Stretch Goals: Folly or Fantastic?

I read a Harvard Business Review article this week entitled The Folly of Stretch Goals by Daniel Markovitz. In his piece, Daniel argues that stretch goals can be “terribly demotivating,” that they “foster unethical behavior,” and “lead to excessive risk taking.”

I then read a couple dozen, of the nearly 300 responses, and feel that one key consideration is wholly absent with regards to the very essence and reason to stand firmly in support of stretch goals and in my opinion, I couldn’t disagree any more with his conclusion.

A stretch goal, simply put, is designed to challenge the way people think – period. Whether you are an individual, a small group, or a large organization, in order to create a disruptive environment, to achieve quantum change, you have to be mentally challenged in order shift the way you think.  And, in order to change the way people think, you have to start with bold questions and establishing the type of expectations that cannot be achieved by thinking about and doing the things you have always done.

Consider the following examples of stretch goals:

Individual Achievement:
1) Dean Karnasas: for charity, ran 200 miles, non-stop, and then tagged on an additional marathon at the end of a run for a total of 226.2 miles of nonstop running – are you kidding me!
2) Scott Rigsby: despite losing both legs and over a decade of drugs, alcohol, and severe depression, he did the “Unthinkable” and set a stretch goal of being the first double amputee to complete an Ironman on prosthetics. And, On October 10, 2011- Scott Rigsby crossed the finish line at the 2011 Ford Ironman World Championship in Kailua-Kona, Hawaii! All I can say is Respect!
3) Gandhi – need I say more?

Team Achievement:
1) The 1980 US Hockey Team (a group of collegiate athletes) winning the Gold Medal
2) Hoosiers

Government:
1) JFK boldly stating that we would be the first nation to put a man on the moon by the end of the decade “…not because it is easy, but because it is hard…”
2) Our Founding Fathers – how dare they think such thoughts! The shear audacity of their quest to become the United States!

TED Talks
1) For those of you that are not aware of  TED Talk’s, their mission statement starts with: “We believe passionately in the power of ideas to change attitudes, lives and ultimately, the world.”

Clearly, if the intentions of setting a stretch goal are for monetary reasons only, then the point of establishing a stretch goal is completely missed and the entire argument of this Daniel’s article becomes a moot point.

Something that I personally believe, with passion, is that poeople inherently want to be a part of something grand and noble. If the leadership of an organization can clearly articulate, not only what the stretch goal is, but, more importantly, the reason for the stretch goal, then the idea becomes an integral part of the organizations culture. This simple concept can be applied whether it’s self-leadership, a team leader, or a CEO of a global corporation.

Another way to look at this, it’s not about the stretch goal. Ultimately, it’s all about the reason for the goal and if the reason is inherently noble in nature, the likelihood of achieving that vision increases by an order of magnitude in the hearts, minds, and souls of the people involved.

And what if you don’t hit your stretch goal? Well, as far as I’m concerned, falling a little short of an audacious goal is a hell of a lot better than falling short of tiny mile stone – wouldn’t you agree? Like the saying goes, if you aim for the stars, you might hit the moon and I think that is fantastic when compared to the alternative!

 

What are Your Core Beliefs as a Sales Consultant?

So, you are in Sales:

Can You Articulate Your Core Beliefs Regarding Your Chosen Profession?

A couple of weeks ago while running on a brisk, windswept, sunny morning, I was asked a derivative of this question by good friend of mine.  And, with a bit of passion, I was able to give a detailed answer with examples.  My friend, who is a small business owner, was rather impressed.  Over the years, he had asked a number of sales representatives that same question and subsequently received a myriad of cheesy responses.

Later that day, while enjoying a bold cup of coffee at Starbucks, I started thinking about my friend’s question.  It was a rather simple, seemingly innocent question; yet, I wondered how many sales consultants are capable of providing an answer that actually makes sense.

