I recently had the opportunity to MC and attend the Optimising the Sales Force Conference – OSF2010 which was the follow up to the inaugural OSF2009.  Building on last year’s success, this year’s conference was attended by over 120 high level sales leaders across Australia.  Once again I was privileged to be part of the panel of international and local experts presenting on this year’s topic, Sales Transformation.

This was the second time in Australia that we have had the opportunity to come together as a profession and share ideas and discuss important matters moving forward, and from the looks of it, we will be doing this again.  The feedback from our international sales experts was that this was one of the best forums in the world.  The quality of the speakers, content and discussions were of the highest standard.

Key topics included:

• Global best practice to achieve sustainable sales transformation.
• Great case studies on how to migrate your team to best practice performance and how to get a professional services firm to take on a proactive sales culture.
• What the new successful seller looks like.
• How to hire sales people who can sell.
• Using CRM to enable smart learning.
• Getting sales people effective before they achieve efficiency.
• Sales 2.0 – a Google look into the future of customers, demographics, tribes, buyer behaviours, collaboration and communication.

Key highlights and messages for me were:

1. In B2B sales, customer loyalty is heavily weighted to the experience a customer has with the sales person far exceeding brand, product and price value ratio.
2. Selling has moved beyond solving problems and satisfying needs, it’s about transforming the lives of your customers – helping them achieve results and offering accelerants which take them to their vision of success.
3. We are in ‘ideas’ businesses not ‘product’ businesses.
4. We ‘lead people to a better place’ not ‘lead with product’.
5. Sales transformation is a committed journey not an event.
6. It’s the little things that count – put real tools and processes into the hands of sales people and keep it simple, accessible and applicable.
7. Bring back the Sales Manager as trainer – we need sales managers who can train and coach; 3-5 hours per sales person per month is what is required to get sales people performing to better standards: Empower sales managers to get out from behind their desks and in the field working with their people.
8. Take a laser approach to sales training not a cannon ball approach – most sales training normally fails because it fails to address long term learning and specific learning needs.  We need blended learning.
9. Sales is about reaching better standards of performance not about ‘standardisation’ – too many large organisations try to control and standardise sales performance instead of giving sales people the responsibility to achieve higher levels of performance.  This requires thinking outside of the box, innovation and having a ‘challenger’ mindset – all of which are at odds with standardisation.
10. The war between ‘Urgency and Importance’ – do we want our sales people to be firefighters or builders?
11. Google’s perspective on the world of the user and the amazing views we can get from our buying and viewing habits – truly amazing presentation into the future of consumer sales.

One international speaker, an expat from Melbourne now residing in New York, said that Australia was ahead of the game when it came to connecting at a global level and understanding how to sell into different markets.  He stated that we tend to be less parochial and more worldly even if our footprint is smaller per head of population.  We seem to connect with more people more easily which of course bodes well for selling.  On the down side, it was noted by others that our ‘tall poppy’ syndrome did not help when we came to promoting role models and shining the light on the ‘best’ in the field.  We needed to honour our home grown talent and realise that what we offer here is note worthy.  We need to celebrate that Australia has some great role models and be recognised as leaders in the profession of selling.

I am looking forward to OSF 2011, hope to see you there.

Remember everybody lives by selling something.

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

The New Competition was voted by you as the number 7  Sales Trend for 2010.  Over the coming years, we will see collaboration become the new competition.  Markets around the world are crying out for collaboration as innovation and differentiation become scarce in a sea of commoditised products and services.

Sales people who see themselves as collaborators, both internally (colleagues, departments) and externally (customers, competitors), will prosper more than ever during 2010 and beyond.

A large 5 year long research study conducted by B. Rosenbaum, Business Horizons, entitled Seven Emerging Sales Competencies and published in Jan/Feb 2001 revealed what makes highly successful sales people.  His research, among other key findings, showed that the most highly successful sales people are indeed collaborators.  In his research of over 1,000 B2B sales people across 5 years he found that top performers:

• collaborated with colleagues and did not allow competitiveness to get in the way of good business, and often assisted their colleagues in achieving their best by sharing ideas, information and resources;
• orchestrated internal resources so as to benefit the company, its people, and the customers and their people;
• invested time building collaborative, customer focused relationships inside their organisation;
• created an alignment between the customers’ and suppliers’ strategic objectives;
• looked to further the interests of their customers’ firms as well as their own;
• expanded the customer’s understanding of what a business relationship can be;
• built a flexible relationship that is responsive to marketplace changes;
• creatively drew on the full resources of the firm or business;
• introduced customers to other suppliers and potentially valuable support resources; and,
• invested time building collaborative, customer focused relationships inside their organisation.

