Jim’s dad died when he was just 15, and he had a stay-at-home mom who didn’t have marketable skills.
So he dropped out of high school to work, choosing encyclopedia sales as his ticket to an income sufficient to support himself and his mom.
There was only one small, technical difficulty.
Jim had a terrible speech impediment, a stutter, so how could he make it through presentations?
He asked for a glass of water before he started his pitches, and when he began to stutter, he took a sip.
He was always well hydrated.
But he was also well compensated, because he simply had to succeed. There was no other option.
As his success grew, his stuttering improved until it became barely discernable.
Jim went on to publish his own encyclopedias and he started a finance company to make them affordable. Now, he and his family live in one of the most beautiful and famous golf communities in America.
This goes to show the curative power of selling.
One of my consulting clients told me, “I’ve never met a problem in business that a few more sales couldn’t cure!”
Let me add to his thought.
I’ve never met a problem in my personal life that a few more sales couldn’t cure, either!
One of them is SHYNESS.
When I started to sell I was a shy, 19 year-old teenager, but pleasantly, people took me seriously because I initiated my career by working on the phone. I can’t tell you how broadening and confidence-building it was to successfully persuade mature businesspeople, many decades my senior, to buy what I was offering.
Every “yes” I got chipped away at my shyness and insecurity, and this benefit carried over into interpersonal relationships, face-to-face selling and to public speaking.
So, the next time someone thinks he needs one of those pills that you hear touted on TV for “social anxiety” or some other disorder that involves a lack of self-confidence, do him a favor.
Friday, August 31, 2007
Sales Team Psychology
Goal setting is powerful way of keeping sales psychology on the up-and-up. We all know that goals dictate future performance by giving team members a sense of purpose and direction. I can think of nothing less motivating than not knowing why I’ve been asked to do something. Instill in your team members what the end objective is and explain to them the necessary steps to get there. It is much easier to put forth the effort when we can answer who, what, where, when, why and how. Make sure your goals are realistic and attainable, but lofty enough that they are inspiring.
It is a general rule of thumb that greater or more difficult goals actually increase performance. The reason for this tendency is that loftier goals or objectives set higher expectations, and expectations in turn strongly influence behavior. The power of effective goal setting or setting a target can be seen in the following example: In a particular production plant, workers with little experience were divided into two groups. One group was told to simply observe the experienced workers and try to be able to perform at a skilled level themselves within twelve weeks.
The second group received specific weekly goals that were progressively more and more demanding. Needless to say, the second group fared much better. Similarly, Yale University once conducted a striking twenty-year study that found that the 3 percent of students who put their goals in writing had significantly higher incomes than those who did not—in fact, higher incomes than the other 97 percent of students combined. From these examples, it is obvious that proper goal setting goes a long way toward promoting sound sales psychology amongst your team members.
Years of observation and study have produced personality profiles of what are considered to be outstanding salespeople. Perhaps the most recognized of these profiles is the model that was developed by Gallup Management Consulting Group. Gallup has spent more than two decades interviewing hundreds of thousands of top salespeople to help corporate clients form and develop their own sales teams. Its findings suggest that the top four qualities of top-tier producers are: 1) solid persuasion and closing skills; 2) self-motivation; 3) strong work ethic and 4) excellent people and relationship skills.
Why do I highlight these findings? It is likely that as a sales manager, you already look for these skills when you hire someone anyway. But how do you enhance these essential sales characteristics after your recruits are on board so that your team can become even better? My hope is that by giving you four key concentration areas, you can streamline your efforts into getting the greatest results with the most focused effort. When you are trying to draw out any one of these characteristics, or any characteristic for that matter, it is helpful to assess the kind of personalities you’re dealing with. For some, a strong drive to close a sale exists just because they possess a need to “win.” Whether that “win” translates into financial rewards, recognition, the glory of being at the top or whatever, some individuals just have an almost instinctive need to win. This need is compelling enough that they are not deterred by long hours, rejection or time away from their family.
For others, it is not just about winning in and of itself. Beyond that, some individuals have a competitive edge that relishes the defeat of others—even their own colleagues. Half of the victory for these types of people is seeing others left in the dust. I believe that some competition can be a good thing, but you’ve got to be on your toes to buffer this type of personality. If you think pitting your team members against each other might actually create unhealthy rivalries and negative feelings, then you’ve got to have a way to counteract those negative effects.