So, here’s a quick list of my core beliefs as they pertain to being a sales consultant:

1. The most selfish thing that a sales consultant can do is to provide their clients with a solution that exactly meets the client’s needs.  If you get it right, your clients will gladly pay you (often times at a premium).  More importantly though, if you get it right and continue to treat new clients, well,  like new clients, they will reward you with additional business and gladly provide you with the most coveted of rewards – references.  If you get it wrong, it can cost you a lot of money and destroy your reputation – especially when you take into consideration the power of social media.
2. Solutions have no inherent value unless they solve a current problem or deliver a future desired result.  If there is no perceived pain or gain then there simply isn’t an opportunity.  Immature or inexperienced sales reps have trouble grasping this concept and waste a lot of valuable resources chasing “opportunities” that simply do not exist. For those that like math – no pain + no gain = no opportunity.
3. Intention counts more than technique (and technique is still very important). Therefore, it is vitally important that your intentions are in congruence with the messages that you are communicating to your clients whether intentionally or unintentionally.  There is an old maxim that sums this up: “Who you are thunders so loudly I cannot hear you.”  If your intentions are anything other than providing a solution that exactly meets your clients needs, in a way that they feel good about it, then your client will read you like a book and dismiss all you have to say.
4. Sales methodology matters – it’s a balance between asking the right questions (IQ) in the right way (EQ) and executed in the right manner (XQ).  In other words, asking the right questions means asking the tough question, in the right way means asking the tough questions politely, and in the right manner means asking your questions in a free flowing, conversational manner that puts your clients at ease.  I personally have a methodology that I subscribe to but, that’s for another blog discussion.
5. World class enquiry proceeds world class advocacy.  This is a deeper cut of Habit 5 (from the 7 Habits of Highly Effective People): Seek First to Understand, Then to be Understood.  Only when you understand someone, from their point of view, and can articulate back to them their dreams, desires, concerns, and/or problems, in their words, have you then earned the right to be heard.  The better you are at diagnosing (or understanding) your client’s problems, the better you will be in providing them a solution that meets their needs.
6. Always make “no” a perfectly acceptable answer.  I know that, for some, this may sound contrary to their beliefs.  However, people hate to be led, coerced, or boxed into a decision.   When people are forced into any given direction, by nature, there is resistance.  By making “no” a viable option, you are effectively removing that resistance and your clients are more likely to share their real concerns with you and your team.  Once you understand your client’s real concerns and if you are able to capably demonstrate your ability to address those concerns, then you will be in much better position of winning an opportunity.

So, what are your core beliefs with regards to being a sales professional?  I’d love to hear your responses to this question.

What Could You Do, If You Would Just Do, What You are Capable of Doing?

What Could you do, if you Would just do, what you were capable of Doing?

I came across the following quote recently – it comes from Conrad Hilton, the founder of Hilton Hotels (yes, Paris Hilton’s Grandfather).

“Achievement seems to be connected with action. 

Successful men and women keep moving.

They make mistakes, but they don’t quit.”

Conrad Hilton, 1887 – 1979, Founder of Hilton Hotels

In order to achieve something, you first have to take responsibility and do something.  To run a race, you have to take the first step and repeat as necessary until you cross the finish line.  This simple concept can be applied to any part of your life – work, school, marriage, etc.  Unfortunately, most people are afraid of taking that first step – afraid of being judged, ridiculed, criticized, or afraid of failure.

If you weren’t afraid, what could you do?  What would you do?  What could you do, if you would do, what you were capable of doing?  Say that ten times really fast, or, better yet, just think about it (clearly I’ve been reading too many Dr. Seuss books).

The point  is: step up, take action, don’t quit, and “keep moving forward” (Walt Disney) – no matter what you tell yourself or what anyone else tells you.

The reality is that mistakes happen.  So, what!?!?

Last year, a close personal friend of mine told me about a fantastic book called “Failing Forward”  written by John C. Maxwell.  The underlying message in the book is that everyone makes mistakes and that’s great!  The idea is to learn from your mistakes.  One of the classic examples is Thomas Edison who failed over 10,000 times before he had a working model for the light bulb.  What would our world be like if he gave up and quit after the first couple of attempts?  Post-It-Notes was the failed attempt to create a super strong adhesive.  Professional baseball players fail over 70% of the time when they are at bat.

How about the story of Walt Disney who had multiple bankruptcies, was told “No” for years as he tried to build a Theme Park,  and was laughed at when introducing a talking mouse cartoon to studio executives!

Then there was Abraham Lincoln whose resume looks something like this:

1831 – He lost his job.

1832 – He was defeated in a run for Illinois State Legislature.

1833 – He failed in business.

1834 – He was elected to Illinois State Legislature (success).

1835 – His sweetheart died.

1836 – He had nervous breakdown.

1838 – He was defeated in run for Illinois House Speaker.

1843 – He was defeated in run for nomination for U.S. Congress.

1846 – He was elected to Congress (success).

1848 – He lost re-nomination.

1849 – He was rejected for land officer position.

1854 – He was defeated in run for U.S. Senate.

1856 – He was defeated in run for nomination for Vice President.The Power To Fail Forward and Succeed Despite Setback

1858 – Again he was defeated in run for U.S. Senate.

