The last 2 postings have addressed business & leadership issues that might very well result in taking a look at your sales operation. We also raised several questions that should be asked in preparation. This post will speak to HOW I believe it should be done.
Stated simply it needs to be a process. A process is a journey where individuals respecting each other talk candidly about what they do and how they do it. They then seek to improve its efficiency, customer satisfaction, and associate (employee)morale & pride.
To accomplish this, the organization must have a culture that allows it. If everyone simply looks out for themselves, the process bogs down and stagnates. In sales, it means that no one is more important than the customer; no one is more important than another. To use a label, we, they, it, must be a team.
Commonly found attitudes that detract from success here are: 1) Sales thinking that the world revolves around them 2) Operations thinking that the only thing that is important is keeping an efficient schedule 3) Management inadequately staffing to support what needs to be accomplished.
Instead of being self-serving one must be "customer serving" with a strong sense of ownership in supporting the corporate well-being. So many times I use the metaphor of the company being the golden goose that lays golden eggs. If we want the eggs, we must keep the goose healthy!
This is all said to drive home the point that HOW we interact with each other will determine HOW WELL we serve the customer. Accordingly, to facilitate an improvement in sales and profits, much of it initially is fostering solid communication interdepartmentally.
When this takes place, it is like being on a lake. One sees the beauty of the water, waterfowl, fish, and sun. Life seems good. But then, when we honestly communicate, we start to lower the water level. We then become aware of rocks, stumps, and other less desirable things. These are the areas that need work; they need improvement.
At this point, management really needs to be involved. Agreement on what should be addressed should be facilitated. Teams might need to be put together. coaching done, and eventually changes made. Whatever happens though, will be understood and bought into by the majority. Consensus among highly motivated associates most often results in the best outcomes.
I realize that this has been a broad brush look at, not only improving a sales force, but any area in your organization. It does require much skill, experience, and knowledge. At the same time, and I'll be consistent here, HOW you do this is incredibly important.
Good luck, and good selling!
Thursday, August 28, 2008
Wednesday, August 27, 2008
Questions For Your Salesforce
Yesterday, we discussed how we might approach action to take when faced with less than satisfactory sales and profits results. We looked inward first, making sure that leadership, direction, and focus were provided. Assuming they are, we might want to review our sales operation. With this post, & the next, we will do so by reviewing some additional questions to be asked. Your answers will determine how you proceed.
Do you have a strategic plan, or at least focus on HOW you want to approach your customers? It's difficult to measure how you're doing if you don't understand what the target is.
Do you have a professionally constructed marketing plan that supports your sales effort? Too often, marketing is carelessly done, or done with little or no budget.
Those who do not include a solid marketing plan are simply fooling themselves. If they are achieving good results, they are fortunate.
Does your sales remuneration plan support your Corporate goals? Sales persons are quick to understand how they can maximize their earnings. If goals and pay are in sync, everyone has the opportunity to win.
How are sales persons recognized for top performance? Most sales persons have large egos, and we should feed them regularly. Often times this costs very little.
Are sales persons consistently mentored, coached, and managed? I find that this is sometimes not the case, simply because it may be difficult, or require time that management has not provided for.
Are there adequate training resources available to assist with learning, improving core competencies, and complementing each others' efforts? Too often, areas for improvement are identified, then left to be handled individually.
Related to the above, is there structure in place for performance improvement programs, to ensure resolution, in place. Follow-up, with a timeline, is essential.
Is there a good relationship between customer service, order processing, & operations? We cannot get the customer what they want, when they want it, at the price they want it, and make a profit, unless everyone understands why. Communication, communication, communication!
Are sales persons measured according to Corporate goals? That which is measured is where the largest effort is made.
Are they held accountable? It is absolutely amazing to me how many times mediocre results are tolerated. Sometimes it is an aversion to confrontation; it might be a lack of management; or it can be a reluctance to change. Nonetheless, the feet need to be held to the fire.
Finally, and here's an interesting one, does top management spend time in the field with customers? Too often this is left up to the sales force. Customers and sales persons alike value the time given; and management then understands first hand what the issues are.
Now that we're on the right track with asking the right questions, we can look at HOW we'll go about getting the improvement we strive for. We'll continue with that on the next posting.