Next, there are those personalities who are very ego-driven. They aren’t motivated by a need to conquer others. Rather, they want success solely for their own personal satisfaction. This is the type of person who is constantly out to beat her/his own previous records. In other words, these types of individuals compete with themselves. Moreover, they are very focused on being experts. While this competitive orientation has significant strong points, its main downside is that it is too self-focused—even in a well-intended way—and not conscious enough of the team element. The self-motivated person is the one you want to be sure you can draw into the team so you have the best that both approaches have to offer.
Then you have those individuals who seem to get the most satisfaction out of seeing their customers happy. They don’t really have the burning desire to win or compete, but they are very much into relationship building. These people are naturally gifted at being empathetic, caring and good listeners. They are the ones who are much more inclined to stay in touch with clients after the sale has come and gone.
As you step back and evaluate what kind of team member mix you have, realize that no one is purely one temperament or another. We tend to be a combination of at least two of these different types of producers. However, we are usually dominated much more by one area than the others. Your job is to get a grip on what you have to work with and figure out how to make all the pieces of the puzzle fit together so your team solidly represents all of the best qualities of top sales producers.
In closing this section, I wanted to touch on the topic of working with a rep who has hit a plateau. Why? Because it’s a very real obstacle that sometimes happens even to the very best. The most typical cause for a plateau is simply feeling burned out. In this case, a very obvious solution would be to lighten the stalled rep’s responsibilities or even give her/him some time off. On the other hand, it may be that the rep is burned out with doing the “same old thing.” If that’s the case, simply changing her/his responsibilities would provide the necessary stimulation to get her/him moving again. New responsibilities could be things like training, forecasting or recruiting. Even performing the same tasks with new prospects or in a different community may alleviate boredom and present exciting, new challenges.
Sometimes it works to have reps come up with their own solutions. They may be more apt to pursue something they feel they’ve come up with on their own than something that is imposed. Furthermore, this way they really know what’s at the heart of the issue and would, therefore, likely know the best remedy better than anyone else. Lastly, review the possibility of how bonuses and other forms of recognition might spur renewed motivation. This approach is especially effective when your team members’ financial needs are already being met and they’re looking for reward and acknowledgment in other forms. In the next section, we’ll discuss what kinds of rewards and incentives work the best.
Kurt Mortensen’s trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.
It is a general rule of thumb that greater or more difficult goals actually increase performance. The reason for this tendency is that loftier goals or objectives set higher expectations, and expectations in turn strongly influence behavior. The power of effective goal setting or setting a target can be seen in the following example: In a particular production plant, workers with little experience were divided into two groups. One group was told to simply observe the experienced workers and try to be able to perform at a skilled level themselves within twelve weeks.
The second group received specific weekly goals that were progressively more and more demanding. Needless to say, the second group fared much better. Similarly, Yale University once conducted a striking twenty-year study that found that the 3 percent of students who put their goals in writing had significantly higher incomes than those who did not—in fact, higher incomes than the other 97 percent of students combined. From these examples, it is obvious that proper goal setting goes a long way toward promoting sound sales psychology amongst your team members.
Years of observation and study have produced personality profiles of what are considered to be outstanding salespeople. Perhaps the most recognized of these profiles is the model that was developed by Gallup Management Consulting Group. Gallup has spent more than two decades interviewing hundreds of thousands of top salespeople to help corporate clients form and develop their own sales teams. Its findings suggest that the top four qualities of top-tier producers are: 1) solid persuasion and closing skills; 2) self-motivation; 3) strong work ethic and 4) excellent people and relationship skills.
Why do I highlight these findings? It is likely that as a sales manager, you already look for these skills when you hire someone anyway. But how do you enhance these essential sales characteristics after your recruits are on board so that your team can become even better? My hope is that by giving you four key concentration areas, you can streamline your efforts into getting the greatest results with the most focused effort. When you are trying to draw out any one of these characteristics, or any characteristic for that matter, it is helpful to assess the kind of personalities you’re dealing with. For some, a strong drive to close a sale exists just because they possess a need to “win.” Whether that “win” translates into financial rewards, recognition, the glory of being at the top or whatever, some individuals just have an almost instinctive need to win. This need is compelling enough that they are not deterred by long hours, rejection or time away from their family.
For others, it is not just about winning in and of itself. Beyond that, some individuals have a competitive edge that relishes the defeat of others—even their own colleagues. Half of the victory for these types of people is seeing others left in the dust. I believe that some competition can be a good thing, but you’ve got to be on your toes to buffer this type of personality. If you think pitting your team members against each other might actually create unhealthy rivalries and negative feelings, then you’ve got to have a way to counteract those negative effects.
