Improve Sales; You Can’t Have Poor Sales Performance because of “The Economy” Alone


The first quarter of each new year often starts out as a struggle for sales teams to achieve their new goals. Your sales team has received a new and bigger goal, (there’s a high probability they missed last year’s goal) and now your team’s sales performance is poor or put another way; it is sick. When you ask your salespeople why you will often hear them rationalize  since “the economy” is bad  their sales performance is also suffering. Assuming your team’s poor sales performance to goal is solely based on a “poor economy” is like believing if you go to bed with a wet head you will wake up with the flu…it’s simply not true.

As I shared in a previous post it is not just a sales training problem, or a sales management problem it is often so much more. Before we can clearly diagnose why your sales team is experiencing poor sales performance we need to identify a squash myths your team may believe.

I was in the line at Walgreens to receive my annual flu shot and I could not help but listen as people in line shared myths that they believed to be true about the flu and the flu shot it’s self. This reminded me of the myths I have heard over the years about poor sales performance and I wanted to dispel some of the reasons people use to rationalize poor sales performance.

I remember my mother telling us kids that if we went to bed with a wet head we would wake up sick. So we made sure we completely dried our hair before we went to sleep each night. We believed this to be true so we took action based on that belief. The strange thing is we still got sick on occasion and on those nights we did go to sleep with a wet head, we did not wake up sick the next day. (our hair may have had a mind of its own in the morning but we were not sick) However now as a parent I find myself sharing this myth with my children as if it were true. If you look into and investigate this myth you find that is it simply not true. (Sorry mom)

What myths do you and your sales teams believe to be true but make no sense?

One way salespeople today are rationalizing poor sales performance is; the economy. Specifically they share that the economy is the reason why they are not achieving their sales goals. It’s a lot easier to blame external factors than to look inwardly. Blaming the economy is actually a sign your team lacks accountability and is identified as one of the five sales management blunders. What is scary to me is so many actually believe this to be true. Admittedly the economy has an impact on sales performance. With the economic conditions  we have been living in buyers have changed. As the leader of your business you must understand those buying process and buying criteria changes and adjust. If you do not one day you will wake up with sick sales and your lack of market knowledge will be showingthis is usually where the “sales hunter” becomes the hunted.

As a leader you must not accept your sales team feeling like victims to the economy and you must position them to becoming victors in your marketplace.

How is your team performing to goal?

Have any of your sales team shared: “The Economy” as the reason they cannot hit their sales goals?

When was the last time you went on four-legged sales calls to see for yourself?

Do you know why buyers buy from you? Why they don’t?

Are you practicing “clean sales management”?

Believing “The Economy” is the main reason your sales team is not achieving goal is like believing if you go to bed with a wet head you will wake up with the flu….it is simply not true. If you want to identify the truth cancel a few meetings and get out in your market and ask some questions. After about 6-8 meetings with buyers you will identify true “why’s” that are contributing to your poor sales performance and be well on your way to creating a sales improvement roadmap that will turn around your results.

Improve Sales; How do you improve sick sales before they become terminal? Not a sales training issue


It’s that time of year again…sales teams have received their new sales goals and often the results are sick and not close to plan. This time of year in particular, sick sales is an epidemic. Everything was going along well and then all of the sudden it hits you like the flu and your sales become sick. Sales are not hitting plan and worst of all not producing the planned return on investments made to support your new sales goals. How do you improve sick sales before they become terminal? That is what I plan to discuss in my next series of posts. But before we can improve your sales, we need to quash some myths that many leaders believe to be true about improving sick sales.

I went to Walgreens recently to get my annual flu shot. I interact  so many people in meetings, airplane flights and trainings I am pretty much guaranteed to bump into someone with the flu each year so I always get the flu shot. As I waited in line I heard others asking each other questions about the flu and it gave me pause. So when it was my turn to be a pin cushion I asked the pharmacist some questions about the myths I just heard in line. I thought I would be much better off getting advice from an expert than listening to the people in line sharing the myths they have heard, believe to be true, and are now sharing with others. It was no surprise to learn everything that was shared in line was not true and this reminded me of how companies also can experience the flu , particularly early each year when the new sales goals are distributed, and like those people in line they too may believe some myths they have heard over the years.

