’m going to tell you the truth and it feels like hell.”  The truth: Wasting in-house resources (time, personnel, effort, and overhead) to collect insurance is ridiculous. Now, you may not feel like hell, but you may feel unenlightened and marginally distraught.

If you don’t know how this works, please allow me to enlighten you, and in the process, offer your the families you serve, you, peace and payment!  When a family presents you a life insurance policy for the deceased, you may tell the family member that you will accept the policy to pay for their loved one’s funeral expenses.  However, the policy must be valid, non-contestable and the beneficiaries must assign the funds necessary to pay for the expenses to the funeral home. Tracking so far?

At this point, you also inform the family that your firm has engaged a company that will confirm the viability of the policy, accept assignment, and pay your funeral home the proceeds directly.  If the policy has more funds than what is needed for funeral expenses, the company will send funds to the family in about 4-6 weeks. The fee for this transaction is .0x% and that fee will be taken from the life insurance proceeds.  So, by using this process, your loved one has provided you a gift of life insurance to pay for their funeral expenses and it is a cashless event…no money out of pocket.Peace.Payment.

I can hear the rumbling and grumbling from the unenlightened.  “I don’t want to charge a family a fee.”  Let me ask this question, Skippy: “Why not?”  At best, Miss Edna is going to make several phone calls to insurance companies trying to track down your money…yes, it’s your money.  Why are you going to wait the customary 3-4 weeks for your money?  The family will pay for the convenience and relief of a “cashless event.” Oh, another question, Skippy:“Have you ever conducted the service, buried the casket or cremated the body prior to learning that the policy is not viable?” Brilliant. Now Miss Edna is on the phone trying to get the firm paid and guess what the family will tell you: “We don’t have that kind of money.” Miss Edna just has to become a collection agent because you refuse to use common sense and sound business practices.

Peace and payment for both you and the family. The family will pay the fee, certain they wont have unexpected bill later; you will get paid with surety and faster.  If the policy is declined, you know immediately and deal with it before the service. Read what I rant and write, DO NOT SIGN A FUNERAL CONTACT UNTIL PAYMENT IS SECURED!

This is one of many steps in the business of doing business that will keep your firm in a $0.00 accounts receivable status.  Want to know more? Email jeff@f4sight.com or jeff@atneedcredit.com.  Yep, I’m smoking a 6×6 Maduro blowing a thick cloud of smoke on the observation platform of the Command Post (West).  Cheers Y’all! #thefuneralcommander

 

Pick YP

The three “R’s” will literally poison a funeral home; Human Resources, Accounts Receivable and ‘Rithmatic. I recently attended The Foresight Companies funeral boot camp where my fellow recruits and I were provided an in-depth look at our funeral homes. During the three days of training, it became glaringly obvious that the vast majority of funeral homes are just a lawsuit, failed collection or miscalculation away from serious problems.

Human Resources: Does your firm have a Human Resources professional on staff or on retainer?  If not, here is an example of the poison I’m referring to that will make you spit out your coffee this morning. Perhaps you are a funeral home owner that crowns managers making them “exempt from overtime” so that you can go to your beach house and not work weekends. Yet the manager isn’t authorized to fire the funeral director that goes to the big church replacing them with a much better intern; and/or if said crowned manager cannot give the employee under their command a raise, you are in big trouble if DOL (Dept. of Labor) knocks on your door. The classification of “non-exempt employee” according to the US Department of Labor includes several more specific parameters such as managing two or more employees (mere supervision doesn’t count), and the authority to hire and fire, or establish compensation. In fact, the DOL can make your funeral home DOA pretty quickly over an overtime dispute. There are many more facets of HR that can poison your firm; these are just a few examples. Beware.

Accounts Receivable: Unless you are mega firm and have serious funds stored away, cash flow is king at a funeral home.  With the average funeral home in the US holding over $17,000 of receivables, financial failure is a real possibility.  Leadership, training and accountability are the collective remedies to reverse the AR poison.  However, the majority of funeral home owners simply ignore the slow death from drinking the tainted AR Kool-Aide rather than address the obvious and take charge of their business.

