We are in the midst of great debates and profound changes to the very fabric of our nation. While I rarely write regarding political issues, this one seems to strike at the very heart of who we are as a nation so I thought I’d share my suggestion for stabilizing the Social Security system, stimulating the economy, and reducing the general angst that exits.
It’s a four-part program with the following attributes:
• Immediately enroll all workers in the system that means everybody including Congress and anybody else who is exempted today!
• Immediately raise the age needed to begin benefits to 67 for everyone under the age of 50. Then begin to add one month every three months until we reach 70.
• Change the system of payroll deductions immediately. Rather then contributing until one reaches a predetermined level, today I believe around $106,000 in wages, take the contribution level today and consider it the base line. Then everyone earning less than $25,000 is exempted, they are fully part of the system, but not required to contribute. They need every dime just to live and every dime goes immediately back into the economy! From $25,000 to $75,000 they pay ½ of today’s base line; from $75,000 to $200,000 they pay today’s base line, and from $200,000 and over they pay 2X today’s base rate, and there is no upper limit any more. This is a “fair share” approach and it’ll work!
• Finally, immediately begin means testing. It is ridiculous to pay someone with millions of retirement $2000 a month in Social Security —they don’t even know what to do with the money. Believe me, I know some of them! And they won’t revolt if they lose their $2000 a month, they’ll applaud our rational thinking!
Wednesday, September 28, 2011
Monday, August 22, 2011
5 Common Barriers Inhibiting Revenue Performance
I was playing golf recently at Bandon Dunes with the CEO of a major Chicago based firm. During our match, he asked me if I could name a few of the common issues I see in my engagements. Maybe he was just trying to distract me, it was match play after all, but I thought he was truly interested, so I told him I had seen barriers that seemed to be present frequently, usually fixable but all causing many issues for many firms, Among them were:
1. The Alignment Problem:
The alignment between the goals/expectations and compensation plans. Often CEO’s tell me their sales force just isn’t firing on all eight cylinders, and could I help them by replacing them with better, more capable people, or maybe get them on track with more focused training or perhaps more discipline. When I get engaged I see a significant misalignment between what the sales force is being asked to do and how they are being paid. Compensation plan design is not often a core competency for senior management for a number of reasons, but infrequently do those without the experience and ability to design a good plan call on those who have the skill for guidance. It’s not an especially difficult issue to solve, but far more often than not it needs solving!
2. The Collaborative Model:
The failure of management to lead, thinking they need to manage and often confusing the two. Far too many salespeople feel like they’re in the vast blue ocean of competition all by themselves and have nobody to turn to for collaboration. Sales meetings are “account reviews” with a senior manager whose perceived goal is to ask all the tough questions and uncover their failures and shortcomings. It’s rarely a pretty sight nor is it an especially productive session. Management needs to contribute their skills, experience and position, forming a team with the sales staff, who have an obligation to keep the rest of the organization informed and involved. This collaborative model has a much better chance of success then the hierarchical model so many of us grew up under. Management needs to accept the responsibility of helping move the account forward to a close, rather than just passing judgment on performance.
3. The “Like” Factor:
People have for too long espoused the theory that people buy from those they “like” -- little could be further from the truth. People buy from people they have confidence in and in whose judgment they trust and in whom
they believe can add value to their requirements, offering them a solution that is better than they originally expected. It’s the real role of an expert salesperson -- to deliver a solution that exceeds the customers’ expectations and provides them with a solution better then they knew existed. It really doesn’t matter if it’s a retail environment or a sophisticated commercial transaction, the goal of sales should be the same, to provide a solution that exceeds the customers’ expectations/requirements .The “like” thing may very well happen, but a professional is what the customer wants, not a friend! Salespeople get the “like” message that their organization is delivering and begins focusing on getting the customer to like them, and then the lunches and golfing and all those activities that have little to do with closing the deal start.