The biggest misperception about the flu is that it can be treated with antibiotics. The fundamental mistake most people make is self diagnosing symptoms as a cold and not the flu. They believe they can pop a quick pill or a series of pills and cure the symptoms. The flu is a virus and antibiotics do not cure the flu. They believe having a national sales meetings and my favorite; “sales training” to cure their sick sales results will make their poor performance go away. Fixing and improving sales not a “how–to “problem. In the Rain Group report they found 90% of sales training initiatives have no lasting impact after 120 days. In addition companies believe they are providing “sales training” but what they are actually doing is “product training”. Product training is not sales training.

What are some symptoms your sales has the flu?

  • new product sales missing plan by 30% or more
  • key sales performers leaving after last year’s bonus’s are paid
  • gross profit decrease of 3% or greater in the last 30 days
  • loss of a key account
  • 40% or more of your sales team missing sales goals
  • Your competitor launched a new product that took the market by storm

If your sales have the flu or you wish to prevent your sales from catching the flu, the first place to start is to clearly understand your market, buyers, and their buying process. Like the flu shot this process that often entails win-loss interviews with customers, past customers, and potential customers takes some time to work. This is the best way to immunize your sales team from experiencing sick sales. If you fail to understand your market, your buyers and more importantly how your product is positioned to solve buyer problems you are forcing your sales people to assume the position with buyers and this leads to sick sales performance.

Is your team experiencing sick sales performance this year?

Have you decided to have a national meeting?

Does your team experience a sales flu early each year?

Are you planning “sales training” to improve sales performance?

Trying to mprove sales performance without clearly understanding your market is like taking an antibiotic to make the flu go away… it does not work. You may mentally and emotionally  feel you are taking the appropriate action but the sick sales symptoms will linger and often make your entire team miserable much longer than they need to.

Add Inside Sales…Fix Sales Problems

"serving customers with inside sales"

by Mark Allen Roberts

In my last post I shared how salespeople need to learn their A B C’s in terms of account segmentation to insure their salespeople  are spending time in areas that match your sales plan and insure sales goals are achieved. Nothing drives your CEO crazier than finding out your sales team is not hitting plan, and six months into the year he discovers sales is not executing the go-to-market plan everyone agreed to follow. One way I have used to insure sales teams execute sales plans is the implementation of inside sales. The first reaction I always receive when presenting inside sales is:we can not afford it. My answer is always;

You Can Not Afford Not To Have Inside Sales to Hit Sales Goals

In this post I will share my thought process on why inside sales is even more critical in today’s selling environment than ever before, how inside sales can turn cold calls into warm calls, increase sales with your C accounts, increase new customers, and reduce your current cost per sale and add more profit to your bottom line. Inside sales also offers a number of other benefits we will discuss, but I hope the above mentioned benefits are enough to keep you with me.

How has the sales environment changed in the last 5-8 years?

I used the same process I would use in a market trying to determine shifts, I interviewed a number of sales people and listened to what they are experiencing selling products in today’s market. Some of the common comments included:

My buyers have to justify each expenditure to the “higher ups”

C-level executives need to sign off on all orders

About 70% of what marketing gives me I do not use.

I have to speak with all kinds of people I never had to sell before; CTO, CMO, CEO, CFO…

Customers are not stocking up and they are taking much longer to buy, while our marketing programs try to reward customers to buy volume, but they are buying Just In Time

My buyers have the C-suite recommending competing vendors to our products and my buyers are spending time chasing these leads the C-suite read about or heard about at the country club…

My buyers say they are “cautiously optimistic” about our economy and therefore are not cutting Purchase Orders

Couple some of the above with the studies that indicate 70% of buying is occurring before the buyer makes contact with a salesperson even the most adamant skeptic must agree buyers are buying differently today and the sales process must adapt if you plan on hitting your sales numbers.

