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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

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.

crystal-ball

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 BeingBuild 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

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

How your procurement practices affect your sales and brand

July 6, 2011 in Attitudes & Behaviours, Culture, Ethics & Values, Procurement

Ethical selling and procurement (purchasing) is now in the spotlight. Harvey Norman’s recent publicity surrounding their supposed sourcing and use of Australian native old growth forest timbers in their Chinese made furniture has drawn light on retail procurement practices.

Harvey Norman have been asked by activist groups NGO Markets for Change and GetUp.org.au to explain themselves.  GetUp.org.au has even gone to the lengths of creating and distributing a viral advertisement, ‘No Harvey No’ via the internet after the Television Classification Board refused to classify the ad, concerned about potential legal action if they did so.  GetUp.org.au have not been deterred and their internet advertisement has reached its nearly 600,000 members Australia-wide. Who’s right? Who’s wrong? What will be the impact? Who knows?

Whether or not GetUp or Harvey Norman are ethically and legally right in their actions, the matter of ethical procurement practices it not going to go away.  More frequently people are asking questions about where goods come from, what they are made of, transportation miles, etc. Many people are demanding that businesses act more responsibly when it comes to sourcing and distributing their products.

Procurement is now fairly and squarely in the spotlight and choices surrounding sourcing and  distribution activities can have a dramatic effect on a company’s brand, reputation and sales revenue.

Let’s look at another recent example of public influence; Australia’s live export cattle trade is now under intense scrutiny. Why did they let cattle go to these abattoirs? Didn’t they know about the poor work practices in play?  No one can escape the net.

Whether you’re sourcing product or supplying product it’s important to acknowledge that in the blink of an eye, the stroke of a key or the post of a tweet, can have you and your practices under the microscope.

Sourcing, supply and distribution should never be simply about managing costs but also about managing consumer expectations.

Professional bodies such as The Chartered Institute of Purchasing and Supply (CIPSA) are now rightly asking questions about how we manage and guarantee supply in an ever changing, often unpredictable and volatile world that is laced with moral causes, principles and philosophies.

The messages are clear; people want frank, measurable, transparent and ethical selling and procurement practices which discourage inhuman and immoral practices, human and environmental degradation and exploitation, excessive consumption and greed.  The focus is moving towards forging legitimate business relationships which serve the environment, people, business and communities recognising that ‘we’re all in this together’.

If we are to meet current economic, environmental and social demands and expectations without compromising the ability of future generations to meet their needs, we need to engage in ethical and sustainable selling and procurement practices which support the concept of Sustainable Development as part of our business and community strategies moving forward.

So do your procurement, distribution and selling practices stand you in good stead for the future?  Could you stand up to the scrutiny experienced by Harvey Norman?

Remember everybody lives by selling something.

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

What are your relationships built on?

March 3, 2011 in Attitudes & Behaviours, Communication, Ethics & Values, Self Development

If you are in business for the long haul then you know the value of building your business relationships on solid foundations.  Too many times people have fallen foul of the broken promises and pipe dreams offered by those people whose only intention is to make money at your expense.  I can recall a few incidents in my career where I have given people the benefit of the doubt only to be let down and in some very rare incidents, ripped off.

In sales and business we meet people every day and need to be able to size up and make quick judgments about their bona fides.  Are they a viable prospect?  Can they afford this product or service?  The promises they make; can they keep them?  The stories about forthcoming funding; can they produce evidence of its existence?  Do they keep their word?

I admit it is in my nature to see the best in people and want the best for them and me.  However, that positive expectation can be sorely tested when people do not follow through.  Some people have the ability to say the right things but you are left feeling uneasy.  Something is not quite right.  There is doubt as to the existence of any real substance behind their claims.

Over the years I have become more wary and cautious about people’s claims and promises.  I have taken to being more discerning and tend to question people more thoroughly about the substance of their offering.  After doing so there are some people you never get to speak to again and probably for good reason.

With the ease of connecting and entering into relationships being facilitated by technology of the likes of Linkedin and Facebook, connecting with anyone sounds great but could be a risky move if you do not know the person in question and their intentions.  Why do they want to connect with you?  Whenever I get an invitation to connect on Linkedin by someone I do not know, I check out their page first then I ask them how we met and why they would like to connect.  It is quite interesting the responses I get.  Some are genuine in that there is a connection via various means that is mutually beneficial while others are purely after my connections list or are using Linkedin as a spam opportunity.

