Friday, May 08, 2009

Sales Force Ineffectiveness, Conjecture On The Future Of The Profession, Part 2 of 3 -- Not Just A Sales Problem

In the first part of this post, I focused primarily on the sales function and challenges we have created for ourselves. However, what we face is not just a sales problem.

There are some things that keep us from being as effective as possible that are not just the “fault” of sales people, but which do contribute to our inability to sustain high levels of effective performance. Some of it is “business culture”—in general, some of it is “regional culture”---that is North American, European, Asian, and so forth. Some of it is “industry culture.”

These represent attitudes, behaviors, practices, expectations by all business professionals, but which applied to selling, adversely impact our performance and effectiveness. I can’t review all of these, but will highlight a few of the issues that impact sales effectiveness.

The focus on the short term is one of the biggest issues impacting organizations, in general, and sales specifically. CEO’s and Boards are concerned about today’s stock performance. Decisions are biased to what impacts our stock now—not what will increase our market cap in 2-5 years. If the strategies, tactics, and actions we have adopted don’t impact stock price today, then tomorrow we will change them.

This has a terrible impact on all parts of the organization, but perhaps the biggest on sales. Strategies, tactics and actions are oriented around booking the order today. If we aren’t tracking at or above plan, then we will change our strategies and tactics. We confuse the sales people, we confuse our customers, and we don’t produce results. We push our customers to meet our schedule for booking orders rather than their schedule of producing results. In this environment, the “program du jour” rules---at least for today, who knows about tomorrow?

Sales people become numb to this, they often ignore everything and just keep doing what they have been doing in the past. They keep their heads down and stay out of trouble.

Speed of execution is favored over planning. We are too busy doing activities, to focus on doing things right. We always have time to do things over (after all, our programs and priorities will change tomorrow, anyway). Taking the time to plan, takes away from time we can spend doing stuff—regardless of whether it moves us forward. We have studies, as do others, which show tremendous improvements in productivity, results, and effectiveness by investing time in planning. Clearly, we can’t go overboard, but there is a mentality/culture in most of the business world that favors activity and speed---any motion/activity is good motion/activity over doing the right thing at the right time with the right people.

We live in a disposable society: Rather than fixing something, repairing it, tuning it, we get rid of it, replacing it with something new. As consumers, when something breaks, we throw it out and replace it with something new. As business people, when something “breaks,” we throw it out and replace it with something new. When our people don’t perform to our expectations, we replace them with someone new. When our managers don’t accomplish what we want, we replace them with something new. When our CRM system, Sales 2.0 tools, sales training don’t produce what we want, we get something new. We don’t look coach or develop people for improvement, we don’t look at processes and analyze what is wrong, correcting that, we don’t learn from our problems and look at how we can repair, tune, or fix them---even though the path to good results by doing this is probably faster and cheaper than a replacement strategy. We deal with symptoms and don’t address root problems. Fixing the symptom doesn’t eliminate the problem.

We forget the Lone Ranger really didn’t exist. We look for the silver bullet, we believe in the magic solution—whether it is weight loss, or the 10 techniques to get anybody to buy anything. We are susceptible to fads and move from fad to fad. There are no silver bullets. Business and sales is hard work. It requires passion, creativity, discipline, follow through, and learning from our mistakes. There are no shortcuts.

All that counts is results. I’m all for results—they represent the ultimate scorecard. But results are produced from strong processes, disciplined execution, and focused action. Just demanding results without looking at the root issues that impact the ability to deliver results doesn’t produce sustained improvement.

Managers aren’t leading. In all functions, managers are spending more time administering than leading. Managers get things done through their people. Their responsibility is to remove barriers to their people’s performance, coach and develop people to perform at the highest levels, developing and managing the process. Unfortunately, few managers—from the CEO down do a consistent job at doing this. Many don’t know it’s their job, many don’t have the skills to do their job. Without leadership, without management setting the expectations and the example, how can we expect sales people to raise their standard of performance. As my colleague, Christian Maurer, likes to say, the fish rots from the head.