Inside Sales can turn Cold Calls into Warm calls

In addition to staying in contact, touching, your C Accounts, inside sales can establish trigger alerts through Google Alerts that give them a heads up when a trigger event occurs that may indicate a sales opportunity. For example, let’s say a manufacturing plant expanding has been proven to be a trigger event for turning suspect customers in to prospects and even quotes. Inside sales can establish a limitless number of Google Alerts to let them know when a trigger event occurs in the market. Your alert would look something like; “Ohio Plant expansion”. When that alert is triggered inside sales can search Linked in by company, make phone calls and send your product information to the right person ant the right time. Marketing should provide template tools to insure the communication connects to possible buyer pain points for this type of buyer by market. If the alert is for one of those large accounts, in your market sweet spot you have wanted to sell, inside sales will send information and make contact then introduce the field sales person. A common transition would sound something like ; “ as we have discussed it sounds like you are exploring products to support your plant expansion, we have our product specialist in your market on September 15th, would you like me to set up a time for him to meet with you and better understand how we can help you? “ I recommend providing inside sales a finder’s fee bonus on accounts they feed to outside sales that turn into orders. I often use some % of the first order’s profit.

Increase sales with your C accounts

Working with the VP of Sales and marketing you can establish strategic touches. Some that I have used include;

  • “thank you for your recent order, people who purchased ____have also purchased _____”
  • “I noticed you have not ordered since __________ and I wanted to check in on you”
  • “You asked to be kept in the loop on new products, did you see our _______ click the link in this email and it will send you to product information”
  • Promotions – I recommend a quarterly product focus, and have inside sales send an email and within 7 business days call to follow up, “did you see we are running a promotion on _______”

The key focus is service not sales. Inside sales tone and voice should be about helping the customer. All communications must feel relevant to your buyers and timely. When I say timely I am referring to communications that feel like they came just when the buyer needed them, like you know them.

Increase new customers

As we discussed above, inside sales will be constantly being alerted to triggers that may lead to new business. In addition, now that field sales have only A and B accounts, they can work the targeted accounts in their market opportunity profile.

Reduce your current cost per sale and add more profit to your bottom line

What does it cost your company to have a field salesperson call on an account?  For years I have used $500 as the cost of a call, but it may have gone up. You need to add the salesperson’s base, expenses, medical and all overhead to determine a cost. I have heard some people tackle this different way by having a daily cost of a salesperson model. Whatever you use, there is a cost. What is the cost of losing a key customer? The cost of losing a C account? What does an inside salesperson cost? In most cases their targeted compensation is 1/2 that of a field salesperson, and their only expenses are added phone calls and postage.

If you do not have inside sales today, I recommend a phased approach with regards to field sales commissions. In some cases, which will be an eye opener to many, the C accounts are the vast majority of your field sales commissions. Let me say that again in a different way; the majority of the commissions you are paying your best and brightest field salespeople who are not growing current accounts or opening targeted new accounts would have probably come in anyway, even without a field salesperson. I often implement a split commission structure in the first year as we transition to inside sales and this gives field sales time to refocus and not realize too much of a hit on their targeted compensation in year one.

Inside sales helps focus  on creating the greatest return on sales investment

Quick numbers…. Let’s say your field sales team member is costing you $700 per day. Let’s assume, because the field sales person has time to work current customers they increase their base key account sales by only 3%. Let’s also assume you reduce your account attrition by one key account per territory, and the salesperson only opens 4 new key accounts per year. In addition, as I experienced personally, your C accounts are now feeling you care about them , that they are important , and you are reaching out frequently with solutions to problems they were surprised you knew they had and C account sales grows over 10%. Inquiries from the internet speak to a live person and have their questions answered quickly and all inquires are treated like they could be customers. Your cost to support C accounts has decreased by 50% increasing your ROI on sales compensation invested…..I’ll say it again ;

You Can Not Afford Not To Have Inside Sales to Hit Sales Goals

The last benefit I also realized from inside sales is it often becomes your farm team for field sales. Your inside salespeople gain valuable experience often dealing with some of your most demanding customers. They learn your product lines and the problems they solve, your markets, and as your team grows often they can be called on to serve in a field sales capacity. They also learn to rely on the buying process you have taught them and when they venture out into the market follow it because they have experienced how having a sales process that mirrors how customers want to buy drives sales results.

