Author Archive
Who’s Time is More Important?
Posted by: | CommentsI had an interesting conversation the other day with a contact of mine:
Friend: I have to get to my weekly sales meeting.
Sales Cooke: Weekly? How long do your sales meetings last?
Friend: They start at 1 and go on forever. Usually until after 3.
Sales Cooke: Two hours or more? Really?
Friend: Yes. The owner of the company wants to go over every account and detail.
Sales Cooke: How many sales reps?
Friend: Six
Wow! What an incredible waste of time.
What is the cost of wasting 90 minutes in this meeting per week? One less client meeting. Two client phone calls. An extra half-day that your customer is waiting for a call back on a question.
My sales meetings start on time and last exactly 50 minutes when we get into our rhythm. Note: It takes about four weeks to get into rhythm. Here’s the agenda and the process:
- 10 minutes: Check-in. Everyone has about 30 seconds to check-in with something personal and professional.
- 5 minutes: Review the weekly metrics. Each member reports on their activities as it relates to the defined metrics. Note, these are a reporting of activity figures, not activity stories. No one has time for sale stories. Most are BS anyway.
- 10 minutes: Celebrate big wins. There is always one deal to discuss and celebrate. We spend time on successes and hear how they were won.
- 10 minutes: Go around the room and identify any issues that need attention. I make note of them and begin to follow-up on them immediately following the meeting. We do not discuss them. We only tag them.
- 10 minutes: Learning module. I take a sales topic and have quick learning module. They may involve someone doing a quick sales presentation, answering a sales related question, or role playing. I keep it short. It keeps people sharp. And always provides ongoing learning and education.
- 5 minutes: Everyone goes around the room and declares what they are going to accomplish the next week. I make note of these and follow-up later to see how I can help.
- Adjourn: Total time = 50 minutes.
Sales meetings are to be simple check-ins to know what happened, what needs attention, and what will happen. Anything else is a waste of everyone’s time.
Making Timely Decisions
Posted by: | Comments“I won’t hang onto a marginal salesperson when the economy is bad and I shouldn’t do that even when the economy is good.“ ~ Carrie Davenport, Century Personnel Inc., Carmel, Ind in WSJ 03/02/2010
In pre-collapse economics, when businesses made money by accident, staying true to sound economic and business strategies were put on hold. After all, they were so busy making money, what was the problem? Now, businesses can only make money by design and must continually focus on strategies, tactics, and behaviors that will make and keep their businesses healthy. What a difference a few years makes.
The lessons to be taken from this quote is that business owners have an obligation to hire, develop, and hold accountable their entire team to clearly defined performance expectations. Building a healthy, vibrant, and sustainable business requires an entire team operating as a unit to accomplish great things. There is no room for marginal performers at any level in an organization. When there is a performance problem, it must be corrected or eliminated. And the appropriate action must be timely and decisive.
Keep in mind that simply deciding a team member is not the only role for ownership or leadership in a business:
- Leadership is accountable for hiring, development, and clearly defining expectations and metrics. If there is a disconnect in the effectiveness and consistency of this process, the talent of the leaders need to be called into question.
- The team is accountable for their collaborative, supportive, and mentoring roles with their teammates, as well. A divided or selfish team is not sufficiently in sync and will inhibit the growth of the business. Notwithstanding the functional differences of various roles, every team member must be on the same page as to where the business is going and their respective roles as team members to make certain the business gets there.
- Underperformers deserve the opportunity to get it right or get out. However, it is the role of leadership to provide the motivation and support necessary to give an underperformer a reasonable opportunity to improve.
Today, successful businesses are built on the framework of a sound strategy, a solid community, and a high level of accountability. In the past, it was acceptable to look the other way at underperformers or divisive behaviors. That is not true today. When something is out of place, corrective action must be taken and taken immediately.
Recognize and Embrace Your Passion
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I have had many conversations with people who dream out loud what they really want to do with their life. In nearly every conversation they have something they are passionate about and rather skilled at. Their challenge is in pursuing it and believing they can do it.
Often they begin defining their passion in terms of a job description and struggle to figure out how they can monetize it. That thought process usually creates barriers, not opportunity. I advise them to go through a more strategic and creative thought process that allows them discover the options for turning their passion into a business, a hobby, a cause, or a service.
Instead of dealing with traditional roadblock thinking about your passion, I encourage the following thought process:
- Clarify your true passion.
