In my previous blog, I made a commitment that this site would become a resource site for identifying problems and utilize subscriber interaction to find solutions. I am committed to ending the rants that simply pick at the problem. The content from that blog elicited a great conversation on my Facebook site.
As we deal with the issues of our day, it is obvious most everyone is frustrated with our economic situation. Whether there is any one solution to the mess is quite debatable (see my Facebook conversation). That said, there is an opportunity for all of us to learn and collaborate and grow in the face of this adversity. The economic mess is a great challenge for all of us. Right now, as people are losing their homes, their jobs, their retirement, and their minds, the discussions around the economy are highly charged and very emotional. To that end I would encourage all of us to try three things as we discuss the pain, the challenge and the resolution to this mess:
1. Don’t look back: This is a new day with new issues. Whatever decisions, choices and policies that have been made cannot be undone. We can only create and implement new ideas and new visions to the challenges. Knowing what you know today, what do we need to do to really address the issue? And, how will that really help?
2. Listen for the opportunity: Too much of our communication today is about listening to people from where they have historically stood or believed. This enables us to shut down the conversation because we already know “where they are coming from.” Change that. Listen and explore the opinion, the thought, or the idea. Discuss and truly listen for the opportunity to learn, understand and adapt to differing opinions and beliefs. Of course, that would require a commitment on your part to be willing to modify, not protect, your opinions. Listening for the opportunity to develop an idea or solution through interactive dialogue is how great things are accomplished.
3. Take the time to listen to a different voice: We all have our favorite editorials, media voices, and information resources. We embrace them because they reflect what we know and believe. They speak our language in ways that effectively resonate with us. In this time of turbulence, the opportunity to listen to a different voice and look for the opportunities in their message is very powerful. These are unsettling times. It is time we got a little uncomfortable with different perspectives and explored new viewpoints. There is opportunity in opening up to the learning process. (Kudos to Leslie Knowlton for this suggestion.)
As Leslie says, “Until each of us understands our individual contribution to the problem we cannot move the blockages we are currently experiencing.” Let’s enjoy and embrace the opportunity to try out a different set of opinions and truly listen to and learn from them.
It seems there is a trend these days to find someone or something to blame for the various occurrences in our lives. Whether it be the current economic mess, the failures in our business or place of work, the collapse of the US auto industry, the problems at our kids’ school or just about any sporting event. When something goes wrong, someone is to blame. Blowhard pundits and broadcasters like Rush Limbaugh have made a career out of criticizing everyone who disagrees with his view of the world. They often make it quite clear they are absolutely not the one we blame for the problem. Worse, they are rarely the ones who want to figure out and put into real action what needs to be done to fix, correct or improve the situation. These people are not really helping they are simply inciting. As a society we cannot fix any problem without taking real corrective action. True leadership is making a commitment to effectively guide people to accomplish great things. We are a society looking for leaders. We are not looking for more people to remind us of all things we need to blame people for.
Recently I posted a blog on the word “should“. I noticed that often people would use the word “should” as a way of assigning responsibility to someone else for fixing or correcting a problem or an issue. I have noticed that in many of my blogs and commentaries I do a great job of pointing out the problem: mismanaged business, poor sales behaviors, everything that is wrong with customer service and support, and even more things that really stink about the whole auto mess. I have done a great job of identifying the problem. I have been pretty effective at trying to assign blame. And, I have come very close to telling others what they “should” do to correct these issues. I have only scratched the surface at how we fix these problems or create answers to avoid them in the future. That is not enough. We need real solutions to these very real problems and challenges.
I am committed to utilizing this site as a better forum for solutions and ideas. A forum where we discuss the challenges that we face and find ways to start to create fixes for our problems. We do not need any more people telling us that someone is to blame for this mess, we already know that there is always someone to blame–even if we are wrong. What businesses and individuals and families and owners are looking for is answers to the many things that are not working for them today.
I need your help, your comments and your involvement on this blog. Let’s start solving some problems together. Instead of simply reading this blog, join me in the conversation and in finding solutions. Respond, ask questions, disagree, offer opinions and ideas, engage in a written conversation. That is what true blogging is all about. If this blog is to become a forum for ideas and problem solving it requires the engagement of many. Get in the game and start sharing. It will help us all!!!
One of the more obvious causes of our economic mess is the creative changes applied to the banking rules and standards. According to Adam Davidson, “banks were lending money to people who couldn’t afford it so they could buy houses that should never have been built. The banks then turned the mortgages on those houses into ever-more complex financial instruments that are now nearly impossible to value. Then the banks sold all that bad debt all around the world and made sure they got into every nook and cranny of the global economy.” The path to prosperity–a new home, better returns, quicker profits–were all stymied by the old rules that governed our economy. In the name of progress we deregulated those systems and created a new standard that lowered the requirements, the rules, and the overall governance of our economic system.
It seems like we haven’t really learned anything yet. Government Motors (the ‘new’ GM) fearful about the real and impending doom it faced as a result of generations of gross mismanagement, takes a shortcut and coaxes what will be $100 billion out of the federal government to get it through a managed bankruptcy. Once again the rules are changed to make businesses less accountable and to lower the standards for competition and executive oversight.
Finally, this past weekend featured the last of horse racing’s Triple Crown, the Belmont Stakes. There has not been a Triple Crown winner since Affirmed in 1978. It has been over 30 years since there has been a Triple Crown winner prompting legendary horse trainer D. Wayne Lukas to call for a change in the standards to make the Triple Crown more competitive (read achievable).
Why change the rules? When there wasn’t a winner from 1948 until 1973 were people clamoring for a change in the rules? No. The standard was set and accepted and passionately chased. Just like much of everything in our society today, the standards seem too high, too hard, too improbable, so let’s just lower them or change them.
We are starting to establish a dangerous precedent for our society. If things get too tough, too competitive, too long to achieve, we simply want to change the game–block foreign competition, protect jobs from going overseas, prevent the import of a better educated worker, create new accounting standards, etc. Face it, this is a global economy and the competition is fierce. You want to win at this game, work harder, be more innovative, change your game–don’t simply take shortcuts or try to change the rules. It is time for our society to step up and toughen up. Put some accountability, responsibility, and innovation in your life and your business at today’s standards and you will be amazed at the results.
Looking for inspiration and support with your sales activities?
Need that little something extra to get you through those tough sales calls?
“The Sales Cooke” has the answer. You do not have to make that first sales call commute alone anymore.
Introducing “Driven to Success” a powerful mobile mentor featuring “The Sales Cooke”. In this collection of on-air radio segments drawn from “The John Adam Show“. “The Sales Cooke provides you with his Top 10 Training Tips and shares his insights into the keys to success for every sales professional. Each 10-minute segment is filled with inspirational ideas and proven growth strategies designed to inspire the best of the best. It’s a perfect “ride along” to your first sales call of the day!
The Sales Cooke’s tasty learning morsels includes:
Reality check: Just because it is valuable to you, do not expect it will be of value to me!
Too many sales people and business owners get all excited about the wonderful things associated with their product. When I ask them about the benefit of their offering they can excitedly list a litany of all the fantastic features and benefits and competitive advantages they provide. So what?
I understand that they are passionate about what they offer. I am thrilled that they have found so many points to get excited about. In reality, I do not share the same enthusiasm or interest. As a potential customer, I am more interested in what this product can do for ME!
“One man’s junk is another man’s treasure“. I can only find value in the junk that will help me with my needs, challenges, and issues. Remember, people only purchase something for one of four reasons: It saves them money, it makes them money, it solves a problem, or it fulfills a need. Until you understand what their buying motivations are, all you are promoting is your passion and excitement over your “junk”.
In the early phases of my client engagements they talk to me about getting customers and prospects to make decisions. They talk about how their product can save their clients time, money, payroll, people, customers, etc. What my clients have not realized yet is that they do not know or understand the view from their customers perspective. Until you know (meaning they have specifically and directly told you because you asked great questions) what your potential customers are looking for you have no way to position your junk as having any value. Remember, what you are selling may be very valuable to you. Until your customers recognize the value it provides them, you are simply and passionately raving about your “junk”. Take the time to learn about your customers motivations, interests and needs and then you can simply share with them this wonderful little treasure you have discovered that can help them. Done right, your customers will see the value for themselves.
Two other resources with perspective on this topic:
The future of manufacturing in the US - is it really a strategic requirement?
In the shadows of the recent activities to preserve and protect the US Automotive industry, specifically the government’s intervention in saving Chrysler and Government Motors (the new GM), the question regarding the criticality of US manufacturing is an interesting one. First, let’s quickly review the harsh realities:
1. Economics: As global manufacturing capacity continues to increase as it has since last June, any effort to protect a manufacturing oriented industry is probably a wasted effort. The fact that capacity continues to increase, prices will continue to fall. With a decrease in prices, higher wage countries like the US, will have an increased difficulty in maintaining and protecting its manufacturing base. Unless costs like wages, land, and overall operations are significantly reduced, the US manufacturing sector cannot be cost competitive especially in an era of significant capacity.
2. Evolution: According to the research of Walt Rostow there are five stages of economic development. The fourth stage describes an economy that produces a wide range of goods and services and a diminished reliance on imports. Transition to the fifth stage, the economy is focused on the mass consumption with durable industries flourish and the service sector becomes more prevalent. I would argue that our economy has started to move past the stage where manufacturing is at the core of our economy. Our economic cycle cannot sustain a manufacturing focus.
The Solution: The key to the American ideal has always been our ability to innovate. When we go to such great lengths to protect a truly global and very mature domestic industry with the capacity and the economies to produce vehicles cheaper elsewhere, we are losing sight of the real issue, our own reluctance to truly evolve. This is exemplified by an educational system that is deficient in educating our future innovators and risk-takers, by our financial institutions which have fostered and embraced a culture of immediate and unrealistic return on investment and a government which is focused on preserving aging institutions, like the US auto industry, at the expense of rewarding and funding technological innovations like high speed rail systems and alternative energy programs.
This reminds me of the campaign pledges made in the state of Michigan in the 2006 gubenatorial campaign where incumbent Governor Jennifer Granholm pledged to the workers that she would keep manufacturing jobs in Michigan. It is what the workers wanted to hear. It is not what they needed to be told.
There comes a stage in every economic cycle where the economy must evolve, or die. Michigan is the bell weather of our reality. Where is Michigan today? With record unemployment and massive losses in housing equity it is in a state of economic disaster. I am not saying that could happen to the entire US economy. However, the myopic preservation of manufacturing jobs can be that detrimental to effective evolution in a struggling economy.
Protect US manufacturing at all costs? I think not.
Invest and reward in those who innovate and take risks? Money well spent.
In conducting my sales and social media seminars, two of the most important components associated with a successful program involves listening and learning. In his recent blog, one I highly recommend you subscribe to, Kyle Lacy talks about “listening, then responding” and the importance of realizing that, in social media, people want to be heard first. He correctly refers to the shift in consumer behaviors stating that “the consumer is now in control of the conversation. Businesses who jump into the conversation and broadcast a message but fail to interact are failing miserably at the art of marketing within social media.”
The same is quite true in the sales arena, as well. People are not looking to be pitched. They do not have the time or the interest to listen to other people chatter about the many virtues of their product. Whether they are consumers, clients, or customers in the B2B or consumer arenas, people want to be heard and understood first. If your sales, marketing, and social media strategy does not recognize this and does not actively engage in the process of “listening and learning” then you are positioning yourself for failure.
Presenting at a Social Media Strategy Training program yesterday, I documented my educational definition of social media. The keys to this definition are understanding the importance of the Four C’s: Communicating, Collaborating, Connecting, and Collecting. In educating business owners on the potential for social media in their business, understanding the importance of the conversation and of listening and learning from that conversation is how a social media strategy and program become a powerful tool.
As we watch the US automotive fiasco unfold before our very eyes, the consumer is faced with a new set of very interesting choices. Do I buy from a foreign owned company? Do I buy from a government owned company? Or, do I support a struggling US based company trying to turn the business around without the benefits of a “controlled bankruptcy” and government funds? Respectively the choices are Chrysler, GM and Ford. While President Obama recently defended and supported the many benefits and necessities of the Chrysler and GM aid saying, “General Motors will reemerge from financial turmoil a ’strong company’ and that permitting it and Chrysler LLC to collapse could have triggered an economic depression,” I am just not there. And even if that was the right decision, what about Ford?
