It’s Not WHAT You Do But WHY & HOW You Do It

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It’s Not WHAT You Do But WHY & HOW You Do It

January 27, 2012 in Attitudes & Behaviours, Clarity, Culture, Ethics & Values, Mindful selling

In December 2011 we published The 12 Sales Trends of 2012 and invited readers to vote on what they thought would be the most important trends in sales for this year. ‘It’s not WHAT you do but WHY & HOW you do it’ topped the rankings.

It seems that having a Purpose, the WHY, which is more than just making a profit, is becoming a key focus as businesses, leaders and employees alike seek to find more meaning in their work and each other and most importantly their customers and community.

too much choice

Too much choice on the consumer landscape is now driving people to seek real connections and deeper meaning – a spiritual, psychological connection in their dealing with others if you will. Restlessness is emerging among consumers about who they want to connect with and buy from – they want to simplify and make every moment count. Businesses leaders are coming to realize, slowly, that it’s not WHAT you do that differentiates themselves from their competitors but WHY & HOW you do it. Many, however are still blinded by the Profit motive – the EBIT, especially publicly listed companies conditioned to meet ‘share holder value’. Losing sight of WHY you are in business in the first place and replacing it with Profit only is a very risky strategy.

Having a purpose, defining your WHY factor, encapsulates the very essence of why clients and customers want to associate with a business and how they can align with its values.

With increased consumer choice, people are becoming more business savvy. People are now assessing organisations, through their consumer, supplier, investor, employee and community filters sizing up the real reason and motives for being and doing business.

using a crystal ball to find the why

Despite this public assessment, many organisations still struggle to explain why they exist and how they do what they do, in a way that is easily understood and generates a curiosity to know more. WHY you do what you do and HOW you make a difference must be front and center. In the wake of consumer disquiet at corporate greed, business’ cost management obsession, outsourcing and the move away from product as the focal point, what you do is not enough anymore.

In 2012 if we can’t communicate our story to our employees, customers, prospects, suppliers, investors, media, and the broader community then they simply can’t communicate our story to others or make informed decisions about how to engage with us.

A great example of a company really bringing this concept to life and getting it right is outdoor clothing and equipment company, Patagonia. Here is their reason for being, their purpose, their ‘WHY’:

Our Reason for Being: Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.
-Patagonia’s Mission Statement

Patagonia grew out of a small company that made tools for climbers. Alpinism remains at the heart of a worldwide business that still makes clothes for climbing – as well as for skiing, snowboarding, surfing, fly fishing, paddling and trail running. These are all silent sports. None requires a motor; none delivers the cheers of a crowd. In each sport, reward comes in the form of hard-won grace and moments of connection between us and nature.

Our values reflect those of a business started by a band of climbers and surfers, and the minimalist style they promoted. The approach we take towards product design demonstrates a bias for simplicity and utility.

For us at Patagonia, a love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet. We donate our time, services and at least 1% for our sales to hundreds of grassroots environmental groups all over the world who work to help reverse the tide.

We know that our business activity – from lighting stores to dyeing shirts – creates pollution as a by-product. So we work steadily to reduce those harms. We use recycled polyester in many of our clothes and only organic, rather than pesticide-intensive, cotton.

Staying true to our core values during thirty-plus years in business has helped us create a company we’re proud to run and work for. And our focus on making the best products possible has brought us success in the marketplace.

engaged employees

Patagonia demonstrates that to engage with employees, customers, investors, media and community you need to work from the heart, not just the head. Pursuing profit at the expense of these other things is shortsighted at best.

How do you create an integrated organisation that engages heart and head? Here are some questions to get you started:

What is your story? How did you come to be in existence?
What do you stand for?
Why do you do what you do?
How do you do what you do?
How do contribute to the greater good?
What are you giving back to your community?
How do you make others feel?

These questions will give you a start but to really make progress, the concept needs wholehearted commitment. Don’t even attempt this process if you’re not willing to be honest about your intentions as a business because your insincerity will be obvious and in today’s world reputation is critical.

