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Delivering Real Value beyond Product & Price

April 19, 2013 in Attitudes & Behaviours, Brand & Reputation, Business Acumen, Competition, Value Proposition & Value Add

In December 2012, we published the 12 Sales Trends Report for 2013 and released a brief summary of each trend. This month we are focusing on the Sales Trend “Delivering Real Value beyond product and price”.

For many years most of a product’s value came from the production processes that converted raw material into useful forms. Now real value is coming from supply chain logistics, partnership agreements, overall business improvements, shared innovations, technological improvements, styling features and other attributes that only people can create.  

In the 21st Century the intangible is now more valuable than the tangible. Products, services and technology can all be replicated by a competitor but people, ideas and relationships cannot. It is the intellect of our people, the creativity of our ideas and the depth of our relationships that must be fostered and there must be a clear relationship between these things and the brand. In other words, the organisation must be viewed as the source of these intangible qualities rather than the product.

This sales trend highlights that the real value of our offerings lies in intellectual property: the know-how and wisdom of our people and how they interact with our businesses and our markets.  The bottom line is that if you don’t value intellectual property then you don’t value relationships, you don’t value ideas and you don’t value thinking. You are on the path to obsolescence.

intellectual propertyFor organisation to harness and deliver real value beyond product and price there are three (3) key areas to consider:

  1. Tacit knowledge: Tacit knowledge represents the ‘know-how’ in an expert’s work, but it can be difficult to articulate. It typically becomes implanted in an individual’s routines and company’s culture and thus can remain hidden.  There is incredible value residing in tacit knowledge and people can pay good money to access it.
  2. The Value chain: smart companies know that their wisdom needs to be tracked right across their value chain, clients and suppliers.  Savvy salespeople know the touch points where this knowledge is crucial and so do their internal stakeholders.  The value lies in the educational journey across the entire value chain, not the product.  It is the outcome and consistency that is produced as a result of the effective use of the value chain.
  3.  Company Stories:  If done well, it is the companies that become synonymous with these intangible qualities that are the most successful. Think Google, Nordstrom, Mayo Clinic or Mattel – all are known as creative, relationships-driven organisations that attract those sorts of people. Those intangible qualities built around ideas and relationships have found their ultimate expression in the form of a brand. Stories are then told about that brand to reinforce the value of their intellectual property and those stories trump every other product, price or service advantage an organisation might have.

A major transition for any sales team

major transitionThis means that our sales teams need to transition from being walking talking product wikipedias to being business consultants and advisors who can confidently position the real value of their offering – namely them and their organisation’s people and their business partners/suppliers who genuinely know how to add value in real dollar terms.  

This sales trend highlights how we need to harness the power of our thinking, our people and our stories to add value beyond our traditional products and services.  Our sales teams and businesses need to be demonstrating our abilities to collaborate and work with our clients to make their lives easier, more effective, more efficient and less risky.  And the pleasant surprise is that more and more companies are beginning to see that people are prepared to pay a premium for this intangible because it brings comfort and consistency – something in short supply in the busy, hectic world we inhabit.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au 

 

Leadership in Uncertain Times

March 14, 2013 in Attitudes & Behaviours, Business Acumen, Education in Sales, Sales Leadership, Sales Management

In December 2012, like in the previous years, we published the 12 Sales Trends Report for 2013 and released a brief summary of each trend. Throughout the year we will look into each of them a little deeper. This month we are focusing on the Sales Trend “Leadership in uncertain times”.

Extreme uncertainty is the new norm.  Living in a constant state of fear and anxiety only leads to more fear and anxiety. Research shows that highly distracted or stressed people don’t and can’t innovate and change and without purposeful leadership and reason to change people will stand still and be left behind, trampled in the rush to the future. 

In times of uncertainty, leadership is required more than ever; leadership that can take us into the unknown; pioneering if you will.

This sales trend predicts managers of all persuasions, especially sales managers, will have to take on leadership roles and reduce their dependence on ‘processes only management’ and technical gadgets to ‘fix’ sales and business productivity issues.  In uncertain times managing processes will only get you so far and then what?  No more hiding behind the desk and excel spreadsheets; no more looking for shortcuts so you don’t have to deal with people; no more leaving good sales performers alone and booting out the poor performers with no interventions. It’s time to lead.  And this means taking risks – calculated risks.

 taking-a-calculated-risk


taking a calculated risk

Smart companies realise that great leaders are great enablers.  The rules have fundamentally changed; what was once the norm is now obsolete: no playing it safe; sales leadership needs to be founded on sound thinking around new sales strategies and ways of operating, personal courage and conviction in adversity, and a willingness to experiment and pilot new ideas supported by learning and relearning.  Taking risks to design and develop sales teams of the future will be the hallmark of these new sales leaders along with building and earning trust and respect for all the right reasons.