It’s better to look good than do good. We seem to honor image more than true accomplishment. What better example than the cult of personalities led by people like Paris Hilton who have contributed nothing. By contrast, a person like Greg Mortenson is relatively unknown, yet he has had a deep impact on dozens of communities and thousands of people. This translates into our business world. Executives spend more time cultivating their personal image/brand—often hiring personal media consultant, than letting their work speak for itself. A fantastic presentation or elevator pitch, a great PowerPoint is more recognized than a simple whiteboard discussion with a customer.

We are time poor. Nobody is “fat” in business these days. To be competitive and to survive, companies must be lean (remember lean is different depending on where you are). In a world of cutbacks and layoffs, the funds and number of people available to do the work have been reduced significantly. Too few people, too few dollars, and 7/24 availability --- thanks to our Blackberry’s, have given us no time to think, plan, organize. We can only react.

There have been too many breaches of Trust. All the items above, and others I haven’t suggested have created very low levels of trust---within the organization, and even lower levels of trust across different organization. We’ve heard and seen too much focus on your personal brand. We’ve seen too many commitments broken. We’ve seen too many of the top executives rewarded for destroying the organizations they were supposed to lead.

These are problems that pervade business. They are not just sales problems, we see these issues in virtually every part of every organization. They impact how we, as sales professionals, act within our organizations and with our customers. They impact how we are perceived by our own organizations and by our customers.

Sales Force Ineffectiveness, Conjecture On The Future Of The Profession, Part 1 of 3 (in case you came in on the middle of the story)

Sales Force Ineffectiveness, Conjecture On The Future Of The Profession, Part 3 of 3 – What Do We Do?

Sales Force Ineffectiveness, Conjecture On The Future Of The Profession, Part 1 of 3

Let me start with an apology, I will probably gore everyone’s ox in this post. My intention is not to pick on any group of sales professionals, but to start a discussion about the state of the profession and to stimulate ideas on how each of use—as individuals, leaders, influencers might improve the practice of the profession. I’ve actually split this post into two, Part 1 addresses issues that are primarily driven by sales. Part 2 looks at systemic business issues, beyond sales, that impact how we perform. Part 3 focuses on what we can do about these issues, both as organizations and individuals.


I hope you take the time to read and comment on all three. I may just have gone off the deep end and be mumbling nonsense, I hope you correct me (I know you will ;-)

Over the past week, there have been a number of blog posts, comments, and discussions by people like Dave Stein, Niall Devitt, Christian Maurer, Paul McCord and others touching on various aspects of professional selling and why we as a profession are not improving our effectiveness.

Dave Stein lays the groundwork, with a lot of great data on sales training programs, books, blogs, and surveys on sales effectiveness in his post
How Do You Fix Sales Ineffectiveness? If you haven’t read it, you should.

Billions of dollars/euros/yuan/yen are spent by companies in sales training, tools, conferences, seminars and other things to improve the effectiveness of their sales people. As both Dave and Paul point out in their posts, everyday some new book, blog, podcast or other offering promises the “silver bullet” to improving sales performance and effectiveness.

Yet, on the other hand, several months ago, one of my posts,
Why Do Sales People Have Such A Bad Reputation, stirred up a huge amount of controversy and discussion with some people claiming there was little future for sales people, that customers buying processes were changing and the need or contribution of sales people was being minimized.

So where are we, what does this mean, where are we (sales professionals going), where does “fault” lie—if you want to lay blame. Some thoughts, observations:

Sales people have been the butt of jokes, complaints, and stories since through history. (I think this is a vicious conspiracy fostered by lawyers to take the heat off them.) We always will be, so why waste time on this?

