Avoiding the Hail-Mary Strategy

Posted on May 22, 2012 by sreese

In the world of sports, a “Hail Mary” is considered to be a long shot, last second, desperate attempt to overcome what looks to be an inevitable defeat. The same can be said in the world of professional selling, although in sports the attempt is at least made while there is time remaining on the clock. Some sales professionals wait to pull their “Hail Mary” long
after the defeat has already happened.

I see this approach in sales organizations of all sizes and industries. The salesperson waits until they have exhausted every resource and the client has already told them they are headed in another direction before they bring in their C-Level executive to try to save the day. The tactic rarely works but it seems to be the standard protocol for most organizations. The thinking is that if a big deal is going to be lost then one must bring in the top execs so they can, in effect, be part of the losing effort. But since the goal is to win, key execs will want to save the day and it is up to you to give them a fighting chance to do so.

1. Bring them in earlier in the sales process. Provide visibility (written, verbal, presentations, etc) to them on important opportunities and strategic accounts so they remain connected and therefore much easier to involve if needed. If they are in the loop on the information flow then they are also likely to be proactive in reaching out to the sales executive to provide ideas and suggestions. They want to be involved before the deal is lost.

2. Develop a strong Valid Business Reason to bring them into the client.
Don’t wait too long to bring them in and don’t have the call be around the fact that you already lost and now you want your executive to try and turn everything around in one call. Your best chance is to involve them earlier (point #1) and then have them speak to a specific concern or issue. For example, maybe the client is not satisfied with your international strategy so set up the call by letting them know that your C-Level exec will take the time to outline the company’s strategy and provide insights into the direction
moving forward. This also helps keep your executives on point and helps them
avoid having to play the role of salesperson.

3. Prepare for the backlash. If you involve a very senior executive in one of your opportunities and they find out that the deal is already lost, prepare for some difficult discussions coming your way. Without providing an accurate picture of the real lay of the land, the senior exec now feels he’s been set up as the person that just could not close the deal. They need to understand exactly how the company is positioned and it is important to be factual instead of aspirational.

4. If you have tried everything and the client has still elected to go a different direction, then bow out gracefully. If you are truly committed to helping customers solve problems and capitalize on opportunities, then even if you do not win you need
to hope that the client has success moving forward. I have seen companies subscribe to something bordering on a “scorched earth’” strategy when they lose. They will try to create false delay tactics, ask for some additional time due to some sort of mistake, claim there were some problems with the way the process was managed, etc. It is much more important to move on with integrity and professionalism if you ever expect that client to consider doing business with you in the future. Believe me, you want to preserve every relationship you can if you want to have long-term success in the profession of selling.

It can be a great idea to bring your CEO into an opportunity, even when you are just barely holding on. But if you wait too long you do so at your own peril.

Good luck and good selling,

Sam

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Indecisive Decision Makers – Part 2

Posted on March 22, 2012 by sreese

Everyone knows that today’s buyers are better informed and need much more than product descriptions and pricing creativity from the salespeople who call on them. But just cleverly packaging product and pricing speak, and trying to put it into a solution bundle are no longer enough. Customers demand experts who can connect the client’s issues and challenges with the capabilities of the salesperson’s firm.  This can’t be accomplished through predetermined talk tracks or carefully timed benefit statements.  The salesperson needs to be acutely aware of what the client is trying to accomplish and how they are going about doing it.

This is especially true when dealing with the “politician” leader who has frustrated even the best salespeople.  This type of leader feels it’s his job to poll the team and take votes on which direction they should head.  Some will make decisions by considering the majority of votes (sure to make the minority voters unhappy) while others will listen to the loudest detractor.  In either case, it is unlikely a decision will be made and it is even more unlikely that a decision will be successful.

The real issue is that the leader does not have a good framework on how to make decisions.  If the salesperson can provide them with a solid framework, then the leader will be able to move forward with confidence and the salesperson will be able to address real issues.

For example, when you find yourself in a position where you have to convince every single person on the team that you are the provider that they should recommend, it can be much more powerful if you work with the leader to develop a set of criteria his employees can use as their evaluation platform.  So instead of debating the direction or vendor they should partner with, the evaluation platform can create some structure that allows the leader to get more constructive and precise feedback. Some examples:

•    They have a good understanding of our business
•    They have experience in our industry
•    They have a successful track record with their solutions
•    Their solution is non- disruptive
•    They listen well and tailored the solution to our requirements
•    They have the expertise to provide a lot of additional value

This sort of criteria can be a great framework for leaders to get feedback from their employees.  A salesperson still has to do a lot of heavy lifting to convince each influencer of his organization’s capabilities, but the criteria put the power of the decision into the hands of the leader.  The leader dissects the key feedback components he wants from his team so that he has better information to make a decision.