Rithmatic: Do the math.  I mean conduct a complete analysis of costs/overhead structure, then pricing, monitor and adjust.  I may be insensitive to those “running the ministry the grieving.” However, even churches pay attention to their books.  If you and your staff are not capable or you don’t have an accountant that conducts a complete P&L review including measurement of budget to outcome, hire a professional.  I know you love the families you serve, but you may love them to death-the death of your funeral home.

Yep, I’m a retired Captain and I have captioned the moniker of The Funeral Commander for a reason.  “I’m not going to tell you to go to hell, I’m going to tell you the truth and it may feel like hell.”  Quit poisoning your funeral home.  That’s the truth.  Oh, and a new one I picked up over the weekend (thanks Mark Fisher): No one gets offended by a statement that doesn’t apply to them.”

If you are offended, then you are drinking the 3R poison and fooling yourself.  Want to get off the Kool-Aide?  Email me jeff@theharbesongroup.com and  let’s set up a time to chat. If not, plan your own funeral home funeral…but of course, that’s a post for another day. From the blurred and smoky Command Post, Cheers Y’all! #thefuneralcommander

 

Doc

I recently visited my cardiologist for my annual checkup (yes, to make sure I have a heart). The process at this practice starts with me on the scales (ugh) and then escorted into an examination room for nurses to take my blood pressure (120/82) and ask questions updating my health habits. When asked about smoking, of course I proudly shared my cigar affinity (’till death do us part) only to be met with scowling looks.

A trainee nurse was taking all the information and conducting the vital stuff with a seasoned nurse providing oversight.  The trainee used software while entering my information on a tablet device.  I didn’t think much of it until the cardiologist came into my little room (35 minutes later or course).

Upon entry we shook hands, chatted a bit and then he opened up his laptop (see photo above). Immediately I asked the physician permission to take a photo of him (not showing his face). I explained why, and he complied.  He also showed me the software he uses providing my entire medical history and information important to him on a dashboard.

Not long ago I was part of a lengthy discussion with funeral directors regarding their opinions using computers during funeral arrangements with families. Needless to say, there were quite a few emotional responses (imagine that with funeral directors). My favorite was “Using a computer with families is unprofessional” and “You have your head down typing and can’t look the family in the eyes while talking to them.”

Two problems:

  1. “Unprofessional” to use a computer in arrangements?  I suppose physicians, financial advisers, bankers, CPA’s and the “other professionals” have it wrong! Certainly the information they are entering is far less important than what funeral directors have to capture.  Only the “other professionals” make so many mistakes and spelling errors that they really need to use a computer when dealing with their patients or clients.  Without a doubt, the handwriting funeral directors “care more.”
  2. “Head down typing.” Really? If you learned how to type or truly could become advanced by sharing your laptop or tablet screen on a 60 inch TV, the family could watch as well as participate in the process!  By the way, who writes without looking down? I’d love to see how that turns out.

It’s time for our industry to align with other professions by investing and training funeral directors to become proficient at basic business skills. “I can’t type on a computer” or “I’m not comfortable using a computer.” is simply unacceptable.  Go to a community college, ask a 7 year old to teach you, get trained, and step up your game.  Funny how fear and reluctance of change actually inhibits professionalism and service; it’s the little things that count.  It’s time to #Fnchange by getting your #FNhustle on to build a better #FNbrand for yourself and your funeral home.

From the foggy cigar smoke filled Command Post, Cheers Y’all! #thefuneralcommander

 

THG Innovation Leadership

What are the top three obstacles funeral homes are facing that challenge their success? The seriousness of this question muddled with chatter about all sorts of unimportant blither; car model/style, which embalming fluids are best, pants, skirts or white shirts, discounters, direct disposers, the funeral consumers alliance, showing/not showing prices on websites, have a talk, talk about someone else, casket color, urn type, which organization to join, corporates, family owned, and so on. It’s time to address important matters, initiate solutions and take action.

Declining revenue and profit is placing severe pressure on the overall funeral home market. To make course corrections a funeral home has three options:

  1. Raise prices.
  2. Increase market share (conduct more calls).
  3. Cut costs.

Perhaps a combination of all three are necessary, however firms require a complete professional analysis of overheads, pricing and operations.  Identify gaps, create new processes, train staff to follow the specific processes, and measure results. Measurement and training are ongoing, not an annual event. This is quite a simple solution; however the majority of funeral home owners lack the will and ability to make this type of commitment to hold everyone employed in the business accountable including themselves.

