Thursday, April 21, 2011

No Close, No Money

So you want your business to generate revenue? Money? Be cash positive? Join the club. Your business won't get very far without an excellent sales strategy. Below are some basic tips on setting up and closing deals.

The Three Functions of a Sales Department

Every sales department (or even a lone salesperson) has at least three main functions. The first is to contact new leads (create the funnel), the second is to move the prospects through their objections, and the third is to close prospects. The deliverable of the sales department is, of course, closed sales.

Although closing is 10% of the sales cycle, it delivers 100% of your revenue, and therefore its importance cannot be overstated.

Most sophisticated sales departments use a blue sheet to analyze the sales cycle for each customer. You can search the internet for "blue sheet sales strategy" for a template. These are an excellent tool for setting up and examining the sales funnel and keeping the funnel flowing towards the close.

A good blue sheet should include an analysis of the main objections each prospect has and the handlings for each, as well as a strategy for closing. The key to the funnel is MOVEMENT. The funnel must be active and constantly worked to achieve qualified prospects and convert them to customers by closing.

The Importance of the Close

Closing strategies are a separate and voluminous subject. The main point of agreement about closing strategies is that planning and coordination on handling the objections is key. Every objection must be qualified for accuracy. This qualification step basically involves checking with the prospect whether, if the objection were handled, would he proceed with the process. If he says yes, the objection is real, but if he states some other objection, this objection must now be checked.

When the full list of objections is coordinated amongst the sales team, the objections must be systematically handled by a sales “battle plan”, a strategy for overcoming all of the relevant objections to the degree possible. If some objections cannot be overcome, a different strategy can be formulated depending on the importance of the objection. Only about 10% of objections are insurmountable. Remember that the prospect would not have continued communication with you if he did not have some level of interest.

A closer must be a courageous soul indeed, for he must confront and handle all objections, despite any emotion and reaction on the part of the prospect. He must also tolerate the possible “no” which, with further communication, will turn into a yes. This is not for the faint of heart. The key to closing is continual motion, continual communication, and continual interest. The closer is never discouraged. He is persistent, upbeat, truthful and highly communicative, but not unreal, disingenuous (not genuine) or rude. The best closers are skillful communicators, not overbearing brutes.

Planning for Success

Planning out the sales cycle from lead through close is the key tool for making the revenue your company needs. The sales division may just be the most valuable division in your company, so do not shortchange them with weak or non-existent planning.

When they win, you all win!

Wednesday, March 9, 2011

Up and to the Right

Take a moment and tally up how many people work in and for your business. What if every one of those people were suddenly 25% better at their jobs? What if they were each 50% better? How would this impact your business? Leadership studies have shown that a “feedback culture” improves team member performance faster than any other organizational change. Don’t miss out on what could be your chance to have a high-performing team.

It’s long been a part of business culture to have regular performance reviews and the purpose has, supposedly, been the improvement of the employees and, therefore, the improvement of the business. The idea is that if you give someone a review of his performance, he can improve it. Sounds simple. Unfortunately, few times of the year are less productive and more stressful for managers than “performance review” time. Perhaps you too have dreaded the performance review of your employees, knowing it might be contentious or upsetting, or, at the worst, a nightmare of legal vulnerability. Sometimes the reviews are a surprise. Other times they are a boring, repetitive exercise in paperwork.

A new trend has been sweeping American companies over the last few years that is intended to end this once-a-year feedback-fest which is usually littered with half-baked opinions and squishy goals. Many companies are now working to create “feedback cultures”, cultures where open communication about job performance occur on a daily or weekly basis, sometimes even minute-to-minute, to increase awareness of strengths and weaknesses and to take the pressure off of the yearly performance review.

If you have decided that you want to up-level your team in a hurry, nothing is better than creating an instant feedback loop for your team. Follow these simple steps to get started.

Creating a Feedback Culture:

1. Set expectations for the entire team. Have a meeting to let your team know that you intend to improve performance by trying new feedback methods. Tell them not to roll their eyes yet. Explain the feedback method will include metrics as well as individual feedback to each person. The idea is to get everyone used to feedback so when it comes along, it isn’t so bothersome.

2. Get agreement. Get the team’s agreement that feedback is not only a good idea, but that it will be accepted routinely. Next, have each person work out one major metric that measures his job performance and graph it on a line graph. For example, if the person is a receptionist, have him track the number of incoming calls, packages or visitors that are correctly routed. Make it a game to get this number higher and higher. The game is UP and TO THE RIGHT on his graph. Next, work on "soft skills" such as tighter communications, better grammar, a more pleasant tone of voice. Make it a game to improve these things, rather than focusing on them being "poor" right now.