Next, there are those personalities who are very ego-driven. They aren’t motivated by a need to conquer others. Rather, they want success solely for their own personal satisfaction. This is the type of person who is constantly out to beat her/his own previous records. In other words, these types of individuals compete with themselves. Moreover, they are very focused on being experts. While this competitive orientation has significant strong points, its main downside is that it is too self-focused—even in a well-intended way—and not conscious enough of the team element. The self-motivated person is the one you want to be sure you can draw into the team so you have the best that both approaches have to offer.
Then you have those individuals who seem to get the most satisfaction out of seeing their customers happy. They don’t really have the burning desire to win or compete, but they are very much into relationship building. These people are naturally gifted at being empathetic, caring and good listeners. They are the ones who are much more inclined to stay in touch with clients after the sale has come and gone.
As you step back and evaluate what kind of team member mix you have, realize that no one is purely one temperament or another. We tend to be a combination of at least two of these different types of producers. However, we are usually dominated much more by one area than the others. Your job is to get a grip on what you have to work with and figure out how to make all the pieces of the puzzle fit together so your team solidly represents all of the best qualities of top sales producers.
In closing this section, I wanted to touch on the topic of working with a rep who has hit a plateau. Why? Because it’s a very real obstacle that sometimes happens even to the very best. The most typical cause for a plateau is simply feeling burned out. In this case, a very obvious solution would be to lighten the stalled rep’s responsibilities or even give her/him some time off. On the other hand, it may be that the rep is burned out with doing the “same old thing.” If that’s the case, simply changing her/his responsibilities would provide the necessary stimulation to get her/him moving again. New responsibilities could be things like training, forecasting or recruiting. Even performing the same tasks with new prospects or in a different community may alleviate boredom and present exciting, new challenges.
Sometimes it works to have reps come up with their own solutions. They may be more apt to pursue something they feel they’ve come up with on their own than something that is imposed. Furthermore, this way they really know what’s at the heart of the issue and would, therefore, likely know the best remedy better than anyone else. Lastly, review the possibility of how bonuses and other forms of recognition might spur renewed motivation. This approach is especially effective when your team members’ financial needs are already being met and they’re looking for reward and acknowledgment in other forms. In the next section, we’ll discuss what kinds of rewards and incentives work the best.
Kurt Mortensen’s trademark is Magnetic Persuasion; rather than convincing others, he teaches that you should attract them, just like a magnet attracts metal filings. He teaches that sales have changed and the consumer has become exponentially more skeptical and cynical within the last five years. Most persuaders are using only 2 or 3 persuasion techniques when there are actually 120 available! His message and program has helped thousands and will help you achieve unprecedented success in both your business and personal life.
Feasts, Failures and Food for Thought
It’s the year end. It’s holiday time. It’s time for banquets and budgets. Along with assorted food items accumulating in the office, most companies are deep into their budgeting process. Those responsible for revenue are getting the emails, calls, and memos saying “more.” Those controlling expenses are getting emails, calls and memos saying “less.”
It is the same stuff different year. Cut the cake and cut the costs. Have some sweets and sweeten the revenue. When all the snacks have disappeared and the office party is only a blur, the revenue goal will have been set and the expense budgets confirmed. The sales manager’s food for thought will be, “What can I do to hit my number this year?” The answer may well be the calculated and consistent avoidance of the top three mistakes sales managers make.
I hasten to add, I have made each of these mistakes myself more than once. I have observed them habitually being made by others. They creep back into the sales manager’s life like dessert into a diet. They are neither new nor surprising. They are simply the most common mistakes made. Because they are so common, the corrections are simple. A disciplined approach to correcting each is a sure ticket to a better revenue feast in the year ahead. Go ahead, help yourself.
1. Mistake: Feeding the weak: --Giving your weakest producers the biggest cut of you management time sandwich. Because your biggest producers are producing, you invest your time in the lowest producers. What would time and support for your best producers do to your overall revenue picture? Often a 10% increase from the biggest producers will be greater than a 20% increase by our weakest producers.