Do you have a strategic plan, or at least focus on HOW you want to approach your customers? It's difficult to measure how you're doing if you don't understand what the target is.
Do you have a professionally constructed marketing plan that supports your sales effort? Too often, marketing is carelessly done, or done with little or no budget.
Those who do not include a solid marketing plan are simply fooling themselves. If they are achieving good results, they are fortunate.
Does your sales remuneration plan support your Corporate goals? Sales persons are quick to understand how they can maximize their earnings. If goals and pay are in sync, everyone has the opportunity to win.
How are sales persons recognized for top performance? Most sales persons have large egos, and we should feed them regularly. Often times this costs very little.
Are sales persons consistently mentored, coached, and managed? I find that this is sometimes not the case, simply because it may be difficult, or require time that management has not provided for.
Are there adequate training resources available to assist with learning, improving core competencies, and complementing each others' efforts? Too often, areas for improvement are identified, then left to be handled individually.
Related to the above, is there structure in place for performance improvement programs, to ensure resolution, in place. Follow-up, with a timeline, is essential.
Is there a good relationship between customer service, order processing, & operations? We cannot get the customer what they want, when they want it, at the price they want it, and make a profit, unless everyone understands why. Communication, communication, communication!
Are sales persons measured according to Corporate goals? That which is measured is where the largest effort is made.
Are they held accountable? It is absolutely amazing to me how many times mediocre results are tolerated. Sometimes it is an aversion to confrontation; it might be a lack of management; or it can be a reluctance to change. Nonetheless, the feet need to be held to the fire.
Finally, and here's an interesting one, does top management spend time in the field with customers? Too often this is left up to the sales force. Customers and sales persons alike value the time given; and management then understands first hand what the issues are.
Now that we're on the right track with asking the right questions, we can look at HOW we'll go about getting the improvement we strive for. We'll continue with that on the next posting.
Tuesday, August 26, 2008
Sales Force Tune Up?
With many company results being mixed to down this year, a common concern is, are we doing everything we can to maximize sales and profits? Although much of the time it shouldn't be, the sales organization is often the first concern. This posting, and the next, will take a look at some of the questions we should be asking ourselves as executives. What should be the PROCESS we go through to provide for success?
Look inward before looking outward. If we first look at our PLOC-ing, meaning planning, leading, organizing, and controlling, we may discover we have things to do before questioning (or worse yet, blaming) others.
Have we planned? We hopefully have a strategic plan, but if not, do we at least have FOCUS? So many times new equipment is bought before we discern if it will take us where we need to go; do our customers want and need it? Can we produce it most effectively, or with better quality, or more quickly?
Are we providing the leadership needed? To me, this means listening to the "upward" communication, instead of creating more "downward". These resulting insights can be invaluable to creating solutions for barriers to growth. Do we practice the discipline and dedication we preach? Are we approachable and positive, even when stressed?
How organized are we, is our company? Are we sensible, disciplined, and orderly? Or are we chaotic, unmeasured, and inconsistent? Are we specialized and efficient at what we do? Have you given your people the tools they need for building success? Huge questions.
Finally, are you controlled or controlling? There's a big difference. Do not misunderstand; one of the worst things we do every day is failing to hold persons accountable. This means we need to control: to follow through, assist, and facilitate individual growth to get the job done. But as I've said so many times before, it is not just what we do, but how we do it. Control when mixed generously with concern is most always accepted, internalized, and used positively. It creates respect. Respectful employees produce more, and at a higher quality level, than those without it.
Once we have completed these steps, we have earned the right to get down to the bottom of discovering what we need to do for remedies. We cannot fix something until we understand what it lacks, or what needs to be changed.
Now it's time to take a look at Sales, along with some other areas. In the next posting, we'll do just that.
Look inward before looking outward. If we first look at our PLOC-ing, meaning planning, leading, organizing, and controlling, we may discover we have things to do before questioning (or worse yet, blaming) others.
Have we planned? We hopefully have a strategic plan, but if not, do we at least have FOCUS? So many times new equipment is bought before we discern if it will take us where we need to go; do our customers want and need it? Can we produce it most effectively, or with better quality, or more quickly?
Are we providing the leadership needed? To me, this means listening to the "upward" communication, instead of creating more "downward". These resulting insights can be invaluable to creating solutions for barriers to growth. Do we practice the discipline and dedication we preach? Are we approachable and positive, even when stressed?
