If your company is like many today, you may be experiencing the perfect storm of a shrinking market, shrinking margins and greater competition.  You may also be trying to deal with this storm without a surplus of available cash, or under conditions of tight credit.  Many business owners are frustrated with the lack of new business and the fact that few, if any, of their people relish the role of obtaining it.  Some currently have people in a selling role, but the results are sub-par.  They feel they are being held hostage by mediocre salespeople who may have valuable information or relationships.  The answer to these seemingly perplexing situations is YOU.  By virtue of a simple choice, you possess much more power than you might think to dramatically upgrade your Sales Team and grow now.  Upgrading to a true Sales Culture will not only affect your top line revenue, but can also improve your margins and net profit.  If you decide to go for it, here are simple steps that will be required: 

1.   Acknowledge the Brutal Facts:  If you want to upgrade to a powerful Sales Culture and reap the rewards that doing so will bring, it is vital to realize that the very people you would like to change have chosen to behave in the way are currently behaving.  They act the way they do for one reason–because they want to.  So despite your strongest desires, they probably will not choose to do what you would like them to do – Hunt and Close.

2.   Needle in a Haystack:  Hunters and Closers represent a microscopic portion of the “salesperson population.  In fact, only a very small percentage of people are really suitable for taking on any part of a sales or business development role.  

3.   Use Effective Tools and Processes:   You must be able to identify that small percentage of people.  This isn’t hard to do if you use the right types of assessment tools and processes.

4.   Raise Your Expectations, Trumpet Your Intentions:  This is not the time to be wishy-washy or vague.  You must clearly communicate your desire and commitment to create a powerful, lasting Sales Culture, especially to those who must carry part of the Sales Culture load.   For example, let’s say you want the regional managers at your professional services firm to go out and find local business customers, the customer service call center to become proactive by making outgoing calls, or your professional service providers to bring new clients into your firm.  In all of these cases, a common mistake management makes is to neglect the clear communication of expectations to those very people they would like to change.

5.  Appoint a Competent Culture Transformation Director:  Again, this is going to take steady commitment on your part.  But it will pay off.  Appoint someone who understands what needs to be accomplished as well as how to accomplish it.  Then hold them accountable for executing.

6.  Train and Coach:  Make sure that the chosen people are provided with the training they’ll need to succeed in this strange new world of selling and new business development.  The assessment tools can provide you with a development roadmap.

7.   Demonstrate a Path to Success:  Don’t throw them out to sink or swim.  Even with the most talented of salespeople, it is up to you to clearly define what it is they should do and how often they should do it.

8.   Don’t Try to Push Water Up Hill:  You must get buy-in from the people that will participate in your culture transformation.

9.   No Surprises:  You must be clear as to how their success will be measured.

10.  Hold Them Accountable:  The Culture Transformation Director must hold the participants accountable to doing what they agreed to do.

A sluggish economy is the absolute best time to perform a Sales Culture Transformation.  With a simple choice, the right tools, and a simple checklist, you’ll be well on your way to higher revenues, increased profits and consistent performance.

Copyright ©   Joe Zente  2009.   All Rights Reserved.

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The world is changing—fast.  If you are a business owner, you know how quickly your company can become commoditized. 

Commoditization can mean lower prices, lower margins, and (if you don’t do something about it soon), the demise of your business.

Over the last several months, I have discussed the notion of commodization with several hundred successful entrepreneurs.  We have discussed this phenomenon in our TABBoards and are developing specific tools and strategies to address it.   Many owners see great opportunities in hyper-rapid change, others are petrified.  Just about all agree that if they do not lead and stay differentiated, that they can quickly get trampled.  The question is HOW.  Here are a few tips to prevent you and your company from becoming a commodity:

1.  Develop a Proactive De-Commodization Strategy:    If you think your product or service is so unique that you are immune, you may want to think again.  Over one million people have viewed the Did You Know 3.0 video.  If you haven’t seen it, please take 5 minutes to check it out on YouTube.   Those who have watched it are struck not only by the speed at which the world is changing, but also the rate with which this speed of change is increasing.  In your business planning, make sure to incorporate the fact that commodization happens 10 to 1000 times quicker in the Information Age than in previous generations.

• Develop an Innovation Mentality:  This is not an easy feat.  It requires an unconditional commitment from the owner and from the entire leadership team.  Changing the way people think can be tough, but the rewards of developing an Innovation Mentality will be well worth the effort in the face of changing marketplace that all businesses face today.