Personally I prefer my relationships to be built on solid foundations, which includes substance (having something of real value to offer) and trust (knowing I can rely on that person).  Substance and trust underpin everything in relationships.  Here is a checklist I have found useful when checking myself and others as to how we build trust and manage relationships.  They may seem straight forward but you know that not everyone practices these.

  • Be predictable – Be consistent and reliable.
  • Do what you say – Your words should match what you do.
  • Trust others’ instinct – They may have different views, perspectives or experiences you haven’t seen before.  Be open to exploring them and check for facts.  However, sometimes you do need to trust another person’s judgment.  Just make sure you can verify their claims at some point in the process. If you can’t, then trust your judgment and move on.
  • Don’t lie by omission – Don’t lie or keep secrets from people.
  • People are not mind readers – Tell people what you want or need, clearly and promptly.
  • Be willing to say “NO” – It’s okay for people to ask.  Remember you don’t have to say “YES” to everything.
  • Continue to grow relationships – A relationship is a living and breathing thing.  It takes conscious effort and daily work to grow a fulfilling relationship.  Don’t be afraid to deal with crisis, emotions and questions.  You should embrace them and look for solutions that will bring you closer.
  • Check intentions – are your or the other person’s intentions clear and honourable?  Always check your intentions and ask yourself “is this healthy and helpful to me and the others involved?”

None of us work in isolation, so relationships are with us every day in some shape or form.  Are the relationships you are currently forming worthwhile to you and the other people involved?  Are you all better off for having met each other?  Or do some of your relationships feel a bit one-sided either in favour of you or them?  Relationships work best when they are open, fair and equitable.  You never need feel like the victim if you chose to take control of your relationships and own your place in them.

All relationships are messy and some are messier than others.  However, we can work towards creating healthy and profitable relationships on many levels with clients, work colleagues, suppliers, friends and the like.  And it starts with us and our willingness to dig deep and be clear about what we want our relationships to be.  Any worthwhile relationship takes effort to grow and develop and nothing is risk free.   Your clients, colleagues, suppliers, family and friends depend on you to be clear about what you want and offer in a relationship.  So what are your relationships built on?

Remember that everybody lives by selling something.
Author: Sue Barrett, Sales Training at barrett.com.au

Integrity – Your Sales Edge

February 25, 2011 in Attitudes & Behaviours, Ethics & Values, Sales Relationships

Integrity was voted as the Number 2 Sales Trends for 2011, which is a sign of the times.  Your word, your honour, your promise are on show and people will judge you on your actions not on your spin.

So what does integrity mean for us in business and beyond?  As stated on Wikipedia ‘Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations and outcomes.  In ethics, integrity is regarded as the honesty and truthfulness of one’s actions.  The word “integrity” stems from the Latin adjective integer (whole, complete).  In this context, integrity is the inner sense of “wholeness” deriving from qualities such as honesty and consistency of character.  As such, one may judge that others “have integrity” to the extent that they act according to the values, beliefs and principles they claim to hold.’

Your values, how you act and what you stand for are just as important as your technical skills and capabilities in today’s business world.  And with the internet comes a whole new transparency.  False promises, dubious actions, bad behavior, customer complaints and bad press will be tracked and publically broadcasted to many in 2011.  And as we are coming to realise, what goes in the internet stays on the internet – forever.

If your intention is to deceive people, your clients, your colleagues, your community, you do so at your own peril because Wikileaks, Facebook and Twitter are exposing deceptions in milliseconds.

Just observe what is happening in Egypt and the Middle East with peaceful and often not so peaceful uprisings – the people in these nations are uniting like never before.  Tired and frustrated with the climate of dishonesty, abuse and corruption which has been a part of their lives for so long they are using social media to bring these regimes down.

There is nowhere to hide in the virtual world and people are voting with their voices by sharing their feelings and taking action online and then in the streets.  The speed at which they connect and collaborate to hold these powerbrokers to account is amazing.

Your reputation now precedes you and you will be judged.  Despite the prevailing paradigms of 20th century ‘old school selling’ tactics such as product monologues, bully boy tactics, and in some cases, deception, highly successful, effective, ethical sales people and businesses will have nothing to fear.  They have always known that the best way to sell and engage with customers is to develop honest and open relationships.  They know that TRUST supersedes like.

The time has arrived to move beyond the old sales stereotypes and enter the real world of the honourable sales professional.  All your knowledge, skill, products, company infrastructure and brand will mean nothing without integrity.  Companies and sales people need to shape up in 2011 and make sure what they promise can be delivered.  Proactively forging honest and open relationships (of any kind) based on trust, transparency, respect and doing what you say you will do will be on show in 2011.

Remember everybody lives by selling something.