How organized are we, is our company? Are we sensible, disciplined, and orderly? Or are we chaotic, unmeasured, and inconsistent? Are we specialized and efficient at what we do? Have you given your people the tools they need for building success? Huge questions.
Finally, are you controlled or controlling? There's a big difference. Do not misunderstand; one of the worst things we do every day is failing to hold persons accountable. This means we need to control: to follow through, assist, and facilitate individual growth to get the job done. But as I've said so many times before, it is not just what we do, but how we do it. Control when mixed generously with concern is most always accepted, internalized, and used positively. It creates respect. Respectful employees produce more, and at a higher quality level, than those without it.
Once we have completed these steps, we have earned the right to get down to the bottom of discovering what we need to do for remedies. We cannot fix something until we understand what it lacks, or what needs to be changed.
Now it's time to take a look at Sales, along with some other areas. In the next posting, we'll do just that.
Monday, August 4, 2008
Value Added and Sales Commissions
Recently a fellow PIW member asked the following question: "We currently use a Value Added formula for paying sales commissions. . . This works well for the products we produce. However, for the times when we do not have the time or capacity to produce a particular job, I am wondering how (to pay)commissions. . ."
Since this is a commonly asked question, I thought it prudent to include my response in this blog. Here it is:
"The answer is centered around why we choose to use value added in the first place. The reason it 'works well for the products we produce' is because that is what value added leads us to. If we produce more of our products in house, we grow, add more value, create more jobs, & generate more profit.
However, there's an excellent reason for outsourcing products: the customer, whom we must satisfy, wants them. So we often make a TEAM decision to buy them out of house. When we do that, we do not create more jobs, the profits and value added are less, and we might even be helping to create a future competitor. Clearly, there are pros & cons, but we sometimes choose to do it. When we do so, everyone should contribute to the effort. The company makes less money, sales gets paid less commission, production should figure out how to raise capacity and/or learn how to produce it, and management needs to educate & support these efforts.
Educating the associates on this premise and then generating a genuine TEAM attitude will then help everyone, which includes the customer, to win something."
Please add your own insights.
Since this is a commonly asked question, I thought it prudent to include my response in this blog. Here it is:
"The answer is centered around why we choose to use value added in the first place. The reason it 'works well for the products we produce' is because that is what value added leads us to. If we produce more of our products in house, we grow, add more value, create more jobs, & generate more profit.
However, there's an excellent reason for outsourcing products: the customer, whom we must satisfy, wants them. So we often make a TEAM decision to buy them out of house. When we do that, we do not create more jobs, the profits and value added are less, and we might even be helping to create a future competitor. Clearly, there are pros & cons, but we sometimes choose to do it. When we do so, everyone should contribute to the effort. The company makes less money, sales gets paid less commission, production should figure out how to raise capacity and/or learn how to produce it, and management needs to educate & support these efforts.
Educating the associates on this premise and then generating a genuine TEAM attitude will then help everyone, which includes the customer, to win something."
Please add your own insights.
Saturday, August 2, 2008
"The World-Wide Market for Print 2006-2011"
PIW, Printing Industries of Wisconsin, recently published their "highlights" from the Pira International report on the future of Global Print. The findings come as no surprise to most of us, but PIW felt that we members must understand them as they impact our domestic print industry. Since I have been on the bandwagon, and on the record as agreeing, I will pass them on with comments.
The highlights are: 1) The GLOBAL print market is forecast to grow by 18% to $721 billion by 2011. 2) The fastest growth is to be in emerging countries, and will adversely affect us domestically where consolidation and reduction will continue. 3) Free trading and the growth in under developed countries will adversely impact those in developed countries. 4) New print technology will serve to keep print more competitive and will be crucial to developed countries. 5) By 2011, digital printing will have a 21% share of the market. 6) India, Russia, and Venezuela will be the fastest growing print markets.
Once more, I feel compelled to ask, what are we doing about this domestically? Where is our future? How will we compete? How are our development dollars being spent?
My fear is that it is, all too often, more of the same. Let's keep on doing what we're doing, feeling secure in little change, and hoping that we'll have time to react when the time comes. Let's not embrace and invest in digital the way we really should; we'll have time later.
