Harmony at Work: Turning Conflicts into Opportunities for Growth

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I enjoy attending live music venues. Each gifted musician playing their instrument in harmony with others. When the orchestra is in harmony, they produce something much greater than any musician could. At a recent concert, it hit me…what if the senior leadership teams I am helping to scale their businesses focused even more on harmony? What if every department leader and their team delivered their area of expertise in harmony with other departments and not in conflict? If conflict occurs…what if we spent more time training leaders to handle conflict professionally?

Conflict is as natural as the changing of the seasons. But just like every season has its purpose, conflict can bring about growth and transformation when approached with understanding and skill. This is especially true in the workplace, where differing opinions, backgrounds, and goals can easily lead to disputes. Let’s delve into the significance of effective conflict resolution and how, with the right mindset, conflicts can become valuable growth opportunities.

Common Sources of Workplace Conflicts

Communication breakdowns.

Nothing fuels misunderstandings like poor communication. When instructions are unclear or feedback isn’t communicated effectively, it can result in frustration and confusion.

Differences in values or perspectives.

Imagine two colleagues: one values punctuality and strict adherence to deadlines, while the other values flexibility and creativity. Without mutual respect and understanding, such differences can escalate into conflicts.

Competition over resources or recognition.

Two teams vying for the same limited resources or individuals seeking acknowledgment for their contributions can lead to strain and rivalry.

Varying work styles or habits.

Some people need silence to concentrate; others thrive in a bustling environment. These divergent work habits can be sources of friction if not acknowledged and addressed. With the post pandemic work from home model we are seeing even more conflict and lack of communication.

Personality clashes.

Let’s face it: sometimes, we don’t gel with certain people. Without the skills to navigate personality differences, they can lead to persistent conflicts.

One technique that has served several clients is having everyone complete their DISC assessment. We provide training on how to read their assessment and, more importantly, how to read the styles of others and adapt to what the other person needs. We have seen huge breakthroughs on teams who had their leaders complete and share their DISC profiles and openly discuss how they prefer to communicate. Some of my teams post a DISC WHeel in their lunchrooms with all team members’ dominant style identified so if they are going to meet with someone, they can quickly consider how to plan that conversation.

Steps to Effective Conflict Resolution

Conflicts are an inevitable part of human interaction. The difference between a healthy workplace and a toxic one often lies not in the absence of conflicts but in how they are addressed. We need leadership teams playing in harmony to scale revenue, profits, and shareholder value. Here’s a deeper dive into the steps that lead to effective conflict resolution:

Acknowledge the Conflict

Recognizing there is an issue – Just like how the first step to solving a problem is admitting you have one, recognizing there’s a conflict is vital. Whether it’s a noticeable tension in the room or a voiced concern, pinpointing the issue is crucial.

Accepting its importance to all parties involved – Every person’s feeling and perspective are valid. Remember what they are feeling is true to them. For some, what might seem like a minor issue can be a major concern. Understanding and accepting this is central to the resolution process.

As we work with teams, we have several exercises to help unresolved conflict rise to the surface. Sadly, in many cases, unresolved conflicts have been present for years, negatively impacting the team’s performance and harmony of their results.

Understand the Conflict

Listening actively – Active listening goes beyond hearing words. It involves fully concentrating, understanding, and responding to the sentiments behind those words. It requires full attention and the ability to interpret non-verbal cues like body language.

Seeking to comprehend different viewpoints – Every story has multiple sides. Understanding each perspective helps find a middle ground and builds trust among the parties involved.

When working with a senior leadership team, a trained coach and facilitator can lead the discussion to help understand the conflict and both parties’ views are shared. Then, we would like to facilitate discussion and resolution.

One of the instruments we often use to help uncover a lack of trust and unresolved conflict is the 5 Dysfunctions of a team exercise. Building a team that consistently delivers and is accountable requires a foundation of trust and resolving conflicts, impeding productivity.

What are common conflicts we see?

Sales and Marketing over lead quality and quantity
Product Management and Marketing
CFO and CRO due to poor, inaccurate revenue forecasts
Operations and Sales, friction due to on-time shipments, but operations did not have accurate forecasts
CEO and CRO
Tope performing Salesperson and Customer Service
Product Management and Sales, sales not letting product management interview customers
Purchasing and operations, particularly since we have seen supply chain challenges
Sales Managers and Salespeople
Product Design and Product Management

Having helped teams drive explosive growth for over 35 years, I could keep listing the internal conflicts I have seen and needed to help teams resolve and get back in harmony to scale their businesses.

What Conflicts is your team experiencing today?

Open Communication Channels

Promoting a safe environment for dialogue – Conversations about conflicts can be emotionally charged. Have any of your team members stopped talking? Ensuring a safe space, where each party feels they can voice their concerns without fear of retribution is essential.

Using “I” statements to avoid blame – Phrases like “You always” or “You never” can make individuals defensive. On the other hand, “I feel” or “I believe” frames the conversation around personal feelings and perceptions, fostering a non-confrontational dialogue.

Stop leading with “why” questions that put the other person on the defensive, and start using “How” and “what” questions.

We must create environments of psychological safety where teams openly share conflicting views and resolve conflicts. Teams that fail to talk about conflicts are like hearing a performance, but one of the musicians is off-tune.

Find Common Ground

Identifying shared goals or values – There’s always some common ground, no matter how vast the differences. It could be a shared goal, a mutual acquaintance, or a common hobby. This is why we spend 2 days each year developing and refining the strategic plan. A plan that shares what we plan to do and or team why. Highlighting these similarities can act as a bridge over turbulent waters.

Recognizing mutual concerns – Sometimes, both parties might have shared worries leading to the conflict. Recognizing these can pave the way for collaborative problem-solving.

One common ground our clients have is our one-page business plan and the key activities we agreed on as a team we must execute.

Another is defining a performance based culture focused on serving our customers inside and in the marketplace.

Again, we have other team-building exercises to help team members who feel their opinions are worlds apart find common ground to start building a resolution.

Develop Solution Strategies

Brainstorming collaboratively – Instead of a ‘me versus you’ approach, encourage a ‘us against the problem’ mindset. Joint brainstorming sessions can lead to innovative solutions that cater to everyone’s concerns.

Here, we facilitate conversations about topics that impact our teams’ results. We encourage the open discussion of constraints and bring all those politically incorrect secrets into the light of day. We focus on resolving problems and not attacking people or departments.

Evaluating potential solutions together – Once multiple solutions are on the table, weigh their pros and cons. This not only ensures transparency but also collective ownership of the chosen solution.

Implement Agreed Upon Solutions

Setting clear action items – Vague resolutions can lead to further misunderstandings, frustration, and conflict. Ensure that the action items derived from the solution are clear and specific. We ensure when everyone leaves the meeting, we know who owns what, when it will be done, and how we will measure success.

Establishing timelines – Without a clear timeline, even the best solutions can remain unimplemented. Set realistic deadlines and stick to them.

Review and Reflect

Assessing the outcomes – After implementing the solutions, take a step back and evaluate. Do you know if the conflict has truly been resolved? Are there any lingering feelings of discontent?

Here is where an outside business coach adds great value. Often, the team that has lived with internal conflict for years has become tone deaf to a lack of harmony. As a coach, we facilitate discussion, and as we try new approaches, we capture learnings and adapt.

Adjusting strategies if needed – No solution is set in stone. If something needs to be fixed, be ready to adapt and make necessary changes.

Healthy Conflict – The Constructive Side of Disagreement

Not all conflicts are destructive. In fact, some disagreements can catalyze innovation and growth if handled correctly.

Benefits of healthy conflict

A mix of thoughts and ideas can birth innovation.
b. When a team navigates conflict successfully, it strengthens their bond.
c. Personal growth sprouts from challenges, and conflict is no exception.

Differentiating between healthy and unhealthy conflict

While healthy conflict can be a source of growth, unhealthy conflict is draining and detrimental. The difference lies in how it’s managed and the intentions behind it.

Nurturing a culture that embraces healthy conflict

Encourage open communication. Let everyone feel their voice matters.
b. A culture of respect ensures that even in disagreement, everyone feels valued.
c. Equip your team with conflict resolution tools through training and resources.