Correction: Feed the Strong first
2. Mistake: Ignoring the food you ordered --Sales people respect what you inspect not what you expect. Have in place and pay attention to a sales activity reporting system. Most companies have one, but do most sales managers check it daily? Asking sales people to report their activity and outcomes is basic to the sales management process. Reading their reports and examining their input daily is a primary management task. The fact is, as managers, we dislike reading the reports just as much as most salespeople dislike creating them. Writing and reading the reports, however, must be a non-negotiable element for everyone, including you.
Correction: Feed on the food you ordered
3. Mistake: Failure to feedback: -- If you ask sales people to do something and they do it, acknowledge it. If you ask them to do something and they don’t acknowledge that too. It goes to the heart of mutual respect and accountability. Reading sales reports is one thing, taking the time to let a sales person know you have done so, is another. A quick and specific note that indicates that you have read the report is not only courteous it is productive. It says you are paying attention, care, and take them seriously. Sales reports and feedback are a critical communications vehicle in the well run sales organization.
Correction: Feedback what you’ve been fed
Three steps to making next year better:
1. Feed the Strong first
2. Feed on the food you ordered
3. Feedback what you’ve been fed.
It is the same stuff different year. Cut the cake and cut the costs. Have some sweets and sweeten the revenue. When all the snacks have disappeared and the office party is only a blur, the revenue goal will have been set and the expense budgets confirmed. The sales manager’s food for thought will be, “What can I do to hit my number this year?” The answer may well be the calculated and consistent avoidance of the top three mistakes sales managers make.
I hasten to add, I have made each of these mistakes myself more than once. I have observed them habitually being made by others. They creep back into the sales manager’s life like dessert into a diet. They are neither new nor surprising. They are simply the most common mistakes made. Because they are so common, the corrections are simple. A disciplined approach to correcting each is a sure ticket to a better revenue feast in the year ahead. Go ahead, help yourself.
1. Mistake: Feeding the weak: --Giving your weakest producers the biggest cut of you management time sandwich. Because your biggest producers are producing, you invest your time in the lowest producers. What would time and support for your best producers do to your overall revenue picture? Often a 10% increase from the biggest producers will be greater than a 20% increase by our weakest producers.
Correction: Feed the Strong first
2. Mistake: Ignoring the food you ordered --Sales people respect what you inspect not what you expect. Have in place and pay attention to a sales activity reporting system. Most companies have one, but do most sales managers check it daily? Asking sales people to report their activity and outcomes is basic to the sales management process. Reading their reports and examining their input daily is a primary management task. The fact is, as managers, we dislike reading the reports just as much as most salespeople dislike creating them. Writing and reading the reports, however, must be a non-negotiable element for everyone, including you.
Correction: Feed on the food you ordered
3. Mistake: Failure to feedback: -- If you ask sales people to do something and they do it, acknowledge it. If you ask them to do something and they don’t acknowledge that too. It goes to the heart of mutual respect and accountability. Reading sales reports is one thing, taking the time to let a sales person know you have done so, is another. A quick and specific note that indicates that you have read the report is not only courteous it is productive. It says you are paying attention, care, and take them seriously. Sales reports and feedback are a critical communications vehicle in the well run sales organization.
Correction: Feedback what you’ve been fed
Three steps to making next year better:
1. Feed the Strong first
2. Feed on the food you ordered
3. Feedback what you’ve been fed.
Wednesday, August 29, 2007
How To Deliver More Next Year With Less!
I want you to deliver more:
- Profit
- Sales
- Productivity
- Customers
- Quality
And, by the way, you’ve got less:
- Money
- Staff
- Time
Sound familiar? Year on year, sales leaders are being asked to achieve improved results with fewer resources or, at least, more from the same. To most Sales Directors, the attainment of a permanent increase in sales revenues must seem like the search for eternal youth; unending and, ultimately, unavailing.
Unfortunately, the task of selling never becomes any easier and as competition continues to intensify, sales people will face issues that can be extremely difficult to deal with e.g. decreased product uniqueness, increased competition within ‘safe’ markets, longer sales cycles and shorter product life spans.
The reality is that whatever got you where you are today will not be sufficient to keep you there. A rapidly changing environment is the regular background against which organisations must develop.
Change is continuous and will become more rapid as we move forward over time. Sales management must be capable of reacting to those changes, be prepared to take advantage of them and yet stay within the overall framework of a formalised strategy.
The role of strategy is fundamental if the people within an organisation are to be enabled to make the level of contribution of which they are capable. Strategy, based on a good grasp of the core competencies of a business, is an essential precursor to achieving optimal shareholder value.