Embedded in the solution of re-calibrating financial stability is training. Let me be clear, there is a difference in education and training.  The funeral industry plays patty-cake with training funeral directors post school and license testing. There are no ongoing or relevant pass/fail requirements once a director finishes school and national/state testing.  For the most part the CEU’s offered and presented are a serious waste of time. We all know the truth: sit through the class, sign an affirmation of attendance for credit, and return to the funeral home doing the same old thing the same old way.  There is not one problem in the funeral industry that could not be corrected by training.  Training is behavior modification.  Don’t think so? A young 18 year old man fresh out of high school is trained in the military and in a short few years work on gazillion dollar equipment leading two or three more under his supervision.  In five years the same young man is leading five to ten people with multiples for the future.  Training change everything, however it’s non-existent in regular funeral home operations or priorities.

Management abounds and leadership is rare.  Many owners rather be liked than respected simply refusing to demand behavior modifications of the very people that receive checks from their own funeral home payroll. Most owners do not possess the ability or wherewithal to “take the bull by the horns” of their own business.  They are too cheap, prideful or embarrassed to raise their hand asking for help from professionals that have the acumen to provide analysis, solutions, training (behavior modification), measurement and accountability.

A funeral home can overcome barriers by analysis, implementation, training, measurement and leadership. The seriousness of the problems above are evident in P&L statements, national statistics (consumer trends) and the continued decline or funeral revenues. I solicit comments, opinions and of course refute of the content of this post.  From the smoke filled Command Post, Cheers Y’all! #thefuneralcommander

 

How to Implement Change in the Funeral Home: An Interview with Jeff Harbeson, The Funeral Commander

Posted February 24, 2016

8 min read

We sat down with Jeff Harbeson, a retired military Captain and funeral home owner/partner, also known as The Funeral Commander, to get his insights on how funeral directors can follow best practices to implement change in their firm. Read on to also see what Harbeson recommends to funeral home leaders who are looking to help their staff better empathize to have greater perspective with grieving families.

Jeff Harbeson: I am a retired as Captain with 20 years of service, including deployment to Operation Desert Storm and a TAC Officer at Officers Candidate School where I taught over 400 non-commissioned and enlisted soldiers to become leaders. I began my funeral industry journey first as a casket sales rep taking me to today as a funeral industry leader operating multiple businesses within the industry.

Those businesses include two successful funeral homes, the TouchPoints Six Sigma funeral home operating platform, an online cremation service, an at-need payment company, a successful consulting company and co-host of the Funeral Nation show. I felt that The Funeral Commander would provide a perfect description of my military and funeral leadership experience.

Q: What is your advice for funeral directors who are looking to implement change? What can they do to support desired change in their firm?

Jeff Harbeson: Before implementation of any change, one has to acknowledge that a problem exists and understand where to initiate correcting the problem. When I first started this journey in the funeral industry, I wanted to learn everything I could about the processes, operations and costs of a funeral home. However, I could not find consistent or credible information simply because no real training existed to find the answers to my questions.

Before implementing any sort of change, my advice is to understand the process or problem and determine if change is necessary. The next logical step is seeking solutions to take corrective actions. Then rebuild the process, train and implement.

One factor to consider is identifying the audience that will be affected by the change. If it’s the funeral consumer, then you also must take into account that behavior modification (training of funeral directors) and monitoring of the process has to take place.

An analogy would be if you’re a baseball player and striking out frequently. You would have a coach analyze your swing so that he could teach you to take corrective measures. After modifications are made, then the hard work of practice and implementation takes place.

My team and I created a complete, alpha to omega six sigma based funeral home operating platform called TouchPoints. TouchPoints identifies every possible step that a funeral director and staff take, and we train multiple times per week to follow those processes. This system allows us to manage workflow and easily identify problems when they occur to take quick corrective measures. Again, back to the baseball analogy: there is a process in place for professionals to follow and they are in continuous improvement mode even practicing before a game.