The corollary is true as well, the customer finally comes to believe he has a special “friendship” with the salesperson, and when the rules change for whatever reason, he feels he’s been abandoned or worse, and that creates even more issues. I see this frequently in the banking world, as an example, and when the terms of the loan are changed, or new covenants are imposed, the customer can’t figure out why his “good friends” bank did that to him.
4. Much Too Focused On Features & Benefits:
Another common problem is organizations that focus nearly entirely on training on the features and benefits of their products, with a smattering of competitive reviews. The result is salespeople who are automatons when it comes to reciting the attributes of their products, what they haven’t done is learn how to listen, develop and solution that surpasses the customers’ expectations, build a plan that serves the customer and wins the deal. It’s really rarely about features, they are important, to be sure, but important only as one component in meeting the customers’ needs.
5. The Failure of Technology:
And finally, I mention the failure of technology. People who have experience, and with it a bit of age, seem to rely on their “tried and true” methods, not realizing the world has largely passed them by and they can no longer win business on the sheer force of their personality. They seem to take a perverse pleasure in rejecting the advantage technology brings them. They are staring at their own obsolesce and don’t even know it. Just is bad is the younger salespeople who rely too heavily on technology, thinking an email is all that is necessary. Largely, it seems, using available technology to “put the ball in somebody else’s court” as they say. Apparently thinking that once they’ve launched an email, their task is essentially done. Both are failing because of their perception of the value of technology. One undervalues it; one places too much value on it.
So, there you have it, the five most common hurdles I see that act as barriers to achieving great performance. All can be fixed, but they must first be recognized, and then dealt with.
I was playing golf recently at Bandon Dunes with the CEO of a major Chicago based firm. During our match, he asked me if I could name a few of the common issues I see in my engagements. Maybe he was just trying to distract me, it was match play after all, but I thought he was truly interested, so I told him I had seen barriers that seemed to be present frequently, usually fixable but all causing many issues for many firms, Among them were:
1. The Alignment Problem:
The alignment between the goals/expectations and compensation plans. Often CEO’s tell me their sales force just isn’t firing on all eight cylinders, and could I help them by replacing them with better, more capable people, or maybe get them on track with more focused training or perhaps more discipline. When I get engaged I see a significant misalignment between what the sales force is being asked to do and how they are being paid. Compensation plan design is not often a core competency for senior management for a number of reasons, but infrequently do those without the experience and ability to design a good plan call on those who have the skill for guidance. It’s not an especially difficult issue to solve, but far more often than not it needs solving!
2. The Collaborative Model:
The failure of management to lead, thinking they need to manage and often confusing the two. Far too many salespeople feel like they’re in the vast blue ocean of competition all by themselves and have nobody to turn to for collaboration. Sales meetings are “account reviews” with a senior manager whose perceived goal is to ask all the tough questions and uncover their failures and shortcomings. It’s rarely a pretty sight nor is it an especially productive session. Management needs to contribute their skills, experience and position, forming a team with the sales staff, who have an obligation to keep the rest of the organization informed and involved. This collaborative model has a much better chance of success then the hierarchical model so many of us grew up under. Management needs to accept the responsibility of helping move the account forward to a close, rather than just passing judgment on performance.
3. The “Like” Factor:
People have for too long espoused the theory that people buy from those they “like” -- little could be further from the truth. People buy from people they have confidence in and in whose judgment they trust and in whom
they believe can add value to their requirements, offering them a solution that is better than they originally expected. It’s the real role of an expert salesperson -- to deliver a solution that exceeds the customers’ expectations and provides them with a solution better then they knew existed. It really doesn’t matter if it’s a retail environment or a sophisticated commercial transaction, the goal of sales should be the same, to provide a solution that exceeds the customers’ expectations/requirements .The “like” thing may very well happen, but a professional is what the customer wants, not a friend! Salespeople get the “like” message that their organization is delivering and begins focusing on getting the customer to like them, and then the lunches and golfing and all those activities that have little to do with closing the deal start.