1860 – Finally he was Elected as the President of the United States of America 

As far as I’m concerned, it’s fun when you fail because through failure you learn how to overcome obstacles and ultimately achieve things.  It’s even more fun when others tell you that you are incapable of being successful and try to keep you down on their level and you use their nay-saying as motivation do it anyway.

Just take that first step, repeat as necessary, and prove them all wrong!

Good Luck!

Weathering the Storm: Gathering Evidence and Impact

Weathering the Storm: Gathering Evidence and Impact

What does the evidence and impact of thunderstorms have to do with sales?  Read on.

Earlier this week I was putting my four year old daughter to bed and she said to me:

“Daddy, it’s going to storm tonight, I’m scared. Can I sleep with you and mommy?”

We had been watching the weather channel earlier in the evening and the weatherman said that there was a 30% chance of thundershowers in our area starting around 3:00 AM.  My daughter, being old enough to understand certain things, hung onto that idea until bedtime so that she would have an excuse to sleep with us.

Now that it was time to go to sleep, she decided to cash in on her new found knowledge.  After all, thunderstorms are scary and she clearly remembers the time that we had to go to the basement because of the threat of a tornado.  However, at this particular moment, there wasn’t any real evidence that a storm was approaching.  So, I lifted her up, walked outside, and together, we looked up at the clear evening sky, the moon, and the stars.  Feeling assured, we read a book together (part of her nighttime ritual) and she went peacefully to sleep.

Fast forward to 3:23 AM and sure enough, that 30% chance was now a raging 100% for our specific area.

BOOM!!!

It sounded like a bomb went off and here comes my daughter running, scared, into our room.  Now, she had evidence.

“See daddy, I told you a storm was coming.

Can I sleep with you and mommy? I’m scared.”

At this point, I could not argue with her logic (or the crocodile tears in her eyes) – she had a problem and she had evidence that the problem existed.  More importantly though, 3:23 in the morning is not exactly the time to discuss the different types of storms and the varying levels of impact that they can inflict, especially with a tired and scared four year old.  So, I gladly capitulated and let her crawl into the bed with us.

Now that my wife and daughter were fast to sleep, I lay awake and started thinking about the parallels that storms have with sales engagements with regards to gathering evidence and impact (lucky me right?).

How many times have you been involved in a sales engagement, with people at various levels of an organization, stating that they are having problems that your particular solution can fix?  And how many times have you blindly accepted that their problems are real and then proceeded to spend precious time and resources to solve a problem without gathering valuable evidence and or tying those problems to the monetary impact that both the problem and solution can have on the organization?

Needless to say, someone, somewhere in the organization will want proof that there is an actual problem and an assessment of the impact that the problem is costing the company.

The reality is that anyone can say (and believe) that a storm is coming.  In addition, I agree that the threat of a storm can be scary both in the literal and in the metaphorical sense.  However, you need more than a gut feeling – you need evidence or proof that a storm will actually hit your area.  And, if a storm does hit your area, so what and who cares?  The real question is:

“What will be the impact of this storm on my home, business, community, whatever?”

A sales engagement is just like a pending storm.  First, you need evidence that a problem actually exists.  Then, if you can prove that a problem does indeed exist, you need an assessment of the impact that the problem will have on your client’s specific situation.  Are we dealing with your typical thunderstorm or a Hurricane Katina?  Both can be really scary but only one of them can be truly devastating.

The ability to help clients uncover evidence of problems and assess the impact that those problems will have on their organization will truly set you apart from the competition.  If the evidence and impact are real and expensive, then the ability to move forward with a solution is easy.  If the evidence and impact are not real, or at least not real big, then the decision to exit gracefully becomes rather easy.

Lastly, if you happen to be dealing with a four year old, when they come to you with evidence of a “real” problem, sometimes the best thing to do is to weather the storm with them regardless of the impact.

The Value of Cross Training for You and Your Technical Team (the Blurring of Roles)

The Value of Cross Training for You and Your Technical Team (the Blurring of Roles)

So, there I was in my first technical sales meeting shadowing a Senior Account Executive (AE) and the Software Engineer (SE).  The meeting played out something like this:

• The Account Executive thanked everyone for coming, made the introductions, set a basic agenda, talked about how great our company was at solving all the problems that this particular client had, and then made sure that everyone had coffee and donuts.
• After the introductions, he and I pretty much relegated ourselves to the corner of the room and sat quietly so that the technical engineers could discuss the important technical aspects of their project in detail.  I felt like the AE and I should be wearing dunce caps – you know, the pointy red caps that kids had to wear when they were being disciplined in the early 20^th century.  In other words, I felt like an idiot.
• Then, at the end of the meeting, when price came up, with one of those award winning smiles, slicked back hair, and a twinkle in his eye, the AE was invited back into the discussion to talk about our pricing model in detail (which was nearly two hours later).

