Case Study: Is the Problem Marketing or the Marketer?

Lead Generation and Lead QualificationThe Phone Call…

“Am I going crazy?” Having just answered the phone, I had no idea who was calling and asking such a question of me. I responded with a courteous, but cautious chuckle saying, “Well…I think I’ll need a little more to go on. With whom am I speaking?”

She paused, told me who it was, laughed rather distractedly, then proceeded to dive right into describing her dilemma from today’s meeting with the Marketing Director from her “problem division.” She is the Sales Director of a firm in which I knew a bit about, particularly with the company’s background and this particular division’s struggle.

In summary, sales were strong across all of her other divisions and lines, each of which had their own marketing leader, while she led the Sales across all divisions. Things were great, that is for all but this one division. Sales continued to decline year over year and had high lead dependency from Marketing, thus her concerns.

The Rest of Her Story…

The sales model is B2B with an outbound sales team that sells consumer products ranging from $200 – $1,000. As described earlier, they are highly dependent upon Marketing to deliver leads.

The Division Head and Marketing Director were both new to this division in 2011 and had stepped in with a new, radical, $1M cost-reduction strategy for marketing. The new marketing mantra became for the next two years, “Less Quantity, More Quality!”

This strategy resulted in lead reduction of 60% in 2011 compared to 2010. In 2012, the leads dropped another 40% from 2011. Not surprisingly, sales had correspondingly declined steeply, more so than any other recent period. While sales did have a dramatic decline, it was nowhere near the rate of decline for the lead volume.

The Sales leader saw neither quantity nor quality from marketing, and as she describes it, the numbers supported her version of the story. Despite the numbers, the Marketing Leader and Division Head remained committed to defending their original strategy a year and a half into it with major revenue losses, and subsequently showed no openness to a different, or better strategy.

Towards the end of 2012, she managed to get a commitment from Marketing for substantially more qualified leads in 2013, although to the Marketer, ‘qualified’ apparently meant email, number and “Request for literature.”

Additionally, the Marketer’s commitment was simply to an aggregate number of leads on a monthly basis, but not by geography, firmographic, demographic, product type or other. His tactic? Email marketing….it’s part of the ‘cost-reduction’ plan.

Today, prior to the call and after her meeting with the marketing team, she made her plea for more qualified leads as the current lead quantity left her outbound team with capacity in excess of 60% going into their largest quarter of the year.

After her meeting, she shared that in addition to the quantity of leads being a third of what they needed, 80% of them were for two of  their 10 product lines. This meant that they had on average  a half-lead per rep to call on each day for the remaining products….not enough to meet the sales plan.

“A Lead is a Lead is a Lead!”

Through frustration, the Marketer responded to her plea for more balanced and qualified leads with saying, “A lead is a lead is a lead. We know that regardless of what product type we market, more than half of the prospects will want something different anyway. We could collect leads on just one of our products and it wouldn’t matter. All that matters is that you have leads of any type, then your team can determine what they really need.”

Again, the sales exec says to me…this time through tears…“Am I going crazy? Do I have my expectations set too high? Is it unreasonable to ask marketing to know the customer well enough to hit who they’re aiming at? Maybe I am the problem. I don’t feel like I am but it just seems like we need to change our approach to marketing.”

I responded, “Being crazy and unreasonable is not your problem, although your 2-year tolerance may be a part of the problem. It sounds to me like there is a much larger issue at play here…”

Change the Marketing, or the Marketer?

I speak with people in Sales and Marketing roles from all over the country. From executives to analysts to reps. Lead generation and qualification is by far, one of the most common frustrations I hear.

No matter who I am working with or from what field, I am pretty quick to keep the responsibility and accountability with each respective group I am working with. Most companies needing my help typically don’t have their respective ‘houses in order.’ Therefore, I keep Sales concentrated on their own responsibilities and Marketing, theirs so I don’t create an all out Game of Thrones. I work with the executive leadership on cross-departmental improvements before circling back to the departments.

For these reasons, offering up an anecdotal recommendation to this Sales executive to “change the Marketer” after merely an hour-long conversation would be ill-advised, no matter how apropos that may seem. There is always more to the story, especially when it comes to Sales and Marketing alignment.

What Advise Would You Give?

Given the very limited facts we all have here, what advice would you give and to whom would you target your comments? The Marketing Director? The Sales Director? The Division Head? Who would you love to spend 15 minutes with and what would you tell them?

AUTHOR’S NOTE: If you found any aspect of this post helpful, take 2 seconds to Like, Tweet, +1 and/or Share with others using the buttons below.
 

Jeff Michaels | Repeatable SuccessAbout the Author: Jeff Michaels is a 20-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted here typically emphasize one or more of the three requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.

