Old globalization was marked by the quest of colonial powers such as France and the Netherlands for more raw materials, cheap labor and new markets, conditions that translate into an ultimate objective for more profits. Countries such as Malaya and Vietnam were transformed into markets and suppliers of people and products via combinations of military conquest and cultural subjugation. The old globalization was carried out through direct colonial rule or a government composed of compliant local elite ultimately responsible and accountable to the colonial power. After World War II a concerted effort was made to revive international trade and investment.
Liberalization of international trade and liberalization of international investment are the objectives of globalization advocates. Liberalization is considered as the answer to the marked decrease in the rate of corporate profits particularly in the US in the past two decades.
Neo-liberals have praised free trade as the way to promote the interest of small agricultural and industrial producers. Through free trade, the logic goes, these people will be able to offer their products to a wider market, increase their sales and therefore their income, and help wipe out global poverty.
Unfortunately, in real life, liberalization seems to work more for multinational corporations than small agricultural producers and workers. The problem is today’s free trade is really not free trade. There is no level playing field when their governments give subsidies to multinational corporations, enabling the latter to sell their products below cost of production in the international market, a practice aptly called dumping. It is understandable, in this context, why globalization and liberalization have become increasingly unpopular concepts and programs among the global poor.
Friday, August 10, 2007
Hiring and Training of New Sales Staff
How do you train your sales personnel? Perhaps a better question would be…Do you train your sales personnel? As silly as this may sound a lot of organizations hire a salesperson and tell them to go get it. I have personally dealt with such an organization and this was considered the norm. Why? Because they have always done it this way! I suspect a lot of individuals have heard this comment from other organizations.
Past experience has shown me that the normal way a lot of small companies hire salespeople is by word of mouth or recommendation from a friend or customer. More times than not this method is flawed from the beginning. Depending upon your industry or product offering you may have experienced something like the following dialogue.
Question: “Do you know anyone you would recommend for a job”?
Answer: “Yeah, Joe has been with me forever and he needs to make more money and I cannot afford to pay him. He would be great for your job. OR
Question: I need to hire a new salesperson to call on your account and several others in this area. Do you know anyone who would be a good fit?
Answer: Why yes, my son (Daughter) is looking for a job and they know this business well. They will make a great salesperson.(Watch out for this landmine)
There are many more examples but hopefully, you get the picture. Why do we as business owners or managers spend so little time hiring the individuals who will represent us in the marketplace? Keep in mind I am not speaking of Fortune 500 organizations because companies in this arena spend a lot of money and hours interviewing and investigating. Small or medium sized businesses sometimes do not believe they have the time or money to recruit and hire properly. This is a tragic mistake.
The mistake is compounded when after hiring a warm body for the position the owner, sales manager or whoever is available may train the new employee for at least 2 days. Sometimes this training takes place in a distribution center where the new employee may be subjected to negative comments from various individuals. Perhaps if the new employee is lucky he will be placed with a marginal salesperson and told to ride around with him or her for a few days. The marginal salesperson is chosen because the top performers do not want to be bothered nor do they want to give away any “secrets.” The marginal salesperson knows all of the right language to use on a sales call and he will be everyone’s best friend. A lot of coffee may be consumed and a lot of the world’s problems may be solved but your products will not be sold and the new employee will learn quickly how to perform bad habits.
Should the new employee be astute enough to ask he or she may inquire as to sales manuals, product sheets, account information sheets etc. A typical organization will have some of these items but not all. New employees may receive all manner of explanations as to why the territory has not much available information. The employee may even be told that the lack of information and performance is the reason he was hired. He has to turn this train wreck around. Not wanting to appear timid the new salesperson will gather up as much bravado as possible and shout to the rooftops how he will be the savior for whom the company has been looking. All the while he may be thinking, what kind of mess have I gotten myself into?
The owner or sales manager most likely will sit back and wait for the rain to fall from the sky because this new salesperson told everyone he is the best thing since sliced bread and he will show the existing sales force how to make hay when the sun shines. ( Pardon the use of metaphors.) Reality will set in around the 60th day of employment when the new salesperson has done very little to earn his keep (with good reason) and the owner or manager will begin to get a little nervous. At this point the owner of my old company used to tell me to “put them on the get well program.” Translated this meant to reduce their draw from a living wage to starvation wages. This move usually achieved the desired result. The new salesperson quit and the process began anew. By the way, at this juncture the adage defining madness as doing the same thing over and over and expecting different results, needs to be stamped on a decision maker’s forehead.
During the recruitment and hiring phase I strongly recommend the owner and sales manager be left out of the initial interviews. This is important because the easiest person to sell is another salesperson and in the case of a lot of small companies, the owner and sales manager have usually carried most of the water with which to prime the pump of prosperity. Con artists and hucksters know exactly what buttons to push when dealing with this type of personality. More on recruiting and interviewing in the next installment.
Past experience has shown me that the normal way a lot of small companies hire salespeople is by word of mouth or recommendation from a friend or customer. More times than not this method is flawed from the beginning. Depending upon your industry or product offering you may have experienced something like the following dialogue.
Question: “Do you know anyone you would recommend for a job”?
Answer: “Yeah, Joe has been with me forever and he needs to make more money and I cannot afford to pay him. He would be great for your job. OR
Question: I need to hire a new salesperson to call on your account and several others in this area. Do you know anyone who would be a good fit?
Answer: Why yes, my son (Daughter) is looking for a job and they know this business well. They will make a great salesperson.(Watch out for this landmine)
There are many more examples but hopefully, you get the picture. Why do we as business owners or managers spend so little time hiring the individuals who will represent us in the marketplace? Keep in mind I am not speaking of Fortune 500 organizations because companies in this arena spend a lot of money and hours interviewing and investigating. Small or medium sized businesses sometimes do not believe they have the time or money to recruit and hire properly. This is a tragic mistake.