So how about you…do you have an inside sales model?

What benefits have you realized from having inside sales?

What do you do strategically to insure inside sales and field sales work well together?

Given the shifts in how buyers are buying today, an inside sales position is key to insuring your sales team makes quota.

Are Your Salespeople “Growing a Market”…Or Working a” Bread Route”?

Are Your Salespeople “Growing a Market”…Or Working a” Bread Route”?

A common concern I hear from business owners is their salespeople are not effective at selling net new customers. New customers, if serviced properly become lifetime customers with current and future revenue opportunities and contribute to creating sales velocity. In addition, they make up for account attrition, you know …customers who go out of business or just go away. (another future blog needed as customers do not “just go away”) New customers result in additional commissions for the salesperson right? Since new customers are so key to every businesses current and future sales revenue goals and can add additional commissions then why are sales people not closing new customers?

One of the leading reasons I have personally experienced why salespeople are not growing their markets is ; they are working a bread route.

As I have shared before one of my first jobs was a route salesman with Frito-lay. Fresh out of college I drove an 18 foot step van full of Frito-lay products to my grocery stores, convenience stores, bars, and anyone else I could open. Frito-lay made the sale of new accounts one of my key indicators along with selling additional store placement displays and gaining shelf space. The one route sales guy who would beat me to my grocery store accounts was the bread route delivery person. They would always amaze me at how fast they could get in and out of a grocery store and move on to the next account. They started very early in the morning like me, but were often done with their route by 2:00 pm. The bread route driver was focused on visiting his current accounts, accounts he and his company have relationships with, finding out what they needed and filling the shelves. They had very specific routes and timelines and if the driver executed his or her route effectively they made a good living. The bread route driver made enough income serving his current customers that he did not need to open new customers.

Fast forward to today and I see bread route drivers in all kinds of businesses. These are salespeople who call on a bank of current customers who should need additional products and or services and if they work their route they should meet their personal income goals. Current customers are the easiest to deliver products to because you and your company have a relationship with them. They welcome you in, if you ask for an appointment they make themselves available…heck, they even reply to voice mail and emails!

Selling new customers requires connecting with new people you do not know, new companies you may not be failure with and risk. No salesperson likes rejection and every time you attempt to start a discussion with a potential customer, (someone you could sell but you are not currently selling) you risk rejection. In addition, since you do not have a relationship you often experience frustration through a lack of returned phone calls and emails, trying to get past the gate keeper, trying to determine the buyer’s process and criteria and so on… all the while needing to make your sales objectives (and commissions).

So how do you know if your salespeople are growing their market or working a bread route? I have a few questions…

  1. How many net new clients have they added in the last 6 months, last 12 months?
  2. What % of their monthly commissions is the result of net new customers over the past 6-12 months?
  3. If your salespeople report on sales calls, what % of calls are net new potential customers?
  4. Do your salespeople have “everyone” in a particular market that has ever bought from you? Or do they have a fraction of the total number of accounts?
  5. When you conduct four-legged sales calls with your sales people, do they take you around to current customers and drive by a number of potential new clients, or do they add net new targets along the way?

So what’s your gut telling you right now? Are your salespeople working a bread route or growing your market? How did your team score with the above questions? Below is how I have viewed the responses to the above questions when I have helped clients.

How many net new clients have they added in the last 6 months, last 12 months?

I monitor the number of net new clients. As a general rule and can vary based on the maturity of your industry and the frequency with which your team introduces new products….if a salesperson is not adding at least 5% of their total number of customers every six months, ….they are working a bread route.

What % of their monthly commission is the result of net new customers over the past 6-12 months?

