Business Survival in 2009
Business Survival in 2009
”Only the mediocre are always at their best.”
- Jean Giraudoux
Since this is on the minds of most people and business leaders I speak to each day, I thought this would be a good topic for this month’s newsletter. While many companies are struggling to reach their goals (many adjusted to reflect the times), there is a subset of organizations that are growing – yes, growing. Some have carved out a niche for themselves, some are in unique (growing) industries, and others are taking business from the competition.
Granted, I am not trying to paint this overly rosy picture because we all know the economic issues are real, however let’s remember - the economy has SLOWED but it has not STOPPED. Your customers are still spending money, but more slowly and more deliberately. It’s your objective (specifically your salespeople) to position yourselves at the front of the money line. On the surface, “easier said than done”, so let me detail some examples of what I see working.
I’ll share my thoughts based on the following success factors;
1. VALUE - Clarity on what value your company provides to your customers
2. SALES – A highly efficient sales force
3. ACCOUNTABILITY – Core leadership strength to keep people focused
Too often the VALUE of a product or service is lost in the complexity and pressure of a sales cycle. It is easy to blame the sales representative but, often the breakdown starts with a lack of clear understanding of how your customer will benefit from buying your product or service. I would agree that your top sales people will figure it out on their own and make it part of the dialog with the customer but, what percentage of your sales force is the top tier – 20%, 30%? Make it easier for the rest. The “deliberate” aspect of spending dollars in this economy is directly related to the value it returns. Higher revenue, greater efficiency, improved productivity – if that is not clear to the buyer(s), or does not exist, good luck! This must be understood by every leader in your organization so that it can be reinforced and be part of the leadership (specifically sales) message. The value or benefit to you customer is directly impacted by your defined strategic direction and competitive advantage. How do you measure your success in important achievement areas – customer satisfaction, company culture, internal operations, and financial performance? What is your business focus? What differentiates your company from the competition? What are your company’s core competencies to support this value? The value of having answers to these questions is equally important to the dialog you stimulate with your company’s leaders. It builds immediate buy-in and commitment to what makes your company great and the perpetuation of success.
An optimized SALES force does not happen by accident. In fact, a large percentage of sales organizations I encounter do not have a truly scalable model that can endure during good and bad times. So, for the purposes of talking about this success factor let me detail what is missing and let you work the other way to improve your situation. Lack of consistency (a.k.a. planning, process) is a major issue. In an informal survey I performed with companies having less than 250 employees, about 50% did not use a CRM (customer relationship management) system to track sales opportunities. Sales representatives were disorganized, sales leads were missed, and opportunities languished in the pipeline. The negative impact was not as evident during good times but with a thinner sales funnel during tough time, it becomes glaringly obvious. There has been a significant push over the last few years to move sales organizations toward a value based selling model. The importance of this is more evident now than ever before. If you are not familiar with the concept is essentially boils down to connecting the value of your product or service to the end-result-benefit it provides to your customer. For example, your product “X” may have a variety of features and benefits but it is up to your sales people to uncover which features and benefits help the customers business. Does it increase the productivity of people? Increase manufacturing efficiency? Minimize downtime? Add revenue to the top line? This list is long and is unique to each customer. Referring back to the previous paragraph – performed well, this moves your company to the front of the line as your customer hands out purchase orders.
The reasons are varied and plentiful as to why it is often missing, however ACCOUNTABILITY is absolutely critical to business success. You’re probably thinking, “We hold our people accountable”, and that may be true, but the lack of accountability is a major culprit in the effective execution of business plans for many organizations. When we are asked to assist with the development and execution of a successful strategy, the first question I ask is “Can I see your plan from last year?” If it exists in writing (often it is implied or floating around in the heads of a few executives), typically it is pulled from the shelf, is dusty, and has not been reviewed since it was created a year ago. It could be the best strategic plan ever created but there was no opportunity for the leadership team to hold each other accountable to the results. Need I say more? Holding individual employees accountable is something else but just a critical since it cuts across every aspect of your business and provides multiple points of failure. Leadership strength (and that is all leaders in your company) makes the difference here. Every single employee in your organization should have a very clear understanding of what is expected of them regarding there performance. Using your own cultural language, delineate the difference between A, B, and C level performance. Some A-performers can be groomed for leadership. The B-performers are great targets for coaching opportunities – moving them to the A-level. The C-performers need to be dealt with quickly and concisely as they are your obvious points of failure. The options are simple, improvement to an acceptable level or they must go. For some of you, this is a difficult concept but ask yourself “What is best for business?” The risks are too high.
Business Survival in 2009 - To learn more about this author, visit David Liddell's Website.