These findings are not new as you can see.  However these qualities are still seen, if they are seen at all, as a novelty by most senior managers which is a major risk moving forward in such changing times.  Rosenbaum’s research revealed that, sadly, the vast majority of sales managers were completely unaware that these and other distinguishing qualities were what made their high performing sales people highly effective and successful.  What he observed is that these sales superstars where acting and performing this way despite management.  They knew what they needed to do to get the results.  It’s such a pity that their managers did not.

As I wrote recently, many sales teams are still held hostage by old school sales management practices and outdated mindsets that encourage internal competition, league tables and the like.   Too many sales leaders are still stuck in the 1980’s with ‘greed is good’ and ‘carrot and stick’ philosophies which do not work in the long term and only serve to hold us back in a 21st century world.  Most sales rewards are still self serving, endorsing selfishness which is completely at odds with the new world of collaboration and our natural state of being.

Daniel Pink’s new book Drive focuses a big spotlight on this very issue – what motivates us.  He reports that what business thinks works by way of motivation is not what the science shows or the vast majority of people want.

Besides the commoditisation of products and services, Rosenbaum’s research, Daniel Pink’s findings, and other corroborating research, the advent of social media and the multiple levels of engagement we can now have with our clients, suppliers and key stakeholders means that we need to work collaboratively with each other.  And this collaboration needs to take place across marketing, sales, service, supply, production and finance if we are going to create the ideas and solutions needed for our success in the 21st century.

Those 21st century enlightened salespeople will be the conductors or connectors of viable and valuable relationships across many levels.  They will be open-minded, humble and astute, and they will see patterns of connection and synergy in many places.  They will recognise that we are all interconnected and without kindness and cooperation we cannot exist.  They will identify competency and harness talent to achieve effective solutions. They will know that they are working towards something larger than themselves.  And they will know that their success is a shared success they will celebrate collectively.

So we need to get with the program and rethink our approach to sales motivation, sales mindset, sales skills, sales rewards and teamwork if we are to remain viable in this world.  Collaboration calls for a team effort.  Sales teams where everyone is pitted against each other to achieve ‘top dog’ status will be replaced by a ‘lead team’ approach.  Companies that want to bring in new business and grow and develop existing customers will rely on the united hands of many – rather than just one.  Successful sales people of 2010 and beyond will leverage the power of collaboration over competition because they understand that relationships never work if they are forced and manipulated, and that the sum is greater than its individual parts.  Synergy and collaboration will prevail.

Remember everybody lives by selling something.

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

Many sales cultures are traditionally based on respect for authority, status and success, and encouraging competitive, challenging and achievement-oriented atmospheres. Although this is not true for all businesses, especially in the 21st Century! There are a growing number of businesses adopting more collegiate, lead team approaches. However, despite different types of cultures, sales performance and results are usually derived from the efforts of individuals. Harnessing those individual efforts to achieve synergy (the sum is greater than its individual parts) is a key task of management, yet so many get it wrong. Let’s take a look at one case study and see why.

What is wrong with the following scenario?

• Sales team has great products and service proposition and is part of an international business
• Sales team is made up of individuals who are measured on achievement of individual sales targets
• Each sales person is given a base retainer but earns the vast majority of their income on commissions made from sales converted
• There are a couple of high achieving sales performers, some average performers and some new sales people yet to prove themselves
• Annual staff turnover of sales staff has been about 30-40%
• Average tenure is 18 months
• The sales team is a state team all working in the same city
• Sales performance is purely measured on sales revenue results
• Sales League Tables are on public display showing who is ‘top sales dog’ each week
• The sales culture is based on respect for authority, status, success and competition
• The workplace atmosphere is competitive, challenging and achievement-oriented
• The sales people do NOT work to specific territories/markets or customer segments to manage and grow, instead it is ‘first in best dressed’
• The competitive environment encourages sales people to fight over leads that come into the business leading to ‘bullying’ tactics, attempts to ‘outdo’ each other, squabbling and fighting over who got to that client first
• Sales people ‘sand bag’ lists of clients just to make sure that the other sales people do not get them even if they themselves are not working on those leads at present
• Management provide no selling skills training, no sales coaching, no sales support, no CRM, no documented sales strategy nor a ‘go-to-market’ plan
• There are no formal sales management practices in place except for the weekly sales meeting which deteriorates into an ‘I’m better than you are’ bun fight

This is an example of lazy and ineffectual management. Only focused on outcomes with no regard for strategy, team structure, performance quality, clear leadership, staff retention, values or culture, this sales team is not geared for high performance and continues to lag behind its true potential.

