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The Most Important Process dated 11/17/2007 12:47 PM

August 12th, 2008

Executives understand the importance of formalized processes in their business. Most companies have established elaborate processes for manufacturing, distribution, finance, purchasing, maintenance, employee reviews, and a host of other fundamental aspects of their organizational backbone.

I have visited with hundreds of business leaders and asked the question:

“What process do you follow for SALES?”

In response, I usually get a blank stare or the question, “What do you mean?”

The fact that most business executives have never considered implementing a process or system for sales never ceases to amaze me. While most business leaders clearly understand the importance of investing heavily in the development of back-end processes, only a small percentage have a process to deal with the aspect of their business that has the single largest potential impact on their ability to generate cash and improve their profitability—SALES.

Another seemingly obvious, yet often overlooked issue which can greatly limit sales growth is confusion about the difference between a “product expert” and “sales expert”. Some people think these two are one and the same. This could not be further from the truth. Most companies recruit and train with a heavy emphasis on product or industry knowledge and experience. While these can be somewhat important, they will not determine whether or not an individual will succeed in creating business. If generating revenue and profit for your company are your goals, recruit and train primarily for sales, secondarily for product/industry.

The face that your company presents to the world should be consistent, attractive, and competent. In order to make this happen, you must have a sales process. So how do you start?

You can’t fix what you can’t see:

It doesn’t matter if you have a huge direct sales force or if you are just beginning to think about hiring salesperson number one. An essential first step is to evaluate your people. Excellent objective assessment tools are available for this purpose. Make sure to select a tool that incorporates both Critical Success Factors and Core Sales Competencies.

Create the most effective organization:

Assess the results, then combine the objective data with your sales plan to achieve your goals. An effective sales team includes leaders, managers, farmers (account managers), and hunters (to secure new business). Each one of these roles incorporates different skill-sets and competencies. Use the objective assessment data to make sure your round pegs are set into round holes. If your company is small and one person must wear multiple hats, make sure that he/she possesses or is trained in multiple competencies.

Use a selling system:

Do not send your salespeople out to “do their thing.” Send them out to do YOUR THING. There are several selling systems available. Some are good, some are not. Make sure to select a system that is consistent with your company’s objectives and core values and one that will result in long-term, win/win relationships. Your selling system should be “owned” by anyone in your organization that has contact with your customers and salespeople. Your team should be fluent in the language.

With effective training and practice, your selling system will soon become second-nature and part of the company culture.

Implementation of an effective, understandable, and easy-to-use sales process will have a dramatic effect on both the top and bottom lines of your business. Incorporating an effective process for recruiting/hiring salespeople and measuring results will multiply your gains and improve your ability to control your future.

© Copyright 2009 Joe Zente

How to Get Your Kite Rising Against the Wind?

August 12th, 2008

A Different Way of Looking at Marketing

With Starbucks closing stores, civilization as we know it is going into a tailspin!  What are you seeing today? Getting bank loans to buy gas and food? Nose-diving home equity values? Your 401K is becoming a 201K? Feeling depressed? Peter Sinclair says, “Depression loses its power when fresh vision pierces the darkness.” Where are you going for new perspectives?

Today, I was annoyed by Fairfield’s 40 MPH winds as I had to re-light my blown-out water tank pilot light for the third time this week. However, another perspective would be that it was these same winds of adversity that gave us Travis Air Base- the economic fuel for our city’s survival! In business, do you see today as the worst of times or the best of times?

Business owners flew with the wind at their back for a long time. Customers were easy to find, profits were fat, and many CEOs relaxed. Many took their customers, profits, and futures for granted. They acted as though the good times would never end. Hopefully TAB Board Members are better prepared. TAB continuously discusses planning for contingencies, and because of the continuous overlapping of fluctuating industry cycles, members gain ongoing experience in dealing with downturns. Nevertheless, it is clear that all of us are feeling this wakeup call today.