3. Educate about feedback. Help the team distinguish between performance feedback and useless or harmful opinions. Example: “You need to be more organized. I suggest a schedule including each client, time of appointment and outcome” [performance feedback] VERSUS “You are so disorganized!” [useless/harmful opinion]. Good feedback is specific and actionable. Make sure all your feedback meets these criteria. Realize you may need to give a piece of feedback in several ways, over several conversations. Also educate the team about metrics, how to track them and how often you will be reviewing them. Start with weekly metrics and review them at a short, end-of-week meeting. Push everyone for an "up and to the right" graph.

4. Practice. Start right in the first meeting to give on-the-spot feedback. Get the team members used to it. The only way to do that is to practice. Remember to balance positive feedback and “improvement” feedback.

5. Prepare for reactions. The most important thing to do is to be committed to your feedback process. Don’t change simply because you hear some grumbling. Those who are good performers will like the new feedback because their graphs and their feedback will set them apart. The winners will be very obvious. You can call them the “up and to the right” crew.

If you are already skeptical about whether this can work for your organization, consider the story of a small team at a major technology company that decided to jump headfirst into trying this new method of feedback. The first thing that happened was a bunch of noise. “I don’t like it. It’s cruel.” “Is this what they call ‘thickening our skins’?” “Seems like an excuse to be mean.” Yes, the adjustment was rough at first. After a week or two, the whole crew was used to sporting graphs for every team meeting, looking for “up and to the right” curves. They started making feedback, the specific and actionable kind, a part of the daily routine. The team became a study in high performance with some of their best-performing members being promoted within the year. This same team was responsible for creating the laptop on which you might be typing your email.

And of course, you can always remember the words that came from the same person who threw away his performance review: “All that matters is graphs that go up and to the right.”

And, in the end, it’s true isn’t it?

Monday, January 31, 2011

No Excuses EVER

What IS the most important characteristic of a leader? Read any leadership book and you will find tens of possible answers: character, strength, a genius IQ. Our research led us to this answer: no excuses. The technical term for this might be “accountability” or “responsibility” but we like “no excuses” because it conveys the real, raw truth of the matter.

The real, raw truth is that a fantastic executive is able to make things happen and she never makes excuses when she can’t do it.

Take the stories of these two real-life executives. One, the CEO of a technology start-up, ran into trouble with her company. The idea of her company was a unique and ingenious one, but she just couldn’t get any traction in the market. A fantastic executive herself, she ordered an immediate review of herself, with interviews from all of her investors and a harsh but truthful look at her executive skills. She found several deficiencies in herself such as a weak financial background and some difficulties in PR and marketing. She instantly hired a consultant to help her with her PR and marketing, and she found a part-time CFO to fill in her financial gap. She started really kicking the market in the teeth and got on the cover of a major magazine.

Another CEO, head of a $35 million technology company that was in the transition phase from startup to mid-size found himself losing the buy-in of his executive team. He lost his VP of Sales and his Chief Engineer before he called us. Then, when we arrived, he went on and on for hours about how the problem was the founder of the business. The only problem with his excuse was that the founder had been around long before the exodus had begun. It just didn’t add up. This CEO was completely unable to look at his own contribution to the recent problems.

The difference between these two types of leaders is a simple one. The first CEO was a no excuses CEO! She was able to face up to her weaknesses and charge ahead with solutions, unfazed by any critical or difficult feedback she might have gotten. The success of the company was more important to her than her personal pride. The other CEO, unfortunately, was so involved in finding who to blame that he couldn’t even see beyond his own nose.

A “no excuses” executive does not judge his company or his team by whether everything is perfect. That would be the wrong standard. The question is whether he can look at his company or team and, despite everything that is wrong, still make things turn out right. In the process, such an executive might even find that he or she has much to learn or many changes to make before all is well. Despite these difficulties, a no excuses executive charges ahead.

If you aren’t sure if you are a “no excuses” leader, take this short quiz:

1. When something goes wrong, do you usually search for who is to blame?

2. First thing in the morning, do you look at the day ahead and see only problems?

3. Do positive people annoy you?

4. Do you wonder why everyone around you is so much dumber or lazier than you?

5. Do you blame any recent career or job failures on the “bad economy”?

If you answered “yes” to more than three of these questions, you are having a tough time being a “no excuses” leader. You may need to take a longer leadership assessment test to determine why you have a tough time taking responsibility.