The buzz words for professional sales today is “consultative,” “customer focused,” “solutions focused,” “value-based.” If only we became more consultative and customer focused, we would make the buying/selling experience more acceptable and make customer enthusiastic to see us. When I first started selling, in the late 70’s, the buzz words were “consultative,” “customer focused,”……. Nothing’s changed, so clearly we aren’t executing the practices that enable us to be customer focused.

It always intrigues me that we have continued to have this discussion about the importance of being consultative, but we have made no substantive progress in this area. It is not for lack of training programs, books, articles, testimonials. On the one hand, if we are selling and producing results without it, why bother? To those that claim this, I tend to claim you are underperforming your potential. You can sell more---more effectively, increase customer retention and grow your share of customer with consultative approaches---there is plenty of data to support this.

Consultative selling is difficult—it is disciplined, process based, and requires commitment and follow through on a sustained basis. Our focus on now (at all levels) makes this difficult. I think the issue about consultative selling is more about committed leadership than about skills development. Getting sales management to commit to integrating this into their day to day leadership style is the only way we will make substantive progress. Without this, we are wasting time and money.

Sales, by its nature, is about change. We are trying, for good or bad reasons, to get people and organizations to change. Most people are resistant to, or at least uncomfortable with change—they will tend to be resistant to the agents of change, as well. We have to live with this---maybe even revel in it. As a profession, I don’t think we talk about change management or change leadership enough. If I had to make recommendations for skills development, I would recommend something around leading change initiatives.

For too long, we have treated sales as a “black art.” We have let others wrap sales in a “mystique.” Part of this is the act of selling is usually done at a distance from the rest of the organization---it is done at our customers (Duuuuhh!). So people in the organization don’t see what we are doing. With other functions, you see people every day. You see the factories and talk to manufacturing people, you see materials going in one end and products coming out the back. It may or may not be a good process, but at least you can see something going on. You can say this about most other functions.

We as sales people have reinforced this, keeping people out of our accounts (or shepherding them in carefully orchestrated visits). We have also reinforced mystique by being less accountable for forecast accuracy and other things. “Just trust me, we’ll get a purchase order.”

Related to the previous point, we resist treating sales as a disciplined process. Recently, I have been involved in coaching a new Business Development VP. He did not have a sales background, but he was the best candidate for the job. He had a very rich and successful project management background. As you might expect, he was very concerned with his success in this role. I counseled him to think of sales as a specialized application of project management: You establish goals and objectives, you identify the critical activities to meet the goals, you set milestones and schedules to make sure you are making progress. Five months into his new role, he is well on the way to creating one of the most effective sales organizations I have encountered---all because he is applying the discipline, focus, and process orientation from his project management background to the sales organization. He has had to pick up some new terminology, some new skills (prospecting was his biggest worry, but he is doing fantastic).

While this is not new, I think we need to upgrade our thinking and skills around basic project management, process design/management, and systems thinking. All of what we do is a specialized application of those disciplines.

On a related point, much of what has been done and many of the tools in the quality movement, whether it is TQM, Six Sigma, Kaizen, or something else. These offer tremendous capability to improve performance and put discipline to what we execute.

Customers can be more informed and less knowledgeable: The internet, Web 2.0, Sales 2.0 provide the potential for customers/prospects to do much more research and to be both more knowledgeable on your products, competition and alternatives. At the same time, these tools have eliminated market entry barriers for everyone so there is a lot of crap available as well. Immediately, anybody posting a comment, writing a blog, sending a tweet, knowing how to spell www, becomes an authority.

The noise level---the stuff everyone has to sift through is skyrocketing. Will your customers take the time to sift through the pages of garbage and find good information from credible sources? Are we providing good information that is easy for the customers to find and absorb? The answer to both questions is probably not. This creates great opportunity and challenge to all sales people. The bar for performance is being raised by the sheer availability of information. The challenge to correct mis- or bad impressions is even greater. Sales people are going to have to be much more nimble in understanding and leveraging these tools, as well as making sure customers are truly, accurately, and well informed.