- Define and articulate how others would benefit from this skill and energy.
- List options and opportunities as to how you might provide this to the world.
- Initially avoid the traditional thoughts about whether this would make money, require money, or fit into something easily described to others.
- Look at the options and decide which one best defines their interest and devise a plan for turning it into something.
- Then define how passionate you are about this opportunity by taking action and “owning it” or do nothing.
This approach takes people out of the “I have a dream, but don’t know whether it would work” mindset and facilitates a “what’s possible” interaction. For an example of this kind of thinking, read the article, “Don’t Miss That Aha Moment.”
When It Comes to Greed – Perception is Reality
Posted by: | CommentsWhat exactly is greed anyway?
Who gets to decide what amount of profit is greed?
Yesterday’s blog elicited some interesting commentary. The ones that captured my attention the most were the above questions. I decided to take a stab at continuing the dialogue on greed.
First, greed is subject to interpretation. Usually the person behaving in a greedy way never sees it that way or, has decided that they have earned some type of privilege that allows this behavior. Those that recognize or experience greed are usually the people effected by its behavior. For example, the banks that benefited from the various bailouts keep a tight reign on new loans, and declares record profits and bonuses appear greedy to the outside business world. Banks and those in high finance defend these behaviors as not totally accurate. To the rest, it sure looked like greedy behavior. Perception is reality.
Second, greed is an action that hurts or adversely affects other people. Profit taking or protecting behaviors that mollifies one party at the calamatous detriment to another party is greedy. Partners that stick it to their partners, employees who embezzle from the company, executives who have two sets of business and expenditure rules are all greedy behaviors. Either everyone benefits, plays by the same rules, or is minimally impacted or it is greedy. Perception is reality.
Finally, greed is narcissistic. As greed is subject to interpretation, greed can also be justified. Layoffs can be and often are a downside result of a declining business. However, massive layoffs to simply and swiftly manage to the balance sheet is greedy. There are always creative ways to manage, contain, and control costs; however, in the recent wave of layoffs the behaviors reflected one philosophy, react to a problem with a quick solution to protect the financial health of the firm without looking at the long-term impact to the business or the short-term affect on its people. These layoffs were simply the most expeditious action. The people benefiting from this behavior was the ownership class at the expense of the retained employees and at the pain of those who were tossed aside. Remember, perception is reality.
I don’t know if I have the answer as to what amount of profit taking is not greedy. However, I do know that when profit taking is short-sighted, selfish, inconsistent, causes pain to others, and is not holistic in its process, it is greed. When the participating community (workers, owners, suppliers, customers) do not benefit from their relationship with the organization and there is adverse cost associated with that relationship based on profit taking decisions, the related behavior is greedy. In the end, perception is reality.
NOTE: If you are interested in obtaining a copy of the white paper on this subject, “The Sustainable Business Model™”, please contact me: dave@salescooke.com. I will be happy to forward you the information.
Taking Greed Out of the Business Equation
Posted by: | Comments“As trainers and coaches we do bear some responsibility to help build a better future, one less dominated by greed. The world is driven by financial greed and economic dogma – one controls the earth’s resources and the others are its apologists.” ~ Dr. Henry Mintzberg
The necessary shifts in our business mindset are clear, yet complicated. How do we grow our business, make a significant profit for our shareholders while engaging, developing, and inspiring our team to do great things? There is a predisposed conflict inherent in businesses between the investment in it and the siphoning profits out of it; thus, ensuring and maximizing shareholder value while building a sustainable and thriving enterprise.
The power of Dr. Mintzberg’s words resonates: greed does not drive great business, it thwarts it. As an advisor and strategist to business executives, my obligation is to help them develop a sustainable business that maximizes value for all those engaged in the business. These participants include shareholders, employees, suppliers, and customers. The community of any business is greater and more powerful in its totality, than simply catering to the whims and desires of its shareholders. Businesses have an obligation to the community of all its participants to leverage their collective needs, desires, talents, skills, energy, and contribution to build a larger, more cohesive and stable business model.
As businesses begin to rebuild, recover, and grow in the rebirth of the economy, the key to the pace and effectiveness of that recovery depends on the businesses ability to invest in itself and build a collaborative, innovative community. In this formula, greed or the recovery of lost assets or equity will only interrupt the recovery process. Strategically focusing on the power of the community in the business creates a machine that sustains itself and feeds the needs of all its members appropriately.