Quite frankly, even though I am technically going to be an owner of the new GM (Government Motors), I feel that as consumers we must strive to find value in the Ford product line-up. At least, we need to be looking to buy Ford first. Why? It is quite simple. How Ford has worked itself through this economic disaster, without any type of bankruptcy or federal money, represents the foundation of our free enterprise, capitalist society. As a result, their road is tougher and riskier. According to Paul Ingrassia in a recent Wall Street Journal article, “while General Motors and Chrysler will emerge from the government restructuring wringer with significantly reduced debt, Ford will still likely be obliged to repay its lenders. This could put Ford at a competitive disadvantage — an unfortunate irony for the one Detroit car company that has gotten the decisions mostly right in the last few years.” For that reason alone, we as consumers, need to take a long look at Ford. If Ford does not offer the products you desire, that is Ford’s problem. But, we need to give Ford a chance. I think they have earned it.
Another fine example of the lost art of customer service. My wireless carrier is not carrying the Palm 700W anymore. I am not sure of the reason, nor do I really care. I bought the product when they were carrying it and I have been utilizing Verizon for the replacement parts necessary to keep it running. Since this phone is not being carried by Verizon anymore, the replacements parts, like the battery, are not being carried either. Now what? To solve my problem, I have two options:
1. Hope I can find a battery at battery store, like Batteries Plus. Or,
2. Buy a new phone.
Wonder what Verizon is hoping I am going to do? Buy a new phone? Wrong. I can tell you what I am NOT going to do–I am not going to buy a new phone from Verizon. I will buy a new phone when I am ready. And, if Verizon’s policies make me buy a new phone when I am not ready, it is time to take my business somewhere else.
Customer Service Lesson: When you sell someone a product, you are obligated to service it. This is like buying a car and then going to the auto dealer only to find out that I can’t get parts for the repair. It simply does not happen. I expect my suppliers to support my purchasing decisions by providing me the service I need, when I need it. If they cannot do that, they do not deserve my business. Obviously the “dollar gods” are doing the thinking here. What I am thinking is that they may have lost a customer.
As the Executive Leadership of the Big 3 Automakers, otherwise known as Ford, GM and Chrysler, prance into Washington, DC to a carefully choreographed marketing tune, the sound becomes eerily familiar as if one has heard this song before. With much thanks to the power of the Internet, it becomes all too apparent that Ford, for one, has sung this song a few times before. The words and the tune are definitely the same, only the audience is different.
Under such clever titles as “The Ford Revitalization Plan 2002″ and “Ford’s 2006 Way Forward” and finally, the now infamous hit of 2008, “I am sorry I flew in on my jet, how do you like my greenmobile?”, it is obvious that when it comes to rhetoric, The Big 3 has it mastered. When it comes to real action, real change, and real results, they have flunked the class.
Reading the today’s prepared statements for Congress, Ford CEO Alan Mulally clearly is bringing nothing new to the strategic planning process. In fact, it looks as though he simply borrowed text from former CEO Bill Ford in his last two Ford initiatives. Here are the latest versions of Ford’s initiatives. You tell me–what’s new?
1. “Matching production to meet demand” (2008) vs. “realign capacity with market conditions” (2002) or, “align its capacity with expected demand” (2006). After 6 years, you still have not figured out what that means?
2. “Deliver world class products for every market” (2008) vs. “developing products that please customers and benefit society” (2002) or, “differentiate by design and safety innovation and technology like hybrids” (2006). What are you waiting for? Get busy.
3. “Exceeding our customers’ expectations” vs. “executing the fundamentals of our business to build great products” (2002) or, “customer focused and innovative” (2006). Well, if you don’t have a plan, at least there are really cool marketing phrases.
4. “Our automobile business to be profitable by 2011″ (2008) vs. “It will be difficult, and in some cases, painful to turn things around. Butthings will turn around.” (2002) or, “restore profitability…in North America no later than 2008.” (2006) Oops. Looks like you missed this one, again. And, you want me to ‘loan’ you money?
There are a lot more. But, after a while it becomes nauseating. The consistency of the message speaks volumes and the inability to really generate change is indicting. Ford, and the others in the Big 3 club, are awesome with clever catch phrases, really slick press releases, glitchy photo shots in cool cars, etc. But, when it comes to really knowing how to innovate, change, and turnaround a stodgy, risk adverse, entitlement based culture–they cannot get the job done. Send them home with nothing other than the admonishment of all of the other businesses who are really working hard at innovation, change, and survival without their hands out.
Let’s get right to the point: Sales is a very generic term with a very bad reputation.
Everyone needs sales. Today, every business is obsessed with sales. And, business owners are pushing their people to go get more sales. That is just what we need today–more pushy salespeople! Think about it. Isn’t that what people hate, detest, and despise about salespeople? Why are businesses feeding the monster that they dislike the most?
Very simple. Most businesses really do not understand what effective sales really is. They send their people off to sales school to be trained to be better sales professionals. After all, a good training program is all anyone needs to learn how to sell, right? Sales results are measured by revenue–isn’t that really the only yardstick? The prevailing logic is that a great sales person is measured solely by the number of deals closed and the size of the sales dollars generated. Then, the best sales people get promoted to manager. That manager becomes the big ‘boss’ of the sales team and directs them to perform just like the manager did when they were in the field. More deals and more dollars. Keep feeding the ugly beast. If only Herb Tarlek were here to see his dream come true. The result, an endless and very ugly cycle of desperate, aggressive, pushy and annoying salespeople.
You want to know what sales is? Sales is the ability to deliver a product or a service to a business or individual that solves a problem or fulfills a need. Look at this definition closely, very closely. There is nothing in here that describes a pushy, buy something from me now, mindset. Want more sales? Start focusing on learning about, understanding, comprehending, and solving your potential clients’ business issues. Business people today are NOT looking to meet more salespeople. They do not have time for them. They ARE looking to find resources that are committed to helping them solve their business challenges. Stop sending salespeople to sales school for the typical sales training methodology focused on closing deals. Find a professional that understands how to build relationships, engage in a consultative learning conversation that solves problems, and has the ability to coach and teach the sales team to stop “selling” and start “solving.”
PetSmart’s success model–The right people in the right culture with emphasis on the customer. In yesterday’s blog I discussed how PetSmart Chairman and CEO, Phil Francis, viewed the impact his employees had on the PetSmart business. Motivated and talented people are critical to a sustainable business model. Today, I want to focus on how Mr. Francis emphasized the role that culture plays in retaining their employees and their culture.
In his talk last week at the Phoenix’s Enterprise Network monthly breakfast, Mr. Francis proudly opened with a story of how an employee of two weeks working at a store in the middle of Kansas was able to talk about PetSmarts corporate commitment–D.O.G. He was pleased to experience the energy, knowledge, and commitment that this new employee had in relation to the foundational company strategy. That this employee was able to embrace it and understand it reflects the emphasis placed on the strategy and vision throughout the organization.
But, there is more to this message. That the customer is truly the center of this core strategy demonstrates a corporate culture that truly values the customer. The three components of D.O.G are: Delight the customer, Operational Excellence, and Grow Services. So, while employees new and experienced know, understand, and live their company commitment, it is even better that this vision reflects a corporate culture that nurtures customer centric and service oriented behaviors. That PetSmart is succeeding in growing their business is no surprise. After all, they are doing all the right things through their people, their culture, and their customer focused strategies. As business owners, we can all learn a lesson from PetSmart.
Looking for a great executive leadership role model? Check out Petsmart. Spend some time listening to Phil Francis, PetSmart Chairman and CEO and you will get a great understanding of how he values his most important assets–people, customers, and their pets. Last week at the Phoenix’s Enterprise Network monthly breakfast, Mr. Francis discussed his views on attracting and retaining the best employees in today’s competitive market. The next two blogs are going to focus on a couple of his valued key points.
When it comes to employees and customers, there are three things that an employer, owner or manager must recognize as critical to everything:
1. Provide your people a better quality of life. Your team knows their work environment affects their health and well-being. People do not leave an employer because they want more money they stay with their current employer when they have agreat work environment, enjoy what they are doing and, like where they are doing it. If you want to keep your best employees, give them an environment that gives them that quality of life experience.
2. Develop your people. All your employees are motivated to be successful. They are looking for that opportunity to succeed. As a company, you need to continually strive to develop your people to the point where they can take leadership roles in the company. People are looking for opportunities to individual success and they will go the companies that are committed to that.
3. It is your people that bring in the customers. Using the example of the local haircut person, Phil reminded everyone that he follows his barber to wherever he goes. Why? He gets the service he is most comfortable with. In the competition for services, businesses need to recognize that your people are what attracts and keeps your clients coming back. If you are constantly churning service personnel, you are at a competitive disadvantage. Recognize the value that your employees bring as service providers to your clients and leverage that relationship.
To save time, reduce costs, eliminate expense, or through simple ignorance the emphasis on motivating, training, and developing employees have been become an undervalued component in business today. It is no coincidence that PetSmart continues to gain market share in a highly competitive market. They value their employees and it shows in the results. This is something to think about as you develop your budget for next year.
This past week there has been a lot of news and commentary about the automotive bailout. With the exception of the Midwest and an aggressive Democratic caucus, there is minimal interest in bailing out the automotive industry. Why? They simply do not deserve it. More importantly, our economy really does not need it. This is a simple case of “management and boards of companies that have shown arrogance since the 1950s that they never needed to change in a fundamental way.” The auto industry has had 35 years to figure out how to compete against the foreign competition—build fuel efficient vehicles, develop high quality vehicles, manage their payrolls, and re-engineer and retool their operations. What did they really do? Nothing or, at the very least, not nearly enough. What makes the automotive industry the exception to the typical business and competitive rules regarding innovation and change in a highly competitive environment? Their inability to adapt or change cannot and should not justify a free pass when every other US business is expected to figure it out.
Even with their hands out, automotive leadership are dictating their terms and demonstrating their unwillingness to accept accountability for this situation. This smacks of arrogance. GM Chairman, Rick Wagoner does not understand “what purpose would be served” by stepping down. UAW Head, Ron Gettlefinger says “the union won’t make anymore concessions.” It is time these parties recognize their responsibility for this situation and agree that massive change is required. It needs to hurt a lot to receive this bailout. If taxpayer dollars are involved, everyone should feel the sting. Besides, if significant change is not associated with this bailout, what have we really learned or accomplished?
In today’s tough times, it is hard to generate an aggressive position with regard to the auto industry. The entire global market is feeling the pain of a significant economic slowdown. And, the devastating impact on those employed by the manufacturers and suppliers should a company like GM or Chrysler actually shut down is significant. That said, it is very, very difficult to understand why we should be forced to bailout a business segment that is in trouble as a direct result of years and years of very poor management and bad business decisions.
The problems now facing the US based auto suppliers should not come as a big surprise. The fact that they are in financial trouble was quite predictable and very avoidable. The ignorance and helplessness that they are demonstrating now, as if they did not see these problems coming, is laughable. As a lifetime Detroiter, proudly a non-automotive employee, I can tell you gross mismanagement, lack of vision, minimal risk taking, arrogance, greed, and entitlement are all core values associated with the automotive industry. This is a generational trait that goes far beyond the scope of what has happened in the past few years. Toyota, Honda, BMW and Mercedes are all experiencing sales pain solely as a result of the current economic contraction. According to GM, Ford and Chrysler, they are in trouble because their legacy costs are high, they cannot get great ‘green’ vehicles in their pipeline in time to meet established requirements, and they do not have the money to retool their plants. While on the surface these seem to be legitimate issues, the real truth is that they have bloated payrolls, have never invested in the future, and have focused all their resources on high profit trucks and SUV’s which are now not selling. How was this unforeseeable? What was their long-range plan if and when it did happen?