Tips for Fostering a Conflict-Resolution-Friendly Environment

Lead by example: Management should set the tone. When leaders handle conflicts with grace and skill, it trickles down.
Offer communication and conflict resolution training: Equip your team for success.
Promote team-building activities: Strong relationships can weather storms better than fractured ones.
Encourage feedback and open-door policies: An environment where feedback is welcomed can preempt many potential conflicts.
Recognize and reward collaborative behaviors: Celebrate the team players. It not only boosts morale but also encourages collaboration.

Conclusion and Next Steps

Teams that play in harmony outproduce teams that ignore and have grown tone-deaf to conflicts, negatively impacting the business outcome. Though challenging, conflicts are an inevitable part of diverse workplaces. But with the right strategies and mindset, they can be manageable. In fact, mastering conflict resolution can lead to a more harmonious, innovative, and resilient work environment. Embrace conflicts not as battles to be won but as opportunities for growth.

What leaders on your senior leadership team conflict today?

How long have you experienced unresolved conflicts in your organization?

How would it impact net income and shareholder value to have harmony on your team?

Let’s schedule a call If you would like to identify and resolve conflicts among your team members hurting your performance.

It’s time your team delivered the performance your shareholders desire.

The Power of Talk: How Quality Conversations Drive Business Success

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The art of conversation is as old as human civilization. Yet, as business dynamics evolve, effective communication becomes even more paramount. This article will delve into the fascinating realm of “conversational intelligence” and why having meaningful conversations can be a game-changer for businesses.

Understanding Conversational Intelligence

Conversational Intelligence, in its essence, is the ability to effectively engage in conversations in a manner that creates a shared understanding, builds trust, and fosters meaningful connections. It’s not merely about talking but instead creating a mutual narrative.

While standard communication is about conveying messages, conversational Intelligence digs deeper. It’s about understanding the other party’s perspective, connecting on a deeper level, and co-creating solutions.

Key components of conversational Intelligence

Active listening: This is about being genuinely interested in what the other person is saying rather than just waiting for your turn to talk.
Empathy: Understanding and sharing another person’s feelings, trying to see the world from their perspective.
Clarity: It ensures your message is easily understood without jargon or ambiguity.
Authenticity: Genuine interactions where parties are natural, open, and honest with each other.

The Link Between Conversational Intelligence and Revenue

Conversational Intelligence doesn’t just foster good vibes; it directly impacts a business’s bottom line. At the heart of this is the weight of first impressions. Within mere seconds of interaction, decisions about trustworthiness, competence, and likability are being formed. These snap judgments can significantly sway business decisions, making the initial phase of any conversation crucial. But it doesn’t stop there.

Building trust through effective communication is an ongoing endeavor. When businesses communicate transparently and consistently, clients and partners feel more secure, leading to smoother transactions and long-term loyalty. Diving deeper into the psychology behind purchases, emotions play an outsized role. A conversation that resonates on an emotional level can significantly influence purchasing decisions. Thus, harnessing conversational Intelligence isn’t just about pleasant dialogues; it’s a strategic tool for revenue growth.

However, as we engage with sales teams globally, we consistently find many salespeople need help to have conversations that lead to revenue. Here, we discuss the opening discussions and skills that establish trust and competence early. The skills to identify who might be their ideal customers and engage them in conversations. This also includes engaging current customers in discussions to identify new opportunities to serve them.

We are finding that more salespeople today lack skills like building rapport, building trust, creating business relationships, discovery, and qualifying skills. When these skills are lacking, your salespeople are not having conversations. They have one-way presentations or “pitch slapping” your customers and prospects.

Strategies for Cultivating Conversational Intelligence

To truly grasp the depth and potential of conversational Intelligence, one must delve into the strategies that accentuate its power.

Building Rapport

The foundation lies in building rapport. Imagine entering a room with a familiar face; the conversation often flows effortlessly. That’s the power of connection. We can establish this camaraderie in a business by initiating dialogues with personal anecdotes, humor, or genuine interest in someone’s weekend plans. It forms a friendly preamble to weightier discussions. As I shared in my book Driving Explosive Growth, rapport sets the stage for trust and future talks. We are H2H selling. ( Human to Human) The conversation typically escalates if the other person feels you genuinely have an interest in them, their business, and a desire to help them. If the other person does not feel worthy intent to serve them, the conversation will often end abruptly.

Questioning Techniques

Equally significant is the art of questioning. The questions we pose can determine the depth of understanding we attain. As I share in my sales training and coaching, the very nature of your questions helps to establish trust and build competence. Open-ended questions, like “What challenges did you face during this project?” entice detailed responses, painting a fuller picture. Meanwhile, probing questions act as deep dives into specific areas. Asking, “How did that particular challenge affect your delivery timelines?” can unveil intricate details. As we develop sales discovery and qualifying skills, we focus on asking “How” and “What” questions. For years, sales teams have been trained in what is referred to as the “five whys.” The five whys aimed to help your salespeople gain a deeper, more intimate understanding of the challenges your customers face and gather insights that will be used in a value-based business case to engage with the salesperson based on the value they will deliver. “Why “questions create an internal negative emotional response in customers. Why did that happen? Why did your team allow that to occur? If the customer feels attacked or anxious, the creative part of their brain turns off, and they move into a primal flight or flight mode. Unfortunately, salespeople often experience buyer flight, and the conversation ends and never develops into ways they can serve the customer.

Lastly, reflective questions serve as mirrors. When we reiterate, “So, if I understand correctly, the challenge delayed your project by a week?“ it confirms our understanding and assures the other party that we’re truly listening. From helping sales teams for just under 40 years, one common challenge I see is salespeople listen to reply and not listen to learn. In our active listening courses and courses on discovery and qualifying, we help salespeople listen to understand. We also teach salespeople to listen for changes in the other person’s conversation pace, tone, and word choices as indicators to serve the customer better. In our buyer personality courses, we help salespeople identify the buyer’s personality type and how to converse about that style’s values.

Nonverbal communication

Remember that sometimes, silence speaks louder than words in the realm of non-verbal cues. A client’s subtle shift in posture, a fleeting uneasy glance, or a reserved tone can provide profound insights. These cues, often overlooked, can be the difference between aligning with a client’s actual needs and missing the mark. Post-pandemic, many meetings are occurring virtually with web-based video technology. Salespeople must understand virtual body language and adjust the conversations.

Feedback Loops

Lastly, feedback loops act as checkpoints. Concluding conversations with summaries ensures everyone leaves with aligned perspectives and clear action items. Who is doing what, and by when? Please tell me the following steps and when they will happen. What would you need to do to engage further? Do you have any questions we need to answer before we get together? Is there anyone else we need to bring into this conversation, and when? What does the customer need next? What does the salesperson need next? What will this journey of working together look like? Answering all these questions and more continues to build trust and competence in the salesperson.

Applying Conversational Techniques to Drive Revenue and Increase Gross Margins

Conversational techniques are more than just soft skills; they’re powerful tools to boost revenue.

Sales conversations: not just about the product

In the sales world, the conversation should rarely be about the product. Unfortunately, untrained salespeople lead with features and benefits and rarely, if ever, identify problems their customers and prospects must solve. Sales dialogues are intricate dances where understanding clients’ needs and pain points takes center stage. Instead of rattling off product features, astute salespeople weave stories that position their offerings as solutions, creating a vivid picture of how their product or service can enhance the client’s world.

Handling objections through empathetic conversation

When clients voice concerns or objections, it’s essential to lean into empathetic conversation. Instead of viewing objections as barriers, view them as opportunities to clarify, align, and deepen the client relationship. In our training on handling and not overcoming objections, I ask a simple question: “Do you want to win the argument or feed your family?” By addressing concerns with genuine understanding, salespeople can often turn apprehensions into points of agreement. Salespeople who have a low, close rate rarely identify and handle objections as they occur. As a result, they make presentations and quotes that rarely have the opportunity of closing and turning into profitable revenue.

