With information comes choice and without proper guidelines and filters in place, too much information and too many choices can lead to indecision.  Indecision can then lead to paralysis making us unhappy, unproductive, and at worst, ineffective.  In sales careers, or any role for that matter, too much information and the subsequent indecision is a real killer – in fact, making no decision is far worse than making the wrong decision.

Barry Schwartz, professor of social theory at Swarthmore College in the US and author of The Paradox of Choice states “too much choice is paralysing us and making us miserable”.   I can’t help but agree.  At times I feel I am drowning in a tsunami of information and feel increasingly confused as I try to work out what to focus on and what to discard.  I am not alone in these feelings; many people I speak to are also reporting feeling overwhelmed and anxious by all the ‘noise’.  Some are even checking out of mainstream information and news sources and choosing to dramatically reduce their diet of information.

In our haste to keep up, be on top of things, be seen as the one with all the answers, and be ahead of the pack, are we inadvertently creating a climate of confusion, indecision, and unnecessary distress by exposing ourselves and our teams to too much information?  I suggest the answer is ‘Yes’.

For instance, there is a learned behavioural syndrome called ‘Overpreparer’ which can account for 40%+ drop in sales productivity for sales people with Overpreparer tendencies.  It is often caused by  organisations placing undue importance on the need to be overly prepared and knowledgeable. Being prepared takes precedence over getting out and selling.  For instance, in banking and finance where compliance is important, Overpreparing is often systemic creating a culture of indecision and paralysis by analysis where sales people use it as an excuse to not prospect and sell.

Despite feeling out of control we can regain control over how we process, use and manage information.  Having a clear head and removing clutter from our lives is critical if we want to be productive and effective.  As promised in Noise Reduction part 1, here we will explore some strategies that may help us reduce the ‘noise’ and recalibrate our signal-to-ratio (SNR).  So in the spirit of less is more, here are some simple principles we can follow as a guide to effective noise reduction and decision making:

Step 1: Set clear goals

• Clear goals help you determine what to focus on and what information you need to have at hand to help you achieve your goals.
• Clear goals help you prioritise your thinking and actions, assisting you in planning each step of the way.

Step 2: Determine what you need to know

• Put in place filters that will help you determine what information you want to focus on: Does this information help you get closer to the goals that are important to you?
• Work out what is ‘essential’, ‘desirable’ and ‘nice-to-have’, and prioritise in that order.
• Cultivate a scientific mindset – scientists begin by defining a hypothesis then look specifically for data or information that either corroborates or refutes that hypothesis.
• Determine what information and networks your business and your sales people need to be aware of in order to make good decisions (i.e. market trends, competitors, product innovations, changes in legislation, etc.)
• Find out what your clients are interested in reading and hearing.
• Find sites and networks that keep you up to date with the latest trends and are quick and easy to read.
• Make sure your CRM is collecting useful client and market information that is aligned to your goals and can be applied in a meaningful manner (i.e. creating client buying patterns report, etc.), then ignore the rest.

Step 3: Determine effectiveness

• What information (blogs/references/forums/publications/social media sites/networks, etc.) are proving to be useful to you (your customers, your business and your communities)? Why?
• Check why you originally chose this information or network sources and ask if they are still relevant.
• Determine how often you use these information sources.
• Check how you apply these information sources in your job or in your communication with each other and clients/suppliers (tangible outcomes, practical solutions, etc.)
• Verify what is ‘fact’ and what is not.  Is it evidenced based?  Is it supplied by a reputable source that can be validated and checked?
• Check how quickly it takes you to gain a quick and concise understanding of the content.

Step 4: Prioritise and don’t be afraid to limit your options

• Count how many subscriptions you currently have or networks you belong to; check for duplications (i.e. similar blogs, sites or networks offering the same information) and irrelevant sites or networks (not aligned to your goals) then cull.
• Reduce your ‘daily’ alerts to ‘weekly’ alerts.
• Don’t check your emails every time they arrive, make time to check every 15-30 minutes or so.
• Create a new email address exclusively for your subscriptions so your working email is not cluttered up with low priority data.
• Synchronise your bookmarks.
• Create a filing system that allows you to reference your information quickly and easily.
• Link new information to what you already know.  Drawing concept maps is one such way that helps you to build knowledge over time and draw links between ideas and knowledge sources.
• Allocate specific time twice or three times per week to review your subscription information sources rather than being constantly interrupted by incoming alerts.
• If you need to surf the web, make time to do so when it doesn’t interfere with your work priorities.