We are the first to admit that being a “no excuses” leader is not easy. On rough days or around tax time, we all might wish for a good scapegoat. The hard, unfriendly truth of the matter is that those who have the most success are the ones who can look at any situation and determine how they caused it.

So if you are looking at a financial disaster in your company, or a human resources nightmare, or any of the myriad problems that can occur, pull yourself up by the bootstraps and consider this:

1. Just because you are “no excuses” does not mean you should engage in self-pity or blame. Just acknowledge the situation and get moving on a solution.

2. A good analysis of how the problem occurred goes a long way toward solving it. If you can’t figure it out, get a professional in the area to help you.

3. Don’t get distracted. Just because something is unpleasant does not mean you should avoid it. Put on your riot gear and attack!

4. There’s nothing better than getting it DONE! So take that big, hairy problem, tackle it, get it done and move ahead!

Finally, remember this brilliant quote from Thomas Edison: “We are continually faced by great opportunities brilliantly disguised as insoluble problems.”

So go find some opportunities! No excuses!

Tuesday, January 18, 2011

Is He Coachable?

We have all worked with the guy we avoid at company Christmas parties and functions, the one who gossips about everyone, or steals others’ ideas and passes them off as his own and pretends he doesn’t. As he exits his yearly performance review, we watch carefully, hoping he has somehow come out a changed man. Over and over, we are disappointed. Why is that?

Let’s start with some basic data about leadership development. A person develops certain habits or patterns that he or she thinks help him to survive in the workplace. Those patterns are engrained early on because at some point, they worked.

Example: Joe steals some presentation data from a co-worker and gives the best presentation of his life. He gets promoted as a result. Now, he has found a reason to keep stealing data, hasn’t he? Four or five jobs later, he is still stealing others’ ideas even though it no longer works and others shun him. This is an ethical problem for him.

What can we do for this workplace problem child? How can we help him?

Remember this: In the absence of ethical behavior, no leadership development can be done. Ethical problems shut off the ability to learn. So if you have your eye on someone who “just doesn’t get it” or never changes, you have your eye on someone who needs an ethics tune-up. He just is not coachable yet.

If we drew a pyramid of important items necessary to career development, it would have a base labeled "ethics" and the upper part of the pyramid would contain all the various parts of leadership development.

A strong ethical foundation is necessary to truly develop a leader. A person who has to lead others cannot do so unless he has others’ best interests in mind. A person who has ethical trouble thinks only about himself and pits himself against everyone else. The easiest way to spot a person with ethics problems is that he chooses himself over everyone else. It’s what you are really complaining about when you complain he “doesn’t get it”.

The good news is that ethical troubles can be fixed! Please do not waste your time trying to develop a leader when his ethics are all a mess, though. Handle the ethical problems first.

Tips for handling ethical problems:

1. Don't go it alone. If you approach someone complaining about his self-centered attitude, you will end up on the wrong end of the battle and you could be the one in trouble. Instead, start documenting the problem behavior with very specific examples. Write the examples down and submit them to your HR person. If you do not have an HR person, see the article entitled "The Real Purpose of HR" (in my section on Biznik) and give a copy to the person in charge of hiring.

2. Keep help in mind. Remember that a person with ethical problems is going to be very defensive, so tread lightly and keep your intentions good. Expect to be seen as a troublemaker, at least at first.

If you have trouble or your first encounter is like taming a dragon, call on a professional coach or HR person who can dig in deep and get to the root of the matter in a helpful and thoughtful way. Then, when the person is really ready, give him a development plan that will allow him to soar.

Monday, January 3, 2011

You Want It, You Got It

Influence is the power to affect people or events, the capacity to be compelling. With influence, you can achieve your goals and win in your business. Without it, you will be frustrated and upset, tired and apathetic about how the world affects you. In short, influence is the bridge between where you are now and the life of your dreams.

Think for a moment about something you got that you had wanted for a long time. Think of another example of something you achieved that you had wanted for a long time. What do these two things have in common? You had to communicate and influence to get them. None of us can achieve anything in life without communication and influence.

Think now of something that you would like to have. Why haven’t you gotten it yet? What if you knew the right person or event to influence? What if you knew the key to influencing any person to achieve any outcome you wanted? How valuable would this information be to you? Read on to discover the factors of influence.