Rethinking Sales Strategy

According to a recent international survey conducted by UK consulting firm Value Partnership there are some real issues facing businesses, especially big business when it comes to taking a One Company global approach. Many large complex global companies were taking a ‘one company’ approach but were struggling with what aspects of their business should be global and what should remain local.  Still confused many were trying to solve this dilemma by still focusing on structure instead of mindset and behaviours.  One company said it was shifting from hopelessly local to mindlessly global. Which continues to highlight the crisis in leadership we are facing.

Ownership of sales strategy

Effective sales leaders know only too well that their challenge it to take the overarching strategy of their organisation (global &/or national) and localise it to their markets and country so their sales teams can make it work. Giving sales leaders the freedom to make the overarching strategy work in their domain is critical especially for international and global businesses.

new-sales-strategy

Cultivating effective leaders and sales leaders will be the key; training them in ‘how to think’ about their business, market and value chain not just telling them ‘what to think’ is critical.  Developing their capabilities around creating and delivering sales strategies; being effective sales leaders; applying sales management functions; sales coaching; account planning; mapping sales force structure; finding and managing sales talent; monitoring and managing sales performance; as well as creating a climate of trust, collaboration and action.  

Effective sales leaders need to develop their own leadership style and have courage to be themselves. They establish their own vision and purpose as a leader and understand and respect that each person is different and accordingly adapt themselves and their leadership approach based on the levels of maturity of their sales people and teams.

Smart companies are realising they need their sales mangers to shift from being ‘super salesmen’ (as many are still today) to being effective sales leaders.  Training, coaching and educating sales managers to become effective sales leaders is complex yet doable and will be on the agenda of smart companies in 2013 and beyond.

 

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au 

Images used: Uncertain Times by Amy Casey 

Mastering the Sales Management Essentials

February 5, 2013 in Attitudes & Behaviours, Business Acumen, Coaching, Education in Sales, Sales Coaching, Sales Leadership, Sales Management

What are the Sales Management Essentials and how do we master them?  Well firstly Sales management and leadership is not about selling!

In fact when one examines the role of the modern sales leader it quickly becomes evident that there just isn’t time to sell. Equipping sales leaders to perform the tasks for which they are responsible, and sustaining the momentum of the sales force in its drive for incremental value and volume, at the same time as continuously improving the customer experience, is a challenge that demands a high degree of maturity, dedication, focus and extraordinary leadership skills.

Tragically many sales managers are promoted to this crucial role without the training and development that this demanding role requires. Too often these managers end up as little more than highly paid “super salespeople”. 

The brutal facts in today’s world of sales management…

  • brutal-facts-gunSales leaders are given very little or no support when it comes to being a competent, effective sales managers.
  • In most instances the majority continue to learn their craft by observing their managers and then replicating both the strengths and faults.
  • Today’s sales mangers perpetuate the mistakes of their managers.
  • Few sales leaders receive formal training in “sales management” practices – either before or during their tenure.
  • Sales management training happens less than annually or not at all.
  • Even where sales leadership is relatively mature, managers do not know what standards to use to coach and develop their teams.

 

The sureness of our success

  • If sales managers are more frequently and better trained and coached themselves, their sales teams achieve higher performance and results.
  • No other type of sales training has a more positive correlation between frequency of training and sales performance.

Whilst much is made of the role of sales leaders as coaches, little attention is given to the other crucial roles performed by effective sales leaders, beyond coaching and / or themselves being “super sales / relationship people”. 