Now is not the time to sit back. Napoleon Hill says “Every adversity carries with it the seed of equal or greater benefit.” My thriving members are benefiting from adverse times by rethinking marketing approaches. Changing to a customer focus rather than prospect focus is resulting in new businesses as well as happier existing clients. During good times many of us neglected existing clients as a marketing resource so we could pursue the “thrill of the chase.” Why? Because, rockets go off and bells sound as we bring in new clients. Developing the power of current clients and asking for referrals is not as much fun. It is human nature “to give more love and attention to those we are trying to seduce than those we are married to.”  However, how many untapped opportunities have been right there within your clients’ firms and especially within their deep reservoirs for referrals? It is time to ask an important question:

1. Who are the best customers and what makes them better?

Once you have listed your best customers and defined exactly why they are keepers, make the time to visit them, and get answers to the following questions:

2. How can we better serve your current needs?
3. What other problems might we help you with?
4. How can we make your work easier?
5. Who else do you know that we might be able to help?

Try this process and uncover new business while strengthening loyalty of your clients. Businesses that get going when the going gets tough do so by digging in their heels, looking in the mirror, and finding ways to better serve their best customers and other people like them. You already have everything you need. You just need to add determination, patience and courage. Do not fear of the winds of adversity. Make that wind work for you and fly you over your obstacles. These are the best of times for the people and businesses that are looking to improve.

©  Ray Brun, MBA,CPA, SPHR, (Sr.Prof.HR Mgr.). Facilitator and Owner of The Alternative Board-  East Bay North
Author of  How Small Businesses Capture Talent, 164 Strategies for Recruiting and Hiring Winners

Why Can’t I Locate Great Salespeople?

August 8th, 2008

Business owners ask me this question all of the time.  The answer is because the majority of sales candidates are simply NOT GOOD!  There are sales superstars out there, but you need to know how to find them and attract them.

At Z/Three Performance Development, we’ve been conducting objective sales assessments on candidates for over a decade.  Objective Management Group, Inc., the company that developed our assessment, has recently published statistics based upon the 350,000 sales candidates who have taken the assessment to date.   The objective data has been consolidated and the excerpted results are sobering:

24% of all candidates will not prospect - at all!
Only 1% of all hunters have the complete Hunter Skill Set.
Only 8% of all candidates could even be considered Hunters. 

Did you want your new salespeople to hunt for new business? 
The typical sales candidate will have between only 27% and 52% of hunter attributes.

Why?  Salespeople who dislike prospecting dislike it for a reason.  They have beliefs and fears that cause anxiety and physical reactions to even the thought of prospecting.  Some won’t do it at all, many will have difficulty getting started and others will have difficulty finishing.

45% of all candidates will not close - at all!
Less than 1% of all candidates have the complete Closer Skill Set.

Are your salespeople having trouble closing?
The typical candidate will possess less than 23% of the attributes of a closer.

Why? Salespeople confuse asking for business with getting it.  Many salespeople know how to ask for the business.  However, very few know how to finalize profitable transactions in the face of resistance.  As with hunting, there are beliefs and fears that negatively impact their behavior.  When salespeople aren’t comfortable saying the words you’ve taught them, they substitute words that make them more comfortable. 

What makes them comfortable?  Presenting features and benefits.  These are the actions that don’t put their prospects on the spot, that don’t create objections, stalls, put-offs  and excuses.   Most Salespeople will avoid doing anything that will make prospects behave in a way that takes them out of their own comfort zone.  Only GREAT salespeople will behave in this productive manner.

The bottom line is that salespeople who can provide your company with a strong and consistent ROI are very scarce.   The good news is there is a remedy!  It does not require you to be a Sales Guru or magician.  All it takes is a commitment to adopting a structured, time tested, sales recruiting process using objective data to separate the candidates who can and will sell from the masses.

Happy Hunting!

© Copyright 2009 Joe Zente

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