Why Businesses Fail - Sales

Poor sales performance is a major contributor to the demise of many. Obvious on the surface however, what’s the problem? Changes in the market place, technological advances, disruption of key relationships, over dependence on one customer or key product and poor sales planning are all major contributors to failure.

Two critical planning issues are, quantity and quality.

QUANTITY - The almost sickening pace of ever-changing market conditions means annual sales plans (and budgets) are a thing of the past. In the current environment ‘living’ (continuous) plans, or at least quarterly targeting are needed. How quickly do motor vehicle models change, telephone systems evolve and computers become outdated? How quickly does a fickle customer base move to a new brand or make a substitute buying decision? Mechanisms for adjusting to an ever-changing reality are a must.

QUALITY - When the sales plan is done who is involved? It should be the entire executive team supported by all the sales staff and any outside consultants that contribute to the sales and marketing efforts. Advertising agents, marketing and PR consultants and yes even the financial advisors, economists and political scientists. All departments must get on board with the concept that ‘the sales department is not the whole company, however the whole company had better be the sales department’ and that...

‘THE ONLY REASON A COMPANY HAS TO EXIST IS TO SERVE A CUSTOMER’

Changes in the market place… 

Hotels can provide a great example of market place myopia and a reluctance to walk away from a traditional perspective. To start with, say we decide to focus on catering to the government sector which through budget constraints suddenly decides meetings, conferences and expensive ‘private room dinners’ are out. How about if we rely on the Japanese tour markets and the economy collapses and oops no customers and a lot of highly paid Japanese speaking staff who are doing little more than eating up the payroll. What if we set ourselves up as a five star super deluxe property that caters to high-end corporate customers and September 11 event occurs and everyone starts teleconferencing? The problem is that while, say the government sector is flourishing; often too little attention is placed on developing other markets. Constant repositioning and adjustment to capture market opportunities and close monitoring of market trends is a must to survive in today’s volatility. 

If we are going to cater for an ever-changing future we need to constantly train to meet that future. 

Many organisations (including hotels) don’t seem to invest enough in modern business methods and particularly in modern selling and lots of sales staff still do boring ‘presentations’. Example: I remember a tourism publication that stated that Thailand (a great holiday destination) is going to loose major market share because it can’t find trained managers to run its tourism related businesses. I mean the entire country may well suffer because a few key industry operators are too short sighted to invest in the ‘soft skills’ needed for the future. Thailand’s woes were exacerbate then of course by the political turmoil that racked the country for some years.

Corporate culture and fine traditions are great however…

‘WHEN THERE IS A PARADIGM SHIFT EVERYONE GOES BACK TO ZERO AND PAST EXPERIENCE CAN MEAN NOTHING’ (Joel Barker)

A big danger that I have seen overlooked time and time again is … too much business from one customer. For hotels (as an example) this seems to be the problem of constantly struggling with big time ‘introducers’ whose buying power is so great they are able to command the market at minimal profit whilst reserving large percentages of a hotels inventory. I think perhaps the evolution of the modern independent traveller using direct ordering through the Internet may in time put paid to this lot. Hotel groups selling across the 3, 4, 5 star and super deluxe properties might give us all a clue on how we all need to think. Capturing different market segments and reducing our reliance on one or two major introducers should be a commandment. (I can never understand why more hoteliers don’t design individual properties that cater for a broader spectrum of customers, perhaps along the line of some cruise ships).

Sound business practice also means sales people must think ‘big picture’ and to make sure they/we are acting as a ‘company team’ and that we are putting the organisation’s overall results ahead of our own ‘small area’ priorities. A friend in the event management business recently told me that he had two hotels in the same group arguing over his business and cutting each others prices and he was both amused and perplexed by this situation. He had decided that in future he was going to use another chain as although he had made a short term gain, the hotels sales team’s behaviour made him nervous and question their professionalism and he felt uneasy about accommodating his customers in either hotel. Were the sales operators of these organisations acting as a team and looking at the big picture… maybe not and what damage was done to the long-term result for the organisation and its prospect for future sales?

SELL THE COMPANY, NOT JUST THE PRODUCT AND ALWAYS THINK... ‘RELATIONSHIP’!

Poor sales and marketing and the role of intelligence…

Company difficulties can also arise from insufficient understanding of the competition and not knowing one’s strengths and weaknesses in relation to those of our business rivals and in relation to a changing market. This lack of knowledge and understanding will inevitably lead to us forfeiting opportunities. How much competitor analysis is undertaken by those businesses that fail? I suggest little or none. (Do we do competitor analysis and market trend analysis on a regular basis… no huh)? Managers need to carefully look at the total market for new business opportunities rather than just trying to do the same old same old at 110%. 