If you are interested in obtaining a copy of the white paper on this subject, “The Sustainable Business Model™”, please contact me: dave@salescooke.com.
Note: The featured quote was taken from an article featuring Dr. Minztberg. If you have ever had the opportunity to read his books or articles featuring his thoughts, absorb them. Dr. Mintzberg has the corporate dilemma covered. He is rapidly becoming my inspiration and my guide for all things business.
Your Relationships Define You!
Posted by: | Comments“Always Remember: Relationships are more important than a job.” — Benjamin McCall
A big component of my revenue philosophy is the power of relationship based, solutions oriented behaviors. Whether we are looking to advance our career, find a position, or close a deal, our effectiveness in building relationships in this process will define our success. In Benjamin McCall’s blog, “It’s about the people, People! A rant on Relationships” he talks about those very things. Relationships are the key to our ability to get where we want as we all need friends, fans, advocates, and advisers to help us be great. And we often don’t realize the many opportunities we have along our journey to build these relationships.
I was guilty of this myself. In a recent guest blog, I referenced my own experiences in learning about the power of effective relationships. When I was focusing on my “career” and working up the corporate ladder I paid very little attention to the relationships and connections I could have been building. When I shifted focus and started engaging in the activities I enjoyed doing and did well, the relationships I developed have carried me. I certainly wish I had those connections from the first half of my professional life.
Remember, our successes are influenced by the way we connect with the people we meet along the way. Our effectiveness in valuing and building strong relationships will make that journey more productive and fulfilling. Enjoy the experience and be receptive to all those relationship building opportunities.
Dear CEO: Now is the Time to Feed Your Growth Machine
Posted by: | CommentsThere was a great blog yesterday which emphasized the silly decisions executives make with their sales program when sales are down. In “Note to CEO’s, Stop Strangling Sales,” the author talks about a recent survey and the emerging trends in sales teams based on declining revenues. The list of trends is frightening, in that it demonstrates a defensive mindset with the only part of an organization that needs to be on the offensive:
- lead generation budgets had been frozen or reduced by 67%
- training investments per rep decreased by 13% on average
- new investments in CRM technologies had curtailed
- overall revenue plan attainment in 2009 dropped to 77.9% from 85.9% during the same time period last year
- 85% of firms have raised their quotas for their sales reps
“How the heck do they think that those reps are going to make those numbers without good leads, better training, and new technology?” Good question.
CEO’s, Executives, and Owners: If you want your business to grow you had better get out of the way of your sales team. It is time to revisit the investment conversation for your sales department. However, before you do that, I would expect that you, as leaders, have a better handle on what constitutes good strategic decision making and what constitutes an effective dismantling of the potential growth machine.
Here are the steps that need to occur before you take the ax to any current plans or write a check to invest in a new one:
1. Know where your most effective (profitable, repeatable, scalable) market is.
2. Know what the value proposition is that makes that market the most valuable opportunity for your business.
3. Know what the message, the story, and the strategy is to attack that market like a lion attacks the weak antelope in the pack.
4. Invest in the proper development program that repositions your entire team (executives, managers, marketing and sales) to properly get revenues cranking in this market.
Instead of cutting back, put the tools and the resources to get things in an offensive mode. If your leadership team cannot readily answer the first three questions without doing research, spending money, or taking a long pause, find new leaders–the ones you have are out of touch. It is time to kick your business in gear with people who know what they are doing and know how to do it effectively and efficiently. Invest in growth or your business will be listing on its side awhile longer. As for you, either join in the program or get out of the way. This is not the time for a general who is not in the trenches fighting the battle with his troops.
If you need some direction, call me. This is what I do best and I will get you there.
The Better “Team” Always Wins!
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I had the pleasure of watching a condensed replay of this year’s Super Bowl on the NFL Channel this weekend. Skipping the huddles and the constant TV chatter was awesome. Injected into the mix were the “wired” players and post-game interviews and several instant replay looks of the big game. Quite cool. I may wait to watch future Super Bowls this way.
