Interpersonal Business

Vol. XXI

Dear Manager,

One of the most difficult aspects of management is objectively reviewing your sales regions. Without the luxury of day-to-day personal involvement in each territory you must rely on intuition, comparative sales analyses, and instinct. When is it time to reward a salesperson’s efforts by expanding their territory, and when has a territory matured to a level that it can no longer effectively be serviced by one associate?

These are emotionally charged issues for any organization. Only in very rare circumstances can you reduce a territory and continue to maintain an effective and productive relationship with the sales associate involved. Even less likely to occur is a scenario in which a sales associate will suggest to you that an additional associate be added to their region because they can no longer adequately service it alone.

I believe it is critical in the very early stages of your working relationships to establish fundamental expectations and responsibilities for your sales regions. The first fundamental is the assumption that all the manufacturers you represent anticipate, and have the right to expect, growth in your sales regions. All manufacturers develop their organizations with a single objective: growth. With the absence of growth, neither the manufacturer nor the sales force will survive.

The second fundamental is the assurance to all associates that as long as a territory continues to grow at a level consistent with the needs of your manufacturers and those of their peers, you would never consider a change or reduction in their territory. This is a very strong statement, and it should be. Why would an organization initiate change, risk valuable relationships, and send the signal to others that there is a penalty for strong performance?

Managers have the responsibility to meet not only the needs of individual territories, but also those of the whole. This third fundamental is the reality that allowing an individual territory to languish brings risk to those territories that have shown strong performance. How would an individual in a strong territory reflect on my performance as their manager if they were to lose a valued manufacturer because I failed to respond to the poor sales performance of another sales region? There are no limits to the number of other organizations more than willing to prove they could out-perform our organization.

Sooner or later, many territories will grow to the point where one individual can no longer effectively meet the needs of their customers and manufacturers. As much as we like to deny it, no matter how talented we are or how effective we are with our time, we must accept our human limitations. This in no way reflects on our ability; it is simply a reflection of our reality.

In 1980 I reached one of these moments of truth. While covering two states for a group of manufacturers, it became increasingly evident that I could no longer service my customers at a level consistent with their needs. There was simply not enough time, and I felt that I was always two to three weeks behind schedule. With my days “maxxed,” I was inclined to cut corners, serviced only the larger customers and forgot altogether about the option of new account development. Obviously, I couldn’t properly service the ones I had!

There are numerous options to assist your mature sales regions in continuing to grow and meet the needs of the organization. The key factor is to reward your associates a first, second and third (if necessary) opportunity to continue to grow their region. One of the first steps is to maximize the hours actually spent in customer presentations, as there are a very limited number of effective hours in front of our customers.

Suggest to your associates the option of hiring a part-time assistant to handle customer service, appointment scheduling, order follow up and problem solving. There are qualified individuals willing to work a few hours in an associate’s office, or out of their own home, in this capacity.

Not only can an assistant increase an associate’s productivity in the field, but also be a tremendous source of relief for a busy sales executive. Scheduling and problem solving are a very essential, yet time consuming aspect of a sales career. It is the time for account development and pure selling that truly impact our sales region’s ability to succeed.

Another approach to expanding the potential of a territory is by an individual, or group of associates combining their resources to hire a field sales assistant or service person. Many customers no longer require the hands-on, routine support provided by a sales professional. Why not use a well-informed sales or service assistant to establish consistent reorder cycles? A strong sales professional knows what their time is worth. With additional time in the field devoted to account development and selling (generating income!), a service assistant can effectively and efficiently meet a sales region’s needs for continued expansion.

It is critical to ask your associates to continue to meet the needs of their customers, manufacturers and the organization. No one enjoys the process of giving something up or taking something away; this should only be considered as a last resort. Give your associates options that will effectively meet your and their responsibilities. Expect them to step up to the challenge. If they choose not to, they must certainly be willing to accept the alternative.

The obvious time for management to make territorial adjustments is when a territory is vacant. At this time there are no emotional ties, or legitimate (or perceived) responsibilities to impact your decision. When a territory becomes vacant, it is your single opportunity to review its needs objectively. All options and innovations are now available to you.

Some questions to ask yourself may include:

• What are the current market conditions in this region?
• Was the previous associate adequately compensated for their performance?
• Is the current line presentation on an upward or downward curve?
• Will this territory effectively support more than one associate?
• Is there the option of adding additional opportunity to the region?

