Category Archives: Growth Consulting

Lukewarm Defenders of Change

Inside every company there is a culture. In order to remain competitive, companies need to make cultural and process changes that are holding them back. How the employees respond is a critical predictive factor in the achievement of the desired outcome.

 

“There is nothing more difficult to take in hand, more perilous to conduct, more uncertain in its success, than to take the lead in introducing a new order of things; because the innovator will have for enemies all who have done well under the old conditions and only lukewarm defenders in those who may do well under the new.”

-Machiavelli

As Machiavelli points out, leading others to a new order is tough work. Here are some management suggestions on how to make it a part of your culture:

Know your people

  • What is the thing they like most about their position? What would they change?
  • Have them explain why they are on this particular career path.
  • What do they think about the company and its management? What do they believe should be done differently?
  • Ask them who have been the greatest influences in their lives/careers. Listen intently and ask follow-up questions.
  • Ask what they like to do away from work.  Don’t make them uncomfortable. Make it known you are interested in getting to know them as people.
  • Share what values are important to you and why. Provide some stories where appropriate—people relate to stories.
  • Find out about their personal and career goals; share your own.
  • Become vulnerable. Ask what you could do better to serve them and the department/company.

Please remember to respond with empathy.  Demonstrate sincere interest in what your people say, significance to them, and how they feel about it.

Assign properly

1.    Delegate those things that would be helpful to you and to their development.

2.   Select the most strategic person to complete the task(s).

3.   When possible, get the employee to create a plan to complete the task(s).

4.   Ask the employee to repeat back their understanding of the desired outcome and process.

5.   Have a mid-point check-in on complex tasks.

6.   Follow up in a positively.

7.   Consider the rotating tasks.

8.   Delegate tasks that enhance cross-training.

9.   Try to include some delegation to everyone in the group.

10. Ask for input at the end of each task.

Motivate

Internal Motivation:

Have the employee ask himself these three questions—

  • Do I have awareness about my passions?
  • What would I ideally like to look forward to each morning?
  • How do I make this ideal happen?

Discuss how the answers to these questions must factor into job responsibilities and performance.

External Motivation: How do you reward your employees?

The columns below offer employee types, potential felt needs, and some suggested rewards. For each employee, think about needs and rewards. (You may pull from categories more than once).

EMPLOYEE DESCRIPTION

NEEDS

REWARDS
1. Employee feels disconnected from others.

Likely Need:

Appropriate Rewards:

 

2. Solid worker boasts of recent accomplishments.

Likely Need:

Appropriate Rewards:

 

3. Someone who displays a knack for learning and innovation.

Likely Need:

Appropriate Rewards:

 

4. Turnover in a department causes an employee to withdraw.

Likely Need:

Appropriate Rewards:

 

5. A shining star complains about the lack of opportunity for advancement.

Likely Need:

Appropriate Rewards:

 

 a. Security

b. Socializing

c. Esteem

d. Achievement

e. Power

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 1. A letter of praise sent to the CEO and a copy of it given to the employee.

 

2. The right to select and manage a project.

 

3. A dress-down day.

 

4. An opportunity to gain some training & development.

 

5. An extra vacation day.

 

6. Involvement in a new committee/team.

 

7. Peer “attaboys” posted in lunch room.

 

8. Opportunity to lead a presentation/team.

 

9. Reassurance that his/her position is vital.

 

10. Role in developing a new company program.

Consultative Solutions Beat Hard Closes

In times past, “good” salespeople  had a method to close out a meeting with a prospect that was successful in getting them to “sign on the dotted line.” In some industries, the sales function is described as business development because of stereotypes of sleazy salespeople who use high pressure techniques to cajole an uncertain buyer into a (sometimes regrettable) decision. This is especially true in business services firms, where there is a stigma in many cases about seeking out new business at all.

The biggest development of the past few decades has been the consultative selling approach. Yet, even this shift is not satisfactory for people who just do not like the word “sales.” When I have been working alongside attorneys and CPAs, for instance, the terms “client development” or “business development” are much preferred. In general, these practitioners provide offerings that have long sales cycles or are perceived as commodities. So…to unlock the motivation of my clients to do the development that is needful for practice growth, I usually have a series of conversations and trainings around the concept that client service requires a similar approach. Few argue that client service is needful.

Rich Grehalva writes and speaks about the array of sales/business development models:

CLOSING SALES MODEL
The 1950’s introduced this model, which concentrated on the product being heavily emphasized.
Key Elements:
✗ Presentation Skills
✗ Trial Closing
✗ Overcoming Objections
✗ Final Close
This model is still in use today, usually in high-pressure sales.

PRODUCT/SERVICE PUSHING THROUGH
PERSONALITY, PERSISTENCE AND PRICE
➲ The salesperson is tenacious, persistent and usually has a low-cost item and works on a numbers game.
➲ The natural born salesperson enjoys interfacing with people and usually has an engaging personality.