With more than 40 years field research and experience observing and addressing sales and sales leadership challenges, Barrett has been able to highlight 8 fundamental functions of sales leadership which provide sales managers with the knowledge, skills, confidence and competence to…

  • Define sales strategy and see to its implementation
  • Develop, implement and monitor sales systems
  • Inculcate sales disciplines that support a performance culture
  • Stimulate innovation and change
  • Select and build sales teams
  • Train, teach and coach sales teams
  • Facilitate territory management plans that support strategy

 

sales management essentials

click to see our sales essentials website

These 8 Sales Management Essentials are:

  1. Creating and managing sales systems, processes and protocols
  2. Supporting the sales effort and instilling disciplines
  3. Developing and managing sales strategies
  4. Stimulating and managing change
  5. Managing sales performance, budgets and targets
  6. Sustaining commitment to the organization
  7. Developing, training and coaching
  8. Selecting sales team members and stimulating individual talent

sales-management-essentials-diagram

Sales management and leadership is a multifaceted role. Mastering these 8 functions is not easy however raising awareness and making these functions visible is the first step to sales management and sales leadership mastery.  Let’s get these topics in the sales leadership agenda and stop selling and start getting sales management fit.

Remember everybody lives by selling something.
Author: Sue Barrett, www.barrett.com.au 

 

PS: If you are interested in attending the Sales Management Essentials 5 day intensive workshop in 15-19 April 2013 please contact us to book your place or call (+61) 03 95330000.

Who is it for: Barrett Sales Management Essentials is designed for sales managers and people moving into a role in sales management who want to ensure they are current with sales management best practice.

Until now no single program has provided sales leaders with a complete curriculum of sales management and leadership skills and techniques.

Participants will leave this unique workshop with an entire portfolio of skills, systems and competencies, including…

  • How to create an effective sales strategy that supports the organisation’s focus;
  • how to develop, map and monitor territory plans;
  • how to profile what characteristics are required in salespeople and then how to interview and staff the sales operation;
  • how to introduce sales systems that enhance productivity and establish reward mechanisms to inspire top level performance;
  • how to manage under-performing salespeople, map customer, account, new business development and prospecting strategies and skills;
  • effective solution selling skills; including questioning, listening, analysis, problem solving, solutions development, influencing, integrating and closing. 

 

Sales Lessons out of the mouths of babes

December 13, 2012 in Attitudes & Behaviours, Business Acumen, Communication, Emotional Intelligence, Life Skills

‘Out of the mouths of babes’ is one of those expressions you hear adults utter occasionally.  Often amazed at the remarkable or insightful things children say, I think we do children an injustice by thinking this is an infrequent or rare occurrence.   The many children I have met over the years are very perceptive, smart and able to see through weak arguments and call people on them, even if the children, themselves, have not acquired the worldly experiences we accumulate as adults.

climbing frame

persistent, focused, determined, creative, curious and uninhibited

You may recall that I wrote an article a couple of years ago titled, ‘Where is your inner 6 year old when you need them?’ In that article I pointed out that the very qualities we want in effective salespeople are those we often see in young children.  The wonderful thing about most children is that they are persistent, focused, determined, creative, curious and uninhibited.  They often stand their ground to get what they want – many of them are unyielding… at least for a while until society in some way shape or form knocks these qualities out of  many of them. 

Sadly, too many times we inadvertently shut down these very qualities we want to encourage in later life.  So it was with great pleasure and curiosity that Peter Finkelstein and I recently attended a business presentation pitch prepared by two young boys from The Melbourne Montessori School*.

max spencer mms

max & spencer during the presentation

A couple of months ago one of the teachers,  informed us that, as part of their end of year project, Max (aged 11) and Spencer (aged 12)  wanted to do a business pitch and were wanting honest feedback on their idea and a chance to present in front of experienced business professionals.   Peter Finkelstein, our head of sales strategy, and I jumped at the chance to see how well these young boys would stand up and deliver in this space.   The result was amazing; far better than we hoped for and, far better than many adults we have seen perform in similar conditions.

So what was it that made these boys special?  Well let’s set the scene with some background information.   Firstly the boys were allowed and encouraged to do this assignment as a part of their school education.   This was seen as normal (and so it should be).

The Business of their Business: Max and Spencer’s business specialises in creating new innovative products and ideas.  They then look for viable business partners who can manufacture and distribute these products in various markets showing them how they could grow new markets, make more sales and, yes more money.

lego graph bar

present an exciting concept for Lego to make profit

The purpose of their presentation: To present an exciting concept that could open new markets for Lego. (It was our job as the adults to be Lego executives in this instance.)  Post the presentation we were able to ask questions and the boys would do their best to respond.