• Develop a World Class Sales Organization:  Your competitors are the biggest readers of your website and marketing material. If a product or service is valuable and there is a decent sized market for it, someone, somewhere will soon be trying to duplicate it.   An effective, differentiated, scalable Sales Culture is something that can not be duplicated.  I have developed a simple checklist you can use to create a high-performance World Class Sales Team.  If you’d like a copy, click here and write “WCSO Checklist” in the Subject line.  

• Develop your Reputation by Becoming Your Industry’s Most Trusted Advisor:  Products and services can be copied quickly, but overcoming your reputation as being the most trusted source is difficult.

• Become a TAB Member:  Many of you who are reading this are already members of The Alternative Board and have developed an edge over your competitors by virtue of the proprietary TAB process.  This process includes peer learning, accountability coaching, effective planning tools, operational and financial assessments, business education and much more.  If you are not a TAB member, but have an interest in learning more or seeing if you qualify for membership, call 512-331-1822 or click here.

In our rapidly changing global economy, the great idea that you worked so hard to develop into a business advantage can likely be re-engineered in India, China, or a host of other places that can deliver your product or service at a fraction or your cost.   An idea that took years to pirate a generation ago can today be re-manufactured and delivered in a period of weeks or months.   By following these simple steps, you can create an amazing competitive advantage for your company.   

Copyright ©   Joe Zente  2009.   All Rights Reserved.

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	Small business owners who are members of The Alternative Board (TAB) get hands-on interaction with other owners who are dedicated to solving your business challenges. By working with your peers to create, implement, adjust and stay on track to meet your goals, you will learn new ways to run your business more efficiently and effectively. With TAB, there is strength in numbers. In fact, 4 out of 5 TAB members are optimistic about their business in their local economy.   When you become a TAB member, you can expect: Different and refreshing perspectives on the common challenges all owners face Accountability to and from a board of peers to help you develop and maintain your results-driven momentum Accountability to and from a board of peers that help you achieve your personal and professional goals
Start solving your business challenges today.
Call Joe Zente today at 512-331-1822 or visit TheAlternativeBoard.com/investinyourself.
© 2008 TAB Boards International, Inc. All Rights Reserved  |  www.thealternativeboard.com  |  1.800.727.0126

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A Recession-Proof Sales Pipeline

After every big party, there is often a hangover.  At least twice each year, many Salespeople, Sales Managers and Business Owners find themselves on the headache side of vacations.  In September, they return from a summer of sun and fun, only to learn that their pipeline from June isn’t going to cut it.  They must start filling it from scratch.  In January, they return from the holidays, only to learn that their November pipeline was deficient and the filling process must begin again. 

This pattern is so common that it has become boring.  During good economic times, managing this pipeline roller coaster can be costly.  During tough economic times, managing this way can spell disaster.

Why do we let this happen?  What about urgency?  Lack of urgency prior to vacation is why the opportunities are still in the pipeline instead of closed, and the elapsed time since then may have been enough for your prospects to forget about their compelling reasons for wanting your help in the first place.  We know this phenomenon as The Law of Diminishing Pain.

What can you do about a measly and inconsistent pipeline?  First and foremost, RAISE YOUR EXPECTATIONS and COMMIT to fixing things for the near term and long haul.   Get on the phone now, call former and current clients and learn what they’re struggling with today.  While you’re at it, get some referrals or introductions.  Plan your next 3 prospecting events, set dates in stone for the next few months and take immediate proactive action to fill the top of your funnel.  Finally, commit to refuse to accept mediocrity and to upgrading your sales organization for good.

Today’s activities are your leading indicator for tomorrow’s results.  Take control of your destiny by developing a right-sized pipeline.  What is a right sized pipeline?  It is a funnel that is the correct size and shape to withstand any external or economic force.   It requires contact definition.  Here is a guide: 

Suspects (obtained an initial appointment)
Prospects (have need, pain, compelling reason to buy, you are differentiated)
Qualified  (you meet their criteria and they meet yours)
Closable (indicated they will buy)

As an example, John Q. Salespro calculates that 3 closed sales per month are required to achieve his goals.  If John closes 60% of his closable opportunities a right sized pipeline would have 5 at the closable stage.  If half of his prospects don’t make it to closable, he might need 7 qualified and 10 prospects.  If half of his suspects don’t convert to prospects, 20 suspects are required.  So John needs a minimum of 42 opportunities in his pipeline at all times (even during vacation)

Now it’s your turn. Using the criteria above, complete the 3rd and 4th columns.

Is your actual much better than your desired?  If so, congratulations.  You are prepared to start 2009 with a bang.

Is your actual as good as desired?  If so, congratulations. You’ll probably outpace your competitors.

Are you short of where you need to be, or do you need help figuring out how to create a right sized pipeline?    Email me and I’ll try to help you get you where you need to be.

© Copyright 2008 Joe Zente

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