Getting more for less or more from the same level of resources, is my simple definition of efficiency.
Here then are six steps you can take in 2007 that will help you achieve those increased targets:
Step One: Understand your operation
- Do you know your operation well enough to improve it?
Step Two: Set the right objectives
- Do you have the right objectives to steer improvement?
Step Three: Check customer perception
- How can you identify non-value-added (wasteful) activity?
- How can you remove it?
Step Four: Increase capacity
- Are you meeting demand?
- What action(s) can you take?
- How efficient are your resources?
Step Five: Continuously improve
- Do you have a systematic approach to constant improvement?
Step Six: Check customer perception
- How effective have your efforts been?
- How can you tell?
And finally, when you review your performance in 2006, consider benchmarking yourself against the Sales Management Acid Test:
The Acid Test – When thinking about your own sales force,
- Did you understand their motivators – what was driving them?
- Did you always have visibility of their numbers – year to date, forecast vs. required performance?
- Activity levels – did they work hard and smart enough?
- Engagement – did they always meet with the right level in their prospects/accounts?
- Messaging – were they capable of delivering an appropriate message at the right level?
- Qualification – did they only spend time on deals where they could compete and ultimately win?
- Closing – did they construct successful campaigns and close enough business?
- Profit
- Sales
- Productivity
- Customers
- Quality
And, by the way, you’ve got less:
- Money
- Staff
- Time
Sound familiar? Year on year, sales leaders are being asked to achieve improved results with fewer resources or, at least, more from the same. To most Sales Directors, the attainment of a permanent increase in sales revenues must seem like the search for eternal youth; unending and, ultimately, unavailing.
Unfortunately, the task of selling never becomes any easier and as competition continues to intensify, sales people will face issues that can be extremely difficult to deal with e.g. decreased product uniqueness, increased competition within ‘safe’ markets, longer sales cycles and shorter product life spans.
The reality is that whatever got you where you are today will not be sufficient to keep you there. A rapidly changing environment is the regular background against which organisations must develop.
Change is continuous and will become more rapid as we move forward over time. Sales management must be capable of reacting to those changes, be prepared to take advantage of them and yet stay within the overall framework of a formalised strategy.
The role of strategy is fundamental if the people within an organisation are to be enabled to make the level of contribution of which they are capable. Strategy, based on a good grasp of the core competencies of a business, is an essential precursor to achieving optimal shareholder value.
Getting more for less or more from the same level of resources, is my simple definition of efficiency.
Here then are six steps you can take in 2007 that will help you achieve those increased targets:
Step One: Understand your operation
- Do you know your operation well enough to improve it?
Step Two: Set the right objectives
- Do you have the right objectives to steer improvement?
Step Three: Check customer perception
- How can you identify non-value-added (wasteful) activity?
- How can you remove it?
Step Four: Increase capacity
- Are you meeting demand?
- What action(s) can you take?
- How efficient are your resources?
Step Five: Continuously improve
- Do you have a systematic approach to constant improvement?
Step Six: Check customer perception
- How effective have your efforts been?
- How can you tell?
And finally, when you review your performance in 2006, consider benchmarking yourself against the Sales Management Acid Test:
The Acid Test – When thinking about your own sales force,
- Did you understand their motivators – what was driving them?
- Did you always have visibility of their numbers – year to date, forecast vs. required performance?
- Activity levels – did they work hard and smart enough?
- Engagement – did they always meet with the right level in their prospects/accounts?
- Messaging – were they capable of delivering an appropriate message at the right level?
- Qualification – did they only spend time on deals where they could compete and ultimately win?
- Closing – did they construct successful campaigns and close enough business?
Are You Fully Prepared For A Fresh Set Of Challenges? A Sales Management Checklist
Essentially, the task of the Sales Manager is to produce revenue for their company through the operations of the sales staff for whom they are responsible. The size of this revenue, and the profit (however defined) which it should show, are usually predetermined in order to achieve the aims of company policy. The objectives which they set for the various activities which are involved in carrying out this task should therefore be derived from, and be compatible with, company objectives, such as return on capital employed, cash flow, market position, growth.
Since, like other managers, the Sales Manager depends on those who work for them to produce the results by which they are judged, consideration can usefully continue by regularly examining the nature and characteristics of their role.
As we near the end of the year, this is an excellent time to take stock and ask yourself some important questions to ensure that you are totally prepared for the fresh set of challenges that lay ahead next year
* What are the objectives of my department, function and company?