Look at the region based on the needs of today. The reasons behind a very good decision made years ago often no longer exist, while what may have been a very poor decision at the time continues to exist! What changes would you make if the slate were clean? This is a very valuable thought process, even though you may never have the opportunity to bring it to implementation.

Just as there are market conditions that warrant territory division, there are times that warrant existing territory expansion. Do each of your sales regions have the legitimate capacity to provide a reasonable income for their associates? If not, is this a direct reflection on the capacity of the sales region, or the capacity of the individual? Does the opportunity exist to both challenge and reward a sales individual’s efforts, strengthening their position into the future?

Formulate current and long-term objectives for each of your sales regions and discuss these plans with your associates. Establish an understanding of the region’s requirements prior to a time of concern when emotions are calm. Be creative. Offer options. Re-think your current territory divisions or line packages as market conditions change. Territory management and its many ensuing decisions “define” our organization and us, individually, as managers.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. XX

Dear Manager,

In a conversation with one of my associates a few years ago, she referenced a recent set of circumstances relating to her development of a new customer. With a new account lead in hand, she began the process of following it up. After her third effort to reach this client, she was successful in scheduling an appointment. The directions she was given seemed a bit odd; of particular concern was the customer’s suggestion to “… just follow the corn signs along the highway” to her place of business. After over an hour of driving, she saw the farmhouse surrounded by a pumpkin patch that was, without question, her destination.

With a roll of the eyes, and a personal admonition for not better qualifying this lead, she headed up the stairs to introduce herself. The woman who greeted her was a delightful individual, sincerely appreciative of a sales professional’s time. While her purchasing objectives looked to be modest, the associate realized that this was the client’s first step in fulfilling a life-long dream.

As you may have guessed, after a few hours of sharing industry basics and product knowledge, the associate returned to her car with little financial reward for her efforts. On the drive back (past the corn signs), she remembered her first difficult steps into the business world. She began to wonder what path her career might have taken had it not been for the help and support she received from others along the way.

She realized it had been a long time since she had allowed herself to do what one could easily assume to be a wasted and ineffective use of time. It was one of those times in life (we’ve all been there) when we are hit squarely in the face with our own reality. All good sales professionals are single-minded, driven, and accomplishment/reward oriented. On occasion, all good sales professionals are set back on their heels, in essence to achieve a much higher priority! It is so common in life for all of us to forget. This salesperson was pleased to remember, and to give back.

As managers, all of us have been in the position, either on the phone or in person, of being asked for a gift of our time. With all the demands on our day- to-day schedule, it can become increasingly difficult to take a few moments for meeting this very definite need. It always seems to come at the least opportune time.

FINDING THE “RIGHT” TIME

Let’s be honest with ourselves. Have we stepped up to our responsibility to exceed or even pay back the efforts of those who, over time, have greatly impacted our own success? All of us can remember those individuals who had the time, and made a critical difference in our lives. In most cases, their efforts are not fully realized until years after the fact, when we can then see their greatest qualities in our own efforts. Now is the time to consistently share a few moments of time with those outside the needs of our own objectives. This is who we are; this is why we are here.

It is generally around the approach the New Year that we all have a sense of accomplishment and renewal. There is a much greater awareness and appreciation towards those within our “circle of influence.” For me, it is a time to realize that perhaps I have not shown enough appreciation. Have I been effective in carrying the feelings of the season with me on an annual basis as well as I could have? I guess from a business and personal perspective, it is a time of self-accounting. How does the ledger look in the plus and minus columns?

As a Sales Professional, have 99% of your conversations with your manufacturers become related to immediate problem solving and meeting today’s objectives? In retrospect, how many of these issues, and your reactions to them, now seem much less important? How many of these issues can you even remember? How often do you take the time to call your manufacturers for the sole purpose of letting your appreciation be heard, and to acknowledge your understanding of the value of this relationship to you individually? Take the time to call and share a bit of your understanding of their needs. The commonly untapped resource of your field-level knowledge has a responsibility to be shared. The time is now.

As a Manufacturer, have you taken full advantage of the opportunity to acknowledge and reward the efforts of those individuals and organizations that are consistently dedicated to enhancing your products in the marketplace? Is it much more common to make the difficult calls of reprimand than it is to simply call in appreciation for a job well done? Have you established a call cycle to those organizations that have met your monthly, quarterly or even annual mutual objectives? Are you committed to the relentless search for a real understanding of your sales team, and how to consistently meet their needs through your own objectives? In all honesty, this is an ever changing and evolving commitment to success.