Step 5: Find some quiet time

• Allow your mind and your senses to rest and switch off.  Being overly anxious narrows your focus and limits your ability to sort through and process information effectively.
• As strange and boring as this may sound, find time to do mundane tasks that do not require you to process complex information.
• Do some regular exercise like yoga or go for a run to get in touch with your body, breath, heart and nature.
• Meditation requires effort to achieve single pointed focus, however the daily practice of meditation quiets the busy mind and gives you the space you need to recharge and recover from information overload.

As you can see, even discussing reducing noise creates noise, and the signal-to-ratio spiral continues… Without running away to live in a cave, my best suggestion is to take on board a couple of things; stop reading about reducing noise and get out there and sell.  By staying focused on a few keys things and taking action we might just find that the noise fades into a faint, background murmur and we are happier and more productive as a result.

Remember, everybody lives by selling something.

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

Noise Reduction was voted by you as the number 5 Sales Trend for 2010.  About 20 years ago I was told that information was doubling every 5 years; 5 years ago it was every 18 months; 1 year ago  it was every 9 minutes, so who knows how fast information is doubling now?

Many business leaders, sales people and many more are reporting information overload.  Selecting what to take on board and what to leave behind will be critical for sales and business success in 2010 and beyond.  It will also be critical for our own wellbeing.

There is so much to read and process, and so little time to do it well.  Many people report feeling that their brains are ‘bursting’ as a result of so much information and wonder how they can process, log, link and manage the information they are exposed to and then use it wisely and purposefully.  According to Alvaro Fernandez from SharpBrains over 1,000,000 new books are published every year and more than 100,000,000 scientific papers are released, this coupled with the billions of websites at our googletips.

With all this good information on tap, I am increasingly finding myself feeling incredibly frustrated with the amount of rubbish information I have to wade through every day as well.  There seems to be so much ‘noise’ out there competing with the good data.

Not only do businesses have to keep on top of what is the latest market trend, product, or competitor strategy, we are also dealing with the merging of personal information with business information.  It appears email remains a major source of information overload, as people struggle to keep up with the rate of incoming messages especially, the filtering out of unsolicited messages such as spam, and ever growing tsunami of personal information keeping us distracted and often disturbed.  There is even a syndrome to describe people who give out too much information about themselves.  It’s called TMI syndrome (too much information) and it’s coming at us with unprecedented speed via Facebook, Twitter, and especially email.

With this increase in noise we need to assess our Signal-to-noise ratio (SNR).  SNR is a measure used in science and engineering to quantify how much a signal has been corrupted by noise.  In less technical terms, signal-to-noise ratio compares the level of a desired signal (such as music) to the level of background noise.  The higher the ratio, the less obtrusive the background noise is.  “Signal-to-noise ratio” is sometimes used informally to refer to the ratio of useful information to false or irrelevant data in a conversation or exchange.  For example, in online discussion forums and other online communities, off-topic and spam are regarded as “noise” that interferes with the “signal” of appropriate discussion.  For instance, a recent Microsoft security report has said that 97% of all email sent over the Internet is spam and MessageLabs said 81% of all emails sent are unwanted, either way that’s a lot of noise.

The general causes of information overload include:

• A rapidly increasing rate of new information being produced
• The ease of duplication and transmission of data across the Internet
• An increase in the available channels of incoming information (e.g. telephone, email, instant messaging, RSS, etc.)
• Large amounts of historical information to dig through
• Contradictions and inaccuracies in available information
• A low signal-to-noise ratio
• Lack of a method for comparing and processing different kinds of information
• The pieces of information are unrelated or do not have any overall structure to reveal their relationships

At no other time in history have we had access to so much information however, it poses some interesting questions:

1. How do we verify what is fact and what is not?
2. What should we be paying attention to?
3. What is useful to us, our customers, our businesses and our communities?
4. How should we process, log, link and manage information to make it work for us?