As the auto industry is the foundation of our manufacturing sector, keeping these businesses in business is a must. I am hoping that while we must step up and help, we do not simply write a blank check. Ford, GM, and Chrysler must demonstrate that they recognize their accountability for this mess and make the requisite drastic changes. After all, they have had 35 years since the Oil Embargo of 1973 to change their industry and build safe, exciting, and fuel efficient vehicles. I am not in favor of giving them another 35 years of the same old ways with my tax bill. It is time the auto industry got in touch with the rest of the real business world and incorporated fiscal responsibility, true innovation, and long-range vision into their business model. Shortsighted, risk adverse and entitled behaviors got them here. Without a significant culture change, nothing will be different. Get busy Detroit—it is time for real change!
Editor’s Note: After I wrote this blog on Monday 11/10, I found thisfantastic article by Paul Ingrassia in the Wall Street Journal. Please read this. I am not alone.
In case you missed it last week, there was a very influential group of people who participated in last week’s election–Gen Y. A recent blog “Generation Y: Your Voice Has Been Heard” underscored the influence and the impact of the Millenials. The next generation of leaders, workers, and business leaders are found in Gen Y. They expect to be heard, respected, and treated differently. More importantly, they have a unique understanding of the power of technology and social media. Businesses leaders need to recognize their influence and their potential. The Obama Campaign attracted, recruited, and put to work this generation of voters and that was a key component in his victory. As business leaders, it is important to learn how to embrace and enroll this generation into the workforce–it will make a huge difference if you do.
What a very, very exciting, interesting and historic day yesterday. While this is generally a sales or business blog, I cannot help but take a moment to comment with my brief perspectives on yesterday’s events:
–Barack Obama’s win captured an enthusiasm and energy I have never witnessed in an election before. It was long overdue, it was needed, and it was very moving.
–It has been a long, long time since the youth of America got excited about and involved with our political future. I am thrilled. We need the younger generation to become leaders today. The earlier they are engaged and motivated, the more we will develop positive and influential leaders for the future.
–John McCain took direct ownership for failing to win the contest. This was a powerful statement. McCain demonstrated why he is a great citizen and patriot in his concession speech. His holding himself accountable for the results illustrated why he has been an influential and sometime ‘maverick’ Senator.
–Watching Barack and Michelle Obama walk off the stage at the very end of his speech was quite moving. Here were two partners relishing the moment, realizing what they had accomplished, and demonstrating for a brief flash their recognition of the enormity of the accomplishment and of the upcoming challenge. This was the absolute highlight of the day’s activities.
This change has been a long time coming. Whether you are happy with the outcome or in alignment with Obama’s views, it does not matter. The people have clearly spoken. I am excited and motivated to get some positive, non-partisan political activity going in Washington. It is way past due. This is not a time for conservative or liberal posturing. This is a time for decisive, collaborative decisions in a lot of important areas. I think we now have a chance to do that.
After yesterday’s events, I am committed to embracing the leadership of our elected President and am eagerly looking forward to supporting his direction. I have always encouraged people to embrace change and to look for different ways to accomplish great things. I am hoping and trusting that this is another time where it is all good! Time will tell.
Who could have anticipated at the beginning of 2008 that we would be in the midst of an epic economic meltdown? Not many. I was thinking back to an event I went to in early March 2008 which featured Jamie Dimon, the CEO of JP MorganChase. At that event, he talked about how the mortgage crisis was more or less behind us and we should start to see improvements in the economy by the3rd or 4th Quarter of 2008. Even as recently as eight months ago, Jamie Dimon was expecting positive economic trends at this point in the year. No one has a crystal ball!
My words of encouragement here: Focus on What You Can Control!
There are only two things you can control in this world–your attitude and your effort. Now is the time to remember this mantra. There will be many things that will happen in the next six to nine months that will be well beyond your control. And, if the current economy is a predicator of those events, some will not be positive. Our response to those events and challenges is in our control and our response is what must drive us.
When I find myself frustrated with my business and start to feel things are not swinging in my direction here are the two things that I immediately focus on:
1. Not owning the negative. Chicken Little was well-known as a poster child for the ’sky is falling’ syndrome. I have seen complete organizations freeze in their tracks and stop working because there was a rumor of a merger or layoffs. When you start to focus on the negative, the negative is what you become. The negative becomes a self-fulfilling prophecy. Yes, negative things will come at you. The challenge is to recognize its potential to stop you cold and force yourself to turn away from it. The best response is to celebrate your successes as you continue to move your business in a sustainable direction–even in the face of adversity.
2. Celebrate the small victories. Finding things to celebrate focuses your time and energy on positives and makes you take your mind off the negative. Consistently celebrating successes gives you no time to engage in negative energy. Small victories are things like good meetings, great feedback from your client, a contact or accomplishing a challenging task. We accomplish many little, yet important things everyday. Congratulate yourself on the great things you are accomplishing and spend zero time or energy on those things that will slow you down. When you energize yourself through your successes you will have little time to focus on bad things. Tell yourself, “I am just too busy being successful here to worry about failure.” When you feel good about winning, you will keep on finding ways to win.
I fondly remember a scene toward the end of the movie Parenthood where Steve Martin is lamenting his wild and turbulent life. In walks his Grandma and she begins talking about the joy and fear and elation of riding the roller coaster at the fair. And, how that experience is much more satisfying and fulfilling than riding the safe and dull merry-go-round. This is a great metaphor for the entrepreneurial experience. We are definitely in the midst of the wildest and craziest roller coaster ride imaginable. We have already decided to take the ride–we might as well embrace, enjoy and celebrate it. Have fun, enjoy and celebrate your journey!
Anyone who reads my blogs or participates in my seminars or coaching programs know that I am passionate about the importance of effective communication skills in the sales process. A recent series of questions that I posted on LinkedIn.com reveals that, as a profession, we are still not learning to do this effectively. A simple question, “What is a bad sales behavior or trait you see too much of and would like eliminated or corrected?” revealed a wide range of responses.
Most of the responses focused on the fact that sales people are simply not utilizing effective communication skills to build the connection, listen to the client, or recognize and understand that there is no real business opportunity. Here are some excerpts from those who submitted responses:
Sales is about listening, not steamrolling someone with all the reasons you think they should buy.
They are talking at their audience, not engaging them in a dialog. If they understood the real power of using different types of questions to solicit participation from their prospects, they would not waste valuable time, create better relationships with their customers and close more business.
Sales people who talk more than listen, and then keep talking.
Reps should try shutting up and listening a bit more, we have one mouth and two ears for a reason! They should know this and remember it.
The Show Up and Throw Up technique. Sales people that just fire product/service pitch after service/product pitch at their prospect in hopes that something sticks. Or, The ‘I have the perfect solution for you! by the way, what’s your problem?’ technique.
We all get the idea. If you want to join in on this conversation, please feel free to answer the open question on LinkedIn.com. The bottom line is that people do not have time for sales people who are more interested in selling their stuff than they are about learning about and solving the real problems of their clients. Until we, as sales people, start doing a better job of this, we are going to keep getting branded as pushy, aggressive, talkers that no one has time for. One of the submissions to this post provides a great close: “Selling at its heart IS communication. When a salesperson is listening actively and is truly interested in what is being said, the sales resistance from the client is often diminished and the customer feels understood–creating the environment for a sale to take place. No listening = No sale.” –Paul Comi, Jr. Right on Paul, enough said.
On yesterday’s broadcast of The John Adam Show, host John Adam invited his father, Adam, to inject fresh perspective into today’s business environment. Adam, a very successful local business owner provided a very simple, concise message that needs to be shared. For those entrepreneurs who are looking for some great advice and perspective listen to this.
2. Companies have a pre-defined short list. If you have not been involved in writing specs for the bid, you are not on that list.
3. Toss unexpected RFP’s in the recycle bin.
4. Soliciting companies rarely select a winner on price only. They know what features they want and who has them. Don’t waste your time fixating on price.
5. Myth: Most RFPs have some comment claiming that no, or at most limited, contact is allowed between the soliciting company and bidder. Reality: If you’re on their short list of winners there won’t be any limitations as to how often you can have contact.
Find Out if You’re on the Short List:
1. Submit a preliminary abridged draft proposal with the soliciting company.
2. Request a 30-minute appointment with them to review the draft proposal.
3. Emphasize the importance of this meeting as it relates to thoroughness, accuracy and the investment of resources in the proposal process.
Summary
If they won’t agree to this meeting, then there is a very good chance you are on their designated loser list.
Kudos to Scott for this blog, this is right on target!
The following is an excerpt from the book, Cooked Up Sales. (This book is available for purchase at Amazon.com.)
First, the fundamentals
Sales is about relating, learning, and solving. If a salesperson is telling or advocating or pushing, they cannot listen, learn or connect. It doesn’t matter if you’re a great orator. It is not how great your product is. It is not your company or its capabilities that closes the deal. Rather, it is how well you have personally developed an understanding of what the customer is trying to accomplish and how they envision you addressing their needs. In order to effectively accomplish this, a sales professional must be able to focus on the client, the needs, the discovery, and the relationship. In the end, the key is to demonstrate a value based link to your product offering and their very specific needs. Do not push yourself—because it is not about you–but rather pull from them. If you are starting to get tired of hearing yourself talk, it’s already too late—you have probably jeopardized the sale.
Author’s Note: Cooked Up Sales was written to bring the basics back to selling. This book is short, concise, and focuses on the fundamental key to excellent selling results–relationships that add value. Today, people do not have the time to fool around with pushy sales people or aggressive business tactics. They are looking for business relationships that help them solve a problem or fulfill a need. This book is written around that basic theme. And, it teaches how to maintain a strong, effective business relationship throughout the selling process while simultaneously producing effective sales results.
Watching the endless Presidential Campaign advertisements on television, listening to those negative sound bytes on the radio, and watching these so called leaders debate each other, one thing is quite obvious—they do not have any sales people helping them with their campaigns. The reason I know this–they spend way too much time talking about the “other guy”.
Great sales people do not need to spend time talking about the other guy. That is called “Selling Down.” If you are selling down, that means you do not have much to sell about yourself. If you cannot say something nice about your competition, then do not say anything at all. In reality, you should find something nice to say about your competition–it builds your credibility, demonstrates that you have the confidence in your abilities, and enhances your character in that you do not go out of your way to knock people down. Selling down is a weak sales strategy.
Great sales people know how to “Sell Up.” If you are selling something that you believe in, something that is credible, something that truly has value–the only thing you need to accomplish is to help the buyer recognize how it will add value, solve a problem or, fulfill a need. That requires no time for the competition, it only leaves time to make certain you, as a salesperson, are communicating at the right level with your audience.
My message to the Obama and McCain campaign brain trust–people hate sell down messages. Stop it! If you are fed up with all the negative Presidential Campaign rhetoric–blame the candidates. More correctly, blame their advisors who have no sense of how to sell their story.
A question posed on a recent blog about discounting prices in an economic downturn, rekindled a previous discussion Sales Cooke conducted on The John Adam Show. In the podcast from that show, Sales Cooke talks about the real impact of a pricing strategy that resulted in a discounting of prices to gain more business.
Adjusting your price downward is a very risky and dangerous proposition. The perceived value of your product offering is based on the price you establish for it. Adjusting it downward implies that you have now devalued your own offering. When you devalue your product offering, you are sending a message to the market that you were overcharging in the first place; or, you realize now that your price is not justifiable.
On the flip side, you are now challenged with raising your prices later to recover your price reduction. That requires the ability to defend a price increase. Justifying the price increase means demonstrating value. If you already “discounted” your price earlier, a perceived devaluation, how can you now explain your price increase today? What has changed in your value proposition?
The best course of action is to focus on selling your value, engage in a better sales process, and stay the course on pricing. Yes, times are tough. And, the market is more competitive and cost conscious. This is the time to focus on adding and selling your value and making certain that your product delivers the benefits that you believe they do. Avoid the roller coaster behaviors of selling to price. Sell your value and sell well. Only good will follow.
I hear too many people exclaim that they just do not have enough time to do the things they planned to do. The reality is, they do not plan properly, they try to do too much, or they do not plan at all. Good time management habits come when you value your time and realistically plan how you are going to use it
The time to organize your tomorrow is at the end of today.