In addition to the number of new accounts I look at the revenue those accounts contributed and also how that revenue grew the salesperson’s commission. Again whether or not you have a history of launching exciting new products designed to solve the markets unresolved problems or new product flops , the maturity of your industry, the experience and training of the salesperson…I look for at least 5-7% (ideally 10 %+) of commissions coming from customers they have opened in the last 12 months…if they have little or no commission from new customers…they are working a bread route.

If your salespeople report on sales calls, what % of calls are net new potential customers?

Winning new customers requires a great deal of activity. I am not however advocationg activity without focus as I have discussed prior as another problem salespeople often encounter.  The rule I have used in multiple industries is 20 unqualified prospects should turn into 10 potentials, and from that 10, 2-3 proposals and 1 new customer. If your salespeople are not trying to connect with at least 20 new accounts per month ( 5 per week) ….they are working a bread route.

Do your salespeople have “everyone” in a particular market that has ever bought from you? Or do they have a fraction of the total number of accounts?

If all your customers are lumped into one group and not segmented based on key accounts, targeted growth accounts and you have not identified targeted net new accounts… they are working a bread route.

When you conduct four-legged sales calls with your sales people, do they take you around to current customers and drive by a number of potential new clients, or do they add net new targets along the way?

I enjoy working with salespeople in the market. I enjoy interacting with salespeople, their customers and potential new customers. If you work with your salespeople and they take you only to happy customers and drive by potential net new clients and have not started or attempted to start discussions with them…they are working a bread route.

So how did your sales team fair? Are they growing a market or working a bread route?

As long as they hit their sales numbers do you care? Should you care?

If your salespeople frustrate you by poor execution in closing new business, it could be because they are working a bread route. In my next post I will discuss how to change that behavior and drive net new customer revenues for your sales team.

The Value of the “Four Legged Sales Call”, …Fix Sales problems quickly

 

 

 

 

The Value of the “Four Legged Sales Call”, …Fix Sales problems quickly

An “old school” technique to drive explosive sales and profit growth is the “four legged sales call” It doesn’t matter if you have a direct sales team , regional managers and or independent representative firms, the four legged sales call is the quickest path to incremental revenues and fixing your sales problems.

Let’s face it, in most markets out there it’s tough. The buying process has changed, we have more irrational competitors, and a much larger number of people influencing the purchase.

 

Sales today is like walking on Jell-O, its difficult to gain traction and easy to fall down.

I have a number of business leaders expressing a need for a quick fix, a quick way to fix their sales problem. They often phrase the need as “my sales rep team just can’t execute our plan.” When I hear this I often pause as based on my experience most salespeople “try” to execute “the plan”, however the root of the plan (marketing strategy) is often flawed and therefore they fail to execute and meet their sales goals. What market losers do is race to engage with what I call Mullet Marketing; doing the marketing work after the launch instead of understanding the market and it’s problems before the launch.

What are some signs your sales process is disconnected from the market?

 

  • 70% or more of your sales team are missing sales key performance indicators
  • Profit per sales below key indicator goal
  • Lead to sale ratio below prior, below goal
  • New product sales fail to meet plan
  • Customer satisfaction scores decrease
  • Customer service, technical assistance increases

 

The quickest way I have found, even with all the new CRM tools , win/ loss survey companies, online surveys, and so on is the “four legged sales call.”

In the four legged sales call the salesperson in charge of the account and is accountable for the sales from that account is joined by the VP of sales or the company President. While your salesperson is selling, your focus is to listen and observe.

What you are listening (looking) for?

  • salesperson’s understanding of the buyer’s problem
  • salesperson’s ability to communicate the problem your product or service solves
  • Does your salesperson have the right tools to help the buyer make a buying decision?
  • What are the buyers’s buying criteria today?
  • What is the buying process?
  • Does your sales process mirror the buying process?
  • What sales tools does your salesperson have and which ones do they use? Are they current, or something they created themselves?
  • Does the buyer have other problems they verbalize but your salesperson fails to hear?
  • Where does the buyer turn today when faced with an unresolved problem? …the internet, a trade journal, calls a local representative…
  • What other products does your buyer buy from competitors that they could be buying from you?
  • What % of the time is your salesperson listening versus talking? ( my favorite indicator)

 

I promise you, after a few four legged sales calls you will have a much better understanding of your market, buyers, and how buyers are buying. Make sure you visit accounts you are currently selling as well as those you lost and or are trying to sell. When you return to corporate gather your notes, look for common data points and adjust.