RELATIONSHIP SALES MODEL
➲ The salesperson builds a relationship, over time, with repeated visits.
➲ The buyer and seller get to know each other on a personal and professional level.

PROBLEM-SOLVING SALES MODEL (1960’s)
Focusing on:
➲ Open-ended questions – Role-playing is used with students to get them to understand how to get clients or prospects to talk about the things that are important to them.
➲ Closed-ended questions – Closed-ended questions require a yes or no response.
➲ Listening skills is a key component.
➲ The salesperson takes the information and then presents solutions.

VALUE ADD SALES MODEL (appeared in late 1960’s).
Price objections raised by the “Problem-Solving Sales Model” can be countered by adding additional services. In this way, adding these services to the base product/service gives a perception of the value received versus the price.

CONSULTATIVE SALES MODEL (surfaced in early 1970’s)
➲ Determines how to lower the clients costs and/or
➲ Determines how to increase the client’s revenues The company requires a depth of understanding of their clients’ business, as well as a solid track record in delivering proven results. Start-ups find it difficult to compete in this
type of sales model.

PARTNERING
This model became the buzzword used by salespeople–not in creating a legal entity, but in building a joint plan for
creating an opportunity. The sale is conducted at the highest level of the company and an output is a business plan
targeted at a niche within the clients’ market. The term partnering became highly overused and misused. Clients and
prospects soon tired of hearing the word.

TEAM SELLING MODEL
Though not new, the Team Selling Model became increasingly more integrated into the sales model. The salesperson
in this model must coordinate all of the activities within the organization and external to the organization, in order to
win the business.

COMPLEX SALES MODEL
✗ Large ticket sales
✗ Multiple decision makers
✗ Extensive coordination, both internal and external
✗ Long lead times
The role of the salesperson involves taking on a strategic role in developing win themes, internal politics, competitor
analysis, and legislation, as examples.

It is important to think about your client base, your reputation and brand, your team–whether they are salesmen or technical people who happen to need to bring in business, and what your goal is. (Hint: a sale that is undone a year later when the client is not retained is not an accomplishment.) In general, it is best to educate and involve the prospect, help them feel good about choosing your company, and guide them through letting the current provider go. When we consistently approach prospects with consultative solutions rather than hard closes, then we are developing business rather than selling.

Resist the Urge to Resist Change!

Innovation is a word that is bantered about unwittingly by many. From its Latin root, it generally means to renew or change. Yet, many reduce innovation to invention—as in product-specific concepts come to fruition and production. If we faithfully apply the definition, innovation may be seen to pertain to any ideas to effect positive change that go from origination to transformation to implementation to systemization within an organization.

To make the mental transition from viewing innovation as invention to what it really is, one must see innovation as culturally transformative. What was can no longer be what is, and certainly not what shall be. Change is hard for many people. Making a commitment to continuous change can be downright overwhelming. Yet, choosing to take action when others are stagnant can create tremendous strategic advantage. Look at Steve Jobs and Apple after the dotcom bust of the new millennium.  As others shrank from R&D, fearful that the technology boom was forever dead, his group increased investment in innovation and they have prospered for it. Think Apple and technology are an isolated company/industry? Explain away the following mix of companies founded during poor economies: Disney, CNN, Hyatt, Burger King, FedEx, Gillette, AT&T, Merck, Coors, IHOP, Fortune, GE, and the Jim Henson Company.

During the agricultural age, the asset everyone wanted was land and the critical success factor was yield. Agriculture gave way to industry with manufacturing and processing facilities and their efficiency defining success. As information became a greater commodity than industry, computers and their speed became the yardsticks. Today, in the creative age, innovation is the key asset and, as a means of differentiation, determines ultimate success.

If your organization is to remain/become competitive in the current world economy and proliferation of information sharing, it is unlikely to do so without making a commitment to continuous improvement. Again, so as to not confuse this phrase with the Deming’s work in documenting kaizen approaches to manufacturing in Japan, let’s define what is meant. We are speaking here of a core value within an organization to not accept the status quo—to not become complacent.

In a Business Week survey conducted in conjunction with the Boston Consulting Group in 2008, it was noted that total shareholder return (TSR) was greater over a three, five, and ten year period among business model innovators versus their industry peers.  Notice that it was those who innovated their business model rather than those who tried to hold onto their old one who prospered! TSR was greater among global innovators than the S&P 1200, greater among U.S. innovators than the S&P 500, greater among European innovators than the S&P Euro 350, and greater among Asian innovators than the S&P Asian composite.

“Wealth flows from innovation not from optimization.  Wealth is not created from perfecting the known, but imperfectly seizing the unknown.”

-Kevin Kelly, founding editor of Wired

 

In 1989, Smith Corona had annual sales of $500 million, producing typewriters. Word processing and computerization overtook their market position and they could not innovate fast enough to ride the wave. Jeremy Gutsche of trendhunter.com says, “Be wary of your strengths; success leads to complacency.” He maintains that, over time, most people stop trying. Need convincing?