Unfortunately, the funeral industry has hurt itself simply because once a funeral director gets out of school and gets hired to work, the general funeral home training program consists of: follow me and do what I do. The “trainer” may not have the best route to follow thus perpetuating the problem for the new director. Our system actually provides such great training that new hires, even if newly licensed, are making funeral arrangements on their own in a matter of weeks.

From a funeral industry training standpoint, we have CEU’s however in many cases are a colossal waste of time and resources. Many CEU’s have no intrinsic value to a funeral director and no “teeth.” Many times a funeral director is basically sitting in a session for an hour simply to sign off on a paper and get credit for attendance. No measurement of proficiency, just pay a fee and get credit. TouchPoints has a series of training programs so that our funeral professionals are performing to standards proficiently and are continuously sharpening their skills.

Returning to the question: you have to train to make change—just like professional baseball players take batting practice before a game. Making change takes intentional leadership effort and consistent relevant training for provide a solid foundation.

I can’t think of one issue or subject in the funeral industry that could not be corrected, addressed, or changed without training. From my point of view, training is behavior modification and it’s impossible to make corrective measures nothing is in place from the start. The majority of funeral homes have no training program or process in place to make changes.

Q: When looking at the entire experience a family has with a funeral home, it can be valuable for funeral home professionals to “see” that experience from the family’s perspective. How can we teach or train our staff to see this perspective?

Jeff Harbeson: Funeral directors meet with families during a time which most agree is very difficult. Part of our funeral director using TouchPoints for arrangements includes roll play. We actually get the funeral director to plan their own closest loved ones’ funeral. On top of that, we also have the role-playing director to make choices based on their own financial resources to pay out of pocket. It’s a valuable training session and enlightening for those that are fortunate enough receive. Without ever “wearing the shoes of the next of kin,” the anguish is only observed and not experienced.

Jeff Harbeson: Funeral home operations, in general, have not changed at all and many funeral homes are still serving the consumer the way they did 50 years ago.

However, the consumer has made a tremendous shift in several different directions. For example, consumers know more about our business simply because it’s readily available on the Internet. Twenty-five years ago, consumers had to actually visit a funeral home if they wanted information. Also, the way we communicate has completely changed. Therefore, the consumer is researching and making decisions however many providers have not adapted to using technology to reach the “undecided” consumer with relevant messaging.

In the past, a funeral home was in a community and if someone died or needed to make inquiry, they would physically visit the funeral home to get information from a funeral director. Today a consumer sits in front of a computer and conducts their own research without leaving the comfort of their surroundings. If a funeral home website or social media provides the information sought after, the consumer may then inquire. However, if the website is too “funeral-esque” (like playing piano music when you land, or funeral-wordy), the consumer moves on to other sources.

The trend of people separating from organized religion is a factor that requires attention. If a family is not affiliated to a particular faith and does not think that ceremony is necessary, that’s a problem for many funeral homes with significant investments in real estate as well as recovering revenue from funeral services, visitations, and wakes.

Another significant yet not widely addressed trend is how we are serving financially struggling families. The typical American worker earns less than $50,000 per year. Forbes recently posted a story about how 63 percent of our consumers don’t have$500 cash to pay for an emergency. As a general rule, funeral homes provide no training to their directors how to address the needs of financially struggling families.

Everything comes back to training: how do we address or how do we adapt to emerging trends? We need to know what we offer meets the demands of consumers. Identify those gaps, create a solution, train, monitor and refine.

About Jeff Harbeson, The Funeral Commander

Jeff Harbeson is Founder & CEO of The Harbeson Group which provides leadership on the battlefield of funeral industry innovation. By developing strategic alliances and relationships with other influencers to execute his visions, several successful companies were launched. Jeff is one of the Founders of Family Choice Funerals & Cremations™ as well as the Select Cremation™ brand of funeral service providers. Additionally, Harbeson and team developed a proprietary Six Sigma based funeral home operating platform, TouchPoints™. Also creating At Need Credit™, the company became the funeral industry leader providing loans and payment plans for consumers to pay funeral expenses. As a funeral industry entrepreneur, Harbeson pens the well-known blog, The Funeral Commander and he is also co-host of theFuneral Nation TV web show with social media expert Ryan Thogmartin.

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TFC2

I have conversations daily with funeral directors nationally about funeral payment plans and collecting full GPL prices prior to engaging in a funeral contract.  More often than not I get questions from funeral directors: “What if the family?” I’m going to address some of those questions I get from the field.