With consumers now better educated, techno-savvy and better connected than ever before, the need to articulate WHY you do what you do and HOW you do what you do is critical for differentiating your business in 2012 and beyond.

Remember everybody lives by selling something.

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

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Breast Ain’t Best: Why Sex & Selling Don’t Mix

November 17, 2011 in Attitudes & Behaviours, Culture, Sales Relationships

‘Sex’ as a consumer marketing and sales strategy infiltrates our daily lives via advertising, celebrity endorsements, tabloids, publications and various other means and has done so for as long as we can remember. Using images of women (more recently men) in a variety of formats is supposed to entice prospective buyers (adults) and sell products and services. The ‘sex sells’ consumer marketing strategy is more recently infiltrating children’s markets creating much angst and debate about its merits and rightly so.

I want to make it clear that I’m not attempting to debate the use of ‘sex’ in consumer marketing here. Although I would like it on the record that I don’t support the sexualisation of children in any form and abhor using children in such advertising.

Exploitation of Women

This article is about the use and exploitation of women in business, particularly, B2B (business to business) sales environments. Females are mostly great at sales. They usually have the right demeanor and emotional intelligence to do well. Using women to sell is a great idea, using women for their “womanhood”, I believe leads to the trivalisation of good business practices and of women as legitimate business professionals. This type of sales tactic reduces customers to the lowest common denominator and leads us down the slippery slope of the sexual discrimination of women in the workplace. Just look at IBM. A highly successful sales woman is currently suing IBM for sexual harassment by a male senior sales manager. Sadly the ‘show us your t#ts’ and other less than savoury fair is still making the rounds of some sales teams.

In my many years in business, I’ve heard many stories of people (usually women) being ‘used’ to get sales or increase sales. Often these people were not fully aware until after the fact, as to why they were allocated certain accounts. These people (usually women) soon discover that they are there because of their gender and good looks, not because of their ability to perform as professional business and sales people. One manager was heard to say to a young up-and-coming and successful sales woman after she questioned why she was being sent to a certain client who was less than professional in his dealings with her, ‘we sent you there because he (the customer) loves looking at good looking women’.

The women I speak to are clearly disappointed and in some cases alarmed at being treated as sexual objects. I know because as a 21 year old pharmaceutical representative, my manager knowingly sent me to call on a sleezy doctor whose reputation for sexual advances and other dubious practices was well known in the industry. What happened to me was, to say the least, very frightening. Once I entered the doctor’s surgery room he locked the door, offered me a whiskey (which I declined) and tried to sit right beside me. I was up and out of that chair so quick, standing at the door demanding to be let out. He tried to coax me back but I told him I would scream if he didn’t let me out. The door was unlocked and I bolted. I told my manager about what happened and he said not to worry I didn’t have to back there. Nothing was done about this doctor and it was all swept under the carpet. Not what I was hoping for and the cycle still goes on somewhere today. Not good enough.

By contrast there’s no doubting there are women who choose to use their sexuality as their sales strategy, positioning themselves as something other than a professional sales person. I am no prude but this type of approach leaves me and many other women cold, it is not how we want to be remembered.

Recently, I had the pleasure of speaking to the ‘Women Sourcing Network’; a group of smart business women specialising in procurement for the IT sector. We discussed the sales profession and how sales and procurement practices are changing. The topic of ‘sex sells’ was also mentioned. One woman explained how an IT supplier sent in a young woman representative, whose ample cleavage was visible for all to see in her tight low cut business attire, to meet with the ‘procurement person’. The IT supplier had expected the women rep would be meeting with a man. When it was a woman, the shock on the representative’s face was clearly visible. The meeting was very uncomfortable for both the supplier and the customer as the initial intention of the sales person was to entice the customer for all the wrong reasons.

So how seriously do you want your business, yourself and your team to be taken?