We have done too good a job in training our customers to have a low expectation of sales. Over the years, through our performance---pitching products rather than solving problems, focusing on the deal rather than producing value, getting the transaction done rather than building relationships---our customers have become conditioned to a lower level of buying behavior. I’ve been involved in situations where the customer just doesn’t have the time for a “value based” buying/selling process. Combine this conditioning, their natural wariness of sales people, and the fact they are time poor and pressured themselves, it creates great challenges in responding to the customer needs in a value added manner.

Let me stop here. In the next section addresses systemic business issues that overlay these issues, making the job of a sales professional even more difficult.





Wednesday, May 06, 2009

Tips For Selling To Manufacturers


Thanks to the folks at TheCustomerCollective and Oracle for sponsoring a terrific eBook, Selling Through A Slump. It's a great resource for every sales professional. You really should download the eBook and use it as your playbook to help you in growing your sales within different market segments.

I was asked to write the section: Selling To Manufacturers. To tantalize you to read more in the eBook, I've published the tips I recommended below:


Selling to Manufacturers

Yes, we know the story, the manufacturing sector is had hit. Plants are closing, companies are looking to get rid of excess capacity, and no one seems to be buying. Yet manufacturers are our customers, how do we sell to them, how do we find ways of creating revenue in this sector.Let’s look at Dave’s Top 10 Tips For Selling Within The Manufacturing Sector. Actually, there are a couple of ways we can look at it---you may sell products, services, or solutions to help manufacturers design, develop, manufacture and support the products they develop. You may sell components, parts, or subassemblies that are embedded into the products the manufacturer builds. I’ll try to look at both aspects of this challenge:

1. If you normally turn right when walking in your customer’s front door, on your next visit turn left. Too often we call on the same old people all the time. Explore your customer, call on new people, new functions, new divisions. If you sold to the manufacturing/production lines, go to development/engineering, meet them and see if you can help them solve problems. If you normally dealt with a certain engineering group, call on the engineers one cubicle over, you may find new opportunities.

2. Look upstream and downstream in the process flow. If you supply products or services to support the manufacturing (or engineering design/development) processes, look at how you fit into the process. Can you extend your reach upstream or downstream to make the process more efficient and better integrated. If you supply component parts, look at the parts you connect to (Think the hip bone connected to the thigh bone, the thigh bone connected to ……) Can you supply those components or even a subassembly? Can you increase your part count in each product?

3. Look at key/hot issues the industry faces and present how your products/services help the customer address those issues. For example, if you can help make peanut products safe, you are gold! Are there safety issues, environmental, regulatory, compliance issues your customer must address that you can solve? Can you help them with sustainability/energy issues?

4. Leverage plant consolidation and downsizing to your advantage---and to help the customer. In shutting down plants, they have to consolidate operations into fewer facilities. This creates a whole raft of nightmarish problems for the manufacturer. How do they handle the logistics? How do they make their lines more flexible? How do they transition products? How do they do better planning/forecasting for the combined workloads? How do they better manage productivity, quality and efficiency in a smaller number of plants that are doing more. This is a terrific opportunity if you can solve those problems.

5. Make sure they are using your products and services as efficiently and effectively as possible. Are they getting the most bang for the buck/euro/yuan? Audit the use of your products/services to see they are operating and top efficiency. Look at the parts you supply, can you suggest other parts that would be more effective/efficient? This is also a terrific opportunity to look at additional services you might provide (and charge for). It’s also a terrific opportunity to educate your customers about how get the most out of your products/services making them more knowledgeable, productive, and comfortable with your offerings. In the very least, when they start buying again, they will tend to buy what they know and trust.

6. Focus on supply chain efficiency, can you wring out costs in the supply chain/procurement processes? If you supply parts, can you take over more of the logistics management headaches? They probably have gotten very lean and supply chain management may be a big problem. If you supply equipment/systems/services sometimes common tools used by suppliers help dramatically reduce costs and improve efficiency through the whole value delivery chain.

