Archive for Growth Strategies
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.
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.
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!
Whether You Win or Lose, Know Why
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How can you grow your business when you don’t ask your customers why you won or lost?
Knowing why you won a project or converted a prospect into a customer provides valuable information. It gives you the opportunity to learn from your successes and make them repeatable. When your successes have a consistent thread or theme to them, it helps you identify and define your competitive advantage and your value proposition. These successes need to become part of your success model as you learn and gather this valuable information.
Knowing why you lost a project helps you understand what you did not do that either the customer wanted or what your competitors provided. Either way the information your prospect provides helps you understand what you could do better next time and increases the likelihood that you will better position yourself to win the next project.
Whether you win the deal or lose the deal, ask your customers the question “why?” And since you are soliciting an opinion this is not the time to defend your losing position. You are there to learn and understand, not to try to change their minds or defend your proposal. If you lost the project remember, their perception is their reality–accept it.
Finally, do not send your sales representative in to gather this information. This is a face-to-face meeting best conducted by the sales manager or higher. If you would like to include the sales professional in this meeting, go ahead. However, this is not their meeting, it is yours. Get the information, thank them for their time, thank them for the business if you won, and get out. Take this information and use it to your advantage on the next opportunity. This needs to be part of the sales cycle and the sales process.
photo credit: iLuv
How Good is Your Game?
Posted by: | CommentsI was reminded of a recent conversation I had with US Representative Harry E. Mitchell (AZ). I was intrigued by his background as a former educator and his experience at various level of local, state, and national politics. In our discussion, he provided me a great anology for his experiences at the different political levels:
“Moving from local to national level politics is a lot like the transition from high school, to college, and to pro football. As you move up to each level the game is played faster and they hit a lot harder.”
There is a lesson for us in that quote, too. How good is your game? Are you playing your game to the business level that you need to?
Whatever your business goals, your function or role in your organization, and the vision you have for your professional career, you have to play your game at the level of your targeted audience. If your game is not up to the level of those you desire to do business with, you had better improve your game.
To improve your game study the people you want to do business with. What are their behaviors, attitudes, appearance, priorities, habits, needs, etc? Then examine your communication style, your message, your organizational skills, your value proposition, and your appearance (yes, it matters). Are you properly prepared to play the game at their level? If not, get busy and make the adjustments. In today’s economy, things are moving quite quickly and everyone is looking for solutions from their professional resources. Make sure your game is up to their level and you will be much more effective.
Sales Cooke Recipe Tip: Businesses only have time for professionals who can add value. You have to be ready to play the game at its highest level if you desire to succeed in this environment.
Knowing What Your Customers Need
Posted by: | CommentsWhen do we know when a customer needs us? Careful now, this is a trick question.
Our customers need us when they declare they have a problem or an issue. Until then, we are merely confident we may be able to help them. We may even be positive we can provide them a solution to their issue. But, until they declare that they have a situation that requires a solution, we know nothing and we can do very little to help them.
What is the best way to position ourselves to help the customer in need? Simply put, ask the open-ended, probing questions that encourage them to talk about their business, their vision and goals, and the obstacles that are preventing them from getting there. These obstacles are the most critical issues that your customer is focused on.
When you identify the issue, what is the next step? If your sales solution is on their needs list, you get busy helping them discover how you can help them. If not, you help them by connecting them with the best person or organization to fix their most critical issues. Either way, once you know what their challenges are, you get busy doing what you do best–provide value to your clients by connecting them with the solutions they need for their business. Remember, these are not the issues you want or believe they have. These are the issues that you know your customer has, because they told you.
Sales Cooke’s Recipe Tip: Avoid wasting your customer’s time trying to convince them they need you and your solution–help them discover what their real issues are and not what your agenda is.
Performance Agreements
Posted by: | CommentsWelcome to 2010. This is the first work week of the new decade. Many of us are celebrating this new year as a very new beginning. Like you, I am looking ahead to a great year and am thrilled to put 2009 in the rear view mirror.
Shortly many managers will be sitting with their team and going through another annual ritual known as the performance appraisal. The performance appraisal is one of those activities where we look back on the previous year’s activities and assess how we did, what we did well, what we could do better and our plans for improvements and results for the upcoming year.
I am not a fan of these annual critiques. First, it is a forced conversation that involves a very subjective evaluation. Second, it seemed to be the only time that my manager ever really discussed performance and objectives. Third, the goals and expectations of me were not my goals, they were company goals. Finally, I was the only one being evaluated.
This year try a new approach- performance agreements. Sit down with your individual team members and talk about this year. Instead of focusing on your assessment of them, focus on how the two of you can collaborate to accomplish great things going forward. Here is the process for an effective performance agreement that focuses on what your individual team members are looking to accomplish and how you, as their manager, can help them accomplish it:
- What are your goals and aspirations for this year? Whenever possible, these need to be measurable and tangible goals.
- Why are these goals important to you? This helps you better understand what motivates and drives them.
- How are you going to accomplish this? This helps you create a road map with them.
- What do you expect and require of me and the company? We all have expectations. You need to be held accountable, too.
- Create a business plan. Develop a plan that the two of you agree on. Include the expectations that you have of each other. Include in this plan and process for regularly meeting and evaluating how things are going. This is how you empower and engage your team members to accomplish great things. And it helps you focus your efforts, as their manager, on the activities that are critical to both of you.
Do yourself and your team a big favor: skip the silly process of performance evaluations. Focus on the real important issues like looking ahead and accomplishing great things. This is going to be a great year. The sooner you engage in motivating, supporting, and guiding your team on the mission,vision, values, and goals that you both agree on, the sooner your business results will improve.