* Am I satisfied that I feel these can be achieved - that I have a plan for this?
* In what ways can my department/company be improved?
* Is the work in my area altering in nature, quantity or quality?
* Can the work be done it a better way?
* Have I the right equipment and facilities?
* Have I the right number of staff?
* Am I happy that all my subordinates are correctly placed and loaded?
* Is my staff doing what I want them to do?
* Do any of my staff need further training? Have I a training plan?
* What are the staffing trends?
* Are my staff happy? Do I spend enough time with them?
* Have I a trained deputy?
* Am I satisfied personally?
* Is my authority defined and adequate?
* Is my relationship with senior management satisfactory?
* Where is my next promotion coming from?
* Am I doing too much routine or administrative/clerical work?
* Have I enough time for thinking?
Summary:
For a group of people to remain “consciously competent” at optimum performance levels, they require frequent injections of stimulation, motivational guidance and prompting otherwise they can easily lapse into” unconsciously competent”, or worse, “unconsciously incompetent”
The primary objective of a professional Sales Manager has to be:
“To achieve consistently superior results, through the performance of every key individual.”
However, you can only achieve that objective if you, yourself, are fully committed and focussed on what will be required.
Since, like other managers, the Sales Manager depends on those who work for them to produce the results by which they are judged, consideration can usefully continue by regularly examining the nature and characteristics of their role.
As we near the end of the year, this is an excellent time to take stock and ask yourself some important questions to ensure that you are totally prepared for the fresh set of challenges that lay ahead next year
* What are the objectives of my department, function and company?
* Am I satisfied that I feel these can be achieved - that I have a plan for this?
* In what ways can my department/company be improved?
* Is the work in my area altering in nature, quantity or quality?
* Can the work be done it a better way?
* Have I the right equipment and facilities?
* Have I the right number of staff?
* Am I happy that all my subordinates are correctly placed and loaded?
* Is my staff doing what I want them to do?
* Do any of my staff need further training? Have I a training plan?
* What are the staffing trends?
* Are my staff happy? Do I spend enough time with them?
* Have I a trained deputy?
* Am I satisfied personally?
* Is my authority defined and adequate?
* Is my relationship with senior management satisfactory?
* Where is my next promotion coming from?
* Am I doing too much routine or administrative/clerical work?
* Have I enough time for thinking?
Summary:
For a group of people to remain “consciously competent” at optimum performance levels, they require frequent injections of stimulation, motivational guidance and prompting otherwise they can easily lapse into” unconsciously competent”, or worse, “unconsciously incompetent”
The primary objective of a professional Sales Manager has to be:
“To achieve consistently superior results, through the performance of every key individual.”
However, you can only achieve that objective if you, yourself, are fully committed and focussed on what will be required.
Getting The Right CRM Software Package
Learning how to use a complex software package is usually a daunting task, and trying to learn all the ins and outs within the time limits of a free trial is even harder. Not only do you need to find out how the CRM software package works, but you need also to learn if you can apply it to the specific needs of your business.
For the inexperienced person, choosing the best Customer Relationship Management system can be a difficult. Does your business need an on demand solution, meaning a hosted, accessible over the Internet platform, or can your organization use a real run-on-Windows application.
The basic acronyms CRM (Customer Relations Management), ERP (Enterprise resource planning, integrating all data and processes of an organization into a unified system), SFA (Sales Force Automation, automated, time saving systems that help the sales people) can be intimidating, but you should know them. A simple Google search will usually tell you what the acronym means.
To make the best of it, you should stick to a few simple rules that can show you what systems are worth looking into and what packages should be avoided. Having these pointers will let you quickly find a system that will work for you.
First, you should make sure the product can be customized to fit your needs. There are many systems out there but most likely none of them will work for your business right out of the box.
To make sure a system can be customized, look for companies that sell multiple editions of their product, this usually means they have tailored their products to other customers and that they will be willing to meet your needs, and make the product work for you.
Also, you should look for a road map for the product. Having a road map usually indicates that the company believes in their product and that they are here to stay. You want a product that stays in the market as you grow and grows with you.
A product that is usable for you entire company is desirable, paying for a fully hosted CRM you should make sure that it is backed by a Service Level Agreement as well.
Getting the right CRM software package is no easy task, but if you use the above rules as you research the field you should be able to find a system that works for you and your organization.