Upselling and cross-selling using conversational cues

Then, there’s the arena of upselling and cross-selling. With sharp conversational Intelligence, one can pick up cues suggesting a client might benefit from additional products or services. This isn’t about pushing more to sell but about genuinely enhancing value. Often, clients self-diagnose, research, and have conversations with salespeople about price and delivery. Studies now indicate that 33% of buyers would prefer to do their research and not engage with a salesperson. Research also shows over 80% of the sales process is over by the time a buyer engages with a salesperson.

Unlike the 1990s, when buyers had to meet with salespeople as part of their research, today, buyers can often find answers to their challenges in one or two clicks. But are they the correct answers? Top performing salespeople today always seek to understand. Poor-performing people in sales roles are transactional.

Let me share an example from training one of my distributors….

The CEO and leadership team of an industrial supplies distributor were concerned. Their gross margins were lower than usual, failing to hit some of their rebate dollar thresholds. They asked for our help. We assessed their entire sales team and found over 70% of their salespeople were transactional. In other words, if a customer called and said I need to buy 10 QR33479 T’s, they entered the order into the system and gave the customer a future ship date. A few asked if there was anything else. However, their top-performing salespeople asked questions like…We are happy to help you. Can I ask what the application for this part is? How do you plan to use it? What is the environment? What is the cycle time? Will you need us to install it, or have your team been trained?

Buyers doing research do the best they can. However, they often misdiagnose the problem and make buying decisions based on price and availability only to have the problem reoccur or, in some cases, cause more significant issues.

We trained the sales team to conduct conversations that lead to revenue. We taught the team to ask great questions that build trust, demonstrate competence, and ensure the customer has the best possible experience.

Working with the product teams, we also helped salespeople understand other products and services often purchased with what buyers are asking for. Adding these other products increased revenue, the blended gross margins were greater, and their customer satisfaction scores increased by 12%.

Fostering customer loyalty through meaningful interactions

Lastly, fostering customer loyalty goes beyond the initial sale. By continually engaging in meaningful interactions, businesses can cultivate a bond with customers, ensuring they repeatedly return, transforming one-time buyers into brand ambassadors.

Here, we help “sales reps” become “trusted advisors” to customers and prospects. As we share in the courses …you know you are delivering value when the buyer says…you are the only salesperson who asked me that question, and I need to consider that.

Becoming a trusted advisor, a business consultant masquerading as a salesperson happens with each conversation.

Salespeople must develop the conversational intelligence their buyers and prospects value.

Common Pitfalls and How to Avoid Them

Effective communication is as much about avoiding mistakes as it is about executing strategies.

Dominating the conversation

One of the most prevalent pitfalls in business conversations is dominating the conversation. There’s a tendency, especially when passionate or well-informed about a topic or product, to overpower the dialogue. However, communication should be a two-way street. If you’re always talking, you’re likely missing out on essential insights the other person could provide. The solution? Practice active listening, give others the floor, and ask open-ended questions to encourage participation. When we coach salespeople, we want to see a customer conversation ratio of the customer talking over 70% of the time. This can only occur if salespeople are equipped with excellent questions and practice active listening.

Making assumptions

Another trap professionals often fall into is making assumptions. ( And we know what happens when we assume right) Beliefs act like blind spots. For instance, taking a client who understands an industry jargon or acronym can lead to confusion or misinformed decisions. It’s vital to approach each conversation with an open mind, seeking to understand before being understood. Clarifying points and reiterating shared information can curb the risks associated with assumptions.

Information Overload

In today’s data-driven world, there’s also a tendency to overload information. While presenting facts and figures might seem impressive, it can overwhelm or bore the listener if not directly relevant to them. The key is prioritizing and showing only what’s necessary, maintaining engagement. Focus on your solution’s impact and not the features, benefits, and data sheets. Ask the other person …what else can I provide you?… and deliver it.

Missing non-verbal cues

Lastly, missing non-verbal cues can be a silent conversation killer. Communication isn’t solely about words. The unspoken elements — a hesitant tone, averted eyes, or a restless foot tap — often reveal more than spoken words. Observing and paying attention to these cues ensures a comprehensive understanding of the conversation and its sentiments.

Conclusion and Next Steps

Mastering conversational Intelligence is an ongoing journey requiring continuous learning and practice. However, its importance in driving business success is undeniable. By honing this skill, businesses can foster stronger relationships, build trust, and ultimately, see a positive impact on their bottom line. Quality conversation, indeed, holds immense power in the business world.

When your sales team develops a solid conversational intelligence competency, you will experience the following:

Increased Revenue
Increased Gross Profit Margins
Increased Share of Buyer Wallet
Increased Market Share
Increased Customer Satisfaction Scores
Increased Net Promotor Scores
Invitations to New Opportunities Long Before Your Competitors

Let’s schedule a call if you want to understand your team’s current conversational intelligence skills and identify and close conversation sales skills gaps.

The Chain Reaction of a Trained Sales Manager: How It Boosts Your Bottom Line

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Hey there, glad you’re joining me for this vital discussion on the often-overlooked but monumentally crucial topic—sales manager effectiveness. If you’re scratching your head wondering why your talented sales team isn’t delivering as expected, the issue might just lie with your sales manager. So, let’s dig in. We’ll go over some jarring statistics, explore the skills a top-notch sales manager should master, identify common pitfalls, and see how all this directly affects your bottom line.

The Startling Reality: Under-Trained Sales Managers

Let’s start with something that might make you sit up straight: Nearly half of all salespeople have never received formal training in sales skills. Shocking, right? What’s even more staggering is that an even smaller percentage of sales managers have received specialized training in management. It’s like letting someone helm a Boeing 747 just because they can drive a car—utterly dangerous and frankly, irresponsible. This lack of training doesn’t just create underperforming teams; it directly impacts company revenue and can make or break your business.

Skills Crucial for Sales Managers

1. Strategic Thinking and Problem-solving

In an ever-changing marketplace, your sales manager needs to be a strategic thinker. This goes beyond just hitting quarterly targets. It means understanding market trends, identifying customer needs, and aligning these insights with organizational goals. They should also possess exceptional problem-solving skills—turning constraints like budget limitations or high competition into catalysts for innovative solutions.

2. Team Leadership

The sales manager is the proverbial captain of your sales ship. They should steer with authority but also be approachable enough that the team feels comfortable sharing ideas and challenges. An effective leader motivates, challenges, and ultimately brings out the best in their team.

3. Coaching Skills

Coaching is not a one-size-fits-all ordeal. An adept manager knows how to adapt their coaching style to suit the strengths and weaknesses of individual team members. This could mean creating detailed improvement plans or offering targeted skill-building sessions.

4. Talent Scouting and Development

Great managers don’t just manage; they lead and develop. They should be able to spot raw talent and nurture it. This is a two-way street that benefits both the employee, who gains skills and career progression, and the company, which gains a more skilled and motivated workforce.

5. Sales and Pipeline Management

Here’s where the rubber meets the road. Your manager needs to have an in-depth understanding of sales strategies and pipeline management. They need to implement a system that both identifies prospective clients and nurtures existing relationships, ensuring a steady flow of business.

6. Customer Relationship Management

Sales aren’t just about transactions; they’re about relationships. Customer Relationship Management (CRM) skills are key to ensuring long-term business and upsells. The sales manager should be the ultimate brand ambassador who builds and maintains these critical relationships.

7. Performance Metrics Analysis

Data is useless if you don’t know what to do with it. An effective sales manager can translate performance metrics into actionable insights. For example, if the data shows that cold calls aren’t converting, it may be time to shift tactics and focus on warm leads or referrals.

8. Time Management

Time management is more than just a buzzword; it’s a skill that can directly impact sales outcomes. Your manager should be proficient in setting priorities and allocating time and resources effectively to meet goals.

9. Effective Communication

Communication is the lifeblood of any team. The sales manager should be an expert in both verbal and written communication. Whether it’s providing clear instructions, mediating conflicts, or just listening, good communication is non-negotiable.

10. Emotional Intelligence

Finally, the sales manager should possess emotional intelligence. They need to read between the lines, understand team dynamics, and interpret client behavior—all essential for success in the high-stakes world of sales.

Common Mistakes that Untrained Sales Managers Make

1. Micromanagement

Nobody likes to be micromanaged, and in a sales environment, this can be soul-crushing. When a manager focuses on minute details, team members often feel stifled and disengaged. This leads to a lack of creativity and, ultimately, poor performance.