The mistake is compounded when after hiring a warm body for the position the owner, sales manager or whoever is available may train the new employee for at least 2 days. Sometimes this training takes place in a distribution center where the new employee may be subjected to negative comments from various individuals. Perhaps if the new employee is lucky he will be placed with a marginal salesperson and told to ride around with him or her for a few days. The marginal salesperson is chosen because the top performers do not want to be bothered nor do they want to give away any “secrets.” The marginal salesperson knows all of the right language to use on a sales call and he will be everyone’s best friend. A lot of coffee may be consumed and a lot of the world’s problems may be solved but your products will not be sold and the new employee will learn quickly how to perform bad habits.
Should the new employee be astute enough to ask he or she may inquire as to sales manuals, product sheets, account information sheets etc. A typical organization will have some of these items but not all. New employees may receive all manner of explanations as to why the territory has not much available information. The employee may even be told that the lack of information and performance is the reason he was hired. He has to turn this train wreck around. Not wanting to appear timid the new salesperson will gather up as much bravado as possible and shout to the rooftops how he will be the savior for whom the company has been looking. All the while he may be thinking, what kind of mess have I gotten myself into?
The owner or sales manager most likely will sit back and wait for the rain to fall from the sky because this new salesperson told everyone he is the best thing since sliced bread and he will show the existing sales force how to make hay when the sun shines. ( Pardon the use of metaphors.) Reality will set in around the 60th day of employment when the new salesperson has done very little to earn his keep (with good reason) and the owner or manager will begin to get a little nervous. At this point the owner of my old company used to tell me to “put them on the get well program.” Translated this meant to reduce their draw from a living wage to starvation wages. This move usually achieved the desired result. The new salesperson quit and the process began anew. By the way, at this juncture the adage defining madness as doing the same thing over and over and expecting different results, needs to be stamped on a decision maker’s forehead.
During the recruitment and hiring phase I strongly recommend the owner and sales manager be left out of the initial interviews. This is important because the easiest person to sell is another salesperson and in the case of a lot of small companies, the owner and sales manager have usually carried most of the water with which to prime the pump of prosperity. Con artists and hucksters know exactly what buttons to push when dealing with this type of personality. More on recruiting and interviewing in the next installment.
Xerox Business Systems
Xerox is known all over the world as being the # 1 photocopier manufacturer. The Xerox Corporation is a company that has definitely proved thought its practice that the “right management” and the ability to be flexible can lead to a great success no matter how stiff the competition is. The history of its outstanding management starts in the 1980’s, when the company changed its market strategy and introduced a new kind of management that lately transformed into their fantastic quality management practice.
Their program “Leadership through quality” against the Japanese competitors set new quality standards for the market and opened their way to success. The program established the manage-for-results as the primary goal for all of the operations within the company. The expected results were improved productivity and increased revenue growth achieved through the quality-oriented strategy. After experiencing difficulties on market before the company opened a new era in management and created a model that will lately be followed by almost every single one company.
The quality philosophy of the company- the customer-demands orientation- is one of the most remarkable traits that makes Xerox an upstart company. The customer-based orientation was the first one at that time, due to the major orientation of the companies on the quantity, not quality of manufacturing. This philosophy is completely based on the quality of every aspect of the company’s activity, including the final product. It starts with the employee’s management and ends up in the final result of their work – Xerox products. This final result started being evaluated from the objective point of view of a customer. The three factors that are taken into account the most are: the customer, the process and the people. The goal of the company was, is and will be “Total customer satisfaction”.
Basically saying the customer was to become the “quality controlling team” of the company. This philosophy is reflected in their introduction of Total Quality Management (TQM). The main change that this management philosophy brought to the Xerox Corporation was moving from a production-based over to a customer-based company. The Total Quality Management of the Xerox Corporation includes principles that are used by the company’s employees and directors: strong customer focus, entrepreneurial spirit of the employees, integrations through market focus and quality control. Nowadays, owing to this philosophy the company is eager and able to meet all the requirements that the customer has. The satisfaction of the customers became the criterion of evaluation of the company’s work.
Their program “Leadership through quality” against the Japanese competitors set new quality standards for the market and opened their way to success. The program established the manage-for-results as the primary goal for all of the operations within the company. The expected results were improved productivity and increased revenue growth achieved through the quality-oriented strategy. After experiencing difficulties on market before the company opened a new era in management and created a model that will lately be followed by almost every single one company.
The quality philosophy of the company- the customer-demands orientation- is one of the most remarkable traits that makes Xerox an upstart company. The customer-based orientation was the first one at that time, due to the major orientation of the companies on the quantity, not quality of manufacturing. This philosophy is completely based on the quality of every aspect of the company’s activity, including the final product. It starts with the employee’s management and ends up in the final result of their work – Xerox products. This final result started being evaluated from the objective point of view of a customer. The three factors that are taken into account the most are: the customer, the process and the people. The goal of the company was, is and will be “Total customer satisfaction”.
Basically saying the customer was to become the “quality controlling team” of the company. This philosophy is reflected in their introduction of Total Quality Management (TQM). The main change that this management philosophy brought to the Xerox Corporation was moving from a production-based over to a customer-based company. The Total Quality Management of the Xerox Corporation includes principles that are used by the company’s employees and directors: strong customer focus, entrepreneurial spirit of the employees, integrations through market focus and quality control. Nowadays, owing to this philosophy the company is eager and able to meet all the requirements that the customer has. The satisfaction of the customers became the criterion of evaluation of the company’s work.
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