Before you closeout your workday, take thirty minutes to plan tomorrow and also take a little look ahead to the future. Utilizing these thirty minutes helps you organize your follow-up activities, captures the tasks accumulated in the day, puts them in their place, and prepares you for tomorrow. The time to organize your day is not as you are driving to the office or to your first appointment. The time to organize your day is the night before. Always give yourself thirty minutes to get organized at the end of the day. You will be glad you did.
I had a great conversation with a trusted colleague this morning. We talked about the transitions owners make when they are first starting out and what happens when their business begins to grow and generate sustainable revenues. While it is not always wise to generalize, the one thing we noted was that owners have a tendency to become internally focused on the operational side of the business as it gets to a certain size and scale. As a young start-up, most owners are in front of clients, are the “feet on the street,” and are making new connections. Then, the business becomes successful and they work in the safety of the “nest.” At some point, most owners start to lose some of the key connections with their newer clients, are less involved with the sales process, and spend much more time managing the daily operations of the business. This is a very risky proposition.
A critical component in any sustainable business is the customer relationship. It is the customer that generates the revenues in your business. Every time they place an order, request service, buy a part, or sign an agreement they are bringing revenue into your business. If you are an owner, the most important connection you can have to sustain your business is with your clients. Your relationship with your clients enables you to connect, to say “thanks,” to obtain feedback, to solve problems, and to help your sales team get more business. While it is very important to know what is going on in the “nest,” remember your clients are paying the bills. Make sure they know how muchyou appreciate their business.
The other aspect of this activity is that the strength of your relationship with your client minimizes the threat an exiting sales professional puts on your business. It is important that your salespeople have great client relationships. You want your clients to trust in your salespeople to provide the greatest of account management and service. However, the harsh reality is that salespeople do leave. When they do, the strength of the ownership relationship and the business relationship with that client will define the impact of that departure. The best time to protect your client base is when you have a stable sales situation. Build and nurture that relationship often and your revenue stream is much safer and steadier.
The 12 Details For Growth — Building a Revenue Generating Machine
Making your list? Checking it twice? Trying to figure out of ’09 is going to be naughty or nice?
In the spirit of the Holidays, here are the 12 Details for Growth that will help you build a better, stronger revenue generating machine.
1. Develop a strong management team: A great manager is a coach, a teacher, a “mom”, facilitator and trainer all in one. Success starts with great managers who are totally engaged, physically and mentally, in the overall growth process.
2. Clearly define your business’ value proposition: Not knowing what makes your business great, limits its ability to be great. Know what your value proposition is and teach your team to understand and embrace that value.
3. Establish a solutions based culture: Clearly establish the mindset that you are looking to find ways to solve customer challenges, not in finding people to blame.
4. Create an empowering environment: Empower everyone in the organization to make responsive decisions that support your customers.
5. Define the rules of engagement: Clearly define the respective accountabilities for every position on the team with the underlying understanding that the entire team is there to delight the customer.
6. Foster a nurturing organization: Highly successful organizations are team oriented. And, great teams support each other. Encouraging everyone to coach and support each other.
7. Provide everyone a playbook: Train your entire team to the product offering and value proposition so everyone knows and speaks the same language.
8. Deploy an organization wide incentive model: Everyone on your team must know that they will be generously rewarded for playing their part in the success of the team. Reward them well for their success.
9. Emphasize the team, but acknowledge individual achievement: Talking up the success of individuals and teams helps emphasize the importance of doing things right and demonstrates the positive outcomes of those behaviors.
10. Mandate a team centric code of conduct: Never allow or engage in criticisms of anyone, either in public or behind their back. If tough love coaching is needed, then do it face-to-face and in private.
11. Know what your customer wants and needs and why: Have a laser focus on what your customer requirements are and how your product offering addresses those requirements.
12. Measure everything in terms of results: Only results are results. Never mistake activity for results. Productive activity is simply the progressive road to results. Ultimately, the only thing that matters is results.
Whenever Congress gets busy, we should be nervous. Every time this organization, traditionally mired in self-serving, partisan rhetoric, decides they need to take action, all of America should take pause. Right now, we do not need a bunch of leaders who are self-serving, reactive, and shortsighted bureaucrats. Read the full article…
I recently had the opportunity to engage in another client discussion about the notion of “low cost” or “low price” buying behaviors as being a growth obstacle. This is one of the biggest misconceptions as it relates to successfully growing a business. It is not about low price. It is about a failure to define value. If you think your growth efforts are being thwarted by low cost buyers, it is because you have not succeeded in connecting with the real buying behaviors and needs of your prospects. Nothing more, nothing less.
For those who think that low cost is an obstacle, here is the process issue that you are missing. You meet with the client. You have a high level discussion about what they want and need. Your next step is to begin “telling” them everything they need to “know” and “do” to accomplish what they “need.” You impress them with your knowledge, expertise, and capabilities as it relates to their needs to the point that they ask for a proposal or a quote. Looks like they are interested in buying from you, right? Not quite. Unfortunately, you did not talk to them in depth enough about their drivers, their decision making process, or their “budget.” Instead, you started talking about their vision and their big picture goals and how you can help them get there. Next, you crank out a proposal. Then, reality hits and they decide they cannot afford what they are dreaming about, need more time, need to get someone else involved, etc. Eventually they tell you they cannot afford what you are offering. “Low cost?” Not really.
This process is very analogous to buying a car: I want a 4-door sedan that goes 150 mph and 0-60 in 4 seconds. My auto expert has just what I need. Unfortunately, it costs $65,000. I can only afford a $35,000 car. They never asked my budget and I didn’t know or really realize how much my “car” was going to cost. Once reality hits, I decide that I cannot afford the car I thought I needed. In the meantime, another auto expert has an extensive discussion with me about budget, criteria, process and priorities. And, he proposes a $35,000 car that does not do 150 mph or go 0-60 in 4 seconds. But, it is quite fast and very sporty. It is not exactly what I originally “dreamed” about; but, it does reflect a great fit with all my defined criteria, including budget. Was my purchase about “low cost.” To the auto expert that did not get the deal, yes. In reality, no. It was about a total fit with all my needs.
This is a traditional issue that exists in all industries—we are too quick to jump to the solution once we think we know what someone wants or needs. It leads to a huge misconception about “low cost.” When we do not ascertain value, prioritize needs, determine or discover the budget, define their buying criteria, and understand their decision making process, there will be a disconnect. That disconnect is later justified by the business development person as the result of “low price” behaviors by the prospect. When it actually is the result of insufficient listening, learning, and engagement on the business development person’s part at the beginning of the discussion. Most of this frustration can be avoided if we simply stopped treating proposals as though they are part of the sales process. They aren’t. If you had to completely negotiate a final business agreement with a prospect before providing a proposal, your conversation would be entirely different. In that process, you would discover that cost is a very real criteria. But, it will not be the sole reason why I would, or would not, do business with you. It would be simply one of the many determinators as to how they do business with you. To eliminate the misplaced perceptions around “low cost”, spend more time in the discovery and consultative activities and avoid the “get to the quote” mentality. You will find that by engaging in this process effectively, your customers will have a budget, though sometimes a limited one, for your product offering.
For many 2008 was and is a year that we would like to forget. While I have noticed that this year’s holiday season was, in many ways, more subdued, I am certain there is much anxious celebration with regard to 2009. There is nothing magical about turning the page on the calendar from one month to another. Yet, there is this sense that putting a new calendar on the wall represent a fresh,clean starting point. This is the time where many establish their goals for the year, vow to make changes, commit to better health habits, etc. The traditional new year resolution has become a habit for many to make and a challenge for most to keep.
As we look ahead to 2009, we are coming out of one of the more tumultuous economic periods on memory. The good news is that there are a lot of things to look forward to. The bumpy, scary and uncertain economy is not yet behind us. But, I do believe, that 2009 is the year where we will begin to see the end of it. Change is already underway. The transition to new leadership in Washington, DC in January is symbolic of the changes that are underway. Calendar year 2008 represented a very painful course correction for the global economy. Over the past 20 years, businesses fell into careless and short-sighted habits. Their recklessness has been flushed out and the adjustments to these activities will be seen in 2009. There still exists the ripple effect associated with this storm. However, I am confident that the current of change is already taking place.
I look forward to 2009. Successful businesses are going to be smarter. They are going to be more nimble. They are going to be leaner. They are also going to be more attentive. If you are simply looking to make it through 2009, I am concerned for you. Survival is not a tactic. To be successful in 2009, your business is going to have get in shape, make some big changes, have a clear direction, and know where it is going. Most importantly, you have to know what makes your business truly great and you have to focus all your efforts on leveraging that value into 2009. Along the way, break the bad habits, stop doing things the same way you have done them, and embrace the changes that will make your business strong. Changes have already started to take shape. You need to make certain that you are implementing change in your businesses processes, too. Remember, economic changes are merely survival tactics. Your most impactful and successful moves will be the ones that are cultural, leadership, and strategically oriented.
Is 2009 the beginning of the end for your business? Or, is 2009 the beginning of the end of a very bad economic cycle? What 2009 becomes, is entirely up to you. I wish all of you a Happy and Prosperous New Year!
Looking for examples of good leadership in a business world filled with poor ones? Take another look at Jamie Dimon, JP Morgan Chase. This is not my first blog extolling his leadership style. As I look at the financial sector and study banks that are in ruins, I am reminded that somehow JP Morgan Chase avoided most of the worst of the mess. Further, Chase has come to the rescue twice to bailout companies that were sinking fast–Bear Stearns and Washington Mutual. And, look at what has happened to Citibank in the years since Dimon’s departure. Bottom line, Jamie Dimon is a tough love, direct leader who gets things done.
What still resonates from listening to Jamie Dimon last March as he talked about the economy and JP Morgan Chase, was his passion that decisions and strategies are ‘not measured by share price.’ His commitment is that “everyday we have to find a way to be a better company. Do that and the share price will take care of itself.” In the old economy, the economy that is in the midst of crumbling before us, share price drove everything. In the new economy, sustainable business is about building a better company everyday, and in every way. The days of shortsighted, price per share obsessive behaviors are over. The fact that Chase survived the recent financial meltdown, is a testament that stock price beholden leadership just does not work. Jamie Dimon may be a bit controversial, outspoken, and aggressive; but, he has demonstrated a passion for doing things the right way for the good of the entire organization–sustainable for the long haul.
The prompt for this commentary was triggered by an article in this weekend’s Wall Street Journal discussing winners and losers in this past business year. Jamie Dimon was listed as winner. I couldn’t agree more.
This time of year features the conclusion of our football season. The pros are in the midst of their playoff routine. While college just wrapped up its Mythical National Championship dance. The two upsets yesterday in the NFL remind us of one of the attractions to athletics in the first place. Athletics is the one place where the game has a defined beginning and end. There are rules that are followed and closely monitored. While there are sometimes bad calls, most would agree that every attempt is made to follow and honor the rules. In the end, time runs out and, based on the final score, there is an established winner. The exciting part is that because this game is actually played, there is continually an opportunity for the underdog to upset the favorite. While it is sometimes painful for the fans of the favorite, there exists this American tradition of rooting for the underdog. And, when the underdog wins, it provides a moment of extra exhilaration for all who observed the accomplishment.
Contrast determining the best team in the pros to the college version of declaring the best team. College football shies away from direct competition. In college football, some of the combatants never have to play any of the other capable opponents. In college football, they use intricate mathematical models, computer programs, and a collection of “experts”, call them ‘anal’ysts to determine who are the better teams. Ultimately, it’s the results of the ‘anal’ysts that decide which teams are better than others. Instead of playing the game, giving the underdogs a chance, these ‘anal’ysts take the competition, the risk, and the chance out of the game.
How does this relate to business? Simple. For the past twenty years stock price, stock value, share value, and unlimited ‘anal’yst commentary defined what companies were attractive or competitively viable. Public companies decisions were so strictly influenced by these computer models and ‘anal’yst expectations that good business decisions were put on hold or adjusted for fear of the external commentary. Business, like sports, is not a beauty contest. There are rules and expectations. Strong, well lead teams will often win. Even the underdog can find their way when they come together and work well. The game of business is decided on the street. Not Wall Street but on Main Street. The game is played hard, it is played fast, and winning is rewarded and losing is painful. Winning and viability is defined by customers, employees, owners, and suppliers coming together to get things accomplished. It not determined by some ‘anal’yst with a formula and an opinion.