Challenger Tip: Practice what you preach when coaching

Practice what you preach when Sales CoachingSales Leaders were gathered around the conference table to debrief the progress of each respective team’s reps in The Challenger Sale.

There were some great successes shared, with one story of a Relationship Builder who was consistently ranked last, rising to #1 for the last 7 consecutive months. All because she changed her behaviors.

The discussion then centered around those reps that have yet to embrace the Challenger Sale. It was a few minutes into the debrief and diagnosis when we realized we had fallen into the very trap we were advocating against…

Battling the Status Quo
It wasn’t that the sales reps struggling with the Challenger implementation were blatantly resistant to change. They just weren’t sure it was necessary. Their performance was relatively strong, with nearly all achieving quota. Yet there were points in their daily discussions with prospects that were not effective. Their leaders knew it and they knew it.

Reps would approach their respective sales leader with the problem…or vice versa. The leaders would then point to the corresponding Challenger behavior that would address the problem, then coach to the behavior.

Seems reasonable, right? Wrong! We were circumventing the process in order to speed up coaching and performance. They had a known problem. We had the solution. The Challenger Sale!

A New Way
At the heart of the matter was that the reps with their very legitimate problems, were hearing the ‘solution’  from their leaders. In the Challenger choreography, this is the equivalent of going straight from Warmer to Our Solution. See my previous post on the consequences of doing so.

When we don’t adjust our prospect’s thinking (or in this case, our reps), and expose the problems with the status quo, we fail to ripen their appetite for a new way. For these reasons, the Reframe followed by Rational Drowning into Emotional Impact are critical, especially when teaching new behaviors.

Challenger Tip
When coaching, don’t assume you can jump to the solution because reps have sufficient information. What is not needed is more information. What is needed is a different way of thinking about their problems. Therefore, always follow the choreography. The choreography’s brilliance is that it uncovers and exposes faulty beliefs. Beliefs that lead to complacency in the Status Quo zone.

Take the time to do it right by setting a foundation for a reason for change. Then lead them as a Challenger would do. As a leader, you will benefit by reinforcing your Challenger behaviors (not theories). Your reps will benefit from seeing it in action and the effectiveness in bringing about change.

Jeff Michaels | Repeatable SuccessJeff Michaels is a 25-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted typically emphasize 1 of 3 requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.

Leadership Lesson from X Games

Tucker HibbertTalent Alone is not Enough

January 27, 2013 marks the first time an athlete has ever achieved a six-peat…six consecutive gold medal performances…in the winter X Games. Tucker Hibbert did so in remarkable fashion in the Snowmobile Sno-Cross event Sunday afternoon. It wasn’t his talent alone that won the finals for him. The X Game analysts were quick to point out that this was one of the most experienced and capable field of champions they have ever seen.

What they did point to as the differentiator, rightfully so, was his preparation. You see, in between the semi-finals and finals, Tucker chose to spend his time walking the course to evaluate how the snow conditions had changed. He also spent time evaluating where the shadows were falling on the course along with identifying the intended lines he would take. It turns out that he was the only competitor that did so.

Assimilating all of that information resulted in his selection of starting lane (afforded to him because of his semi-final finish), which was counter-intuitive to where most others wanted to start from. By the time they all completed the first lap, Tucker was in the lead and on his game plan. More than half way through the race, conditions continued to change as the shadows continued to shift and the snow conditions on the track worsened.

Lap 9, Tucker was jolted by hitting a rough patch in his originally chosen line. He adjusted his line to his plan B approach by the time he reached that same rough section on lap 10 and continued to put distance between himself and the second place competitor. Six laps later, he had finished the race creating a phenomenal 13 seconds of distance between his next closest competitor.

The Mark of Effective Leadership is Reflected in Their Preparation

Tucker prepared in a way that his competitors failed to do. In fact, all things being equal, each of the competitors had the opportunity to win with similar experience, equipment and conditions. Yet, it came down to Tucker’s preparation that enabled him to respond asymmetrically to an otherwise, equal playing field. Tucker clearly had an advantage over his competition. An advantage also available to each of his competitors, but they declined, instead relying upon their own experience to see them through.

For leaders, you can certainly attest to the pressure to perform while leading your team to do the same. With the level of responsibilities a leader typically carries, the tendency can be to approach business as just another day. merely showing up and reacting to whatever the next day has in store. This is certainly no way to lead, and definitely not a recipe for intentional, predictable and repeatable success.

So how can you tell if you have fallen into this trap? Ask yourself these questions:

  • What do today’s actions reflect about your preparation to lead your team to success?
  • Specifically, what have you done today to ensure your team’s success?
  • Does your to-do list focus more on tasks than it does in leading your team to success?