What if the family does not have any money?  My immediate response (and yes we have trained our staff and we actually give the same response when asked in an arrangement session): How much is no money?  Not anecdotal, but I literally witnessed this same question posed to a funeral director and the family ultimately paid over $15,000 in cash for a complete funeral!  Does your funeral home train how to provide a response?  When a family says “they have no money” what exactly does that mean?  Most funeral directors dive straight to the bottom without engaging further to better understand the financial posture of the people they “are directing.”  The appropriate response is: “How much is no money?”  Then, close your mouth, listen, when appropriate inquire more, and then create a solution that suits their budget.  I know you’re sitting there saying “what if they have NO money?” Back at your here, what do you do?

“What if the family does not qualify for a loan at FuneralPayPlan.com?”  You go back to the drawing board.  The next step is to let the family know that you will accept a minimum of X% (our firm requires 80%) up front in cash, credit card or life insurance assignment.  The family is required to sign up to pay the balance on Simple Funeral Payment Plan which requires them to allow withdrawal from their bank account, not just get billed and send in a check to your funeral home.  By the way, if you are billing a family and charging interest (1-whatever %) and you did not provided a TILA (federal Truth In Lending Act statement) and/or their calculated APR, your firm is most likely out of federal lending regulatory compliance.  No funeral contract is signed by the funeral director until the payment is secured.

“What if the family can’t come up with the X% up front?”  You are offering them the wrong service and products; they simply can’t afford the current services or product selections!  I wrote about this a while ago “I Only Have Bus Fare But I Want a Cadillac” and basically once you know that a family can’t afford what you are offering, then you must change their options.  If not, you are part of the problem.

“What if the family gets money from FuneralPayPlan.com deposited in their account but they use it to buy something else?”  Well, I guess I can only answer this one: “here’s your sign”

TFC1

I have much more to say from experience and training firms to cash flow better for at need services, so this subject will continue in other posts. This post will generate enough fodder for those that #FNhustle and want to make #FNchange; so feel free to contact me to initiate training to make positive steps to build your #FNbrand. Of course, the others will simply smirk and continue upon their path of “often wrong but never in doubt.”

From the smoke filled Command Post, Cheers Y’all! #thefuneralcommander

 

change positions

Funeral directors meet with families during a time which most agree is very difficult.  Arranging the funeral of a loved one is stressful and often the necessary decisions made are clouded by varying emotions as well as grief.  Part of the regular funeral director training provided at our funeral homes for arrangements include role play; our funeral directors plan the funeral of their closest loved one in detail.

The role a funeral director performs is to provide information so the family can make educated decisions.  Without ever “wearing the shoes of the next of kin” the anguish is only observed and not experienced.  I have personally been part of this training and I can attest how emotional the process may be, even in a training environment.

I have conducted funeral home training on this subject and the results were enlightening.  One of the interesting scenarios created was that the deceased loved one had not pre-planned with a trust, had no life insurance and the expenses must be paid out of the role playing funeral directors personal resources.  As you read this, put yourself in that position; it’s up to you to pay for everything you select for services and products right now out of pocket.  Ask yourself; what would that do to my current personal financial status?  Having this thought in mind, would you buy the best of everything?  What would your choices be if you we financially responsible for the goods and services selected today?

When meeting with families, it’s natural to wonder why sometimes the decisions made seem to be other than what is customary or expected.  On top of financial stress, family dynamics enter the picture sometimes.  Just like many of you, I have personally witnessed strained funeral arrangements with a bad cocktail of financial woes and family discourse.

Finally, I know many funeral industry professionals that experienced unexpected loss of their spouse, child and parent.  After talking with some, their perspective of wearing the shoes of the people they normally serve changed.  If you are a funeral professional and lost a loved one, you know the angst.  Otherwise, think about conducting funeral director training for arrangers and changing shoes with those you normally guide; it may have lasting impact.

Funeral News! Ryan and I recorded our inaugural Funeral Nation TV web cast show that will be aired October 6th…I am certain you’ll enjoy the FN show! From the desk of The Funeral Commander, Cheers Y’all.  #thefuneralcommander #funeralnationtv

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