2. Lack of Feedback and Recognition

It’s human nature to seek acknowledgement and approval. A simple “good job” can work wonders for team morale. Managers who fail to provide feedback or recognition leave their team members second-guessing their performance, leading to disengagement and lower productivity.

3. Poor Communication

A lapse in communication can wreak havoc. Whether it’s misunderstanding client requirements or not setting clear team objectives, poor communication can lead to missed opportunities and a loss in revenue.

4. Not Setting Clear Goals and Expectations

An unclear goal is like a moving target—hard to hit. Without clear objectives, team members lack direction, which often leads to lackluster performance and low morale.

Poor Sales Meetings

Do your sales meetings inspire and help grow sales or take valuable selling time delivering no value to your team?

Taking Over the Sale

Inexperienced and untrained sales managers often jump in and take over sales for their salespeople instead of providing coaching and recommendations.

The Brain Drain: Why Top Salespeople Leave

The concept that “People don’t leave jobs; they leave managers” is more than a catchy phrase; it’s backed by data and real-world experiences. In a field where the attrition rate can already be high, the loss of a top-performing salesperson is a severe blow. Studies have shown that replacing an employee can cost up to two times the person’s salary when you consider the recruitment process, training, and the time it takes for the new hire to become fully productive.

When a top performer walks out the door, they’re not just taking their skills and experience with them; they’re taking a part of your revenue and often, they’re taking invaluable customer relationships too. Moreover, their departure can trigger a domino effect, causing other team members to question the work environment and consider their options. This leads to an overall shaky team morale, which in itself is another productivity killer.

In sales, cohesion and morale are not just feel-good terms; they directly correlate with team performance and, consequently, revenue. The impact of a top salesperson leaving underlines the vital role that sales managers play. A well-trained and effective manager doesn’t just retain employees; they engage them, develop them, and give them reasons to stay, which directly enhances the bottom line of the business. Therefore, investing in a manager’s training is not an overhead but a direct investment in revenue stability and growth.

Conclusion

To wrap it up, the influence of a well-trained sales manager can’t be overstated. They’re not just a conduit between the sales team and the higher-ups; they’re the driving force that propels your sales team—and revenue—forward. If you’re looking for a scalable, effective way to improve your bottom line, invest in training your sales manager. The ripple effect of their effectiveness will reach far beyond the sales department, impacting the entire organization. So let’s stop undervaluing this pivotal role and start investing in it for a stronger, more profitable future.

If you would like to understand the skills your sales managers have and identify and close any skills gaps let’s schedule a call.

Why Your Sales Team Isn’t Performing and How to Fix It

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Let’s be blunt: a poorly performing sales team can be the downfall of any business, no matter how great the product or service is. The stark reality is that the sales team is the backbone of revenue generation. But hey, if you’re reading this, you’re not interested in watching your business falter—you want actionable strategies to propel your sales team to stardom. This article delves into what might be holding back your sales team and provides pragmatic steps to enhance their performance.

The Paradigm Shift: From ‘Salespeople’ to ‘Problem Solvers’

Traditionally, salespeople have been viewed as, well, just that—people who sell stuff. It’s time for a paradigm shift. In today’s competitive market, the most effective salespeople act as problem solvers. This means equipping your team with the tools, knowledge, and mindset they need to understand the unique challenges each customer faces. Resources for this transformation could include targeted workshops, mentorship programs, and ongoing education on industry trends and pain points.

Common Sales Skills Gaps That Impact Your Net Income

1. Closing Skills

One startling statistic reveals that a whopping 67% of salespeople never even ask for the order. Imagine going on a date and never asking for a second one because you’re scared of rejection. That’s pretty much what’s happening here. This could be due to a variety of reasons, including the lack of adequate training in closing techniques and a deep-rooted fear of rejection. To tackle this, incorporate role-playing sessions where team members practice different closing scenarios, guided by experienced mentors.

2. Business Value Conversations

In the B2B world, you’re not just selling a product—you’re proposing a change in business operations. Therefore, skills like discovery, rapport building, and qualifying are indispensable. Falling short in this area is like trying to play poker but not knowing when to fold. Teach your team how to ask the right questions that guide a lead through the sales funnel effortlessly.

3. Build and Deliver a Business Case

Your sales team should be able to convey the benefits of your product or service as a solution to a problem, not just as a standalone offering. If your sales rep can articulate how a feature will significantly improve a process for the client, they’re more likely to make the sale. Workshops focusing on crafting compelling business cases can make a world of difference here.

4. Handling of Objections and Negotiation

Resistance is inevitable. Every salesperson will face objections; the key is to not just anticipate them but to address them effectively and professionally. A good salesperson listens to objections as these could be the steppingstones to insights that seals the deal. Run regular role-playing sessions that simulate various objection-handling and negotiation scenarios.

When we train and coach sales teams, we identify the top 5-10 common sales objections and train team members how to handle sales objections not overcome them. When the objection occurs, the salesperson is prepared, and the discussion is conversational not confrontational.

5. Sell Based on Value, Not Price

The market is full of competitors who can easily undercut you on price. Now that most teams have fixed their supply chain problems, everyone has inventory they are hungry( often desperate) to move. But what they can’t do is deliver the unique value that your product offers. Training sessions should focus on how to communicate this value to potential customers convincingly.

When surveyed 86% of C-suite executives said they would meet with a salesperson who could present a business case to improve their bottom-line.

Process to Get More Results from Your Current Sales Team

1. Assessing Sales Skills, Motivations, and Beliefs

Before we can figure out how to fix something, we need to know what’s broken, right? Assessment is like the diagnostic phase, an MRI of your sales team, where you identify the current state of sales skills and beliefs. . It’s not just about asking, “Can they sell?” It’s also about understanding why they sell and what could potentially hold them back from selling more. Does the sales team have a high will to be liked? So high they are not asking great discovery and qualifying questions?

There are many ways to conduct this assessment. One teams often use is the sales manager assesses the skills of salespeople. The trouble with this method is the managers often just look at sales and profit results and not the actual skills to be a top performing salesperson. Sales managers often compare how the salesperson sells to how they sold “back in the day” and not considering the skills needed today.

However, for a more objective view, you might employ third-party assessments or even customer feedback. The assessment instrument we deploy reviews 21 sales skills, competencies and beliefs. Don’t forget about beliefs—sometimes, a salesperson may have all the skills and motivation but still fail due to limiting beliefs like, “I can’t close deals with big clients.” Or “ my customers will buy when they are ready”

2. Identifying Strengths and Skills Gaps

Now that you have the data, it’s time to put it to good use. You’ll likely find that your team excels in some areas while lagging in others. For example, many sales teams have strong product and service presentation skills but lack other skills like discovery, closing and negotiations/ The key here is to be as specific as possible. Instead of saying, “We need to improve sales,” say something like, “We need to work on improving our closing rate for inbound leads.”

Being this specific helps in crafting targeted training modules and application exercises that yield quick and efficient results. You don’t just want to know that your sales team needs to improve—you want to know exactly where they need to improve so you can apply the right remedies. Often we prescribe sales skills training, a formal sales process and sales coaching to close the gaps discovered.

3. Designing Sales Training and Coaching Programs to Close Skill Gaps

Okay, so you’ve assessed your team and identified their strengths and weaknesses. Now what? Now, you train them. But not just any generic training modules will do. What you need is a tailored program that specifically addresses the issues you’ve identified.

For instance, if your team struggles with handling objections, you don’t want to waste time teaching them how to improve their cold-calling skills. Instead, focus on objection-handling techniques, providing them with real-life scenarios and role-play exercises. And remember, training is for imparting new skills, but coaching is for refining those skills. Make sure your program includes both these elements. A good sales training program isn’t a one-and-done experience; it’s an ongoing spaced and stacked process that adapts as your team grows and evolves.

4. Ensuring the Right KPIs Are in Place and Measuring What Matters

KPIs, or Key Performance Indicators, are like the gauges on your car’s dashboard. They tell you what’s happening under the hood in real-time. But here’s the thing—KPIs can be deceptive. Vanity metrics, such as the number of calls made, might look great on paper but do nothing for your bottom line.