If these questions have exposed some vulnerabilities in your daily approach, you are not alone. Be encouraged as you have taken the first step to acknowledge complacency. Complacency threatens all of us if we don’t intentionally disrupt our own status quo. Here are three steps to help you prepare differently, much like Tucker had done for his record performance. After all, wouldn’t we all like to succeed in intentional, predictable, repeatable ways as Tucker did?

3 Ways Effective Leaders Prepare Differently

  • Intentionality. Evaluating ever-changing conditions in the business environment requires being prepared for anything. This includes anticipating problems before they happen, and even planning how you will respond to the unanticipated. To have this ability, the leader will need to take intentional steps and set aside time to address these areas. Action: Schedule this into your calendar to address consistently and frequently. This needs to become an habitual routine.
  • Predictability. After you begin intentionally looking for ways to be better prepared, you will begin to see patterns. These patterns often come in the forms of team member behavior that leads to lesser performance, complacent reactions of competitors, or even economic rhythms that you can predict and address now that you see them. Action: Practice predicting outcomes privately. Start developing this capability and pay attention to predictions and what surprised you along the way before you go public.
  • Repeatability. When you have devoted the time to be intentional, others begin to notice your seemingly innate ability to predict outcomes and that you are well-prepared, you will find that repeatable successes happen with much greater frequency. This makes you an invaluable asset and resource to your team and your organization. Action: Look for ways to repeat your success without relying on repeating the same exact actions. Life usually doesn’t work that way. But for the effective leader that knows how to succeed repeatedly, do as Babe Ruth did and call your shots before they happen. Then make good on it by developing your intentionality and predictability muscles.

The most meaningful things in life take time to develop. Effective leadership is one of those meaningful areas worthy of pursuing. But it’s up to you. What will you choose? What will you do differently today, that will make a noticeable difference in what you and your teams do tomorrow?

AUTHOR’S NOTE: If you found any aspect of this post helpful, take 2 seconds to Like, Tweet, +1 and/or Share with others using the buttons below.
 

Jeff Michaels | Repeatable SuccessAbout the Author: Jeff Michaels is a 20-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted here typically emphasize one or more of the three requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.

3 Steps to Cultivating Confidence

Keys to ConfidenceAfter two decades of working with individuals, managers and leaders at various levels, I have observed and identified 3 behaviors that lead to intentional, predictable and repeatable results.  Practicing these three simple behaviors will put you on the fast track to cultivating confidence.

The three behaviors are as follows:

1. Self-Reflection – We can all get caught up in the activities that our jobs and personal responsibilities require. The tendency during the busyness can be to ‘act’ or ‘react’ without paying attention to whether that was the best course of action to take. Furthermore, because the focus tends to be on the task at hand, one can fail to assess if the action taken is achieving the results originally intended. For this reason, setting some time for intentional, self-reflection can shift your focus back from results, to behaviors that create the results.

When a person is more intentional about changing their behaviors to best achieve the results, and evaluates their intention in comparison to the outcome, significant learning takes place that guides your future steps.

Self-Reflection = Intentionality. I call this ‘succeeding on purpose.’ When a person intentionally reflects upon behaviors that contributes to the result, and achieves their expected result, the byproduct is greater confidence.

2. Write it down. Documenting your observations…even in the briefest of forms…is the least fun, but most rewarding when you start to see patterns. For example, consider a recent example of a person on a new diet.

Everyday, around 2:30 pm, Steve eats a candy bar out of habit. Before documenting his eating habits, Steve was aware that he had a candy bar on many days, but not sure exactly when in the day, how often, or even why he ate candy for that matter. After reflecting on his behaviors and documenting his observations, he recognized that he snacks in between two meetings as a sort of distraction from the next meeting. It wasn’t that he was necessarily hungry after lunch, craving sweets or needing an afternoon pick-me-up. He simply needed a non-work related distraction before his next meeting.

Once the pattern was observed, he recognized steps he could take to improve his eating habits by keeping granola bars on hand at that time of day. Even better, he later realized that taking a 10-minute walk outside provided a more healthy distraction before stepping in to his next meeting.

You can improve or change that in which you are aware. Without awareness, you are just guessing, which is the number one killer of confidence. Self-reflection of your behaviors, followed by documenting your observations, allows you to start seeing patterns, which creates predictability.

Documenting = Predictability. Similar to the infrequent golfer who never knows where the ball is going with each swing, so it is with the manager that can’t predict outcomes based on their actions. Just as Babe Ruth used to do in pointing to where he would hit the ball, we too have the ability to accurately predict outcomes. Predictability contributes to confidence.

3. Debrief your actions. An important, and often over-looked, activity that benefits all who do so is to debrief each action taken. The Army refers to this as an After-Action Review (AAR). This process of debriefing includes all members of the team and asks questions such as:

  • What was supposed to happen?
  • What actually happened?
  • What can be learned?
  • What should be done differently?
  • Who else could benefit from what was learned?