Businesses are now relying heavily on the latest innovation, cutting edge ideas, expert knowledge and the ability of suppliers to help map pathways forward to the future. Surely flashing cleavage and other “bits” is more a distraction than an asset. It’s a dicey strategy to employ a ‘sex sells’ strategy in B2B sales. I’m not saying that all women are set up. Yes there are some women happily playing along with this game, however, in today’s world business ethics and transparency on all levels are key. The tactic to entice the male buyer – procurement person with ‘sex’ is wearing thin.

Does it help to look well presented? Yes. In fact, many sales people could benefit from some lessons in how to put a wardrobe together and lift their game on the presentation stakes. It’s important to look good, feel good and represent your company well. Taking effort to look good helps portray that you will also take effort with what you’re selling.

Does it help to look sexy in B2B sales? Well it’s all in the eye of the beholder. You could be well turned out, not overtly exploiting your ‘bits’ and still be deemed sexy by some, however, this is usually a private interpretation from the other person. The question is are you there to try and look sexy? How you portray yourself and how you are received all depends on your intention. If you go to market with the intention of being professional, well prepared and well presented then I find you are treated with respect. If you go to market with the intention of selling yourself through sex then you reap what you sow.

So what are you trying to say? What are you trying to sell? As a business woman how do you want to be remembered?

balance between masculine and feminine qualities

I fear we may have lost sight of the true value of femininity in business if it is being reduced to just about exposing flesh. Today’s world of selling requires a balance between masculine and feminine qualities to be really effective. Masculine qualities are about being proactive and focused with a “go-out-into-the-world and find the opportunity approach” (prospecting). Feminine qualities include skills which respond to the subtleties of more complex relationships; genuinely listening and patience, nurturing and dealing with ambiguity. Think of the types of conversations you now need to have with your prospective customers where listening, questioning, resolving problems, collaboration, empathy and understanding are encouraged. Clouding the issue with blatant sexual overtures is no help to an ever evolving, complex world.

Many say in business and in life it helps to be ‘attractive’ and that beautiful people are more successful. Maybe there’s merit in this view but intellectual substance needs to be of any value to your business, your customers and, above all, to yourself.

Remember everybody lives by selling something.

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

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Learning how to ride the Boom AND Bust economy

November 3, 2011 in Attitudes & Behaviours, Business Acumen, Culture, Marketing, Resilience, Sales Leadership, Sales Planning, Sales Results, Strategy

These turbulent, challenging and sometimes volatile times we find ourselves living in are making many of us rethink how we do business, how we live our lives and how we engage with the world. Unless you are hiding under the doona, the rest of us are witnessing and experiencing a major transition from the Industrial Revolution to a brave new world of the New Tech paradigm.

This transition is exciting and frightening at the same time because the ‘new order’ is not ordered at all. It keeps changing at a rapid rate leaving a constant sense of unease. Many of the old rules no longer apply and people are left feeling restless and confused. Some are thriving, of course, because they love the excitement of so many options and so much change. However, with too much choice how do we sort through so much information to make good decisions for ourselves, our teams, our businesses, our families and so on?

Is the 5 year strategic plan dead? Probably. Is the alternative not to plan at all? Probably not.

So how do we get used to this? How do we keep our focus and still be adaptable?

boom AND bust hand in hand

Welcome to the Boom AND Bust World.

The reality is we can no longer claim to operate in a Boom OR Bust economy, where repetitive cycles gave us some form of predictability. We now live in a Boom AND Bust world where some businesses, communities and countries are prospering and making the most of what’s on offer and other businesses, communities and countries are going out of ‘business’ because they can’t, won’t or don’t adapt quickly enough to have the foundations in place to ensure their future viability.

So how can we learn to adapt and keep our heads while others around us may be losing theirs?