To cope with this increase in noise some are trying to shut it out while many others are distracted by simply trying to keep on top of it, which is keeping them from doing other important activities.  Either way, many are reporting feelings of anxiety at being overwhelmed by and unable to process so much information.

In Noise Reduction part 2, I will explore some strategies we can adopt to help us reduce the ‘noise’.  The key will be finding reputable online sites, blogs, references and publications that provide access to information that is backed by evidence and research and is free from sensationalism.  2010 will be about filtering information through your core vision, intention and strategy.

So be prepared to question assumptions.  This will help you to make decisions about what to take on board and what to leave behind.  Remember, too much information and indecision will paralyse.

Remember everybody lives by selling something.

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

I recently had the opportunity to attend the inaugural Optimising the Sales Force Conference (http://www.osf2009.com.au), along with over 120 high level sales leaders across Australia.  I was privileged to be part of the panel of international and local experts presenting on sales effectiveness where we explored the latest research on sales strategy, leadership, learning and development, sales management, sales people, and current market trends.

This was the first time in Australia we have had the opportunity to come together as a profession and share ideas and discuss important matters moving forward. There have, of course, been industry specific forums held for the profession of selling but not one that brought industries of all kinds together to discuss sales specifically. It’s hard to believe but this was the first time this has occurred in Australia and about time to! It was really about driving a better profession.  Many people are unaware of just how skillful you need to be to run a sales team or lead a successful sales career.

The conference was full of important information and we also had the privilege of hearing from the elder statesmen of strategic selling 78 year old Bob Miller of Miller Heiman fame, who pulled no punches and reminded us of the foundations of our success. We also heard from Tom Snyder who is world renowned for his expertise in creating high performing sales teams.

Over the next few weeks I thought I would share with you some of the insights and findings from the conference in more depth but here is a summary of the topics we discussed and where our attention was focused.  This might give you some insight into where the world of selling is heading.

• Everybody is in sales: there was overwhelming agreement that everyone in business is in sales – You are either selling or supporting someone to sell.  If your people are disassociating themselves with sales then you need to let them know in no uncertain terms we all live by selling something and they had better get with the program or get out.
• New customer behaviours: the economic downturn has changed how customers conduct business and interact with suppliers, while this comes as no surprise there are now new customer behaviours we need to contend with.  In particular, the increase in risk aversion was cited as being one of the most contentious issues.  This risk adverse approach is leading to indecision by clients meaning that rather than losing to a competitor, nothing happens.    So it is critical that sales people are able to work more strategically with clients and challenge them to help them make good decisions moving forward.  This requires a more assertive, confident style of sales person.
• The Challenger Sales Person: research by The Corporate Executive Board Company reported that we need to find and cultivate the ‘Challenger Sales Person’ who is best suited for these markets moving forward.  Some of the key characteristics of these people are that they always have a different view of the world, understand the customer’s business, love to debate, and challenge the customer’s ideas and perspective; in short they are at their best as commercial educators and bringers of new ideas and innovations to help businesses function better.
• Coaching, coaching, and more coaching: At least 40-60% of a sales manager’s job should be dedicated to coaching their sales people.  Yet it still remains an area that is poorly executed.  We were shown excellent case studies which demonstrated the financial return of sales coaching.  Many of the case studies indicated that a blend of competent internal sales coaching by sales managers supported by external experts in sales coaching was very advantageous to their sales teams’ performance and productivity.
• Role clarity and clear expectations: make sure salespeople and sales managers understand their roles and what is expected of them.  Make it explicit and ensure people are adequately skilled to carry out their responsibilities.
• Clear the dead wood quickly: sales managers spend too much time with people who produce too few results.  Focus your attentions on those people who are already showing they want to do well and are actually doing their job.  You have more hope in getting to your better performers to be much better producers than wasting your time on people who will never perform.  As Tom Snyder said “Sales managers are guilty of thinking they can ‘save’ these people from themselves” – his advice is “get rid of them now!”
• Insight and awareness: despite all the skills, tools, and processes around salespeople and sales managers need to be able to develop their own internal guidance and support systems.  The ability to reflect on our own performance, be resilient, show empathy, and work ethically was high on the agenda. Personal insight and making a personal commitment to the corporate objectives is also important for ongoing success.
• Connect strategy to activity: your strategy should translate into practical actions people can apply and see results from.
• Marketing and sales unite: marketing needs to support sales and sales must support marketing.  There is no in between.  Hugh McFarlane from MathMarketing stressed the importance of making sure that all touch points and messages are in alignment.
• Really connect with your key clients: Bob Miller pressed home the importance of being truly connected to your best clients, however he said you cannot have a strategic relationship that is only one way.  Your clients must want it as much as you do and there is mutual agreement on the conditions of the relationship. He stated that most companies are very poor at managing this aspect of their business and it leaves them vulnerable to losing major accounts.
• Corporate assets: today’s reality is that in addition to people, property, plant equipment, and IP some of the biggest and most often overlooked assets are companies strategic accounts.  They need to be on the agenda of the ‘C’ suite i.e. the CEO, CFO, COO, etc.