The corollary is true as well, the customer finally comes to believe he has a special “friendship” with the salesperson, and when the rules change for whatever reason, he feels he’s been abandoned or worse, and that creates even more issues. I see this frequently in the banking world, as an example, and when the terms of the loan are changed, or new covenants are imposed, the customer can’t figure out why his “good friends” bank did that to him.
4. Much Too Focused On Features & Benefits:
Another common problem is organizations that focus nearly entirely on training on the features and benefits of their products, with a smattering of competitive reviews. The result is salespeople who are automatons when it comes to reciting the attributes of their products, what they haven’t done is learn how to listen, develop and solution that surpasses the customers’ expectations, build a plan that serves the customer and wins the deal. It’s really rarely about features, they are important, to be sure, but important only as one component in meeting the customers’ needs.
5. The Failure of Technology:
And finally, I mention the failure of technology. People who have experience, and with it a bit of age, seem to rely on their “tried and true” methods, not realizing the world has largely passed them by and they can no longer win business on the sheer force of their personality. They seem to take a perverse pleasure in rejecting the advantage technology brings them. They are staring at their own obsolesce and don’t even know it. Just is bad is the younger salespeople who rely too heavily on technology, thinking an email is all that is necessary. Largely, it seems, using available technology to “put the ball in somebody else’s court” as they say. Apparently thinking that once they’ve launched an email, their task is essentially done. Both are failing because of their perception of the value of technology. One undervalues it; one places too much value on it.
So, there you have it, the five most common hurdles I see that act as barriers to achieving great performance. All can be fixed, but they must first be recognized, and then dealt with.
Wednesday, July 20, 2011
Approaching SELLING like we do a VACATION!
We recently took our grown children and their families on a vacation to the Turks & Caicos Islands. It occurred to me as we had the time of our lives with them, that a vacation is a great model for effective selling!!
Here’s the 12-step analogy I realized:
1. Vacation: Our first step was to determine a place all three generations would enjoy
Selling:Much like thinking thru the profile of a good prospect
2. Vacation: Then we asked everybody what they’d most like to do
Selling: Along the lines of determining the customer’s needs
3. Vacation: We used the internet to research all the places that seemed to fit
Selling: Matching the prospects requirements/needs with our ability to deliver
4. Vacation: We determined our budget
Selling: Deciding how much were willing to invest in the deal
5. Vacation: As we approached the departure day we carefully planned what to pack
Selling: Reminding me of the importance of being sure the presentation was ready and customized for the prospect
6. Vacation: We arrived at the airport in plenty of time to make our flights
Selling: Just as we should arrive a few minutes early on any sales call
7. Vacation: We took small “emergency” bags on board in case our luggage didn’t arrive with us
Selling: As we should be sure the technology, handouts etc. are ready with backups available
8. Vacation: When we arrived we immediately walked around the lovely resort to get a sense of how it all worked
Selling: Reminding me of the importance visiting with the reception people and any others to get a sense of the culture and how we might modify our presentation style to fit with their business culture
9. Vacation: While we were there we immersed ourselves in all there was to do; diving often, swimming, hiking, learning about a new and different culture
Selling: Just like we need to show a real and sincere interest in learning all we can about our prospect and how they operate, make decisions
and buy
10. Vacation: We took photos and kept diaries of our events so we wouldn’t forget them
Selling: Just as we should all take careful notes to remind us of the details and nuances of the potential sale
11. Vacation: When we got home we made photo albums for each to have as a memory of the trip
Selling: As we should commemorate and share with our team the results of significant meetings and communications
12. Vacation: We took a family poll to see what we liked best and what we’ll do differently on our next one
Selling: Just as we should seek feedback and adjust accordingly
“If we could just inspire our salespeople to plan their day like they plan their vacation— performance would increase dramatically!”
Tuesday, April 19, 2011
Herding Sheep
I often hear clients refer to “herding cats” meaning it’s nearly impossible to get everyone on the same page, which for anyone having a cat, is just too obvious. Or “herding sheep” as a reflection of how hard it is to get everyone moving at roughly the same pace. It occurs to me that many may not really understand the comment at the level needed to successfully address the issue.