7. Ask your best customers to introduce you to their most important suppliers. If you have created great value and efficiency for your customer, it only serves them to have suppliers that that are achieving the same value and efficiency in their operations---it can reduce your customer’s costs.

8. Look at what is happening to your customers’ customers. Can you identify things that are happening there that present opportunities for your customer to grow their business---which may drive demand for your offerings? Helping your customer grow their business is the surest way to grow yours.

9. Become best friends with the finance/controller functions in your customer. Make certain you understand how they evaluate investments. Make certain you understand ROI/Payback hurdles they apply in their analysis. Look at where they are trying to take cost out of operations or how they are trying to improve the financial position of the company. Make certain you are conversant in their language and lingo.

10. Focus on rich collaboration with your customer. Become an integrated part of their team. If you sell parts, become part of their engineering and design teams to help design better products, reducing their design time and costs. If you sell equipment/systems services, look at how you establish a deeper relationship with the customer.


I’m giving you 11 instead of 10 for two reasons: First, I always try to give my customers more than they ask for. Second, prime numbers have a certain elegance—so I had to end this list on a prime number.


11. Ask your customer how you can help and listen to what they say. Sometimes, that’s all the help they need, but no one ever paid attention.


I believe opportunities abound in the manufacturing segment. Those that take advantage and dig deep will find those opportunities and succeed!
There is a lot more good stuff in this eBook, download it now: Selling Through The Slump

Tuesday, May 05, 2009

What's It Take To Be A Major Account Rep?

The other day, a sales person I had coached a few years ago called me up. He was getting a big promotion to handle one of his company's largest customers. He called to ask me what it took to be an outstanding major accounts rep. The guy was already a great customer focused sales person, so we didn't spend much time on those areas.

I reeled a number of thoughts off the top of my head. I know I've missed some, it would be great to have your ideas. The non-prioritized thoughts were:

    1. The major account rep has to understand the customer's business better than the customer does themselves. He has to understand the customer's markets, their customer's problem/issues, the customer's competition, and other opportunities for the customer to grow and improve their business.
    2. The major account rep understands how the customer's business works, including: the culture and value system of the customer, how they get things done, the formal and informal organizational structure, the strengths and weaknesses, how they measure and manage performance.
    3. The major account rep consistently brings the customer ideas and opportunities to improve their business, growing top and bottom lines, growing their share and presence in the market, and ways for them to achieve their top goals and priorities.
    4. The major account rep effectively brings together people within the account, serving as a bridge for people in the account to communicate with each other. Often the major account rep will know more about what's happening than the people in the account.
    5. The major account rep will consistently seek to expand the breadth and depth of their relationships within the account. She will not only build relationships with executives, but also build relationships at all levels of the account.
    6. The major account rep will serve as an advocate for the customer within her own company. She will make certain any customer's issues are well handled. She will make sure the account's interests are represented as the company builds its strategies, policies and solutions/products.
    7. The major account rep will leverage the resources of his own company to help grow the relationships between the two companies. This includes developing peer relationships between executives in the two companies, and building relationships across all levels of the organization.
    8. The major account rep consistently brings her customer business justified solutions, not only to help the customer meet their goals, but to assure the rep achieves her goals for
      her own company in growing the business. These goals include revenue, satisfaction, margin, strategic projects/initiatives, etc.
    9. The major account rep is a business manager, helping both the account and his own company achieve mutually beneficial business goals.
    10. The major account rep does not waste her customer's time, or the time of the people in her own company. She creates value in every interchange. The rep knows they have achieved this when the customer thinks of the rep as "one of them," and the rep's own company thinks of the rep as "one of them."
    11. The major account rep leaps over tall buildings with a single bound (running starts are OK).

I know I have missed some important things, what would you add?