The boys had invested many hours in researching their markets, coming up with ideas and concepts, preparing a detailed presentation with the WIIFM (what’s in it for me the customer), product designs, target market information, projected earnings, partnership and IP arrangements, etc. It was impressive.

After the hour long presentation and Q&A session, Peter and I were walking back to our office discussing what we had just participated in. 

Peter says the analogy is simple. “As young minds, we are free spirits, less inhibited and prepared to ask questions. As we grow into adulthood we become reluctant to ask, more conscious of our egos and more willing to guess at the answers.”

Peter went on to say, “Well, this week I learned another valuable lesson that all salespeople – myself included – can learn from. And you guessed it, it was from two elfin-like boys.

Asked to do a business presentation as part of a school project these two boys researched the facts, had a clear view of what they wanted to say and what they wanted to get out of the presentation. And here’s the rub… they stuck to their guns.

Quizzed after their presentation by five adults – two of whom were total strangers – these boys were prepared to answer the questions, courteously refute and counter argue with adults, without displaying any disrespect. But the big thing is that unlike many salespeople, when pushed, they didn’t back off and offer discounts or rebates, special deals or off the table discussions. They presented cogent arguments for why their proposition was valid and in the best interests of the customer.

Here were two youngsters demonstrating that if you are confident in yourself and in your presentation, if you truly believe that you are offering value that the buyer wants, there is no reason to resort to needless discounting.

Lessons Learned

Lessons Learned

There were many other lessons to be gained from the exercise, but for me watching the two boys perform I couldn’t help but think of the many excuses I have heard from salespeople over the last 40 years about why they didn’t get the sale. What came to mind was the counter-arguments put forward in the many coaching sessions I have had, when I tried to point out that the salesperson backed off too early, or failed to fully grasp the value of his or her proposition. When challenged, these youngsters relied on facts to support their argument. They had researched their argument and had hard, irrefutable data to back up their claims. Now, if salespeople took the trouble to do the same thing, rather than relying on someone else to produce a brochure, sales would be that much better.”

I agree with everything Peter said.  But what I also love is that these children wanted and were allowed to do this project in the first place.  I know there are other schools encouraging similar projects and it is a testament to a teacher’s ability to see the valuable lessons at every level of this project.  Here are just a few examples the teacher gleaned as being educational and relevant to school and business:

  • Maths: working out percentages, averages, values, distribution, pricing, margins
  • Language and Communication: written and verbal; getting your message across and making yourself understood; asking and responding to questions
  • Research: finding and gathering information; making sense of it and putting it into sensible charts that can make effective cases
  • Design and spatial awareness: creating specifications and plans, mapping country distributions
  • Interpersonal skills: presentation skills, questioning and listening, thinking on your feet, etc. 
  • IT: using PowerPoint, the internet, computers, etc. for all sorts of things.
  • Confidence and resilience

I do not know if Max and Spencer truly understand the feat they achieved that day and in this project.  They may think that they could have done better and of course we all can, but Spencer and Max, Peter and I want you to know that you did an amazing job; you were outstanding and no doubt this experience will be a bedrock in your foundation of life if you want it to be.  The courage, confidence, consideration and determination you displayed will take you far.  We are indeed very proud to have attended your pitch presentation.   

So as the school year comes to a close I think we can all take heart that some of our future leaders, business entrepreneurs and innovators are already planning their and our futures.

*Some of you may be aware that my children are Montessori educated. A Montessori education is characterised by an emphasis on independence, freedom within limits and respect for a child’s natural psychological development, as well as technological advancements in society. It teaches children how to think, not just what to think and encourages an enquiring, curious mind that wants to explore Why? How? Why not? as much as What?. FYI Larry Page and Sergey Brin of Google fame are Montessori educated. I want to say thank you to Naomi, the Melbourne Montessori Cycle 3 teacher who encouraged Max and Spencer, and to our Principal, Gay Wales and the other parents who attended the presentation and treated it with the professionalism and respect it deserved.  More power to you.  And while they do say it takes a brave mother to raise a Montessori child , I wouldn’t have it any other way.

sales trends 2013

sales trends 2013

PS You can get a Sneak Preview as well as purchase and download the detailed 49 page report of the 12 Sales Trends for 2013 now to see which trends will have the greatest impact on your sales optimisation efforts in 2013.   In the meantime you can download our past trends here for free.

Remember everybody lives by selling something.

Author: Sue Barrett, www.barrett.com.au 

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