Monthly Archives: November 2012

Now go over it again

Now go over it again

We are living in interesting times. Get over it. They will become increasingly interesting as time progresses. At some point they will become unbearably interesting and then we will have disruptive change. Until then, we need to make do with manageable change in the name of cost cutting. Many people talk about it and some companies and organizations pull it off but in their majority, small and medium companies get carried along by the current of everyday activity. At some point some people decide to look up from the task in front of them and take in what’s happening in their environment. If they are lucky they see the signs and avoid the rapids. Others spot, too late, that low branch or experience (too late) that feeling of nothingunderneathusness as they go over the waterfall.

So what is the underlying message? Just because you are keeping busy doesn’t mean you are being productive. Getting stuck in denial gets you stuck in outdated practices. Getting stuck in outdated practices will get you killed. From a business perspective. So what to do? The key is at the end of the previous sentence: “?”. Start questioning things. Why do you do whatever it is you are doing? Why are you targeting this customer and not that one? Why do you have “x” employees working on “this” activity. I may be repeating myself but, after all, isn’t that what best demonstrated practices are about?

So take an analytical look at everything that goes on in your company. Remember you are paying for it. Even if you don’t see an invoice for the specific activity, item or action you are paying for it. So do you really need it? Is this the best way to do it? Nine times out of ten the answer is NO. There is always a better way. So stop doing things that are not adding value to your company. These are the things your customer would not be willing to pay for. Like that expensive chair you love so much and which inspires you to better the service you provide. Try putting that on an invoice and sending it to your customer. Don’t want to? What else are you doing that you are not proud of? Duplication? If your process is not worth presenting at a conference and bragging about its benefits, you should probably be redesigning it. Look up process improvement. Start small. Mini projects with achievable goals, aimed at making your customer happier. Happy customers come back. This should be your goal in life. Which process would you not like to describe to an expert on the subject? Use the gourmet approach: you sniff and if you can’t put your finger on the ingredient you try to link it to the memories it brings to the forefront. If you can’t put your finger on what’s wrong with a process, use a similar approach. How does it make you feel? Safe? Happy? Proud? Shocked? Afraid? Very afraid? Then go and dig deep and don’t stop asking why until the answers you are getting are making sense to you. Do this often and for all departments and aspects of your business. How much are you paying for “X”? Why are you buying it in the first place? Is it adding value to you offering? Is John in Accounts adding value to your offering. And so on.

Start asking. Otherwise you won’t get any answers.


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Who are we selling to anyway?

Do you have a clear picture of who your customers are?

In a discussion the other day with a group of people putting together a proposal for a retail company it struck me that even large, reputable companies in some cases get lost in the woods. Then they run into a candy cottage and think they’re on to a good thing. The company in question was doing well and getting lots of browsers. They were looking to get more people into the store by offering an enhanced experience. So far so good. What did they have in mind?

“Well they want people to enjoy spending time in the store so we are considering various fun activities such as using the game consoles, book reading corners with beverages, play spaces for kids… “

I was expecting “shoulder massage while waiting to pay” to creep in somewhere. Why?

“What do you mean why?”

Why are they looking at this shift, change, transition or whatever you want to call it?

“Well, people are walking in but they aren’t buying stuff”.

And this will be remedied by rewarding browsers just to be browsers?


Then we got to talking about how the company is branded. Is it branded? What do you think of when you see the logo? And please note that this is a successful retailer with a dynamic approach to doing business. So how did we get to the point of examining what meat lockers we need to install without determining how many of our customers are vegetarian?

It all boils down to knowing who your customer is. In some cases you should also be looking at which customers you are attracting? Are they the same as the ones you are targeting? If not, which way do you go? How strong is the brand? Is it strong? Has work gone in to building it? What are you changing and why? The fact is that in real life there are loads of companies that start a change initiative without taking a good look at the facts and figures. In an unbiased manner. With an open mind. And if the figures aren’t there, for God’s sake get some. Who is your customer? Who do you think your customer is? And who are you targeting? Impulse buying came into the conversation. Then it went downhill.

So you are targeting customers with enough disposable income to embark on impulse purchases by offering free pastimes in a pleasant and accessible environment with free beverages and use of facilities?

I got a few looks and changed the subject. There was really no reason to walk out of the room having created a bad atmosphere I wasn’t being paid for.

But do stop to think: what are you selling? To whom? If it’s working, instead of trying to change it, find out why it is working and enhance it. A Captain not willing to change course is more likely to crash into the rocks than the one that sees an unexpectedly favorable passage and follows it.

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Posted by on 21/11/2012 in Managing sales


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Sell hard

In the die hard movies, the guy just doesn’t give up. The same should apply to sales people. They should never give up. But. There’s always a but. There’s a difference between working hard on a sale and hard selling. Hard selling is dead. Some sales reps do not want to accept this. Most everybody else was glad to bury it. Influencers, decision makers, managers, you name it, nobody has the time for hard sellers any more.