What you want are actionable KPIs that give you an accurate picture of your sales team’s health. Think metrics like customer lifetime value, conversion rates, meetings and quotes delivered and deal closure rates. These are the indicators that tell you not just how hard your team is working, but how smart and effectively they’re working. By focusing on the right KPIs, you can make data-driven decisions that lead to tangible improvements.

The Role of Sales Leadership in Sales Effectiveness

Leadership is the cornerstone of any effective team, and your sales team is no exception. Effective leaders don’t just dictate; they coach and inspire. Open communication channels between the leadership and sales reps can help identify issues before they escalate into problems. Leaders should be approachable, open to feedback, and should create an environment that encourages learning and innovation. When we train sales managers and leaders we teach coaching skills, pipeline management skills and how to have a weekly sales meeting that drives growth.

Conclusion

Don’t just skim through this article and forget it. If your sales team is underperforming, you have a wealth of actionable strategies at your fingertips to rectify that. From skill development to leadership approaches, these are not just theories but tried-and-true methods to propel your sales team and, by extension, your business into success.

We recommend assessing the current state of sales effectiveness of your team and developing a plan to strategically improve their skills. It is not unusual the wrong mindset is impeding sales results and lowering profit margins. If that is the case the salesperson needs training and coaching.

How effective is your sales team today?

How much more effective could they be?

What skills and beliefs might be hurting their sales results today?

Let’s schedule a call if you would like to discuss improving the effectiveness of your sales team.

The Blueprint for Success: Building a Performance-Based Culture of Execution

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In the bustling corridors of today’s business world, the difference between a successful venture and one lost in the crowd often boils down to execution. But what does effective execution look like? It’s not about clocking hours; it’s about nurturing a performance-based culture. A culture where teams move with purpose, direction, and precision, maximizing every opportunity.

The Role of Planning and Roadmaps in Execution

The Lifeline called Proper Planning

Think of planning as the architectural blueprint of a skyscraper. Without it, workers might lay bricks, but they won’t necessarily build anything standing tall. Methodical planning, based on market insights and business strengths, creates a clear path to tangible goals.

Crafting Transparent Roadmaps

Roadmaps are not just about steps; they’re about clarity. They break down a company’s vision into actionable tasks, timeline expectations, and milestones. For a software development company, this could range from initial idea brainstorming and prototyping to beta testing and final rollout. Our goal is to get all the leaders and all the team aligned to the plan.

Gleaning from the Past

By dissecting past strategies—celebrating wins and analyzing missteps—businesses get a compass for future direction. It’s akin to sports teams reviewing game footage to improve strategy for upcoming matches.

Voice of Customer Research

Just as we learn from the past, we can gain valuable insights about our customers and targeted new customers by conducting voice of customer research. Writing strategy without customer insights is criminal. Plans developed with inward facing data rarely deliver explosive growth. We must understand, capture, and act on the insights we gather in voice of customer research.

The Power of Alignment and Regular Checkpoints in Execution

One Team, One Dream

Unifying the team behind a singular company vision is paramount. Weekly workshops, detailed briefings, and inclusive brainstorming sessions can foster a collective sense of purpose, mitigating the risk of isolated silos of work.

Regular Checkpoints: The Heartbeat of Execution

These are the moments to pause, reflect, and recalibrate. Are we on track? Are there unanticipated hurdles? Regularly answering these questions keeps the team agile and prevents stagnation.

Different Checkpoints in Execution

For any company or organization, execution is akin to navigating a ship through a vast ocean. While having a clear destination (or goal) is essential, periodic checks ensure the ship doesn’t veer off course. These checks, or checkpoints, are the inflection points where businesses measure, reassess, and fine-tune their strategies. Let’s delve deeper into these critical junctures:

Daily: Implement Daily Huddles

What are we focused on today. What did we say we would do yesterday and was not completed? What is our plan to catch up? What help might team members need each day. We encourage these daily huddles to be standing meetings were each team member quickly shares their focus for the day and any activities that do not align with our team goals are addressed immediately.

Weekly: The Pulse Checks

When we talk about weekly checks, it’s reminiscent of a doctor’s routine: quick but essential. The weekly checkpoints ensure the heart of the organization—its strategies and tasks—is beating as it should.

Team Pow-Wows

These gatherings are not just routine meetings. They’re the hub of brainstorming, sharing, and strategizing. For example, a marketing team might discuss the performance of a week-long campaign, while a tech team could discuss bug fixes. These sessions foster a sense of camaraderie and collective ownership.

Leadership Scrutiny

Weekly leadership meetings are where the broader view comes into play. Beyond analyzing KPIs, it’s crucial for leaders to understand the narrative shaping those numbers. If sales dipped one week, was it due to an external factor like a holiday, or was there an internal challenge to address?

Monthly: The Progress Reports

Each month symbolizes a significant chunk of the business quarter. Thus, monthly checkpoints are less about micro-management and more about ensuring alignment with quarterly and yearly goals.

KPIs & Market Pulsars

At this juncture, it’s pivotal to gauge the company’s health via KPIs. But alongside, there’s a need to stay attuned to market ‘pulsars’ or signals. For instance, if a rival company launched a groundbreaking product, how did it affect our sales or market perception?

Departmental Collaboration

Monthly reviews should also be spaces of inter-departmental collaboration. If the R&D team has a new prototype ready, how can marketing leverage it? By promoting collaboration, businesses can ensure a seamless flow of information and integrated planning.

Quarterly: The Strategy Reassessments

Every quarter represents a business season, and it’s time for a more holistic assessment.

Peek at the Horizon

How close or far are we from our annual objectives? If a particular product line underperformed, can it be revamped in the next quarter, or should it be shelved? These questions guide the direction for the forthcoming quarter.

Economic and Industry Forecasts

It’s also the time to zoom out and view the broader industry landscape. Suppose regulatory changes are anticipated in the next quarter, or there’s a global event (like a tech summit) that could influence industry dynamics. In that case, businesses need to strategize accordingly.

Break through Constraints

We coach our clients to work on constraints and challenges during their quarterly meetings. We often set out with strong plans to grow and once we start executing our strategies and tactics we discover constraints. Quarterly meetings are a great venue to discuss and plan to remove constraints.

Yearly: The Grand Overview

The annual review is the grand finale of checks—the time to celebrate, reflect, and rejuvenate. It’s a time to review what we learned and identify data we need to create a strong plan for the next year.

Reflect and Celebrate

Every achievement, big or small, deserves recognition. Whether it was entering a new market, achieving record sales, or enhancing customer satisfaction, the annual review is a moment to cherish these milestones.

The Road Ahead

After reflection comes projection. Based on the year gone by, what will the next year look like? This isn’t just about numbers but also about envisioning new opportunities or areas of growth.

Visionary Gaze

The 5–10-year plan might seem distant, but it’s the beacon guiding the yearly plans. The annual review is a time to ensure that the business remains aligned with this long-term vision. For instance, if the ten-year goal involves sustainability, are the yearly strategies echoing that commitment?

Big Harry Audacious Goal ( BHAG)

What is your revenue target? Are you $15 million today and want to reach $60 million in five years? Then $60 million is your BHAG. Having led numerous strategic planning sessions stating the BHAG helps build our yearly , quarterly and monthly key thrusts.

Leadership’s Role in a Performance-Based Culture of Execution

Leadership is the compass that guides a ship through both calm and tumultuous waters. In a performance-based culture of execution, leadership doesn’t merely dictate direction; it sets the tone, pace, and ethos of execution.

Leadership Team Trust

As discussed in the 5 dysfunctions of a team the key foundational element of high performing teams is trust. The leadership team must have a high trust and the psychologically safety to discuss views to drive to the desired plan outcome. Unfortunately, as we assess leadership teams distrust is the default today. 30 years ago, trust was the default. Leaders must strategically build trust and not assume it is present today.

The Critical Role of Leadership in Driving a Culture of Execution

Being at the helm, leaders model the behavior they expect. If they prioritize execution and demonstrate commitment to results, it cascades down. It’s not just about hitting targets but setting a culture where excellence is pursued relentlessly. Leaders also foster an environment where teams feel empowered to take action, innovate, and contribute to the company’s overall vision.