Like this article? Share it with your friends
Business Survival in 2009
”Only the mediocre are always at their best.”
- Jean Giraudoux
Since this is on the minds of most people and business leaders I speak to each day, I thought this would be a good topic for this month’s newsletter. While many companies are struggling to reach their goals (many adjusted to reflect the times), there is a subset of organizations that are growing – yes, growing. Some have carved out a niche for themselves, some are in unique (growing) industries, and others are taking business from the competition.
Granted, I am not trying to paint this overly rosy picture because we all know the economic issues are real, however let’s remember - the economy has SLOWED but it has not STOPPED. Your customers are still spending money, but more slowly and more deliberately. It’s your objective (specifically your salespeople) to position yourselves at the front of the money line. On the surface, “easier said than done”, so let me detail some examples of what I see working.
I’ll share my thoughts based on the following success factors;
1. VALUE - Clarity on what value your company provides to your customers
2. SALES – A highly efficient sales force
3. ACCOUNTABILITY – Core leadership strength to keep people focused
Too often the VALUE of a product or service is lost in the complexity and pressure of a sales cycle. It is easy to blame the sales representative but, often the breakdown starts with a lack of clear understanding of how your customer will benefit from buying your product or service. I would agree that your top sales people will figure it out on their own and make it part of the dialog with the customer but, what percentage of your sales force is the top tier – 20%, 30%? Make it easier for the rest. The “deliberate” aspect of spending dollars in this economy is directly related to the value it returns. Higher revenue, greater efficiency, improved productivity – if that is not clear to the buyer(s), or does not exist, good luck! This must be understood by every leader in your organization so that it can be reinforced and be part of the leadership (specifically sales) message. The value or benefit to you customer is directly impacted by your defined strategic direction and competitive advantage. How do you measure your success in important achievement areas – customer satisfaction, company culture, internal operations, and financial performance? What is your business focus? What differentiates your company from the competition? What are your company’s core competencies to support this value? The value of having answers to these questions is equally important to the dialog you stimulate with your company’s leaders. It builds immediate buy-in and commitment to what makes your company great and the perpetuation of success.
An optimized SALES force does not happen by accident. In fact, a large percentage of sales organizations I encounter do not have a truly scalable model that can endure during good and bad times. So, for the purposes of talking about this success factor let me detail what is missing and let you work the other way to improve your situation. Lack of consistency (a.k.a. planning, process) is a major issue. In an informal survey I performed with companies having less than 250 employees, about 50% did not use a CRM (customer relationship management) system to track sales opportunities. Sales representatives were disorganized, sales leads were missed, and opportunities languished in the pipeline. The negative impact was not as evident during good times but with a thinner sales funnel during tough time, it becomes glaringly obvious. There has been a significant push over the last few years to move sales organizations toward a value based selling model. The importance of this is more evident now than ever before. If you are not familiar with the concept is essentially boils down to connecting the value of your product or service to the end-result-benefit it provides to your customer. For example, your product “X” may have a variety of features and benefits but it is up to your sales people to uncover which features and benefits help the customers business. Does it increase the productivity of people? Increase manufacturing efficiency? Minimize downtime? Add revenue to the top line? This list is long and is unique to each customer. Referring back to the previous paragraph – performed well, this moves your company to the front of the line as your customer hands out purchase orders.
The reasons are varied and plentiful as to why it is often missing, however ACCOUNTABILITY is absolutely critical to business success. You’re probably thinking, “We hold our people accountable”, and that may be true, but the lack of accountability is a major culprit in the effective execution of business plans for many organizations. When we are asked to assist with the development and execution of a successful strategy, the first question I ask is “Can I see your plan from last year?” If it exists in writing (often it is implied or floating around in the heads of a few executives), typically it is pulled from the shelf, is dusty, and has not been reviewed since it was created a year ago. It could be the best strategic plan ever created but there was no opportunity for the leadership team to hold each other accountable to the results. Need I say more? Holding individual employees accountable is something else but just a critical since it cuts across every aspect of your business and provides multiple points of failure. Leadership strength (and that is all leaders in your company) makes the difference here. Every single employee in your organization should have a very clear understanding of what is expected of them regarding there performance. Using your own cultural language, delineate the difference between A, B, and C level performance. Some A-performers can be groomed for leadership. The B-performers are great targets for coaching opportunities – moving them to the A-level. The C-performers need to be dealt with quickly and concisely as they are your obvious points of failure. The options are simple, improvement to an acceptable level or they must go. For some of you, this is a difficult concept but ask yourself “What is best for business?” The risks are too high.
Business Survival in 2009 - To learn more about this author, visit David Liddell's Website.
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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