If you have not changed your sales process in the last six months it is broken!

 

When is the last time you went on a four was legged sales call?

 

When you ask your salespeople why they are not hitting sales objectives, do they say “price”? ( if so they are wrong)

 

What is your buyer’s buying process today? How has it changed over the last 6-12 months?

 

Are their other “old school” methods to fix sales problems? If so, what are they?

What does it mean to “ Play life like a champion”

 

 

In my recent post; Are you a Pit Bull or a Poodle I share a quick test I give clients who are considering entering the entrepreneurial game.  One of the key indicators you are a Pit bull is you ;

“Play life like a champion.”

 

So what does it mean to play life like a champion?

 

Having lived in North Canton Ohio most of my adult life the Pro Football induction ceremonies and celebrations are a big event we looked forward to each year. Aside from the parades and ribs burn off I often would  listen to the speeches recognized Hall of fame champions gave when they were inducted.

This year was not exception as Emit Smith’s speech was one all business owners setting out to be the dominant market leader in their field should listen to. Below are some key bullet points I gathered from his speech;

  • don’t set out to be good, set out to be the best

 

  • write your goals down and they become real

 

 

  • study the greats that went before you

 

  • demand excellence of your self and those around you

 

 

  • be thankful each day you are blessed to be playing

 

  • rarely is personal recognition won without the contribution of others

 

 

  • share your goals with others who will hold you accountable

 

 

  • understand it will take sacrifice and make sure you are willing to do what it takes

 

 

  • Never, never ever give up

 

I found this speech particularly inspiring as so many business owners and their leadership teams face challenging times.

As leaders we must be intentional about the values and principles we weave into the fiber of our cultures. Just as goals not written down are just dreams, failure to intentionally state and reward the behaviors you desire of yourself and your team is a mistake as champions do not “just happen”.

Hall of Fame Football champions do not “just happen”, they are born of a relentless desire for excellence.

So how about you…..

 

Do you have a clear written goal that demands excellence to achieve it?

 

Does your team clearly understand the goal and the path required to achieve it?

 

Does your team reward the behaviors of champions?

Don’t Kick Your Salesperson’s ASS, …Help Them Find Their Number….

 

One of the easiest things a sales manager, (business leader) can do is resort to a; “boot on the throat”…” a throat to choke” ….and “Ass Kicking “mode. After all it takes very little effort, knowledge or skill to be a critic and a bully.

True leaders help train and motivate their teams.

 If your desire is to hit and surpass your sales objectives….Help your salespeople “find their number”.

I see it all the time, a new product launches or a new sales goal is distributed to a sales team and the key performance measurement: Sales to plan is not met. The easy route is to start “Ass Kicking”. You know …the weekly and by weekly conference call thrashings in front of their  peers. The sales update calls at 5pm on Fridays that last until 7pm. The “contemplation of your navel” market reports on why they can’t hit their sales numbers and their future action plan to change the results.

Yes this may drive some momentary, fear driven results, but this is not how you create sales velocity. In 99% of the cases I have been asked to help figure out why sales objectives were being missed it was not lazy salespeople who needed their butt’s kicked. A frequent cause was poor (or a total lack of) sales training. In these cases struggling salespeople are told to “stop making excuses and just make it happen, figure it out”. However the reality is the reason your team is missing numbers can be traced back to your understanding (yes you) of your market and buyers problems, buying criteria, and buying process.

Sales velocity is sales increases with direction and momentum and it is never driven by fear.

If your salespeople are struggling with sales, particularly new product sales and or new business sales my advice is to stop… the beatings as the morale is not improving and “help your salespeople find their number”. Their number is how many rejections they have to experience to have a win.