A thorough and proper debrief directly contributes to continuous learning and improved results, which enables a leader, individual and/or team to have, and repeat, success in the future.

Debriefing = Repeatability. Those that know how to repeat their successes are invaluable to organizations and to others. The ability to intentionally and predictably achieve a successful outcome at will…or repeatably…is an asset every organization would love to have.

AUTHOR’S NOTE: If you found any aspect of this post helpful, take 2 seconds to Like, Tweet, +1 and/or Share with others using the buttons below.
 

Jeff Michaels | Repeatable SuccessAbout the Author: Jeff Michaels is a 20-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted here typically emphasize one or more of the three requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.

Reorganization or Turnaround? (Part 2): Top-Line Temptation

Top Line TemptationLast week, I wrote about common mistakes made with an underperforming Division or Business Unit in my post titled Reorganization or Turnaround? (Part 1). Most notably, I spoke of the tendency to prescribe a reorganization to situations when a turnaround was really needed, by failing to recognize issues that are below the “waterline.”

If you are the leader of a struggling division, business unit or team that has solid sales, but have continued to underperform the profitability expectations for multiple periods, this post is for you.

The Top-Line Temptation
There is no doubt that top-line revenue covers a multitude of sins. The problem is that too often this is seen as a good thing…or at least acceptable. These ‘sins’ in business, so to speak, that detract from profitability are analogous to the roots of a young tree that later grows to disrupt the foundation. The foundation, in this case, represents the whole organization. Addressing the root of these problems is always better done earlier, for obvious reasons, as the picture of the tree below perfectly illustrates the implications of letting problems persist.

Unfortunately, what happens all too often is that with solid revenue comes the belief that things will correct themselves over time. That increasing the sales will begin to create economies of scale, eventually leading to profitability. Question – When was the last time you saw a profitability issue like this work itself out over time?

Getting at the Root of the Problem
There are a variety of reasons why a leader may be experiencing solid sales with poor profitability, but I want to address one of the more common reasons I see. This is the ‘sales at any cost’ approach. When this is the case, the inappropriate pursuit of revenue tends to come in one of two forms.

Root Cause

The Root of the Problem

The first way revenue is inappropriately pursued comes in the form of aggressive discounts, incentives, and promotions. Unprofitable discounting creates an inflated sense of demand, which bursts the minute the discounts stop. The more inherent problems with this approach, other than increased costs and false demand, is the longer term impact of discounts and incentives lowering the perceived value in your customer’s eyes.

The second way that revenue is inappropriately pursued is through disproportionate costs of acquisition and retention, beyond that which is profitable. In these situations, typical strategies include increased marketing campaigns, sales blitzes, additional staff or even the introduction of new products or services on top of an overly burdened cost structure.

In some cases, a division may inappropriately pursue both, discount strategies and increased activities. The compounded effect of having lower revenue at higher costs puts the business area on a fast track to what I call ‘divisional bankruptcy.’ Not only is this unsustainable, it is a terrible strategy in general for leading a division to profitability.

5 Questions to Determine if You Have a Profitability Problem
Now that we have a good handle on some of the problems and why they occur, it is important to determine whether these are your problems are somebody else’s problems. Also important to note is that the conditions described above are not the sole list, but rather representative of the type of conditions that lead to solid sales with poor profitability. Therefore, the following questions will help in determining if you are in a situation requiring a reorganization or turnaround.

  1. Were your most recent profit results intended? Comparing performance to plan (PTP) is an important measure. There are times when losses are planned. If so, did you meet the plan? If not, proceed to #2.
  2. If your PTP was not intended, do you know specifically what contributed to this? If you answered “no,” stop reading now. Enlist all necessary resources to figure this out. Without this, remediation is impossible.
  3. What specific steps do you have in place, to correct the problems? Assuming you answered ‘yes’ for #2, specific SMART goals should be in place with key staff that will correct the profitability shortfalls.
  4. How long will the plan take to restore profitability? Remediation should occur within 6 months or less. Be very careful about setting anything longer as too often you are delaying the inevitable. The time to act is now.
  5. What is your track record for accurately forecasting corrections? This is an important gut-check. Be honest. If you tend to be overly optimistic, best to confront that now as people are depending on you.

Reorganize or Turnaround?
After having assessed the cause of the problems and determined next steps, you should have a sense of clarity on whether or not you have a ‘waterline‘ issue or not. If you have diagnosed your problem to be below the waterline, this is a turnaround. You are now in a dead sprint to correct the problem before your CEO steps in on your behalf to correct the problem simultaneous with your exit.