I hope that this provides you with some valuable information and insights into what is happening in sales today and into the future. I will go into more depth in the ensuing weeks about these and other topics we covered.

Happy selling.

Sue Barrett is Managing Director of BARRETT

I came across some research on sales motivation which seems to shed some further light on why it is important to use programs which are culturally specific to your sales peoples motivations and values.

A major study of sales motivation presented at the annual convention of the Society for Marketing Advances has revealed significant cultural differences driving sales success. It has helped explain why some of the better made-in-the-USA sales management practices aren’t more effective in other nations. The answers may lie in what really provides motivation for salespeople.

The study (coauthored by Dr. John F. Tanner, III, associate professor of Marketing at Baylor University’s Hankamer School of Business & George Dudley, Behavioral Sciences Research Press) asked almost 41,000 people across nine nations what they hope to obtain from their sales careers. Motivations assessed included:

• opportunities to use talents
• make money, work creatively
• obtain status
• interact with people
• be self-managed
• progress into management
• freedom from routine
• opportunities to be of service to others.

The nations studied include Australia, Canada, New Zealand, Norway, Singapore, Sweden, U.K. and USA. The study used the Sales Preference Questionnaire (SPQ®), to obtain data. The SPQ® assessed sales prospecting call reluctance. The study revealed the following:

“Sales motivation in the US is more money-motivated than in other nations, but there are other more complex motivations at work. 33% of US salespeople and 36% of the salespeople in the U.K. say they work primarily to earn substantial incomes. This compares to only 9% in Norway and 11% in New Zealand, where “lifestyle” considerations such as opportunities to use their abilities and freedom from routine are considered more important.

In fact, successful US salespeople often shun advancement into management, because they can usually make much more money in sales. That further distinguishes US salespeople from those of other nations, where sales is frequently viewed as a temporary step on the way to management.

Over 12% of Australian salespeople actually seek a career in management. For the majority of Australian salespeople, opportunities to use their abilities and freedom from routine are more important motivators than making money, a preference shared by salespeople in New Zealand. However, only 17% of the salespeople in Singapore are similarly motivated. Like their US counterparts, Singaporean salespeople sell primarily to make money.

US salespeople are more money-motivated than salespeople in other countries. But, they are also more service oriented. 14% of American salespeople say being of service to others is their primary motivation. Among the countries studied salespeople in only one other country, New Zealand (11.5%), even approach that level.”

What do these differences portend?

• Knowing what makes salespeople tick is critical for finding and keeping top producers.
• The implications are serious and far-reaching, especially when it comes to multinational sales management practices.
• American sales management and training and procedures adhere to US presupposed values and perceptions, and may not be optimal, or even suitable, for other countries.
• It is often better to access country and culturally specific training for your sales people.

How many of us have been in business for a while and things have been going along smoothly, sales coming in, customers are happy. Then you notice that you are not winning the business you used to win.

In fact, you notice some of your customers are using new players in the market place when they once used you, or they are not doing anything at all. You follow up and find out that your clients are keen to work with the new players because they bring something different, new or unusual. Or they are distracted by other things.