We’re now seeing and will continue to see some industries and businesses halve their sales revenues and watch the disappearance of margins due to commoditisation, reconstitution or irrelevance of their products. Other businesses and industries are more than doubling sales because they’re reading the signals and subsequently innovating and adapting to an ever changing world. Couple this with the massive restructure in consumer preferences and how they like to buy. People are now looking for connections that are real and genuine as they sort through mountains of information. They’re looking for businesses, brands and people they can trust.

Some industries will not make it. They’re fighting for relevance, trying to hold onto the old model. Recently, I was amazed to see a double page advertisement in a major Australian newspaper’s weekend magazine extolling the virtues of GP Pharmaceutical Sales Representatives and how vital they are to GPs education and our wellbeing. However, according to a recent ABC Radio National Background Briefing report the majority of GP’s don’t want to see medical sales reps; they simply don’t have the time and they can get their information from the web. Those who do want to see medical usually hope to garner a free lunch or some other bonus unrelated to the medicine and our wellbeing. The relevance of GP medical sales reps is dying out. Another business model recently in the public eye is the hard copy newspaper business. What will this industry look like in five to eight years time? Will hard copy newspapers even exist? There’s been a dramatic and rapid drop in sales of hardcopy newspapers in Australia alone and new models are quickly stepping in to take their place..

jumping to a better place

These are two examples of high profile, powerful industries under pressure to adapt and change. Imagine the benefits of these changes. For instance, the costs of medicines going down because we as consumers are no longer funding large and expensive field sales forces. Well, one might dream… Yet, instead of quickly adapting to change, it’s tempting to put your fingers in your ears or the doona over your head and pretend it isn’t happening. Not the best strategy for survival. Adapt or die I hear you say.

Instead of living in fear of change here are some tips to help you navigate your way on your journey and take action to stay on top, out the front or in the game:

Assess Risks: Identify and manage your risks. Engage your team and other key people (trusted outsiders) in a SWOT analysis and strategic review http://www.barrett.com.au/sales-consulting.html of your business . It’s a helpful exercise to do (SWOT = Strengths, Weaknesses, Opportunities and Threats) and gives you a good starting point with which to make decisions.
Control the Controllables: Work out what you can Control, what you can Influence and what you can not. Then define tactics and set out to do what you can to control and influence your thoughts, feelings and actions.
Seek out Opportunities: Look for opportunities where you can grow sales, build markets, create new products or revitalise old products. A great way to look at where your business can grow is to look at 4 segments: 1)Current Products with Current Customers, 2) Current Products with New Customers/Markets, 3) New Products with Existing Customers, and 4) New Products to New Customers or Markets.
Make Decisions: Questions deliver answers. Make sure you ask yourself key questions to help you make better decisions moving forward. For instance, decide why you are in business. Decide what you want to stand for. Decide what it is you do best and who would value and buy what you do. Decide if your current business model is still viable or not. Work out the decisions you need to make and then make them. Indecision is the worst thing you can do. Even if you make a wrong decision it is better than no decision.
Solve Problems: What problems do you need to solve in your business? Ask your people for ideas and input. Are these problems worth solving? Are they solved via other means other than what we are used to? Sort it out and then get on out there and solve them. No point doing a ‘BMW’ – bitch, moan and whinge.

We are indeed living and working in more challenging and unprecedented times. I propose that BAU (business as usual) is now a redundant term. The 21st century is all about being adaptable, innovative and quick on your feet as well as being a good listener and remaining patient and calm at the same time. Not your normal bed fellows.

I propose we are now experiencing the paradox of ‘AND’ where we live with ambiguity and need to incorporate ideas and actions that did not go together in the past. In order to thrive, not just survive, we need to get used to this ‘AND world’ and learn to live as comfortably as we can within the ambiguity and changes that surround us every day.

power of choice

That said many people are not comforted by these changes or even by my suggestions, however our success lies in how we approach change. During any time, especially turbulent times there is one constant – the power of Choice. We are never without Choice in any situation and how we choose to respond. So make a decision and choose what is best for you, your people, your business, your customers, your family and beyond. Build your resilience, learn to ride the waves. Don’t sit back and simply worry because worry doesn’t fix anything, it just makes it tougher for you.