Whether in college football or business, the ‘anal’yst model just does not work. If you think it does, think again. Our economy is in the tank because we spent so much time focused on the fastest way to get to the bottom line and maximize our profits that we took shortcuts. Shortcuts that pleased our ‘anal’ysts, jeopardized our long term viability. In this new economic model, we need to focus on the competitive behaviors that will strengthen business. Well served customers, talented and motivated employees, patient and knowledgeable shareholders, and strategically aligned suppliers are all components of that mix. Note, that the beauty contest commentary of the competitively challenged anal’ysts are not mentioned. Why? They do not understand the game or the rules.
How many times has this been used as a description for a buying criteria? This nebulous description is very similar to “as soon as possible” for an urgent request or “we will know it when we see it” as a definition for pornography. Either your client knows what they are really looking for or, can at least envision the end result, or not. This response certainly sounds like “not.” In a professional, consultative selling model, this empty answer provides a multitude of challenges. The bottom line to these challenges is that it is hard to uncover their real issues and even harder to know how to package your response in a competitive situation.
When faced with this type of a response, there are a multitude of responses. The following represent a couple of tactics that I would deploy in this situation. Note, I am making the assumption that you have done an excellent job of qualifying the prospect and that you are simply formalizing the contents of your conversation and strategy in a proposal format for competitive review. While I detest the “looking at three supplier” approach, I realize that in this day and age this drill is often unavoidable.
1. Create a Vision: Brainstorm with the prospect their vision of the project, the final outcome or result, and how they would like to view your proposed solution for that project or challenge. Work with them to articulate how they view the project and what they look for when they are reviewing multiple proposals.
2. Understand the Process: In order to package your proposal for this “beauty contest”, you have an obligation to yourself and your client to define the decision making process. The decision making process involves: who will be on the decision making team, how they will be evaluating the proposals, what are the criteria that they will be using, and how they will rank the criteria. If they don’t know, help create or influence a decision making process for them. Allowing them to loosely approach the decision making process increases the likelihood that your proposal will be accepted or rejected on pure chance. Using chance as a decision making criteria is not good odds.
3. Meet with the Team: One person always likes to create the perception that they are in charge of the process. To the extent that they are responsible for selecting and interviewing potential suppliers, this may be true. In reality, it is highly likely that there will be several people evaluating the proposals. I suggest that you take the time to get to know the other decision makers and work with them to define their vision for the project and the process. It can only help to have a wide range of influencers on your side in the decision making process. (Again, I am assuming you have been engaged in an effective sales process and that connecting with these other decision makers will not be first time meetings.)
DO NOT leave your proposals to chance. You need to understand the process and the criteria. If they are simply looking for “the best bang for the buck”, you have two choices–influence the outcome by defining the criteria or walking away. Not doing anything, other than simply submitting your proposal, is not an option.
At the height of the campaign season, I wrote about my diminished expectations for a real leader emerging from the 2008 elections. Now that the elections are way behind us, except in Minnesota, I must admit I am encouraged by the leadership qualities demonstrated by Barack Obama through the transition process. It started with his election night speech in Chicago, was reinforced in his interview on 60 Minutes, and continued through his actions leading up to tomorrow’s inauguration.
Barack Obama has demonstrated very special leadership qualities. His appointments have been balanced with experience and talent, his thought process has been deliberate and decisive, and his messages have been positive and direct. He is going to experience a very short honeymoon period. He will be faced with expectations for his first 100 days in office that are much higher than many of his predecessors. Yet, facing the enormity of the task, I have admired his approach, his words, and his actions as he prepares for leadership.
Our country has some very serious challenges ahead of it. Besides the economy, there is the war, the rising cost of health care, a declining educational system, the need for improved relations with our foreign allies, and the spector of our mounting debt in the midst of all of this. These challenges require appropriate and decisive actions. These are critical times. Our leaders need our attention, our involvement, our support, and our feedback. To that end, I am committed to supporting President Obama when he takes office. I will stand behind him when he takes action. And, I will let him know when I am not comfortable with his decisions. Regardless, I can assure you, I will be in the game.
This is not a time to be inactive or disengaged with our leaders. Our leaders and our country need its citizens to be actively engaged in the decision making process. These decisions are determining our future. If you want to sit and judge, or play the wait and see game, please get out of the way. That type of behavior only creates obstacles for people who are actually trying to accomplish very important tasks. I encourage all of you to get in the game and start participating now. We are in the midst of a leadership change and the best thing we can do in get engaged with our leaders and help get things done. I believe that Barack Obama has demonstrated the leadership qualities necessary to guide us through this mess. But, I also believe that the only way great things get accomplished is when everyone works together to accomplish them. The time is now. Get busy.
“As vacationers and business travelers reduce the time they spend on the road, hotels are quietly trimming amenities and services to save money.” (wsj, 01/22/09) Warning to the hospitality industry, once you start cutting back on the services people value, you begin the erosion of your unique value proposition–your customer service. The one thing that differentiates you from your competitors is that special something, sometimes an unquantifiable service quality that builds loyalty and keeps your valued customers coming back. Eliminating a service, a perk, or a convenience — even something that seems small and insignificant like hand lotion in the rooms– and your loyal customers might start staying elsewhere. Once they leave, they are unlikely to return.
“Hotels are hoping that the cutbacks will go largely unnoticed by guests. They also are dropping rates to keep customers coming back.” Now that makes sense. Cutting back on services to save money and then offering discounts on rates to keep your customers coming. First of all, once your customers notice the cutbacks, the discounts will not fix the problem. All the discounted rates do is reinforce the newly diminished value you have assigned your property. Worse, the changes in service amenities only support that notion.
A blanket note to the hospitality industry–Do not cut back on your services. Reductions in services and discounting rates is what killed the airline industry. The airlines are still trying to figure out how to make money under that formula–and not doing a very good job of either making money or providing good service. My recommendation is to improve your service, enhance your value, promote your differentiation, offer perks to your valued customers and they will come and they will stay. Cutting back on various amenities and service only serve to save money today; but, it will diminish your overall long-term value. Is losing customers worth the risk for saving a few bucks? I trust the answer is “no.”
In yesterday’s blog, I referenced a Wall Street Journal story about hotels cutting back on amenities to save money and the fact that an industry which takes pride in service as a differentiator would risk its customer loyalties by cutting back on those very services that add value. If the past failings, both financial and in customer losses, of the airline industry is indicator, this is a dangerous, downward spiral that is hard to pull out of once it gets started.
I received several comments that responded in very direct agreement to these thoughts. However, one comment took the conversation to another level. The premise of the commentary was the definition of and the level of service in business overall has diminished. I found these comments so compelling and real that I had to share in a separate blog.
The “erosion of service is happening in every aspect of business today. As a consumer, at first I enjoy the so called reduction in price, but once I experience the poor service I feel cheated and used which often leads me to stop using the service or product. If businesses would focus more on quality and customer experience then maybe we can turn around our economy. Unfortunately too many in charge of our corporations today have forgotten what it takes to be successful over the long-term and only care about short term fixes.” Thanks Marshall and right on.
As long as businesses think they can ‘get away’ with the elimination of services or in diminishing their service, they will continue to do so. What they do not realize is that once their customer finds a better offering, be it diminished service at a lower price or better service at the same price or comparable value overall, they are gone. Customers that leave because of the perception of poor value or diminished service rarely return. Are the risks associated with these cost cutting tactics really worth it in the long-term? I doubt it. Protect and promote your service values–it is your one true differentiator.
When I simultaneously read about the financial incentives paid to Vikram Pandit of Citicorp (including $118 million over 7 years), the spending excesses of, now departed, Merrill chief John Thain (hundreds of thousands of dollars to renovate his office, including $35,000 for a toilet) and the massive job losses across the country, I become a bit incensed. The wasteful and unchecked greed going on in the corner offices has always been an issue for me. However, it seems that in this new dawning of fiscal responsibility, the people who need to be taken to task for their historical and consistent greediness are not. Meanwhile, the folks who are merely doing their jobs are losing them.
Many people are amazed, shocked, and appalled to hear that John Thain spent hundreds of thousands of dollars to renovate his office. This is not where the shock factor is or needs to be.
I am quite confident this is not the first time Mr. Thain, or any other executive, has spent that kind of money. In the first place, what justifies that type of expenditure by any company on the behalf of any employee at any time? With the type of income he was making, let him pay for his ridiculous office opulence out of his own pocket and then write it off as a business expense. Shareholders are not investing in companies to have their executives live the good life on their investment dollar. Problem is, no one is watching the store on behalf of the shareholders.
What is even more appalling is that for every $100,000 dollars wasted by these executives, is a job that is going to be cut and a life that is going to be changed, possibly forever, because these executives were both greedy and irresponsible.
When a sports team has a lousy season, they do not fire the players. They fire the people in the head office and the coaching staff. In business, the team has a bad year and they fire the players. Businesses fire the people who are actually doing the real work. Imagine if a sports team fired their players for a bad season? How would the next game be played? In business, the game goes on, as long as people like Mr. Thain get their $35,000 dollar toilet, or Mr. Wagoner of GM fame keeps his job. Then times get tough and Congress can step in and give these companies a bailout, or “loan.” The executives responsible keep on with their incompetent ways while the workforce takes a hit.
A couple of ideas:
Shareholders need to give their investments a reality check–stop investing for a while unless a company demonstrates real governance and actual responsibility with your money.
Congress needs to give these inept and greedy execs the boot before they float them any money. Big advances to bad leaders is insane and irresponsible.
Finally, how about a moratorium on job cuts? Let’s protect the worker for once. Unless, of course the job being cut is at the executive management level. In that case, it should be ‘game on’.
Here’s to better days and better business behaviors!
An article in the Detroit Free Press talks about how a successful local grocery chain is offering a restaurant discount card to shoppers who spend $100 or more. In a push to encourage people to support local eateries, Hiller’s has created a program known as Hometown First. These are the types of cross promotional activities that create valued partner connections in a down economy. The community oriented nature of this promotion is very, very cool. More importantly, it demonstrates the commitment of a food store like Hiller’s to the business community. This is a great lesson to all businesses. Build strong partners–you never know how they can support you later!
When you examine your business community, what are some of the cross promotional relationships you can develop to try to drive your customers to other businesses and attract their customers to your business? When people buy from you, it is expected that they trust your product and your service. Creating a cross promotional relationship with another business or business segment has the same effect as a referral. In today’s economy, everyone could use more referrals. Give it some thought.
One of my favorite and reliable blog sites by Bill Caskey featured a very interesting commentary about customer service, including this cartoon. In today’s economic environment, customer service is viewed by business owners as an expense and by customers as that extra value that makes a difference. When you cut back on service, what does that do to your customer relationship?
Now is the time to connect with your clients and listen to what they are saying about you, your business, and their perception of the value you bring to the market. According to Caskey, “if your market is saying your price is too high, then you’re doing a lousy job of communicating your value. You’d better change.” Right on point.
Take this one step further. Sometimes the value we think we are providing is different than what the customer actually values. Not only is it important to communicate our value, it is essential that we understand that value from the customer’s perspective. That is why it is so critical in these highly challenged times to know what your customers value in your business relationship with them. This is the time to connect and learn by getting in front of your customers and listen to what they are saying.
Before you cut back on that service and benefit that you think you can quietly eliminate, you had better make sure you know how your customer feels about it. Cutting expenses through layoffs and the elimination of services may result in lost customers. When your revenue drops even further, what is your next course of action? It is better to connect with and listen to your customers’ perception of value and your organization’s effectiveness in providing it before you eliminate the one thing that they really value.