For the inexperienced person, choosing the best Customer Relationship Management system can be a difficult. Does your business need an on demand solution, meaning a hosted, accessible over the Internet platform, or can your organization use a real run-on-Windows application.
The basic acronyms CRM (Customer Relations Management), ERP (Enterprise resource planning, integrating all data and processes of an organization into a unified system), SFA (Sales Force Automation, automated, time saving systems that help the sales people) can be intimidating, but you should know them. A simple Google search will usually tell you what the acronym means.
To make the best of it, you should stick to a few simple rules that can show you what systems are worth looking into and what packages should be avoided. Having these pointers will let you quickly find a system that will work for you.
First, you should make sure the product can be customized to fit your needs. There are many systems out there but most likely none of them will work for your business right out of the box.
To make sure a system can be customized, look for companies that sell multiple editions of their product, this usually means they have tailored their products to other customers and that they will be willing to meet your needs, and make the product work for you.
Also, you should look for a road map for the product. Having a road map usually indicates that the company believes in their product and that they are here to stay. You want a product that stays in the market as you grow and grows with you.
A product that is usable for you entire company is desirable, paying for a fully hosted CRM you should make sure that it is backed by a Service Level Agreement as well.
Getting the right CRM software package is no easy task, but if you use the above rules as you research the field you should be able to find a system that works for you and your organization.
Five Reasons Why Business Development Is So Difficult To Get Right
Every conversation I have with a CEO of a middle-sized company eventually touches on the same conundrum … ‘How in the world does a company of our size get traction in new markets with new clients?’ This challenge seems to rank right up there with problems of arranging sufficient financial resources and getting top people to commit to a small but growing company.
This is often a challenge that did not limit growth in the early stages. During that early growth, the contacts and reputation of the founders and key executives drove the ‘top line’. Most often the client base came to resemble a silo in a corn field … one client dominating the business mix surrounded by other smaller clients that represent stunted attempts at broadening the base.
To be sure, this start up strategy is one of the preferred ways forward during the initial phase. In fact it is an early indicator if the management team has any business starting the business at all. If they don’t have ready clients for their product of service, they should get them before going forward.
But why, once the early growth phase is over, is it so difficult to get business development going? Why do the business development slots look so much like revolving doors? And, why is it that growing a company from nil to ten or fifteen million in annual revenues often does not seem to prepare management to take it to thirty or fifty million?
Here are some suggestions that might serve to channel discussions towards productive areas.
One: The senior management (particularly the CEO) is not really committed to making the journey. This is more common that you might think. Corporate growth requires significant self-reinvention among key members of the senior team. Often they are not prepared to give up control or manage a larger operation. Some prefer ‘writing code’ or whatever the company’s principal business happens to be. But whatever their ‘rationale’, they don’t want to or can’t become managers. In this case, expenditures on business development can just be a waste of resources. Better save the money and buy the new car.
Two: The structure pretty much guarantees failure. Business development is often an afterthought add-on to the evolved organizational structure. It seems to operate in a quasi-independent status with loose reporting arrangements to the CEO or COO. It is an appendage after the fact. Business development has to be integral to the company’s organizational structure and the CEO needs to be the senior business development member of the team. I once attended an all-hands retreat of a company where the COO gave the business development report. That spoke volumes on how the company saw the three business development employees standing in the wings. They were, of course, replaced by newer models by the next retreat and the revolving door was kept in good working order.
Three: Business development is seen as the province of middle-level people. Think of the message that such an approach gives potential new clients. “Talk to the ‘lessers’ and, if we deem you worthy, we will let you talk to the senior people.” New clients need/want to see the top person right off the get-go. It is the CEO that represents the Company’s commitment to client satisfaction, the ability of the company to commit as well as the ability of the client to find some person to rely on. Each time a decision-maker chooses to go with a new company they take a huge risk. If it goes wrong … how much faith do you think such a person would put in a middle level person with no real connection to the Company’s culture or senior management team?
Four: The wrong people for the job: A company often will bring in ‘business development’ types as a first attempt to attack the problem of widening the client base. These people are ‘specialists’ in chasing business … but frequently not specialists in the business of the company. Most often they are walled-off from the Company’s principal clients and are limited to higher risk longer cycle targets. What is most interesting about this approach is that it resource-starves functions that a company needs to provide in order to successfully grow its top line. Money is spent on business development types while the proposal development, capture team and red-teaming are radically under-resourced. In the end it is often the case of a middle level employee identifying a marginal piece of business that the company cannot properly pursue and capture.