I was raised on a ranch in Wyoming (I still own our brand, the /\7, the “open a seven”) and we had both sheep and cattle. Cattle were very independent and tended to roam at will, knowing where the food and the shelter was to be found, a t least right up to winter when we needed to bring them in to a central headquarters location where we could care for them during the worst weather when little or no food and surely no salt was available on the range.
Sheep were another issue. First there were three levels of “leadership” needed. The sheep dogs, indispensible, served to nip at their heels to get their attention and keep them moving together as a group, rather like many sales managers; then we has a lead goat, its job was to lead the flock to the next green pasture where feeding was plentiful; rather like the marketing manager who needs to discover and present new and innovative ways to help the salespeople thrive; and finally we had a sheepherder, who’s primary, really only job, was to protect the herd from predators. I’ve seen sheepherders walking for miles over difficult terrain carrying a new lamb on their shoulders, bringing it back to a willing nursing mother. I see this role rather like senior management, who can protect the sales people from those that would detract from their focus, causing them to become wayward and lost, well, less productive then they could and should be for sure.
It’s interesting to me how often life is imitated in different ways and different places. Perhaps we should re-think our sales management roles using the “herding sheep” example.
Hope you enjoyed another of my analogies!
I was raised on a ranch in Wyoming (I still own our brand, the /\7, the “open a seven”) and we had both sheep and cattle. Cattle were very independent and tended to roam at will, knowing where the food and the shelter was to be found, a t least right up to winter when we needed to bring them in to a central headquarters location where we could care for them during the worst weather when little or no food and surely no salt was available on the range.
Sheep were another issue. First there were three levels of “leadership” needed. The sheep dogs, indispensible, served to nip at their heels to get their attention and keep them moving together as a group, rather like many sales managers; then we has a lead goat, its job was to lead the flock to the next green pasture where feeding was plentiful; rather like the marketing manager who needs to discover and present new and innovative ways to help the salespeople thrive; and finally we had a sheepherder, who’s primary, really only job, was to protect the herd from predators. I’ve seen sheepherders walking for miles over difficult terrain carrying a new lamb on their shoulders, bringing it back to a willing nursing mother. I see this role rather like senior management, who can protect the sales people from those that would detract from their focus, causing them to become wayward and lost, well, less productive then they could and should be for sure.
It’s interesting to me how often life is imitated in different ways and different places. Perhaps we should re-think our sales management roles using the “herding sheep” example.
Hope you enjoyed another of my analogies!
Sunday, April 10, 2011
the 6th Law of Sales
• Don’t misinterpret “the customer is always right.” The customer is right about his desires, perhaps even his requirements. But all too often they really don’t know what they don’t know. They have come to you to add value to their purchase decision. An example is a woman at a cosmetics counter - they’ve been applying their cosmetics for years, they know exactly how they want to look, yet they ask question after question at the counter. Why? Because they know the person they are talking to is experienced and trained with all products including the latest and may have ideas and knowledge they don‘t. Customers want to be educated, to be shown a better way, to have their needs/requirements refined to take advantage of current products/services and methodologies. They don’t want to make a mistake and be “sold” what they asked for, when they could’ve done better with some expert input and guidance. Listen, interpret their comments, and then offer a solution that adds value to the transaction.
Sunday, March 13, 2011
5th Law of Sales:•The sale is “closed” when it’s referencable. The truly great know that receiving a purchase order isn’t the end of the sale, it’s merely the beginning. But too many believe the sale is official when the service/product has been delivered. That is still a bit pre-mature to celebrate. The sale that matters most is the sale that meets the customer’s requirements in a way that results in a referencable customer. It is said that 80% of all sales occur after the 5th contact. A meaningful reference can reduce that number by a many as two, cutting the time and sale expense by nearly 40%! And 76% of all people who get a good personal reference, buy.
Subscribe to:
Posts (Atom)