The Importance of Leadership Tracking KPIs and Discussing Trends

Leaders need to be adept at understanding the story behind the numbers. Tracking KPIs isn’t a mere exercise in data analysis; it’s about deriving actionable insights. When a leader pays attention to these key indicators, it sends a clear message about the value of data-driven decision-making. Regular discussions on these trends keep teams aligned and aware of broader company goals.

Leadership’s Responsibility in Addressing Market Trends and Constraints

The external business landscape is ever evolving. Leaders must have a keen eye on market shifts, ensuring the company remains agile and responsive. By understanding and proactively addressing these trends and constraints, leaders safeguard the company’s present and chart out a more resilient future.

Conclusion

A culture of execution is not just about getting things done; it’s about getting the right things done, in the right way, at the right time. It’s a journey that demands meticulous planning, team alignment, and proactive leadership. For businesses eager to leave an indelible mark, remember it’s not just about the destination, but the excellence of the journey. Let the culture of performance-based execution be your compass.

If you would like to improve your teams’ execution and increase the skills of your leaders, let’s schedule a call and discuss Scaling Up.

Selling Your Business? How to Create an Exit Strategy that Pays Off

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When it comes to the lifecycle of a business, an entrepreneur’s exit can be just as crucial as the entry. An exit strategy, in essence, is the planned culmination of your journey as a business owner. It involves mapping out how you will sell or diminish your involvement in your business, ensuring you get the optimal return on your investment.

Why is having an exit strategy indispensable? Beyond just securing a profitable sale, a well-structured exit strategy ensures the continuity of your business legacy, facilitates smoother transitions for employees, and lays the groundwork for the business’s continued growth under new leadership. As we progress through this article, we’ll dissect the nuances of the buyer’s mindset, touch upon the perspectives of private equity and venture capitalists and delve deep into business valuation intricacies.

Understanding the Buyer’s Perspective

Every successful sale starts by understanding the buyer. By anticipating their concerns, questions, and expectations, you can preemptively address them, positioning your business in a favorable light.

Financial Performance

Your balance sheets, income statements, and cash flow statements will be under scrutiny. Buyers will be looking for evidence of profitability, consistent growth, and financial stability.

Competitive Positioning

Does your business have a unique edge in the market? It might be a patented technology, a recognized brand, or strategic partnerships that set you apart.

Market Opportunities

Growth potential is a massive lure. Buyers are more likely to be interested in businesses that have tapped into emerging markets or niches with significant upside potential.

Strategies Tip

One way to woo potential buyers is to offer a detailed forward-looking business plan. Highlight projections based on concrete strategies, ensuring they understand the growth potential at hand.

The Private Equity and Venture Capital Perspective

PE and VC firms have a slightly different vantage point. They’re on the lookout not just for a business, but an opportunity—typically one with a significant return on investment.

Growth Potential

High on their checklist is the scalability of the business. Can it grow exponentially without a parallel increase in operational costs?

Strong Management Team

Beyond just the founder or owner, PE and VC firms analyze the strength and cohesion of the entire management team. They look for leadership that can navigate challenges and capitalize on opportunities.

Scalable Business Model

Efficiency in scalability is a golden ticket. If the business can expand without corresponding cost hikes, it’s more appealing.

Steps to Prepare

Ensure your company has systems in place that can handle rapid scaling. This includes robust operational processes, scalable technology solutions, and a team trained to handle growth spurts.

Factors that Influence Business Valuation

In any business sale, understanding valuation is paramount. Valuation doesn’t merely account for the tangible assets or the numbers currently present on a balance sheet. Instead, it delves into an intricate combination of current performance, future potential, industry trends, and inherent risks. Although many would make you believe your value is a multiple of EBITDA, there are many more considerations.

Understanding Business Valuation

Business valuation is the process of determining the economic worth of a company. It’s an essential metric for a variety of reasons, from sales and mergers to restructuring and taxation. While several methods are available to value a business—like the income approach, market approach, and asset-based approach—the goal remains the same: to provide an owner with a clear picture of their company’s worth in the current market landscape.

Factors that Can Increase the Value of Your Business

Recurring Revenue

Stable and predictable income streams, such as those from subscription models or long-term contracts, are immensely attractive to potential buyers. They indicate steady business, offering future stability. For instance, software-as-a-service (SaaS) companies with yearly subscriptions usually hold a higher value than those operating on one-time purchase models because they guarantee future revenue.

Increasing Gross Margins

Businesses that increase revenue and increase gross margins are much more attractive to buyers and investors.

Diversified Customer Base

Relying heavily on a handful of clients can be a precarious position. Buyers favor businesses that have a broad clientele, mitigating risks associated with potential revenue loss. Imagine a company with 80% of its income from one client. If that client leaves post-acquisition, the business’s value plummets.

Strong Brand Reputation

A recognized and respected brand acts as an assurance of quality, trust, and business continuity. Consider how companies like Apple or Tesla command premium prices and customer loyalty, thanks to their robust brand reputations.

Rembrandt in Your Attic

What is your distinctive competence that means the most to your buyer? Is it your region of the country, your systems and processes, your diversified customer network? Each business has something of tremendous strategic value to the right buyer. When we find the Rembrandt in your Attic, we win much higher sale multiples.

High Net Promotor Score and Customer Satisfaction

We often serve buyers and investors as they complete their due diligence. Companies that have a high Net Promotor Score and high customer satisfaction are much more attractive and much more valuable.

Factors that Can Decrease the Value of Your Business

Customer Concentration

As mentioned above, if your business draws a significant portion of its revenue from just a few clients, it’s perceived as a high risk. Diversification is always favored over concentration.

Dependence on the Owner

If the business operations and strategies are heavily reliant on the owner’s presence, skills, or relationships, it poses a considerable risk for a potential buyer. A business should be able to operate and thrive irrespective of its owner, thanks to a competent team and established processes. One question I often ask owners planning to sell their business in 3-5 years: Do you work 12 hours a day or 12 hours a week. If you work 12 hours a week your business is much more attractive and valuable.

Declining Industry Trends

Being part of a sunset industry or one facing disruptions can negatively impact valuation. For instance, traditional print media businesses saw decreased valuations with the rise of digital media.

High Cost of Sale

Companies with a low cost of sale and have increasing revenues and gross profits are valuable. We often conduct a net profit by customer analysis that includes your current cost of sale. Typically, 200% of your net profit comes from 20% of your customers and 20% of your customers leak profits each time you ship. We recommend running this analysis and taking corrective measures before you wish to exit.

Strategies to Enhance Business Value Prior to a Sale

Operational Efficiency

Streamline processes to maximize productivity and minimize costs. Consider adopting modern technologies or methodologies that can reduce operational overheads.

Expand Product/Service Lines: Diversifying the offerings can not only tap into new revenue streams but also attract a broader clientele.

Invest in Talent

A skilled and dedicated workforce is a valuable asset. By ensuring you have a team that can drive the business forward without the owner’s day-to-day involvement, you make your business more attractive to buyers. We leverage top grading to ensure you have a team of A players .

Debt Management

While leveraging is common in business, excessive debts can be a turn-off for potential buyers. Aim to maintain a healthy debt-to-equity ratio.

Engage in Strategic Partnerships

Collaborations or partnerships can open up new markets, offer access to new clientele, or even provide technological advantages, thereby bolstering the business’s worth.

Customer Retention Strategies

A loyal customer base, especially one that’s been retained over a long duration, can significantly enhance value. Implement loyalty programs, prioritize customer service, and ensure high product/service quality to keep your customers coming back.

Implement Scaling Up

Our goal is to increase the value of your business. We focus on four key decisions: People, Strategy, Execution, and Cash. Working with your team we create a plan to drive explosive growth and increase your business value.

Conclusion

Your exit from your business is a significant milestone. It’s the culmination of years, perhaps decades, of hard work, passion, and dedication. ( Blood sweat and tears) As we’ve seen, the difference between a mediocre exit and a spectacular one often boils down to planning. If we are asked to help your team three to five years before your planned exit we can drive explosive growth.

If your vision is to have a legacy business and leave it to your children and grandchildren ( my personal favorite) the same rules apply. We want to make your business strong and positioned to grow faster than industry averages.

To all entrepreneurs, remember that in the world of business, it’s not just how you start, but how you finish. An exit strategy isn’t a “nice-to-have” – it’s a necessity. With foresight, diligence, and the right strategies, you can ensure that your exit is not just profitable, but also honors the legacy of what you’ve built.

If you are considering exiting your business in the near future let’s schedule a call and we will share our strategic exit planning assessment and put you on a path to a strong exit that pays off.

The New Sales Playbook: Thriving in the Post-Pandemic Hybrid Sales Environment

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The global landscape of sales is different from what it used to be. In this new era, marked by the aftermath of a pandemic, the post-pandemic hybrid sales environment has emerged, intertwining the virtual with the physical. For sales professionals, the mandate has become clear: adapt to this changed scenario by refining strategies and sharpening specific skill sets to resonate with today’s demands. Unfortunately, as high as 60%, based on our assessment data, salespeople have yet to adapt their skills to a hybrid sales environment.

The Shift to a Hybrid Sales Model Post-Pandemic

Historically, sales thrived on handshakes, face-to-face meetings, and in-person presentations. The pandemic, however, redefined these norms. We witnessed the birth of the hybrid sales model—a synergetic blend of traditional face-to-face sales and remote, digital interactions.

A global crisis, in the form of COVID-19, made this shift unavoidable. Traditional sales interactions faced significant challenges with lockdowns, travel bans, and social distancing norms. However, even as we gradually return to some semblance of normalcy, the hybrid model’s advantages are hard to ignore. It offers unparalleled flexibility, extends reach beyond geographical confines, and can be more time and cost-efficient.

Yet, this evolution isn’t without challenges. The digital shift requires mastering new technologies, guaranteeing effective communication over virtual platforms, and ensuring that client relationships remain robust without the regularity of physical meetings.

Salespeople who still need to adapt and build virtual selling skills are struggling. As I shared in one post, salespeople who have not made virtual selling skills are basically selling naked, like in the story of the emperor’s new close.

The Top Sales Skills for Success in a Post-Pandemic World

Navigating the sales domain in a post-pandemic world demands more than just conventional tactics; it calls for a blend of old-school principles, novel strategies, and an adaptive growth mindset. Here are the most sought-after skills in this hybrid sales era:

Building Business Relationships

Even in a digitized environment, the human-to-human connection remains at the core of the business. The relationships forged with clients go beyond transactions:

Personal Touch in Digital Interactions

It’s not about replacing face-to-face meetings but about replicating their essence in a digital context. This could mean using video calls more often, remembering personal details about clients in your CRM, or even sending a quick note on special occasions.

Leveraging Technology

Tools like CRM software can remind salespeople about follow-ups, ensuring no leads fall through the cracks. In addition, analytic insights can indicate the best times to reach out or offer personalized suggestions to clients. As CRMs add AI functionality, the CRM will recommend actions for sales managers and salespeople.

Value Addition

In the post-pandemic era, relationship-building means being an active partner in a client’s success. This involves understanding their challenges and proactively suggesting solutions—even when there’s no immediate sale involved.

Identifying Goals and Challenges

As I shared in my book, Driving Explosive Growth, human-to-human interactions will become the determining factor for sales teams who reach and surpass their goals and those that miss their sales plan again. More salespeople missed the plan that was achieved in 2022, and we do not expect 2023 to be much different.

Salespeople trained in building business relationships know how to build rapport and know industry trends and everyday struggles their customers have. They have been trained to use discovery and qualifying questions to get below-the-surface discussions with buyers and truly understand the problems to be solved.

Virtual meetings, building rapport, and asking great discovery and qualifying questions are essential for salespeople today. Opportunities they once would see as they walked around prospects’ facilities now must be heard from insightful questions that demonstrate competence and build trust.

Discovery and Qualification

Recognizing potential clients and understanding their needs is an art in some companies and a science in market-leading sales teams. We spend much training and coaching helping salespeople develop strong discovery and qualifying questions today.

Digital Profiling

In a world with extensive digital footprints, salespeople can use social media, company websites, and online reviews to get a preliminary understanding of a lead. Some sales teams are using sales AI tools.

Active Questioning

Instead of generic questions, salespeople should aim for specific queries that uncover needs. For instance, instead of “Do you need a new software solution?“ one might ask, “How are you addressing your current data analytics challenges? “By the nature of your questions, you can demonstrate competence and build trust.

Continuous Learning

Staying updated with market trends and potential client challenges becomes crucial with rapidly changing industry landscapes. Often teams leverage the voice of customer research to understand customer satisfaction and gain insights into any unresolved problems customers have today. Voice of customer research helps identify current challenges your customers and markets are experiencing.

Empathy and Active Listening

In a world bombarded with information, genuine understanding becomes a premium commodity. Unfortunately, too many salespeople ask questions, listen to reply, and do not learn. Active listening is critical to becoming the trusted advisor clients want and need today, and it is a skill that can be learned.

Emotionally Intelligent Responses

Recognizing and acknowledging a client’s emotions or frustrations can create a rapport. For instance, understanding the added stress businesses may have faced during the pandemic and tailoring conversations accordingly.

Feedback Integration

Active listening isn’t just about the present conversation. It’s about integrating feedback from past interactions. If a client mentioned a challenge in a previous conversation, bringing it up in subsequent discussions showcases genuine interest.

Digital Etiquette

On virtual platforms, active listening might involve non-verbal cues such as nodding or using reactions on platforms like Zoom.

Customer Personality Profile

Salespeople today must have solid situational awareness and be able to identify the personality style of their prospects. We teach sales teams how to adapt their presentations based on DISC,

Acting like the CEO of Their Region of Responsibility

The modern salesperson needs to be a strategist, viewing their portfolio with an owner’s lens. Time is one of their significant assets, and current salespeople must be able to allocate time based on opportunity. They must make decisions based on ROI and consider the cost of sales.

Data-driven Decision Making

This involves closely monitoring metrics like lead conversion rates, client feedback scores, and return on investment for particular strategies. They review what customers buy and recommend other products based on what similar customers purchase.

Risk Management

As a CEO would for a company, salespeople should be adept at anticipating challenges—be it potential objections from a client or external market shifts—and crafting contingency plans.

Stakeholder Management

Just as CEOs manage various departments, salespeople must liaise with delivery teams, product managers, or finance departments to ensure seamless client experiences.

Collaboration – Building and Delivering a Business Case

The essence of sales is solving a problem. Crafting a compelling narrative around this can sway decisions. As we assess sales effectiveness, we often find salespeople need to improve or have a low figure-it-out factor. We must upskill salespeople to build and deliver business cases, not just product features and benefits.

Cross-functional Partnerships

Collaborating with technical experts or product teams can lend more credibility to a pitch, especially in B2B sales scenarios.

Storytelling

Data is essential, but stories resonate. Whether it’s a success story of a past client or a hypothetical scenario illustrating the impact of your product/service, weaving a story can make your case more compelling.

Create Customer Champions

When salespeople are skilled in collaboration, the customer feels ownership in the plan and becomes an internal champion. Salespeople who pitch slap their customers lose that critical step of cooperation.

Negotiation and Closing

This phase is where the rubber meets the road. Mastery here dictates success. Unfortunately, our sales effectiveness assessment data shows less than 14% of salespeople have received negotiation training. As we learned in a buyer study, over 75% of professional purchasing agents have been trained in negotiation tactics, which often leads to a mismatch of negotiation skills. If salespeople do not receive negotiation training, they leave money on the table that could have flowed to your profits.

Understanding the Client’s Position

Often, negotiations stall because of unseen constraints on the client’s side. Unearthing these—be it budgetary restrictions, past experiences, or internal processes—can lead to more fruitful discussions.

Win-Win Solutions

Negotiation isn’t about victory but alignment. Instead of hard discounts, offering extended support or training could sweeten the deal for the client without compromising the price.

Professionally Handling Customer Objections and Not Trying to Overcome Them.

Top-producing salespeople know customers’ top objections and are prepared to handle them professionally. Our sales skills training teaches salespeople how to handle objections and not try to overcome them professionally.