Why create competition where it doesn’t need to be?

Why make selling harder than it needs to be?

‘Old school’ sales management said that you had to have sales people competing with each other or they wouldn’t sell. You weren’t a legitimate sales team if you didn’t have league tables. They said that internal competition would motivate people to sell more. Well they are wrong. The scenario above is not uncommon. It reflects an actual real life situation – happening right now.

This archaic approach doesn’t work. It’s outdated and old fashioned. If you want to generate real sales growth, try harnessing the energy, talent and ambitions of your sales people in a constructive way where they can all achieve their individual goals along with those of the company without trying to ‘kill’ each other in the process. Remember the old saying ‘a team of champions will not beat a champion team’?

Remember everybody lives by selling something.

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

How many of us entered our sales careers with our eyes wide open? Fully aware of what it takes to be an effective sales person – ably resourced with the tools, processes, plans and support essential to our success. Knowing full well what you were getting yourself into.

For most, if not all of us, our initiation into sales was nothing like this, and was cushioned with little or none of these luxuries. Does the analogy “sink or swim” resonate with anyone?

All of this makes the story I am about to share quite unique and refreshing. Recently, some rather clever and farsighted managers gave some very fortunate young people the opportunity to get a large glimpse into the world of selling.

Here is their story: Two senior managers from one company, both whom I have known and worked with for many years, had the presence of mind and foresight to think ahead and tap into the desire of some of their younger staff to advance their careers.

Their business is in the industrial equipment market where they sell new equipment, spare parts, service and rentals. Recently, they advertised for a new service sales person and received, amongst others, applications from several of their internal service technicians.

The senior managers took these applications very seriously. However, they could not appoint any of their internal applicants because they had no experience and very little idea about what it takes to be an effective sales person. Thinking about the future of their business, staff retention and the desire of these young people to advance their careers, the senior managers took it upon themselves to give these driven and ambitious staff the opportunity to really understand what selling is all about – so that they could one day go in into a sales role with their eyes wide open.

This is where Barrett came in. In discussion with the managers, we developed a one day session where these young participants explored topics like:

• Why sales matters
• The changing face of customers and what they really want
• Ethics in selling
• Missed and lost opportunities
• Critical success factors, and key qualities of the 21st century sales performers
• Olympics Game – our sales fitness and simulation exercise which tests peoples’ natural sales capabilities and gives them real time feedback
• The sales essentials overview:

1. 5 step sales planning process
2. 4 step sales prospecting process
3. 7 step sales communication process

• Skills you can apply NOW to build your steps to being a sales performer

As part of the session, we pointed out that even if they were not currently in a sales role, there were still numerous, valuable things they could take from the session and apply immediately in their current roles. Skills, knowledge and insight that would (and did) serve them, their customers and the company well right now, as well as lay the foundation for when the time comes for them to knowingly and willingly step into a sales role. Things like:

1. Knowing, understanding, communicating and modeling the vision, key message and promise, values and customer service ethic of the business
2. Knowing how to make effective phone calls to clients, etc. – being clear about the purpose of their calls and how to position themselves confidently (this relates to how to make prospecting phone calls)
3. Recognising and understanding different communication styles and how not to confuse different with difficult
4. Knowing how to ask good questions to clarify and verify their understanding.

What was most impressive was the prolific note taking, questioning and genuine interest in really getting a handle on what it takes to be a great sales person. For me it was one of the most enjoyable and inspiring days I have had in a long time. There is nothing like working with people who really want to be there and be their best.

All the people I have shared this story with in the last month have all expressed the same wish – that they had had the chance to experience such a session before they became a sales person.

All credit to Cameron and Mick for having the wisdom to provide this opportunity to their team. I am sure that the benefits will be varied, significant and long-lasting.

Remember everybody lives by selling something.

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

Culture Fit was voted by you as the number 6 Sales Trend for 2010.  What is Culture Fit?  Well the first place you are likely to hear about Culture Fit is when you are recruiting for new staff or being recruited yourself.  For instance, Culture Fit Interviews differ from Behavioural Interviews, in that the Behavioural Interview attempts to find out about the candidate’s behaviour, skills, knowledge and experience.  Culture Fit Interviews generally do not try to determine the individual’s capability, but rather considers the candidate’s ‘cultural fit’ with the organisation, their values and motivators.