Time to A.C.T.
Now that you have properly diagnosed your predicament and are committed to an expedient correction, it is time to act. I have put the steps in the form of an acronym to serve as a virtuous, or repeatable, cycle to follow throughout the recovery.

  • Assess. Pull out the financials along with your sales and marketing metrics to assess where the key profit detractors lie. Don’t fall for only cutting easy, non-essential areas. The allure is that it looks like you took action without disrupting anything too significantly. The problem is that it won’t disrupt anything too significantly. Cut the small stuff, but cut the big stuff first. Remember the tree picture above…address the root issues!
  • Correct. Having identified where to cut, commit to correction through decisive action. These times aren’t easy, so best to communicate lavishly before, during and after the turnaround. Before lets people know what to expect. During to give updates and demonstrate it’s working. After confirms that your actions were worth it.
  • Target. Cuts are important and necessary, but are not the entirety of your action. Time to target key start and stop activities that contribute more quickly to your division’s profitability. Examples include not pursuing unprofitable customers, or to stopping marketing activity that aims to discount its way to profitable growth.

As described above, this process is intended to be followed and repeated, assessing and adjusting as you go. If you are entering this process of a turnaround, I would like to offer encouragement as you have demonstrated the two characteristics I described last week – Humility in acknowledging your situation and Courage to address the problems head on. Once you successfully turnaround your division or business area, not only will you have the respect and admiration of your staff and CEO, but this will likely serve as one of the largest confidence booster’s in your career that will serve you well in years to come.

AUTHOR’S NOTE: If you would like to see more posts like this, make sure Tweet, Like, +1 and/or Share with others as this is always appreciated!
 

Jeff Michaels | Repeatable SuccessAbout the Author: Jeff Michaels is a 20-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted here typically emphasize one or more of the three requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.

Reorganization or Turnaround? (Part 1)

Business TurnaroundsAs the end of the year approaches, CEOs all over the country have a laser-like focus on performance to ensure a strong year-end finish. While many organizations will achieve their financial objectives, many others will come up short of the results they expected.

There is yet a third group in which will not only fall short of expectations, but will turn in another consecutive period of underperformance, with no recovery in sight. While this isn’t indicative of the overall organization, but rather a division or business unit struggling to correct performance issues, this still remains problematic for the organization.

For those falling in the unenviable position of this latter group, the CEO’s focus will narrow in on changes that will restore overall organizational health in order to start the New Year off right.

If this describes you, you are likely evaluating your next moves. Assuming this is the case, let’s take a closer look at what to do when you have experienced continued declines and are not seeing a recovery in the results. Is a reorganization of your division needed, or is an all out turnaround in order?

Reorganization or Turnaround?
How you diagnose the problem, and the remedy you prescribe, can either set you on the road to recovery, or lead to further entrenchment in missed results, often worse than before the correction.

Without oversimplifying an otherwise complex problem, there are three general conditions that lead an organization, division or business unit to consider a reorganization or turnaround plan. In the ensuing weeks, I will break down the three scenarios more thoroughly, but my primary aim is to provide an overview of the problem. Following are the three general scenarios most commonly experienced by business areas with ongoing, lackluster results.

The Three Business Performance Conditions:

1. Solid sales, but poor profitability

2. Solid profitability, but poor sales

3. Poor sales and poor profitability

A Common Mistake
When one of the aforementioned scenarios is experienced, the mistake most commonly made is to misdiagnose the problem and subsequently prescribe a reorganization to a turnaround situation. This usually has disastrous consequences as the characteristics of a turnaround differ significantly from that of a reorganization. In other words, a division in turnaround mode that has poor top and bottom line performance, operates much differently…much more expediently…than one that has been reorganized to bring greater efficiency and effectiveness to the division. When a leader of a failing business area makes a recommendation to reorganize the division/business unit/department to improve the underperformance, failure to meet expectations is nearly inevitable.

A reorganization done under the pretense described above just doesn’t work, but you already know this. How? Imagine that you came to me and shared that one of your divisions has a consistent history of declining business performance. Now imagine I say to you, “No problem, simply restructure your division, and this will enable greater growth and profitability.” You would be quick to tell me that 1.) It isn’t that simple, and 2.) You may even tell me that you have already tried this approach, and it didn’t work. Of course, you would be right for both reasons.

A Better Approach
When dealing with prolonged performance issues in a business area, two leadership qualities are highly beneficial: Courage and Humility. Courage will be needed to make a decision that inevitably will depart from the status quo that you have grown comfortable with. This isn’t to say that you were comfortable with underperformance. Far from it, in fact. The comfort came more in the activity of feeling that you were doing something about the problems, and the ‘activity’ itself served as justification for not having to make the more difficult decisions you feared would be necessary.