This went on for about a month as I “learned the ropes” regarding how to sell software.  I remember leaving each meeting thinking that there has got to be a better way.  I did not have a background in software, so, I just patiently waited, watched, and learned as much as possible.

Then it was my turn.  After my training period, I was set free to start chewing up my client base and spitting them out – after-all, I was trained by one of the best.  The basic formula was for me to set up meetings and then take an SE with me to assess the client’s technical needs.  Needless to say, once we were in the room, the trend continued.  I would start a formal needs assessment and then my technical guy would step all over me, take over the meeting, and start discussing technical issues (their comfort zone) and I was once again relegated into the corner.

Now, prior to this position, I had worked for a consulting company that specialized in human capital/soft skills development.  There, our engagements were conducted quite differently.  Being the sales rep, I was certainly responsible for most of the above.  However, before going into meetings like this, we were taught how to partner with our subject matter experts (a PHD type person that would be the equivalent of an SE) and discuss our mutual roles and responsibilities, ahead of time, and play off of each other throughout the meeting.  I found that this methodology worked extraordinarily well and helped to establish mutual respect, for both of us, in the eyes of the client.  I kept thinking to myself – if it worked at my former company, it had to work in a technology environment as well.

To help put things into perspective, while working for the training and consulting company, I was encouraged to read a plethora of business books.  One book in particular was called “Blur: The Speed of Change in the Connected Economy” by Stan Davis and Christopher Meyer.  Now, based on the name, you would think that this book was written within the past couple of years and had an underlying message focused on the explosion of social media tools.  In reality, it was initially released in 1998 well before the social media explosion – relatively speaking.

One of the key points discussed in the book is what the authors referred to as a blurring of Roles – “A world where the clear lines distinguishing buyer from seller, product from service, and/or employee from employer are disappearing.”

As it applies to an initial client engagement, a blurring of roles means that a client should not be able distinguish where a sales rep’s role ends and a software engineer’s (or SME’s) role begins.  The way that this particular software company conducted business was that a sales rep’s role was to secure meetings, talk numbers, talk about the company, make jokes, and get the coffee and donuts.  The Engineers talked about the technology.  Ok, so I’m being a little obnoxious, but, I think you get the idea – our roles were segregated and the line of distinction regarding our responsibilities was very clear.

The problem with the above approach is that clients want to talk to people that, in their eyes, have the power to make things happen.  When SE’s (or SME’s) are used in client engagements and they are the ones that run the meeting with a clear line of distinction, then the client will only want to deal with that person moving forward.  After all, the SME is the person that can get the client the information that they need, when they need it.

To resolve this problem, I refused to go on another client engagement, with an SE, unless they had a firm understanding of the blurring concept.  To achieve this goal, I took a couple of weeks out of selling (unbeknownst to my manager) to train and educate my SE on a sales methodology so that they could pick up on contextual clues as to where I was heading with a particular line of questions.  The goal for this was to prevent my SE from interrupting a very specific and important line of business related questions to then start asking questions about the technology (again, their comfort zone).  In addition, I asked the SE to teach me enough about the technology so that I could ask highly effective questions throughout the client engagement so that I at least appeared as if I knew what I was talking about.

The end result was fantastic!  Now, both of us were on the same page.  When I started drilling down on the business case, assessing the resources, or trying to understand the decision making steps, my SE was lock step with me.  When assessing the technical environment we would often make eye contact and give a subtle nod as if to say “I’ll ask this question and you ask the follow up more detailed question.”  Sometimes, when drilling down on a particular technical issue, the client would ask a question.  Before my SE had a chance to blindly answer, I would redirect to make sure that we were answering the right question and my SE felt right at home with me especially when asking really tough questions.

On occasion, the client thought that I was the SE and the SE was the sales rep and when you understand the concept of blurring, that is an awesome assumption to which the SE and I would just lean back and smile.

Assuming that you like the concept of blurring roles in your organization please keep in mind that the goal isn’t necessarily to turn  your AE’s into SE’s or your SE’s into AE’s.  The idea is to cross train each person just enough so that it is hard to tell where one person’s role ends and the other’s begins.