There is a wise Buddhist saying: ‘If there is a problem you can fix, why worry? If there is a problem you cannot fix, why worry?’

Welcome to the World of Boom AND Bust and enjoy the ride.

Remember everybody lives by selling something.

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

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The Practice of Confusion Marketing

October 6, 2011 in Attitudes & Behaviours, Culture, Marketing

I wonder how many people, business owners and consumers alike are experiencing excessive frustration, anxiety or even depression as a result of the Confusion Marketing tactics employed by some businesses?

Confusion Marketing is the controversial strategy and practice of deliberately sending confusing marketing material in order to hinder consumers’ comparisons with other similar offers.

Confused Marketing

Many examples are to be found in the telecommunications, banking and finance sectors, where pricing plans, contracts or interest rate offers can be so complicated that it becomes impossible to make direct comparisons between competing offers.

You will find that with companies that employ such tactics that when you want any form of customer assistance to sort out your bill, statement or service issue, you might as well resort to prayer because that is likely to be more useful than the current standards of service on offer.

Confusion Marketing is the opposite of what we endorse as ethical, transparent selling and business practices. Sadly, Confusion Marketing is still classified as a legitimate selling strategy, but is really nothing more than deception, sleight of hand, trickery. Like smoking, just because it’s legal doesn’t mean it’s right.

In March 2006, Theresa Gattung, former CEO of Telecom New Zealand, courted controversy by characterising telcos to a Sydney audience as not “straight up” with customers on pricing. “Think about pricing,” the press quoted her as saying, “what has every telco in the world done in the past? It’s used confusion as its chief marketing tool. And that’s fine … But at some level, whether they consciously articulate it or not, customers know that’s what the game has been. They know we’re not being straight up.” On February 2, 2007, Gattung announced that she would leave Telecom at the end of June 2007.

The net results of Confusion Marketing show there is very little loyalty and a great deal of company switching, subsequently wasting valuable time and energy which could be dedicated to other more productive tasks. Even Einstein would have trouble working out the confusing, ambiguous contracts on offer.

Expensive Mobile Phone Bill

Bill shock is an obvious result of confusion marketing for all the wrong reasons. Bill shock can generically be used as a term for the surprise an individual receives when the amount owing on their bill is higher than expected. Other examples of bill shock have been noted in credit card bills, rental bills and utility bills. The amount of anxiety and distress an individual faces due to these circumstances shows the extent of how poor this business practice is.

I wonder just how many man hours are wasted in lost productivity because people are forced to spend hours and hours working through the finer details to make an informed choice. The same can be said for the hours spent on the phone waiting to get through to someone intelligible to work out a dispute when confronted with Bill shock or incorrect bills.

The Productivity Commission would have a field day trying to work out just how much of our time and money has been and is wasted because of Confusion Marketing. I would love to send a bill to our current telco for all the hours my business manager has had to spend to get our telecommunications plans working effectively, and even then there are still issues. Based on present calculations, I would be able to send a bill for $4,000 at least. I wonder how they would respond to that.

Since 1 July 2010, Bill shock is illegal in the EU. Eurotariff protected consumers by introducing a cut-off mechanism once the bill reaches €50 per month, unless they choose another cut-off limit. There is speculation that this legal precedent will be copied internationally causing quick industry response on solutions for the problem.

Maybe we could get Confusion Marketing made illegal as well? Perhaps then those businesses and markets that still choose to indulge in this dubious practice will to start to be better business citizens and take responsibility for their actions. We live in hope.

Remember everybody lives by selling something.