Humility will also be needed, since the potential is high for you as the business area leader, to feel as if you are conceding defeat to the previous failed approach to correct the problems. This is often linked with a belief that your leadership may be questioned if you change directions. The reality is that your staff already knows something different is needed. Your leadership is already in question until you are willing to break from the status quo and make meaningful change.

A Tip from CEOs
Savvy CEOs that have been through this before will be quick to point out that if their division leader approached them with a plan to reorganize in order to solve business performance issues, their confidence in the leader would diminish significantly and likely result in their departure. Why? No matter how reasonable the cost efficiencies and productivity gains may be, this fails to address the root issues of why the division or unit was failing. Therefore, if they cannot accurately assess the root problems, then they are ill-suited to correct them.

When this goes unchallenged by the CEO, the result is that poor performance is excused for a period of time while people settle into the newly structured organization. This is short-lived, however as soon comes the day of reckoning where all patience has run out and results are expected. Most CEOs state that they don’t have the luxury of that kind of time and money to wait for better performance. Additionally, they know that this kind of decision puts other areas of the organization at risk, thus putting undue pressures on the stronger performing divisions.

Therefore, rather than looking to reorganize to address organizational performance deficiencies, look instead at using reorganizations to address better efficiencies. In other words, a reorganization should not be used to address performance problems, but rather to take good performance and make it great through better alignment.

Reorganizations when used appropriately are liberating to the business area as it allows them to achieve their goals more efficiently and effectively. Unfortunately, reorgs have been used irresponsibly over the years for many organizations as cover for reducing headcount and other operating costs. No wonder why staff hate reorganizations.

General Rule of Thumb: The Waterline Principle
I have a general rule of thumb for whether a reorganization or a turnaround is Waterline Principlethe best approach. Every organization has a specific profitability level they need to maintain organizational health. Think of this as the waterline on a cargo ship. The waterline, or the red paint at the bottom of an otherwise black cargo ship, does two things:

  1. It provides a visual indication of the ship’s relative safety in that is not overly loaded down
  2. It also serves as a clear indicator that any damage below the waterline would be perilous to the ship

In either case, whether too much cargo is loaded on the ship, or damage happens below the waterline, the whole ship is put in jeopardy. No matter how healthy other areas of the ship may be, damage below the line risks the whole. For example, the ship can have state of the art electronics and navigational equipment in other parts of the ship, but all will be lost when the threat below the waterline isn’t properly handled. The same is true in business.

Therefore, when determining how to address a situation in a business area and the choice is between a reorganization or a turnaround, consider where the risks are happening – Are they above or below the waterline? This will bring clarity to your thinking in an instant.

Next Week…
Look for Part 2 of the Reorganization or Turnaround series as I address the approach for when a division, business unit or product has solid sales, but poor profitability.

AUTHOR’S NOTE: If you would like to see more posts like this, make sure Tweet, Like, +1 and/or Share with others as this is always appreciated!
 

Jeff Michaels | Repeatable SuccessAbout the Author: Jeff Michaels is a 20-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted here typically emphasize one or more of the three requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.

Diagnosing Misdiagnosis in Business

Diagnosis and MisdiagnosisIn the medical field, a doctor’s misdiagnosis can prove fatal. Have you ever considered the consequences of misdiagnosing a sales, marketing or business issue?  In the metaphorical sense, a wrong diagnosis can prove fatal to your career or business as well.

According to the National Patient Safety Foundation (NPSF), misdiagnosis occurs in the medical profession up to 42% of the time.

When you consider that doctors, being highly educated and well-trained in their field, still misdiagnose symptoms for 2 out of every 5 patients, how much more susceptible might the everyday sales or business professional be in proffering a wrong diagnosis? Yet for many business professionals, they cavalierly forge ahead with untested hypotheses of their business issue, and a firm course set for remediation.

“For most diagnoses all that is needed is an ounce of knowledge, an ounce of
intelligence, and a pound of thoroughness”

HOW DOES THIS HAPPEN?
Try to recall a recent business result that fell short of expectations, and subsequently required diagnosing the problem. What was the process you used to identify the problem, and identify a remediation plan?

For many people, they follow an inherently flawed two-step plan:

  1. They compare their result to their expectation, then
  2. They work backwards from the result, looking for a plausible explanation for why they fell short

While this is a common approach, the problem is that beginning with the comparison as your starting point for diagnosis is far too late. All you can do at this point is learn for next time…if fortunate enough to have a next time. The second problem is that working backwards from the result only serves to explain symptoms, but not address the root cause. If we want to avoid bad results or avoid repeating bad results, we need to get at the root.

HOW DO YOU GET AT THE ROOT?
I used to live in a neighborhood where there were a lot of very large, mature trees with roots that would buckle the sidewalks. Imagine a city planner tasked with inspecting the damage and evaluating a remedy for the current problem, to serve as a model for future neighborhoods.