We must avoid becoming blinded by our own perspective (or lack of perspective) on the market or of becoming too immersed in operational details that can cause us to lose sight of how the overall operation is progressing. Lets face they guy on TV who sometime back said ‘Germany will never again be a leading economy if it insists on continuing to make manufactured products that no one wants to buy’, was right. The best production in the world won’t save us from the bloody-minded attitude that “this is what we do and we don’t want to change”. 

On a more light hearted note, maybe we also need to look at the ratio of sales staff to administration and production and perhaps sack two accountants, four engineers, fifty percent of the HR department and anyone we are carrying on the payroll out of some perverse sense of loyalty. Then spend the money we save… to hire, train, encourage, cajole, push or even glorify the sales team. That’s where to money is… with their ‘best mates’… “THE CUSTOMERS”

SHARP CORPORATION OF JAPAN STARTED OUT MANUFACTURING BELT BUCKLES AND MOVED ON TO MECHANICAL “EVERSHARP” PENCILS AND NOW…?

ERICSSON ONCE SOLD ARMY BOOTS AND TOILET PAPER TO THE RUSSIANS.

If your company is not constantly reinventing itself can I suggest your need to move to an organisation that is. The big question we all need to ask… Is my organisation moving with the times, does management have a sound vision of its future and is the vision appropriate for where the world appears to be heading?

More on business on orglearn

How To Build Trust in Organizations with Peers Colleagues and Bosses

In your communications be specific and direct. Don’t avoid the “elephant in the room”, bring issues it to the fore early and often. If problems are occurring or others are not performing as you wish let them know with tact and in private. Use a calm and logical approach to your communication and avoid abruptness.

Share credit with those that assisted in wins you have had, even go to the point of slightly overstating their contribution or as someone said “when in doubt, share”.

Resolve issues or solve problems through direct communication at with person causing the difficulty, don’t bring in the boss or others. One to one is best.

If you are doubtful about your role in a project or proposed work related activity, tell other stakeholders of your concerns upfront. If other duties and work issues overtake you when engaged on an ongoing commitment, advise of the difficulties you are having, or going to have as soon as you believe problems will occur.

Spend non-work time networking with your colleagues, don’t just wander off alone during breaks and always be involved in any volunteer activities your organisation sees as worthwhile.

Don’t ask loaded or rhetorical questions, ask only “non-assumptive” questions with couching them in any “spin” or as a way to push some secret agenda.

Make only promises you can keep and if events overtake you admit it don’t avoid the issues.

If your organization has a formal lines of authority responsible for particular tasks or to resolve issues don’t step outside the existing system and practice full disclosure of facts and potentially useful information.

Admit to your mistakes and never rope others into your problems, don’t try to share the blame by pushing your real difficulties onto, or by finding fault in others. NEVER discuss (read gossip) about another employee or department particularly if they are having difficulties… NEVER gloat or demonstrate that you are enjoying the demise of others.

Be on time, make decisions, don’t procrastinate and show the strength of your self-belief and character by being willing to be wrong and live with the consequences. 

Don’t scoff at another’s opinions or efforts and add support to those in difficulty. Always look at the positive intent of risky approaches to new ways of doing things and if asked honest opinions or advice with support for the fact that others are willing to try a new approach.

Have enough self-control (and demonstrate it) to overcome immediate or short-term feelings in the interests of maintaining ongoing and long term associations.

Public communication and behaviour are a small tip of a very large personal iceberg of values and belief, be willing to question your belief system and grow as a person. Don’t dogmatically stick to what you were indoctrinated with as a youngster, be will to change your perspective.

TRUST IS ESSENTIAL FOR LEADERS

The following is a list of words that others need to be using when they describe you if you are to gain and maintain their trust; 

committed, confident, fearless, communicative, predictable, reliable, correct, forgiving, clear, factual, unbiased, respectful, reasonable, confidential, contributing, even, defining, accountable, interested, calm, resolute, tactful, sincere, frank, listener, patient, answering, sharing, fair, timely, honest, decisive, neutral, competent, consistent, explicit, responsible, transparent, close (near), willing, collaborative, accurate, graceful, helpful

A final thought on trust… always seek win/win solutions. Understanding the elements of trust and being able to sincerely build trust is essential for effective leadership. Trust me!?

Sales and Marketing Are Different

Sales

Sales is about face to face personal contact with new and existing customers to present the buying proposition. 

Sales implements strategies for overcoming resistance to your product or service and provides feedback to marketing and operations. Critical functions are networking and building long term relationships. Sales is primarily about closing the deal and completing the paperwork. The personal attributes of a sales professional are quite different to that of a marketing professional. Successful sales people must be great with human relationships, have strong personalities, high levels of emotion and drive and be highly motivated and able to handle getting a "no". Sales people need to be mentally tough.

Marketing

Marketing is responsible for defining the target market preparing and analysing statistics to define potential and is responsible qualifying prospects. 