I think we could agree these are all well-founded objectives. They become increasingly difficult to implement in the fast-paced, catch-the-tiger’s-tail world in which we live. We have all watched another business executive at an airport: the walk, the intensity in their face, and the tone in their voice. Have you wondered what “forces” may have brought about this posture? Would others find these qualities in our demeanor?

IS IT POSSIBLE TO REMIND OURSELVES TO TAKE LIFE JUST A BIT SLOWER, TO TAKE OURSELVES, EACH OTHER AND OUR PROFESSIONS JUST A BIT LESS SERIOUSLY?

Several years ago, a story was related to me about an individual in my industry whom I had always greatly admired. Sheldon Babyatsky was the Vice President of Sales for one of our paper product manufacturers. During the holiday shipping season, Sheldon’s assistant rushed into his office, frantically announcing that a very large Christmas order for Macy’s Department Store had somehow been misplaced. It was now very late in the season, and his assistant was convinced that through this blunder they had lost the entire sale. Sheldon calmly turned to his assistant and responded, “We sell paper, not plasma. There’s nothing here that’s life and death.”

Our careers are important, and we would not have become successful if we did not approach each day with a sense of urgency to accomplish our given tasks. “Paper, not plasma.” Sheldon’s words echo through my mind on many occasions, and are worth remembering during our perceived moments of crisis. What may seem so imminently critical and all consuming is, in most cases, no longer significant in a few days. In a few months, it’s gone and forgotten. We must also remember that our success has come from the support of someone along the way who made time to spend with us. I would even guess that all of us can remember the individual or individuals by name. They must have helped to fulfill a dream.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. IXX

Dear Manager,

It is only human nature to look across the room and come to the conclusion that someone other than you is getting “the better end of the deal”. Perhaps it is simply a perception based on “the grass is always greener,” or an “it-must-be-easier-for-them-than-it-is-for-me” attitude. This is a typical mindset that, based often on emotion, all levels of management will confront.

To varying degrees, all sales and management staff feel a bit taken for granted at times. It is a difficult topic to address because it may seem to the parties involved that someone is buying and the other person is selling, regardless of the situation’s foundation. The fundamental issues here are experience and awareness. It is obviously very difficult to form any realistic conclusions relating to another’s business without having competed and survived in their arena! It is all too easy to form conclusions with only a surface amount of awareness of another’s reality. I would like to tour this above-mentioned “room”, examine the management styles present, and discuss the impact of each on their sales force.

AND IN THIS CORNER . . . . . .

I have worked with a diverse group of manufacturers over the years. Equally diverse has been their perceptions of, and the day-to-day attitudes toward, their sales agencies. In one corner of the “room” is a manufacturer with an almost detached approach to their sales agencies. They seem to have difficulty understanding and communicating in a positive and motivational way. It is not that they don’t want to, but never having been in “agency” shoes, they just can’t get a handle on what makes them tick.

At times they may have developed policies they believed focused on the needs of their sales agencies, only to find out after the fact that, once again, they missed their mark. Often this type of manufacturer is gifted in creative aspects and has an uncanny ability to develop innovative products having strong consumer demand. It can be an attitude of, “We have blessed you with our creations, so how can you possibly be critical of our sales policies? They seem so very fair to us”.

This type of manufacturer will often throw up their hands in frustration and discouragement, concluding that they cannot please anyone.

HOW BAD DO YOU WANT ME?

In another corner of our “room” is a manufacturer who has gained a reasonable level of sales representation. Similar to their counterparts referenced above, they may have an over-inflated perception of themselves or their products in the marketplace. Whether due to current or prior success, they have been perceived as a leader in their field, and have been courted by those who want to share in and enhance their success. With this level of obvious interest, they have many options available to them. This manufacturer can easily feel they can write their own rules and define their own terms for the representation of their products, regardless of industry standards.

Complacency breeds contempt, and for these manufacturers their approach to sales agencies is one of “a necessary means to an end”, yet one with little or no foundation of respect. Policies are developed to curb the obvious malaise in the field, and to protect against being taken advantage of by the weak links and slackers.

Their relationship with sales agencies is often competitive and adversarial in nature. Everyone is looking over their shoulder, just waiting for the next confrontation to arise. Morale is low, and no one can accept anything at face value. Conversations seem to become more scripted in nature; one party knows what it is expected to ask for, the other knows exactly how it is expected to respond. Very few individuals caught in this scenario are willing to risk being totally forthcoming with the invaluable field information that is essential for personal and collective growth.

AND OVER HERE . . . . . . .