For example at one time in my career I ran business development for an ad firm. After tracking my calls I found my number was 18. If I made 18 calls I would get 2 appointments and from those two appoints I would close 1 new account. Instead of dreading the call process it became a game. Each rejection meant I was one step closer to a yes. Over time I also tried to improve that number.

A couple of funny things happen when you track how many rejections your team receives;

First, they make more calls. More calls mean more opportunities to win, more opportunities to start conversations.

Secondly, if your sales team has been properly trained on how to listen to buyers, determine their unresolved problems, and they understand the problems your product solves….you will have a number of net new potential clients dropping into your marketing funnel. Some of these accounts may not buy for 12-14 months, but if you compliment your calls with a lead nurturing campaign you have a high probability of closing them when their problems, (their pains) become unbearable.

As the leader you must listen to your team and look for diamonds as far as what is working and share it with your entire team. In addition you must look for common reasons sales do not occur and work with marketing to create sales tools for these common roadblocks in the flow of the sales process.

So do me (and your sales numbers) a favor …

Track number of rejections for each team member for 60 days. Gain an intimate knowledge of common reasons buyers are rejecting your salespeople.

 

Have your salespeople report on their number of rejections each week and you will see more net new sales and your marketing funnel will increase exponentially to help your future sales numbers.

Or go ahead and Kick Some Ass….it sure worked when you were a salesperson right? …Oh it didn’t? It actually made you feel like a number, and you lacked a loyalty to that manager and or company? Or you left that team, that idiot boss and now you lead the competitor’s sales team?  Interesting…did the ass kicking make you seem desperate to your accounts at the time and the deals you did close were below your targeted profit margin? Hmmm…so what makes you think “Ass kicking” makes your team feel any different?

Does your team track number of rejections?

 

Does each of your salespeople know their number?

 

Does your organization use those individual rejection numbers to identify team member who need training?

 

If you are in sales, do you know your number?

 

Do you find when the pressure is on salespeople chase new business differently? Are they making things up on their own? Making promises your product or service can never achieve?

You always have a choice.

You can “let the beatings continue until the sales and morale improves”….’let the Sh@t flow down hill…”or you can chose to lead your team. You can help them, motivate them to make more calls, and clearly understand your market, buyers, and have a record setting year.

Do I need a Passion Statement for my business? Take the short quiz…

 

 

As I discussed in my post : Want to Jump Start Sales and Morale? Write a “Passion Statement” For Your Business…. A passion statement will jumpstart your sales and improves your team’s morale. Business leaders often spend a great deal of time on mission statements, their unique sales proposition as well as their stated team values. These are all needed , however nothing unties a team and inspires your buyers to buy like an authentic passion statement.

So how do you know if your organization needs a passion statement?

Please answer the below questions with the first answer that comes to your mind.

What I am looking for is your feeling more than an answer you spend time rationalizing.

  1. Do your customers perceive your product as a commodity?

  2. Has your overall gross profit as a % of sale decreased in the last 6 months?

  3. Do your team members work 9-5, no more, no less?

  4. When you work with salespeople in the field do you discover your key accounts are purchasing products from competitors because they were not aware you carried them?

  5. Has 50% or more of your sales team missed their goals over the last 6 months?

  6. Do your competitors always seem one step ahead of you with new products or services?

  7. When you launch new products, do they miss their ROI targets?

  8. When you review the performance of your last 3 new products would they be categorized as “evolutionary”? ( instead of revolutionary)

  9. Is you employee turnover greater than 20%?

  10. Have you lost one or more of your Key accounts in the last 6 months?

  11. Has your AR increase by 10 or more days to collect?

  12. Do your salespeople complain your products are significantly priced higher than competitors?

  13. Are salespeople listing features you must build into your product to make the next sale?

  14. Are you frustrated that your team does a good job of identifying roadblocks, but fails to develop plans to break through them?