You will notice that the criteria do not ask each person for their recommendation on the supplier or their opinion on whether or not the price seems commensurate with the value. These are decisions that leaders should make.  Instead, the evaluation platform crystallizes the feedback and requires people to be more precise with their thoughts.  This is the kind of input every leader relishes.

In the future, do not retreat or redouble your efforts when you are faced with the indecisive leader.  Instead, work hard to truly bring some additional value that may help the leader improve the way they make decisions.

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Indecisive Decision Makers – Part 1

Posted on March 20, 2012 by sreese

I am not sure there is a more frustrating situation for a sales professional than the one where the Economic Buying Influence actively supports your solution but can’t move forward because his or her team wants to go in a different direction.  The salesperson seems to have done everything right in getting the key decision maker to recommend his solution, but the deal does not happen because the leader on the client side just doesn’t want to go against some of the recommendations of his people.

This seems to be a situation that has become much more common in today’s tumultuous business environment, probably because of the accountability that accompanies every key decision.  But for some leaders, this is a style that has served them well.  It can represent a thoughtful leader that values the insights and observations of his team.  It sets up a situation where the leader tasks the salesperson with winning the hearts and minds of his employees in order to be awarded the business.  But, it usually can be an indicator of other problems in the client organization.

If the leader says that they actively support your solution but they can’t move forward because one or many of his employees feel differently, then this is most likely an organization that holds on to the status quo and one that probably has a full graveyard of unsuccessful initiatives.

The good news is that this can be a great opportunity for the sales professional to bring additional value.

More on how to work this situation in your favor in my next post.

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How to Help the Rainmakers Win

Posted on January 26, 2012 by sreese

January is the time of the year where executives start to worry about this year’s performance and begin to contemplate changes that can improve their chances of success (hint: they should have been thinking about this much sooner). The easiest target is usually the sales organization, and so many companies often arrive at the consensus that they just need to “upgrade their sales force with real rainmakers.”  It sounds pretty easy and compelling. Just go recruit some great salespeople and suddenly things will be growing again. Forget the product issues and discounted pricing problems. Customer service is over rated anyway. Marketing has generated virtually no interest; and the coverage model is all wrong.

Just hire some great salespeople and growth will return.  Not likely. Even sales superstars will not succeed in an environment that can’t support them.

While it is tempting to settle on simple solutions, the real truth is that when it comes to driving sustainable sales force effectiveness, there is a lot of heavy lifting that needs to be in place for the rainmakers to make rain:

  • Company-wide understanding of why customers do business with you: what is it they value? What makes you different and unique? How do they incorporate you into their overall strategic objectives? Do the other areas of the business understand these things and are they in alignment with the views of the sales force?
  • Disciplined processes for how the sales force finds new opportunities, develops these opportunities and turns them into customers, and then manages these important clients moving forward. This can’t be left to chance or to the individual whims of each and every salesperson. In fact, until the company decides on what they want a successful sales call to actually look and feel like, it is really impossible to figure out if a new sales hot shot would even be the right person for the job.
  • Clear definition of the role of sales management: Their role in development?  Value of leadership skills? Understanding of how to execute on the company strategy?
  • Territory planning, incentive systems, technology enablement, alignment with marketing, etc.

Top salespeople perform best when they have a strong infrastructure to support them. All of the above items I mentioned are components of the company’s selling system and they are all interdependent on each other. Tweak one area and it will affect all of the other areas. So, while I continue to hear about the necessity to muscle-build sales organizations, I want to continue to urge executives to build a strong foundation that helps the rainmakers win. Driving consistent performance in a sales organization is a lot more complicated than just hiring new salespeople.

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What the Best of the Best Have in Common

Posted on December 5, 2011 by sreese

This is the time of the year where we see the leaders of many of our clients reap the benefits of their hard work and commitment. It is really exciting and satisfying to know that we helped a client achieve his or her business objectives. And it is really easy to see the difference between the sales leaders who are going to succeed and the ones who will not. Often times, the most obvious indicator is directed toward the status quo; laggards are tempted to stick with it and performers know it must change. On the surface this seems so easy to understand and easy to execute on, but I have seen how hard it is for some sales leaders to change the status quo and use this as a pivot point to success.

The best of the best sales leaders have a lot of commonality in the following areas:

Accountability. Not just accountable for results, this is already assumed by everyone and this takes no courage to agree that one is accountable for results. Instead, top-performing sales leaders take accountability for their company’s strategy of accessing clients and prospects. They take ownership for the way they will approach prospects, the way they will manage deals, and the way they will build relationships with key accounts. This is their domain and they step to the front of the line and lead the charge.