Imagine how preposterous it would be if the City Planner recommended a ‘root-redirection’ program when sidewalks started to buckle? In other words, if the proposal was to address the point of the visible problem by digging up the damaged sidewalk, and working to redirect the roots downward, we would laugh at the foolishness of such a plan.

Common sense suggests either planting trees farther away from sidewalks or changing the type of tree altogether. Stated differently, we would need to change what we do on the front end to get better results, not work from the point of the buckled sidewalks backwards.

Yet, this serves as a picture of how missed expectations are often addressed. A person does a comparison, sees the variance and looks for an explanation to the problem. When taking this approach [from the end rather than the beginning], the tendency is to stop searching once you believe you have reached a conclusion.

“A conclusion is the place where you got tired thinking.”

Those were the words of the German-American physician, Dr. Martin Fischer (1879-1962).

PRESCRIPTION FOR PREVENTION
Dr. Denis Burkitt said, “Diseases can rarely be eliminated through early diagnosis or good treatment, but prevention can eliminate disease.” Most would agree, prevention is much better than prescription.

In order to prevent a career full of missed results, followed by faulty diagnostics leading to more missed results, we need to look at a new process that will enable one to succeed intentionally, predictably and repeatedly. Doing so will prevent a career full of regret.

The best way to do so is to have a repeatable structure or process for achieving results, so that you can quickly identify and detect problems early.

Following are a list of steps to get you well on your way:

  1. Long-term goals should be front and center as your starting point
  2. Connect all shorter term goals into your long-term goals
  3. Identify specific activities/tactics necessary to achieve your goals on weekly basis
  4. Plan specific times each day/week to achieve the tactics leading to your goals
  5. Evaluate each day/week how you performed according to what you planned to do
  6. Adapt your approach as necessary based on your evaluation and insights

Do not let the process scare you as this not only is guaranteed to improve your results, but literally only takes 20 minutes/day and increases the success rate significantly. I do steps 1-4 in The First 15 Minutes of each day, and steps 5-6 in the last 5 minutes of each day before I leave. I jot quick notes of my observations for what did and didn’t go as planned and as a result, have a written record of how to repeat success.

What steps do you take to create intentional, repeatable and predictable success?

AUTHOR’S NOTE: If you would like to see more posts like this, make sure Tweet, Like, +1 and/or Share with others as this is always appreciated!
 

Jeff Michaels | Repeatable SuccessAbout the Author: Jeff Michaels is a 20-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted here typically emphasize one or more of the three requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.

The Best Information Comes From Short Questions – by Mark Hunter “The Sales Hunter”

Mark HunterThere’s no better way to improve the quality of information you receive from a potential customer than by asking short questions.  We all can recall far too many times when we’ve sat across the table from a customer we’re trying to help–and we know we can help, if they would just provide us information about their needs and goals.

The problem is that no matter what question we ask, we get the same response: a big fat “I don’t know” (or something along that line).  Then, almost without thinking, we put on our super-salesperson cape and start telling the person everything they need.  Unfortunately, when it comes to getting the sale, the person turns cold.

Our problem in dealing with this type of customer is we need to find a better way to engage them and to get them to think about what they want and need–and then share that information with us.

The answer to this dilemma? Short questions. I believe that short questions get you long answers (while long questions get you short answers).  What too often happens is we are talking to a customer and asking them what we believe are simple questions, but in reality, those questions are simple only to us.

To someone unfamiliar with your industry, the questions are complex.   For example, we ask a question that has a couple of facts wrapped up in it. As a result, it winds up being more of a statement for which we are simply looking for feedback. No wonder clients can give us the cold shoulder and the blank stare.

What we want to do is ask short questions. In their simplest form, they are questions like “why” and “how.” Or possibly they look like this: Could you give me an example?  Could you explain that again to me?

The shorter the question, the more likely we are to get a long answer. The next step is to ask them another short question, following up on what they just said.  The beauty about this is it allows the client to do all the talking. By doing the talking, they’ll tell you what their needs are. They’ll tell you their big life goals and will reveal a level of information you need to determine how to best serve them.

When using the short question approach, there are only two things you need to remember.  First, ask the customer a soft easy question to which you know they’ll respond. Then after they have given you a response, continue with the short questioning approach by asking, “Could you give me another example?” You then pause and allow the client to give you more information, upon which you follow-up again with another short question such as, “How?” or “Why?” Basically, you want to do whatever you can to get them talking more.

The second rule to remember is to not keep asking the same short questions. If you do, you’ll come across as an inquisitive 3-year-old rather than the professional salesperson you know you are.