And, for those of you that are curious, I finished the year at 114 % of $2 million goal and formed a fantastic relationship with my SE.

Note Taking is for Wimps

Note Taking is for Wimps 

That’s right, you heard me (said like a school bully), taking notes during a sales engagement is for wimps.

Ok, ok, ok (said like Joe Pecci, in his role as Leo Getz, in Loaded Weapon).

I agree that note taking is important, it’s very important.  However (now that I have your attention), have you ever been caught in a situation, for whatever reason, where you were unable to take notes?  If so, did you have a backup plan?  You know, a proven methodology that empowered you to engage your client in a meaningful manner?  One that made for a quality use of their time and enabled to you to remember most all the details at the conclusion of the meeting?  If not, then read on.

You see, a few years ago, I found myself in this exact situation.  I had an initial meeting with the CIO of a very important prospect.  This was a big opportunity and after months of scheduling conflicts, we were finally able to meet face to face.  Now that we were in the same room together, I had a problem – a big problem (or so I thought).  After a lot of preparation for this meeting, I suddenly realized that I did not have my briefcase which contained my notebook (with notes), business cards, pens, literature, etc.  I almost felt naked without the security of my stuff – and it wasn’t my fault!

I had arrived at the client’s location on “Lombardi time” (that is Vince Lombardi’s practice of showing up to all team related events 15 minutes early).  I was greeted by one of the tech guys who explained that the CIO would be running a little late and asked if I would like a tour of the facility – I said “sure.”

We started at his office where I left my overcoat and briefcase.  After a quick tour, I suddenly found myself in a room, on another part of the campus, without my stuff.  The CIO happened to be working on another, unrelated project, in this room, and asked if we could meet there (she only had an hour to meet) and I of course said yes.

Rather than panicking, I took a deep breath, smiled, and started a flawless execution of the ORDER sales methodology that I had learned from Mahan Khalsa.  As I progressed through the process, I noticed that the client noticed that I was not taking any notes.  One question led to yet another question and the next thing that we knew, it was two hours later which was ok according to the CIO – she said that it was a good use of her time.

Now, I don’t recommend conducting a meeting without taking notes – you could miss some very important information.  However, I found that due to the situation, I was able to laser focus on my questions and the client’s answers in a way that I had never experienced before.

You see, the ORDER methodology helps to structure a conversation in a way that is logical, natural, and fluid.  More importantly, the methodology helps to organize the information, in your mind, in a way that is easy to remember and summarize, even without the aid of notes.

After two hours of an initial needs analysis, I was able to give a thorough recap of the meeting which blew the client away.  I watched as the expression on her face changed from a “let’s see how much this guy can recall without any notes” to a stated response of “That’s the best damn recap I have ever heard and I noticed that you didn’t take any notes!”

Needless to say, immediately after the meeting (and once I had my notebook in hand) I ran over to the nearest Starbucks, consumed some caffeine, and started jotting down my notes so that I could share the information with my team.

For clarification, ORDER is an acronym which stands for:

• Opportunity
• Resources
• Decision Making Steps
• Exact Solution
• Results

Now, I could write a dissertation with regards to the sales process – it is a subject with which I have a lot of passion and that’s because it works.  However, sense this is a blog post I will give a very brief overview of some of the core ideas.

When engaging a client for the first time, there are a few key concepts and questions that you need to address as follows:

1. You cannot help someone succeed unless they have a stated problem that they are trying to solve or future desired result that they are trying to attain.  These problems or results are uncovered during the Opportunity section of the ORDER methodology.  This is where you should be spending most of your time during an initial engagement.  The details of the Opportunity section of the ORDER Methodology will have to wait for another blog post.
2. You cannot help someone succeed unless they have the Resources dedicated to the resolution of the problem in terms of time, people, and money.  How quickly do they want to implement a solution? Is it too quick, too distant in the future, or within a reasonable timeframe?  Do they have the people and executive support to ensure success of this project? Have they established a budget and if so, is it within a range that is acceptable to your organization?
3. You cannot help someone succeed unless they are capable of making a decision.  What are the decision steps?  What is being decided in each step?  When will the decision be made in each step? Who is involved in each step? How will each decision maker, involved within each step, make their decision?

It is only after you have completed the ORD part of the ORDER process that you will have earned the right to present your potential solution to a client (assuming of course that you feel that it would be in your company’s best interest to continue the engagement).

The really cool part of this process is that it is fluid.  It allows you and the client to start anywhere and go everywhere with a natural progression of questions.  If they want to talk about resources, then discuss resources.  If they want to discuss their problems, then allow them to talk about their problems.