Selling Based on Value Delivered, Not Price

In the information age, competing on price is a race to the bottom. The focus needs to shift. As we assess sales effectiveness in teams, we find many sales teams sell based on price and not the value their product or service delivers.

Highlighting Long-term Benefits

A slightly pricier solution might offer benefits that, in the long run, lead to cost savings or greater value for the client.

Building Trust

Often, resistance to higher prices stems from a lack of trust. Regular client testimonials, case studies, or pilot projects can bolster confidence.

Building a Business Case

Top-producing salespeople act as trusted business advisors and know how to build and present business cases to close the sale.

Acting as Consultants Rather Than Sales Reps

Today’s clients are looking for partners in growth, not just vendors. I want you to know that clients wishing to have trusted advisors share insights not found on your company website.

Offering Tailored Solutions

This might involve understanding a client’s industry in-depth, recognizing trends, and offering resonating solutions.

Educative Approach

Sometimes, it’s about educating clients about potential challenges they still need to recognize and showcasing how your product/service can address them.

In essence, the post-pandemic world has upped the ante for salespeople. It’s no longer just selling a product or service; it’s about offering holistic solutions, building genuine relationships, and navigating the nuances of the digital world with finesse.

Conclusion

The future of sales in a post-pandemic world isn’t just about selling—it’s about understanding, adapting, and providing genuine value. As the line between physical and virtual continues to blur, mastering these skills will not only be advantageous but also imperative. The message for sales professionals gearing up for this new era is clear: refine, relearn, and reignite your sales strategy—the future promises for those ready to embrace it.

Do your salespeople have the skills your customers and prospects expect today?

How effective is your sales team today?

How much more effective could your sales team be?

What impact would higher close rates at higher gross margins have on your bottom line?

Let’s go ahead and schedule a call if you’d like answers to questions like the above and to improve your sales effectiveness for today’s customers.

The Ultimate Guide to Unlocking the Value of Your Manufacturing Business for Maximum ROI

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As a manufacturing business owner, it’s crucial to unlock the full value of your business before selling or seeking investment. To do this, you need to maximize your company’s return on investment (ROI) and ensure that it’s well-positioned for a successful future. In this article, we’ll cover various strategies to help you achieve maximum ROI, including conducting a business valuation, focusing on EBITDA improvement, streamlining operations, reducing costs, investing in growth opportunities, diversifying your customer base, building a strong management team, and developing a succession plan.

Conduct a Business Valuation

A business valuation is essential for understanding your company’s worth and identifying areas for improvement. It helps you negotiate better deals with potential buyers or investors, and it allows you to monitor your progress as you implement strategies to increase the value of your business.

There are several methods for valuing a manufacturing business, including:

Asset-based approach: Calculates the value of the business based on its net assets, which include tangible and intangible assets minus liabilities.
Income approach: Estimates the value by projecting future cash flows and discounting them back to their present value.
Market approach: Compares your business to similar businesses that have recently sold, using multiples like revenue, EBITDA, or net income.

To prepare for a valuation:

Gather accurate and up-to-date financial statements and records.
Analyze your company’s historical financial performance to identify trends.
Engage an experienced business valuation professional to ensure an accurate assessment.
Sales skills assessment – how skilled is your sales team? How effective are they and how much more effective could they be?
Voice of Customer Research– why do customers buy from you? Here we are helping determine the Rembrandt in your attic.

Focus on EBITDA Improvement

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a key financial metric used to evaluate a company’s operating performance. It’s important in business valuation because it provides a clearer picture of a company’s profitability, excluding the effects of financing, accounting, and tax decisions. A manufacturing company might improve EBITDA by investing in automation technology to increase production efficiency, reduce labor costs, and minimize waste.

To improve EBITDA:

Increase revenue by expanding your product offerings or targeting new markets.
Improve operational efficiency to lower production costs.
Minimize overhead and administrative expenses.

Streamline Operations

Efficient operations are crucial for maximizing the value of a manufacturing business because they lower costs, reduce waste, and improve productivity. A manufacturing company might implement a just-in-time inventory system to minimize stock levels and reduce carrying costs.

Strategies for Streamlining Manufacturing Operations

Adopt lean manufacturing principles to eliminate waste and enhance efficiency.
Implement automation and advanced manufacturing technologies to improve production processes.
Optimize supply chain management to reduce lead times and inventory costs.

Reduce Costs and Increase Profit Margins

Effective cost management is essential for increasing a manufacturing business’s value because it directly impacts profit margins and the bottom line. A manufacturing company might invest in energy-efficient machinery to lower energy consumption and reduce utility bills, ultimately increasing profit margins.

Strategies for Reducing Costs and Increasing Profit Margins

Implement cost-saving initiatives like energy efficiency programs or waste reduction efforts.
Negotiate better terms with suppliers to reduce material costs.
Consolidate and optimize your vendor base to achieve economies of scale.

Invest in Growth Opportunities

Investing in growth opportunities is vital for increasing a manufacturing business’s value because it demonstrates the company’s potential for future success and scalability. A manufacturing company might develop an innovative product that addresses a market need, leading to increased sales and market share.

Strategies for Identifying and Investing in Growth Opportunities in a Manufacturing Business

Conduct market research to identify emerging trends and untapped markets.
Develop and launch new products or services to meet evolving customer needs.
Expand into new geographical markets through organic growth or strategic acquisitions.

Diversify Your Customer Base

A diversified customer base reduces reliance on a few key customers and minimizes the impact of customer loss, ultimately increasing the value of your manufacturing business. A manufacturing company might expand from serving only the automotive industry to providing components for aerospace and electronics industries, thereby diversifying its customer base.

Strategies for Diversifying a Manufacturing Business’ Customer Base

Target new customer segments or industries.
Offer customized solutions to attract a wider range of clients.
Develop strategic partnerships or collaborations to access new customers.

Build a Strong Management Team

A strong management team is vital for increasing a manufacturing business’s value because it demonstrates the company’s ability to execute strategies, make informed decisions, and adapt to market changes. A manufacturing company might implement a comprehensive leadership development program to groom high-potential employees for management positions, ensuring a pipeline of talent for the future.

Strategies for Building and Retaining a Strong Management Team

Hire experienced professionals with proven track records in your industry.
Invest in employee training and development programs.
Create a positive work culture that encourages employee retention and motivation.

Develop a Succession Plan

A well-defined succession plan is essential for increasing a manufacturing business’s value because it ensures continuity and stability, reduces the risk of disruption, and demonstrates to potential buyers or investors that the company is prepared for the future. A manufacturing company might establish a mentorship program where senior leaders mentor high-potential employees, preparing them for future leadership roles and ensuring a smooth transition.

B. Strategies for Developing a Succession Plan for a Manufacturing Business

Identify potential successors for key leadership positions.
Develop a comprehensive succession planning process that includes mentoring, training, and development programs.
Continuously evaluate and update the succession plan to account for changes in the business environment or organizational structure.

Increase Multiple

Here potential buyers and business valuation experts will share common industry multiples of EBITDA. If you take an offer based on this standard multiple you are often leaving millions on the table. One industry I served was a three multiple of EBITDA, another was four. However, we need to improve your multiple by finding that Rembrandt in your attic as I shared in a recent video. We ask questions then develop a plan to make your business much more valuable to buyer’s and investors. We need to discuss questions to help us understand your value today and plan to increase your value in the future.

Questions for Identifying Areas of Value and increasing your Multiple include

Do you as the CEO need to work 15 hours a day of 15 hours a week?
Does your leadership team meet regularly for strategic planning?
Are there documented systems in place and proof your team follows them?
Do you set and track key performance indicators by department?
Is your gross margin increasing as a percentage of revenue as revenue increases?

Conclusion

Unlocking the full value of your manufacturing business before selling or seeking investment is essential. By conducting a business valuation, focusing on EBITDA improvement, streamlining operations, reducing costs, investing in growth opportunities, diversifying your customer base, building a strong management team, developing a succession plan, and strategically increasing the multiple you can significantly increase the value of your business. Now is the time to act and implement these strategies to maximize your company’s potential.

If you would like to discuss your business and ensure you are pulling the right levers to drive shareholder value, let’s schedule a call and discuss strategies to increase the value of your manufacturing business.

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