While marketing concentrates on who to call on sales concentrates on executing the call. Marketing also looks at customer touch points and develops strategies to improve the customer experience. Marketing is about arming sales reps with the collateral, web presence and promotional programs needed to make a compelling case for doing business with you.

Marketing is about by researching and reviewing customer wants and needs, along with analysing sales successes and failures in order to reshape product/service offering to meet customer demands. Marketing assists in developing meaningful loyalty programs, reviewing customer experiences and crafting entirely new product and service offerings.

A typical marketer will be able to sit and do analysis for long periods of time and be able to test sales activity and  suggestions against statistical evidence to assess risks and/or opportunities. Personally traits of marketing professionals differ dramatically from that of sales professionals. 

references: http://blog.straightnorth.com/difference-sales-marketing/

http://www.orglearn.org

Functional or Chronological Resume, Which is Best?

I recently read an article that advocated having a functional resume rather than the  traditional chronological resume. The reasons given were particularly in relation to  those that are "in a career transition", have employment gaps or suffer from "little experience". The points were well made and the arguments presented were, from my point of view, quite sound. What really got my attention was the large numbers of comments that disagreed with the writers suggestion.

Typical of the comments were: "…recruiters dislike functional resumes and you need to get through the recruiter's screen first. I strongly recommend a chronological resume…" and "… I'd be really careful about this. Most hiring managers hate functional resumes, because they immediately make us wondering what the person is trying to hide; they look shady."

I decided to conduct a resume preference survey and my findings are below. I will admit the samples are small however no less than the number of commenters on the original blog post.

Now I'm not sure whether this adds to the difficulty of choosing which style is best however it is worth further discussion and perhaps yip need to send of both formats if you are unable to "suss out" which style is preferred by the recruiter you are approaching.

I would like some comments and the style I prefer is here: resume example.

Sales: The Number One Top Tip

Prospective buyers are unlikely to come straight out and tell you what they want from your product or service. If we are going to sell, or help a prospect with their buying decision, we need use an effective 'technique' to uncover their real reasons for buying.

There is only one way to effectively find out what is going on in our prospects head… ASK QUESTIONS!

As I have said before… "Good questioning technique is the most important (and powerful), competence that salespeople can develop. FACT: People are usually SKEPTICAL ABOUT WHAT THEY ARE TOLD however, they generally BELIEVE WHAT THEY SAY. "

So…. If salespeople ask the right questions they increase their chances of uncovering the prospect's real desires or wants. The additional benefit is they usually end a with the prospect believing that they are credible and that the salesperson's product information or ‘sales’ claims are truthful.

Remember before you start asking a prospect questions you should ask for permission to do so. A good basic start is, "In order to help you find what is best for you do you mind if I ask you a couple of questions". It's all about good communication and human relation skills.

More sales stuff on: http://www.orglearn.org.

Entrepreneurial Business Checklist

Today more than ever business success depends on two distinct and inherently different issues, those of efficiency and effectiveness. 

"Efficiency is concerned with product and service delivery, quality improvement and cost control, while effectiveness is more concerned with opportunity recognition, knowledge acquisition and creativity. The need to be more entrepreneurial cannot be argued however, what are the real differences between old style organisations and truly entrepreneurial organisations." orglearn

Quote: “doing things better V’s doing better things”. (unknown)

So is your organisation entrepreneurial by nature? The following table should provide some insights:

So how does your organisation rate? Is it set up to take advantage of an entrepreneurial future or is it locked in the past and strangled by a bureaucracy just struggling to maintain the status quo? 

The Three Sins of Poor Time Management

Failure to Delegate. Many business operators, or mangers for that matter, don't fully utilise their human capital. Actually I think the term "human capital" perhaps to change our attitude should be referred to and thought of as a pool of "human potential". The old problem of effectively delegating tasks still seems to be badly handled by many. Although initially time consuming, in the longer term delegating tasks will free up vast amounts of of time and create opportunities for other vital forward thinking to activities. Delegation of course will also allow for much more valuable engagement with colleagues and staff. More here if you want it: How to Delegate 

Poor Prioritisation. Anyone in business simply must prioritise their activities by separating things that have to get done from those that should be done, The problem of course is that often lots of tasks come up that are easy, particularly in the "should be done" pile and we are tempted to do what is easy rather than that which is important. Setting Priorities, more here if you want it: Setting Priorities See point 8

Lack of Streamlining. Great time management gains can be made by streamlining various aspects of daily workflow. Some formal review of 'standard' procedures needs to become a regular part of the work culture. Outside partners such as service providers, suppliers and customers can be enlisted to help with process improvement if you are not into a full blown total quality management approach. More on Management here, if you are interested: Management Short Course

Is the Need for Quality Being Overlooked

Some years back Total Quality Management (TQM) was a prevalent management objective.  Today it seems to have fallen out of favour and other issues seem to take precedent. 