We hardly picked up any words of wisdom from White House adviser David Axelrod regarding the automotive industry on Meet the Press today. In discussing the automotive companies, Axelrod says, “we’re going to need a major restructuring of these companies. How that restructuring comes is something that has to be determined. But it’s going to be something that’s going to require sacrifice not just from the autoworkers, but also from creditors, from shareholders and the executives who run the company, and everyone’s going to have to get together here to build companies that can compete in the future.” Mostly correct, not entirely true, highly impossible.
What is really needed is a significant change in leadership. Leadership is the only component that has not changed, to date:
First, there is nothing that suppliers can give as GM has already bled them to death with their target pricing tactics or taking the 30 days net discounts even though they are paying net 60, or more. The suppliers are already stretched thin by GM’s purchasing strategies.
Second, while the legacy costs associated with the unions are a point of contention. It is hard to criticize the unions for the recent concessions they have made that make them more competitive in real costs to non-union foreign based workers. With the exception of the elimination of the jobs bank, there is not a lot left to give.
Finally, the recent retirement of Bob Lutz and the move of Tony Cervone to United Airlines, signals that the gravy train days of the executives at GM are obviously over. It is about time. But it is quite overdue.
Conclusion? It is time the entire executive suite be given a layoff in much the same way layoffs are given to the common employee–no golden parachute, normal severance package, and nothing else. As, President and CEO since 2000, Rick Wagoner has been the unproductive force behind GM’s losses in market share, stock price and profits. Wagoner did not take any real or corrective action until he sensed that he could convince Congress to fork over taxpayer money to save his job and his company. Then and now he seems to be real busy and real aggressive in proposing change. For Wagoner, these actions are way too little and way too late in the game. The best course of action for our government is to empty the executive suite and ask Jack Welch and Warren Buffet to build a team of experts to get GM in order. In the meantime, get Rick Wagoner out of GM–he does not deserve a second chance.
What are your thoughts? What do you feel about Rick Wagoner’s performance and whether he deserves to keep his job?
The Five Agreements that Create Conformity in a Nonconforming Environment
There is a constant, evolutionary change in motion in our economy. The recent economic events of this past year demonstrate that these changes, while potentially unavoidable, are often unpredictable. As businesses strive to chart a reliable and steady course to sustainable growth, the continuous influences of change require them to be innovative, adaptive, and agile. How a business learns to maintain its core values while being flexible and nimble defines its ability to be a sustainable enterprise.
The key components to building and maintaining a sustainable enterprise in the face of constant evolutionary change are:
1. Effectively engaging the customer and enhancing the customer experience
2. Proactively enrolling the participation of all stakeholders in the strategic and implementation process
3. Establishing an organizational culture that is single mindedly focused on one goal, one result
4. Developing a leadership environment that motivates, nurtures and promotes
5. Leveraging the online tools to collaborate, connect, and communicate effectively
Strategic Resource Group, LLC provides two excellent resources for businesses to examine the strength of their organization to respond to this rapidly changing and dynamic environment:
1. Our Strategic Planning Workbook is specifically designed for successful implementation planning in conjunction with our “The Game Has Changed, Do You Know the Rules?” workshop. Business is about change. Understanding how to manage that change and readily embrace the benefits of that change is the key to sustainability. Creating a culture that builds leadership, values relationships, and embraces a single- minded purpose is how a business weathers the storm and adapts in the face of adversity. In this workbook, we provide a step-by-step process, to engage your team in this process of examination and change. We also assist your team in creating an environment that challenges the existing rules and redefines initiatives, ensuring a vibrant and sustaining enterprise. This workbook can be also used as a planning tool for those who want to explore the current situation in their organization independent of the workshop.
2. Our “The Game Has Changed, Do You Know the Rules?”Workshop. In this workshop we apply the content and the information assembled from the workbook. By creating an interactive and collaborative environment, we get your team communicating, solving, strategizing, and acting on the Five Agreements. This program is NOT designed to make participants comfortable! In this environment, challenging the rules and avoiding the traditional is what it takes to make and build a vibrant enterprise. Participants go on a hard ride. In the end, they walk away with a fresh and challenging perspective and are empowered with the confidence and the ability to take action.
Customer service, or the lack of it, will have direct and immediate effect on your revenues. It seems that there are a lot of companies protecting their bottom line at the risk of customer satisfaction. In today’s economic environment, people are very careful how they spend their money. When they do, they want to enjoy the experience. When the experience stinks, they will not be back.
Customer service has always been one of the most essential business issues. In tough economic times it is even more important. Business Week featured an article “When Service Means Survival” that discusses how “keeping customers happy is more critical than ever.” Customers have choices and your business had better deliver what they are expecting when they come to your business. BW also features a list of their Top 25 customer service champs– a great place to benchmark your business against.
Yesterday I experienced the two ends of the spectrum in customer service in less than two hours. I had dinner in Scottsdale, AZ at Macayo’s Mexican Restaurant. I generally eat here regularly; but, like everyone else I have cut back. I really enjoy the outdoor patio and the food. Last night the service was terrible. My order was delivered wrong, I had to help myself to a second serving of chips, and when I needed the attention of my server, I had to actually go into the restaurant and track her down just to get her attention. Not a very good experience at all. Will I be back? Maybe. I can assure you I will think about it twice. And, if I find a Mexican restaurant that features some of the things I liked about this one, I will not be back. Take note that I am at least looking for alternatives–not a good sign if you are trying to build consumer loyalty.
I went to FedEx Kinko’s, excuse me FedEx Office (a huge branding error and a different discussion) in Scottsdale. It was a little later in the night and not very busy. I walked in expecting to have to drop off my order for my Social Media Workbooks. Instead, the clerk started working on copying and binding them right away. In fact, he got busy on it so quickly that I realized that with a 15 minute wait I was going to walk out of there with my order. Great. I will not have to come back to pick it up. My experience was one of pleasant surprise and tremendous satisfaction. I will be back. (Note, this is not the first time I have had a great experience at this Scottsdale location.)
Lessons learned. It takes only one bad experience to lose a customer. When you lose them, they are gone! Can your business risk lost revenues? If the answer is “no”, you had better start paying very close attention to your service–it is the key to sustaining revenues.
According to Wikipedia, accountability is “the acknowledgment and assumption of responsibility for actions, products, decisions, and policies”. It’s way past appropriate to hear someone take accountability for the collapse of their company under their leadership in the midst of this mess. Or, at least have a board hold one of these failed leaders to a higher level of accountability by showing someone out the door. This blame the economy excuse simply does not resonate anymore.
I came across a quote attributed to Alex Rodriguez in an interview where, in admitting to steroid use, he justified it because he felt the need to live up to the expectation of a $250 million contract. Really? So it is the contract’s fault? Sounds like we are supposed to understand a justification defense instead of an accountability statement. I do not need to know why he used steroids. I do not even care that he used the steroids. It would have been more a demonstration of his accountability if he had said, I did something very wrong, very inappropriate, and something that was very contradictory for a responsible athlete. That would have represented his accountability.
An example of accountability is found in the Saturday Wall Street Journal. This article talks about how the marines took accountability for the crash of a jet in a San Diego neighborhood in December 2008. The marines launched an investigation and openly, publicly criticized 12 marines responsible for their actions that would have helped avoid the crash that killed four people from one family. Essentially these people’s military careers are over. They were held accountable and the marines accepted accountability for this event. End of story.
Not to confuse the economy with the real life and death tragedy of the San Diego crash; however, there are lives being affected every day in the midst of this economic meltdown and no none has yet to take accountability for their irresponsible, greedy, short sided policies and actions that facilitated this mess. To quote Peggy Noonan in her article, “nowhere did we see a board come out and say: ‘This is what happened, these are the decisions these particular people made, and this was the result. They are no longer a part of our organization.” It is only appropriate that those who directed this mess be held accountable. We are definitely missing some accountability here. It is about time somebody was held accountable.
In this economic environment fear, an emotional response to threats and danger, has gripped a great deal of people. Businesses are fearful about the future. Revenues are down, spending is constrained, layoffs have become a real possibility and many businesses wonder if they are going to make it through this severe down cycle. What about the employees in these businesses? Their friends, co-workers, relatives, and neighbors have all lost jobs. They know that things cannot continue the way they are or they may lose their jobs. Fear has gripped our economy.
As a leader in your business this produces a bigger challenge. For your business to move past these challenges, your team needs to be motivated and stimulated. Fear has a tendency to freeze people in their tracks. This was no more highlighted to me when I was copied on an email between two people, one of which had been recently terminated and was personally feeling the sting of the event. While the comments were less than motivating or empathetic, its tone spoke to the mindset of many of those currently employed who are simply trying not to lose their jobs:
“You have to approach this without a chip on your shoulder. When I visited you in October, you had sent this book [The Five Dysfunctions of a Team] to your boss asking him to read about how he could change and re-vamp the attitude of his company. Not a cool thing to do in these economic times. While you probably did nothing wrong, these are not times to challenge the President of your company. Whether we like it or not, they are looking for cut backs and it sucks. And, we just need to keep our mouths to the grindstone and work forward. You have to realize that no company really gives a shit about what you think, because they don’t. They just merely want you to peacefully do the job they ask of you.”
When people are simply doing their jobs without any motivation or sense of empowerment to innovate or stimulate change in an organization, that business is at an even greater risk than getting blasted by the economy. As leaders in these times, we must encourage and empower and motivate our teams to find ways to enhance and improve the business. While we are immediately and centrally focused on the revenues and cost side of the business spectrum right now, we cannot lose sight that the ideas or solutions that will save our business is probably not in cost savings. Rather, it will be found in your passionate, motivated, and innovative team working together to turn things around. Great results emanate from motivated and focused teams working together to accomplish great things.
Is your team living in fear? If so, pull them together and get them working together on something other than simply trying to save their job. Playing not to lose is playing defensively. In football, the defense rarely scores. Get your team on the offense. That is where your business has a much better chance of scoring and winning.
In yesterday’s blog I touched on the impact of fear on an organization and how, as leaders, we need to help our team feel empowered and energized to be a component of change and improvement, instead of allowing them to be fearful of the current events and the potential impact on their jobs.
In a very defining blog by Marcia Ruben, she discusses the impact of fear in our own decision making process. In it Ruben says, “The decisions and actions I take when I am in the grip of fear do not move me forward. In fact, they move me backwards. If your reactions are like mine, your actions as a leader could create what I call a Frozen Tangle-an organization paralyzed with fear with little or no creative actions.”
Fear based decisions are not productive decisions. As discussed yesterday, fear is an “emotional response to threats and danger.” As leaders, we cannot make sound strategic decisions when gripped by fear. In this environment our ability to lead without fear will define our business and the focus and the motivation of our team. Instead of focusing in fear– the fear of failure or, the fear of making a bad decision– focus on the outcomes desired and the best paths to drive your business in that direction. Focus on the outcome and the positive net effect that outcome will have on your business. When you do that you are now focusing on something productive and positive. That is the focus you need to have. Reacting and responding to your fears, freezes you and your business and your team. Take the lead and focus on positive outcomes and positive, forward thinking strategies. Your business will move forward and productively into the future.
It is interesting that small business, that sector that has actually created real jobs in the past few years have received less than 1% of the stimulus package funds. With all attention and big stimulus money given to the big companies as part of the economic stimulus, it is big business who have been shedding jobs not creating them. While the small businesses that have created jobs are struggling to survive and cannot access a line of credit are left ignored at the feeding trough.
Lost in this stimulus package–real stimulus and real job creation. Big companies cater to their investors first. Investors are only looking for immediate improvements in profits. There is no real opportunity for job creation until the investors and the analysts are satisfied that the earnings picture for them has improved. There are no jobs on the horizon for big corporate America. The stimulus for real job creation through these big companies will not occur for at least 12 months. Need an indicator of this behavior, look at how ineffective TARP has been at pumping money into the economy. It has been a miserable failure. These banks are using the capital to stabilize their business not to stimulate loans. The economic stimulus will have the same near term results. Businesses will use this money to creatively shore up their balance sheets and generate sales without adding jobs.