  1. “We own that market.”
  2. “He’s been a client forever.”
  3. “She’s already my girlfriend.”

Gutsche cites each of these statements as examples of a pervasive attitude of entrenchment. Since most people are risk averse, we have learned to polish the “spin” on our actions and speak glibly of “tweaking” and “optimizing.” Instead, successful people and organizations must learn to pursue that which is splendid, unique, and paradigm-changing.

The secret, though, is to not just produce an innovative product or service; to not just culturally innovate, but to commit to innovation and change continuously. Daunting? You bet it is! How can you lead yourself and others to protect the value that innovation has created? How can change be “maintained?” This is a rhetorical question—it can’t! Change cannot be maintained—it must itself be changed to remain responsive, relevant & vibrant!!!

Getting Entrepreneurs Unstuck

So many businesses start with grand visions and hopes, only to miss the mark along the way. In our home state of North Carolina, 26000 businesses are started each year; but, 23000 fail each year as well. Without getting into the dynamics of how many survive for three or five years, we can at least ask the question “why?” Why do so many businesses fail each year?

Mismanagement, making mistakes others have already made, inadequate capitalization, and poor knowledge of systems and process resources are all contributors to business failure. The reason many of these mistakes are made is the lack of a sounding board for many entrepreneurs–someone to whom they can turn for ideas, resources, and encouragement. For centuries, there were very formalized apprenticeship programs in many industries that helped new workers become business people. In modern times, we use the term “mentor” to describe someone who is willing to work with an apprentice.

Management of a business is tough work. Having a mentor can make a big difference. Some of the things a mentor can offer include:

  • Business strategy and planning to make sure their business is focused on a viable market with a winning product and/or service that has a competitive edge
  • Forecasting and financing ensuring that sales plans are realistic and that cash is well managed
  • Operational discipline and judgment to increase the chances of success by making fewer mistakes
  • Industry connections that can help accelerate the business and its operations
  • Start-up company experience that can instill the wisdom of what it takes to really start and manage an emerging business

Organizations like EntreDot and incubators like the Cary Innovation Center and REDii in downtown Raleigh are but a few of the many resources that smart business owners seek out. The value is in having someone on site who can walk and talk  you through an issue that is new to you. The “someone” is often one who has more experience in business, but can also be a peer in these incubator environments.

Getting “stuck” on a tough issue is okay; staying in that predicament can put jobs, ideas, and investments at risk of loss. Regardless of whether you live in a community that has ready providers of mentoring or have to seek it from elsewhere, it is vitally important to your success to get help. Becoming “unstuck” makes life more enjoyable, fuels the economy, and builds better communities. Best wishes!

How Do You Show Value to Customers?

Most companies that I know are frustrated that they cannot get customers to appreciate what they do. The real rub lies in not being able to monetize what we believe sets us apart from the competition. Unfortunately, we find ourselves competing on unfavorable terms instead of the ones we’d prefer. How does one go about turning this scenario around to one that delivers superior results via customers who see the value in what is being offered? How do you show value to customers? Can you demonstrate savings in dollars, time, or some other resource? If so, you have a competitive advantage!

Take the time today to write out how your company makes the customer’s life easier, produces more opportunity, or decreases their costs. Do you provide complimentary training? As a result of doing business with you, do they have better control over quality–how can that be measured? Is your logistics solution extra convenient for them–what is that worth to them? How about the way you package your product–any advantage for them/how can you quantify it? All of these factors are significant to the customer if you find a way to communicate the value.

The story is told of a supplier to the apparel industry who found a way to get their customers to articulate the value proposition. As a provider of zippers, trim, buttons, lining, hangers, and garment bags, H.B. Trim was looking for a way to communicate how valuable it was versus the competition. Ross Nadelman, the owner, told his consultant “I do everything better than my competition. I offer more. I understand the business more, and I can deliver better.” Do you feel this way about your business? Guess what? None of this matters if you don’t find a way to monetize your value to the customer! What Ross did to turn the corner was to send a cover letter and an attachment to two prospects he’d been trying to reach for years. In the letter, he listed his company’s competitive advantages; the attachment was a worksheet that he asked the prospects to fill out estimating their current costs and anticipated savings if they did business with him. Not only did he pick up the two prospects, but enough others to increase his business by 60% Would you like to increase your business by 60%?

If you are not in the manufacturing world, but perhaps in a services business, then it is likely that your differentiation will be slightly different. Speak to your customers/clients about information–how you collect, manage, and wield it to their advantage. If you are doing a lot of work for small to medium sized businesses, they often lack access to key statistics and trends for their industries. You have some of that information just from your interaction with them, their competitors, and peers in related industries. All you have to do is summarize what you know and share it to show how much you care. The next step would be telling a new prospect that you will help them avoid costly mistakes or find new opportunities because of what you share by way of information. Be ready with a story of how an existing customer benefited from your thoughtfulness. This is how you build an unassailable customer base!