  15. Have you ever said…” I am frustrated; I want my team members to act like owners and not just employees”.

  16. Have you lost a key employee over the past 3 months unexpectedly?

  17. Are you having difficulty identifying and recruiting new team members?

  18. Do your team members have more than 3 key performance indicators you evaluate them on each week?

  19. Is more than 3 hours of your week in meetings?

  20. Do you feel the need to create weekly objectives and activities for your subordinates, and “manage” them closely?

 

Here’s the deal….if you said “Yes” to more than 5 of the above you and your team need a quest, you need a passion statement to jumpstart your business.

If you answered “Yes” to 10 or more you are already on the slippery slope of becoming a Market Loser.( take corrective action now!)

 

How does your organization answer the above questions?

 

Based on your answers do you need a passion statement?

 

How do your clients describe your team and your products when you are not around?

How Do We Create: Repeatable, Sustainable, Profitable Growth in our organizations?…Study Both Market Leaders and Market Losers

 

 How The Mighty Fall: And Why Some Companies Never Give In

 

 

 

As leaders we are drawn to success stories. We study businesses teams that seem to defy the odds and win. Teams that realize profitable sustainable growth, even in the worst economic conditions, command our respect and admiration. However, for us  as leaders to create teams that drive ; repeatable, sustainable, profitable growth we must study both the market leaders like Apple as well as those that were once leaders who fell from grace like Zenith.

I just finished another book that will definitely be on my must read list for business leaders; How the Mighty Fall; and why some companies never give in, by Jim Collins. As I page through the book once more I see page after page with highlights, underlining’s and notes in the margins. I have been a fan of Collin’s since Good to Great. I enjoy his non emotional, almost scientific approach to the dynamics of business.

Collins identifies the value business leaders can gain by studying companies who did not win and actually fell from grace.

I remember Zenith TV’s when I was a child growing up in Cleveland, Ohio in the 1960’s. They were the best TV’s. If you were to ask anyone who the leader in TV’s was they would have said Zenith back then. However today they are non existent. What happened?

How does this fall from grace occur?

 

What did they do wrong?

 

Is it something that was preventable or inevitable?

Are their common early warning signs we can watch for so our teams do not move from a position of “market leader” to “market loser”?

 

 I particularly found his identifying the stages of decline brilliant as I have lived each with various clients over the past 25 years.

Stage 1: Hubris Born of Success

 

           Stage 2: Undisciplined pursuit of More

 

                      Stage 3: Denial and Risk of Peril

 

                                Stage 4: Grasping for Salvation

                                             Stage 5: Capitulates to irrelevance or Death

In addition to providing the common steps once market leaders often faced on their fall, he also provides what he calls; “markers” or early warning signs to see if your team is in one of the five stages of decline.

I highly recommend this book for business leaders who want to passionately serve their markets while increasing their shareholder value. In this book he draws on an analogy of how a “sick” business is like a sick person. On the outside they may look fine, but upon further investigation you find illness. If you find” Sickness” early enough you can take corrective action to cure the problem and avoid future pain. If arrogantly left unchecked, often due to the “hubris” of stage one, businesses become sick and it can be terminal.

 

How about your organization? Could your team be in one of the five stages of decline right now?

 

 

Does your business need a check up?

 

 

Does your team have a culture that would admit a problem?… or do you have Hubris? (Excessive pride that brings down a hero)

 

 

Are you battling an 800 pound gorilla in your market that is in denial? Is your team positioned to help your market when they fall?

 

 

 

I want to leave you with a couple of my favorite quotes from this book;

The path out of darkness begins with those exasperatingly persistent individuals who are constitutionally incapable of capitalism

 

 

“There is no law of nature that the most powerful will inevitably remain at the top. Anyone can fall and most eventually do”

 

 

“There are more ways to fall than become great…”

 

 

“Great companies can stubble badly and recover”

 

 

 

I think it was Lincoln who said; “those who do not study history are destined to repeat it” I recommend you and your leadership team read and discuss; How the mighty fall. I ask you humbly challenge yourself and your leaders to insure your team are destined for profitable growth and not a fall.