Well, some of us will, and some of us won't. I want to be in the former group, not the latter. Am I a doomsday zealot? How about you?
The highlights are: 1) The GLOBAL print market is forecast to grow by 18% to $721 billion by 2011. 2) The fastest growth is to be in emerging countries, and will adversely affect us domestically where consolidation and reduction will continue. 3) Free trading and the growth in under developed countries will adversely impact those in developed countries. 4) New print technology will serve to keep print more competitive and will be crucial to developed countries. 5) By 2011, digital printing will have a 21% share of the market. 6) India, Russia, and Venezuela will be the fastest growing print markets.
Once more, I feel compelled to ask, what are we doing about this domestically? Where is our future? How will we compete? How are our development dollars being spent?
My fear is that it is, all too often, more of the same. Let's keep on doing what we're doing, feeling secure in little change, and hoping that we'll have time to react when the time comes. Let's not embrace and invest in digital the way we really should; we'll have time later.
Well, some of us will, and some of us won't. I want to be in the former group, not the latter. Am I a doomsday zealot? How about you?
2008 ACTS Summer Meeting
The recent ACTS Meeting in Point Clear, Alabama was one of the more successful in my memory. Now that there have been a couple of weeks to process it, I believe some thoughts here might be appropriate. Many of you are making comments from time to time, and for those of you who were there, this might be a particularly good post to contribute to. Your comments are appreciated & always add value.
Here are what I saw as the biggest pluses: 1) Increased, and deeper communication among NASTA, AAP, and BMI. AAP and BMI understand that they exist to serve NASTA, but it has not always been clear exactly what NASTA has wanted. In recent years there have been some surprises such as those having to do with embossing and the cost of textbooks. This year, especially with the increased question and answer period, we seemed to begin to break through concerns for stepping on toes, with some effective exchanges. There will be more to come, I'm sure.
2) Increased visibility, and availability, of leaders like Sue McKenzie, Woody Duncan, Jay Diskey, and Bruce Smith. These folks are, of course, at every meeting, however it was nice to see them spending a good amount of time at the receptions, and between events, talking to whomever wanted a bit of time. It is crucial that the three groups MIX and get to know one another on a more casual basis. This develops better understanding and trust which are crucial to our future success. They seemed to set the example for the rest of us.
3) The heat and humidity were not a particular plus, but since the meeting is always held in July in one of the "Adoption States", most were prepared, and got through it just fine.
4) The Grand Marriott was a nice venue, even with the expected summer weather. The setting was beautiful, the golf courses in good shape, the food excellent, and the service (although I heard one complaint) positive and effective. It would be a fun place to go in the spring or fall.
Hopefully this will add up to increased attendance, especially on the NASTA side, next summer. Whatever the case, between now and then, we hopefully have begun a period of frank and open communication that will make everyone more effective and fulfilled at what they do.
Here are what I saw as the biggest pluses: 1) Increased, and deeper communication among NASTA, AAP, and BMI. AAP and BMI understand that they exist to serve NASTA, but it has not always been clear exactly what NASTA has wanted. In recent years there have been some surprises such as those having to do with embossing and the cost of textbooks. This year, especially with the increased question and answer period, we seemed to begin to break through concerns for stepping on toes, with some effective exchanges. There will be more to come, I'm sure.
2) Increased visibility, and availability, of leaders like Sue McKenzie, Woody Duncan, Jay Diskey, and Bruce Smith. These folks are, of course, at every meeting, however it was nice to see them spending a good amount of time at the receptions, and between events, talking to whomever wanted a bit of time. It is crucial that the three groups MIX and get to know one another on a more casual basis. This develops better understanding and trust which are crucial to our future success. They seemed to set the example for the rest of us.
3) The heat and humidity were not a particular plus, but since the meeting is always held in July in one of the "Adoption States", most were prepared, and got through it just fine.
4) The Grand Marriott was a nice venue, even with the expected summer weather. The setting was beautiful, the golf courses in good shape, the food excellent, and the service (although I heard one complaint) positive and effective. It would be a fun place to go in the spring or fall.
Hopefully this will add up to increased attendance, especially on the NASTA side, next summer. Whatever the case, between now and then, we hopefully have begun a period of frank and open communication that will make everyone more effective and fulfilled at what they do.
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