First, let’s start with some basics of communication. As much as you might not like to hear it, other people are different from you. Their perceptions are not the same as yours. As a result, you have to make a concerted effort to understand them and their points of view. Without this basic knowledge, you will get nowhere in influencing others. Others know if you are spending the time and effort to understand them. Take the time. Make the effort. This is the most basic first step of influence.

If you are uncertain about how to do this, try first by asking some basic questions of the person in the area you are discussing. For example, if you are attempting to influence your boss to give you a promotion, ask some questions about the budget and the future outlook of the company. Find out what he thinks about the company and the outlook for the next year. With this step, simply try to achieve understanding. Do not ask for anything yet.

After you have taken some time to understand the person you are trying to influence, try next to develop some admiration for the person. Find something you can like about him or her. Expand on that as much as possible. If your boss loves the same type of music you do, get the idea that you really agree on this topic and expand on it as much as possible. A quick warning: you will occasionally run across someone who does not respond well to admiration. Although this is more difficult, it can be overcome with some customized help. If you have encountered this situation, get some help from HR or a coach.

Keep in mind that the development of admiration starts first with you. It has to be genuine and you have to develop it yourself. If you find that you have a hard time creating admiration for others, you may also have a hard time influencing others. If this is the case for you, seek out some help for your critical nature. This cynicism could be your downfall. If on the other hand, you find it easy to create admiration for others, you are well on your way to getting whatever you want.

Your next step is to achieve certainty about what you want. Again, this is an internal step. Set your mind about what you want. Any doubt you have will show up in your communication to others. Root it out. Once your mind is set, start getting agreement from others about what you want. Say it is true. Explain how it can be true. Remind yourself and others daily that it is true. Spread the word about it. If you are going for a promotion, start acting as though you already have that position. Yes, you should use some caution on this that you don’t step on any toes. The most important part is the mental step of internal certainty. If you can follow this with a skillful use of communication to get others to subtly see you as already in possession of what you want, you are home free.

To sum it up, influence starts with you and your mental state. How much do you like others? Can you listen to them? Can you understand other viewpoints? Can you make up your own mind that you will achieve something? If so, you are well on your way to influencing others. Start close to home and you will find it easier and easier to expand your sphere of influence.

http://www.becoachable.com

Thursday, June 10, 2010

Performance Feedback: How to Stick the Landing

Giving feedback is like giving a person a snapshot of himself.

The first thing you do when you look at a picture of yourself is to pick it apart. You want the picture to be a good one, accurate and flattering. You want a "good hair day". You want to improve the picture in any way you can. Sometimes you want the photographer to re-take the picture.

When you give feedback to others, think about the picture you are giving them of themselves. Help them to improve the picture and understand their resistance to seeing an ugly one. Help them form a more accurate and actionable picture of themselves by following the tips below:

1. Devote time to feedback.

Structured, planned feedback should be balanced with ad hoc feedback. Without a plan for feedback, the comments seem random, capricious, even mean-spirited, and will be ignored.

2. Be specific.

What action do you like/not like?
When did it occur?
What effects were created?
Avoid generalities like “Everyone thinks you are stubborn.” This is not actionable feedback.

3. Balance positive and negative feedback.

Consistently negative feedback turns people off and will close off communication.

4. Give good reasons.

If you want some behavior or attribute to change, explain to the person WHY it is vital to change this attribute.

5. Create a plan.

Many people would like to change but do not know HOW. Help the person see how subtle shifts can create different effects. Give short step-by-step ideas for changing the behavior.

Don’t bite off more than you can chew. The biggest mistake made in giving feedback is trying to tackle every problem or the whole picture in one meeting. This overwhelms and upsets the person. Better to make progress on one small part than no progress at all.

The following anecdote shows the cycle of accurate and actionable feedback.

Joe arrives for his weekly one-on-one with his manager. He is aware that the last 10 minutes of the meeting are devoted to development feedback.

His manager (Rita) reviews a recent team meeting where Joe withheld information from a peer, causing the peer to flounder on his presentation to the group.

Rita discusses what happened in the meeting, how the withholding of vital information caused the peer to be upset and look unprepared in front of the group. Rita explains that if the group works together they look better as a group and they have more influence across the company. Rita explains how this withholding behavior has generated a poor image of the group from the outside.