Because of this process, I was able to recap this particular client’s current problems and the future desired results, their resources, and everything associated with the decision steps all without the aid of notes.  At the end of the engagement, I no longer felt naked and walked out feeling as if I had experienced something truly magical – a process that actually worked in the best interest of both me and the client.

To learn more about the ORDER sales methodology visit Ninety Five 5 (www.nf5.com).  This is a company started by Mahan Khalsa and his partner Randy Illig and has fantastic content for you and your organization.

It Takes Years and Years of Experience to be Successful in Sales. Really?

I’ve been in sales for years and to a certain extent, I agree.  That is if you are schooled in any one of the traditional sales methodologies where you learn how to manipulate clients into buying whatever it is that you have to offer.  It takes years because you have to learn all the tricks and techniques in how to control a sales engagement, overcome objections, and the ABC’s (to Always Be Closing).

In my first real job out of school, I had a traditional sales manager that taught us things like:

• How to ask closed ended questions that kept the clients saying yes.
• How to ask open ended questions in a way that lead the client to a natural conclusion that our solution was the best fit for their needs.
• The use of alternative questions to trick clients into a decision without them realizing they even made a decision – Would you like us to ship product out today or tomorrow?
• How to sell the features and benefits of our products and services.
• And the value of a good elevator pitch.

Inevitably, we made sales and got to ring the bell (said solemnly).  That’s right, a 12” bell hung outside the sales manager’s office and very time a sale was made, the bell was rung. Every so often, my sales manager would run around the office checking to see if our arms were broken and whether or not we were able to “Ring the Bell!” as if that would somehow help us make more sales.

The focus was sales rather than taking care of new clients that were just landed.  When problems popped up (and they popped up often) we would herd the complaints to our understaffed help desk.  And when it came time for references, there were few to be found and the ones we had were sick and tired of being references.

I remember feeling really slimly using these sales tactics and arguing with my manager because I was going to bat for my clients and he said that I needed to forget about them and get back to making more sales so that I could ring the bell.

Understanding the above, I can see how it would take several years to become a skilled sales rep.   The reason is that you have to develop really thick skin in order to handle the objections and numb yourself to your client’s wants and needs.  More importantly though, I began to see very clearly how sales people have gotten such a bad reputation over the years.

Through some great fortune, I had the privilege of being trained in a new sales methodology working for the Franklin Covey Company called “Helping Clients Succeed.”  We were taught that the most selfish thing that we could do was to focus 100% of our efforts on helping clients in a way that they felt good about it.  If we did it and did it right, then, as a byproduct, we would easily make our numbers and we did.

Since leaving Covey, I have had the opportunity to use this sales methodology, with tremendous success, in other industries.  And here’s the really cool part about it, Helping Clients Succeed is a logical process that can be learned by pretty much anyone.  With proper training, and repetition and reinforcement, even your average Jack and Jill can become a skilled Sales Consultant within a couple of months.

A reason that this sales methodology is so successful is that one of the core beliefs taught is that “Intention counts more than technique (and technique is still important).”  If your intention is to truly help your clients succeed, in a way that they feel good about it, then there is no need to learn any additional tricks and tactics.  Simply get real – either it makes sense and you continue to move forward or it does not make sense and you agree to part ways.

I recently learned that the Franklin Covey sales methodology was so successful that a new spin off company was formed called Ninety Five 5 (www.NF5.com).  If you have not heard of the company check it out. They have fantastic content on their website and have trained the sales teams of some of the world’s most respected organizations.

Good luck and happy selling.

Elevator Pitches are a Waste of Time

Early in my sales career, I had a boss that was all about the elevator pitch.  We spent an entire day, with an elevator pitch consultant, learning how to write and present the perfect pitch.  We then spent a week working on our own unique messages with the goal of winning a prize that was to be given to the person that came up with the best written and best delivered 15-30 second sound bite.

Being young and naïve, I jumped into the excitement with full vigor and confidence as if I alone could craft something so magical, so overwhelmingly awesome that people would stop in their tracks and say “Wow! What a great pitch, I want to buy what you are selling!”

After a week of concerted effort, my colleagues and I all came up with what we thought were the perfect pitches.  We practiced with passion and zeal to win the magical prize – a round of beers at the local watering hole.   Late Friday afternoon, about 20 of us were called into a conference room and asked to give our pitch which was to be judged by our peers.  I did not win much to my chagrin.  Nonetheless, we all adjourned to the pub and celebrated the victor.