In the third corner of our “room” we find an attitude of frustration and bewilderment. These manufacturers have an absolute commitment to the mutual success of their organization and their sales staff. Often because of the nature of their product, or a history of poor market performance, they have struggled to maintain a consistent and reliable relationship with their sales organizations.

This manufacturer begins a new relationship based on trust, with what seems to be a sincere commitment from all parties to meet or exceed a reasonable level of professional performance. As the weeks and months pass by, and for varied reasons, personal conversations become fewer and more surface in nature. Later than sooner, the marketing relationship ends in disappointment. This manufacturer feels burned.

No one enters a new relationship expecting to fail. It does, can, and will occur, even in the best of circumstances, and with individuals who exhibit the absolute best of intentions. Perhaps the sales agency has been less than honest with themselves and their manufacturer regarding changes in their ability to properly, effectively and ethically continue the relationship. The manufacturer, in order to avoid seeking yet another sales agency, may have hesitated to voice concerns regarding declining sales or inadequate market coverage. What was once an obvious and sincere commitment to success has become a downward spiral.

AND IN THIS CROWDED CORNER . . . . . .

In the final corner of our “room” is a manufacturer that stands out among its peers in the eyes of its sales agencies. This manufacturer is first concerned about not only the profitability of their company, but meeting the day-to-day, complex needs of their sales staff. They understand that to maximize their performance in the field they must first perform at a level of accountability consistent with their own expectations in the field. As managers, they realize that success comes with the performance of all parties. How can they possibly hold others accountable if they have not performed with marketable products, timely compensation, and a sense of empathy toward the demands of their sales force?

The best of these manufacturers have enjoyed a high level of profitability from their products and still maintain a strong sense of awareness towards the value of their sales agencies in the process. When a benefit of the doubt is needed, it is provided for. When a reasonable request is made, it is reviewed objectively because a sense of confidence ensures its acceptance at face value.

Conversations can be very candid, as there is never a sense of intimidation or ridicule, only one of encouragement, understanding and respect. These manufacturers embrace the value of a fixed cost based on performance, and insist on maintaining a consistent, competitive form of compensation as means to insure the continued growth, development and health of their sales organizations. Do they give away the farm? No. Are they accepting of, and motivated by, the individuals as well as the sales aspect of their company? Yes!

We have now toured the room and its management styles. Each is driven by success, and each represents a very different approach to a very similar need. Have you placed yourself in the center of the room? As a representative of multiple manufacturers you may have realized that, in most all instances, you will need to work with, adjust to, and maximize your efforts with these varied forms of management simultaneously. When one has a very clear view and a very wide perspective of all forms of management (on a daily basis), it is easy to understand how an individual can develop a much stronger sense of loyalty to those who best support and are committed to understanding their needs.

If given the opportunity, I am sure the manufacturers in each corner of our “room” could extol the virtues of its management style. Each should now step into the center and examine this, or a similar set of circumstances. When it was all on the line they, too, would rally behind those manufacturers who demonstrate the value of a very strong manufacturer and agency working relationship.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Vol. XVIII

Dear Manager,

There is a very unique position in American business today: the relationship between manufacturers and their use of manufacturer’s agents. The development and maturity of this relationship is worth our review.

Where else in American business can you find a relationship of total independence and ultimate dependence? Only with the relationship between manufacturers and independent sales agencies. Originally, this relationship was developed to assist smaller and independent manufacturers with the sales and marketing aspects of their products. It provided a fixed cost of sales, and direct compensation in the form of commissions based solely on the performance of the individual. How very pure.

As manufacturers grew, so did many of the sales agencies. There was a time a few years ago in my industry when a number of manufacturers tested the waters of a direct sales force. For some this was a good decision. For many others, their sales staff and field management costs forced them to return to a fixed cost system they could once again control.

The single greatest value of a commissioned system is its ability to fully compensate its sales staff based on pure performance. From a management perspective it is survival of the fittest. Over time, the below average performer cannot survive, the above average performer will prosper, and the elite will set the standards of performance for the whole. At each level they will be compensated in a manner consistent with their own ability to perform.

IMPACT FOR MANAGEMENT

When properly selected, management using independent commissioned sales representation has the distinct advantage of working with a much higher caliber of field sales personnel. Only the confident, capable and experienced sales professional will accept a position with compensation based solely on their own abilities and performance. Your ability to rely on the strengths and management ability of your independent sales agency can reduce the need for expensive field-level sales management.

