A Grimm Sales Story - Deja Vu Anyone?

george.jpgThis story was written when I first started the company in the mid 90’s by our PR consultant, John Lardge to mirror what was happening in the market. I kid you not, nothing has changed since it was written. The analogy still fits don't you think?

"Once upon a time, an American company and a Japanese company decided to have a competitive boat race on the Detroit River.

Both teams practiced long and hard to reach their peak performance. On the big day they were as ready as they could be.

The Japanese team won by a mile.

Afterwards, the American team became discouraged by the loss and their morale sagged. Corporate Management decided that the reason for the crushing defeat had to be found. A Continuous Measurable Improvement Team was set up to investigate the problem and to recommend appropriate corrective action.

Their conclusion: The problem was that the Japanese team had eight people rowing and one person steering, whereas the American team had one person rowing and eight people steering.

The American Corporate Steering Committee immediately hired a consulting firm to do a study on the management structure.

After some time and billions of dollars, the consulting firm concluded that "toomany people were steering, and not enough rowing". To prevent losing to the Japanese again next year, the management structure was changed into "Four steering Managers, three Area Steering Managers and one Staff Steering Manager" and a new performance system was implemented for the person rowing the boat to give more incentive to work harder and become a "six sigma" performer.

"we must give him empowerment and enrichment."

The next year the Japanese team won by two miles.

The American Corporation laid off the rower for poor performance, reduced their paddle inventory, cancelled all capital investment for new equipment, halted development of a new boat, awarded high performance awards to the consulting firm, and distributed the money saved as bonuses to the Senior Executive.

With the aid of Federal legislation requiring the Japanese to drill holes in their boats, the US Corporation is now optimistic about their new team comprised of eight lawyers in a four man canoe sharing two paddles."

Are Some Managers Feudal Overlords?

nesh.jpg“With great power comes great responsibility” is a quote from a movie that in the context of business is more than apt. On reading Paul McCords blog article entitled “Management Spy or Sales Aid – What is your Client Management System Designed to Do?” I quickly resigned myself to reading an all too often familiar story in how sales systems are deployed in companies as a tool to manage rather than improve.

There is one very inescapable fact that all businesses should quickly come to terms with and that is there is no system, including our own sales performance software, whose benefits to the company can’t be undone by the attitude in which the overall management of the company use it.

When a company uses a CRM system or Sales Performance System to micromanage their sales force it reflects a real flaw in the whole business process because the structure of the business is similar to a feudal system where management dictates the law and the sales force follow it. This reflects in the attitudes the sales force have in using the system as well as the attitude they have of their managers. If you read Paul’s article (and I strongly recommend that you do) one of the realities of this situation is that management don’t really have any idea of what the sales force think – there is a clear management/sales force divide.

One of the ways in which this can be avoided is in greater integration and involvement as a team unit. The goals of the company and the individual aren’t that dissimilar, everyone wants to improve and become better – so approach the forthcoming challenges together with this in mind. Simply introducing a sales system to the sales force and dictating that they use it will not garner respect or adoption to the system. However, communication through the buying process of the system and a genuine adoption of counsel from the sales force in what to look for, will aid in adoption because they are a part of the process and feel some ownership.

Is sales a mirror of our society's behaviour?

george.jpgI am sure I am not the only one getting telephone calls offering pensions, hospitality packages, electricity, gas, and telecoms that the recent feel guilty if not stupid for not taking up the offer - pure confrontation. Now look at the news, most of it is about confrontation, one country against another, one community against another, one gang against another.

So is it the sales profession that is questionable or attitudes within society? We are continually being told or telling others that we have got to build relationships with the customer. I don't know of many confrontational relationships that have flourished.

People buy from people, even if it is a numbers game. So the next time a telesales rep calls me at home, work, or on my mobile all I ask is that you give me a modicom of respect as a human being and stop treating me as a telephone number on your list that you have to dial.

History is made… Now let us look to the future

nesh.jpgToday is a historic moment as the world starts to comprehend the momentous decision that the American public have made in their presidential election. This blog has been purposefully devoid of politics for a number of reasons, ultimately because politics can be such an emotional subject that can potentially distract and affect discussions on any number of subjects. However in such a point in time it is very difficult to somehow divorce the euphoric feelings of such an event from what is happening in our lives even though here; we are thousands of miles away from what is happening.

Whatever your political affiliation what can’t be dismissed is that with this election the world’s collective holding of breath can now be let out and we can all look to the future, hopefully with a little optimism. What does this mean for business leaders, executives and sales individuals here in the UK? Directly, very little but I think that in a time where good news has been sorely lacking the positive affirmations of electing Barack Obama have great potential in inspiring us to achieve greater things even in harder times.

Who would have thought even five years ago that the US would elect an African-American president? The fact that this has actually come to pass surely illustrates the greatest lesson that we all can learn from and that is ‘anything is possible’.

Making the Number: How to Use Sales Benchmarking to Drive Performance

george.jpgAs an introduction to Sales Benchmarking I found this an intriguing read that kept me captivated as if I was reading a novel and wanted to know the outcome. It did not let me down as the outcome was sales success stories of orgainsations that have implemented sales benchmarking.

The book shows sales is not a black art and a mystery understood by very few who have the gift. It concentrates on showing how sales performance can be measured based on metrics developed for each part of the sales process, whether it is lead management, pipeline management, etc.

topgradingbook.pngThe best aspect of this is that sales experience is not sacrificed for pure analysis and that sales success needs process, experience, and benchmarking. Every effort is made to show how it can be achieved without hiding the fact that implementing benchmarking will take effort and commitment.

I believe for sales benchmarking to be established as a de facto tool for all sales, it must be accessible to all organisations irrespective of size. Therefore, my only question about the book is that it seems to be directed at large organisations. It would have been excellent if it also incorporated how small to medium businesses could implement benchmarking. Maybe this is the next book.

For more information visit the site for 'Making the Number: how to Use Sales Benchmarking to Drive Performance'