At this point, Joe defends himself and points out why his behavior was correct. Rita takes no issue with his defense and simply acknowledges it. Joe’s defensiveness is expected and his justifications are listened to and acknowledged with no special importance given. Defensiveness is a trait common to all human beings. After acknowledging only (NOT arguing) with his reasoning, she simply proceeds to work out with Joe a set of steps to avoid this problem in the future.

Rita suggests a few steps for Joe and lets Joe volunteer steps as well. Joe suggests he meet with his peers regularly and find out what information might be needed from him for presentations. Joe also suggests he proactively share information when he receives it. Rita agrees to any ideas she likes and suggests ideas of her own. The two of them agree to a short plan (three to five steps) and both sign off on it. At the next one-on-one, they both check in on progress. Any changes to the plan can be made at that time.

Good feedback should be a well-planned cycle that starts with noticing an issue, continues with scheduled and impromptu feedback, and finishes with improved performance reviews. With a thoughtful approach and patience, you can move the needle on changing behavior and developing better leaders.

Friday, May 28, 2010

The REAL purpose of HR

The Real Purpose of HR
At a recent offsite with a group of highly skilled Human Resources executives, I asked the toughest question of the day: “What is the purpose of HR in a company?”
The silence was deafening.
Then, slowly, as the stunned crowd came back to life, a few muffled answers surfaced. “To hire and fire.” Decent, but shortsighted. “To ensure compliance with employment law.” Not quite. “To recruit top talent.” A partial answer.
None of these executives fully knew what Human Resources departments were designed to do. Why was HR created? What value does it add in an organization? How could we know if the HR department was a good one or a bad one?
This problem is all too common. Some companies choose to outsource HR entirely and just hire contractors until they have to pull HR in-house. Because HR has lost sight of its purpose in modern companies, it becomes ill-defined, often lackadaisical and sometimes ridiculed.
The answer to this malady is to restate and re-instill the purpose of the HR function: To hire, train, motivate and support productive employees. This means that various tasks fall to HR which can be measured. It is not the wishy-washy, touchy-feely area it might seem to be.
HR departments should:
1. Hire good people. Qualified people hired and working can be measured.
2. Train people to do their jobs correctly. People in their roles who are fully trained to do them can also be measured, as can various training modules on the way to full competency.
3. Motivate employees. This means removing barriers to productivity. This can be measured by tracking each employee’s productivity.
4. Support productive employees. This can be measured by compliance with policy and law and by retention.
Most HR departments cover #1 nicely. #2 is often sketchy and only sometimes effective. #3 and #4 are fertile ground for further discussion.
How does one motivate employees? Motivation can be defined as a willingness to do something. Willingness is the greatest tool any person has to accomplish goals. What gets in the way of willingness is too many barriers and too many failed purposes. An effective Human Resources department can remove these barriers for the majority of the company and watch as productivity rises.
Barriers can be conflicts in the workplace, employee relations issues, pay problems, and a host of other possible topics. Human Resources professionals have to be highly trained in handling conflicts and bureaucracy to accomplish this step. If HR isn’t able to track each employee’s productivity, it will be difficult to assess whether barriers have been removed.
Imagine this utopian example. Joe is a Director of Marketing for a major division of a large retail chain. He has been working on a project to increase customer engagement through targeted marketing and has been successful at doing so. Customer engagement in his target market is up 6% over last quarter. His boss, the VP of Marketing, then tells him he is ineffective and that he should stop the project and work on a social media marketing campaign.
In a perfect world, Joe goes to HR and explains the situation. HR sets up a conference with Joe and his boss, bringing the graph showing Joe’s recent success. The confusions are resolved and Joe is returned to his prior project and someone else is put on the social media campaign.
A few key points come from this example. 1. The VP of Marketing should have known Joe was successful. Since he didn’t, it is HR’s job to let them know he is a good employee who should be protected. 2. HR should be skilled in negotiating difficult human interactions, as this one could potentially have been, especially if pressure to do a social media campaign was coming from further up the org chart. 3. No stop or stall in production should result from this problem. HR should act swiftly and accurately to keep production moving. 4. If the VP of Marketing himself is having trouble, HR should note this and help him to remove barriers to his production as well without pushing confusion downward to his team.
The key point here is that Human Resources is the backbone of a productive, happy organization. Why? Because nothing in a company is accomplished without its people. Skilled management of the people and support of their productivity is a vital foundation for the rest of the company. So get your HR department functioning correctly now and reap the rewards down the line.