Real job creation comes from job stimulation. Small businesses are more adept at innovation, growth and change. Pump a little money their way and they can and will create jobs. But, a little money is certainly a great deal more than the measly 1% built into the package. That is plain insulting. Small business was obviously not something our Congressional leaders or President Obama even looked at as they were writing fat checks. Once again our government has focused on wasting money on the big guys, with all the lobbyist influence and their short-sighted, investor driven behaviors. While the true innovative and job creating machine, the small businesses in this country, are left out in the cold.
Wake up President Obama and Congress–Small business grows jobs!! Send serious stimulus money to the small businesses in this country where it will have a real and immediate effect.
Hard to ignore the statistics. Over 4.4 million job losses this recession, 742,200 in March, 651,ooo in February and no end in sight. Put that figure next to the all the money tossed about lately–$173 billion floated to AIG, the $30 billion that GM has tapped in to, or the whopping $700 billion Troubled Assets Relief Program (TARP) or President Obama’s $787 billion stimulus package. Contrasting the two sets of statistics makes me wonder what the hell is going on?
To anyone who reads this blog, please help me answer these questions:
1. Why are we throwing big money at bad debt while we are blindly and willingly allowing the American worker to lose their jobs at record pace?
2. Does anyone in our government realize that until people who actually purchase things has a job in order to buy stuff, we will not have an economic recovery?
The math is all off. We are propping up corporations and protecting investors while the people who really do spend money and need their money to live are losing their incomes. Here are my suggestions:
1. Investors do not deserve protection from bad investments. It is called “risk” for a reason. Sometimes when you take on “risk” the results are less than desirable. We have created a welfare state for the investor class. How ironic.
2. The government needs to provide more stimulus for the innovations of small business. They are the real job creators. Interesting to note that two hours after I posted a blog on this subject, President Obama added $16 billion to small businesses as stimulus.
3. If your business has been so poorly managed, for example GM losing $82 billion in four years, to the point where you need government aid. Uncle Sam is here for you. Three conditions: First, the entire Executive Team and the Board of Directors must be replaced; Second, all employment contracts are null and void–Mr. Executive, you get the severance package everyone else gets; Third, we will help you decide who replaces these people.
I wonder if anyone would want a bailout then?
This year the joke is on the American Worker struggling to keep their jobs and pay their bills. It is too bad these people are being punished for the irresponsible behaviors of others. It is worse, because our government “of the people” and “by the people” is ignoring “the people” that make our economic engine go! Here’s hoping that next year we can all look at this and smile–I am concerned we won’t be laughing yet.
In the introductory conversation, the information shared and the interest created will have a significant influence on the future of that relationship. We have all heard it many, many times before, “you never get a second chance to make a first impression.” This video clip explores the importance of including a branding statement in that introductory conversation to create interest and provide some understanding of your value proposition as a contact and a future professional resource.
Recently I had the pleasure of exchanging opinions on Twitter with Scott Monty. social media guru of Ford Motor Company. For those who are trying to understand Twitter, this is a great example of how a social media tool allows people who may or may not even know each other to have an exchange of information and ideas. While this was not an in-depth conversation, it certainly demonstrates how easy it is to have a conversation if you want to.
The whole thing started when Scott Monty referenced an article in the Washington Post about the bias of Congress against American manufactured automobiles. The following is the stream of the conversation:
Monty: RT @scottmonty WaPo article about the Ford Fusion Hybrid - stop the bias & try the car http://bit.ly/13xo8r #Ford
Cooke: @ScottMonty Disagree w/ article’s premise. It’s not bias it’s perception–that is a marketing problem. Agree–vehicle is worthy of a look.
Monty: @SalesCooke It’s bias when then don’t own US cars and are making that claim. Marketing doesn’t apply to those not buying.
Cooke: @ScottMonty Good pt. Buying is not the yardstick. If they don’t look at US cars before buying it’s bias. Buying elsewhere after looking is a marketing issue.
Monty: @SalesCooke Still, we admittedly have a ways to go in our marketing & communications efforts to change awareness.
This conversation occurred over a period of fifteen minutes. Several short exchanges that allowed us to share our perspectives. Don’t get social media? One of the most powerful and valuable tools is the opportunity to have real time conversations with just about anyone, anywhere. Now I am pretty sure that Scott Monty is not going to run back to his office and tell everyone about the conversation he had with “The Sales Cooke”. But I am willing to bet that the information he gathers everyday from these types of conversations have significant influence on Ford’s marketing strategies.
From a sales manager or owner perspective, the most important metric is results. Activity can be a great indicator of potential and effort and opportunity. But at the end of the day all that matters is the results. In today’s economic environment I would be lying if I didn’t say I am becoming less excited with all the information about the activities around revitalizing our economy. If revenues are still falling, businesses are still closing their doors and people are still losing their jobs, the results do not reflect all the noise attributed to the activity.
This morning I partially attended the Greater Phoenix Economic Council summit. (Francine Hardaway summarizes this event quite well in her blog.) I became repeatedly frustrated by the rhetoric of people talking about what they are going to do or what they have already done. The motivation for this blog is not to rail against our political leaders for not initiating enough change, which I could. Rather, I would like to use this rhetoric as an example of the behaviors that we encourage daily in our businesses and, more specifically, with our sales teams.
Three points:
1. Activity is not results. I do not have the time for people to tell me what they did last week. Last week is history and it is merely a report of busy work. If they want to tell me what they accomplished there are three things I care about: How many new business deals did they qualify; How many new relationships they developed; How many business deals they closed. Note that these are numerically quantifiable. Sales is a numbers game and if the numbers are in line, chances are the results will be also. (Note: this assumes that the sales model is correct.)
2. Accountability is required. I am less interested in what someone thinks they have accomplished in the previous weeks, i.e. quotes, proposals, meetings, etc. than I am in what they will be accomplishing this week. I am not afraid to hold anyone accountable for their commitments and their plans. If they tell me what they think I want to hear, they will soon learn that they need to tell me what I need to know–what they are going to accomplish this week. Too many businesses, like our government, operate in a world where personal and professional accountability at all levels do not exist. Success is measured in results and results are achieved when people are held accountable for accomplishing them.
3. Have a plan that reflects your objectives. If you know what you need to accomplish work backwards and develop a plan that enables you to accomplish it. When there is a plan, the activities, the accountability and the results will be there. The old adage: Those who fail to plan, plan to fail. Don’t believe it? Look at all the businesses that are struggling-most did not plan on the economy ever changing. How naive. Football coaches spend days and nights into more days going over film and looking at tendencies and weaknesses of their next opponent. They develop a game plan. They determine what they think will work best in certain situations. On game day, they make half time adjustments based on what they are learning as it relates to the game plan. Great coaches, the ones that win most of their games, are masterful motivators. They are also incredible organizers and planners. They win by design, not by accident.
When a business owner, a salesperson, or my politicians start talking about what they have done in response to something, my first thought is “are the results reflecting positively to the activities?” If not, chances are the activities, the accountability, and the plan need some work. Focus on the results. It tells you everything you need to know.
Now that I have your attention-it won’t work. Every time I have someone present to me the “we can save you money on…” pitch as part of their introductory conversation I cringe. Then, I look for the owner of the company because they really need my help. Yes, nearly everyone is looking to save money. That does not mean that by simply saving them money, they will give you the business. If you are the low cost producer and you can save people money, why isn’t everyone buying from you? It is because the purchasing decision involves much more than simply saving money or lowering costs.
Here is what happens when you pitch the “lower your cost” or “save you money” solution:
1. Your prospect hears cheap. Yes, they may be looking to save money. No, they are not looking to buy something cheap that will have an adverse effect on their business in some other way. When you tout cheap you bring risk into the sales formula and most business owners today are risk adverse.
2. You are diluting your value proposition. Your current customers are buying from you for a reason other than “low cost” or “cheap”. Instead of saying “we can save you money”, you need to be saying “we provide businesses with …” and define your value proposition. Businesses are very interested in solutions that add value.
3. You are making brash assumptions that are actually a turn off to your prospect. In today’s business environment people are looking to connect with individuals who have ideas, connections, or solutions for their business. They are not looking for pushy salespeople. When you pitch like a salesperson, they now think of you for what you sell not how you can be a great resource for them. Can you afford to pitch lots of prospects without building connections? I know I can’t. Find a story that defines your business acumen and your potential value proposition for their business other than price. You will build a better and stronger professional connection.
At all costs avoid the “save you money” pitch. It is tired, worn out, and very outdated. People are looking for resources and solutions to their real business issues. Simply saving money is important, though not tantamount. Put value into your sales conversation it is much more productive.
This is a caution to salespeople that real prospecting cannot be substituted through increased networking. While networking can provide access to referral partners and new contacts, it rarely leads directly to new business opportunities. As sales pressures have increased and will continue to increase, so too has the number of networking events made available to participate in. If you really want more business opportunities, you need to get in front of the decision makers and not in front of the same old networking crowd.
If you have not had the opportunity to observe the phenomenon associated with Susan Boyle, you need to. Here is a person who least looked the part as a potential reality show music star until she started singing. And then, “wow!” The most amazing part of her performance was that she didn’t know that she was supposed to fail. As a result, her fearless, incredible, moving and powerful performance belied talent that no one could have predicted of her as she walked onto the stage.
In our life we constantly have choices. Do we really envision our success or are we most likely afraid of failing? Educators taught us by emphasizing the importance of getting the right answers thus, inadvertently conditioning us to be afraid of getting the wrong ones. Our parents spent more time telling us “no” than they did “yes”. Many of our life choices have been safe and responsible because we were encouraged to simply get a job and work hard. By becoming “Dilberts” we have become a risk adverse society that limits individualism and personal innovation. Playing it safe is entirely different than living the dream.
Enter Susan Boyle. A woman who fearlessly does not realize she is supposed to fail. Now, it is your turn. In this challenging and changing environment it is time for you to take control of you! As you enter into your daily chores envision your success. Believe in what your value is. Take steps everyday to be who and what you have decided you want to be and therefore, are. Do not let anyone derail you from your mission, vision, and goals for they may not be able to envision the potential in your dreams. Surround yourself with people who see you for your value and your greatness. Those are the ones who will stimulate you, motivate you, and drive you. Remember, you bring something special to this world and worrying about failing is not part of the success formula. Remember, you are not supposed to fail. You are special–go make it happen!
It may look like a video for a cooking class but it is not. Sales Cooke takes a look at the analogy of “just like peeling an onion” and challenges the premise. According to Sales Cooke, true information gathering in qualifying requires digging deep into the opportunity. Peeling the layers away just doesn’t work and a knife-like approach is much more effective.
Mark your calendars for this very exciting and informative seminar. There will be a valuable workshop offering at this event. Please be sure to attend!
While businesses may not be interested in buying what you are selling, they quite possibly might be need the solution you are providing. Think about that for a minute. In today’s economic climate, businesses are not looking to spend money, so do not waste your sales pitch on them. However, businesses are always looking for solutions to the challenges they are currently facing. If your offering provides a solution of value, there is an opportunity for a relationship.
If your sales people are struggling to close deals and bring in orders, chances are quite high that they are pitching your products and are way to busy selling stuff. People do not want to deal with “salespeople pushing a particular product or model or option because they want to sell it.” (Skip Anderson) Take a different approach, think how your product offering would benefit the customer’s business. If it is benefits like lower costs, saves time, or make someone’s life easier, forget it. That is a pitch that is tried and tired. Aim for real benefits like taking over a component of a job function that is so time consuming that it prevents a person from getting other components of that job function accomplished. Or, enables the business to access resources that eliminates waste or inefficiencies. Those are tangible benefits. (This approach has been newly coined as provaction-based selling.)
Start with a learning question, “if you did not have to deal with ‘X’ what would you be spending your time and money on?” Now you have an opportunity to bring a solution to the business that enables your customer the ability to deal with some other problem or issue in their business. Your solution becomes tangible, it is real, and it is very personal. Quit the sales pitch and start solving some problems, it is will be much more productive.
Great sales is quite simple–build powerful relationships based on trust and become a valued business resource.Focus on those two priorities and you will be successful.Cooked Up Sales provides a clear and concise methodology designed to provide you with the insight and the tools to effectively build relationships, understand how to really identify what your clients need, and how to create and deliver valuable solutions.
The joy that comes from connecting with people, building long lasting professional relationships, solving problems, and being a valued consultative resource is what really makes effective selling enjoyable. This book is for people who are interested in learning how to create business relationships, solve problems, connect with your resources and, along the way, enjoy the successes associated with these activities.
Readers of this book:
Discover the selling power of building effective relationships
Understand that selling is all about listening, learning, understanding and solving
Recognize the negative effects that pure, traditional sales behaviors have on the selling process
Realize that the best solution is not what we want to sell, but is what the customer really needs for their business
Are entertained and enlightened by the personal experiences injected throughout the book
Price: $19.95 plus S+H
What the experts think:
“Congratulations David! Your book, Cooked Up Sales, is a winner. You have effectively created a very simple to understand, yet powerful sales process for the small business entrepreneur and the early career sales professional. So many people misunderstand sales, and have no clue how to build a process that works for them, that they keep the failure rate of start-ups needlessly high. I believe with your book you have helped your readers get past their own fears and doubts about being able to even be successful, into developing the critical processes necessary for their companies to build the performance they only dreamed of the day they opened. Well done!”
Michael D. Goodman, Executive Director, International Sales Pros Association, LLC
“Every entrepreneur and small business owner is selling something and most of us wish we were better at it. Forget spending thousands of dollars on sales training…Cooked Up Sales gives you all the ingredients you need. In plain English, Dave explains the entire sales process – everything from how to qualify a prospect to closing a deal and managing the relationship beyond. Read this book and start selling the right way NOW!”
John Adam Kowalski, CEO/President, Pivot Productions and Executive Producer/Host, The John Adam Show
“Dave is an expert at the business of sales and sales process. Sales executives and business owners are always looking for a leg up on the competition. Cooked Up Sales delivers that advantage. It is a quick read full of insightful examples and sales process tips. Following Dave’s recipes will result in a bountiful sales dinner indeed.”
Andrew Bourne, CEO/Serial Entrepreneur, WayPoint Technologies Inc
“’The Sales Cooke’does it again!All too often, businessmen and businesswomen are inundated with a plethora of business self help books designed to catch your attention and your pocketbook!As you know, choices abound with the ‘must have’ strategies and tools all positioned to be THE very best thing to solve all of life’s problems.Sound familiar?You bet it does.Enter ‘The Sales Cooke.’David Cooke has taken a very straight-forward, non-nonsense approach to Sales and the Sales cycle.His clever use of analogies is simple, understandable not to mention easy to execute.Mr. Cooke draws his strength from the school of ‘hard knocks’ thereby providing relevancy for the reader and those serious about trying a simple approach toward Sales.This is one ‘recipe’ you don’t want to overlook.”
Mark Yadach, Chief Operating Officer, The Shenton Group, LLC
“Too many authors try to makes sales more complicated than it really is. Cooked Up Sales is a refreshing return to basics that provides some excellent insight into managing the sales process, building relationships and understanding your customers. All of this leads to a roadmap for creating and communicating compelling win-win solutions that get you to “yes”.”
I was attracted to a blog topic this morning about the fact that “we don’t live in a world of should”. When I read this blog, I felt that there was more potential in developing that concept. As a results oriented person, “should” is a word I work very hard at keeping out of my vocabulary. As Lance Haun says in his blog, “do or do not. There is no try.” I couldn’t agree more. With “should”, it goes deeper than that.
When we use the word should, we are recognizing a need to do something. By using “should”, it is as if someone else is responsible for taking action. I don’t buy that. If you observe a “should” you have now become accountable for being part of the action to change it. If you believe someone “should” dress differently, communicate better, treat people better, work harder, or raise the quality of their work, you have simply passed judgement. I do not have time for judgement related observations, I am too focused on results. If it is important enough for you to pass judgement, you are now accountable for taking action. As the person who identifies a need, you now need to take action to fix, correct or improve it. If you are not willing to create change or help make improvements to a situation, take the “should” commentary out of your vocabulary and stop passing judgement. Listen to yourself when you use the word “should”. My bet is that it is often linked to what you think someone else needs to be doing.
Why don’t you simply replace that “should” with the word “need”. Need is more action oriented. When you determine a need for someone, they cannot get there without your coaching or insight. “Need” has a hint of accountability and it certainly is not judgemental. Think about it.
Having participated in over a dozen presentations on social media this year, I am still taken by surprise at the fear or reluctance of people to start using the powerful social media tools available to them. Many people are interested in learning and understanding what social media is and are really trying to conceptualize how it can help them in their sales and marketing efforts. However, it seems that until they totally understand how this all works, dipping their toe in the water is about all they can muster at this time. As I continue to educate, I enjoy the teaching and learning opportunities these presentations provide; but, I continually am still continuously frustrated by the tentative responses to engage in a strategy process. Until now.
I ran across a great blog yesterday that encapsulated the issues of the fearful as it relates to social media. In this blog, “Fear and Loathing in the Stock Market and Social Media”, Shannon Paul talks about the similarities between the stock market and social media and how ignorance, greed, and patience all work against people as they explore the potential for individuals to embrace social media. I found this article very refreshing as it demonstrated an insight into the psychological issues I have observed as I attempt to educate and enlighten those who seek to understand and engage social media.
As a passionate advocate of the potential of social media, my mission is very clear. It is my commitment to help people envision their marketing efforts in this new and different frontier. First, I educate. Then I provide the tools and the means to effectively develop a strategy and a plan to begin to purposefully utilize defined social media tools to start growing their business in this medium. Finally, we put the plan into place with a customized program that helps people strategically leverage the best social media tools to grow their business. For the naysayer marketers and the greedy tool sellers, get out of the way–I am going to help businesses leverage social media marketing effectively and profitably. For that is what I do.
Other great social media blogs from this past week:
As businesses continue to shed jobs to maintain a healthy bottom line, there is an element to these activities that most financially inspired leaders are missing — the long- term and very real cost of these layoffs. The short-term benefit is theoretically a healthier bottom line. The long-term cost is the impact on intellectual property and corporate culture. And, twelve months from now when these companies start to hire again they will spend time, money, and resources training the new people to do what the terminated and eliminated people already knew how to do. I would like to challenge all business owners to take a broader view at the real essence of the corporation and creatively look past the mere financial components and short-term thinking.
While in Detroit last week, I had an opportunity to reconnect with one of my colleagues, Leslie Kusek. In talking Detroit, layoffs and job losses are always part of the conversation. Leslie nailed it for me when we were talking about the impact of these job losses on the corporation. The impact is more than financial. It is cultural. As Leslie rightly described, “corporate culture is the essence of a company“. One of the fundamental keys to corporate sustainability is corporate culture. Massive layoffs and job reductions will have long-term financial downsides. More importantly, the real and immediate downside is the impact these actions have on the essence of the company — its culture.
Corporate culture is:
That common thread that connects your people to your clients, your market, and your industry.
That component from which your unique value proposition is derived and sustained.
How your team gets motivated and focused on the mission, values and goals.
Anyone can look at a balance sheet and reduce head count to stabilize the financials. Numbers are not creative or innovative; they are just numbers. It takes a real leader to recognize how to creatively make those decisions with an eye toward maintaining the essence of the company — the corporate culture. Before you take another knife to soul of your company, think about both the immediate and long-term impacts these decisions will have on your business and focus on how to save the company while protecting the essence of the business. And, if you get stuck, call me and I will walk you through it.
Way too much time, energy and pressure are being spent “pitching” in sales calls today. Businesses are not looking to spend money; but they are looking for solutions to the challenges they face in their day-to-day operations. In order to effectively position your offering, you need to know what your unique value proposition is. In this video, The Sales Cooke talks about uncovering that unique value proposition.
I have not been one to spend a whole lot of time emphasizing the art of persuasion in selling. It has been my experience that persuasion training as part of sales training often crosses the line into manipulation training. According to Wikipedia persuasion is “guiding people toward the adoption of an idea, attitude, or action.” While manipulation is “a means of gaining control over others by methods which might be considered unfair” or unscrupulous (my word). It seems that too often the sales methodology is to “do what it takes” to get someone to buy something. That does not feel like a persuasion technique–it feels more forceful or manipulative. As a result of the fine line in this behavioral discussion, I rarely talk about persuasion in my sales coaching or training.
That said, I ran across a blog that I enjoyed for the way it defined the key components of persuasion. Kept to the strictest teachings of this blog, I could easily encourage people to add to their sales toolkit the art of persuasion. The author, Alexandra Levit wrote this insightful blog, “Want to Learn the Art of Persuasian? Consult Aristotle“. I found it informative for the simple reason that she broke effective persuasion into four components that very closely align with my relationship and solution based selling mindset. The four keys to persuasive behaviors are:
Show credibility: Credibility and rapport are the foundation for effective relationship building activities. You cannot build trust in a relationship without credibility.
Find ways to identify with your audience: As explained in this blog, “identify” means learn and understand, so that you can better communicate and position yourself. Most salespeople miss this one by a mile. They are so busy working their agenda that they fail to really learn and connect with their clients. Listen and learn is how you truly “identify” with your clients.
Use logic: Persuasion requires sound reasoning. Persuasion is not emotion based. Clients are looking to solve problems not simply buy your stuff. Thinking that they need what you are selling is not logical. Demonstrating how your offering solves a direct and specific problem with a clear and defined value is logical and very productive.
Incite positive emotions: The words that Levit uses are “confidence”, “emulation” and “friendship”. Personally I would avoid the friendship goal as I am not looking to be liked– I am looking to be trusted. That said, generating positive emotions and energy creates a great deal of confidence and trust.
As a sales professional it is important to remember that persuasion is not part of a game to get someone to do something in your favor. It is however, a valuable tool that can help you better connect and communicate with your clients to build strong and productive business relationships.
Whether it be the current economic mess, the failures in our business or place of work, the collapse of the US auto industry, the problems at our kids’ school or just about any sporting event. When something goes wrong, someone is to blame. Blowhard pundits and broadcasters like Rush Limbaugh have made a career out of criticizing everyone who disagrees with his view of the world. They often make it quite clear they are absolutely not the one we blame for the problem. Worse, they are rarely the ones who want to figure out and put into real action what needs to be done to fix, correct or improve the situation. These people are not really helping they are simply inciting. As a society we cannot fix any problem without taking real corrective action. True leadership is making a commitment to effectively guide people to accomplish great things. We are a society looking for leaders. We are not looking for more people to remind us of all things we need to blame people for.
Looking for inspiration and support with your sales activities?
As we watch the US automotive fiasco unfold before our very eyes, the consumer is faced with a new set of very interesting choices. Do I buy from a foreign owned company? Do I buy from a government owned company? Or, do I support a struggling US based company trying to turn the business around without the benefits of a “controlled bankruptcy” and government funds? Respectively the choices are Chrysler, GM and Ford. While President Obama 
Let’s get right to the point: 
a very 
conjunction with our “The Game Has Changed, Do You Know the Rules?” workshop. Business is about change. Understanding how to manage that change and readily embrace the benefits of that change is the key to sustainability. Creating a culture that builds leadership, values relationships, and embraces a single- minded purpose is how a business weathers the storm and adapts in the face of adversity. In this workbook, we provide a step-by-step process, to engage your team in this process of examination and change. We also assist your team in creating an environment that challenges the existing rules and redefines initiatives, ensuring a vibrant and sustaining enterprise. This workbook can be also used as a planning tool for those who want to explore the current situation in their organization independent of the workshop.
In this economic environment 
“wow!” The most amazing part of her performance was that she didn’t know that she was supposed to fail. As a result, her fearless, incredible, moving and powerful performance belied talent that no one could have predicted of her as she walked onto the stage.
Great sales is quite simple–build powerful relationships based on trust and become a valued business resource.
o these activities that most financially inspired leaders are missing — the long- term and very real cost of these layoffs. The short-term benefit is theoretically a healthier bottom line. The long-term cost is the impact on intellectual property and corporate culture. And, twelve months from now when these companies start to hire again they will spend time, money, and resources training the new people to do what the terminated and eliminated people already knew how to do. I would like to challenge all business owners to take a broader view at the real essence of the corporation and creatively look past the mere financial components and short-term thinking.