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

Different sales assessments and how to use them

January 21, 2011 in Attitudes & Behaviours, Call Reluctance, Coaching, Culture, Emotional Intelligence, Ethics & Values, Prospecting, Recruitment, Sales Assessments, Sales Research, Sales Training, Self Development

If you wanted to, you could sit down for at least four weeks and complete 100’s of sales assessments and there would still be more on offer.  This over abundance of sales assessments can be confusing because they are not all the same.  If you do not know what you want to measure it will make looking for an effective sales assessment tool that much harder.  Here are some questions that may help you select your sales assessments with more precision.

  • Why will this person sell? (Motives, Ambition, Goals)
  • Will this person sell? (Attitudes, Mindset, Not Hesitant, Accountable, Energy, Drive)
  • How does this person sell? (Style, Ethics, Behaviours)
  • Can this person sell? (Skill, Knowledge, Mindset)
  • How well can this person sell? (Job match, Values, Perceptive Reasoning, Self Belief, Mastery Mindset)

As stated before, there is no one sales tool that can answer all these questions.  So at risk of offending some test providers and users, as I am bound to leave out some assessments that could have been included in this piece, I thought I would share with you the tools that we and many other businesses have found to be the most useful in helping us predict sales performance especially when it comes to sales recruitment.

Measuring Sales Prospecting Fitness
Research shows that only about 20% of sales people are fully effective when prospecting.  In use for 30+ years, the SPQ*Gold (Sales Preferences Questionnaire) is a well regarded and widely used assessment designed to specifically detect and measure the emotional response to prospecting – Sales Call Reluctance®.  Call Reluctance® is the emotional hesitation to initiate contact with prospective buyers in sufficient numbers to support organisational goals.

40 years of empirical research in prospecting shows the hesitation to initiate first contact with prospective buyers on a consistent daily basis is responsible for the failure of more competent, motivated and capable sales people than any other single factor.  The fear of prospecting can cost an average of 15 new units of business per month per sales person.  Prospecting is not the most important skill in selling but it is the first thing that has to happen before anything else happens.

Assess the Fear of Prospecting
The fear of prospecting, Sales Call Reluctance® and sales hesitation, an individual’s hesitance to prospect and self-promote for new business, can be objectively measured using the SPQ*Gold® questionnaire. The SPQ*Gold® is an attitude and activity based online assessment that identifies how much initiative, energy and drive an individual devotes to proactive sales prospecting and the amount of energy spent on coping with inhibitors such as fear. The SPQ*Gold® is the only tool that measures the prospecting fitness of people in sales, sales management and customer contact careers.  It is best suited for anyone responsible for meeting sales and revenue targets whether you call yourself a sales person or not.

SPQ*Gold helps you answer these 3 business questions:

  1. How much will they produce?
  2. How soon will it happen?
  3. What will it cost you to get that performance out of them?

Applications

  • Administered online via user name and password sourced via an accredited provider.
  • The SPQ*GOLD® can be used for recruitment and development purposes to measure prospecting fitness.  It produces individual selection reports, team summary reports, and development and coaching reports.
  • SPQ*Gold will NOT measure personality, motivators and values, communication styles, emotional intelligence, leadership styles and derailers, or cognitive attributes and abilities (IQ).

Measuring Sales Performance Characteristics and Style
SPI-Q (Sales Performance Insight Questionnaire) is the latest and most comprehensive sales assessment tool in the marketplace.  The Sales Performance Insights Questionnaire (SPI-Q) has been developed in Australia by Performance Insights and focuses on the attributes that are uniquely relevant to sales.  It is the only product in the market that predicts the multi-dimensional characteristics required by today’s sales professionals, and measures the subtle but critical characteristics that differentiate successful sales people.  The questionnaire measures 25 Sales Attributes, clustered into three broad domains:

  1. Compelling Relationships – measures the preferences the individual has when working with clients and developing relationships i.e. Impact, Credibility, Insight, Attentiveness, Initiation, Influence, Social Leverage, Client Engagement and Negotiation.
  2. Perceptive Reasoning – measures how the individual processes information and makes judgments relating to client issues and solutions i.e. Research, Exploration, Agility, Pursues Learning, Creativity, Structure, Quality Orientation, Rational, Specialist and Judgement.
  3. Channelled Energy – measures the motivators and levers which drive the individual to succeed i.e. Authenticity, Resilience, Self Belief, Recovery, Motivation and Sales Drive.