Then it was time to use our newly minted elevator pitch that we all agreed was the most perfect of the group.  On the phones we went smiling and dialing with the new perfect combination of words that was guaranteed to drive more sales and make us all a lot of money.  Needless to say, the new pitch did not produce the results that we all naively believed would magically manifest themselves based on our well honed oratory skills (yes, even the winner of the contest failed to achieve rock star status).

Then there was the trade show.  Certainly it would work there – right?  After all, the elevator pitch was clearly designed to work in a face to face encounter.  When meeting someone in person, you have the ability to deliver it with a dashing smile and a twinkle in your eye – atta’boy (said with obvious sarcasm).  Sadly, it didn’t work there either.

The reality?  Elevator pitches don’t work.  The key is that regardless of the situation, you have to be relevant.

Let’s use a tradeshow for example.  If you have been in sales for any length of time, I’m confident that you have been to some sort of an event representing your company.  The people that stop by your booth can be grouped into one of the following categories:

1. The Schwag Baggers – these are the people that are roaming the conference to get the latest, greatest, coolest gadgets for themselves and their kids.
2. The Roaming Gnomes – these are the people with a blank look in their eyes.  Probably nursing a serious hangover from the previous night’s activities and you happen to lock eyes and coerce them into your booth.
3. Clients – people that know and (hopefully) like what you have to offer.
4. Potential Clients – people that have a potential need for your products and services, they just don’t know it yet.

Here’s the rub and I know this first hand (both as a vendor and as an attendee) – as you walk through a conference like this, everyone has an elevator pitch and it goes something like this – We help our clients to increase this, decrease that, achieve, overcome, solve, help, etc.  These pitches are given with confidence, with little variation, to pretty much everyone that happens to drop into any given booth.

The end result is that 99% of the time the people that you so expertly deliver your elevator pitch to look like deer staring into the headlights of an oncoming car.  They patiently wait for you to finish and then ask for some literature or one of your cool gadgets.  If you happen to have booze or a really cool giveaway, they will endure a little longer to get their prize and then politely smile, thank you for your time, and walk way.

I have quoted the following maxim before and will most likely use it again “People don’t care how much you know unless they know how much they care.”  And how do people know that you care?  Because you have listened to them and can articulate their thoughts, needs, goals, problems, and/or dreams in their words.

Only when you understand someone can you purposefully be relevant to their needs.

At a trade show, for example, rather than working on the perfect elevator pitch, work on identifying a few questions that can quickly determine if what you have to offer is relevant to your audience’s needs.  If not, give them the pink pig squeeze toy for their kid or a cold beer, smile, and send them on their way.

As far as using an elevator pitch on the phone – forget it, you are wasting your time.  Per my last blog “I Love Cold Calling – Not!” I discussed the idea of turning cold calls into warm calls.  If you have a warm lead into an account, there is no need for an elevator pitch.

Lastly, if you happen to be on an elevator, just smile and be yourself.  You will have better odds and come across as being more genuine by having an accidental conversation of relevancy versus a rehearsed combination of words, passionately delivered, to a person that accidently stumbled onto the elevator that you happen to be riding.

Change Happens – Roll with It or Get Left Behind

I Ching Saying: To be successful, do not be rigid and immobile in your thinking, but always keep abreast of the time and change with it.

As the saying goes “change happens.”  Well, there are other, more colorful ways of making this statement, but, “it  happens” (said like Forrest Gump) whether you like it or not.  Some obvious examples of this is that our economy is changing,  technology is changing, your waist line is changing, and there isn’t much that you can do about it.  Or is there?

For those of you that are inflexible with regards to these changes, your inflexibility will inevitability invite disaster.  It is therefore essential, in order to succeed though whatever changes that are happening in your life, that you become aware of the changing conditions, remain flexible, and roll with it.

Now, I’m not saying that you need to compromise your integrity or alter your core values.  Simply become aware of your surrounding conditions and improvise, overcome, and adapt.   When you have the courage to face the brutal facts of your current situation and the awareness to realize that you cannot stop change, then you can develop the strength and courage to remain flexible, roll with the situation, and use these changes to your advantage.

Per an earlier I-Ching blog entitled “In the hands of a great master, all material is productive” I discuss how wise and noble individuals are able to use pretty much everything to their advantage – even change.  Simply put, it’s in the way that you view things – your paradigms.  And who knows, your flexibility, balanced with your core values, can and will help you deal with change and you may even have the ability to do something about the inevitable changes that are happening around you – including your waste line.