Comfort. Top-performing sales leaders do not view the creature comforts of a high-level executive as permanent. They know that they will be the first executive put on the spot if the performance of the company gets off track. They are wise in that they know their role is dramatically different than their senior executive peers, and any long-term planning can only be addressed if there is a commitment to continued short-term results.

Precision. Running a mid-sized to large sales organization cannot be done by a few exciting presentations and scripted memos. Top-performing sales leaders spend time with their sales teams and their customers so that they can bring precision to the areas that are ambiguous. They get close to the details that derail deals and to the nuances of their clients. These sales executives then coach their people to be much more precise and specific when discussing account strategy or when dealing directly with clients. They know that ambiguity impacts scalability.

Strategy. The best sales leaders understand how to connect strategy with daily execution. They are great at balancing the present with the future and keeping everyone focused on the value they are bringing to clients. Tactics without strategy simply lead to a ton of action and some scattered success. The leaders who keep strategy at the forefront are very purposeful and focused, and this helps their organizations understand how to continue to prioritize.

Respect. I have found that top sales leaders really respect the front-line salesperson and they understand how critical this person is to the company and to their clients. This respect is what insulates the front line from wacky new compensation plans; arbitrary territory alignment and nonsensical account reassignments. The best sales leaders have respect for the discipline, creativity and ingenuity required to be a successful salesperson. They know that sales is not the simple order-taking function that is a necessary evil. Great salespeople drive the business.

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Automatic Customer Management? That Just Isn’t How It Really Works

Posted on October 27, 2011 by sreese

Technology has done a lot to help the salesperson.  Being able to access information quickly and improve your knowledge of the prospect or customer in a short amount of time is valued by all professional sales executives.  And now the iPad and other tablet devices make it even easier to be more productive out in the field.  But as frustrating as it is to even the best minds in technology, automating the entire sales function doesn’t seem to be working.  In fact, at a recent conference in Silicon Valley, I noticed that the phrase sales process is starting to be used in a way that only pertains to the internal functions and processes required to support a sales situation.

Top technology consultants and training companies are touting their ability to automate the sales process, but, upon closer examination, they are only referring to the inward looking processes. Like how a lead moves from qualified to order; or how compensation is aligned to incentivize the sales organization; or even how tweaking job descriptions and role design can optimize the sales process.  All important stuff, but no way do any of these things work with any sort of efficacy unless you have well-executed Customer Management Processes (I used to say sales processes, but now I need to further distinguish it.) that enable the sales force to consistently identify new opportunities, manage current opportunities, and manage existing client relationships.

If only customers could behave in a perfectly linear manner, then it would be easy to develop all sorts of tools and systems to maximize sales efficiencies, but that just isn’t how it really works.

How it works is that it all starts with the customer and what they are trying to accomplish.  To figure this out accurately, an organization needs to have a plan for accessing clients and working with them effectively to understand them better.  This is where we come in to the picture.  We install a system that drives sales strategy and sales execution. Only when this is in place will it be possible to implement technology solutions, compensation plans, organizational adjustments, coverage models, new hire programs,  etc., with any sort of precision.

And, what sales leaders often forget is that they need to always build their strategies from the customer on up, because they need to get performance on the uptick right away.  Sales leaders do not have the luxury of developing long-term plans that will not come to fruition until several years out.  They need to perform immediately, and getting some momentum and success along the way is how they gain credibility to invest more in their organization.

It may be a little murky on who in an organization really owns sales force technology or compensation structures, but there is no mystery that the sales leader owns the strategy for accessing prospects and clients.

Hey sales leaders, this is where you need to start.

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Have Credibility, Will Win

Posted on October 11, 2011 by sreese

Credibility is a funny thing.  It is an essential element for any sales professional because it is almost always a requirement if one is going to be successful in securing a new business relationship or preserving an existing one.  Credibility can be earned. Credibility can be transferred. And credibility can be established by reputation.  Sounds simple but it isn’t.

I overheard an airline lounge discussion between two overconfident salespeople talking about the best way to grab credibility fast.  They talked about opening up meetings with new clients by outlining their background and resume highlights right from the get go.  They thought that their individual pedigrees were so impressive that clients would roll out the red carpet and give them their complete attention. The funny part is they justified this tactic not working much because “some of these clients just don’t get it and they don’t want to do business with people who don’t understand the value of their unique backgrounds.”  This sure limits the number of potential clients.

This is backwards thinking and can often times lead to a clumsy discussion.  Customers care about their issues and problems first.  It would be better to make a connection to solving similar problems with other clients rather than trying to impress them with an illustrious career description.
Next, clients want to know about the history of your company and how your company is different.  They want to know that your company understands their industry and their issues.  Now that the salesperson has communicated a fit between their company and the clients’ company, it becomes really powerful to explain any individual expertise that is applicable to the client (industry, position level, business problem, etc).

Top salespeople resist the temptation to get into their individual background too early because they know it is much more compelling once the client gets some initial comfort with their company.  Top salespeople also understand that you earn credibility by listening really well; by asking questions with a level of precision and by staying Win-Win with the client throughout the meeting. Top salespeople also make sure they constantly check to make sure their credibility is still intact. Something may have happened since the last meeting. Credibility may not have been transferred from one contact to the new contact. A competitor may have cast doubts on your company, and so on.  Top sales professionals understand that their credibility is directly correlated to their chances of winning. If you don’t have credibility then you don’t have a new client.

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What’s New About Being Customer Focused?

Posted on September 27, 2011 by sreese

It seems like this is another buzz word that CEOs seem to be touting and investors seem to be praising.  But, rather than just paying it lip service, there needs to be a real execution plan to become customer focused.  It has to be intertwined into the day-to-day interactions your people are having with clients and it needs to be operationalized within all of your customer management processes.  The way companies identify new opportunities; the way they manage opportunities and turn them into clients; and the way they manage relationships with existing clients can’t be done with a hope and a prayer.  The sales force really is the clearest brand representation for most companies, so it is imperative that every salesperson walks the walk and talks the talk of their company’s customer-focused initiatives.

To many, being customer focused 20 years ago meant educating clients on your products and helping them realize that they needed them. Ten years ago the definition changed toward understanding customer requirements in more detail and then providing an answer to what they were asking for.  Today, knowing product capabilities and understanding what the client wants are really just the basics of professional selling.

Customer focused today means bringing all of your experience and ideas so that you can help clients craft a solution that is better than what they had originally conceived.  It is understanding what they want to fix, accomplish and avoid and making sure that your solution addresses this and does it in a way that effectively integrates with their strategy.   Sometimes this means that one needs to take a provocative point of view in order to help the clients truly achieve their objectives.

Rather than being a professional order taker, top sales experts will let their clients know if they feel the client is not pursuing the ideal solution.  Talk about a way to differentiate yourself. By bringing the combined expertise of your company to the table with a client and helping them to understand why you see a better way to get something done, this is truly customer-focused selling!

One more thing, today’s definition of customer focused means that the old adage of shutting up and not talking yourself out of an order once a client says yes isn’t the best approach.  If a client has not thought through some things that may pose a potential problem to the success of their initiative, customer-focused sales professionals point this out and help solve the problem.  Now you have a real client rather than an order.

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Big Items that can Drive Sales Productivity

Posted on July 25, 2011 by sreese

It is amazing how the same issues really resonate across the globe when it comes to driving the effectiveness of a sales organization. I just returned from the last stop of a trip that included customer/prospect meetings in Frankfurt, Prague, Chicago, Sydney, Melbourne and Denver and there is great commonality among sales leaders about where they see the biggest opportunities for improvement:

  • Become more customer and solutions-oriented rather than pushing products
  • Make sure they are positioned well in accounts and prospects, especially when it comes to aligning with Economic Buying Influences
  • Gain leverage in their organization by improving the coaching and leadership skills of their managers
  • Reliably find and hire top performers who can work well within their specific company environment
  • Improve the alignment between the sales and marketing functions

While none of these above objectives are really earth-shattering revelations, it is interesting that this collection seems to be on everyone’s mind. For years, companies have talked about being more solutions oriented but now I see it being executed upon rather than just talked about. It only takes a couple of losses or customer defections to understand the importance of being positioned at strategic levels and many companies have felt this pain over the last couple of years. Coaching is back to being in vogue where as five years ago, it was considered by many to be “soft” and not results oriented. Locating top performers who can succeed in a specific company is becoming much more of a science and one that can be greatly improved with quantifiable assessments. And, sales and marketing continue to go in separate directions in many companies even though the payoff for alignment is huge.

The hard part is not figuring out the big items that can drive sales productivity but rather it is about putting real plans in place to attack the items head on. It is a lot easier to pontificate what is wrong but doing so will certainly not drive any real results. The companies that I see winning are the same ones excited about talking through the details of their sales execution initiatives. While they have a clear strategy on what they are trying to do, the heavy lifting is going into the nuts and bolts of the plan and making sure everyone in the sales organization knows exactly what is expected of them. Companies that are passionate about customers, committed to discipline when it comes to executing on their strategy, and focused on achievement continue to win in every continent.