Initially, you may take it as a personal rejection – “they don’t like me”. Then you stop the self-wallowing and realise that:

• a. You missed out on a new trend or a new idea that was gaining momentum in your market, so your approach is not up-to-date or relevant any more.
• b. You have not kept pace with changes in your market. Your business is at risk of becoming obsolete. You are losing your competitive edge.

With the commoditisation of many products and processes, the business landscape can change over night and you can lose your edge. What was once a high value, premium or customised product or service can be reduce to a “me2” very quickly, or become obsolete.

I have been reading a great book called A Whole New Mind by Daniel Pink, which talks about what can and can’t be replicated easily. He focuses on, among other things:

Abundance, Asia & Automation

He talks about how we now live in a world turned upside down by rising affluence, the outsourcing of “good jobs” overseas and the computerisation of our lives. He focuses on a world fast shifting from the information age to the conceptual age.

This got me thinking about how we now need to regularly look at our markets and especially our competition and what they are up to. Often the old SWOT is done (strengths, weaknesses, opportunities, and threats) where the original business plan is put together and then repeated once a year if you’re lucky.

Given the rate of change, new innovations and ideas in the market, how often do we need to assess our competitors and our competitive edge? I am not sure, but all I know is that once a year is not enough these days. There is so much competition out there competing for people’s time, attention and money, it’s hard to keep up. As a sales person we need to know our competitive edge – why we are better than the competition.

And if we have been around long enough we know that competition isn’t just our direct competitors either; it can be anyone. Your competitors can include:

• Current competition.
• Peripheral competition.
• Emerging competition.

In the type of business I am in (consulting, assessment and training) my competition can vary and can also include internal company HR or Learning & Development departments.

However, it can also be the economy, an election, wars, droughts, etc. While I would love to be, and perhaps should be, an essential service provider for any business (we all need to be effective at sales and service), in reality my business is not perceived that way by companies. If things get tough or people get distracted, customers can lose sight of what may be important to them and not invest their money and time in your offering, even though they should.

Being market aware, community aware and world aware is part of our competitor analysis these days. Rather than sit back and think it is all too hard, I have found that regularly reviewing where you are at in relation to everyone else in your space and checking the broader market is a good idea.

This doesn’t mean you have to resort to investing in major market research campaigns. In reality, if you are mindful, you are really researching every day – the information is often right in front of you.

Internet: The internet is a powerful tool for finding information on a variety of topics.

Personal visits:If possible, visit your competitors’ locations. Observe how employees interact with customers. What do their premises look like? How are their products displayed and priced?

Talk to customers:Take careful note of what your customers and prospects are saying about your competitors.

Competitors’ ads / websites/ etc.:Analyse competitors’ ads, websites, marketing material, etc. to learn about their target audience, market position, product features, benefits, prices, etc.

Speeches/ presentations:Attend speeches or presentations made by representatives of your competitors.

Trade show displays: View your competitor’s display from a potential customer’s point of view. What does their display say about the company? Observing which specific trade shows or industry events competitors attend provides information on their marketing strategy and target market.

Written sources:

• General business publications
• Marketing and advertising publications
• Local newspapers and business journals
• Industry and trade association publications
• Industry research and surveys

Understanding your competitors is an integral part of your sales planning process. By investing the time in researching your competitors you will be able to:

1. Understand your competitor’s advantages and disadvantages relative to your own position.
2. Highlight key areas of focus based on your position within the market compared to competitors.
3. Provide an informed basis to develop strategies to achieve competitive advantage in the future.
4. Be prepared to handle questions or challenges posed by potential customers in relation to competitors.

Ask yourself regularly:

• Who are the key competitors in your market place?
• What is a profile of each of your key competitors (market position, size, distribution, reputation)?
• What are your competitors’ primary objectives (to be number one in market, rapid increase market share, to specialise in a particular segment of the market)?
• What do they do well?
• What don’t they do well?
• What threats do your competitors pose?
• What is your primary competitive advantage over them?

An important note: By reading outside your area of specialisation you can learn a lot about other markets and ways of doing business that might just translate into a competitive edge for you. Remember the old saying: “A mind is like a parachute – it only works when it is open”. So be open to new ideas and change. It’s an essential life skill.