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

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Procurement & Value Managed

September 15, 2011 in Culture, Customer Service, Procurement, Value Creation

‘Procurement & Value Managed’ was voted as the Number 8 for Sales Trends for 2011. In 2011 we are seeing the development, thinking and sophistication of the Procurement Profession accelerate. This progression will surely see procurement on the front foot of supply chain management. Around 60 percent of major global corporations now have Procurement and Supply at the executive table alongside sales, marketing, finance, production, HR, IT, etc. Security of supply, environmental credentials, sustainable business practices, integrative processes and business cases will be up for discussion at the executive level and procurement are right in the centre of key decisions making. Smart procurement professionals will centre much of their thinking and advice around Value Management rather than Cost Management.

Contrary to popular myth that all procurement people want to negotiate the lowest price, the procurement profession is presenting itself as far more sophisticated than most sales people give it credit for.

Recently I had the opportunity to attend and present at the CIPSA CPO100 conference where the top 100 Australian companies were represented by their Chief Procurement Officers. The insights and findings were fascinating – a significant feature being the growing importance of having viable relationships with internal stakeholders, sales people, suppliers and customers. The procurement profession recognises that in the past, its members haven’t done the best job in building and managing viable business relationships within their own organisations or with suppliers, admitting that the end-user customer could even be forgotten.

But things are quickly changing – smart procurement professionals now recognise they need to look at the whole supply chain process. They need to have a firm grasp of the organisation’s strategy, culture and capability as well as an understanding of the intricacies of the changing needs of their customer base and their buying behaviours.

In this volatile world, it is well recognised that customers no longer buy vertically and now buy horizontally, subsequently creating havoc in traditional supply chains. For instance ‘Zara’* one of the latest fashion brands to hit our shores has a three week turnaround on new range promotions. This means that new product materials need to be sourced, made and shipped to store within 15 days. This means 16 new ranges per year. This has turned supplier relationships, procurement practices and the retail fashion business on their heads.

How does procurement respond in this instance? According to Supply Chain Management expert Dr John Gattorna they make sure they fully understand the business, its strategic priorities, its customers’ buying habits, internal stakeholders and suppliers’ capabilities. He states that sole focus on cost management will not work in this case and says that effective supply chain management is all about understanding the behavioural profiles of your customers, internal key stakeholders all the way through to your suppliers. Aligning your behavioural preferences along with your strategic intent and cultural values will get much better outcomes for all concerned.

Procurement realises that multi-disciplinary work clusters within organisations rather than silos proves more effective. This means that people actually get to talk to each other and really connect about projects, production, supply and successful outcomes in the field.

Procurement professionals admit there is still some way to go as far as the reputation and actual capabilities of their profession. They know they need to reposition and rebrand procurement as a strategic partner offering ‘value’, as suppliers also need to. Many procurement professionals are fast realising they need to adopt the same skills they value in highly effective sales people or account managers.

The irony is that often the professions of Procurement and Selling have been pitted against each other when they have all the while really been trying to achieve the same thing – bring value to their clients and/or stakeholders.

Rather than work against each other smart procurement and sales professionals work together each understanding their goals and objectives and where they can find common ground and viable business relationships. Smart procurement and sales professionals are business people looking for viable solutions that serve the end user – the customer, as well as the businesses of both client company and supplier.

This is why I’m building bridges between the two professions. I have invited Craig Rooney, Group Procurement Manager for Porter Davis Homes and former Coles Group Procurement Manager to discuss what 21st century procurement professionals are looking for from sales people that’s beyond the price discussion at the CSE11 Sales leadership conference on 10-11 October 2011. This will be the first time a procurement professional has presented to the sales profession in Australia. As I have been given the opportunity to speak at CIPSA conferences on several occasions I thought it would be good to hear from procurement.

So the sales profession could do itself a favour and pay attention to these changes and ditch the ‘Us versus Them’ scenario when it comes to dealing with procurement. 2011 and beyond is about working with procurement to build viable relationships manage real value.

*It should be noted that Zara has come under scrutiny for breeches of working conditions as it has been accused of using slave labour in Brazil. Their procurement practices are currently under investigation.

Remember everybody lives by selling something.

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