The hard seller is the sales rep that lives by the belief that they can sell ice cubes to people living in areas adjacent to the polar ice caps. This is the person that you will buy from only to get them out of your life. If it’s a once off sale. “Yes! OK! I’ll take the printer!” and then in the privacy of your own mind “Just as long as you go away and stop bugging me!” The hard seller is the sales rep that that always knows better and believes that he can break your will not to buy. It gets personal and somewhere along the line it’s becomes a contest. And nowadays buyers just don’t have the time. So if you are looking to lose sales, keep the hard sellers in your sales force. As mentioned previously, hard selling kills opportunities. And an opportunity is a terrible thing to waste. Believe me, buyers have developed antibodies for hard selling, similar to anti SPAM software.

Not the way to sell

So the modern sales person uses more sophisticated techniques. They are trained to ask questions. They uncover needs and wants and pick up on motivators and, guess what, the hard sellers are back! Let me recount a personal experience. I was sitting in my office waiting for an acquaintance from another time to turn up when he did. After the pleasantries he mentioned that he was now working for an insurance company. Yes, really, totally different to what he was doing in his previous position. He was in Sales at that. And then he pulled out a laptop. My polite smile froze. He opened it and turned the screen towards me. The PowerPoint was already in slideshow mode. Complete with logos and a corny wannabe catchy title slide. Then questioning technique started

“Wouldn’t you like to know that no matter what might be wrong with you, somebody has you and yours covered?”

“Well, actually…”

“And how would you feel if you could choose any medical facility in the world for your health needs, whatever they might turn out to be?”

“Look, John, I think…”

“Good. You should always be thinking about your health. When was the last time you had a physical?”

The guy just wouldn’t stop. He explained over the coffee, I was no longer happy to have offered him, about the merits of colonoscopy with what I felt was more attention to detail than necessary. In question mode. “Have you ever seen the probe?”, “Have you ever wondered if you are conscious during the process?”.

The technique was in there somewhere. He was asking questions. But he wasn’t paying any attention to the answers or to my reaction or body language. Plus, he didn’t mention during the long-time-no-see phone call that he was actually making a sales call. His fault? No. His manager’s. Or the maybe the consultant that trained the sales force was to blame. Or both. This was hard selling in  sheep’s clothing. Which made it worse. At least the other type comes at you both guns blazing. This was sneaky and had an even worse effect. At some point I began to feel that my intelligence was being insulted. After the first few questions I pointed to the sign on the door. “John, the sign says “Sales Manger” for Pete’s sake. He still didn’t get it. After going through the motions he ended up with a triumphant slide that had a figure on it. “Am I buying insurance, or part of the company?”

“Surely this is an affordable amount for somebody in your position”. He was now making assumptions on my financial status. And it was all part of the misbegotten, misguided training he had received at some seminar called something like “Increase your sales, guaranteed or your money back”.

The point here is that if you want your sales people to be successful, think like a prospective buyer. Sales techniques are meant to be used as facilitators not to be practiced religiously without straying from the path. You need to be listening to your prospective customers, who by the way have done you the favor of taking the time to listen to you, and you need to be hearing what they have to say. Then you need to ask more questions and then you need to decide if you can genuinely satisfy their needs. If not, you need to be mature and honest enough to say so. Then you have gained their respect, the right to call on them again and maybe even a referral. Because you have integrity. If you do believe they need what you are offering, then proceed. Find out how you can tailor your solution to fit their need. Sniff out what they would change if they could. And have an intelligent conversation. Otherwise you are not building a lasting relationship. You are reminiscent of professionals of an adjacent discipline and your discussions are the same as their lines: untruthful and just part of the script.

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Posted by on 15/11/2012 in Managing sales


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Give me some credit

Get a grip on your credit

I’m sure this is one of your main headaches and it is probably getting worse these last few months.

Who is in charge of getting paid in your organization? This is a similar question to who sells in your organization. As, in most cases, we have all accepted (even if it’s just as something catchy to say) that “Everybody is a salesperson”, by extrapolation, the same should hold true for collections: “Everybody is a collector”. I truly believe that everybody in an organization should be selling. It may not be products, it could be goodwill, it could be positive publicity, it might be referrals, it might be keeping your eyes open for new business opportunities to call in to the sales guys. Everybody should be contributing to increasing the top line of the company that pays their rent, food, tuition, gambling debts, whatever. Then we have the professionals: The sales force. These people are actually paid to sell. If the organization is set up properly then a sizable part of their compensation is related to how much and how well they sell. So why do we even need credit control? Don’t allow a sales force culture that shuns responsibility to collect evolve in your organization. Fact: nine out of ten sales persons have issues with using the words “buy” and “pay” in the same sentence, especially when addressing a customer or prospect. Fact: nine out of ten uncollected invoices are the result of a lukewarm reference to credit terms at the closing phase or a lukewarm credit control process. Fact: many sales people consider that their job is done once the deal is closed. This is not true. Think of somebody introducing a new friend into the circle. The introducer is responsible if the introducee has a history of violence and ends up bashing the circle.

In order for your invoices to be collected, you need a close relationship between Sales and Accounts and sales people that believe that a sale not collected is not a sale, it is a liability. If the other guy is not going to pay, let him, nay, encourage him to go and not pay your competitors. In fact, give him a contact number.