Values, motives, codes of conduct and organisational charters are now on the main agenda.  More and more managers, sales people and the broader workforce are making value judgments and career choices based more heavily on values, ethics and work practices, rather than just the roles themselves.  The phrase ‘you hire on skill and fire on fit’ has never been truer, however it’s not just the employer firing on ‘fit’.  Employees and customers are doing the same.  If there is misalignment around core values and codes of conduct, employees and customers are just as likely to fire the organisation and go elsewhere for a better ‘fit’.

Culture Fit is usually considered as an internal organisational matter, however I propose that Culture Fit has now migrated to the main world stage with our organisational and corporate values and conduct being scruitinised on every level by our customers, constituents, members, suppliers, employees and communities.  It is now a brand, sales and customer matter with ethical and moral consequences.  Many of us are asking:

•    What is our purpose for being in business?
•    What are our core values?
•    What is our promise to our customers?
•    Is our promise aligned with our core values and actions?
•    What value do we create for others beyond the product?
•    Are we proud to work here?
•    How do we behave in times of crisis?
•    What do we expect from our suppliers, partners, etc.?
•    How do we want our leaders (business, political, community, etc.) to behave?
•    Who would we be proud to be associated with?

These are just some of the questions that are likely to knock loudly on our collective doors in 2010 and beyond.

Why?  Because organisations everywhere are undergoing breathtaking changes!  Their products are changing.  Their markets are changing.  Their management philosophies are changing.  Their values are changing.  Their focus is changing.  And most importantly, their customers’ views on what is ‘true value’ are changing.

Now, more than ever before the accepted ways of doing business are shifting.  Old institutions are crashing and dying.  Trusted names of yesterday will not live to see the future.  Many have failed to keep pace with changing consumer and community demands, values and needs.  Many business CEOs and their management teams have missed the opportunity and pressing need to account for a quadruple bottom line:

1.    Purpose
2.    People
3.    Profit
4.    Planet

Hanging onto the past, they are blinded by leadership nearsightedness — often acting wildly when their status is threatened.  The current disaster that is BP’s environmental oil crisis in the Gulf of Mexico is a case in point.  This environmental catastrophe has now blown up beyond all proportions.  Beside the communities and ecosystems severely affected by this tragedy, BP is now fighting for survival, the entire oil industry is under scrutiny for their poor safety and disaster management plans, and the credibility of big business leadership has been severely eroded as we witness blame shifting, self serving game playing, indecision, narcissism and quite frankly, gutless and pathetic attempts to distance themselves from the issue at hand.  Which leadership and business management schools did these CEOs attend?  If this is what they are teaching our leaders we are in big trouble.

For instance, Tony Hayward’s, the CEO of BP, response recently to the oil disaster: “We’re sorry for the massive disruption it’s caused to their lives. There’s no one who wants this thing over more than I do, I’d like my life back” just shows you how vulnerable any organization is to misaligned values, self serving motives, poor choices and weak leadership.

Just imagine saying something similar to an unhappy customer – you would be laughed off the phone.  Tony, you have failed miserably in Customer Service 101 –’ handling difficult situations’ and so have most of your high powered colleagues in this instance.

No wonder these and other organisations are left wondering where their customers and profits are going.  This leaves them weak and vulnerable.  It begs the question ‘Did the dinosaurs hear the asteroid coming?’

One of my trusted mentors, Neville Christie, says that in the 21st Century, the role of the CEO is a dual purpose role:

1) Chief Philosopher, and
2) Chief Salesperson/Storyteller.

There is recognition that a clear promise, code of conduct or charter, and accompanying message to markets and the broader community is critical for organizations of all persuasions, and only the leaders and their employees can bring this to life.  Savvy leaders and organisations will not just ‘talk the talk’; they will ‘walk the talk’ and show the way forward.

In the words of one Senior Leader, “Don’t ask me what I value and stand for; ask the people who work for me.  They’ll tell you what I really stand for and then you’ll know if I am true to my word.” In fact, we can take this one step further. In this increasingly transparent world, we can witness for ourselves what the leaders of businesses, political parties, communities, and other organizations stand for – plain and simple.

Making your philosophy, values, team charter and steps for action crystal clear for everyone to witness will be key when recruiting, training, managing, and leading teams and when we engage with our customers and communities in 2010 and beyond.  Being transparent, honest and engaging in real conversations will need to be top of mind.  Make no bones about it, whether you know it or not and whether you like it or not, you and your organisation are on show like never before and employees, customers and communities alike are asking these questions on a daily basis.    They are checking for ‘culture fit’.

Remember everybody lives by selling something.

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