What caught my attention the most during this replay was the reminder of the importance of a focused, committed, and prepared team. This Super Bowl, like several in recent years, featured the star and his guys vs. the other team. In 2008 it was “Tom Brady and the Patriots vs. The New York Giants“, in 2002 it was “Kurt Warner and the Greatest Show on Turf vs. The New England Patriots” and this year it was “Peyton and the Colts against The New Orleans Saints.” Funny how the “star and his guys” always lost to the “other” team. It is as if in the hype, everyone forgets that there are actually 22 starters, a multitude of key role players, and a coaching staff involved in the game, too.
One guy will not win the game by himself. One component of a team cannot win a game without the fully-committed, support of the rest. In all three of these Super Bowl cases, it was obvious to everyone who the winner was going to be. Funny, the other team didn’t know they were supposed to lose. And didn’t play like they were expected to lose.
Business is the same way. There is far too much emphasis on the separation of powers in most organizations. Too many businesses allow their internal teams to operate independently with each other. Functionally and operationally, most businesses are divided into the sales team, the marketing department, the finance group and there is the executive team. The greater the separation and distinctions of the respective roles, the less the organizational team functions. The closer the lines of communication, interaction, and strategic collaboration, the more likely the business will be on a winning track. When these self-important, separated departments face a crises, they are not organizationally equipped or structured to weather the storm.
When I replayed that Super Bowl game the one thing that struck me more than anything–the New Orleans Saints as a team was more prepared to win than the Indianapolis Colts. Their leader was engaged, prepared, calm, emotional, and focused. So were the players.
Businesses can and do struggle with external challenges everyday–clients, competitors, economics, etc. The businesses that are structured as a well-led, well-prepared, cohesive, cross-functional organizational unit are much more prepared and positioned to win than any organization that allows any of its superstars to become the center of attention. Build a strong team in your business — great teams always win!
The Blue-faced Salesperson
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You review your proposal with your customer, go over all the fine details of your wonderful offering, and the customer says, “Looks good. Let me look it over and I will get back to you.” When you hear those magical words, don’t hold your breath. Or, you will end up blue in the face. Do they really get back to you? How many times has your customer actually called you with a response to your proposal?
Avoid being that blue-faced salesperson and start managing your proposal process more effectively. Here are some simple tips to help you avoid this perpetual trap:
- Get out of the proposal business: Effectively qualify your customer in such a way that you both come to an understanding of what they need, why they need it, and how you can help them. Leave behind a simple summary of what your proposal would look like–issues, offering, timing, and loosely estimated costs. Leave that behind for them to ponder. (Pictured is the tool that I use for this.)
- Only write agreements: Everyone desires and requires a formal document as part of the business relationship. Once a client commits that you are the person they will be doing business with, sit down with them and write-up the agreement. Arrange a time to review and sign the formal document and you are on your way. If they cannot commit to making an agreement, they are not yet fully engaged in doing business with you.
- Always know what will happen next: At the end of every meeting, always schedule a follow-up visit. If the customer must take some time to review the proposal (even though I warned you not to submit one), do not leave their office until you have a confirmed follow-up meeting. You need to do this with all your sales calls. Formally established follow-up meetings are the most effective way to professionally manage the sales process.
The most effective way to protect your intellectual property and manage the sales process is to control how you share this information. Your product offering is only valuable if you make it valuable and you establish that your customer values it, too. Waiting for their follow-up to a proposal you gave away without any commitments or obligations is not how you control the process. The result of that process is you find yourself waiting for that follow-up meeting until you are blue in the face. Take control–manage your information and your process more effectively.
The Most Powerful 7%
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According to the experts on communication, words represent only 7% of our total communication. How we express those words, our intonation and inflection and other components make up the other 93%. How many times have we heard, “it’s not what you say, it’s how you say it.“ For the most part, that is quite true. However, if you really listen to the words people use, the story those words tell are extremely revealing. Words may be only 7% of the communication package; but, they often tell everything about the person you are talking with.
When I am talking with people I listen very carefully to their words. Words indicate emotion. Words reflect energy. Words can demonstrate frustration, doubt, fear, excitement, joy, and purpose. There are positive words and negative words. People believe they can mask or control their story by saying very little about certain things or create a sense of opportunity by saying a great deal about something else. However, in the end when you listen to the word selection, whether it is extensive or brief, the words always tell the real story.
Next time you are having a conversation with someone, take the time to listen to what their words are saying. Communication is made up of a lot of different components, but their words tell you everything. Those words are sending a very powerful message–pay attention to them.
Photo Credit: Darwin Bell