The questionnaire has been designed to be highly pragmatic and user-friendly (requiring minimal training) with standard interpreted report outputs which are adapted based on the individual’s results.   The SPI-Q is a self-report questionnaire and the accuracy of this profile depends on how honest the individual has been when completing the questionnaire as well as their self-awareness.  It reflects their preferred style rather than their ability.  However, research shows that people’s responses to personality questionnaires can act as a good predictor of how they are likely to behave on the job.  There is no one ‘perfect profile’.

Applications

  • Administered online via user name and password sourced via an accredited provider.
  • The SPI-Q can be used for recruitment and development purposes.  It produces individual reports along with accompanying team summary reports, development and coaching reports.
  • SPI-Q will NOT measure values, leadership styles & derailers, cognitive attributes and abilities or prospecting fitness.

These two tools would be my first choice when recruiting sales people.  If you want to measure Culture Fit, Motives and Values, Leadership Style and Derailers, Emotional Intelligence (EQ) or Cognitive Abilities (IQ) then we recommend the following tools, which while they are not sales specific, have been widely used in sales and sales leadership.

Measuring Culture Fit and Values: The Hogan Motives, Values and Preferences Inventory (MVPI) measures ten core values found in most cultures throughout history i.e. Aesthetics, Affiliation, Altruistic, Commerce, Hedonism, Power, Recognition, Science, Security and Tradition.  It is not sales specific, however, it provides vital information to managers about how to coach and manage their sales people in terms of motivators, values and drivers.  The MVPI provides useful data about the kind of work environment the candidate prefers.  Measuring organisational fit is critical to staff retention and cultural engagement.

Measuring Leadership Style and Derailing Behaviours: Most business leaders have coping behaviours they draw on when under pressure.  The Hogan Development Survey (HDS) measures strategies and behaviours leaders have developed over time (even from childhood) to cope with increased levels of pressure whether due to change, high stress, multi-tasking, work saturation, an unhappy environment or being outside of their comfort zone. The HDS is not purpose built for sales leaders however it has a wide body or research on sales leadership with relevant norm groups to refer to.  Research shows that most leaders display at least one coping style.  In measuring extremes of personality then, it is very important to remember that these can have highly positive implications.  There is, however, always a potential downside to extremes because if they are not managed effectively or appropriately they can become problematic.  When business leaders, especially sales leaders, are not managing their interpersonal façade well (perhaps because of stress, pressure, deadlines, etc.) these extremes can emerge unchecked and upset the delicate balance of teamwork and interpersonal relationships.

Measuring Emotional Intelligence (EQ): Emotional Intelligence (EQ) involves a set of skills that define how effectively people perceive, understand, reason with and manage their own and others’ feelings.  These skills are cornerstones to successful selling, as emotions are an inherent part of why people buy and why they do not. The Genos Model of workplace Emotional Intelligence comprises seven specific EI skills critical to successful selling i.e. Emotional Self-Awareness, Emotional Expression, Emotional Awareness of Others, Emotional Reasoning, Emotional Self-Management, Emotional Management of Others and Emotional Self-Control.  Each skill can apply to successful selling.

Measuring Cognitive Attributes and Abilities (IQ): There are no sales specific attributes and abilities assessments that we know of, however, good quality Attributes and Abilities assessments have been around for over 50 years.  They are often referred to as IQ tests.  They are widely available through accredited providers and most organisational psychologists.  They are becoming more applicable because more sales and many leadership roles, especially sophisticated or more complex sales markets, require high level thinking abilities such as:

  • Verbal – verbal fluency, vocabulary and ability to understand and reason using words.
  • Numerical – ability to use and understand numerical concepts, reason using numbers and perceive logical relationships between them.
  • Abstract – the ability to think clearly and make sense of complexity, which is known as educative ability and the ability to store and reproduce information, known as reproductive ability.
  • Critical Thinking – the ability to clarify goals, examine assumptions, discern hidden values, evaluate evidence, accomplish actions and assess conclusions.

We do not use single assessments.  Instead, we combine tools to give us a more complete picture.
Different sales roles in different industries require different attributes for success.  Thus, profiles should be interpreted with reference to a specific role and its requirements.  It is important that the data from any assessment be combined with other sources of information about the individual when making decisions, particularly in selection settings.  Most assessments have a shelf life of 18–24 months and should be treated confidentially.  If there are major changes in an individual’s life or work, this could change some of the attributes in some assessments.  If you wish to use recruitment grade assessments for sales selection, I hope this helps you make a more informed decision.

To order an online assessment today, please call Barrett on 03 9532 7677 or for further information click on this link  www.barrett.com.au/assessments

Remember everybody lives by selling something.

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