In recent years, Regional Managers have become more commonly used in tandem with manufacturer’s agents. Its obvious intent is to raise visibility and generate support in the field. This decision should be reviewed on a case-by-case basis. Often, the quality of the individual involved cannot realistically compete with those they are expected to manage. In essence, they may not have a clue as to how to motivate, challenge and compliment the independent nature of the sales agency. The very best Regional Managers are those with field sales experience. They have been in the trenches, seen the obstacles and fought the daily battles. With out this, their value does not exist.

While manufacturers are certainly entitled to hold a high standard for their sales agencies, rarely is this fully taken advantage of. If you have hired a sales team to represent you, and you believe they are incapable of serving your best interests, find a sales agency with the management team that can! Do not continue to layer on levels of field sales management. This is in direct conflict with the very premise and value of using independent sales agencies. There can be great benefit in having a field sales management team. This decision should be dependent on your ability to hire and afford capable, energetic and street-wise professionals. When the time is right, your ability to properly financially support this commitment will become obvious.

Until then, consider investing in a much more cost effective form of sales support, located within your current sales service departments. Provide a qualified and dedicated individual to assist in the needs, and develop a more personal relationship, with a limited number of your organizations. This Super Assistant should become familiar with three to seven of your sales agencies and the varied dynamics and personalities of each. Once trained, they need and deserve the latitude to assist, negotiate and, at times, even bail out associates in the difficult times often found out in the field. Yes, this quality is well beyond a minimum wage individual, yet its effective cost is substantially less than the actual costs of support towards a field sales manager. What most salesmen are looking for is someone who cares, someone who is readily available, and someone who can step up to a decision. Most manufacturers would be amazed by how seldom this is available.

IMPACT FOR SALES AGENCIES

The greatest advantage for sales agencies is one of flexibility, diversity, and the ability to react to the needs of your region and marketplace. With no single manufacturer “owning” your time there is generally an understanding of the value in each individual. Once again respect is always an earned privilege. Those who find it will enjoy a “work with” rather than “work for” attitude.

Sales agencies have ultimate control over whom they choose to work with. If a manufacturer cannot meet the needs of your sales agency, you have every right to lend your professional support to one that does. Just as manufacturers have the responsibility to meet the needs of their company’s objectives, so too do sales agencies. I often hear of an agency’s complaint regarding policies established by their manufacturers. No one has forced this relationship upon the agency. Either make the very best of the situation, improve it, or make preparations to move on. These are the options available.

THE NEED FOR CHANGE

Early in my agency’s growth (it was an agency of one!), I developed a primary relationship with a manufacturer at the very beginning of their entry into the marketplace. They soon enjoyed simply explosive growth that became almost legendary in my industry. Along with this growth came perhaps the most difficult, demanding, and self serving sales manager I had ever, until then, “worked with”. In fact, this individual may still be at the top of my list.

This individual thought nothing of calling at any hour of the evening or early morning to motivate the troops. With the company’s phenomenal growth, forecasting became very difficult. Despite the successful efforts made, it was never enough. Aggressive forecasts were developed and modified three and four times a year, regardless of performance. Have you ever heard of a moving target? As you may have guessed, this person was making me miserable. I obviously needed to move on. There was only one catch: I needed the income to support my family.

Out of pure frustration I certainly wanted to, shall we say, share my very specific opinion of their organization. Yet it was this very relationship that taught me to never come to decisions from a position of weakness. Always come to decisions from a position of strength. I dedicated myself to replacing this income.

Within a year, and while continuing to meet their expectations, I had developed relationships with other manufacturers I wished to work more closely with, and had been able to replace the income. It was indeed a pleasure to notify this manufacturer that I would no longer be representing their product. The response was one of disbelief. No one had ever dropped their line. They misjudged their own position of strength.

I am often surprised by the attitudes of some manufacturers relating to their self- perceived position with their independent sales organizations. While their intent may be honorable, they have bought into the old school and assumed an attitude of intimidation with their sales agencies. What they fail to realize is that in working with independent agents they are competing for attention with all the other manufacturers in the agent’s “bag”. When the representative’s car trunk lid goes up, whose samples are they going to grab? It is only human nature to be enthusiastic and supportive of those manufacturers by whom the agent feels supported.

Agencies show acceptance of a style of management by their continued relationship with a manufacturer. Agencies that have no need for this type of relationship will invariably move on to more productive ground, and will be replaced with-hand picked agencies that thrive in this arena. And you know for a few, it’s hard to find a good sales agency any more!

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM