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

Many of us actively recoil when we see the words ‘Psychometric Assessments’. This may be due to fear of the unknown, seeing them as ‘tests’ or just tedious questionnaires. While you would not be alone in this, we on the other hand are advocates (of the right Assessments). At Barrett, we spend much of our time demystifying what Assessments actually are and how businesses can benefit from using them. So even if you have been brave enough to use Assessments, most people do not know how to get the most out of them. Often the Assessment process is seen as an isolated event with the final report being put on the shelf or in a draw out of sight and out of mind. The fault does not lie with the recipients of these Assessments; rather it lies with the accepted ‘report and feedback’ model which has been around for years. The sad thing is that many people are not given the opportunity to explore the rich veins of personal information, insight and awareness that Assessments can provide.

Still feeling a little uncomfortable with Assessments? Perhaps a brief overview of what they are will help. In the workplace context, there are many different types of Psychometric Assessments that can be used for both selection and development. They are usually designed by psychologists and provide additional information that helps the employer to form an overall profile of candidates or employees. This can be used to predict how they will function in their workplace or highlight areas for development and potential job preferences.

Our view on Assessments is that they should be meaningful for both the employer and the employee. In order to make the most of any Assessment we need to link the information to something meaningful and purposeful: links to key goals and objectives, role profile, business culture, and so on. As an individual we can integrate learnings into our career path and personal journey to continue our evolution. Without these links has the Assessment been worthwhile?

As you may have guessed I have taken my fair share of Assessments. I was most fortunate to have my first experience with Psychometric Assessments when I was 16 years old. My parents had the foresight to provide this opportunity to help me understand my potential and career preferences. I recently found the report which provided feedback on my aptitudes and abilities, personality style, personal preferences, and motives and values. Some 30+ years later this information still rings true, however I did notice that there was no action plan, specific guidelines, or suggestions. So the report rema ined simply that, a report that had been gathering dust.

In 1988 I had a very different experience when I completed another Assessment focusing on my sales attitudes, behaviours, and fears. When I received this report it was accompanied by a development program and plan– a life and career changing moment for me. Finally something I could action and use to make fundamental changes. I will always remember that experience as it greatly influenced my career path and where I am today. Of course at that moment, I didn’t realise that I would become an experienced and knowledgeable user of that very Sales Assessment.

Testament to our passion and experience, over the past 15 years Barrett has processed over 60,000 Assessments (personality, values and motives, sales behaviours, leadership derailers, leadership styles, aptitudes, and abilities). These Assessments have been used for a variety of purposes including recruitment and selection, individual awareness, insight and development, and the mapping of team dynamics, culture, and values. This has kept us busy with over 4,000 Assessments processed every year!

Our aim is for people and businesses to get the most out of their Assessment experiences. Assessments can support you in making better choices and decisions with career, life, and business. We have carefully selected Assessments that you can use across your business for selection and development, ensuring that you find the right people and once they are in the role they do the right things.

Making the link from selection to development is where Assessments can really shine. Some examples of how we work with businesses to make the most out of Assessments are:

• Create personal action and development plans
• Support Managers with coaching guides and resources
• Find the right people with matched behavioural interview guides and questions
• Team profiling and benchmarking top performers
• Motives and values mapping
• Training recommendations and workshops
• Re-testing sales fitness (SPQ*GOLD) 1-year on to get a ‘before and after shot’

If you started out unsure about Assessments, hopefully you are more comfortable now and, perhaps, even wondering how Assessments might benefit you or the business. If we are preaching to converted, but you would like to know how to get the most out of your Assessments speak to us about the various applications from selection through to development.

And, remember everybody lives by selling something..

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

Gerry Harvey, (Harvey Norman) was recently bemoaning the culture of discounting in our retail sector. He was saying that retailers had lost the plot and didn’t know how to sell real value anymore.  He said they had fallen foul of a culture of constant discounting as the only way to attract customers, which was tantamount to business disaster and a degradation of the retail sector. I happen to agree with Gerry in this instance.

He went further by saying that retailers were failing to find out what customers really wanted and what they really valued.  He said retailers weren’t offering choice – a range of options of different value and therefore were not selling.  He went on to say that while a ‘sale’ may attract customers to a store, you still needed to put the effort into selling.  Selling doesn’t happen by itself.

I’m not a retail expert, however, discounting, sadly, appears to be main stream in Australian retail businesses.  Rather than a ‘sale’ being a rare event, it now seems, everywhere you turn there is a ‘sale’ or discount war waging.  In short, over the last 10-15 years the consumer has been habituated to look for cheap, cheap, and cheap.  The real value to, we, the consumer, of having a range of products and services to choose from across a wide value scale, seems to be lost in a mentality of it must be ‘cheap’.

It begs the questions “How has this come about?” and “Who started this discounting avalanche?”  It wasn’t always this way.   I recently had the opportunity to visit the exhibition ‘til you drop – shopping, a Melbourne History’ at the Victorian State Library which is about retail shopping in Melbourne across the last 100+ years.  I found it quite an enlightening and educational experience. For instance:

“In the 19th century, ‘retail therapy’ had a different meaning from how we understand it today. Shopping was often promoted as combining commerce with intellectual or aesthetic benefits.  Influenced by British morals and values, the display and purchase of goods were expressions of taste and self-improvement.” This is certainly a far cry from ‘cheap, cheap, cheap’ we now hear.

It seemed that shopping in the 19th century had a higher purpose to it.   Perpetual discounting sadly does not.

Constant ‘discount sales’ erode margins and low or no margins means a business is not profitable and therefore not sustainable.   Gerry and other retail experts will tell you that there is a time and a place for discounting – moving old stock, stock liquidation, seasonal or special events for instance.  Discounting should NOT be seen as a regular occurrence or constant ‘way of life’ as this will affect the buying patterns of consumers i.e. people will wait for the ‘sales’ instead of buying across the year.  They will pick their way through the plethora of ‘sales’ on offer every day, meaning no one has to pay full price for anything across the year which in turn forces retailers to enter a never ending loop of discounting.

Discounting in any business sector, retail or business to business, may increase turnover initially, but as a constant strategy comes at a cost which, in the long term, may create more severe problems than we had intended. This may include poorer sector and business performance, less investment in new ideas and products, loss of jobs, business closure, decreased diversity, poorer quality products sourced in place of better quality offerings, which can lead to increased customer dissatisfaction, and less choice as a result.

Less choice means we end up only getting access to products that are of a lesser quality. This creates poorer product performance, a diminished product life, and increased and unnecessary consumption, resulting in greater costs than if one had invested in a better product or service in the first place.

Who wants to pay for more ‘crap’?   In a world where more and more people are conscious of overconsumption, you can see that this journey down the ‘cheap’ road doesn’t lead to a very good place.

Maybe retail needs to return to its ‘higher purpose’ roots.  Another excerpt from the ‘til you drop’ exhibition bears this out:

“While bargains are always popular, when standardised brands replace some specialty and locally produced items the quality of products can become less reliable.  Today, many shoppers are returning to smaller stores selling organic or locally-grown and made produce.  Supermarkets are, in turn, following this trend and promoting gourmet sections and their own ranges of organic and specialty products.  The fact that consumers are becoming more aware of the impact of goods and shopping trends on the environment can be seen in new approaches to packaging and transportation. People are increasingly recognising that more sustainable shopping practices can reduce their ‘shopping footprint’.”

This is why I propose that a climate of perpetual discounting may potentially lead to the erosion in our quality of life and may limit our ability to make the right and best choices for ourselves, our families, our businesses, our communities and the environment.  Is our culture of ‘discounting’ potentially leading us to a false economy? If so, ultimately, this will ‘cost’ us a whole lot more.

Gerry, I suggest you and your retail mates take a collective look in the mirror and do a bit of reflecting on the potentially larger issues ‘constant discounting’ may be creating for us all.  And while you are at it, why not pay a visit to the ‘til you drop’ exhibition which has some great pearls of wisdom about creating real value in retail.

Special thanks also go to Andy and Errol, my fellow tennis parents who work-shopped this article with me one Sunday morning as our sons played tennis.

Remember everybody lives by selling something.

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