Five: What is all this making us look like in the market place? The process is called branding … establishing the reputation of the company in the minds of actual and potential customers. It is by far the least understood and most dangerous threat to any company’s future. How is your company known … what is its reputation? How well do you understand why customers do business with you? Are you known as a group that knows how business is done? Or are you branded as a company that has ‘outsourced’ its future? These ‘costs’ are often overlooked as being less important than the business of the business. This mistake has probably killed more companies than any other. How you are known determines how seriously you are taken … and that largely determines what opportunities you will see and how successful you will become.
Business development is a tough nut to crack for any management team intent on growing a business out of the teens towards the ‘century’ mark. There are more dead bodies in that field than live travelers. Without careful planning and disciplined execution, the results are likely to be both disappointing and frustrating.
This is often a challenge that did not limit growth in the early stages. During that early growth, the contacts and reputation of the founders and key executives drove the ‘top line’. Most often the client base came to resemble a silo in a corn field … one client dominating the business mix surrounded by other smaller clients that represent stunted attempts at broadening the base.
To be sure, this start up strategy is one of the preferred ways forward during the initial phase. In fact it is an early indicator if the management team has any business starting the business at all. If they don’t have ready clients for their product of service, they should get them before going forward.
But why, once the early growth phase is over, is it so difficult to get business development going? Why do the business development slots look so much like revolving doors? And, why is it that growing a company from nil to ten or fifteen million in annual revenues often does not seem to prepare management to take it to thirty or fifty million?
Here are some suggestions that might serve to channel discussions towards productive areas.
One: The senior management (particularly the CEO) is not really committed to making the journey. This is more common that you might think. Corporate growth requires significant self-reinvention among key members of the senior team. Often they are not prepared to give up control or manage a larger operation. Some prefer ‘writing code’ or whatever the company’s principal business happens to be. But whatever their ‘rationale’, they don’t want to or can’t become managers. In this case, expenditures on business development can just be a waste of resources. Better save the money and buy the new car.
Two: The structure pretty much guarantees failure. Business development is often an afterthought add-on to the evolved organizational structure. It seems to operate in a quasi-independent status with loose reporting arrangements to the CEO or COO. It is an appendage after the fact. Business development has to be integral to the company’s organizational structure and the CEO needs to be the senior business development member of the team. I once attended an all-hands retreat of a company where the COO gave the business development report. That spoke volumes on how the company saw the three business development employees standing in the wings. They were, of course, replaced by newer models by the next retreat and the revolving door was kept in good working order.
Three: Business development is seen as the province of middle-level people. Think of the message that such an approach gives potential new clients. “Talk to the ‘lessers’ and, if we deem you worthy, we will let you talk to the senior people.” New clients need/want to see the top person right off the get-go. It is the CEO that represents the Company’s commitment to client satisfaction, the ability of the company to commit as well as the ability of the client to find some person to rely on. Each time a decision-maker chooses to go with a new company they take a huge risk. If it goes wrong … how much faith do you think such a person would put in a middle level person with no real connection to the Company’s culture or senior management team?
Four: The wrong people for the job: A company often will bring in ‘business development’ types as a first attempt to attack the problem of widening the client base. These people are ‘specialists’ in chasing business … but frequently not specialists in the business of the company. Most often they are walled-off from the Company’s principal clients and are limited to higher risk longer cycle targets. What is most interesting about this approach is that it resource-starves functions that a company needs to provide in order to successfully grow its top line. Money is spent on business development types while the proposal development, capture team and red-teaming are radically under-resourced. In the end it is often the case of a middle level employee identifying a marginal piece of business that the company cannot properly pursue and capture.
Five: What is all this making us look like in the market place? The process is called branding … establishing the reputation of the company in the minds of actual and potential customers. It is by far the least understood and most dangerous threat to any company’s future. How is your company known … what is its reputation? How well do you understand why customers do business with you? Are you known as a group that knows how business is done? Or are you branded as a company that has ‘outsourced’ its future? These ‘costs’ are often overlooked as being less important than the business of the business. This mistake has probably killed more companies than any other. How you are known determines how seriously you are taken … and that largely determines what opportunities you will see and how successful you will become.
Business development is a tough nut to crack for any management team intent on growing a business out of the teens towards the ‘century’ mark. There are more dead bodies in that field than live travelers. Without careful planning and disciplined execution, the results are likely to be both disappointing and frustrating.
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