You can avoid this best by picking up on a single item they shared with you and drilling down on just that one item. When you drill down on a single item, you demonstrate your listening skills and your ability to truly discern information.  The beauty of this approach is when it works, the customer will many times share with you exactly what they want in a policy and they will begin asking you questions about features and benefits.

Short questions get you long answers.  Long questions get you short answers. It is up to you as to the approach you want to take, but if you want to actually learn something about the customer’s needs, you will get there quicker by asking short questions.

Mark Hunter, “The Sales Hunter,” is author of High-Profit Selling: Win the Sale Without Compromising on Price. He is a sales expert who speaks to thousands each year on how to increase their sales profitability.  To receive a free weekly sales tip and read his Sales Motivation Blog, visit www.TheSalesHunter.com. You can also follow him on Twitter http://www.Twitter.com/TheSalesHunter, on Facebook www.facebook.com/TheSalesHunter and on Linkedin http://www.linkedin.com/in/MarkHunter.

Reprinting of this article is welcomed as long as the following is included: Mark Hunter, “The Sales Hunter,” www.TheSalesHunter.com, ©2012

Are You Succeeding on Purpose?

Repeatable Success

Guilty of accidental success?

Five words consume your every thought as you think to yourself, “I should have seen it coming!” But you didn’t.

Another sales forecast missed for the last reporting period and the revenue you thought would come in, simply didn’t. Instead, what came was the CEO’s invitation to meet with her about last quarter’s shortfall.

You were going in prepared with the four economic shifts affecting the whole industry that resulted in last quarter’s missed forecast. You rehearse the four talking points in your mind:

1. Tight budgets
2. Competitive landscape
3. Shifting consumer trends
4. Longer buying cycles

You are not only prepared, but convinced that these four areas are commonly understood and accepted conditions that the CEO can take to the board as the reasons for the continued declines.

As you walk into the CEO’s office, you notice the subtle, yet noticeable change in her disposition. Whereas recently, frustration ruled the day, today is different. You think to yourself, “Is she distracted? No, not distracted, but melancholic…or is that disappointment? Yes, disappointment. Or perhaps its…”

“Chris,” she says for the second time, interrupting your thoughts. The CEO wastes no time in delivering those five haunting words…”We are letting you go!” It’s funny how, when caught off guard, your mind goes to the strangest places. Instead of presenting your defense, you suddenly realize in a moment of clarity that she only uses “we” when “WE are having a good month”…or when “WE have to let someone go.” With the recent sales shortfalls, there has been no “WE are short of projections,” that’s for certain.

The rest of the 5-minute discussion–monologue, actually–is a blur. All that remains are the five words rattling around your head that you just can’t seem to shake…”We are letting you go.”

In the following days, you are less shocked by the decision as you knew this was a distinct possibility. What has really rattled you though, is that you remember the day you went from being the company’s ‘Golden-child’ to being incapable of hitting a single sales forecast for 6 consecutive months. You hadn’t done anything differently, and had kept the intensity high with your team, but you had no idea what truly caused the sales decline. What happened?

~~~~~~~~~~~~~~~~~~~

Sound vaguely familiar? Thanks to a colleague sharing his story, this likely has a healthy dose of realism for a few of you. While the end of the story may be different for you, chances are you have had a change in the business environment in which you were no longer producing the same results that came easily only a day earlier.

The common question is, “What contributed to the sales decline?” The more appropriate question is, “What contributed to the success in the first place?”

Let’s be honest with each other for a minute. We ‘sales and marketing types’ are an interesting breed. For many of us, we are quick to claim it was our doing when things are going well. When performance declines, we are quick to look for and point to conditions that created the performance issues. “It certainly wasn’t my fault!”

For these exact reasons, this website was created to help the executive level leaders down to the front-line reps ‘Succeed on Purpose!’ That’s right, succeed on purpose – an operating philosophy and principle I developed over the last two decades. In other words, it is the process of creating intentional, predictable and repeatable successes. Watch for my book by the same title, ‘Succeed on Purpose,’ in the near future.

I encourage you to not only be a reader and consumer of the concepts, methodologies and recommendations, but also a contributor. The incentive? First, it is better to give than receive. Secondly, for a select few that contribute meaningfully to the discussions and posts, I may very well use you as a contributor in my book…only with your written consent, of course.

Enjoy!

AUTHOR’S NOTE: If you would like to see more posts like this, make sure Tweet, Like, +1 and/or Share with others as this is always appreciated!
 

Jeff Michaels | Repeatable SuccessAbout the Author: Jeff Michaels is a 20-year Sales & Marketing Executive that works with executives, leaders, and teams to create repeatable success in their business. Articles posted here typically emphasize one or more of the three requirements leading to Repeatable Success — Intentionality, Predictability and Repeatability.