Where does credit control begin? Well, contrary to common opinion, it does not begin after the credit period has elapsed. In fact, it begins before the deal is closed. In these times of corporate drought it is increasingly difficult for sales professionals to be selective with their customers. By all means revisit whatever standards can be revisited EXCEPT credit. If during the initial contact phase you get the impression that the prospect will be a credit issue, drop them. Don’t waste any more time. During the fact finding meetings, depending on the selling techniques the sales rep is trained to use, the question of payment needs to be addressed. Make it very clear that you are willing to work with the customer to arrive at a solution but your company expects to be paid on time. There are many ways to say this but that is another post. By the way this does not mean you are discussing price yet. Refer to credit periods, mention payment on more than one occasion and observe the prospect. Even a rookie sales person should be able to tell if they are sitting opposite a prospect for the provision for bad debts line. So the sales force is heavily responsible for making sure the company gets its money.

Having said this, the sales force needs to be diplomatic. Credit control, on the other hand, can be more candid within the framework of its mission. To quote a moth eaten cliché, it’s still all about the follow up. Many companies have procedures in place that dictate how they pay. Some say they issue payments on the xth of each month. I have even seen flowcharts that dictate no payment is made until the supplier has made second contact with reference to the outstanding amount. So do spend some time making sure you have a procedure in place for collecting your money. You should have a procedure for your existing customers and one for new customers. New customers should get a friendly call from Accounts (not credit control) as soon as they receive their first invoice. Have you received our invoice? Are all details correct? Are the charges clear? Do you need any additional information? This save the “Send me the statement, there’s something off” call. As soon as the invoice is due, Credit Control calls and informs that the invoice discussed on the 15th is now due, how will the payment be made? Thank you. This shows the client that you are serious about collecting.Then you wait, send a written reminder and failing this you stop credit and pull out the legal notice. You log all these. You monitor payment behavior and watch for pattern changes as you do with sales. The sales rep should be ccd on written communication to their client. They can then also follow up with the client and help the process along.Also you look rather amateurish if you turn up for a friendly sales call and don’t know your company has threatened your eleven o clock meeting with legal action.

Don’t let invoices go unpaid for three months and then call up people yelling.

By the way, you are not doing a small company a favor by letting them lag behind with their payments. They will just end up not having the cash to pay.

And make sure that everybody fully understands that selling costs, even before the service or product changes hands. You are starting from a loss position. By identifying potential bad payers, you are minimizing that loss.

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Posted by on 08/11/2012 in Managing numbers


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Appraisals and other HR monsters

It shouldn’t be grey and fuzzy

OK, so it’s that time of the year again. You are snowed under, rushing to meet your deadlines, running around closing deals, signing lots of papers, preparing the business review presentation… and then you realize it’s appraisal time. Damn! Damndamn! Admit it.

For many managers this is a pain in the proverbial. Why? Because, to quote a classic, they are doing it wrong…

We tend to set up appraisal mechanisms designed by benevolent people with several assistants to ensure people get a fair review. What they end up ensuring is that a manager (usually with no assistant) up to her neck in urgent matters ends up rushing through the process for the purpose of compliance. This usually happens in the larger type of organization. In smaller operations these items tend to get filed under “BS” and never get done.

In both cases, we are missing the essence of the matter: You need to pay attention to your people. In a small company, appraisals are usually continuous and part of the daily routine. “Nice job, Georgia”, “Let’s take a look at that report you set up, Paul”, “What the hell were you thinking, Jean?” and so on. Fair enough. But if you want to develop professional co-workers, you must first act professionally and treat them as professionals. That means taking the time to pay attention to their performance, taking time to understand what makes them tick and then sit down with them and tock (sorry-couldn’t help myself).

People prepare for their appraisal. Many get stressed out about sitting with the boss. They lose sleep the night before and may even rehearse what they are going to say and try to anticipate your input. So don’t take it lightly. Prepare for the meeting and set aside the time. Avoid interruptions, set up a neutral space (a conference room) and have a numbers based discussion. Yes, it’s back to the numbers. You should be able to build a case by combining the cold facts with the personal reality sitting in front of you. If you have been clear in setting targets for your people, appraisals are so much easier. They have their hard targets, their soft targets, their professional development targets and they know how they measure up against them. If you have not set your targets carefully you are in for surprises. People without clear targets will always assume that they are in the green. Wait for the shocked silences when you paint a different picture. “What do you mean I’m below target? I’ve brought in LOTS of revenue and a BUNCH of new customers!”. Of course when asked how much 5% of LOTS is they usually have some trouble quantifying.

Always make allowance for that annoying little thing called human nature. People have things going on outside the office. Some are good, some not so good, others may even border on the illegal. Try to know if there is a personal reason behind the sudden drop in performance. Then handle it discretely.

Remember, a co-worker should walk out of an appraisal meeting feeling refreshed and focused. There should be a sense of justice, recognition and direction. Otherwise just send the targets through the mail.

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Posted by on 01/11/2012 in Managing people


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