I Love Cold Calling – Not!

Who likes cold calling?  For those of you that said yes – really?!?! (Said rather obnoxiously).

I think that a better question is: Are you are still making cold calls and if so why?!?!  Seriously (said as if you were mental).

Cold calling = doing the same thing over and over and expecting what – different results?  If you have been in sales for any length of time, I’m sure that you have read more than your fair share of sales book and you have had your share of sales managers.  I’m also 99% confident that you are more than familiar with the following quotes or ideas:

1. Every “no” gets you that much closer to a “yes!” (Said with a fist pump).
2. If you are not getting the results that you want, make more calls. (Said with an atta’boy, a charming smile, and a pat on the back).
3. You are not meeting your metrics.  You need to make more calls.  (Said with a stern look, a wagging of the finger, and, eventually, followed up with a disciplinary notice).
4. Tomorrow is dialing derby day!  We’ll have pizza, cake, and ice cream!  (Said with an infectious enthusiasm as if that will magically alter the results).

Typically, the formula for success in a traditional sales model is:

• Make 1000 calls to get…100 people on the phone.
• Out the 100 people you talk to, 90 of them tell you some version of “you are worse than scum, because scum floats.”  (Yes, I got that one once – nice).
• 10 will actually talk to you.  Great! Well other than the fact that 8 or 9 of them are a complete waste of time, fill you (and your pipeline) with a false sense of hope, and prevent you from making more cold calls.
• Finally, if you are lucky enough, you may get one or two sales – oh happy, happy, joy, joy (sung like Ren and Stimpy).  Now, it’s time to celebrate – right?  Well maybe for a moment.  Then, you have to make more sales calls to keep your pipeline full.  After all, your boss will say some version of “What have you done for me lately?”

There has got to be a better way.  And there is.  The guys at Ninety Five 5 (www.NF5.com) have challenged and defeated the above myth with a new formula for sales success:

6 calls = 2-3 sales

How is this possible you ask?  You are currently making 1,000’s of calls only to get a couple of sales every month or quarter and now you are hearing that you can get the same, or, even better results on fewer calls?

Well, “Let’s Get Real or Let’s not Play: Transforming the Buyer Seller Relationship” is a book written by Mahan Khalsa and Randy Illig.  In this book, they lay the foundations for a new approach on how to increase your probability of finding better qualified opportunities – turning “cold calls” into “warm calls,” and closing more deals.

In short, rather than wasting your time smiling and dialing (you know what I’m talking about as you take another deep breath, gaze longingly into the mirror hanging up in your cubical, and make just one more phone call before the end of the day), spend your time researching companies that would be a good fit for your product or service.

A very basic overview of the Ninety Five 5 formula looks something like this:

• Start with 100 companies that could be a good fit for your products and services.
• Using your intellectual skills, start narrowing that list down to about 10 organizations.
• Then research these companies, in depth, and determine which five or six would receive the most benefit from what you have to offer.  In other words, what problems can you help them solve or what results can you help them attain?
• Lastly (and this is the key step after the above) tap into your network and see if you can find someone that can introduce you to a key stakeholder in that organization.  Statistics show that a cold call is successful, at best, only 10% of the time.  When using a referral from outside the company, your odds increase to 44% and when you use an internal referral source, your odds increase to 84%.

The last decade has given us fantastic new tools to help us towards this end.   LinkedIn, Facebook, Twitter, and Google are all fantastic sources to use for networking and research.  Tap into these information rich resources, use them, take advantage of them and you will be surprised at the results.

That’s right, by focusing on the right accounts, gathering the right information, preparing in the right way, and using the right referral resources will increase your odds of turning a cold call into a warm call from a couple of percentage points up to 84%.  If you are a gambling person, these are the type of odds that you take to Vegas – yeah baby!

Please note: the Ninety Five 5 methodology is more than just a sales approach to turning cold calls into warm leads.  It is one of the most comprehensive sales methodologies on the market and is being used at some of the world’s most reputable organizations like Microsoft, Dell, Franklin Covey, and other world class organizations.

Whether you are in sales management, a seasoned sales veteran or just getting into the game, I would strongly encourage you to at least check out the Ninety Five 5 methodology.  I have personally read numerous sales books over the years and have become a huge fan of Mahan and Randy’s approach.  Most sales methodologies are geared toward doing something to someone whereas their approach is centered on doing something with someone with the goal of “Helping Clients Succeed.”

For more information about Ninety Five 5, visit their website at: www.NF5.com.