 

It is amazing how the same issues really resonate across the globe when it comes to driving the effectiveness of a sales organization. I just returned from the last stop of a trip that included customer/prospect meetings in Frankfurt, Prague, Chicago, Sydney, Melbourne and Denver and there is great commonality among sales leaders about where they see the biggest opportunities for improvement:

•             Become more customer and solutions-oriented rather than pushing products

•             Make sure they are positioned well in accounts and prospects, especially when it comes to aligning with Economic Buying Influences

•             Gain leverage in their organization by improving the coaching and leadership skills of their managers

•             Reliably find and hire top performers who can work well within their specific company environment

•             Improve the alignment between the sales and marketing functions

While none of these above objectives are really earth-shattering revelations, it is interesting that this collection seems to be on everyone’s mind. For years, companies have talked about being more solutions oriented but now I see it being executed upon rather than just talked about. It only takes a couple of losses or customer defections to understand the importance of being positioned at strategic levels and many companies have felt this pain over the last couple of years. Coaching is back to being in vogue where as five years ago, it was considered by many to be “soft” and not results oriented. Locating top performers who can succeed in a specific company is becoming much more of a science and one that can be greatly improved with quantifiable assessments. And, sales and marketing continue to go in separate directions in many companies even though the payoff for alignment is huge.

The hard part is not figuring out the big items that can drive sales productivity but rather it is about putting real plans in place to attack the items head on. It is a lot easier to pontificate what is wrong but doing so will certainly not drive any real results. The companies that I see winning are the same ones excited about talking through the details of their sales execution initiatives. While they have a clear strategy on what they are trying to do, the heavy lifting is going into the nuts and bolts of the plan and making sure everyone in the sales organization knows exactly what is expected of them. Companies that are passionate about customers, committed to discipline when it comes to executing on their strategy, and focused on achievement continue to win in every continent.

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Latest Research Shows Troubling Trends toward Sloppy Selling

Posted on March 22, 2011 by sreese

I hope the first quarter is off and running with a great start for all of you.  Right now, many people I talk to feel there is a little bit of an economic tailwind that feels somewhat better than the last couple of years. I just hope this “high tide floats all boats” feeling does not make salespeople become too complacent.

So much was learned in the last couple of years.  You had to really listen to clients; really be creative with your solutions; really understand how to help the customer get value; and really plow through obstacles on a daily basis.  These skills work even better when the macro economy is not holding you back, but by the looks of our latest research report that we just compiled, it appears that even the best sales forces are starting to get a little sloppy.  We will publish our annual study and make it available on our website soon but here is a sneak preview of some things that really jumped out at me.

  1. Customer Satisfaction- last year 71 percent of the World-Class sales forces (think of them as the top 6 percent) had a formal process for measuring customer satisfaction, as opposed to only 32 percent for all of the others.  While the also-ran companies stayed at that same 32 percent, only 57 percent of the World Class sales teams now have a tight focus on measuring customer satisfaction.  This is a troubling trend that could have larger ramifications if the economy loses steam.
  2. Chasing No-Hope Opportunities- in 2010, 57 percent of the World-Class sales forces had an established procedure for stopping investment on deals that were not progressing.  Other firms only did this 17 percent of the time.  In 2011, once again the other firms remained at the same 17 percent (no wonder many companies seem to lose consistently) while the World-Class ones went down to 47 percent.  Not a huge drop but another signal that the same discipline is not being applied.
  3. Performance Reviews- last year 94 percent of World Class selling teams believed that their performance review process was constructive and helped them improve at their job.  This is in comparison to only 24 percent of the other respondents.  Once again the needle did not move for the others but the World-Class firms now report that only three-quarters of them still believe in their performance management system.  This is a pretty dramatic decline and another indicator that the top sales forces are fading and coming back to the pack.
  4. Coaching- 70 percent of the World-Class companies believed that their sales managers spent an adequate amount of time coaching each individual on their sales team, compared to only 18 percent for the other companies.  There is no change from the mediocre companies in 2011, but now only 53 percent of the World-Class companies believe it.  It seems that leadership and coaching were key tools that helped sales forces get through lean times but now they are losing focus as the economy gets back on track.

The bottom line is that great sales managers and top individual contributors know how to stick with the disciplines and game plan that worked for them when times were tough.  By applying these same principles during improved economic cycles, the opportunity for true breakout results is right there in front of all of us.  I urge all of you to continue to think of the economic landscape as uncertain, so that you can be certain about the precision you bring to your selling job every single day.

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