Should we go back to basics and revisit the principles of TQM

What is "Quality"

Quality is physical or non-physical characteristic that constitutes the basic nature of a thing or is one of its distinguish features, ‘Webster's New World Dictionary’.

Quality is fitness for use, ‘Juran’.

Quality is conformance to requirements, ‘Crosby’.

Quality should be aimed at the needs of the customer, present and future, ‘Deming’.

Quality is the loss (from function variation and harmful effects) a product causes to society after being shipped, other than any losses caused by its intrinsic functions, ‘Taguchi’.

Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs, ‘International Standard Organization’.

Quality can be quantified as follows:

Q = P / E 

where, Q = quality, P = performance, E = expectations

If Q is greater than 1.0, then the customer has a good feeling about the product or service. Of course, the determination of P and E will most likely be based on the perception when the organisation determining performance and the customer determining expectations.

I must say I dealt with a few business lately where the quality of service if not the product has left me feeling less than happy as a customer.

So as I started perhaps its time for some businesses to re-visit these principle particularly those in the tach industry and those that primarily operate online.

Ric http://www.orglearn.org

Management: Bird That Didn't Fly South

The bird that didn't fly south for the winter Age old story with a moral

A small bird sat in a tree on the bottom branch. He wasn't happy there, however being one of this summer's hatchlings he was forced to stay on a lower branch by the older birds.

When it cam time to fly south for the winter he decided to let the others go and stay behind so he could sit on any branch he wanted.

As the cold weather and snow set in the bird began to freeze.

Eventually he fell to the ground.

As fortune would have it a bull passed and dropped a warn fresh cow pat on him. The warmth from the pat thawed the bird out and he was of course happy and revived and began to sing. Unfortunately the farm cat heard the singing and came to investigate, found the bird and pulled it out to eat it. Luckily enough the bird escaped and flew to the very top of the tree.

Well of course he sang and song about his good fortune. After some time the cold got him again and he fell out of the tree dead and frozen!

Four morals to this story:

1. Someone who puts you in the shit isn't necessarily your enemy.

2. Someone who pulls you out of the of shit isn't necessarily your friend.

3. If you're happy and contented in a pile of shit, keep your mouth shut.

Most importantly:

4. Bullshit might get you to the top of the tree however, it wont keep you there!

www.orglearn.org management and career success tips!

Why You Should Fund Your Managers to Join Rotary

The Managing Director said "you are joining Rotary" …"huh" I said that's for old blokes! Well now I'm an old bloke and I've been in Rotary for over 30 years... So what you may ask…!

I am now a member of my eighth Rotary Club and I have also been a member of clubs in five countries. So what has Rotary taught me and how might it help developing in your managers.

There are obvious advantages that come with being a Rotarian and they're not just about the old "its just for business networking". Sure that is an obvious outcome however I have seen plenty of inept members almost destroy the positive side of the opportunity by their behaviour in their Rotary club. If you join a club with the view of just selling your products and services to other members you may well be very disappointed. I have however over the years sold are large proportion of my services both as a financier and corporate trainer through my Rotary connections. What I have said is not contradictory.... its more a matter of how you go about things. People like to deal with individuals they can trust and in Rotary you gain trust and respect from the efforts you put in on behalf of your club and of course the projects they are involved in. 

Firstly through involvement in the club projects you are exposed to how "true" and effective teams work. Because all members are volunteers there are no individuals with legitimate authority they can rely on. This also teaches you sound human relations skills as you need to work well with others who are likely to be fairly self sufficient and competent in their own right. You will also learn how to sell as you will need to sell you ideas on how to do things and also to sell your particular point of view on what should be accepted as a legitimate use of your time and what is not.

A Rotary club is run somewhat along similar lines to any company or organisation and if you accept positions in your club you will gain experience in financial control, secretarial duties, directorships and of course as president, a CEO. Even the position of Club sergeant teaches you crowd control and most of all... public speaking. If you think about it all activities involved in Rotary have parallels in your career however Rotarians will usually be a little kinder about helping you overcome your shortcomings than your company or boss will. If you are always late for meetings you may cop a small fine from your club sergeant however if you constantly do that at work and you may well get fired. Which way would you rather learn timeliness.

In Rotary you will be exposed to all kinds of leaders from autocrats to democrats. Learning how deal with a range of individuals in a work type scenario will always be valuable.

Where ever people gather there will be politics so you should (or will) learn and develop a great deal of political savvy as well. All clubs have disputes over issues as simple as where to meet, to as complicated as which types of charity or projects they should support or not. There are always more in need than there are resources available to help. Here you learn how to make hard decisions that really can impact on the lives of others.

Rotary is great training for managers!